Last checked at 
16 Nov 2012 16:10
Baronsmead VCT 3 plc Interim Management Statement
For the three month period from 1 July 2012 to 30 September 2012
Headlines
1.7% increase in underlying Net Asset Value per share £1.2m invested in one new and three follow on investments Performance SummaryCapital return As at As at Movement 30 Sep 2012 30 Jun 2012 Total net assets £67.21m £68.25m Net asset value per share 106.83p 105.01p* 1.7% Share price 94.25p 95.50p (1.3%) Discount to NAV (11.8%) (9.1%) 3 month (%) 1 year (%) 5 years (%) 10 years (%) Net asset value 1.7 8.9 18.3 99.8total return (1)
* Adjusted for 3.0p interim dividend for comparative purposes paid on 21 September 2012. NAV at 30 June 2012 excluding effect of dividend was 108.01p per share.
Key:
(1) NAV total return = NAV + reinvested dividends; Source: ISIS EP 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 been 20%, 40% and later 30%, so any adjusted performance measure including this relief will vary depending on the date of subscription. There is the additional benefit of receiving VCT dividends tax free.
Investment Performance
The net asset value total return of the company increased by 1.7% during the quarter. The unquoted portfolio valuation increased by 1.3% in the quarter and the AIM portfolio increased by 1.8%.
Top ten Investments Position at Position at Company Percentage30 Sep 2012 30 Jun 2012 of NAV as at 30 Sep 2012 1 1 Nexus Vehicle Holdings Limited 7.0 2 2 IDOX plc 6.3 3 3 Cablecom Networking Holdings 6.1 Limited 4 4 Crew Clothing Holdings Limited 4.5 5 8 Kafevend Holdings Limited 4.3 6 6 Independent Living Services Limited 4.0 7 5 Fisher Outdoor Leisure Holdings 3.5 Limited 8 7 CSC (World) Limited 3.4 9 9 Valldata Group Limited 2.6 10 10 Inspired Thinking Group Limited 2.3 Total 44.0Analysis of Total Assets Percentage of total Percentage of total assets assets 30 Sep 2012 30 Jun 2012 Unquoted investments 55 52 AIM, listed & collective 37 34investments vehicle Listed interest bearing 6 11 securities Net current assets 2 3 Total cash portfolio 8 14 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 2012 30 Jun 2012 Business Services 31 31 Consumer Markets 20 18 Financial Services 2 2 Healthcare & Education 15 16 Technology, Media & 32 33Telecommunications Total 100 100Investment Activity
During the period under review the company invested a total of £1,212,000 in one new and three follow on investments.
The unquoted investments during the period consisted of a new investment of £987,000 in Pho, a group of traditional Vietnamese restaurants based in London and a further investment of £75,000 in Impetus.
A total of £150,000 was invested in two follow on investments in AIM tradedcompanies: £70,000 invested in Accumuli plc and £80,000 invested in ElectricWord plc.Investments madeCompany Date Cost (£'000) Accumuli plc Aug/Sep 2012 70 Electric Word plc Sep 2012 80 Impetus Holdings Limited Aug 2012 75 Pho Holdings Limited Jul 2012 987 Total investments 1,212RealisationsCompany Date Cost Proceeds Multiple (£'000) (£'000) (X) Adventis Group plc (written Sep 2012 361 0 0.0off) MLS Limited (partial loan Jul/Aug/Sep 178 178 1.0note redemption) 2012 Total realisations 539 178
Share Price Discount Policy
In further support for the Company's shareholders, the Directors will seek to narrow the share price discount to net asset value of the Company's shares by buying back shares through the market at a 5 per cent. discount to net asset value. This share price discount policy will be kept under review based on the number of shares bought back over the next 12 months and may be subject to revision. Shares will be bought back depending on market conditions at the time and only where the Directors believe that it will be in the best interests of shareholders as a whole.
Fundraising
The Directors have announced that they intend to launch an Offer for Subscription ("the Offer") to raise up to £5 million. The funds raised by the Company pursuant to its Offer will be added to the liquid resources available for investment so as to put the Company into a position to take advantage of attractive investment opportunities over the next two to three years. Full details of the Offer will be contained in a prospectus that is expected to be published in due course.
Events after the period end
Other than the event described above, the Board is not aware of any significant events or transactions which have occurred between 1 October 2012 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:
The Company's Investment Manager, ISIS EP 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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