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Share Name Share Symbol Market Type Share ISIN Share Description
Oxford Technology 3 Venture Capital Trust Plc LSE:OTT London Ordinary Share GB0031420390 ORD 10P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.0% 35.00 20.00 50.00 35.00 35.00 35.00 0.00 01:00:00
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Nonequity Investment Instruments 0.0 -0.1 -1.7 - 2

Oxford Tech 3 VCT Annual Financial Report

20/05/2020 7:00am

UK Regulatory (RNS & others)


 
TIDMOTT 
 
 
   19 May 2020 
 
   Oxford Technology 3 VCT plc ("the Company" or "OT3") 
 
   Annual Report and Accounts for the year ended 29 February 2020 
 
   The Directors are pleased to announce the audited results of the Company 
for the year ended 29 February 2020.  A copy of the Annual Report and 
Accounts (together the "Accounts") will be made available to 
Shareholders shortly.  Set out below are extracts from the audited 
Accounts. References to page numbers below are to those Accounts. 
 
   The AGM will be held at Magdalen Centre, Oxford Science Park, Oxford OX4 
4GA on Thursday 9 July 2020, at 2pm.  We believe the meeting is likely 
to be a virtual meeting with limited physical attendance and no investee 
or Investment Adviser presentations. We will provide further updates on 
this by the end of June via our website: 
https://www.globenewswire.com/Tracker?data=YxZk2wf7RDTIqUbSbpD0wi2xLZfYuv4hiUB1UoNwKYINUFiqlVzMFxA1DGyppGgrRUFoK7ntizviKveu-1Z06rIxIk74ETOGSwwHX-RiCIj7DQyeO2yq8LiK0Antda52 
https://www.oxfordtechnologyvct.com.  In this eventuality, shareholders 
will not be allowed to attend in person. 
 
   A copy of the Annual Report and Accounts will be available from the 
registered office of the Company at Magdalen Centre, Oxford Science Park, 
Oxford OX4 4GA, as well as on the Company's website. 
 
   Financial Headlines 
 
 
 
 
                                        Year Ended           Year Ended 
                                         29 February 2020     28 February 2019 
-----------------------------------  --------------------  ------------------- 
  Net Assets at Year End               GBP4.72m              GBP6.07m 
-----------------------------------  --------------------  ------------------- 
  Net Asset Value (NAV) per Share      69.6p                 89.5p 
-----------------------------------  --------------------  ------------------- 
  Cumulative Dividend per Share        36.0p                 36.0p 
-----------------------------------  --------------------  ------------------- 
  NAV + Cumulative Dividend per        105.6p                125.5p 
  Share Paid from Incorporation 
-----------------------------------  --------------------  ------------------- 
  Share Price at Year End              55.0p                 62.5p 
-----------------------------------  --------------------  ------------------- 
  Earnings Per Share                   (19.9)p               3.3p 
   (Basic & Diluted) 
-----------------------------------  --------------------  ------------------- 
 
 
 
 
   Chairman's Statement 
 
   "The world is in a fight against COVID-19 and I want to thank all the 
people looking after us; the nurses and doctors, the first responders 
and the police, the people keeping food shops open and deliveries 
happening. And also the people we don't see so much, like those behind 
the technologies that mean we can stay connected with our loved ones and 
with our work colleagues. Many, many are giving their time and risking 
their own well-being so that we can stay safe and sound. We rely on them, 
we are indebted to them, and I want to pay tribute to the sacrifices 
they are making on our behalf." 
 
   These were the recent words from the CEO of BP, the company where I 
started my career over 50 years ago. I think Bernard Looney has 
expressed my views more eloquently than I could. It is against this 
sobering background that I present the Annual Report for the year to 29 
February 2020 to fellow shareholders. 
 
   Overview 
 
   Your company made a loss of 19.9p per share, a reduction in NAV of 22%. 
This was primarily due to downward valuations in the unquoted portfolio 
of Ixaris Group Holdings (Ixaris) and ImmunoBiology Ltd (ImmBio) and the 
sale of Orthogem Ltd (Orthogem) at nominal value. The only bright spot 
was an increase in our valuation of Arecor Limited (Arecor). Your Board 
is not recommending the payment of a final dividend for the year ended 
29 February 2020. 
 
