Baronsmead 2vt Regulatory News (BMD)

Baronsmead VCT3 plc Half-Yearly Financial Report For the six months ended 30 June 2013 The Directors announce the unaudited Half-Yearly Financial Report for the sixmonths to 30 June 2013 as follows:- Investment Objective Baronsmead VCT 3 plc is a tax efficient listed company which aims to achievelong-term investment returns for private investors. Investment policy * To invest primarily in a diverse portfolio of UK growth businesses, whether unquoted or traded on AIM. * Investments are made selectively across a range of sectors in companies that have the potential to grow and enhance their value. Dividend policy The Board of Baronsmead VCT 3 has the objective to maintain a minimum annualdividend level of around 4.5p per ordinary share if possible, but this dependsprimarily on the level of realisations achieved and cannot be guaranteed. Since 2007, the average annual tax free dividend paid to shareholders has been7.5p per share (equivalent to a pre-tax return of 10.0p per share for a higherrate taxpayer). For shareholders who received up front tax reliefs, theirreturns would have been higher. Share price discount policy The Company buys back its shares if, in the opinion of the Board, a repurchasewould be in the best interests of the Company's shareholders as a whole. Sharesare bought back through the market rather than directly from shareholders. Thisminimises the number of shares bought back by the Company while maximising theopportunity for investors to invest in the Company's existing shares. In November 2012, the Company announced a change to its share price discountpolicy whereby the Company would seek to narrow the discount between the shareprice and the net asset value by buying back shares at a 5 per cent discount tonet asset value instead of 10 per cent. Shareholder choice The Board provides shareholders with a number of choices that enable them toutilise their investment in Baronsmead VCT 3 in ways that best suit theirpersonal investment and tax planning, in a way that treats all shareholdersequally. * Fund raising - From time to time the Company seeks to raise additional funds by issuing new shares at a premium to the latest published net asset value to account for issue costs. In December 2012, the Company's offer for subscription to raise £5 million (£4.7 million after costs) was fully subscribed. * Dividend Reinvestment Plan - The Company offers a Dividend Reinvestment Plan which enables shareholders to purchase additional shares through the market in lieu of cash dividends. Approximately 354,000 shares were bought in this way between January and June 2013. * Buy back of shares - From time to time the Company buys its own shares through the market in order to maintain a mid share price discount of approximately 5 per cent to net asset value. In the six months to 30 June 2013, 770,000 shares were bought back representing 1 per cent of the shares in issue at 30 June 2013 at prices which represented an average discount of 5 per cent to the latest published net asset values. * Secondary market - The Company's shares are listed on the London Stock Exchange and can be bought using a stockbroker or authorised share dealing service in the same way as shares of any other listed company. In addition to the shares bought by participants of the Dividend Reinvestment Plan, approximately 163,000 shares were bought by investors in the Company's existing shares in the six months to 30 June 2013. FINANCIAL HEADLINES * +3.2%- Net asset value ("NAV") per share increased 3.2 per cent to 110.55p before deduction of the interim dividend. * 3.0% - Interim dividend of 3.0p for the six month period to 30 June 2013. * £3.9m - Invested in seven new and six follow on investments in the six months to 30 June 2013. * 224.1p - NAV total return to shareholders for every 100.0p invested at launch. CHAIRMAN'S STATEMENT I am delighted to report an uplift of 3.43p in the Net Asset Value ("NAV") forthe six months to 30 June 2013 together with a good level of new investmentsand realisations. An interim dividend of 3p will be paid from profits realisedduring the period. RESULTS AND DIVIDEND The NAV increased during the period from 107.12p to 110.55p per share beforetaking account of the interim dividend of 3p. Pence per share NAV as at 1 January 2013 107.12(after