BARONSMEAD VCT PLC 
By
Baronsmead VCT plc
Interim Management Statement
For the 3 month period from 1 October 2013 to 31 December 2013.
Headlines
* £11.9 million realised from the sale of investments
* Interim dividend of 6p per share payable on 7 March 2014
* £3.8 million invested in 5 new and 4 follow-on investments
Performance Summary
Capital return As at As at Movement
31 December 30 September
2013 2013
Total net assets £74.69m £71.71m
Net asset value 80.84p 77.36p 4.5%
per share
Share price 76.25p 72.75p 4.8%
Discount to NAV (5.7%) (6.0%)
Total return 3 months 1 year (%) 5 years 10 years Since launch
(%) (%) (%) (%)
Net asset value(1) 4.5 16.0 70.6 112.9 226.0
Key:
(1) NAV total return = NAV + reinvested dividends; Source: ISIS EP LLP
These total returns are stated before the inclusion of VCT tax
reliefs which are designed to mitigate the higher risks and costs associated
with investing in smaller companies and the constraints of the VCT legislation.
The tax reliefs given at the time of subscription have varied between 20% and
40%, so any adjusted performance measure including this relief will vary
depending on the date of subscription. There is also the additional benefit of
receiving VCT dividends tax free.
Investment Performance
In the three months to 31 December 2013, Baronsmead VCT's net asset value per
share increased by 4.5%. Over the quarter, the unquoted portfolio valuation
decreased by 5%, the quoted portfolio increased by 15% and Wood Street Microcap
Fund increased by 14%.
The Company's net assets as at 31 December 2013 were £74.7 million. This figure
takes into account the valuation of the Company's investments as at 31 December
2013.
Top Ten Investments
Position at Position at Company Percentage of NAV
31 December 30 September as at 31 December
2013 2013 2013
1 2 Nexus Vehicle Holdings Limited 6.2
2 3 Staffline Group plc 4.2
3 7 Netcall plc 3.8
4 6 Crew Clothing Holdings Limited 3.1
5 8 Inspired Thinking Group Limited 2.8
6 10 Valldata Group Limited 2.3
7 14 Tasty plc 2.2
8 11 Independent Community Care 2.1
Management Limited
9 17 Create Health Limited 1.9
10 12 Driver Group Plc 1.8
Total 30.4
Analysis of Total Assets
Percentage of Percentage of
total assets at total assets at
31 December 2013 30 September 2013
Unquoted investments 38 51
AIM, listed and ISDX 36 31
Wood Street Microcap Investment 9 9
Fund
Listed interest bearing 6 4
securities
Net current assets 11 5
Total liquid assets 17 9
Total assets 100 100
Analysis of Investment Portfolio by Sector
(excluding cash and interest bearing securities)
Percentage of Percentage of
total investments total investments at
at 31 December 2013 30 September 2013
Business Services 46 41
Consumer Markets 14 16
Financial Services 2 2
Healthcare & Education 15 12
Technology, Media & 23 29
Telecommunications
Total 100 100
Investment Activity
In the three months to 31 December 2013, Baronsmead VCT invested approximately
£3.8 million in 5 new and 4 follow on investments as set out in the table
below.
Investments made Date Cost (£'000)
CableCom II Networking Holdings Limited Oct 2013 1,250
Carousel Logistics Limited Oct 2013 955
Sanderson Group plc* Oct 2013 225
Tasty plc* Oct 2013 125
Crew Clothing Holdings Limited* Nov 2013 110
Daily Internet plc Nov 2013 225
Everyman Media Group plc Nov 2013 391
Plastics Capital plc* Nov 2013 189
MartinCo plc Dec 2013 343
Total investments 3,813
*Follow on investments
Realisations
In the three months to 31 December 2013, Baronsmead VCT realised total proceeds
of £11.9 million from the sale of three unquoted and one quoted investments.
Details are set out in the table below.
Realisations
Company Date Cost Proceeds Multiple*
(£'000) (£'000)
CableCom Networking Holdings Oct 2013 1,381 5,748 4.8
Limited
CSC (World) Limited Nov 2013 1,606 3,115 2.4
Proactis Holdings plc Nov 2013 619 621 1.1
Kafevend Holdings Limited Dec 2013 1,252 2,429 2.5
Total realisations 4,858 11,913
*Includes interest/dividends received, loan note redemptions and partial
realisations accounted for in prior periods.
Dividend Declaration
Following recent profitable sales of investments, the Directors have declared
an interim dividend of 6.0p per share with respect to the year to 30 September
2014. The dividend will be paid on 7 March 2014 to shareholders on the register
as of 21 February 2014. It is the board's current expectation that this interim
dividend will be in lieu of the dividend that would normally be declared on the
publication of the Company's results for the six months to 31 March 2014. This
pays the dividend to the Company's existing shareholders who benefit from the
returns realised in 2013 prior to new shares being allotted with respect to
subscriptions to the Company's fundraising.
Net Asset Value as at 31 January 2014
The net asset value as at 31 January 2014 was 81.62 per share. This is stated
before taking into account the 2014 interim dividend of 6.0p per share payable
on 7 March 2014.
Fundraising Update
The Company published an offer for subscription to raise £10.0m, before costs,
on 22 January 2014 which became fully subscribed on 3 February 2014. As the new
shares with respect to this fundraising are expected to be allotted on or
around 14 March 2014, the new shares will not be eligible to receive the
dividend payable on 7 March 2014.
Investment Objective
Baronsmead VCT is a tax efficient listed company which aims to achieve
long-term investment returns for private investors, including tax free
dividends.
Events after the Period End
A new investment of £952,000 was made in Kingsbridge Risk Solutions Ltd on 10
January 2014.
Other than the events described above, the Board is not aware of any
significant events or transactions which have occurred between 31 December 2013
and the date of publication of this statement which would have a material
impact on the financial position of the Company.
Further Information
Further information regarding the Company, including net asset values published
since the end of the period and quarterly factsheets, can be found at the
Company's website www.baronsmeadvct.co.uk
Contact
For further information please contact the Company's Investment Manager, ISIS
EP LLP as follows:
Email: baronsmeadvcts@isisep.com
Telephone: 020 7506 5717
Facsimile: 020 7506 5718
Post: 100 Wood Street,