   In these unprecedented and uncertain times our thoughts are with our 
shareholders, the staff of our Investment Adviser and the employees of 
our investee companies. We hope that by the time of our AGM in July 
there will be some light at the end of the tunnel and greater visibility 
going forward. In a gesture of solidarity with our stakeholders I have 
chosen, as Chairman, to make a voluntary 20% waiver in my base fee for 
the first half of this coming financial year. 
 
   It is with deep regret that this year saw the death of our former 
Chairman, Richard Vessey, in January after a long battle with illness. 
He served on the board of OT3 from 2006 until his retirement in August 
2015 and continued to have a great interest in our portfolio companies. 
 
   Shareholders will appreciate that an annual report is a snapshot in 
time. Our year end was 29 February 2020 and shareholders will be aware 
that the FTSE100, which had been above 7000 for the whole year up to 26 
February, fell to 6700 at 29 February. It subsequently fell to a low of 
5000 on 23 March 2020 before recovering at mid-May to around 5750, a 
drop of 14 % since 29 February.  Whilst the FTSE index is not a direct 
determinant of the valuation of small unquoted early stage technology 
companies, it represents a guide to market sentiment which is likely to 
influence general company value assessments. 
 
   Under the valuation rules we are required to produce valuations based on 
all the information that was known or should have been known to the 
Directors at 29 February 2020. Clearly the full scale of the impact of 
the Covid-19 virus and the extraordinary measures that the government 
took in March to protect the country, combined with the oil price shock 
were unexpected at that time, to say the least. 
 
   We have been continuously assessing the effect of this double impact. 
With the passage of another two months to the time of signing off this 
report we are beginning to get greater clarity of what it means to the 
investee companies and your VCT.  Industry wide the worst hit sectors 
have been airlines, travel, hospitality, oil and non-essential retail 
while on the upside some biotech companies have found new opportunities 
and there has been an occasional takeover of an undervalued company. 
 
   For OT3 the initial Covid-19 pain has been most strongly felt by Ixaris, 
a travel payments company as a result of knock on impacts from Thomas 
Cook's failure and a decline in Asian travel. Subsequent to our year end 
the downward pressure has increased on Ixaris with major airline 
disruption. However Scancell Holdings plc (Scancell) has had a moderate 
uplift after announcing the start of its research programme to develop a 
Covid-19 vaccine. 
 
   Last year our biggest Brexit concern was the uncertainty itself. The 
result of the General Election, the signing of the EU Withdrawal 
Agreement, Covid-19 and its ensuing turmoil have now returned Brexit and 
trade discussions to the business pages. The pandemic has highlighted a 
national need for a higher degree of self-sufficiency and the economic 
downturns across Europe will hopefully work against the introduction of 
extreme trade barriers and tariffs. Last year we stated that our 
portfolio was not overly exposed to trade with EU companies and that 
remains our view. One major change that was expected was that Ixaris 
would need a new EU based office. Initially this was planned for 
Brussels but now will be relocated to Malta. 
 
   There has been significant other market turmoil over the last 12 months, 
including the closing of the Woodford Equity Income Fund and the 
suspension of several property funds driven by investors wishing to 
withdraw their money faster than assets could be realised. 
 
   Despite all of the above, it is worth reminding ourselves that the VCT 
structure is an appropriate holding vehicle for unquoted companies 
through difficult times. Unlike unit trusts we are under no pressure to 
make fire sales to meet the demand from unit holders to withdraw their 
cash. Your VCT has GBP120k in the bank at mid-May 2020 which more than 
covers 12 months of expenses. Furthermore the portfolio contains one 
liquid AIM quoted company worth around GBP350k at mid-May which, in 
extremis, could also provide liquidity; although that is not our 
preference at this time. 
 
   Nevertheless, as we have warned shareholders many times previously, the 
current portfolio is very concentrated with Ixaris representing almost 
65% of our net asset value (NAV). 
 