the final dividend of 4.5p isdeducted) Valuation uplift (3.2 per cent) 3.43 NAV as at 30 June 2013 110.55 Less interim dividend payable on 20 (3.00)September to shareholders on theregister on 6 September 2013 NAV as at 30 June 2013 107.55(after deduction of the interimdividend) The Company has paid a consistent annual dividend of 7.5p for 6 years whichequates to a dividend yield of 7.1 per cent based on the 28 June 2013 mid shareprice of 105.88p (equivalent to 9.5 per cent for a higher rate tax payer). LONG TERM PERFORMANCE Since inception in 2001, the Company's objective has been to generateconsistent returns over the long-term through investing in a diverse portfolioof established and profitable unquoted and AIM traded companies. The Directorsare pleased that this objective continues to be achieved as demonstrated by theNAV total return of 224.1p for every 100p invested since inception beforetaking account of the tax reliefs on both the initial investment and on the73.8p of dividends paid (including the declared interim dividend). Thiscompares favourably with an equivalent return of 165.8p for the FTSE All-Shareduring the same period. The full record of performance is set out on our website,www.baronsmeadvct3.co.uk. PORTFOLIO REVIEW Portfolio performance The unquoted portfolio valuation has remained steady during the period partlyreflecting the number of newer investments still held at cost. The largestvaluation movement in the unquoted portfolio has been an uplift of £1.0 millionin the value of CableCom. The quoted portfolio continued to make good progresswith a 4 per cent overall increase in value. This was achieved despite a fallof £0.97 million in the value of IDOX following a market correction after astrong increase during the previous twelve months. However, the Company soldone third of its holding in IDOX earlier in the year, realising a profit of£1.4 million. New investments This has been a busy six months for new investment activity with a total ofseven new investments completed as well as a number of follow on fundingrounds. The Company invested £2.6 million in 3 new unquoted companies,£1.0 million in Create Health, a fertility clinic, £0.9 million in Eque2, whichdelivers software expertise to the construction and contracting sector and£0.7 million in Armstrong Craven, a provider of research services to Human Resourcedepartments of leading global corporates. In addition, immediately following the period end an unquoted investment wasmade in Luxury for Less, an online bathroom products retailing business usingan existing acquisition vehicle. Also after the period end an investment of£0.95 million was made in Key Travel, a travel management company focused on thenot-for-profit sector. A total investment of £0.7 million was made in four newquoted companies during the period. These above new investments operate in four of the five sectors on which theInvestment Manager ISIS focuses and in which it has built strong experience anda consistent track record. Full details regarding the investments during the period are set out in thetable below. Growth Fund The Company's unquoted strategy has always been to invest in larger,established companies in the VCT sector alongside other funds managed by ISIS.Since 2004, the Company has co-invested with the other Baronsmead VCTs (BVCTs)however prior to that date the BVCTs also invested alongside funds managed bythe Manager for its Institutional clients. In the March 2012 Budget theGovernment announced a restriction of £5 million to the amount of investment acompany could accept from state aided funds in any 12 month period. Since VCTsare categorised as state aided funds this placed a restriction on the level ofinvestment the BVCTs on a combined basis could make annually in any company. The Directors are therefore pleased to report that ISIS has succeeded inraising a fund from non state aided sources, ISIS Growth I LP ("the GrowthFund"), with £50 million of commitments from leading UK and internationalinstitutional investors, specifically for the purpose of investing alongsidethe BVCTs in unquoted companies. This will enable the Company to participate inunquoted investments where the initial commitment exceeds £5 million. This is aconsiderable benefit for the VCTs as companies of this size, whilst still smalland developing, tend