TIDMBSV
RNS Number : 6253W
British Smaller Companies VCT PLC
10 February 2017
British Smaller Companies VCT plc
Interim Management Statement
for the period ended 31 December 2016 and launch of Offer for
Subscription
British Smaller Companies VCT plc (the "Company") presents its
interim management statement for the quarter ended 31 December
2016. The statement also includes relevant financial information
between the end of the quarter and the date of this statement. A
copy of this interim management statement can be found at
www.bscfunds.com.
Overview
The Company has continued to make good progress with total
return rising to 212.8 pence per ordinary share. This is an
increase of 0.3 pence per ordinary share in the quarter and 4.1
pence per ordinary share in the nine months year-to-date,
equivalent to 4.1 per cent on the opening Net Asset Value
("NAV").
During the quarter the residual investment in GO Outdoors was
sold for GBP14.1 million delivering a realised capital profit of
GBP13.9 million and a gain over the valuation at 30 September 2016
of GBP2.8 million. This brought the total return over the life of
the Company's investment to GBP23.1 million equating to 37 times
the original cost.
It is pleasing to note that the previously reported increasing
level of enquiries from companies meeting the recently changed VCT
rules has translated into new investments, with the Company adding
three new investments totalling GBP5.1 million into Matillion,
Biz2Mobile and Traveltek during the quarter.
Performance
The total return at 31 December 2016, calculated by reference to
the NAV per ordinary share and the cumulative dividends paid per
ordinary share, was 212.8 pence per ordinary share compared to
212.5 pence per ordinary share at 30 September 2016.
The unaudited NAV per ordinary share as at 31 December 2016 was
98.6 pence per ordinary share (30 September 2016: 98.3 pence per
ordinary share) representing an increase of 0.3 pence per ordinary
share in the quarter.
Dividends and shares in issue
The number of ordinary shares in issue at 31 December 2016 was
96,763,440 (30 September 2016: 96,763,440). In addition, at 31
December 2016 the Company held 3,922,999 ordinary shares in
treasury (30 September 2016: 3,922,999).
On 18 January 2017 the Company paid an interim dividend of 16.5
pence per ordinary share (GBP16.0 million). Pursuant to its
dividend re-investment scheme and on the same date the Company
issued 5,312,221 ordinary shares at a price of 77.71 pence per
ordinary share.
Net assets
Net assets at 31 December 2016 comprised the following:
% of net
GBP000 assets
Unquoted investments at fair
value 54,291 56.9
Quoted investments at bid price 2,409 2.5
Total investments 56,700 59.4
Fixed income government securities 1,455 1.5
Cash and cash equivalents 39,409 41.3
Other net current liabilities (2,174) (2.2)
-------- ---------
Net assets 95,390 100.0
======== =========
The investment portfolio at 31 December 2016 was comprised as
follows:
Valuation
as a %
Valuation of net
GBP000 assets
ACC Aviation 5,213 5.5
Intelligent Office 4,426 4.6
DisplayPlan Holdings Limited 3,742 3.9
Mangar Health Limited 3,729 3.9
Business Collaborator Limited 2,615 2.7
Springboard Research Holdings
Limited 2,559 2.7
GTK (Holdco) Limited 2,546 2.7
Gill Marine Holdings Limited 2,259 2.4
Leengate Holdings Limited 2,112 2.2
Matillion Limited 2,100 2.2
31,301 32.8
Other investments 25,399 26.6
Total investments 56,700 59.4
========== ==========
In the quarter to 31 December 2016 the realisation and repayment
of investments generated cash proceeds of GBP15.0 million,
including GBP14.1 million from the sale of the Company's investment
in GO Outdoors. This investment had been held for eighteen years,
demonstrating the benefit of providing long-term, patient capital
to growing businesses. Following the realisation a dividend of
GBP16.0 million was paid on 18 January 2017 and the resultant
additional incentive fee of GBP3.6 million was provided for in the
quarter.
Portfolio performance
Over the quarter to 31 December 2016 aggregate unrealised
portfolio valuations have increased by GBP1.0 million. The largest
movement was a GBP1.0 million uplift in respect of ACC Aviation
Limited.
The Board continues to follow its policy of maintaining a
diversified portfolio. At 31 December 2016, only one investment
represented more than five per cent of the Company's NAV.
Interim dividend
The Company paid an interim dividend of 16.5 pence per share on
18 January 2017, of which 14.5 pence arose from the sale of the
residual investment in GO Outdoors.
Following payment of the above dividend the cumulative dividends
paid in the year to 31 March 2017 will be 22.0 pence.
Offer for subscription
The Board is pleased to announce that the Company has today
launched a new share offer (the "Offer") to raise up to
GBP4,250,000. Full details of the Offer are contained in an offer
document (the "Offer Document") issued by the Company, dated 10
February 2017.
Only postal or hand-delivered subscriptions will be accepted by
the receiving agent and the Offer will remain open to existing
shareholders until 6 March 2017. If the Offer is fully subscribed
at that date it will be closed and shares allotted by way of a
ballot.
If the Offer remains undersubscribed at that date it will be
opened to other investors and shares will then be allocated in
order of receipt until fully subscribed.
In order to be as fair as possible to all investors if the Offer
is oversubscribed at 6 March 2017 the minimum individual
subscription has been set at GBP3,000 and only one subscription
will be accepted per investor.
The Company will only accept payment by cheque and will only
present cheques for successful subscriptions once the ballot has
concluded. Bankers' drafts and electronic payments will not be
accepted.
Pursuant to the Offer, YFM Private Equity Limited, the Company's
investment adviser, will receive a fee of 3 per cent (of the gross
proceeds of the Offer) in respect of subscriptions received either
direct or through an adviser and 5 per cent (of the gross proceeds
of the Offer) for subscriptions received through an execution only
platform or broker. This constitutes a related party transaction
under Listing Rule 11.1.10R.
The Offer Document is available from the Company's website,
www.bscfunds.com, and will be posted to existing shareholders on 16
February 2017.
The Offer opens on 10 February 2017 and will close on 5 April
2017. The Offer will close earlier if it is fully subscribed.
The Offer Document will shortly be available for inspection at
the National Storage Mechanism, which is located at:
http://www.morningstar.co.uk/uk/NSM
Investor workshop
The Company will be hosting its next Investor Workshop with
British Smaller Companies VCT2 plc on 3 May 2017 at The Grand
Connaught Rooms, 61-65 Great Queen Street, Covent Garden, London
WC2B 5DA. Shareholders wishing to attend should contact Tracey Nice
on 0113 261 6478 or tracey.nice@yfmep.com.
Outlook
The level of investment has started to increase as the new VCT
rules become better understood and it is pleasing to report that
three new investments, totalling GBP5.1 million, were made in the
quarter. The current portfolio has continued to perform well
although the new VCT rules will continue to restrict some follow-on
investments into the portfolio and this is being carefully
monitored and reviewed by the Board. The returns from any new
investments will, as has previously been reported, be more
dependent on realisations and this means that, in the long term,
the Company's dividend stream is likely to be more volatile.
The information contained in this announcement is deemed by the
Company to constitute inside information as stipulated under the
Market Abuse Regulations (EU No. 596/2014). Upon publication of
this announcement via Regulatory Information Service this inside
information is now considered to be in the public domain.
10 February 2017
For further information please contact:
David Hall YFM Private Equity Limited Tel: 0113 244 1000
Jonathan Becher Panmure Gordon (UK) Limited Tel: 0207 886 2715
This information is provided by RNS
The company news service from the London Stock Exchange
END
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