   Portfolio Review 
 
   Your VCT currently has holdings in 11 unlisted companies and one AIM 
quoted company. They continue to develop, and where we want to and are 
permitted under VCT rules, your Company continues to support that 
development. 
 
   The Board and Investment Adviser continue to monitor and mentor investee 
companies towards points of value inflection at which we can profitably 
exit and return funds to shareholders. This is the nature of a longer 
than expected life technology fund. 
 
   Having followed this investment philosophy, it gives me no pleasure to 
relate that in December we came very close - but not close enough - to 
achieving a major portfolio exit. 
 
   After a competitive auction process a well-funded buyer made an 
attractive takeover bid for Ixaris at a value significantly above our 
carrying value.  After full due diligence had been satisfactorily 
completed, an industry issue associated with the collapse of Thomas Cook 
derailed the process and, in the time taken to resolve it, the takeover 
offer was withdrawn. Immediately afterwards, it became apparent that 
travel payments related businesses were going to have to reshape 
themselves to cope with a reduced volume of travel following the 
outbreak of Covid-19. Ixaris lives to fight another day and the founder 
has returned as part time CEO of a slimmed down organisation to ensure 
stability. Ixaris still remains number 3 in its sector and, as we have 
just seen, has its inherent attractions which we hope will appeal to 
buyers once again down the road. Post period end the airline travel 
market has gone into serious decline. 
 
   Scancell is our third largest holding and had a disappointing year of 
regulatory and clinical delays in its flagship melanoma trial and its 
share price fell over the course of the year. Its planned Phase 2 
combination trial with their initial product SCIB1 ran into difficulties 
with the US Food and Drug Administration (FDA) due to the delayed 
approval by the FDA of the upgraded delivery device from 3(rd) party 
Ichor. In the event, the trials started in the UK later than expected. 
Subsequently the required US approvals were received but a year has been 
lost and results will now be correspondingly delayed. Post period end 
the UK trial went on hold as a result of Covid-19 risks. Nevertheless 
good data from these trials could represent a significant value 
inflection point for Scancell and are eagerly awaited. 
 
   Preparations for trials with their other 2 lead products (SCIB2 and 
MODI-1) are continuing to make progress. Cancer Research UK is funding 
and sponsoring a Phase 1/2 trial to investigate the safety and efficacy 
of SCIB2 using a new nanoparticle formulation to effectively deliver 
this vaccine to non-small cell lung cancer patients with solid tumours. 
Modi-1 is being developed for the treatment of solid tumours including 
triple negative breast cancer, ovarian cancer and head and neck cancer. 
However both are at too early a stage to influence valuations yet.  The 
new AvidiMab platform has also generated significant interest and three 
agreements have been signed with different partners to evaluate its 
potential, which if successful, could translate into important 
commercial deals. 
 
   During the year, and after conducting in-depth scientific and commercial 
due diligence, Vulpes Life Science Fund subscribed GBP4m in Scancell, 
through a share placing at 5.0p/share and made a further open market 
purchase, to become a significant (17%) shareholder with a seat on the 
board. The investment by Vulpes has extended the Scancell's cash runway, 
but it is anticipated that there will be a need to raise further funds 
or form commercial partnerships to realise the potential of all the 
technologies under development. 
 
   Scancell's share price started the year at 7.0p and ended at 6.4p but 
swung during the year between a high of 9.2p and a low of 3.0p when a 
distressed hedge fund unhelpfully exited all its large position in an 
emergency fire sale.  Post period end the Scancell share price 
temporarily spiked following the April announcement that Scancell had 
initiated a research project to use its clinical expertise in cancer to 
produce a simple, safe, cost effective and scalable vaccine which could 
induce a durable response against the virus that causes Covid-19. 
 
   ImmBio is our fourth largest holding. It has signed a commercial licence 
with the China National Biotech Group and the first milestone payment 
has been received. Further milestones payments will be made when the 
transfer of certain technology is complete. This has been delayed partly 
by Covid-19 related events. The company is seeking to licence its 
vaccine in other countries and is pursuing grant applications. 
 
   We have continued to support the working capital of the company with 2 
small share placings during the year totalling GBP21k. However the 
continuing delays and lack of progress in obtaining grants have led us 
to reduce the valuation during the year. 
 