to be more stable and it will give the Baronsmead VCTs avaluable competitive advantage in this sector of the unquoted market.Investments alongside the Growth Fund will be made in accordance with an agreedallocation basis and on the same terms. The Board would like to congratulateISIS on this innovative solution. The Growth Fund commenced on 31 May 2013 and three of the unquoted investmentsmentioned above, Armstrong Craven, Luxury for Less and Key Travel werecompanies in which both the BVCTs and the Growth Fund invested. Investment realisations A total of £7.2 million was realised from the total sale of three investmentsand one partial realisation detailed in the table below all achieving sizeableuplifts in valuation. The sale of unquoted investments in MLS and IndependentLiving Services generated multiples of 2.8 and 2.5 times original cost respectively.The sale of a quoted investment, FFastFill plc, realised a multiple of 2.8 andthe partial realisation of the Company's holding in IDOX realised a multiple of5.7 times the original cost of the shares sold. SHAREHOLDER MATTERS Fundraising The Board is currently considering raising further funds in the current taxyear. It is currently anticipated that the subscription documentation, whichwill contain the full terms and conditions, will be available in early 2014.Shareholders will be sent the subscription documentation as soon as it ispublished. Share price discount policy Progress has been made in reducing the difference between the share price andthe net asset value of the Company's shares. The mid share price discount toNAV averaged 5 per cent in the six months to 30 June 2013 compared to theprevious policy of 10 per cent. The Company bought back 770,000 shares duringthis period (1.0 per cent of the shares in issue at the end of the period) at adiscount to NAV of approximately 5 per cent. The new share price discount policy will be kept under continuous review andmay be subject to revision. Shares will be bought back depending on marketconditions at the time and only where the Directors believe it to be in thebest interests of all shareholders. OUTLOOK There appears to be a growing consensus that the outlook for the UK economy isimproving although it is still considered to be fragile and a recovery is notcertain. Nevertheless there is a greater degree of optimism than has existedfor many years which is reflected in the investment opportunities beingpresented to the Manager. The Company's portfolio has demonstrated a highdegree of resilience throughout the downturn which is a testament to theexpertise and skill of the Investment Manager which has steered its investmentsthrough the difficult times, increasing profits and employment and achievingsome successful exits. The current portfolio remains widely diversified, well resourced and adequatelyfunded. There are also encouraging signs that the number of availableinvestment opportunities is increasing with five unquoted investments completedso far in 2013. We believe that the Company is well placed to take advantage ofany upturn should it occur. Anthony TownsendChairman16 August 2013 Table of Investments and Realisations Investments in the six month period Company Location Sector Activity Book cost £'000 Unquoted investments New Create Health London Healthcare & Provider of fertility 1,065Limited Education services Eque2 Limited Manchester TMT* Enterprise resource 877 planning (ERP) solutions provider to the construction industry Armstrong Craven Manchester Business Provider of executive 673Limited Services search and business intelligence services Follow on Impetus Holdings London Business Automotive consultancy 248Limited Services and outsourced service provider Playforce Holdings Melksham Business Design and installation 163Limited Services of playground equipment Total unquoted investments 3,026 AIM-traded, listed & PLUS investments New Bioventix plc Farnham, Surrey Healthcare & Develops sheep 227 Education monoclonal antibodies Ideagen plc Matlock TMT* Compliance software 225 solutions Pinnacle Technology Stirlingshire TMT* B2B telecoms and IT 169Group plc reseller One Media iP Group Buckinghamshire TMT* Content acquisition and 56plc distribution Follow on TLA Worldwide plc London Business Baseball sports 113 Services management and marketing business Green Compliance plc