Maven Grwth 3 Regulatory News (MIG3)

Maven Income and Growth VCT 3 PLC

Interim announcement

Chairman's Statement

I am pleased to report on a further increase in NAV Total Return during the six month period under review and that the Board has approved payment of an increased interim dividend of 2.0p (2011: 1.75p), which reflects the increasing maturity of the private company portfolio. Your Company has established an improving trend in dividends at a time when investors continue to struggle to find attractive sources of reliable income in a low-interest rate environment.

Highlights

• Total Return on Ordinary Shares of 112.05p per Share at the period end, up 4.2% (4.55p) over the six months

• NAV at period end of 82.6p per Ordinary Share after payment of the final dividend of 2.75p

• Interim dividend declared of 2.0p per Ordinary Share, up from 1.75p in 2011

• Three substantial new investments added to the portfolio during the six-month period, and one further investment completed post the period end

• Disposal of ATR for a total return of 2.4x cost

• Exit from Transys Projects after the period end at 2.0x cost

• Exit from Nessco after the period end at 2.7x cost.

The Manager's UK-wide team has continued to generate a regular flow of attractive investments in competitively priced private companies, as the scarcity of bank debt available to smaller companies has made available a greater range of prospective transactions to generalist VCTs. The Board was very encouraged to note the Deloitte Buyout Track 100 table published in February 2012, which provides a powerful validation of our strategy of investing in companies which have passed the first phase of their development and demonstrates the Manager's ability to select and develop high quality assets for investors. The report tracks the performance of the top 100 private equity backed medium-sized companies in Britain for the period 2010 and 2011, and four of your portfolio companies are featured, namely Adler & Allan, Homelux Nenplas, Torridon Capital and Westway Services.

Homelux Nenplas and Electro-Flow Controls have also been nominated for the Mid Market Management Team of the Year awards for the Midlands and Scotland & Northern Ireland regions as part of the 2012 BVCA Management Team Awards, which recognise both the positive economic impact of private equity backed companies and the achievements of their management teams.

A number of successful exits have been achieved in recent years. One of the Manager's key areas of expertise is in the energy services sector, where it enjoys a strong regional presence in North East Scotland and has consistently sourced attractive new investments. The buoyant oil & gas sector continues to forge entrepreneurial service companies and your Company has benefited from strong demand from the industry and private equity buyers for successful companies. Since 2007 Maven has led ten such investments, with a total deal value of around £90 million, and has now achieved four profitable realisations in the sector.

The Board was also pleased to note the recent approval by the European Commission of proposed increases to the scale of investment which qualifies for VCT funding, and of the amount which can be invested in individual businesses. The gross asset limit for investee companies has been raised from £7 million to £15 million and the maximum number of employees from 50 to 250, while the annual

investment limit has been raised from £2 million to £5 million. These measures support our strategy of investing in later-stage companies and reaffirm the attraction of generalist VCTs as a tax-efficient route to investment in high growth smaller businesses.

Performance

Your Company has established a sustained trend of improving returns over recent years, driven by the focused private equity investment strategy, with NAV Total Return having increased by 18.4% since November 2008. NAV Total Return is the most important measure of performance for a VCT, being the long term record of dividend payments out of income and capital gains combined with the

current NAV. The NAV in isolation is a less important measure of performance as the underlying investments are long-term in nature and not readily realisable.

The Investment Portfolio

The portfolio is now comprised of more than 40 later-stage private companies and is generally performing well, with most companies trading at acceptable levels. The exposure to AIM quoted assets has been further reduced during the period, to less than 2.5% of portfolio value.

During the period to 31 May 2012 your Company has made three new private company investments and five follow-on investments, across a wide range of sectors, and has participated in every private equity deal completed by the Manager. Each new asset is a cash generative later-stage business, with little or no external debt and good prospects for development and expansion.

There have been three notable private company exits, including two completed after the period end, and realisations completed during the period generated proceeds of £0.95 million. The investment in ATR Holdings was sold to NBGI Private Equity at an overall return of 2.4 times the cost of investment. On 1 June 2012 the holding in Transys Projects Limited (TPL) was sold to German trade buyer Vossloh Kiepe. On 5 July, Nessco Group Holdings was sold to RigNet, a NASDAQ quoted US Telecoms business, generating a 2.7x return on the cost of investment.

