Baronsmead 2vt Regulatory News (BMD)

19 May 2011 14:06

Baronsmead VCT3 plc Interim Management Statement

For the three month period from 1 January 2011 to 31 March 2011.

Headlines-

3.2% increase in underlying Net Asset Value per share £1.6 million investment in Valldata Group Limited Performance SummaryCapital return As at As at Movement 31 Mar 31 Dec 2011 2010 Total net assets £63.44m £64.64m* Net asset value per share 105.32p 102.10p* 3.2% Share price 93.13p 94.25p (1.2%) Discount to NAV (11.6%) (7.7%) Total return 3 months 1 year (%) 5 year (%) Since launch (%) (%) Net asset value(1) 3.0 14.7 18.7 85.6 Share price (2) 3.6 14.4 27.4 64.8 FTSE All-share (3) 1.0 8.7 20.0 42.4

*Stated after allowing for 4.5p final dividend for comparative purposes. NAV at 31st December 2010 excluding effect of dividend was 106.60p.

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 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

Unquoted valuations have increased by 5.0% in the period bringing an uplift to the NAV per share and AIM-traded valuations increased by 1.3%. This increase compares favourably with the FTSE All-Share Index which increased by 1.0%.

Top ten Investments Position Position at Percentageat of NAV 31 Mar 2011 31 Dec 2010 Company as at 31 Mar 2011 1 1 Reed & Mackay 7.6 2 2 Nexus Vehicle Holdings Ltd 7.1 3 4 CableCom Networking Holdings Ltd 4.0 4 3 Crew Clothing Company Ltd 3.9 5 6 Quantix Limited 3.6 6 5 Kafevend Holdings Ltd 3.2 7 11 IDOX plc 3.1 8 7 Independent Living Services 3.0 9 9 CSC (World) Limited 2.9 10 8 Fisher Outdoor Leisure Holdings Ltd 2.8 Total 41.2Analysis of Total Assets Percentage of Percentage of total assets at total assets at 31 Mar 2011 31 Dec 2010 AIM, listed & collective investments 28 25 Unquoted investment 53 48 Interest bearing securities 16 25 Cash 3 2 Total cash portfolio 19 27 Total assets 100 100

Analysis of Investment Portfolio by Sector

(excluding cash and interest bearing securities)

Percentage of Percentage of total total investments investments at at 31 Mar 2011 31 Dec 2010 Business Services 37 36 Consumer Markets 19 18 Financial Services 2 2 Healthcare & Education 11 12 IT & Media 31 32 Total 100 100Investment Activity

During the quarter £1.62m was invested in a new unquoted company, Valldata Group Limited and further investment was made into three existing portfolio AIM-traded companies of £0.17m.

Wiltshire based Valldata is the UK's leading provider of outsourced donation processing and fulfilment services for the UK not-for-profit market. It uses its advanced technology and IT systems to handle large volumes of transactions covering paper based donations, donations via telephone and on-line services.

Investmentsmade Date Cost (£'000) Company Driver Group plc* Jan/Feb 2011 64 Netcall* Mar 2011 80 STM Group plc* Jan 2011 22 Valldata Services Ltd Jan 2011 1,616 Wood Street Microcap Investment Fund Jan 2011 700 Total Investment 2,482*Follow on investmentsRealisations Company Date Cost Proceeds Multiple (£'000) (£'000) x Craneware plc Mar 2011 72 298 4.2 MLS Mar 2011 42 42 1.0 Reed & Mackay Mar 2011 182 182 1.0 Total realisations 296 522

Net Asset Valueas at 30 April 2011.

The NAV per share at 30 April 2011 was 106.38p representing an increase of 1.0% since the quarter end.

Events after the period end

In April 2011 the investment in Reed & Mackay was sold achieving a net profit of £3.8 million on cash proceeds of £5.0 million. Including previous loan repayments and interest this represents a return of 4.76 times original cost and adds considerably to Baronsmead VCT 3's capacity to continue paying dividends to its shareholders in line with the stated dividend policy.

Fundraising

It is likely that the Company will undertake a further fundraising during the 2011/12 tax year. Further details will be sent to shareholders when the half yearly accounts to 30 June are published in August 2011.

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