31st Jan 2014 12:50
LONDON (Alliance News) - British Smaller Companies VCT PLC Friday said its total return grew over the the third quarter as its unquoted portfolio made gains on the back strong trading results.
The total return at the end of December 2013, calculated by reference to the net asset value per ordinary share and the cumulative dividends paid, was 190.2 pence per share compared to 187.9 pence per share as of September 30 2013.
The company said its unaudited net asset value per share at the end of December was 101.5 pence compared to 99.2 pence per share at the start of the quarter, putting the rise down to an increase in the value of the unquoted companies it invests in.
"Over the 3 months to December 31 the portfolio saw an overall increase in unrealised valuations of GBP890,000, equating to a 3.0% increase on the opening value. This comprised an increase in the value of a number of the portfolio company's following strong trading results including GO Outdoors Limited, Seven Technology Limited, President Engineering Group Limited and Waterfall Services Limited," the company said in a statement.
The venture capitalist trust said it foresees increasing investment opportunities, with the venture capitalist trust earlier this month launching a joint offer with British Smaller Companies VCT2 PLC to raise up to GBP30 million.
In the third quarter, it made two new investments totalling GBP3.2 million. The first of those was made in October 2013, with GBP1.8 million invested into GTK (UK) Ltd, a provider and manufacturer of electronic components. That was followed by December's GBP1.4 million investment in Leengate Valves Ltd, a specialist wholesaler and distributor of industrial valves.
"Good progress continues to be made across the company's investment portfolio and there is currently a strong pipeline of new investment opportunities to support management teams with growth strategies or looking to lead management buy-outs," the company added.
Venture Capitalist Trusts, which invest in very small companies looking for further investment to help develop their business, have attracted investor appetite of late as the hunt for a yield and the beneficial tax arrangements around VCTs gain traction.
According to the Association of Investment Companies, the average VCT is up 8%, 24%, 53% and 89% over one, three, five and ten years in share price total return terms, respectively, with 73% of VCTs yielding over 5% last year.
British Smaller Companies VCT shares were Friday quoted at 91.00 pence, up 0.75 pence, or 0.8%.
By Samuel Agini; [email protected]; @samuelagini
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