Interim Management Statement

RNS Number : 3458S

Baronsmead VCT 3 PLC

15 May 2009

 



Baronsmead VCT 3 plc

Interim management statement

For the three month period from 1 January 2009 to 31 March 2009

Financial Headlines

• 0.9p (0.9%) increase in Net Asset Value (NAV) per share before payment of the final dividend of 4.5p per share (FTSE All-Share Index fell 10.2%)

• 0.7p (0.6%) due to the rise in the valuation of the unquoted portfolio

• 0.2p (0.2%) due to the increase in the AIM shares

• £1.5m raised through an offer for subscription which closed on 3rd April 2009

Investment Objective and Dividend Policy

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

The Board wishes to maintain a minimum annual dividend level of around 4.5p per ordinary share if possible, but this depends primarily on the level of realisations achieved and it cannot be guaranteed. There will be variations in the amount of dividends paid year on year.

Performance Summary

Capital return	As at  31 March  2009	As at  31 December 2008	Movement %
Ordinary shares
Total net assets	£52.6m	£55.1m
Net asset value per share	99.11p	98.22p*	0.9%
Share price	87.00p	90.00p	(3.3%)
Premium/(Discount) to NAV	(12.22%)	(12.38%)
* This is stated after adjusting for the payment of the final dividend for 2008 of 4.5p per share (paid on 20 March 2009) for comparative purposes which means the final NAV at 31 March 2009 was 99.11p.
Total return	3 months to  31 March 2009	1 year to  31 March  2009	5 years to  31 March 2009	Since launch in January 2001
Ordinary shares
Net asset value 1	0.9%	(7.1%)	29.6%	50.9%
Share price 2	0.5%	(12.9%)	35.4%	29.8%
FTSE All-share 3	(9.1%)	(29.3%)	7.2%	(14.0%)

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

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

3FTSE All-share = FTSE All-share Index + reinvested dividends; Source: AIC

Investment Performance 

Over the quarter to 31 March 2009, the FTSE ALL-Share Index fell 10.2% while the FTSE AIM Index rose by 4.7%.

The NAV per share of the Company increased by 0.9% over the quarter with both unquoted and AIM portions of the portfolio holding their value.  Upward revaluations of the unquoted investments in Nexus and Scriptswitch were balanced out by further provisions taken on the investments in Empire World Trade and TVC Group.  There was an even spread of ups and downs on the AIM portfolio with the first positive movement in a quarter for nearly two years as equity markets showed some tentative signs of stabilisation. The AIM portfolio now represents 19% of the total NAV.

Fund Raising 

The recent offer for subscription raised gross proceeds of £1.5m. Of the 166 individuals who subscribed to the offer, 111 were existing shareholders with 55 new shareholders subscribing 36% of the amount raised.

Investment Activity

Three investments totalling £0.2m were completed in existing portfolio companies, Occam, Xention Discovery and IDOX.

During the period part of the shareholding in Craneware was sold for a £77,000 profit. Three AIM investments with a combined value of £70,000 as at 31 December 2008 were written off during the quarter.  The portfolio decreased in number from 74 to 71 companies.

Investments

Company	Date	Cost (£'000)	VCT status
Follow on Investments
IDOX*	Jan 09	118	Non Qualifying
Occam	Mar 09	8	Qualifying
Xention Discovery	Feb 09	91	Qualifying
Total follow on investment		217

*AIM traded 

Top ten investment holdings

Position as at  31 March  2009	Position as at  31 December 2008	Company	Percentage of net assets as at 31 March 2009
1	1	Scriptswitch	5.99%
2	2	Reed and Mackay	5.14%
3	3	Carnell Contractors	4.59%
4	5	Nexus Vehicle	4.58%
5	4	Independent Living Services	4.20%
6	6	Cablecom	3.28%
7	8	Quantix	3.05%
8	7	Kafevend	3.00%
9	9	Fisher Outdoor	2.73%
10	10	Crew Clothing	2.46%
Total			39.02%

  Sector breakdown 

(excluding cash and interest bearing securities)

	Percentage of total investments at  31 March 2009	Percentage of total investments at  31 December 2008
Business Services	33	33
Consumer Markets	14	14
Energy & Environmental	0	0
Financial Services	6	7
Healthcare & Education	23	21
IT & Media	24	25
Total	100	100

8th Annual General Meeting on 18 March 2009

Around 50 Shareholders attended this AGM, which included a number of presentations and a shareholder workshop. The Chairman gave his exposition on the current economic situation followed by comment on the investment environment from the Manager. Neil McCrossan, CEO of Nexus, presented the growth story of this business including the acquisition of a similar vehicle rental activity in autumn 2008.  At the heart of Nexus is its IRIS software platform that can enable good scalable growth.

30 April 2009 NAV Announcement

The NAV per share at 30 April 2009 was 101.93p largely driven by a continued increase in the value of the AIM portfolio. 

The Board is not aware of any significant events or transactions which have occurred between 31 March 2009 and the date of publication of this statement, save as stated above, which would have a material impact on the financial position of the Company.

Daily and key information 

Further information regarding the Company, including latest financial statements or quarterly factsheets, can be found at the Company's website www.baronsmeadvct3.co.uk

For further information please contact:

Michael Probin, VCT Investor Relations, on 020 7506 5796 or [e-mail]

Paul Forster, Company Secretary, on 020 7506 5652 or [e-mail]

 

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