Worcester Business Small business 50 Services compliance Accumuli plc Salford TMT* Managed IT security 40 Tangent London Business Digital direct marketing 40Communications plc Services Total AIM-traded, listed & PLUS 920investments Total investments in the period 3,946 * Technology, Media and Telecommunications ("TMT"). Realisations in the six month period Company First 31 Proceeds Overall investment December ‡ multiple date 2012 £'000 return * valuation £'000 Unquoted realisations MLS Limited Full trade sale Jul 06 956 984 2.8 Kidsunlimited Group Loan note Jun 01 113 176 †Limited redemption Independent Living Full trade sale Sep 05 3,322 3,426 2.5Services Limited Total unquoted 4,391 4,586realisations AIM-traded & listedrealisations FFastFill plc Full trade sale Jun 07 612 874 2.8 IDOX plc Market sale Jan 09 1,725 1,752 5.7 Total AIM-traded & listed realisations 2,337 2,626 Total realisations in the period 6,728 7,212 ‡ Proceeds at time of realisation including redemption premium and interest. * Includes interest/dividends received, loan note redemptions and partialrealisations accounted for in prior periods. † Kidsunlimited Group Limited was realised in April 2008. As part of theconsideration, Baronsmead VCT 3 received £113,000 in loan stock, which wasredeemed in April 2013. The overall multiple return for the investment inKidsunlimited was 4.9 times original cost. Independent Review Report to Baronsmead VCT 3 plc Introduction We have been engaged by the Company to review the condensed set of financialstatements in the half-yearly financial report for the six months ended 30 June2013 which comprises the Income Statement, Reconciliation of Movement inShareholders' Funds, Balance Sheet and Cash Flow Statement and the relatedexplanatory notes. We have read the other information contained in thehalf-yearly financial report and considered whether it contains any apparentmisstatements or material inconsistencies with the information in the condensedset of financial statements. This report is made solely to the Company in accordance with the terms of ourengagement to assist the Company in meeting the requirements of the Disclosureand Transparency Rules ("the DTR") of the UK's Financial Conduct Authority("the UK FCA"). Our review has been undertaken so that we might state to theCompany those matters we are required to state to it in this report and for noother purpose. To the fullest extent permitted by law, we do not accept orassume responsibility to anyone other than the Company for our review work, forthis report, or for the conclusions we have reached. Directors' responsibilities The half-yearly financial report is the responsibility of, and has beenapproved by, the directors. The directors are responsible for preparing thehalf-yearly financial report in accordance with the DTR of the UK FCA. As disclosed in note 1, the annual financial statements of the Company areprepared in accordance with UK Accounting Standards and applicable law (UKGenerally Accepted Accounting Practice). The condensed set of financialstatements included in this half-yearly financial report has been prepared inaccordance with the Statement Half-Yearly Financial Reports as issued by the UKAccounting Standards Board. Our responsibility Our responsibility is to express to the Company a conclusion on the condensedset of financial statements in the half-yearly financial report based on ourreview. Scope of review We conducted our review in accordance with International Standard on ReviewEngagements (UK and Ireland) 2410 Review of Interim Financial InformationPerformed by the Independent Auditor of the Entity issued by the AuditingPractices Board for use in the UK. A review of interim financial informationconsists of making enquiries, primarily of persons responsible for financialand accounting matters, and applying analytical and other review procedures.A review is substantially less in scope than an audit conducted in accordancewith International Standards on Auditing (UK and Ireland) and consequently doesnot enable us to obtain assurance that we would become aware of all significantmatters that might be identified in an audit. Accordingly, we do not express anaudit opinion. Conclusion Based on our review, nothing has come to our attention that causes us tobelieve that the condensed set of financial statements