The Manager is currently engaged in negotiations for the potential disposal of several investee companies although there can be no certainty that these will be successfully concluded.

Dividend

The Board has declared an increased interim dividend of 2.0p per Ordinary Share to be paid on 31 August 2012 to Shareholders on the Register at 10 August 2012. For the year ended 30 November 2011 the Company paid total dividends of 4.5p per Share to Ordinary Shareholders, which is a yield of 5.63% on an effective investment of 80.0p (based on the initial subscription price for an

Ordinary Share of £1.00 less initial tax relief of 20%) and is equivalent to a gross yield of 7.5% from an equity investment to a higher rate taxpayer (the dividend return an investor would need to earn from a taxable UK equity). To an Additional Rate taxpayer, the effective yield is 8.8%. For former C Ordinary Shareholders, based on 40% initial tax relief, the equivalent yields are 11.9% for a higher rate taxpayer and 13.9% for an Additional Rate taxpayer.

Ordinary Shareholders have, since the Company's launch, received 29.45p per Share in tax-free dividends. The impact of paying the interim dividend of 2.0p will be to reduce the NAV to 80.6p per Share.

The future level of dividends will depend on performance, and will be consistent with the Board's declared intention of paying not less than 4p per Share each year subject to the maintenance of NAV at a suitable level. The Board regards the growing level of dividends as an indication of the success of the Company's investment strategy and is committed to improving Shareholder distributions in future years as the portfolio continues to expand and mature.

Principal risks and uncertainties

The Board has reviewed the principal risks and uncertainties facing the Company, which are set out on page 22 of the Annual Report.

The Company has invested in a broadly based portfolio of investments largely in unlisted companies in the UK. The portfolio of investments in the AIM market is reducing as the unlisted portfolio is further developed.

The VCT qualifying status of the Company is reviewed regularly by your Board and monitored on a continuous basis by the Manager in order to ensure that all of the criteria for VCT status are met. The Board is pleased to confirm that all tests continue to be met.

Share Buy-back Policy

Shareholders have given the Board authority to buy back Shares for cancellation when it is in the interests of the Shareholders and the Company as a whole and 286,000 Shares were bought back during the period at a cost of £206,803. Details of the parameters within which the Company may carry out Share buy-backs are given in the Directors' Report in the Annual Report.

Recovery of VAT

Aberdeen Asset Management PLC (Aberdeen) has offered to repay £40,572 of the VAT paid by the Company relating to investment management fees during the period from 28 June 2004 to 30 September 2005. The Directors have resolved to accept the offer on the condition that the Company will remain entitled to any additional VAT and interest that may be recovered by Aberdeen. The

proposed payment has not yet been reflected in the Financial Statements.

Enhanced Buy-back Scheme

The Board is considering an enhanced Share buy-back scheme which would enable Shareholders to sell up to 14.99% of their Shares at NAV and reinvest the proceeds of sale in new Shares at an issue price of NAV plus costs, which would entitle them to claim income tax relief on the value of the reinvestment of up to 30%. In the event that the Board decides that it is in the interests of Shareholders and the Company as a whole to proceed with this, Shareholders will receive a circular giving full details.

VCT top-up Offer

A top-up Offer was opened in December 2011 in parallel with similar offers by Maven Income and Growth VCT, Maven Income and Growth VCT 2 and Maven Income and Growth VCT 4, resulting in the issue of 1,491,880 new Shares and raising an additional £1,248,703 of share capital. The Offer was fully subscribed by 29 February 2012 and consequently closed early.

Outlook

The strategy of investing in later-stage private equity transactions with strong yield characteristics has generated improved revenues and delivered steady increases in NAV over recent years. The Board believes that this approach continues to be the best means of supporting a progressive dividend programme. The opportunity for regular tax-free income is a major attraction of VCT investment and the proposed increased interim dividend reflects the Board's confidence in the portfolio and the potential for continued improvement in Shareholder returns.

Gregor Michie

Chairman

13 July 2012

Investment Manager's Review

Overview

The later-stage investment strategy employed by Maven is to focus only on well managed private companies which are able to demonstrate a history of predictable earnings and invest conservatively in businesses which pay income and offer the clear potential for capital growth. Despite a difficult economic environment most of your Company's private company assets continue to trade positively and are paying regular income which should allow the Company to maintain a healthy dividend programme.

