british smaller companies vct plc (bsc) investor...

Past performance is no guide to future performance and the value of an investment in British Smaller Companies VCT plc may go down as well as upand you may not get back the full amount invested.

British Smaller Companies VCT plc (BSC)

INVESTOR UPDATE February 2017

BSC has again delivered a robust performance this quarter, withportfolio growth in the period helping to deliver a NAV per shareincrease of 1.5%. At 30 June total return stood at 210.2 pence pershare, with NAV per share at 101.5 pence and cumulative dividends at108.7 pence per share.

Following the AGM on 27 July a final dividend for last year of 3.5 pencehas been paid as has a first interim dividend for the current year of 2.0 pence per share. This brings cumulative dividends to 114.2 penceper share.

Although the new VCT legislation came into force in November lastyear, HMRC’s guidance was only issued in May, with the result thatgetting the necessary advance assurances on new investments hasbeen slower than I think everyone would have liked. Despite this it ispleasing that we have now completed our first investment under thenew rules; advance assurances have been received for a further twopotential investments and application for a fourth is underway. It ishoped that approvals will be issued more quickly as everyone getsused to working with the new guidelines.

It will be some time before we know the real impact of the vote toleave the European Union on BSC’s ability to make new investments,realise existing investments and on its current portfolio and yourBoard will keep this under constant review.

We completed an investment of £1.35 million into Hosted NetworkServices Limited (trading as Sipsynergy) on 30 June. Sipsynergy,based in Hertfordshire, is a market leading cloud collaborationsolutions provider to SMEs. Sipsynergy has worked closely withtechnology firm Cisco to create a solution which is sold on a whitelabel basis through IT and telecoms resellers and managed serviceproviders. The funding will support Sipsynergy’s growth strategythrough the expansion of its sales and support teams.

We know that there were many more of you who wanted to take uplast year’s fundraising offer than could be catered for. Re-investingdividends can be a good way of investing further in venture capitaltrusts. Currently just under 25% of you choose to re-invest your dividends.

Any DRIS investment does attract income tax relief at the rate of 30%and additionally in the case of BSC’s scheme, the investment is madeat a 5% discount to the last reported NAV. If you are interested insigning up for the DRIS, more details of this can be found on page 3.

The Government has recently introduced legislation enacting the CRS,which requires companies to report to HMRC on shareholders basedoutside the UK and the Company’s Registrar has started writing toshareholders impacted by this to confirm their details. Applicants forfuture fundraisings will be required to provide their taxpayer referencenumbers and their country of residence for tax purposes.

The latest Investor Workshop was held on 17 May and, with over 200present, I was pleased that so many of you were able to attend. BSCalso recently held its Annual General Meeting. This is a much smaller,more formal affair but it was pleasing to see a number of you attendand contribute to the event. As ever, we do really value your feedback,so if there was anything you would like to see added to the Workshops,this Update or any other communication you receive from us please dolet us know.

Thank you again for your continued support of BSC.

David Hall

Managing Director

YFM Equity Partners

British Smaller Companies VCT plc (BSC)

LeedsLondonManchesterBirminghamSheffield

Transforming small businesseswww.bscfunds.com

INVESTOR UPDATE Summer 2016

Overview

DIVIDENDS PAID

Total dividends (pps)Ordinary dividends (pps) Special dividends (pps)

2012 2013 2014 2015 2016 30 June 2016

* Based on the average dividend paid over 5 years to 30 June 2016 expressed as a percentage ofthe last reported NAV (30 June 2016)

23.0

5.06.5

8.010.0

Representing anaverage cash yield of

10.3% over 5 years*

1.0

5.0 5.0 5.5

2.5

5.5 5.5

4.5

18.0

** Adjusted for the 5.5 pence dividends paid on 5 August 2016

TOTAL RETURN

Dear ShareholderI would like to welcome you to the Summer 2016 edition of the BSC Investor Update.

Year ended 31 March unless stated

CommunicationsBrexit

New investment

Dividend Re-investment Scheme (“DRIS”)

Common Reporting Standards (“CRS”)

10.0

5.5

4.5

Past performance is no guide to future performance and the value of an investment in British Smaller Companies VCT plc may go down as well as up and you maynot get back the full amount invested.

