Baronsmead VCT 3 plc
Interim Management Statement
For the three month period from 1 July 2013 to 30 September 2013.
Headlines
* 4.5p second interim dividend declared, payable on 20 December to
shareholders on the register on 6 December 2013
* +5.1 per cent increase in Net Asset Value per share
* £1.1 million invested in two unquoted and two quoted investments
Performance Summary
Capital return As at As at Movement
30 Sep 2013 30 Jun 2013
Total net assets £74.61m £73.00m
Net asset value per share 112.99p 107.55p* 5.1%
Share price 105.50p 105.88p (0.4%)
Discount to NAV (6.6%) (1.5%)
Total Return 3 month (%) 1 year (%) 5 years (%) 10 years (%)
Net asset value total return 4.9 13.0 51.3 112.8
(1)
* Adjusted for 3p interim dividend for comparative purposes paid on 20
September 2013.
NAV at 30 June 2013 excluding effect of dividend was 110.55p per share.
Key: (1) NAV total return = NAV + reinvested dividends; Source: ISIS EP LLP
These total returns are stated before the inclusion of VCT tax reliefs which
are designed to mitigate the higher risks and costs associated with investing
in smaller companies and the constraints of the VCT legislation. The front end
income tax reliefs available at the time of subscription were 20 per cent prior
to the end of the 2003/04 tax year, 40 per cent in the 2004/05 and 2005/06 tax
years and 30 per cent since then, so any adjusted performance measure including
this relief will vary depending on the date of subscription. There is the
additional benefit of receiving VCT dividends tax free.
Investment Performance
In the three months to 30 September 2013, Baronsmead VCT 3's net asset value
per share increased by 5.1 per cent. During the quarter, the unquoted portfolio
valuation increased by 0.4 per cent and the AIM portfolio increased by 11.8 per
cent.
The Company's net assets as at 30 September 2013 were £74.61 million. This
figure takes account of the valuation of the Company's investments as at 30
September 2013 and is stated after the payment of the interim dividend of 3.0p
per share paid on 20 September 2013 (£1.98 million).
Top Ten Investment Holdings
Position at Position at Company Percentage
30 Sep 2013 30 Jun 2013 of NAV as
at
30 Sep 2013
1 1 CableCom Networking Holdings Limited 7.3
2 2 Nexus Vehicle Holdings Limited 6.4
3 3 CSC (World) Limited 3.8
4 4 Kafevend Holdings Limited 3.4
5 6 IDOX plc 3.3
6 5 Crew Clothing Holdings Limited 2.7
7 8 Netcall plc 2.6
8 9 Inspired Thinking Group Limited 2.5
9 12 Vectura Group plc 2.4
10 10 Fisher Outdoor Leisure Holdings 2.3
Limited
Total 36.7
Analysis of Total Assets
Percentage of total Percentage of total
assets assets
30 Sep 2013 30 Jun 2013
Unquoted investments 49 50
AIM, listed & collective 41 37
investments vehicle
Listed interest bearing 4 7
securities
Net current assets 6 6
Total cash portfolio 10 13
Total Assets 100 100
Analysis of Investment Portfolio by Sector
(excluding cash and interest bearing securities)
Percentage of total Percentage of total
investments at investments at
30 Sep 2013 30 Jun 2013
Business Services 35 35
Consumer Markets 18 18
Financial Services 2 2
Healthcare & Education 13 13
Technology, Media & 32 32
Telecommunications
Total 100 100
Investment Activity
During the three months to 30 September 2013, Baronsmead VCT 3 invested a total
of approximately £1.13 million in one new and three follow on investments as
set out in the table below:
Investments made
Company Date Cost (£'000)
EG Solutions plc Jul 2013 78
Key Travel Limited Jul 2013 954
Paragon Entertainment Limited Jul 2013 45
Valldata Group Limited Aug 2013 54
Total investments 1,131
During the quarter, a new unquoted investment of £0.95 million was made in Key
Travel, a travel management company focused on the not-for profit sector.
