Interim Management Statement

RNS Number : 4176U

Baronsmead VCT 3 PLC

14 May 2008

 



Baronsmead VCT 3 plc

Interim management statement

For the three month period from 1 January 2008 to 31 March 2008

Financial Highlights

(4.8%) change in Net Asset Value (NAV) per ordinary share before dividends

£1.12m gross proceeds raised from 121 existing Ordinary shareholders

£7.1 million invested in 7 unquoted and 6 AiM-traded companies

 Performance Summary

	As at   31 March 2008		As at  31 December 2007		Movement for the quarter 31 March 2008
Total net assets	£62.5m		£65.2m
NAV per share	114.71p		120.44p		(4.8%)
Share price	107.50p		111.50p		(3.6%)
(Discount) to NAV	(6.3%)		(7.4%)
Total return to 31 March 2008	3 months	1 year	3 years	5 years	Since launch*
Ordinary shares
Net asset value 1	(4.8%)	(5.8%)	23.7%	53.6%	62.5%
Share price2	(3.6%)	(0.6%)	30.8%	67.8%	51.0%
FTSE All-share3	(9.9%)	(7.7%)	31.3%	98.7%	21.4%

*29 January 2001

1NAV Total return = NAV + reinvested dividends; Source: ISIS  

2Share price Total return = Mid to mid share price + reinvested dividends; Source: Datastream

3Source: Datastream

Investment objective

Baronsmead VCT 3 is a tax efficient listed company which aims to achieve long-term capital growth and generate tax-free dividends for private investors.

Investment Performance 

Weakening economic conditions affected UK smaller companies and this had an impact on valuations for both the unquoted and AiM portions of the portfolio. Where companies in the unquoted portfolio are facing challenging market conditions the Manager is taking actions to sustain and improve performance as necessary.  

The relative health of the portfolio as measured by the 'direction of travel' has remained firm with some 83% of the 81 investee companies reporting steady or better trading progress. As stated in the Annual Report and Accounts for the year ended 31 December 2007, the unquoted investment in Hawksmere made in December 2003 was realised in January 2008 at 2.5 times the £766,000 cost. After the period end a further unquoted investment in kidsunlimited was sold for 4.75 times cost.

Top ten investments 

Position as at  31 March 2008	Position as at  31 December 2007	Company	Percentage of NAV as at 31 March 2008
1	1	Reed & MacKay Limited	3.66
2	10	SLR Group Limited	3.59
3	2	Independent Living Services	3.58
4	6	Kidsunlimited	3.07
5	7	Scriptswitch	2.87
6	3	Kafevend	2.77
7	8	Credit Solutions	2.74
8	-	CSC (World) Limited	2.57
9	-	Cablecom	2.54
10	-	Jelf Group plc	2.54
Total			29.93

Investment Activity

The Manager's efforts in finding new investments have been assisted by a lower pricing environment and its continued work on direct origination. There was a high level of new investment in the quarter, totalling £7.1 million across 7 unquoted opportunities and 6 AiM investments. 

Company		Cost (£'000)	VCT status
Active Assistance		679	Qualifying
Carnell Contractors		1,499	Part non-qualifying
Character Group *		97	Non-qualifying
CSC (World)		1,606	Non-qualifying
Debts.co.uk *		263	Qualifying
Electric Word *		7	Non-qualifying
Independent Media Distribution *		6	Non-qualifying
Maelor *		246	Qualifying
Nexus		1,368	Part non-qualifying
Occam		3	Qualifying
Playforce		1,033	Part non-qualifying
STM *		140	Non-qualifying
Xention		152	Qualifying
Total investment		7,099

* AiM-traded

Analysis of Total Assets

	Percentage of total assets 31 March 2008	Percentage of total assets 31 December 2007
Investment Portfolio
Unquoted investments	50	42
AiM and listed investments	23	25
Total investment portfolio	73	67
Cash Portfolio
Interest bearing securities	19	25
Cash	8	8
Total cash portfolio	27	33
Total Assets	100	100

Analysis of Investment Portfolio by Sector

(excluding cash and interest bearing securities)

	Percentage of total investments at  31 March 2008	Percentage of total investments at  31 December 2007
Business Services	46	44
Healthcare	13	12
IT Support Services	22	20
Media	7	9
Consumer Markets	12	15
Total	100	100

Other than the realisation of kidsunlimited set out above, the Board is not aware of any significant events or transactions which have occurred between 31 March 2008 and the date of publication of this statement which would have a material impact on the financial position of the Company.

Future share issues

The current state of the economy will no doubt provide attractive investment opportunities and as a consequence the Board is minded to ensure there is sufficient available capital within Baronsmead VCT 3 to take advantage of this. The intention is that there will be a new share offer available to shareholders in the 2008/2009 tax year and this will be communicated more clearly to shareholders once the Board has agreed the detailed plan.  

Daily and key information 

Further information regarding the Company, including daily 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

Future contact

For further information please contact:

Paul Forster 020 7506 5652  [e-mail]

Michael Probin 020 7506 5796 [e-mail]

 

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