   On a more positive note, Arecor, your VCT's second largest holding 
representing 15% of NAV is making excellent progress. It recently 
announced that it has achieved an important second contractual milestone 
with one of its pharmaceutical partners. The first milestone was 
triggered in October 2017 following the signature of a license agreement 
between the parties. It has also announced a multi-product collaboration 
with a US-based clinical stage biotechnology company. Under the 
collaboration, Arecor will leverage its proprietary technology to 
develop liquid formulations of two proprietary novel products in 
oncology and a rare genetic orphan condition.  It is well placed to 
expand and remains a bright spot in the portfolio. 
 
   Orthogem was sold in January 2020 to third party investors introduced by 
one of its distributors TRB Chemedica (UK) Ltd for a nominal amount. 
Although Orthogem had made significant technical progress with the 
launch of its putty product and appointment of international 
distributors, it was unable to raise sufficient funding to be able to 
continue to trade.  The OT VCTs were willing to continue supporting the 
company, especially given we believed the company was very close to 
commercial success, but the VCT rules governing the age of companies and 
the use to which any new funds can be applied prevented us from doing 
so.  Similar restrictions applied to potential EIS investors. Whilst 
some other investors were willing to support Orthogem, it was at an 
insufficient level. The only way to avoid the company being placed into 
liquidation was to put itself up for sale; with original investors 
retaining the right to a potential royalty income should existing 
product sales follow. The Investment Adviser is working with HMRC to see 
how the VCTs may be able to benefit from this income stream without 
breaching any VCT rules, should royalties become receivable in the 
future. 
 
   The Directors continue to take an active interest in the companies 
within the portfolio, both to support their management teams to achieve 
company development, but also to prepare companies for realisation at 
the appropriate time.  It should be noted, however, that approaches do 
occur at other times, and the ability of the Directors and Investment 
Adviser to be able to provide support when such approaches occur is 
essential for maximising value. 
 
   Further details are contained within the Investment Adviser's Report, 
and on our website. 
 
   Dividends/Return of Capital 
 
   As mentioned earlier no final dividend is recommended. 
 
   The ongoing strategy is to seek to crystallise value from the portfolio 
and distribute cash to shareholders.  Our priority is to maximise 
shareholder value and liquidity over the medium term by seeking exits 
for these holdings at the appropriate time, but remaining mindful of the 
need to meet both VCT and going concern tests. 
 
   VCT Market Changes 
 
   After some big changes in recent years, this has been another period of 
allowing the new regulatory landscape to bed in. The types of investment 
now allowed are of the sort in which the OT VCTs have always specialised 
in, and we continue to believe the VCT structure is well-suited to this 
patient approach to long term value creation. 
 
   However, the VCT rules do provide additional challenges for very small 
VCTs, where there is very little flexibility in how to operate, and with 
a small portfolio, we are very severely hindered from continuing to 
support our own investee companies. From March 2020 we are required to 
have more than 80% of assets in qualifying assets compared to 70% in 
prior years. On 29 February 2020, we met this test with 95% of our 
assets qualifying. 
 
   Cost Control 
 
   Your Board continues to look at methods of improving operational 
efficiency, reducing costs and, more generally putting in place 
appropriate plans to ensure that your VCT's operational costs relative 
to its overall size remain within acceptable limits. The current level 
of operating costs of GBP115k (2019: GBP113k) are 1.9% of opening net 
assets. Over the last 5 years we have renegotiated almost every element 
of cost. 
 
   Our investment management and Directors' fees and auditors' remuneration 
are amongst the lowest in the VCT industry. The largest remaining 
elements of cost are the LSE listing fee at almost GBP10k and the FCA 
fee of GBP6k. These regulatory fees seem to have relentless increases 
and bear disproportionally on a small company. We have written to both 
organisations to request a one-off 50% rebate in this difficult year and 
asked them to reconsider their overall fee structures and, in particular, 
relook at their charges to the lower end of the market. 
 