Total return (pps)Cumulative dividends (pps)NAV (pps)

178.8 181.2192.7 197.5 208.7

102.0

90.7

99.6 98.8

98.779.2 84.2

97.0

108.7

As at 31 March unless otherwise stated

2012 2013 2014 2015 2016 30 June 2016**

210.2

96.0

114.2

100.0

Dear ShareholderI would like to welcome you to the February 2017 edition of the BSC Investor Update.

Transforming small businesseswww.bscfunds.com

LeedsLondonManchesterBirminghamSheffield

It is pleasing to see investment rates are resuming after a hiatus whilst VCTs adjusted to the new State Aid led rules. Whilst there still remains a degree of uncertainty about some aspects of transactions and HMRC’s approach, we hope that investment rates now being seen are maintained over the coming months and years. The recent macro-economic and political turbulence has to date had little impact on the portfolio. Whilst the immediate movements in exchange rates has had both positive and negative influences on some of our investee companies, the overall impact has been broadly neutral. This has translated in the period to a net overall increase in total return.

The sale of the residual investment in GO Outdoors was particularly pleasing and as a result, shortly after the period end, the Company was able to increase its interim dividend by 14.5 pence per share to 16.5 pence per share.

Overview

Three new investments were completed in the period totalling £5.1million; these were Matillion, B2M and Traveltek.

It is encouraging to see the developing pipeline of further investment opportunities. The new VCT rules have changed the nature of the businesses that the Company can invest in, with new investments often needing to reinvest profits to fund growth. The most recent investments have consisted mainly of equity, rather than yielding debt instruments, and this is likely to be the norm going forwards. While the existing investments should provide a reliable income stream until their realisation, future returns will be more reliant on equity realisations which may mean a more volatile dividend stream for investors.

New investment

Shareholder workshop

I am pleased to announce that your Company will be hosting the next Investor Workshop with British Smaller Companies VCT2 plc on 3 May 2017 at The Grand Connaught Rooms in Covent Garden, London. Further details are available on page 3 of this Update. Shareholders wishing to attend can contact Tracey Nice on 0113 261 6478 or [email protected] or can complete and return the acceptance slip accompanying this Update.

Proxy voting

Our AGM is likely to be in July 2017. Many more shareholders now elect to receive communications by email, and possibly this is why the number of shareholders who submit their proxy vote ahead of the AGM has fallen by 40 per cent. We want to encourage voting and so when we post out the Annual Report and Accounts, we will include detailed instructions as to how you can vote online, regardless of your communication preference. Those of you receiving postal documentation will still be able to post a hard copy of the proxy form back, and this will be available to download and print for any shareholders who do not wish to use the online facility.

Communications

As ever, we value your feedback, so if there is anything you would like to see added to this Update, our workshops or any other communication you receive from us please do let us know.

The outlook for 2017 will continue to create macro-economic challenges and political uncertainty. However investing in businesses focused on growth sectors and holding a medium term perspective for returns, we believe prospects for investment remain good.

Thank you again for your continued support of BSC.

will only accept payment by cheque and will only present cheques for successful subscriptions once the ballot has concluded. Banker’s drafts and electronic payments will not be accepted. Multiple subscriptions will not be accepted and will be rejected in their entirety.

David Hall Managing Director, YFM Equity Partners

Total return (pps)Cumulative dividends (pps)NAV (pps)

178.8 181.2192.7 197.5

208.7 212.8

2012As at 31 March unless otherwise stated

2013 2014 2015 2016 31 Dec 2016

99.6 97.0 102.0 98.8 100.0 98.6

79.2 84.2 90.7 98.7 108.7 114.2

Total dividends (pps)Special dividends (pps)Ordinary dividends (pps)

23.0

5.06.5

8.010.0

5.5

2012Year ended 31 March unless otherwise stated

2013 2014 2015 2016 31 Dec 2016

5.0 5.0 5.5 5.5 5.5 3.5

18.0

1.0 2.54.5

2.0

* Based on the average dividend paid over 5 years to 31 December 2016 expressed as a percentage of the last reported NAV (31 December 2016)

