British Smaller Co's - 1st Quarter Results
20/09/2022 09:30
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RNS Number : 9595Z British Smaller Companies VCT PLC 20 September 2022
British Smaller Companies VCT plc
Interim Management Statement
For the quarter ended 30 June 2022
British Smaller Companies VCT plc (the "Company") presents its interim
management statement for the quarter ended 30 June 2022. 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 (http://www.bscfunds.com) .
Overview
The Company's Total Return at 30 June 2022 was 253.2 pence per ordinary share,
representing an increase of 1.1 pence per ordinary share over the Total Return
of 252.1 pence per ordinary share as at 31 March 2022. The increase is 1.3 per
cent of the net asset value (NAV) at the beginning of the quarter of 85.7
pence per share.
Performance
The table below sets out movements in key metrics for the Company.
31 March 2022 Increase in Value Dividends paid/shares issued Buyback of shares Movement 30 June 2022
In Period
Net Assets (£m) 159.5 2.2 - (0.4) 1.8 161.3
NAV per share (PPS) 85.7 1.1 - - 1.1 86.8
Cumulative dividends paid (PPS) 166.4 - - - - 166.4
Total Return (PPS) 252.1 1.1 - - 1.1 253.2
Shares in issue 186,260,145 - - (474,729) (474,729) 185,785,416
The unaudited NAV per ordinary share increased in value by 1.1 pence, to stand
at 86.8 pence per share at the period end. Cumulative dividends paid at 30
June 2022 were unchanged at 166.4 pence per ordinary share (31 March 2022:
166.4 pence per ordinary share).
The movements in NAV and NAV per ordinary share are set out in the table
below:
£m Pence per
ordinary share
NAV at 31 March 2022 159.5 85.7
Increase in portfolio value 2.8 1.5
Net operating costs (0.6) (0.4)
2.2 1.1
Issue/buy-back of shares (0.4) -
Total Return in the period 1.8 1.1
NAV at 30 June 2022 161.3 86.8
Post-period end, on 12 July 2022, the first interim dividend of 2.0 pence per
ordinary share for the year ending 31 March 2023 was paid, resulting in a
corresponding reduction to the 30 June 2022 unaudited NAV, to 84.8 pence per
ordinary share.
Dividends and shares in issue
Under its standing buyback authority, on 28 June 2022 the Company purchased
474,729 shares at 80.02 pence at a cost of £0.38 million. These shares are
held in treasury.
Subsequent to the quarter end, on 12 July 2022 the Company issued 1,029,555
shares under the Company's Dividend Re-investment Scheme (DRIS) following the
payment of the interim dividend, taking the number of shares in issue at that
date to 186,814,971, with a further 19,309,711 shares held in treasury.
Your Board has proposed a second interim dividend of 2.0 pence per ordinary
share for the year ending 31 March 2023 which, when combined with the above
dividend paid in July, will bring total dividends paid in the current
financial year to 4.0 pence per ordinary share (2022: 9.0 pence per ordinary
share). The interim dividend will be paid on 3 October 2022 to shareholders
on the register on 2 September 2022. Following the payment of the second
interim dividend the adjusted 30 June 2022 unaudited NAV will be 82.8 pence
per ordinary share.
Net assets
Net assets at 30 June 2022 comprised the following:
£000 % of net assets
Unquoted investments at fair value 109,193 67.7
Listed investment funds 4,554 2.8
Cash and cash equivalents 47,285 29.3
Other net assets 266 0.2
Net assets 161,298 100.0
Investments
The investment portfolio at 30 June 2022 comprised:
Valuation Cumulative valuation as a % of net assets
£000
Matillion Limited 26,092 16.2%
Springboard Research Holdings Limited 8,233 21.3%
Outpost VFX Limited 7,987 26.2%
Displayplan Holdings Limited 7,051 30.6%
Unbiased EC1 Limited 6,343 34.5%
Intelligent Office UK 5,763 38.1%
Wooshii Limited 4,871 41.1%
Elucidat Ltd 4,508 43.9%
ACC Aviation Group Limited 4,112 46.5%
SharpCloud Software Limited 3,986 48.9%
78,946 48.9%
Other investments 30,247 67.7%
Total investments 109,193 67.7%
Investments made since November 2015 represented 73 per cent of the value of
the unquoted portfolio at 30 June 2022.
Portfolio performance
Over the quarter to 30 June 2022, the aggregate unquoted portfolio valuation
has increased by £3.1 million.
Investments
A number of investments within the portfolio are seeking to extend or
accelerate their growth plans, which has resulted in further investment of
£3.4 million into three portfolio companies in the period, including £3.0
million into Outpost which will help the company develop new studios in London
and Mumbai. At the same time, the Company has added one new investment of
£1.5 million into Quality Clouds, a tool for the control and governance of
critical SaaS platforms within corporations. Subsequent to the period end, a
further £3.5 million has also been invested into four portfolio companies,
taking the total invested so far this year to £8.4 million, following the
£9.8 million invested in the full year to 31 March 2022.
Registrars
The Company is in the process of changing its registrar, from Link Group to
The City Partnership; transition is expected to take place over the weekend of
21-23 October 2022; The City Partnership will send further correspondence on
this to all shareholders in due course.
Fundraising
On 2 August 2022, the Company announced its intention to launch a joint offer
for subscription for the tax year 2022-23 later this year, alongside British
Smaller Companies VCT2 plc. A prospectus with full details of the proposed
offer will be published in due course.
Outlook
The current macro environment is challenging for businesses, with high levels
of inflation accompanied by rising interest rates, which has fed through to
soften sentiment towards many technology stocks in the public market.
Against this backdrop, we are pleased with the resilience currently being
shown by the portfolio and the continued growth being seen within many of the
underlying companies. The planned fundraise for the Company will ensure it
has capital to continue to support the existing portfolio, with a focus on
funding companies through to profitability, as well as remaining as active
investors for new opportunities arising across the UK.
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.
20 September 2022
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
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