   Covid-19 Response 
 
   The Investment Adviser has proved to be operationally resilient and is 
financially sound in the post Covid-19 world. Your Board is used to 
working in a physically remote and virtual environment. The VCT has 
continued to operate effectively as is evidenced by the publication of 
this Annual Report and Financial Statements to our normal timetable. 
 
   Whilst your VCT remains in good structural shape, it seems prudent to 
take some precautionary measures. Every year we have a resolution for 
the shareholders to enable the Directors to raise a further 5% of shares 
without pre-emption rights and this has always been approved. This year, 
following guidance from the FRC Pre-emption Group we would like, with 
our shareholders' approval, to raise the current level to 20% to provide 
flexibility, if ever required, to raise money more cheaply and at 
shorter notice. This would enable to us to support investee companies 
(within the VCT rules) and exceptionally take advantage of other 
opportunities arising from other investees in the OTVCT stable. At the 
moment we have no plans to raise additional capital or to conduct a 
possible placing, but it seems prudent in these uncertain times to have 
the capability in case the Board considers it opportune to act quickly. 
 
   Shareholders who might be interested in buying shares via such a placing 
are invited to register their potential interest at 
https://www.globenewswire.com/Tracker?data=3eNBLFz5-8DWSxP1f73cvD5u2AmPFLZZ2JwCY9Mtk-k2UbkZvUK_KCVLLGdBqWZdNMV1XhloxtNlPpznTIst-p7IvESqZQCBudBGkPnDnB7Av7lgkf8OgacuSRGFAyNA 
vcts@oxfordtechnology.com. 
 
   The Board and the Investment Adviser have sought to assess the current 
impact on valuations. Using latest bid prices for quoted investees and 
the Directors' normal determinants of fair value for unquoted investees 
we estimate that the NAV per share has reduced to 56.6p (a drop of 19%) 
as at mid-May (unaudited). The reduction is driven by Ixaris, as airline 
recovery time looks increasingly delayed. 
 
   First Quarter Results Announcement 
 
   Given the statement above, we do not currently intend to issue a NAV as 
at 31 May 2020. We will update the market further with our half year 
results to the end of August 2020. We do not currently consider that 
publishing this quarterly result will add any further value to 
shareholders, and not doing so will save some costs. 
 
   AGM 
 
   We believe the meeting is likely to be a virtual meeting with limited 
physical attendance and no investee or Investment Adviser presentations. 
(We will provide further updates on this by the end of June via our 
website). Covid-19 permitting, the Board and Investment Adviser hope to 
be able to host a physical event in October/November following the half 
year results so that shareholders can be updated and for them to hear 
how some of our investees have coped with this year's disruption. 
 
   In the meantime, I encourage you to return your proxies for the AGM as 
early as possible. Please send in any questions you might have and we 
will put up a Q&A section on the website. 
 
   Please note that in accordance with new AIC guidelines all four 
directors are standing for annual re-election. I have no hesitation in 
recommending shareholders to vote for all my co-directors. All have 
played a very full part in the VCT's activities throughout the year. 
 
   We also recommend the re-election of UHY Hacker Young who have done a 
very good job this year under difficult conditions, not least of which 
was one of their key staff contracting Coronavirus during the period of 
the audit. 
 
   As in previous years, we are putting forward a resolution to vote for 
the continuation of the VCT. The Directors do not consider this to be an 
appropriate time to wind up the VCT and is not in shareholders' best 
interests. 
 
   Finally we have taken the opportunity to update our articles of 
association; Oxford Technology 2 Venture Capital Trust did this 2 years 
ago and a very similar format has been followed.  More details are shown 
on page 37 and on our website www.oxfordtechnologyvct.com. 
 
   A formal Notice of the AGM has been enclosed with these Financial 
Statements together with a Form of Proxy for those not attending.  We 
encourage you to vote on the AGM resolutions via your proxy forms and 
thank you all for your ongoing support. 
 
   Outlook/Planning for the Future 
 
   In recent communications with shareholders, the Board has set out its 
preference to expand the asset base of the Company by raising funds in a 
new share class with a new manager. The uptick in interest in 'business 
as usual' VCT venture and growth investing has resulted in these listed 
retail investment vehicles becoming of more interest to mainstream fund 
managers who do not already have a VCT as part of their 'waterfront'. We 
engaged in substantive discussions with one potential manager but it was 
clear that a current tax year offering could not be negotiated in time. 
We will resume talks when the future outlook has become clearer. 
 
