REG - British Smaller Co's - 1st Quarter Results

British Smaller Companies VCTAnnouncement

13/09/2023 07:15

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RNS Number : 2903M  British Smaller Companies VCT PLC  13 September 2023

British Smaller Companies VCT plc

Interim Management Statement

For the quarter ended 30 June 2023

British Smaller Companies VCT plc (the "Company") presents its interim
management statement for the quarter ended 30 June 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 (http://www.bscfunds.com) .

Overview

In the quarter to 30 June 2023, the Company's Net Asset Value per share return
was unchanged at 83.7 pence.  In comparison, the FTSE Small Cap Index fell by
0.4 per cent during the period. AIC data ranks the Company first across all
generalist VCTs when considering a blended average performance ranking over 1,
3, 5, 7 and 10 years.

The Company's Total Return at 30 June 2023 was unchanged at 258.6 pence per
ordinary share.

During the quarter, the Company invested £2.6 million into Workbuzz, an
employee insights and engagement settlement platform. The Company also
invested a further £0.8 million into Relative Insight.

The Company realised its investment in Ncam in April, generating initial
proceeds of £1.4 million. There is the potential for additional receipts of
up to £1.2 million depending on the achievement of certain milestones over
the coming years, which would see the Company fully recover its investment;
£0.3 million of deferred proceeds have been recognised at the period end.

Subsequent to the period end, the Company has made a further investment of
£0.3 million into Elucidat.

Performance

The table below sets out movements in key metrics for the Company.

 

                                  31 March 2023  Increase in Value  Shares issued  Buyback of shares  Movement    30 June 2023

                                                                                                      In Period
 Net Assets (£m)                  157.0          0.4                44.4           (0.4)              44.4        201.4
 NAV per share (PPS)              83.7           0.2                (0.2)          -                  -           83.7
 Cumulative dividends paid (PPS)  174.9          -                  -              -                  -           174.9
 Total Return (PPS)               258.6          0.2                (0.2)          -                  -           258.6
 Shares in issue                  187,679,279    -                  53,559,905     (451,965)          53,107,940  240,787,219

Cumulative dividends paid at 30 June 2023 were unchanged at 174.9 pence per
ordinary share (31 March 2023: 174.9 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 2023                157.0            83.7
 Increase in portfolio value  0.6           0.3
 Net operating costs          (0.2)         (0.1)
                              0.4           0.2
 Issue/buy-back of shares*    44.0          (0.2)
 Total Return in the period          44.4             -
 NAV at 30 June 2023                 201.4            83.7

 

* The allotment of shares from the 2022/23 fundraising reduced total return
per ordinary share as the fundraising was priced at the last reported NAV at
the time of the allotment of 82.8 pence per ordinary share, being the NAV as
at 31 December 2022 of 87.3 pence per ordinary share, adjusted for the special
interim dividend of 4.5 pence per ordinary share paid on 11 January 2023.

 

Post-period end, on 28 July 2023, a dividend of 2.0 pence per ordinary share
for the year ending 31 March 2024 was paid, resulting in a corresponding
reduction to the 30 June 2023 unaudited NAV, to 81.7 pence per ordinary share.

Dividends and shares in issue

On 4 April 2023, the Company allotted 53,559,905 shares following the close of
its 2022/23 fundraising.

Under its standing buyback authority, on 26 June 2023 the Company purchased
451,965 shares at 80.02 pence at a cost of £0.36 million. These shares are
held in treasury.

Subsequent to the quarter end, on 28 July 2023 the Company issued 1,270,231
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 242,057,450, with a further 22,459,730 shares held in treasury.

Net assets

Net assets at 30 June 2023 comprised the following:

                                     £000     % of net assets
 Unquoted investments at fair value  125,850  62.5
 Listed investment funds             3,745    1.9
 Cash and cash equivalents           69,854   34.7
 Other net assets                    1,993    0.9
 Net assets                          201,442  100.0

Investments

The investment portfolio at 30 June 2023 comprised:

                    Valuation  Cumulative valuation as a % of net assets

                    £000
 Matillion          24,886     12.4%
 Unbiased           10,511     17.6%
 Displayplan        8,829      22.0%
 Outpost            8,680      26.3%
 Wooshii            6,981      29.7%
 Elucidat           6,226      32.8%
 Force24            4,758      35.2%
 Vypr               4,159      37.2%
 ACC Aviation       4,095      39.3%
 Quality Clouds     4,032      41.3%

                    83,157     41.3%
 Other investments  42,693     21.2%
 Total investments  125,850    62.5%

Portfolio performance

Over the quarter to 30 June 2023, the aggregate unquoted portfolio valuation
has increased by £0.8 million.

Fundraising

On 4 April 2023 the Company allotted shares from its fully subscribed 2022-23
share offer.  £44.4 million was raised by the Company, resulting in the
allotment of 53,559,905 ordinary shares.

On 2 August 2023, the Company announced its intention to launch a joint offer
for subscription for the 2023-24 tax year later this year, alongside British
Smaller Companies VCT2 plc.  A prospectus with full details of the proposed
Offer is expected to be published in mid-to-late September.

Outlook

Portfolio companies continue to show resilience in navigating a challenging
macro environment, charting a path that balances continued growth with a move
towards profitability.  While rising interest rates will slow economic
growth, a more capital constrained environment reduces competition and
alternative funding sources, providing opportunities for further deployment of
capital for the Company, in both new and existing portfolio companies.  In
this vein, the Company continues to see a healthy pipeline of opportunities in
which to invest in fast growing British businesses.

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.

13 September 2023

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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