in the half-yearlyfinancial report for the six months ended 30 June 2013 is not prepared, in allmaterial respects, in accordance with the Statement Half-Yearly FinancialReports as issued by the UK Accounting Standards Board and the DTR of the UKFCA. Catherine Burnetfor and on behalf ofKPMG Audit PlcChartered AccountantsEdinburgh16 August 2013 Responsibility statement of the Directors in respect of the half-yearlyfinancial report We confirm that to the best of our knowledge: * the condensed set of financial statements has been prepared in accordance with the Statement `Half-yearly financial reports' issued by the UK Accounting Standards Board; * the Chairman's Statement (constituting the interim management report) includes a fair review of the information required by DTR 4.2.7R of the Disclosure and Transparency Rules, being an indication of important events that have occurred during the first six months of the financial year and their impact on the condensed set of financial statements; * the Statement of Principal Risks and Uncertainties below is a fair review of the information required by DTR 4.2.7R being a description of the principal risks and uncertainties for the remaining six months of the year; and * the financial statements include a fair review of the information required by DTR 4.2.8R of the Disclosure and Transparency Rules, being related party transactions that have taken place in the first six months of the current financial year and that have materially affected the financial position or performance of the Company during that period; and any changes in the related party transactions described in the last annual report that could do so. On behalf of the Board, Anthony TownsendChairman16 August 2013 Unaudited Income StatementFor the six months to 30 June 2013 Six months to 30 June Six months to 30 June Year to 31 December 2012* 2013 2012 Revenue Capital Total Revenue Capital Total Revenue Capital Total £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Unrealised gains on - 2,090 2,090 - 5,206 5,206 - 9,373 9,373investments Realised (losses)/ - (443) (443) - 285 285 - 426 426gains on investments Income 1,716 - 1,716 343 - 343 1,187 - 1,187 Investment management (221) (662) (883) (202) (606) (808) (409) (1,228) (1,637)fee Other expenses (212) - (212) (188) - (188) (390) - (390) Profit/(loss) on 1,283 985 2,268 (47) 4,885 4,838 388 8,571 8,959ordinary activitiesbefore taxation Taxation on ordinary (240) 240 - - - - (25) 25 -activities (Profit/(loss) on 1,043 1,225 2,268 (47) 4,885 4,838 363 8,596 8,959ordinary activitiesafter taxation Return per ordinaryshare: Basic 1.57p 1.84p 3.41p (0.08)p 7.82p 7.74p 0.58p 13.67p 14.25p * Figures as at 31 December 2012 are audited. Unaudited Reconciliation of Movement in Shareholders' Funds For the six months to 30 June 2013 Six Six Year to months to months to 31 December 30 June 30 June 2012* 2013 2012 £'000 £'000 £'000 Opening shareholders' funds 74,562 60,095 60,095 Profit for the period 2,268 4,838 8,959 Gross proceeds of share issues - 4,135 9,135 Purchase of shares for treasury (812) (616) (1,260) Expenses of share issue and buybacks (5) (199) (474) Other costs charged to capital (5) - - Dividends paid (3,006) - (1,893) Closing shareholders' funds 73,002 68,253 74,562 * Figures as at 31 December 2012 are audited. Notes 1. The unaudited interim results which cover the six months to 30 June 2013 have been prepared in accordance with applicable accounting standards and adopting the accounting policies set out in the statutory accounts of the Company for the year to 31 December 2012. 2. Return per share is based on a weighted average of 66,588,782 ordinary shares in issue (30 June 2012 - 62,481,892 ordinary shares; 31 December 2012 - 62,863,845 ordinary shares). 3. Earnings for the first six months to 30 June 2013 should not be taken as a guide to the results of the full financial year to 31 December 2013. 4. During the six months to 30 June 2013 the Company purchased 770,000 ordinary shares to be held in treasury at a cost of £812,000. At 30 June 2013, the Company holds 9,699,214 ordinary shares in treasury. These shares may be re-issued below Net Asset Value as long as the discount at issue is narrower than the average discount at which the shares were bought back. Excluding treasury shares, there were 66,032,705 ordinary shares in issue at 30June 2013 (30 June 2012 - 63,194,037 ordinary shares; 31 December 2012 -66,802,705 ordinary shares). 