Baronsmead VCT 3 plc
Interim Management Statement
For the three month period from 1 January 2014 to 31 March 2014.
Headlines
+4.5% Increase in Net Asset Value per share before payment
of interim dividend
8.0p Interim dividend paid on 7 March 2014
£9.7m Raised net of costs in January / February 2014
Performance Summary
As at As at
Capital return 31 March 2014 31 Dec 2013 Movement
Total net assets £82.82m £74.88m
Net asset value per share 118.53p* 113.40p 4.5%
Share price 103.75p 106.25p (2.4%)
Discount to NAV (6.1%) (6.3%)
* Adjusted for 8.0p (£5.3m) interim dividend paid on 7 March 2014 for
comparative purposes. Actual NAV at 31 March 2014 including the interim dividend paid
7 March 2014 was 110.53p per share.
Total Return 3 month (%) 1 year (%) 5 years (%) 10 years (%)
Net asset value total return (1) 4.63 13.21 70.13 120.51
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%
prior to the end of the 2003/04 tax year, 40% in the 2004/05 and 2005/06 tax
years and 30% 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
The net asset value of the company increased by 4.5% during the quarter
excluding the interim dividend paid during the period. The unquoted portfolio
valuation stayed broadly flat in the quarter and the AIM portfolio increased by
7.7%.
The Company's net assets as at 31 March 2014 were £82.8 million. This figure
takes account of the valuation of the Company's investments as at 31 March 2014
and takes account of the payment of the interim dividend of 8.0p per share paid
on 7 March 2014 (£5.3 million) and the £9.7m (net of costs) raised during the
period under review.
Top Ten Investment Holdings
Percentage
of NAV
Position at Position at as at
31 Mar 2014 31 Dec 2013 Company 31 Mar 2014
1 1 Nexus Vehicle Holdings Limited 5.7
2 2 Netcall plc 3.4
3 4 Vectura Group plc 3.0
4 5 IDOX plc 3.0
5 3 Crew Clothing Holdings Limited 2.9
6 7 Valldata Group Limited 2.2
7 9 ICCM 2.1
8 10 Murgitroyd Group plc 2.0
9 8 Tasty plc 1.9
10 20 Jelf Group plc 1.7
Total 27.9
Analysis of Total Assets
Percentage of total Percentage of total
assets assets
31 March 2014 31 Dec 2013
Unquoted investments 32 38
AIM, listed, ISDX & 48 47
collective investments
vehicle
Listed interest bearing 0 5
securities
Net current assets 20 10
Total cash portfolio 20 15
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
31 March 2014 31 Dec 2013
Business Services 43 45
Consumer Markets 12 13
Healthcare & Education 17 16
Technology, Media &
Telecommunications 28 26
Total 100 100
Investment Activity
One new unquoted investment of £952,000 was made during the period in Kingsbridge a specialist insurance broker.
A total of £508,000 was invested in one new and two follow on investments in AIM traded companies
Investments made
Company Date Cost (£'000)
Daily Internet plc Jan 2014 25
Kingsbridge Limited Jan 2014 952
EG Solutions plc Loan note Feb 2014 33
Scholium Group plc Mar 2014 450
Total investments 1,460
Realisations
During the period under review Baronsmead VCT 3 realised proceeds of £2.3m from the sale of two unquoted investments (Empire World Trade and Inspired Thinking Group). Arcas Investments was dissolved in the period and the funds returned to the VCT.
The sale of Baronsmead VCT 3's holding in Inspired Thinking Group in March 2014
realised a return of 3.4 times its original cost including interest income.
Cost Proceeds Multiple
Company Date (£'000) (£'000) (X)
Inspired Thinking Group Mar 2014 796 2315 3.4*
Limited
Mar 2014 1,000 998 1.0
Arcas World Trade Limited
Jan 2014 1,297 25 0.0
Empire World Trade Limited
Total realisations 3,093 3,338
*Includes interest/ dividends received, loan note redemptions and partial
realisations accounted for in prior periods
Dividend paid on 7 March 2014
Following recent profitable sales of investments, the Directors declared an
interim dividend of 8.0p per share with respect to the year to 31 December
2014. The dividend was paid on 7 March 2014 to shareholders on the register as
of 21 February 2014. It is the Board's current expectation that this interim
dividend will be in lieu of the dividend that would normally be declared on the
publication of the Company's results for the six months to 30 June 2014.
Fundraising
An offer for subscription to raise gross proceeds of up to £10 million was
launched on 22 January 2014. The Company's offer was fully subscribed by 19
February 2014, raising £9.7 million net of expenses. As a result, on 14 March
2014 the Company allotted 8,896,261 shares at a price of 112.40p per share. The
Board would like to thank the 482 existing shareholders and extend a very warm
welcome to 576 new shareholders who invested in the Company through this
fundraising. The Company had 4,084 shareholders as at 31 March 2014.
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 April 2014 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.
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Obtains access to the information in a personal capacity;
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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.
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