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

British Smaller Companies VCTAnnouncement

18/03/2025 13:00

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RNS Number : 1531B  British Smaller Companies VCT PLC  18 March 2025

British Smaller Companies VCT plc

Interim Management Statement

For the quarter ended 31 December 2024

British Smaller Companies VCT plc (the "Company") presents its interim
management statement for the quarter ended 31 December 2024. 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 2024 the Company's Total Return per share rose
by 1.7 pence, or 2.1 per cent of the opening NAV, prior to the payment of an
interim dividend of 2.0 pence on 20 December 2024.  At 31 December 2024 the
NAV per ordinary share totalled 81.5 pence (adjusted to 80.25 pence per
ordinary share following the payment of a 1.25 pence special dividend for the
year ending 31 March 2025 on 27 January 2025).

The Company's Total Return at 31 December 2024 was up 1.7 pence, to 264.4
pence per ordinary share.

During the quarter, the Company invested £0.5 million into existing portfolio
companies Wooshii and Relative Insight. Subsequent to the quarter end, the
Company invested £2.1 million into new investment Stormharvester, an AI
analytics platform for wastewater utilities, and 4.2 million into portfolio
companies DrDoctor and Vypr, taking the total amount invested so far this
financial year to £27.2 million.

In October 2024 the Company sold its investment in Traveltek for £3.2
million. Total proceeds over the life of the investment are £4.3 million, a
2.5x return on the Company's cost. There is the potential for further deferred
proceeds in due course, with £0.7 million of deferred proceeds recognised at
the period-end.

Subsequent to the year-end, in February 2025 the Company realised its
investment in ACC Aviation, receiving £4.7 million in initial proceeds, with
additional deferred consideration of £2.3 million anticipated to be received
over the next two to four years.  Including the deferred consideration, the
ACC investment has generated an overall return of £12.3 million, a 5.9x
return on the original cost of £2.1 million.

Performance

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

 

                                  30 September 2024  Increase in Value  Dividends paid  Issue/buy-back of shares  Movement    31 December 2024

                                                                                                                  in period
 Net Assets (£m)                  246.8              5.2                (6.0)           (0.5)                     (1.3)       245.5
 NAV per share (PPS)              81.8               1.7                (2.0)           -                         (0.3)       81.5
 Cumulative dividends paid (PPS)  180.9              -                  2.0             -                         2.0         182.9
 Total Return (PPS)               262.7              1.7                -               -                         1.7         264.4
 Shares in issue                  301,891,749        -                  -               (589,033)                 (589,033)   301,302,716

Cumulative dividends paid at 31 December 2024 were 182.9 pence per ordinary
share (30 September 2024: 180.9 pence per ordinary share). Following the
payment of the special dividend of 1.25 pence per ordinary share 0n 27 January
2025, cumulative dividends paid are now 184.15 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 2024            246.8            81.8
 Increase in portfolio value  5.1           1.7
 Net operating income         0.1           -
                              5.2           1.7
 Issue/buy-back of shares     (0.5)         -
 Total Return in the period          4.7              1.7
 NAV before dividends                251.5            83.5
 Dividends paid                      (6.0)            (2.0)
 NAV at 31 December 2024             245.5            81.5

 

Shares in issue

Under its standing buy-back authority, on 16 December 2024 the Company
purchased 1,953,882 shares at 76.31 pence per share at a cost of £1.5
million. These shares are held in treasury.

On 20 December 2024 the Company issued 1,364,849 shares under the Company's
Dividend Re-investment Scheme (DRIS).

On 27 January 2025 the Company issued 875,031 shares under the Company's DRIS.

On 30 January 2025 the Company issued 18,882,044 shares in relation to its
2024/25 fundraising, following which the Company's issued share capital
consists of 321,059,791 ordinary shares with voting rights and 32,317,862
shares held in treasury.

Net assets

Net assets at 31 December 2024 comprised the following:

                                     £000     % of net assets
 Unquoted investments at fair value  149,307  60.8
 Cash and money market funds         92,928   37.8
 Other net assets                    3,314    1.4
 Net assets                          245,549  100.0

Investments

The investment portfolio at 31 December 2024 comprised:

                    Valuation  Cumulative valuation as a % of net assets

                    £000
 Matillion          23,231     9.5
 Unbiased           13,442     14.9
 Xapien             7,698      18.1
 Outpost            7,587      21.2
 SharpCloud         7,183      24.1
 Vypr               6,712      26.8
 Force24            6,496      29.5
 ACC Aviation       6,399      32.1
 AutomatePro        6,379      34.7
 Quality Clouds     6,177      37.2
                    91,304     37.2
 Other investments  58,003     60.8
 Total investments  149,307    60.8

Portfolio performance

Over the quarter to 31 December 2024, the aggregate unquoted portfolio
valuation increased by £5.1 million, reflecting good levels of underlying
revenue growth in portfolio companies, as well as an improvement in valuation
multiples during the quarter.

Fundraising

The Company announced a new share offer on 17 October 2024, 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, in
aggregate. The offers closed to new Applications on 8 January 2025. Gross
Applications of £75 million have been received, of which c.£46 million
relate to the Company. The first allotment of £25 million (£15.2 million
relating to the Company) took place on 30 January 2025; the second and final
allotment will take place between 1 and 4 April 2025.

Outlook

Despite increased geopolitical uncertainty and tariff threats from a change in
government in the US, and subdued business confidence in the UK, there has
been promising growth from portfolio companies in the quarter, driven by
increases in underlying revenue and market multiples.

January's first allotment of funds arising from the 2024/25 fundraising, and
the further allotment to follow in April, positions the Company well to
continue to expand the portfolio, as well as support existing portfolio
companies to continue their promising growth.

We thank shareholders for their continued support.

 

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.

18 March 2025

For further information please contact:

Marcus Karia           YFM Equity Partners
 
        Tel:  0113 244 1000

Alex Collins              Panmure Liberum
 
Tel:  0207 886 2767

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