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

British Smaller Companies VCTAnnouncement

12/09/2024 07:00

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RNS Number : 8053D  British Smaller Companies VCT PLC  12 September 2024

British Smaller Companies VCT plc

Interim Management Statement

For the quarter ended 30 June 2024

British Smaller Companies VCT plc (the "Company") presents its interim
management statement for the quarter ended 30 June 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

As previously announced on 20 August 2024, in the quarter to 30 June 2024 the
Company's Net Asset Value per share was down by 0.1 pence to 83.5 pence, with
promising progress and strong growth rates of a number of portfolio companies
moderated by company-specific circumstances in other businesses in the
portfolio.  The FTSE Small Cap Index rose by 5.3 per cent during the period.

The Company's Total Return at 30 June 2024 was down 0.1 pence, to 262.4 pence
per ordinary share.

During the quarter, the Company invested £6.8 million into three new
investments: Fuuse, Ohalo and Spotless Water; and invested a further £2.3
million into existing portfolio companies Plandek and Summize. Subsequent to
the quarter end, the Company has invested £8.8 million into four existing
portfolio companies: AutomatePro, SharpCloud, Quality Clouds and Xapien,
taking the total amount invested so far this year to £17.9 million.

The Company, alongside British Smaller Companies VCT2 plc, raised £90 million
in aggregate under the offers launched on 20 September 2023 in relation to the
2023/24 tax year. A total of £55.4 million was raised by the Company, of
which £18.6 million had been allotted on 30 January 2024 and £36.8 million
was allotted on 3 April 2024.

Performance

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

 

                                  31 March 2024  Decrease in Value  Shares issued  Buyback of shares  Movement    30 June 2024

                                                                                                      In Period
 Net Assets (£m)                  219.6          (0.4)              35.7           (2.4)              32.9        252.5
 NAV per share (PPS)              83.6           (0.1)              -              -                  (0.1)       83.5
 Cumulative dividends paid (PPS)  178.9          -                  -              -                  -           178.9
 Total Return (PPS)               262.5          (0.1)              -              -                  (0.1)       262.4
 Shares in issue                  262,659,361    -                  42,588,037     (2,972,034)        39,616,003  302,275,364

Cumulative dividends paid at 30 June 2024 were 178.9 pence per ordinary share
(31 March 2024: 178.9 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 2024                219.6            83.6
 Decrease in portfolio value  (0.9)         (0.3)
 Net operating income         0.5           0.2
                              (0.4)         (0.1)
 Issue/buy-back of shares     33.3          -
 Total Return in the period          32.9             (0.1)
 NAV at 30 June 2024                 252.5            83.5

 

Dividends and shares in issue

On 3 April 2024 the Company issued 42,588,037 shares in relation to the second
and final allotment from its 2023/24 fundraising.

Under its standing buyback authority, on 24 June 2024 the Company purchased
2,972,034 shares at 79.92 pence per share at a cost of £2.4 million. These
shares are held in treasury.

Post-period end, on 26 July 2024, a dividend of 2.0 pence per ordinary share
for the year ending 31 March 2025 was paid, resulting in a corresponding
reduction in the Company's NAV per ordinary share, adjusting the last reported
NAV to 81.5 pence per ordinary share. Cumulative dividends paid are now 180.9
pence per ordinary share.

On 26 July 2024 the Company issued 1,369,910 shares under the Company's
Dividend Re-investment Scheme (DRIS). following which the Company's issued
share capital consists of 303,645,274 ordinary shares with voting rights and
28,610,455 shares held in treasury.

Net assets

Net assets at 30 June 2024 comprised the following:

                                     £000     % of net assets
 Unquoted investments at fair value  134,734  53.4
 Cash and money market funds         114,097  45.2
 Other net assets                    3,664    1.4
 Net assets                          252,495  100.0

Investments

The investment portfolio at 30 June 2024 comprised:

                    Valuation  Cumulative valuation as a % of net assets

                    £000
 Matillion          24,076     9.5%
 Unbiased           13,889     15.0%
 Outpost            8,506      18.4%
 Elucidat           6,106      20.8%
 Vypr               5,947      23.2%
 Force24            5,781      25.5%
 SharpCloud         5,565      27.7%
 ACC Aviation       5,299      29.8%
 Plandek            4,043      31.4%
 Quality Clouds     3,930      32.9%
                    83,142     32.9%
 Other investments  51,592     53.4%
 Total investments  134,734    53.4%

Portfolio performance

Over the quarter to 30 June 2024, the aggregate unquoted portfolio valuation
has decreased by £0.9 million.

Fundraising

On 20 August 2024, the Company announced its intention to launch a new joint
offer for subscription for the tax year 2024/25 later this year, alongside
British Smaller Companies VCT2 plc (together the "Companies"). As announced on
10 September 2024, the current intention is for the Companies, in aggregate,
to raise up to £50 million, with over-allotment facilities of up to a further
£25 million in aggregate, before issue costs. Any election to make use of
their over-allotment facility will be subject to the decision of the
individual boards of the Companies at the relevant time.

 

A prospectus with full details of the proposed Offer is expected to be
published in mid-October, with applications expected to open one week
following publication. Once published, the prospectus will be available from
the Companies' website, www.bscfunds.com (http://www.bscfunds.com) .

Outlook

The UK economy is showing encouraging signs, with interest rates beginning to
come down from their recent highs after the CPI inflation rate reached the
Bank of England's 2.0 per cent target.  There is also the promise of greater
political stability following July's general election and a government agenda
focused on growth.

However, global uncertainty remains, with some market turbulence driven by
concerns over the US economy, as well as the outcome of the US election in
November.

In this environment, the Company is focused on accelerating the growth of its
most promising and fastest-growing assets, while also supporting companies
currently facing challenges.

There is an encouraging pipeline of new opportunities, and it is expected that
the portfolio will see further additions in the coming months.

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.

12 September 2024

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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