Interim Management Statement
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 Summary
Capital 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 99.8
total 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 Percentage
30 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 44.0
Analysis 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 34
investments 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 33
Telecommunications
Total 100 100
Investment 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 traded
companies: £70,000 invested in Accumuli plc and £80,000 invested in Electric
Word plc.
Investments made
Company 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 1,212
Realisations
Company Date Cost Proceeds Multiple
(£'000) (£'000) (X)
Adventis Group plc (written Sep 2012 361 0 0.0
off)
MLS Limited (partial loan Jul/Aug/Sep 178 178 1.0
note 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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