TIDMBSV
RNS Number : 1317Y
British Smaller Companies VCT PLC
17 August 2018
British Smaller Companies VCT plc
Interim Management Statement
For the quarter ended 30 June 2018
British Smaller Companies VCT plc (the "Company") presents its
interim management statement for the quarter ended 30 June 2018.
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 progress with total return
rising from 216.0 pence per ordinary share to 217.6 pence per
ordinary share in the quarter. This is an increase of 1.6 pence per
ordinary share.
It is pleasing that improved performance across a number of
investments contributed to the GBP1.7 million increase in net asset
value ("NAV") from the portfolio in the period.
The Company made two new investments of GBP3.1 million in the
quarter, and on 18 May 2018 paid an interim dividend of 4.0 pence
per ordinary share.
Performance
The movement in NAV per ordinary share and the dividends paid
are set out in the table below:
GBPm Pence per
ordinary share
NAV at 1 April 2018 86.1 79.6
Net underlying increase in portfolio 1.7 1.5
Net profit after expenses 0.1 0.1
Issue of shares (DRIS) 1.2 -
Increase in Total Return 3.0 1.6
NAV before the payment of dividends 89.1 81.2
Dividends paid (4.3) (4.0)
-------------------------------------- ---- ------ ------- ---------
NAV at 30 June 2018 84.8 77.2
-------------------------------------- ---- ------ ------- ---------
30 June 2018 Movement 31 March
2018
Net Assets (GBPm) 84.8 (1.3) 86.1
------------- ---------- ------------
NAV per share (PPS) 77.2p (2.4p) 79.6p
------------- ---------- ------------
Cumulative dividends paid
(PPS) 140.4p 4.0p 136.4p
------------- ---------- ------------
Total Return (PPS) 217.6p 1.6p 216.0p
------------- ---------- ------------
Shares in issue 109,941,911 1,751,747 108,190,164
------------- ---------- ------------
The total return at 30 June 2018, calculated by reference to the
NAV per ordinary share and the cumulative dividends paid per
ordinary share, was 217.6 pence per ordinary share compared to
216.0 pence per ordinary share at 31 March 2018. As a result of the
payment of the annual dividend in the quarter, cumulative dividends
paid increased by 4.0 pence per ordinary share to 140.4 pence per
ordinary share (31 March 2018: 136.4 pence per ordinary share).
The unaudited NAV per ordinary share as at 30 June 2018 was 77.2
pence per ordinary share (31 March 2018: 79.6p pence per ordinary
share) representing an increase of 1.6p pence per ordinary share
prior to the payment of the dividend of 4.0 pence per ordinary
share on 18 May 2018, primarily from the net upward movement in the
overall portfolio valuation.
Shares in issue
Pursuant to its dividend re-investment scheme on 18 May 2018 the
Company issued 1,751,747 ordinary shares at a price of 70.68 pence
per ordinary share.
The number of ordinary shares in issue at 30 June 2018 was
109,941,911 (31 March 2018: 108,190,164). In addition, at 30 June
2018 the Company held 5,225,018 ordinary shares in treasury (31
March 2018: 5,225,018).
On 4 July 2018 the Company purchased 620,767 ordinary shares of
10 pence each at a price of 72.32 pence per ordinary share. These
shares were placed in treasury.
Net assets
Net assets at 30 June 2018 comprised the following:
% of net
GBP000 assets
Unquoted investments at
fair value 62,878 74.2
Quoted investments at
bid price 2,567 3.0
------- ---------
Total investments 65,445 77.2
Fixed income Government
security 705 0.8
Listed investment funds 2,378 2.8
Cash and cash equivalents 14,805 17.4
Other net current assets 1,488 1.8
------- ---------
Net assets 84,821 100.0
======= =========
The investment portfolio at 30 June 2018 was comprised as
follows:
Valuation
as a %
Valuation of net
GBP000 assets
Matillion Limited 5,501 6.5
ACC Aviation 5,426 6.4
Intelligent Office UK 4,492 5.3
Mangar Health Limited 4,382 5.2
Deep-Secure Limited 3,577 4.2
Business Collaborator Limited 3,007 3.6
Eikon Holdco Limited 3,000 3.5
GTK (Holdco) Limited 2,955 3.5
Springboard Research Holdings
Limited 2,824 3.3
Gill Marine Holdings Limited 2,744 3.2
37,908 44.7
Other investments 27,537 32.5
Total investments 65,445 77.2
========== ==========
During the quarter to 30 June 2018 the Company made two new
investments of GBP3.1 million into Hutchinson Networks Limited (a
leading provider of multi-vendor IT and network solutions to
clients globally) and Arcus Global Limited (a provider of
cloud-based software solutions to local and national public sector
organisations).
In the quarter to 30 June 2018 the realisation and repayment of
investments and loans generated cash proceeds of GBP2.0
million.
Portfolio Performance
Over the quarter to 30 June 2018 the aggregate portfolio
valuation has increased by GBP1.7 million.
The Board continues to follow its policy of maintaining a
diversified portfolio. At 30 June 2018, four investments
represented more than 5 per cent of the Company's NAV, the largest
being 6.5 per cent.
Fundraising
Having reviewed the Company's likely funding requirements, the
Board is considering a full-prospectus fundraising during the
current tax year. The quantum and mechanism of the fundraising will
be communicated nearer to the launch.
Outlook
The European Commission has approved the revised VCT rules,
which means that VCTs are now able to invest up to GBP10 million
into knowledge intensive businesses in any 12-month period. Your
Board welcomes this change and, despite the lack of clarity on the
UK's future trading relationship with the rest of the EU, these
rule changes will allow VCTs to make larger investments in
qualifying businesses.
HMRC's advance assurance process now seems to be improving and
this has helped to deliver an encouraging level of investment in
the first 3 months of the financial year, continuing the trend seen
in the previous 3 months. Investments made under the new rules now
comprise 31 per cent of the unquoted portfolio and it is pleasing
that two well-known specialist US venture investors have recognised
the strength of our investee company Matillion's potential through
a significant recent investment.
Many of the more mature investments in the portfolio continue to
deliver good returns and opportunities to realise them at
attractive valuations are constantly evaluated.
Your Board remains highly selective when making investments,
although investing in earlier stage companies will increase the
risk profile of the portfolio. We hope that shareholders will take
advantage of the planned fundraising to increase their investment
in the Company.
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.
17 August 2018
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 news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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