Representing an average cash yield of 7.5% over 5 years*

On 10 February 2017, BSC launched a non-prospectus top-up to raise €5 million. The offer documents are available on BSC’s website, www.bscfunds.com, as well as being posted to all shareholders. The offer will be available exclusively to existing shareholders until 6 March 2017. If fully subscribed at that date shares will be allotted by way of a ballot. All subscriptions will have to be made by post (or hand-delivered). BSC

Fundraising

TOTAL RETURNDIVIDENDS PAID

BF_011_YFM 4pp_v8_FINAL.indd 1 10/02/2017 09:47

INVESTOR UPDATEFebruary 2017BRITISH SMALLER COMPANIES VCT PLC

Ordinary shares

Quoted companies

Preference shares

Loan

Value below cost

Quoted companies

At cost

Value above cost }54%

L

L

P

P

8%

19%

36%

8%

29%

50%19%

20%11%

63%

22%

11%4% 4%

42%

Industry Sector

Age of Investment

Business Services

Manufacturing and Industrial

Healthcare

Software, IT and Telecommunications

Retail and Brands

Less than 1 year

Between 1 and 3 years


Greater than 5 years

InvestmentInstrument

Value Compared

to Cost

Data source: Based on BSC Valuations at 31 December 2016

PORTFOLIO AT A GLANCE

Ordinary shares

Quoted companies

Preference shares

Loan

Value below cost

Quoted companies

At cost


L

L

P

P

8%

19%

36%

8%

29%

50%19%

20%11%

63%

22%

11%4% 4%

42%

Industry Sector

Age of Investment

Business Services


Healthcare


Retail and Brands

Less than 1 year





Value Compared

to Cost

Ordinary shares

Quoted companies

Preference shares

Loan

Value below cost

Quoted companies

At cost


L

L

P

P

8%

19%

36%

8%

29%

50%19%

20%11%

63%

22%

11%4% 4%

42%

Industry Sector

Age of Investment

Business Services


Healthcare


Retail and Brands

Less than 1 year





Value Compared

to Cost

Ordinary shares

Quoted companies

Preference shares

Loan

Value below cost

Quoted companies

At cost


L

L

P

P

8%

19%

36%

8%

29%

50%19%

20%11%

63%

22%

11%4% 4%

42%

Industry Sector

Age of Investment

Business Services


Healthcare


Retail and Brands

Less than 1 year





Value Compared

to Cost

FINANCIAL HIGHLIGHTS

Total Return (at 31 March 2016) 208.7

Years 1 3 5 10

Net Asset Value - “NAV” at start of period* 98.8 97.0 120.0 97.5

NAV at 31 March 2016* 100.0 100.0 100.0 100.0

Dividends paid in period to 31 March 2016* 10.0 24.5 52.5 78.3

Total Return in period to 31 March 2016* 110.0 124.5 152.5 178.3

Total Growth (%) 11.3% 28.4% 27.1% 82.9%

Investment Rate of Return (%) 11.9% 9.6% 6.4% 8.1%

* Excludes all tax relief - Pence per share


We have included here a table which demonstrates the total return growth per annum of the Company over the 1, 3, 5 and 10 year periods to 31 March 2016.

GO OUTDOORS

“I would like to personally thank YFM for their active involvement, strategic advice and continued support which, in partnership with our exiting founders John Graham and Paul Caplan, has helped to grow GO Outdoors into the UK’s largest outdoor retailer.”

Chris Matthews, Chief Executive, GO Outdoors

Selling everything for the outdoors under one roof

Innovative approach to market selling through out-of-town superstores with a paid-for discount card

The business

Backing a serial entrepreneur and high energy CEO

Once proven, to roll out this exciting store concept across the UK

The strategy

Rollout from 1 to over 50 stores, making GO Outdoors the market leader in outdoor clothing and equipment

Turnover increased from £2 million to over £200 million

Fully realised through a £130 million sale to JD Sports Fashion plc

BSC achieved 37.2x the original investment, with a £23 million total return

The developments

All figures pence per share



INVESTOR WORKSHOP 2017 We are delighted to announce that the next Investor Workshop will take place at the Grand Connaught Rooms, 61-65 Great Queen Street, Covent Garden, London WC2B 5DA on Wednesday 3 May 2017.Located in London’s vibrant Covent Garden, the Grand Connaught Rooms has a history dating back over 200 years and YFM’s first ever Investor Workshop was held here in March 2003, some 14 years ago!

