British
Smaller Companies VCT plc
Interim
Management Statement
For the
quarter ended 31 December 2023
British Smaller Companies VCT plc
(the "Company") presents its interim management statement for the
quarter ended 31 December 2023. 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
In the quarter to 31 December 2023,
the Company's Net Asset Value per share was up by 3.3 pence, or 4.0
per cent of the opening NAV, prior to the payment of the interim
dividend of 2.0 pence on 8 December 2023. The FTSE Small Cap
Index rose by 5.4 per cent during the period.
The Company's Total Return at 31
December 2023 was up 3.3 pence, to 262.6 pence per ordinary
share.
During the quarter, the Company
invested a further £0.8 million into Force24 and £0.5 million into
Vuealta. Subsequent to the quarter end, the
Company has invested £1.8 million into three follow on investments;
Outpost, Relative Insight and SharpCloud.
In November 2023 the Company exited
its investment in E2E for £2.0 million, representing a 2.5x return
on the Company's cost. Also in November, the investment in
MacroArt was realised for £1.5 million, representing a 2.0x return
on cost for the Company.
The Company has seen further
realisations post-quarter-end, partially realising its investments
in KeTech and Arcus in January 2024, and fully exiting its
investment in Displayplan in February 2024, all at valuations in
line with fair value at 31 December 2023.
To maximise shareholder value, the
KeTech business was split into its two component parts, Rail and
Defence. The Defence business subsequently sold in January
2024, generating proceeds of £1.5 million. To date, the
Company has realised proceeds of £4.1 million from its KeTech
investment, a 2.0x return on cost, while still retaining its
investment in the Rail Business, which at the period end was valued
at £1.3 million.
In February 2024, the Company sold
its investment in Displayplan for £9.0 million. Total
proceeds received over the life of the investment are £12.5
million, an excellent 9.6x return on the Company's cost. There is
the potential for further deferred proceeds in due
course.
Performance
The table below sets out movements
in key metrics for the Company.
|
|
30 September
2023
|
Increase in
Value
|
Shares issued/dividend
paid
|
Buyback of
shares
|
Movement
In Period
|
31 December
2023
|
|
Net
Assets (£m)
|
198.6
|
7.8
|
(3.8)
|
(0.8)
|
3.2
|
201.8
|
|
NAV
per share (PPS)
|
82.4
|
3.3
|
(2.0)
|
-
|
1.3
|
83.7
|
|
Cumulative dividends paid (PPS)
|
176.9
|
-
|
2.0
|
-
|
2.0
|
178.9
|
|
Total Return (PPS)
|
259.3
|
3.3
|
-
|
-
|
3.3
|
262.6
|
|
Shares in issue
|
240,991,484
|
-
|
1,220,008
|
(975,567)
|
244,441
|
241,235,925
|
Cumulative dividends paid at 31
December 2023 were 178.9 pence per ordinary share (30 September
2023: 176.9 pence per ordinary share) following the interim
dividend of 2.0 pence paid on 8 December 2023.
The movements in NAV and NAV per
ordinary share are set out in the table below:
|
|
£m
|
Pence
per
ordinary
share
|
|
NAV at 30 September 2023
|
|
198.6
|
|
82.4
|
|
Increase in portfolio
value
|
7.6
|
|
3.2
|
|
|
Net operating income
|
0.2
|
|
0.1
|
|
|
|
7.8
|
|
3.3
|
|
|
Issue/buy-back of shares
|
0.2
|
|
-
|
|
|
Total Return in the period
|
|
8.0
|
|
3.3
|
|
NAV
before dividends
|
|
206.6
|
|
85.7
|
|
Dividends paid
|
|
(4.8)
|
|
(2.0)
|
|
NAV
at 31 December 2023
|
|
201.8
|
|
83.7
|
Dividends and shares in issue
On 8 December 2023 the Company
issued 1,220,008 shares under the Company's Dividend Re-investment
Scheme (DRIS).
Under its standing buyback
authority, on 18 December 2023 the Company purchased 975,567 shares
at 76.88 pence per share at a cost of £0.8 million. These shares
are held in treasury.
On 30 January 2024 the Company
issued 22,560,594 shares in relation to its 2023/24 fundraising,
following which the Company's issued share capital consists of
263,796,519 ordinary shares with voting rights and 24,501,263
shares held in treasury.
Net
assets
Net assets at 31 December 2023
comprised the following:
|
|
£000
|
% of net
assets
|
|
Unquoted investments at fair
value
|
135,649
|
67.2
|
|
Cash and money market
funds
|
63,490
|
31.5
|
|
Other net assets
|
2,655
|
1.3
|
|
Net assets
|
201,794
|
100.0
|
Investments
The investment portfolio at 31
December 2023 comprised:
|
|
Valuation
£000
|
Cumulative valuation as a %
of net assets
|
|
Matillion
|
26,440
|
13.1%
|
|
Unbiased
|
12,545
|
19.3%
|
|
Outpost
|
8,819
|
23.7%
|
|
Displayplan
|
8,806
|
28.1%
|
|
Elucidat
|
6,596
|
31.3%
|
|
Force24
|
6,189
|
34.4%
|
|
Wooshii
|
5,457
|
37.1%
|
|
SharpCloud
|
4,965
|
39.6%
|
|
Vypr
|
4,834
|
41.9%
|
|
ACC Aviation
|
4,340
|
44.1%
|
|
|
88,991
|
44.1%
|
|
Other investments
|
46,658
|
67.2%
|
|
Total investments
|
135,649
|
67.2%
|
Portfolio performance
Over the quarter to 31 December
2023, the aggregate unquoted portfolio valuation has increased by
£7.6 million.
Fundraising
The Company announced a new share
offer on 20 September 2023, alongside British Smaller Companies
VCT2 plc, with the intention of raising up to £90 million, in
aggregate, which included an over-allotment facility of £25
million, in aggregate. The offers closed to new Applications on 16
February 2024. Gross Applications of £90 million have been
received, of which c.£55.5 million relate to the Company. The first
allotment of £30 million (£18.6 million relating to the Company)
took place on 30 January 2024; the second and final allotment will
take place in early April 2024.
Outlook
In the last quarter of the year,
there was a notable upturn in the economic forecast. We witnessed a
decline in inflation rates and a growing consensus that interest
rates might be lowered in 2024. Nevertheless, we're keeping a close
eye on any potential shifts, particularly given recent instability
in the Middle East, which have raised concerns about a resurgence
in input costs. Additionally, upcoming elections in both the UK and
US in 2024 may influence the economic outlook.
The portfolio has demonstrated
robust revenue growth in an efficient manner through a tough
trading period, which should leave portfolio companies well
positioned to continue their positive trajectory as the economic
environment improves. Moreover, the close of the Company's
2023/24 fundraising in February positions the Company strongly to
continue supporting the portfolio and to invest further in new
opportunities in the year ahead.
The information contained within
this announcement is deemed by the Company to constitute inside
information as stipulated under the Market Abuse Regulations (EU
No. 596/2014). Upon the publication of this announcement via
Regulatory Information Service this inside information is now
considered to be in the public domain.
15 March 2024
For further information please
contact:
David
Hall
YFM Private Equity
Limited
Tel: 0113 244
1000
Alex Collins
Panmure
Gordon (UK) Limited
Tel: 0207 886 2767