Investment Activity

During the period the Maven team completed three substantial new private equity investments on behalf of your Company, and made five follow-on investments in existing portfolio companies. At the period end, the portfolio contained 60 unlisted and AIM investments at a total cost of £22.9 million. Since 31 May 2012, one new qualifying investment has been completed at a cost of £0.46 million.

The following new investments have been completed during the period.

Three new private company investments were added to the portfolio during the period under review:

• Moriond, a new company set up to acquire an established residential property portfolio at a significant discount to open market value. Maven will work on a joint venture basis with an experienced developer to break up the portfolio into single units, carry out minor refurbishment, and then implement a structured sale of the individual assets;

• Vodat International, a provider of payment and communications solutions to high street businesses, which enable retailers to reduce costs, boost store productivity and increase sales in an increasingly competitive trading environment. The company has an established and diverse customer base, has consistently improved profitability in recent years and enjoys high levels of

recurring revenue from a number of long-term service and support contracts; and

• Cat Tech International, a niche industrial services business offering catalyst handling products and services to petro-chemical plants operating in the major international markets. The business specialises in servicing equipment used in applications where operational efficiency is critical and there is an increasing global focus on health and safety issues, and has developed a range

of patented products and processes to improve the efficiency, speed and safety of catalyst operations.

The follow-on investments in Venmar and Glacier Energy were to support the development of the businesses and, in the case of Glacier, to fund a small acquisition. Maven Income and Growth VCT 3 has co-invested in some or all of the above transactions with Maven Income and Growth VCT,

Maven Income and Growth VCT 2, Maven Income and Growth VCT 4, Maven Income and Growth VCT 5, Talisman First Venture Capital Trust and Ortus VCT. Co-investment allows the Companies to underwrite a wider range and larger size of transaction than would be the case on a stand-alone basis.

Realisations

In March 2012, Maven completed the realisation of ATR Group for £19.25m via a secondary buy-out funded by the private equity manager NBGI, realising a total return of 2.4 times the initial cost. ATR provides rental services for specialist plant, equipment and consumables, along with a comprehensive range of support services, to offshore and onshore energy services maintenance contractors operating in highly regulated environments. There were two significant private company realisations after the period end. At the start of June 2012 the holding in Transys Projects Limited (TPL) was sold to German engineering group, Vossloh Kiepe. The exit produced a 2.0x return on investment cost for your Company and the valuation at 31 May 2012 reflects the full offer value. In early July the holding in Nessco was also sold to RigNet Inc for a 2.7x return on the cost investment.

The table on page 12 gives details of realisations during the reporting period.

The Manager has continued its policy of disposing of the AIM portfolio for best possible value in cases where investments were underperforming. These disposals incurred realised losses of £121,000 (cost £155,000) during the period. This had no effect on the NAV as a full provision had been made in earlier periods.

Outlook

The primary focus across the Maven network will continue to be on sourcing a steady flow of attractively priced later-stage private company investments and further expanding the portfolio. Maven receives around 400 introductions annually across the country, investing only in a handful of companies each year. In tandem with regular profitable portfolio exits, we believe this is the optimum strategy for the generation of superior Shareholder returns over the medium term.

Maven Capital Partners UK LLP

Manager

13 July 2012

Directors' Responsibility Statement

We confirm to the best of our knowledge that:

·; The Financial Statements have been prepared in accordance with applicable accounting standards and with the Statement of Recommended Practice "Financial Statements of Investment Trust Companies and Venture Capital Trusts" issued in January 2009

·; The Interim Management Report includes a fair review of the information required by DTR 4.2.7R in relation to the indication of important events during the first six months, and of the principal risks and uncertainties facing the Company during the second six months

·; The Interim Management Report includes adequate disclosure of the information required by DTR 4.2.8 R in relation to related party transactions and any changes to them.

Other information

Copies of this announcement will be available to the public at the registered office of the Company, 9 - 13 St Andrew Street, London, on the Company's website at www.mavencp.com/migvct3 and at the National Storage Mechanism.

Issued on behalf of the Board

Maven Capital Partners UK LLP

Secretary

13 July 2012

ENDS

Neither the content of the Company's website nor the contents of any website accessible from hyperlinks on the company's website (or any other website) is incorporated into, or forms part of, this announcement.