Follow-on investments were made in one unquoted company, Valldata Group
Limited, and two quoted companies, EG Solutions plc and Paragon Entertainment
Limited, totalling £0.2 million.
After the end of the period, Baronsmead VCT 3 invested £1.0 million in an
unquoted investment, Carousel Logistics Limited, a provider of bespoke
logistics and supply chain solutions.
Realisations
During the period under review Baronsmead VCT 3 received a total of £0.71
million in proceeds as set out in the table below:
Company Date Cost Proceeds Multiple
(£'000) (£'000) (X)
Consumer Investment Jul 2013 45 45 1.0
Partners Limited
Valldata Group Limited Aug 2013 450 540 1.2
Active Risk Group plc Sept 2013 159 126 0.8
Total realisations 654 711
Since the period end, there has been a further significant realisation.
Cablecom has been in the portfolio since 2007 and manages internet services to
high density accommodation such as student accommodation. The business has
been sold via a secondary management buy-out and the realisation has delivered
4.8 times the original cost of investment which is an excellent result. In
addition, a £5m investment (£1.25k for BVCT 3) has been negotiated in the new
transaction on the same terms as the lead private equity buyer as ISIS believes
there is an opportunity for further growth.
Dividend Declaration
Following recent profitable sales of investments, the Directors have declared a
second interim dividend of 4.5p per share in lieu of a final dividend for the
year to 31 December 2013. This dividend will be paid on 20 December to
shareholders on the register as of 6 December 2013. Dividends totalling 7.5p
per share for the year to 31 December 2013 have either been paid or declared.
Net Asset Value as at 31 October 2013
The net asset value as at 31 October 2013 was 115.52p per share. This is stated
before taking account of the second interim dividend of 4.5p per share payable
on 20 December 2013.
Fundraising Update
An offer for subscription is currently expected to be launched in early 2014 to
raise gross proceeds of up to £10 million. The securities note, which will
contain the subscription form and the full terms and conditions, will be sent
to existing shareholders as soon as it is published.
Events after the period end
Other than the events described above, the Board is not aware of any
significant events or transactions which have occurred between 1 July 2013 and
the date of publication of this statement which would have a material impact on
the financial position of the Company.
Investment objective
Baronsmead VCT 3 plc is a tax efficient listed company which aims to achieve
long-term investment returns for private investors.
Further information
Further information regarding the Company, including net asset values published
since the end of the period and quarterly factsheets, can be found at the
Company's website
www.baronsmeadvct3.co.uk
Contact
For further information please contact:
The Company's Investment Manager, ISIS EP LLP as follows:
Email: baronsmeadvcts@isisep.com
Telephone: 020 7506 5717
Facsimile: 020 7506 5718
Post: 100 Wood Street, London, EC2V 7AN
Neither the contents of the Company's website nor the contents of any website
accessible from hyperlinks on this announcement (or any other website) is
incorporated into, or forms part of, this announcement.
*A Private Investor is a recipient of the information who meets all of the conditions set out below, the recipient:
Obtains access to the information in a personal capacity;
Is not required to be regulated or supervised by a body concerned with the regulation or supervision of investment or financial services;
Is not currently registered or qualified as a professional securities trader or investment adviser with any national or state exchange, regulatory authority, professional association or recognised professional body;
Does not currently act in any capacity as an investment adviser, whether or not they have at some time been qualified to do so;
Uses the information solely in relation to the management of their personal funds and not as a trader to the public or for the investment of corporate funds;
Does not distribute, republish or otherwise provide any information or derived works to any third party in any manner or use or process information or derived works for any commercial purposes.
Please note, this site uses cookies. Some of the cookies are essential for parts of the site to operate and have already been set. You may delete and block all cookies from this site, but if you do, parts of the site may not work. To find out more about the cookies used on Investegate and how you can manage them, see our Privacy and Cookie Policy
To continue using Investegate, please confirm that you are a private investor as well as agreeing to our Privacy and Cookie Policy & Terms.