Acuity VCT 3 PLC : Interim Management Statement

 
TIDMAQT3 
 
Acuity VCT 3 plc 
Interim Management Statement for the Quarter Ended 30 September 2011 
 
Acuity VCT 3 plc presents its interim management statement for the quarter ended 
30 September  2011.  This  constitutes  the  company's  third interim management 
statement  for the financial period ending  30 November 2011, as required by the 
UK Listing Authority's Disclosure and Transparency Rule 4.3. 
 
The  unaudited net asset value (NAV) per Ordinary Share as at 30 September 2011 
was  22.7p (30  June  2011: 18.2p). The  Board  is  not aware of any significant 
events  or transactions between the date of  the NAV and the date of publication 
of this Interim Management Statement. 
 
Portfolio Review 
The  unaudited results for  the quarter to  30 September 2011 show a substantial 
increase of 24.7% in net asset value (NAV) per Ordinary Share to 22.7p per Share 
as  at  30 September  2011 from  18.2p per  Share  as  at 30 June 2011 (31 March 
2011: 18.6p per Share). 
 
This increase in NAV reflects increased valuations for Factory Media Limited and 
The  Fin Machine  Company Limited  based on  their improving  performances and a 
stable  performance  by  Defaqto  Limited  during  this  period.   However,  the 
valuation of Connect2 Media Limited was reduced as a result of its disappointing 
performance during the period. 
 
Since  June, when the results for the Half Year to 31 March 2011 were announced, 
the  overall performance of the portfolio has been relatively positive.  Factory 
Media continues to trade well, which is reflected in an increase in valuation of 
 GBP885,005.  The new management team at The Fin Machine have made good progress in 
turning   round  this  substantial  engineering  business,  which  is  similarly 
reflected  by an increased valuation of   GBP1,207,000.  Defaqto is trading in line 
with  budget  in  its  current  financial  year.   However,  a  relatively  poor 
performance by Connect2 Media has resulted in reduction in valuation of  GBP282,025 
since  30 June 2011.  A net  provision of  GBP92,415  has been made  for Acuity VCT 
3's share  of the costs  of the proposed  merger with Foresight 5 VCT, Foresight 
Clearwater and Foresight 4 VCT. 
 
As  a  result  of  poor  trading  conditions  and so failing to meet its banking 
covenants,  Red Reef Media  was placed into  administration in September with no 
prospect  of any recovery.  This investment was  previously valued at zero as at 
30 June  2011.  The  investment  in  AIM  listed  Zamano, the only remaining AIM 
listed  investment, was sold in October  realising  GBP31,250 which compared to its 
carrying  value  of   GBP73,125  as  at  30 June 2011.  Partially reflecting recent 
volatility  in  the  public  markets,  the  investment  in  PFS  Downing  Active 
Management  (a specialist  investment fund  with a  concentrated portfolio of UK 
smaller  companies  with  market  capitalisations  between   GBP20 million and  GBP150 
million)  decreased  slightly  by   GBP10,388  from   GBP216,781 as at 30 June 2011 to 
 GBP206,392 as at 30 September 2011. 
 
One follow-on investment was made, namely  GBP250,000 in The Fin Machine Company in 
October 2011. 
 
Share Capital 
At 30 September 2011, there were 34,337,164 Ordinary Shares in issue. There were 
no  issues of shares during the three months ended 30 September 2011. During the 
period, no shares were repurchased by the company for cancellation. 
 
The  net  assets  of  the  Ordinary  Shares  at  30 September 2011 comprised the 
following: 
 
                                                          GBP'000   % of Net Assets 
 
Unquoted  Investments at fair value as determined by the 
Directors                                                7,627              97.8 
 
Quoted investments at bid price                             31               0.4 
                                                        ------- ---------------- 
Total venture capital investments                        7,658              98.2 
 
Net Current Assets                                         144               1.8 
                                                        ------- ---------------- 
 
Net Assets                                               7,802             100.0 
                                                        ------- ---------------- 
 
 
Quoted  investments are  stated at  bid price  as at 30 September 2011. Unquoted 
investments  are stated at  fair value as  at 30 September 2011 as determined by 
the Directors. 
 
During  the  three  months  ended  30 September  2011 there  were  no  follow on 
investments or disposals. 
 
For further information please contact: 
 
Gary Fraser, Foresight Group:                        01732 471 800 
 
 
 
 
 
 
 
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Source: Acuity VCT 3 PLC via Thomson Reuters ONE 
 
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