5. The interim dividend of 3p per ordinary share (1.5p revenue and 1.5p capital) will be paid on 20 September 2013 to shareholders on the register on 6 September 2013. The ex-dividend date is 4 September 2013. 6. The financial information contained in this half-yearly financial report does not constitute statutory accounts as defined in Section 434 of the Companies Act 2006. The information for the year to 31 December 2012 has been extracted from the latest published audited financial statements. The audited financial statements for the year to 31 December 2012, which were unqualified, have been filed with the Registrar of Companies. No statutory accounts in respect of any period after 31 December 2012 have been reported on by the Company's auditors or delivered to the Registrar of Companies. 7. Copies of the half-yearly financial report have been made available to shareholders and are available from the Registered Office of the Company at 100 Wood Street, London EC2V 7AN. Unaudited Balance Sheet As at 30 June 2013 As at As at As at 30 June 30 June 31 December 2013 2012 2012* £'000 £'000 £'000 Fixed assets Unquoted investments 36,590 35,348 37,084 Traded on AIM 19,784 18,305 20,833 Listed on LSE 1,787 1,601 1,808 Traded on PLUS 264 - - Collective investment vehicle - Wood 5,131 3,769 4,525Street Microcap Investment Fund Listed interest bearing securities 4,997 7,377 2,490 Investments 68,553 66,400 66,740 Current assets Debtors 347 305 5,261 Cash at bank 2,883 2,052 1,438 Cash at on deposit 2,000 - 1,800 5,230 2,357 8,499 Creditors (amounts falling due within (781) (504) (677)one year) Net current assets 4,449 1,853 7,822 Net assets 73,002 68,253 74,562 Capital and reserves Called-up share capital 7,573 7,147 7,573 Share premium account 22,866 18,566 22,866 Capital redemption reserve 10,862 10,862 10,862 Capital reserve 18,874 22,047 18,928 Revaluation reserve 11,434 9,357 13,649 Revenue reserve 1,393 274 684 Equity shareholders' funds 73,002 68,253 74,562 * Figures as at 31 December 2012 are audited. As at As at As at 30 June 30 June 31 December 2013 2012 2012 £'000 £'000 £'000* Net asset value per share 110.55p 108.01p 111.62p Number of ordinary shares in 66,032,705 63,194,037 66,802,705circulation Treasury net asset value per share 109.96p 106.56p 110.88p Number of ordinary shares in 66,032,705 63,194,037 66,802,705circulation Number of ordinary shares held in 9,699,214 8,279,214 8,929,214treasury Number of listed ordinary shares in 75,731,919 71,473,251 75,731,919issue * Figures as at 31 December 2012 are audited. Unaudited Cash Flow Statement For the six months to 30 June 2013 Six months Six months Year to to to 30 June 30 June 31 December 2013 2012 2012 £'000 £'000 £'000* Net cash inflow/(outflow) from operating 665 (383) (606)activities Capital expenditure and financial 61 (1,568) 2,400investment Equity dividends paid (3,006) - (1,893) Net cash outflow before financing (2,280) (1,951) (99) Net cash inflow from financing 3,925 3,320 2,654 Increase in cash at bank and on deposit 1,645 1,369 2,555 Reconciliation of net cash inflow tomovement in net cash at bank and on deposit Increase in cash at bank and on deposit 1,645 1,369 2,555 Opening cash position 3,238 683 683 Closing cash position 4,883 2,052 3,238 Reconciliation of profit on ordinaryactivities before taxation to net cashinflow/(outflow) from operating activities Profit on ordinary activities before 2,268 4,838 8,959taxation Gains on investments (1,647) (5,491) (9,799) Changes in working capital and other 44 270 234non-cash items Net cash inflow/(outflow) from operating 665 (383) (606)activities * Figures as at 31 December 2012 are audited. Principal Risks and Uncertainties The Company's assets consist of equity and fixed interest investments, cash andliquid resources. Its principal risks are therefore market risk, credit riskand liquidity risk. Other risks faced by the Company include economic, loss ofapproval as a Venture Capital Trust, investment and strategic, regulatory,reputational, operational and financial risks. These risks, and the way inwhich they are managed, are described in more detail under the headingPrincipal risks, risk management and regulatory environment within the