Baronsmead 2vt Regulatory News (BMD)

18 Nov 2011 16:11

Baronsmead VCT 3 plc Interim Management Statement

For the three month period from 1 July 2011 to 30 September 2011.

Headlines-

4.5p second interim dividend declared payable on 9 December 2011 to

shareholders on the register as of 25 November 2011 Sale of investment in Quantix at 3.1 times cost

Performance SummaryCapital return As at As at Movement 30 Sep 2011 30 Jun 2011 Total net assets £62.99m £66.70m Net asset value per share 105.41p 108.43p* (2.8%) Share price 95.25p 96.25p (1.0%) Discount to NAV (9.6%) (11.2%) 3 month (%) 1 year (%) 5 years(%) Since launch (%) Net asset valuetotal return (2.7) 9.9 18.0 91.1(1) Share pricetotal return(2) 2.1 15.7 25.4

73.8

FTSE All-sharetotal return(3) (13.5) (4.4) 4.0 25.6

* Stated after allowing for 3.0p interim dividend for comparative purposes. NAV at 30 June 2011 excluding effect of dividend was 111.43p.

Key:

(1) NAV total return = NAV + reinvested dividends; Source: ISIS EP LLP

(2) Share price total return = Mid to mid share price + reinvested dividends;

Source: AIC

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

These total returns are stated before the inclusion of VCT taxreliefs which are designed to mitigate the higher risks and costs associatedwith investing in smaller companies and the constraints of the VCT legislation.The tax reliefs given at the time of subscription have been 20%, 40%and later 30%, so any adjusted performance measure including this relief willvary depending on the date of subscription. There is the additional benefit ofreceiving VCT dividends tax free.

Investment Performance

The net asset value total return of the company fell 2.7% during the quartercompared to a drop of 13.5% in the FTSE All Share Total Return over the sameperiod. The unquoted valuation movement stayed flat in the quarter while theAIM portfolio fell by 10.3%.Top ten Investments Position Position Percentage at at of NAV 30 Sep 30 June 2011 as at 30 Sep 2011 2011 Company 1 1 Nexus Vehicle Holdings Limited 8.9 2 3 CableCom Networking Holdings 5.9 Limited 3 5 Crew Clothing Company Limited 4.3 4 4 IDOX plc 3.9 5 6 CSC (World) Limited 3.4 6 7 Kaf©vend Holdings Limited 3.2 7 9 Fisher Outdoor Leisure Holdings 2.8 Limited 8 10 Valldata Group Limited 2.6 9 12 Vectura Group plc 2.2 10 15 Inspired Thinking Group Limited 2.0 Total 39.2Analysis of Total Assets Percentage of total Percentage of total assets assets 30 Sep 2011 30 Jun 2011 Unquoted investments 46 47 AIM, Listed & Collective 29 29Investments Interest Bearing 24 23 Securities Net current assets 1 1 Total cash portfolio 25 24 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 2011 30 Jun 2011 Business Services 35 31 Consumer Markets 18 21 Financial Services 3 2 Healthcare & Education 11 10 IT & Media 33 36 Total 100 100Investment ActivityA total of £4.05m was invested during the period under review: four unquotedinvestments totalling £3.44m, comprising three new and one follow oninvestment, and one AIM traded investment totalling £0.61m. The three newunquoted investments were in acquisition companies led by an experiencedChairman who had previously been backed by ISIS through investment by theBaronsmead VCTs. All three investments delivered successful realisations forshareholders and the three Chairmen are now seeking new opportunities in theirchosen sectors.

After the period end a further unquoted investment of £1.35m was completed in ICCM a provider of high acuity care for home based care users.

A total of £5.57m was realised from the sale or partial sale of four unquotedinvestments and one quoted investment. These sales realised net capital profitsof £2.48m, being 1.8 times the cost of the investments.Investments madeCompany Date Cost (£'000) Escher Group Holdings plc Aug 2011 614 Independent Living Services Limited* Sep 2011 438 Arcas Investments Limited± Sep 2011 1,000 Quest Venture Partners Limited± Sep 2011 1,000 HealthTech Innovation Partners Limited± Sep 2011 1,000 Total investments 4,052*Follow on investment±Acquisition vehiclesRealisationsCompany Date Cost Proceeds Multiple* (£'000) (£'000) Alere Inc Aug 2011 157 108 0.7 Carnell Contractors Aug 2011 558 558 N/ALimited (partial loan redemption) Getting Personal Limited Jul 2011 988 1,811 ND^ MLS Limited (partial loan Sep 2011 188 188 1.0redemption) Quantix Limited Sep 2011 1,194 2,904 3.1 Total realisations 3,085 5,569

* Multiple includes interest and dividends received, loan note redemptions and partial realisations accounted for in prior periods.

^Not disclosed

Net Asset Value

The NAV per share at 31 October 2011 was 105.03p representing a decrease of 0.37p per share (0.35%) since the quarter end as a result of the decrease in the value of the Company's investments in quoted companies.

Events after the period end(to be updated)

Declaration of dividend

The Board has declared a second interim dividend in lieu of a final dividend of4.5p per share, resulting in total dividends for the year of 7.5 per share. Thedividend will be payable on 9 December to shareholders on the register as of 25November 2011. The ex-dividend date will be the 23 November 2011.

New investments

Since 30 September 2011, the Company has invested a total of £1.5m in one newunquoted and one new quoted investment. The Company has investments in 67companies, 21 unquoted and 46 quoted investments and exposure to a further 29companies through the investment in Wood Street Microcap Investment Fund.

Other than the events described above, the Board is not aware of any significant events or transactions which have occurred between 30 September 2011 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:

Michael Probin Investor Relations Manager 020 7506 5600 michael.probin@isisep.com