   We continue to believe your VCT is an appropriate structure to hold your 
Company's investments, albeit it would be preferable to have a larger 
asset base to share the operating costs. In the meantime, your Board 
continues to work to best position the Company such that - when 
conditions and liquidity permit -- holdings can be exited and proceeds 
distributed to shareholders. 
 
   In normal years I would conclude by expressing my thanks to all 
shareholders for their continuing support and looking forward to 
welcoming as many of you as possible to the AGM. This year I will just 
express a wish that you keep safe and healthy and that together we may 
ultimately arise stronger and more united for a future in what will 
undoubtedly be a different world. 
 
   Robin Goodfellow 
 
   Chairman 
 
   19 May 2020 
 
   Investment Portfolio Review 
 
   OT3 was formed in 2002 and invested in a total of 38 companies, all 
start-up or early stage technology companies.  Some of these companies 
failed with the loss of the investment.  Some have succeeded and have 
been sold.  Dividends paid to shareholders to date are 36p per share. 
The table on page 23 shows the companies remaining in the portfolio.  A 
more detailed analysis is given of the most significant investments on 
the following pages. The portfolio contains several investees which are 
showing promise and which have the potential to deliver significant 
returns. 
 
   However there have been setbacks, most notably during the year when the 
sale of Ixaris fell through. The takeover offer, which was close to 
completion. was withdrawn due to issues connected with the unfortunate 
collapse of Thomas Cook.  There have been some board and senior 
management changes and the company continues to operate, despite the 
additional challenging times we currently face with the Covid-19 
pandemic.  OTM is working with all of the portfolio companies helping 
and advising them through these difficult and unprecedented times. 
 
   Scancell is developing novel immunotherapies for cancer based on three 
platform technologies known as Immunobody, Moditope and Avidimab. 
Results from Scancell's first clinical trial for the treatment of 
melanoma continue to be excellent with recurrence free survival at 69% 
at 5 years, surpassing results in other trials of ipilimumab (leading 
immunotherapy for cancer) which showed 46.5% at 3 years.  The Avidimabs 
-- which are antibodies directed at targets expressed on cancer cells -- 
are the latest addition to the business of Scancell and have already 
generated three development agreements. 
 
   Scancell had a fall in its share price in the first half of the year. An 
investment of GBP3.87m from Vulpes Life Sciences Fund supported the 
company and the share price rose again to 6.4p at  29 February 2020. 
Scancell has received authorisation to proceed with its SCIB1 trial in 
combination with Keytruda both in the UK and the US. Post period end 
Scancell has announced its plans to initiate research work to develop a 
vaccine against the Covid-19 virus causing a moderate increase in its 
share price. 
 
   Select Technology specialises in software for photocopiers -- now known 
as MFDs -- Multi-Function Devices. Over the last decade Select 
Technology has built up a global network of distributors and dealers 
through which it sells third party products.  These products now include 
PaperCut, KPAX, Foldr, Drivve Image, EveryonePrint and Square 9 
Enterprise Content Management. Sales have increased from GBP210k in the 
year to July 2010 to just over GBP6.5m in the year to January 2020. 
Select paid a dividend in February 2020. 
 
   Arecor conducted its phase 1 trial for Ultra-Rapid Acting Insulin. The 
results were very good with all the desired outcomes being met. Arecor 
also has other insulin and non-insulin internal development programmes. 
Arecor also announced a new collaboration agreement with a pharma 
company and it has received a milestone payment for a partnered 
programme. 
 
   In February 2019 ImmBio signed a license deal for PnuBioVax in the 
Chinese market with a subsidiary of CNBG, the leading Chinese biologics 
company. PnuBioVax is a vaccine that targets pneumococcal disease in 
children and the elderly.  Throughout the year it has been working to 
transfer the technology to its partner. An investment of GBP150k (of 
which OT3 contributed GBP1k) was made in February 2020 to extend the 
company runway. In March 2019, OT3 also invested GBP20k as part of an 
earlier GBP150k round. 
 