Your acceptance slip and envelope (FREEPOST YFM) are included in the same envelope as this Investor Update, or if you prefer you can let Tracey Nice know by calling 0113 261 6478 or emailing [email protected] Please note, if you are also a shareholder in British Smaller Companies VCT2 plc you may have already returned your acceptance slip and there is no need to do so again.


PORTFOLIO UPDATE

THE GRAND CONNAUGHT ROOMS

In the three months to 31 December 2016 the investment portfolio (after netting off additions and proceeds), grew in value by £3.86 million.The unquoted portfolio which comprised 96% of the total portfolio decreased by £5.81 million, with a value gain of £3.65 million after netting off additional investment of £5.16 million offset by loan repayments of £0.49 million and the proceeds from the realisation of GO Outdoors (£14.13 million). The Top 10 investments (excluding GO Outdoors) performed well with a value gain in the quarter of £0.62 million. The quoted portfolio saw a value gain of £0.21 million in the quarter.

Investmentvaluation at

30 September2016£000

Proceeds£000

Additions£000

Valuation gains (losses)

includingprofits on

disposal£000

Investmentvaluation at

31 December2016£000

% of netasset value

of £95.4mCompany Website

ACC Aviation (via NewAcc (2014) Limited)

Intelligent Office (via IO Outsourcing Limited)

DisplayPlan Holdings Limited

Mangar Health Limited

Business Collaborator Limited

Springboard Research Holdings Limited

GTK (Holdco) Limited

Gill Marine Holdings Limited

Leengate Holdings Limited

Matillion Limited

Top 10 total

GO Outdoors TopCo Limited

Remainder of unquoted portfolio

Total unquoted portfolio

Quoted portfolio

Total portfolio

flyacc.com

intelligentofficeuk.com

displayplan.com

mangar.co.uk

groupbc.com

spring-board.info

gtk.co.uk

gillmarine.com

leengatevalves.co.uk

matillion.com

4,262 – – 951 5,213 5.5%

4,676 – – (250) 4,426 4.6%

3,768 – – (26) 3,742 3.9%

3,739 – – (10) 3,729 3.9%

2,591 – – 24 2,615 2.7%

2,469 – 89 1 2,559 2.7%

2,968 (414) – (8) 2,546 2.7%

2,250 – – 9 2,259 2.4%

2,187 – – (75) 2,112 2.2%

– – 2,100 0 2,100 2.2%

28,910 (414) 2,189 616 31,301 32.8%

11,319 (14,134) – 2,815 – –

19,875 (71) 2,970 216 22,990 24.1%

60,104 (14,619) 5,159 3,647 54,291 56.9%

2,568 (371) – 212 2,409 2.5%

62,672 (14,990) 5,159 3,859 56,700 59.4%


CONTACT US

For further information, includinghow to register for emailcommunications please callor email.

Tracey NiceInvestment Services Manager

T: 0113 261 6478E: [email protected]: bscfunds.com

bscfunds.com Transforming small businesses


INVESTOR UPDATESummer 2016BRITISH SMALLER COMPANIES VCT PLC

bscfunds.com Transforming small businesses

End of First

Quarter

Half Year End

Year End

November 2016Half year resultsannounced

30 Jun2016

30 Sep2016

31 Mar2017

The table below displays the dates when BSC dividends have been paid and we hope you find it useful in keeping and checking your records.

FOR YOUR RECORDS – DIVIDENDS PAID AND DATE

For further information, including how to register for email communications please call or email.

Tracey Nice Investment Services Manager

T: 0113 261 6478 E: [email protected] W: bscfunds.com

CONTACT US

KEY DATES

IMPORTANT NOTICE

Past performance is no guideto future performance and thevalue of an investment inBritish Smaller Companies VCTplc (“the Company”) may godown as well as up and youmay not get back the fullamount invested. Aninvestment in a VCT is higherrisk than investing in othersecurities listed on the LondonStock Exchange official list. Youshould regard an investment inthe Company as a higher risk,long term investment. TheCompany invests in mostlyunquoted companies which aresmall and which by their naturecarry a heightened level of risk.

