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14 Nov 2014 17:15
Baronsmead VCT 3 plc
Interim Management Statement
For the three month period from 1 July 2014 to 30 September 2014
Headlines
· 0.5% increase in underlying Net Asset Value per share
· 2.9% increase in the value of the unquoted portfolio
· 0.4% decrease in the value of the quoted portfolio
· £3.9 million realised from the sale of investments
|
Performance Summary
Capital return |
As at 30 Sep 2014 |
As at 30 Jun 2014 |
Movement | |
Total net assets | £79.74m | £82.53m | ||
Net asset value per share | 106.15p | 110.15p | (3.6%)* | |
Share price | 100.50p | 105.00p | (4.3%) | |
Total Return | 3 months (%) | 1 year (%) | 5 years (%) | 10 years (%) |
Net asset value (1) | 0.5 | 9.3 |
63.5 |
115.2 |
* An interim dividend of 4.5p per share was paid on 19 September 2014. For comparative purposes, the NAV at 30 June 2014 adjusted for the 4.5p dividend was 105.65p per share.
(1) NAV total return = NAV + reinvested dividends; Source: ISIS VC 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 tax reliefs given at the time of subscription have varied between 20% and 40%, so any adjusted performance measure including this relief will vary depending on the date of subscription. There is also the additional benefit of receiving VCT dividends tax free.
Investment Performance
In the three months to 30 September 2014, Baronsmead VCT 3's underlying net asset value per share increased by 1.0%. Over the quarter, the unquoted portfolio valuation increased by 2.9%, the quoted portfolio (including Wood Street Microcap Fund) decreased by 0.4%.
The Company's net assets as at 30 September 2014 were £79.7 million. This figure takes into account the valuation of the Company's investments as at 30 September 2014 and is stated after the payment of the interim dividend of 4.5p per share paid on 19 September 2014 (£3.4m).
Top Ten Investment Holdings
Position at30 Sep 2014 | Position at30 Jun 2014 | Company | Percentage of NAV as at30 Sep 2014 |
1 | 1 | Nexus Vehicle Holding Limited | 6.7 |
2 | 2 | Netcall plc | 3.8 |
3 | 3 | IDOX plc | 3.3 |
4 | 4 | Crew Clothing Holdings Limited | 3.1 |
5 | 7 | Accumuli plc | 2.1 |
6 | 8 | Independent Community Care Management Limited | 2.0 |
7 | 10 | Jelf Group plc | 1.9 |
8 | 9 | Create Health Limited | 1.9 |
9 | 13 | Tasty plc | 1.9 |
10 | 11 | TLA Worldwide plc | 1.7 |
Total | 28.4 |
Analysis of Total Assets
Percentage of total assets 30 Sep 2014 | Percentage of total assets 30 Jun 2014 | |
Unquoted investments | 31 | 33 |
AIM, listed, ISDX & collective investments vehicle | 42 | 45 |
Listed interest bearing securities | 13 | 11 |
Net current assets | 14 | 11 |
Total cash portfolio
| 27 | 22 |
Total Assets | 100 | 100 |
Analysis of Investment Portfolio by Sector
(excluding cash and interest bearing securities)
Percentage of totalinvestments at30 Sep 2014
| Percentage of totalinvestments at30 Jun 2014
| |
Business Services
Consumer Markets
Healthcare & Education
Technology, Media & Telecommunications | 42
15
11
32
| 43
12
15
30 |
Total | 100 | 100 |
Investment Activity
In the three months to 30 September 2014, Baronsmead VCT 3 invested £1,254,000 in 2 new and 3 follow on investments as set out in the table below.
Company | Date | Cost (£'000) | ||
CR7 Services Limited | Aug 2014 | 949 | ||
Crawshaw Group plc | Jul 2014 | 200 | ||
Daily Internet plc* | Aug 2014 | 90 | ||
Independent Community Care Management Limited* |
| Jul 2014 |
| 12 |
Pho Holdings Limited* | Sep 2014 | 3 | ||
Total investments | 1,254 |
*Follow on investments.
Realisations
During the period under review Baronsmead VCT 3 received a total of £3.9 million in proceeds as set out in the table below.
Company | Date | Cost(£'000) |
| Proceeds (£'000) |
| Multiple(X) |
Vectura Group plc | Jul 2014 | 771 | 2,271 | 2.9 | ||
Murgitroyd Group plc | Aug 2014 | 189 | 817 | 4.3 | ||
Chime Communications plc | Aug 2014 | 369 | 560 | 1.5 | ||
GB Group plc | Sep 2014 | 42 | 159 | 3.7 | ||
Inspired Energy plc | Sep 2014 | 13 | 49 | 3.9 | ||
Total realisations | 1,384 | 3,856 |
*Music Festival Plc and BGlobal Plc were both written off within the period.
Three acquisition vehicles have also been dissolved within the period which resulted in a total payment of £3million to Baronsmead VCT 3.
Fundraising Update
The Company raised £9.7 million net of expenses earlier in the year and realised £12.1 million from the sale of investments and winding up of acquisition vehicles in the nine months to 30 September 2014. As a result, it is unlikely that the Company will seek to raise new funds in the current tax year, preferring to continue investing from the Company's currently available cash resources.
Net Asset Value as at 31 October 2014
The net asset value as at 31 October 2014 was 104.35p per share.
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 30 September 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 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 VC LLP as follows:
Email: baronsmeadvcts@isisep.com
Telephone: 020 7506 5717
Facsimile: 020 7506 5718
Post: 100 Wood Street, London, EC2V 7AN
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