BusinessReview and Notes in the Company's Annual Report and Accounts for the year to 31December 2012. The Company's principal risks and uncertainties have not changedmaterially since the date of that report. Related Parties ISIS EP LLP (`the Manager') manages the investments of the Company. The Manageralso provides or procures the provision of secretarial, accounting,administrative and custodian services to the Company. Under the managementagreement, the Manager receives a fee of 2.5 per cent per annum of the netassets of the Company. This is described in more detail under the headingManagement within the Report of the Directors in the Company's Annual Reportand Accounts for the year to 31 December 2012. During the period, the Companyhas incurred management fees of £883,000 and secretarial and accounting fees of£65,000 payable to the Manager. Going Concern After making enquiries, and bearing in mind the nature of the Company'sbusiness and assets, the Directors consider that the Company has adequateresources to continue in operational existence for the foreseeable future. Inarriving at this conclusion, the Directors have considered the liquidity of theCompany and its ability to meet obligations as they fall due for a period of atleast twelve months from the date that these financial statements wereapproved. As at 30 June 2013, the Company held cash balances & investments inUK Gilts with a combined value of £9,880,000. Cash flow projections have beenreviewed and show that the Company has sufficient funds to meet both itscontracted expenditure and its discretionary cash outflows in the form of theshare buyback programme and dividend policy. The Company has no external loanfinance in place and is therefore not exposed to any gearing covenants. Appendix Full Investment Portfolio Company Sector Book 30 June 31 % of % of % of cost 2013 December net Equity Equity £'000 Valuation 2012 assets held by held £'000 † Valuation Baronsmead by £'000 VCT 3 plc all funds# Unquoted CableCom TMT* 1,381 5,361 4,328 7.3 10.6 48.0NetworkingHoldings Limited Nexus Vehicle Business 2,368 4,616 4,768 6.3 12.3 56.0Holdings Limited Services CSC (World) TMT* 1,606 2,826 2,410 3.9 8.8 40.0Limited Kafevend Consumer 1,252 2,683 2,956 3.7 15.8 66.5Holdings Limited Markets Crew Clothing Consumer 1,344 2,485 3,020 3.4 6.1 25.5Holdings Limited Markets Valldata Group Business 1,616 2,168 1,754 3.0 8.8 39.8Limited Services Inspired Business 796 1,825 1,571 2.5 5.0 22.5Thinking Group ServicesLimited Fisher Outdoor Consumer 1,423 1,682 1,656 2.3 10.5 44.0Leisure Holdings MarketsLimited Independent Healthcare & 1,346 1,569 1,491 2.1 10.9 55.0Community Care EducationManagementLimited Impetus Holdings Business 1,305 1,174 1,057 1.6 7.8 39.3Limited Services Pho Holdings Consumer 987 1,095 987 1.5 5.5 28.0Limited Markets Create Health Healthcare & 1,065 1,065 - 1.4 5.7 29.0Limited Education Arcas Business 1,000 1,000 1,000 1.4 9.6 48.6Investments ServicesLimited Consumer Consumer 1,000 1,000 1,000 1.4 9.6 48.6Investment MarketsPartners Limited HealthTech Healthcare & 1,000 1,000 1,000 1.4 9.6 48.6Innovation EducationPartners Limited Quest Venture Business 1,000 1,000 1,000 1.4 9.6 48.6Partners Limited Services Riccal Business 1,000 1,000 1,000 1.4 9.6 48.6Investments ServicesLimited Eque2 Limited TMT* 877 877 - 1.2 7.6 38.5 Happy Days Healthcare & 833 833 833 1.1 8.4 42.5Consultancy EducationLimited Armstrong Craven Business 673 673 - 0.9 7.7 46.0Limited Services Playforce Business 1,196 658 512 0.9 16.5 75.0Holdings Limited Services Carnell Business 941 0 0 0.0 ## ##Contractors ServicesLimited Empire World Business 1,297 0 0 0.0 ‡ ‡Trade Limited Services Music Festivals Consumer 400 0 0 0.0 N/A N/Aplc Loan note Markets Surgi C Limited Healthcare & 1,102 0 350 0.0 13.3 57.5 Education Xention Healthcare & 893 0 0 0.0 0.4 3.0Discovery EducationLimited Total unquoted 29,701 36,590 50.1 AIM IDOX plc TMT* 614 2,466 5,184 3.4 1.8 5.0 Netcall plc TMT* 869 1,931 1,337 2.6 4.1 20.5 Murgitroyd Group Business 319 1,265 1,173 1.7 3.0 5.9plc Services Jelf Group plc Financial 761 1,072 1,024 1.5 1.5 5.8 Services Driver Group plc Business 563 1,059 786 1.4 4.1 19.4 Services Tasty plc Consumer 469 1,008 595 1.4 2.5 17.1 Markets Accumuli plc TMT* 505 990 636 1.4 4.5 24.7 TLA Worldwide Business 733 927 589 1.3 4.2 20.4plc Services Escher