In the past there has beenlimited liquidity in VCT shareslisted on the London StockExchange. It may therefore bedifficult to realise shares in theCompany in the future and theshare price may not reflect theunderlying net asset value.

Tax rules and regulations canchange over time and the taxreliefs available are dependenton the Company maintainingHM Revenue & Customsapproval, on individualcircumstances and on investorsretaining their shares for a fiveyear period. We recommendthat you seek independentfinancial advice from anappropriately authorised

independent financial adviseras to whether an investment inthe Company is suitable foryou, as well as your personalentitlement to tax reliefsassociated with any share offerby the Company.

This Investor Update is not anoffer to invest in the Company.It is an advertisement and isnot a prospectus.

This Investor Update has beenissued and approved for thepurposes of Section 21 of theFinancial Services and MarketsAct 2000 by YFM Private EquityLimited (“YFM”), which isauthorised and regulated bythe Financial Conduct Authority

(FRN: 122120). YFM is theInvestment Adviser to theCompany.

YFM Private Equity Limited isultimately owned by YFM EquityPartners LLP which isregistered in England andWales No: OC384467.Registered Office: 5th Floor,Valiant Building, 14 SouthParade, Leeds LS1 5QS.

End of Third

Quarter

31 Dec2016

October 2016Buy back closed from1 October 2016 untilhalf year resultsannounced

Date paid Pence per share

Cumulative to 31 March 2005 26.75

5 August 2005 2.20

10 January 2006 1.50

11 August 2006 3.00

6 November 2006 1.50

8 August 2007 3.00

16 November 2007 2.00

8 August 2008 3.00

11 February 2009 2.00

13 August 2009 3.00

7 January 2010 2.00

28 September 2010 4.25

7 January 2011 2.00

22 August 2011 18.00

22 August 2011 3.00

20 January 2012 2.00

17 August 2012 3.00

14 January 2013 2.00

13 August 2013 4.50

21 March 2014 2.00

1 August 2014 3.50

7 January 2015 2.00

3 March 2015 2.50

4 August 2015 3.50


15 January 2016 2.00

11 March 2016 1.00

Cumulative at 30 June 2016 108.70

5 August 2016 3.50

5 August 2016 2.00

Date paid Pence per share Date paid Pence per share

28 July 2016First quarter resultsannounced

27 July 2016Annual General Meeting

February 2017Third quarter resultsannounced

KEY DATES

FOR YOUR RECORDS - DIVIDENDS PAID AND DATE

End ofThird

QuarterYearEnd

End ofFirst

Quarter

HalfYearEnd

31 Dec2016

31 Mar2017

30 Jun2017

30 Sep2017

January 2017Interim dividend 16.5 pence

February 2017Third quarter resultsFundraising opens

April 2017Buy back closed from 1 April 2017 until year end results announced

May 2017Investor workshop

June 2017Year end results announced

July 2017Annual General MeetingResults for first quarter announced


Cumulative to 31 March 2006 30.45

11 August 2006 3.00

6 November 2006 1.50

8 August 2007 3.00

16 November 2007 2.00

8 August 2008 3.00

11 February 2009 2.00

13 August 2009 3.00

7 January 2010 2.00



7 January 2011 2.00

22 August 2011 18.00

22 August 2011 3.00

20 January 2012 2.00

17 August 2012 3.00

14 January 2013 2.00

13 August 2013 4.50

21 March 2014 2.00

1 August 2014 3.50

7 January 2015 2.00

3 March 2015 2.50

4 August 2015 3.50


15 January 2016 2.00

11 March 2016 1.00

5 August 2016 3.50

5 August 2016 2.00

Cumulative to 31 December 2016 114.2

18 January 2017 16.5


The table below displays the dates when BSC dividends have been paid and we hope you find it useful in keeping and checking your records.


british smaller companies vct plc (bsc) investor...

Documents