BARONSMEAD SECOND VENTURE TRUST PLC

Quarterly Report • Nov 14, 2014

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RNS Number : 1324X

Baronsmead VCT 3 PLC

14 November 2014

Baronsmead VCT 3 plc

Interim Management Statement

For the three month period from 1 July 2014 to 30 September 2014

Headlines

·    0.5% increase in underlying Net Asset Value per share

·    2.9% increase in the value of the unquoted portfolio

·    0.4% decrease in the value of the quoted portfolio

·    £3.9 million realised from the sale of investments

Performance Summary

Capital return	As at 30 Sep 2014	As at 30 Jun 2014	Movement
Total net assets	£79.74m	£82.53m
Net asset value per share	106.15p	110.15p	(3.6%)*
Share price	100.50p	105.00p	(4.3%)
Total Return	3 months (%)	1 year (%)	5 years (%)	10 years (%)
Net asset value (1)	0.5	9.3	63.5	115.2

* An interim dividend of 4.5p per share was paid on 19 September 2014.  For comparative purposes, the NAV at 30 June 2014 adjusted for the 4.5p dividend was 105.65p per share.

(1) NAV total return = NAV + reinvested dividends; Source: ISIS VC 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 varied between 20% and 40%, so any adjusted performance measure including this relief will vary depending on the date of subscription. There is also the additional benefit of receiving VCT dividends tax free.

Investment Performance  

In the three months to 30 September 2014, Baronsmead VCT 3's underlying net asset value per share increased by 1.0%.  Over the quarter, the unquoted portfolio valuation increased by 2.9%, the quoted portfolio (including Wood Street Microcap Fund) decreased by 0.4%.

The Company's net assets as at 30 September 2014 were £79.7 million.  This figure takes into account the valuation of the Company's investments as at 30 September 2014 and is stated after the payment of the interim dividend of 4.5p per share paid on 19 September 2014 (£3.4m).

Top Ten Investment Holdings 

Position at 30 Sep 2014	Position at 30 Jun 2014	Company	Percentage  of NAV as at 30 Sep 2014
1	1	Nexus Vehicle Holding Limited	6.7
2	2	Netcall plc	3.8
3	3	IDOX plc	3.3
4	4	Crew Clothing Holdings Limited	3.1
5	7	Accumuli plc	2.1
6	8	Independent Community Care Management Limited	2.0
7	10	Jelf Group plc	1.9
8	9	Create Health Limited	1.9
9	13	Tasty plc	1.9
10	11	TLA Worldwide plc	1.7
Total			28.4

Analysis of Total Assets

	Percentage of total assets 30 Sep 2014	Percentage of total assets   30 Jun 2014
Unquoted investments	31	33
AIM, listed, ISDX & collective  investments vehicle	42	45
Listed interest bearing securities	13	11
Net current assets	14	11
Total cash portfolio	27	22
Total Assets	100	100

Analysis of Investment Portfolio by Sector

(excluding cash and interest bearing securities)

	Percentage of total investments at 30 Sep 2014	Percentage of total investments at 30 Jun 2014
Business Services  Consumer Markets  Healthcare & Education Technology, Media & Telecommunications	42 15 11 32	43 12 15 30
Total	100	100

Investment Activity

In the three months to 30 September 2014, Baronsmead VCT 3 invested £1,254,000 in 2 new and 3 follow on investments as set out in the table below.

Company		Date		Cost (£'000)
CR7 Services Limited		Aug 2014		949
Crawshaw Group plc		Jul 2014		200
Daily Internet plc*		Aug 2014		90
Independent Community Care Management Limited*		Jul 2014		12
Pho Holdings Limited*		Sep 2014		3
Total investments				1,254

*Follow on investments.

Realisations

During the period under review Baronsmead VCT 3 received a total of £3.9 million in proceeds as set out in the table below. 

Company	Date	Cost (£'000)		Proceeds  (£'000)		Multiple (X)
Vectura Group plc	Jul 2014	771		2,271		2.9
Murgitroyd Group plc	Aug 2014	189		817		4.3
Chime Communications plc	Aug 2014	369		560		1.5
GB Group plc	Sep 2014	42		159		3.7
Inspired Energy plc	Sep 2014	13		49		3.9
Total realisations		1,384		3,856

*Music Festival Plc and BGlobal Plc were both written off within the period.

Three acquisition vehicles have also been dissolved within the period which resulted in a total payment of £3million to Baronsmead VCT 3.

Fundraising Update

The Company raised £9.7 million net of expenses earlier in the year and realised £12.1 million from the sale of investments and winding up of acquisition vehicles in the nine months to 30 September 2014.  As a result, it is unlikely that the Company will seek to raise new funds in the current tax year, preferring to continue investing from the Company's currently available cash resources. 

Net Asset Value as at 31 October 2014

The net asset value as at 31 October 2014 was 104.35p per share.

Events after the Period End

Other than the events described above, the Board is not aware of any significant events or transactions which have occurred between 30 September 2014 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 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 VC LLP as follows:

Email:               baronsmeadvcts@isisep.com

Telephone:        020 7506 5717

Facsimile:         020 7506 5718

Post:                100 Wood Street, London, EC2V 7AN

This information is provided by RNS

The company news service from the London Stock Exchange

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