Group TMT* 614 802 885 1.1 1.9 9.7Holdings plc Anpario plc Healthcare & 275 690 506 0.9 2.0 14.7 Education Dods (Group) plc TMT* 1,219 577 649 0.8 4.2 20.1 Inspired Energy Business 300 476 405 0.7 2.4 11.8plc Services Sinclair IS Healthcare & 524 475 490 0.7 0.4 2.2Pharma plc Education Plastics Capital Business 473 449 317 0.6 1.7 9.8plc Services Synectics plc Business 296 442 352 0.6 0.6 2.1 Services Tangent Business 523 439 495 0.6 2.2 11.3Communications Servicesplc Hangar8 plc Business 388 406 456 0.6 3.0 14.0 Services Electric Word TMT* 696 387 366 0.5 5.1 27.7plc Vianet Group plc Business 646 378 508 0.5 1.9 9.7 Services Sanderson Group TMT* 387 364 379 0.5 1.8 6.8plc GB Group plc TMT* 150 360 341 0.5 0.3 1.7 EG Solutions plc TMT* 375 331 379 0.5 2.8 12.7 InterQuest Group Business 310 324 265 0.4 1.7 6.7plc Services PROACTIS TMT* 619 290 426 0.4 5.4 26.3Holdings plc Paragon Consumer 200 263 300 0.4 3.1 17.3Entertainment MarketsLimited Ideagen plc TMT* 225 222 - 0.3 1.0 4.3 Brady plc TMT* 176 208 292 0.3 0.4 2.1 Begbies Traynor Financial 231 176 203 0.2 0.6 2.5Group plc Services Cohort plc Business 179 176 144 0.2 0.3 1.4 Services Ubisense Group TMT* 130 130 165 0.2 0.3 1.6plc Pinnacle TMT* 169 129 - 0.2 1.8 7.8Technology Groupplc AimShell Business 400 90 96 0.1 3.1 12.3Acquisitions plc Services Zattikka plc TMT* 316 89 136 0.1 1.4 7.1 STM Group plc Financial 162 84 84 0.1 0.6 4.0 Services Tristel plc Healthcare & 217 76 114 0.1 1.0 5.4 Education Active Risk TMT* 159 75 54 0.1 1.1 5.6Group plc Green Compliance Business 932 71 29 0.1 3.2 15.7plc Services One Media iP TMT* 56 63 - 0.1 1.1 4.9Group plc Bglobal plc Business 176 19 50 0.0 0.4 2.5 Services Zoo Digital TMT* 584 5 11 0.0 0.2 0.6Group plc Total AIM 16,940 19,784 27.1 Listed Vectura Group Healthcare & 771 1,295 1,343 1.8 0.5 1.3plc Education Chime TMT 369 441 396 0.6 0.2 0.8Communicationsplc Marwyn Value Financial 64 27 33 0.0 1.3 6.0Investors ServicesLimited Marwyn Financial 525 24 36 0.0 0.3 1.6Management ServicesPartners plc Total listed 1,729 1,787 2.4 PLUS Bioventix plc Healthcare & 227 264 - 0.4 1.7 7.7 Education Total PLUS 227 264 0.4 Listed interestbearingsecurities UK T-Bill 02/09/ 2,998 2,998 - 4.113 UK T-Bill 29/07/ 1,999 1,999 - 2.813 Total listed 4,997 4,997 6.9interest bearingsecurities Collectiveinvestmentvehicle Wood Street 3,525 5,131 4,525 7.0MicrocapInvestment Fund Total collective 3,525 5,131 7.0investmentvehicle Total 57,119 68,553 93.9investments Net current 4,449 6.1assets Net assets 73,002 100.0 # All funds managed by the same investment manager, ISIS EP LLP, includingBaronsmead VCT 3. * Technology, Media & Telecommunications ("TMT"). ## Following a restructuring and partial redemption the funds no longer holdequity in Carnell Contractors Limited. ‡ Following a restructuring, the effective ownership percentage is dependent onfinal exit proceeds. Corporate Information Directors Registrar and Transfer OfficeAnthony Townsend (Chairman)‡ Computershare Investor Services PLCAndrew Karney† PO Box 82Gillian Nott OBE* The PavilionsIan Orrock Bridgwater Road Bristol BS99 6ZZ Tel: 0870 889 3250 Secretary BrokersISIS EP LLP Panmure Gordon & Co One New Change London W1J 0AH Registered Office100 Wood StreetLondon EC2V 7AN Investment Manager AuditorsISIS EP LLP KPMG Audit Plc100 Wood Street Saltire CourtLondon EC2V 7AN 20 Castle Terrace Edinburgh EH1 2EG FPPE LLP Solicitors(liquid assets only) Norton Rose100 Wood Street 3 More London RiversideLondon EC2V 7AN London SE1 2AQ Registered Number VCT Status Adviser04115341 PricewaterhouseCoopers LLP 1 Embankment Place London WC2N 6RH ‡ Chairman of the Nomination Committeeand Remuneration and ManagementEngagement Committee† Senior Independent Director Website* Chairman of the Audit and Risk Committee www.baronsmeadvct3.co.uk Copies of the half yearly report will shortly be available from the followingwebsite: www.baronsmeadvct3.co.uk. National Storage Mechanism A copy of the Half-Yearly Report will be submitted shortly to the NationalStorage Mechanism ("NSM") and will be available for inspection at the NSM,which is situated at: www.hemscott.com/nsm.do. END Neither the contents of the Company's website nor the contents of any websiteaccessible from hyperlinks on this announcement (or any other website) isincorporated into, or forms part of, this announcement.