REG - British Smaller Co's - 3rd Quarter Results

British Smaller Companies VCTAnnouncement

20/03/2023 15:00

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RNS Number : 5620T  British Smaller Companies VCT PLC  20 March 2023

British Smaller Companies VCT plc

Interim Management Statement

For the quarter ended 31 December 2022

British Smaller Companies VCT plc (the "Company") presents its interim
management statement for the quarter ended 31 December 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

In the quarter to 31 December 2022 the Company generated a Total Return of 4.3
pence per ordinary share, a 5.1 per cent increase on the net asset value (NAV)
at the beginning of the quarter of 85.0 pence per share. The Company is now
ranked first across all generalist VCTs when considering a blended average
performance ranking over 1, 3, 5 and 10 years.  Total Return is now 257.7
pence per share.

Performance

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

 

                                  30 September 2022  Increase in Value  Dividends paid/shares issued  Buyback of shares  Movement    31  December 2022

                                                                                                                         In Period
 Net Assets (£m)                  158.1              8.0                (2.8)                         (0.6)              4.6         162.7
 NAV per share (PPS)              85.0               4.3                (2.0)                         -                  2.3         87.3
 Cumulative dividends paid (PPS)  168.4              -                  2.0                           -                  2.0         170.4
 Total Return (PPS)               253.4              4.3                -                             -                  4.3         257.7
 Shares in issue                  186,112,757        -                  1,054,908                     (775,240)          279,668     186,392,425

The unaudited NAV per ordinary share increased in value by 4.3 pence; after
payment of 2.0 pence of dividends, NAV per ordinary share stood at 87.3 pence
per share at the period end. Cumulative dividends paid at 31 December 2022
were 170.4 pence per ordinary share (30 September 2022: 168.4 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 30 September 2022                  158.1            85.0
 Increase in portfolio value          7.5         4.0
 Net operating income                 0.5         0.3
                                      8.0         4.3
 Issue/buy-back of shares             0.3         -
 Total Return in the period                8.3              4.3
 NAV before the payment of dividends       166.4            89.3
 Dividends paid                            (3.7)            (2.0)
 NAV at 31 December 2022                   162.7            87.3

 

Post-period end, on 11 January 2023, a special dividend of 4.5 pence per
ordinary share for the year ending 31 March 2023 was paid, resulting in a
corresponding reduction to the 31 December 2022 unaudited NAV, to 82.8 pence
per ordinary share.

Net assets

Net assets at 31 December 2022 comprised the following:

                                     £000     % of net assets
 Unquoted investments at fair value  114,101  70.1
 Listed investment funds             4,269    2.6
 Cash and cash equivalents           42,687   26.3
 Other net assets                    1,599    1.0
 Net assets                          162,656  100.0

Investments

Over the quarter to 31 December 2022, the aggregate unquoted portfolio
valuation increased by £7.5 million.  In December 2022, the Company
completed the partial exit of its investment in planning and forecasting
software and services business, Vuealta, through the sale of its fast-growing
software division to long-standing partner, Anaplan. The sale generated
proceeds of £4.6 million, 1.5x cost, and an uplift of 45 per cent, or £1.4
million, on the carrying value at the beginning of the year (including further
investments made in the financial year prior to sale). The Company remains
invested in the core Vuealta consulting business to support its next phase of
growth.

During the quarter, the Company deployed £7.7 million into four new
investments: AutomatePro (automated software testing), Biorelate (data
curation software), Plandek (a software development analytics platform) and
Summize (digital contracting software).

A number of investments within the portfolio are seeking to extend or
accelerate their growth plans, which has resulted in further investment of
£4.5 million into four portfolio companies in the period, including £2.7
million into Unbiased, to help the company's overseas expansion plans.

Subsequent to the period end, a further £3.6 million has also been invested
into new investment DrDoctor, a patient engagement and communications software
platform, taking the total invested so far this year to £24.2 million,
following the £9.7 million invested in the full year to 31 March 2022.

 

The investment portfolio at 31 December 2022 comprised:

                                       Valuation  Cumulative valuation as a % of net assets

                                       £000
 Matillion Limited                     25,895     15.9%
 Outpost VFX Limited                   9,302      21.6%
 Unbiased EC1 Limited                  9,107      27.2%
 Displayplan Holdings Limited          7,630      31.9%
 Wooshii Limited                       6,296      35.8%
 Elucidat Ltd                          6,058      39.5%
 ACC Aviation Group Limited            5,340      42.8%
 Force24 Ltd                           4,636      45.7%
 Vypr Validation Technologies Limited  3,897      48.1%
 SharpCloud Software Limited           3,763      50.4%

                                       81,924     50.4%
 Other investments                     32,177     70.1%
 Total investments                     114,101    70.1%

Investments made since November 2015 represented 84 per cent of the value of
the unquoted portfolio at 31 December 2022.

Shares in issue

The Company issued 1,054,908 ordinary shares under the Company's Dividend
Re-investment Scheme (DRIS) following the payment of the interim dividend on 3
October 2022.

Under its standing buyback authority, on 16 December 2022 the Company
purchased 775,240 shares at 75.08 pence at a cost of £0.58 million. These
shares are held in treasury.

Subsequent to the quarter end, on 11 January 2023 the Company issued 2,507,454
shares under the DRIS following the payment of a special dividend, taking the
number of shares in issue at that date to 188,899,879, with a further
20,787,165 shares held in treasury.

Fundraising

On 30 November 2022, the Company announced a new share offer, alongside
British Smaller Companies VCT2 plc, with the intention of raising up to £75
million in aggregate, which included an over-allotment facility of £25
million. Gross Applications exceeding £62.5 million have been received as at
the date of this report, of which £39 million relate to the Company. The
related allotment will take place in early April 2023.

Outlook

The positive performance of the portfolio in the quarter is pleasing in what
remains a tough economic environment.  Portfolio companies continue to show
great resilience, with key investments demonstrating robust revenue growth.

We thank both existing and new shareholders for their support of the Company's
current fundraising.  We are continuing to see promising new investment
prospects, as well as opportunities to deploy funds into the existing
portfolio to help them accelerate their growth plans.  We look forward to
updating investors on our progress in investing the funds raised in the coming
quarters.

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 March 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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