Interim Management Statement

Baronsmead VCT 3 plc                              

                         Interim Management Statement                          

For the three month period from 1 January 2012 to 31 March 2012.

Headlines-

+5.3% increase in underlying net asset value per share                         
                                                                               
+17.1% growth in the AIM & listed portfolio                                    
                                                                               
£3.9m raised (net of expenses) from 561 shareholders                           


Performance Summary

Capital return                      As at       As at    Movement          
                                                                           
                              31 Mar 2012 31 Dec 2011                      
                                                                           
Total net assets                  £66.91m     £60.10m                      
                                                                           
Net asset value per share         105.49p     100.16p        5.3%          
                                                                           
Share price                        92.75p      91.25p        1.6%          
                                                                           
Discount to NAV                   (12.1%)      (8.9%)                      
                                                                           
                                  3 month      1 year     5 years  10 years
                                                                           
Net asset value total                5.3%        7.7%       15.9%     93.0%
return (1)                                                                 
                                                                           
Share price total return(2)          1.6%        7.8%       18.5%     97.0%
                                                                           
FTSE All-share total return          6.1%        1.4%        9.5%     65.5%
(3)                                                                        
                                                                           

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 

The net asset value total return of the company increased 5.3% during the
quarter compared to an increase of 6.1% in the FTSE All Share Total Return over
the same period. The unquoted portfolio valuation increased by 2.8% in the
quarter and the AIM portfolio increased by 17.1%.


Top Ten Investments 

Position    Position                                             Percentage    
at          at                                                       of NAV        
31 Mar 2012 31 Dec 2011   Company                                          
                                                               as at 31 Mar  
                                                                       2012          
                                                                           
1           1             Nexus Vehicle Holdings Limited                7.7
                                                                           
2           2             CableCom Networking Holdings                  5.8
                          Limited                                           
                                                                           
3           4             IDOX plc                                      4.9
                                                                           
4           3             Crew Clothing Holdings Limited                4.0
                                                                           
5           6             CSC (World) Limited                           3.3
                                                                           
6           7             Fisher Outdoor Leisure Holdings               3.3
                          Limited                                           
                                                                           
7           5             Kafévend Holdings Limited                     3.2
                                                                           
8           12            Independent Living Services Limited           3.1
                                                                           
9           8             Valldata Group Limited                        2.6
                                                                          
10          9             Inspired Thinking Group Limited               2.1
                                                                           
Total                                                                  40.0


Analysis of Total Assets

                         Percentage of total        Percentage of total      
                         assets                     assets                   
                                                                           
                         31 Mar 2012                31 Dec 2011              
                                                                           
Unquoted investments                           45                        51
                                                                           
AIM, Listed & Collective                       32                        31
Investments                                                                
                                                                           
Interest Bearing                    33                       17            
Securities                                                                 
                                                                           
Net current                        (10)                       1            
(liabilities)/assets*                                                      
                                                                           
Total cash portfolio                           23                        18
                                                                           
Total Assets                                  100                       100

*Cash less investments awaiting settlement



Analysis of Investment Portfolio by Sector

(excluding cash and interest bearing securities)

                        Percentage of total       Percentage of total      
                        investments at 31 Mar     investments at 31 Dec    
                        2012                      2011                     
                                                                           
Business Services                              32                        34
                                                                           
Consumer Markets                               18                        18
                                                                           
Financial Services                              2                         2
                                                                           
Healthcare & Education                         14                        13
                                                                           
Technology, Media and                          34                        33
Telecommunications                                                                                                                                 
Total                                         100                       100


Investment Activity

During the quarter a total of £0.1m was invested in two AIM quoted stocks,
Accumuli plc & Driver Group plc.

Shortly after the period end a further four unquoted investments were
completed. On 4 April 2012, £0.8m was invested in Happy Days, a day nursery
operator based in the South West of England. On 3 and 4 April 2012, £3.0m was
invested in three companies formed to enable investment into established
trading entities, each led by an experienced Chairman. All three Chairmen work
with ISIS as operating partners.

After the period end, a further investment of £1.0m was also made in Wood
Street Microcap Investment Fund and £1.1m was invested in one new and two
follow-on AIM traded investments.


Investments made

Company                                 Date             Cost (£'000)
                                                                     
Accumuli plc                            Feb 2012                    6
                                                                     
Driver Group plc                        Jan/Feb 2012               61
                                                                     
Total investments                                                  67


Realisations

A total of £1.53m was realised from the sale or partial sale of two unquoted
investments and three quoted investments. These sales realised a net capital
loss of £0.6m.

Company                    Date               Cost     Proceeds  Multiple
                                                (£'000) (£'000)          
                                                                         
Clarity Commerce Solutions Jan 2012                50        31      0.63
plc (full trade sale)                                                    
                                                                         
MLS Limited (partial loan  Feb/Mar 2012            99        99      1.00
redemption)                                                              
                                                                         
Real Good Food Company     Mar 2012               273       120      0.44
(The) plc (partial sale)                                                 
                                                                         
TVC Group Limited          Mar 2012             1,233     1,275         ^
                                                                         
Colliers CRE (written off) Mar 2012               470         0       N/A
                                                                         
Total realisations                              2,125    1,525†          

^Not disclosed

† Proceeds of £8,000 were also received in respect of Getting Personal Limited,
which had been sold in the year ended 31 December 2011.


Events after the period end

New investments

As noted above, since 31 March 2012 the Company invested a total of £5.93m in
four new unquoted, one new and two follow-on quoted investments and a further
investment in Wood Street Microcap Investment Fund. The Company has now
invested in 72 companies, 25 unquoted and 47 quoted investments.

Other than the events described above, the Board is not aware of any
significant events or transactions which have occurred between 31 March 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:

Michael Probin     
Investor Relations Manager     
020 7506 5600      
[e-mail]