   Orthogem received a CE mark for its putty product in early 2018. 
Approvals for other countries were very slow to follow. Although a deal 
was made with a new and much larger UK distributor, the sales did not 
pick up quickly enough for the company to remain solvent going forward. 
The OT VCTs were willing to continue supporting the company, especially 
given we believed the company was very close to commercial success, but 
the VCT rules governing the age of companies and the use to which any 
new funds can be applied prevented us from doing so.  The company was 
sold for GBP1 and a 10% share of gross profits going forward.  We are 
currently working with HMRC to see how OT3 may be able to benefit from 
any future income stream in the form of possible royalties without 
breaching any VCT rules. 
 
 
 
   New Investments in the year 
 
   Follow on investment has been made into ImmBio of GBP21,336 in two 
tranches. This has complied with both EU State Aid rules and HMRC rules. 
 
   Disposals during the year 
 
   Orthogem was disposed of during the year but only for a nominal sum of 
GBP1. There were no other disposals. 
 
   Valuation Methodology 
 
   Quoted and unquoted investments are valued in accordance with current 
industry guidelines that are compliant with International Private Equity 
and Venture Capital (IPEVC) Valuation Guidelines and current financial 
reporting standards. 
 
   VCT Compliance 
 
   Compliance with the main VCT regulations as at 29 February 2020 and for 
the year then ended is summarised as follows: 
 
 
 
 
Type of Investment 
 By HMRC Valuation Rules     Actual            Target 
---------------------------  ------  -------------------------- 
                                     Minimum obligation of: 70% 
VCT Qualifying Investments   95.1%     (80% from 1 March 2020) 
                                        Maximum allowed: 30% 
Non-Qualifying Investments    4.9%     (20% from 1 March 2020) 
---------------------------  ------  -------------------------- 
Total                          100%                        100% 
 
 
   The value used in the qualifying tests is not necessarily the original 
investment cost due to the complex rules required by HMRC, therefore the 
allocation of Qualifying investments as defined by the legislation can 
be different to the portfolio weighting as measured by market value 
relative to the net assets of the VCT. 
 
   At least 70% of each investment must be in eligible shares - Complied. 
 
   No more than 15% of the income from shares and securities is retained - 
Complied. 
 
   No investment constitutes more than 15% of the Company's portfolio (by 
value at time of investment or when the holding is added to) - Complied. 
 
   The Company's income in the period has been derived wholly or mainly 
(70% plus) from shares or securities - Complied. 
 
   No investment made by the VCT has caused the company to receive more 
than GBP5m of State Aid investment in the year, nor more than the 
lifetime limit of GBP12m -- Complied. 
 
   Table of Investments 
 
   The table below shows the current portfolio holdings.  The investments 
in Ciphergrid, Concurrent Thinking, Coraltech, Datasoft Medical, 
Freehand Surgical, IFM, Im-Pak, Inscentinel, Novarc, OST, Promic, 
ReviveR, Streamline Computing and Glide Technologies have been written 
off. 
 
   The investments in Avidex, Archimed, BioAnaLab, Commerce Decisions, 
Dataflow, MET, Telegesis, Equitalk, Allinea, Abzena and Orthogem have 
been sold. 
 
   Number of shares in issue:  6,785,233 
 
   Net Asset Value per share at 29 February 2020: 69.6p 
 
   Dividends per share paid to date: 36.0p 
 
   Table of Investments held by Company at 29 February 2020 
 
 
 
 
                                                                                                  Change 
                                                                                                    in 
                                                                                        Carrying   value 
                                                                                        value at  for the   % equity 
                                                                Net cost of investment  29/02/20   year     held by                %                    % 
Company            Description     Date of initial investment           GBP'000         GBP'000   GBP'000     OT3       equity held by all OTVCTs   net assets 
-----------------  --------------  ---------------------------  ----------------------  --------  -------  ---------  ---------------------------  ----------- 
                   Internet 
                    payment 
Ixaris              system         Aug 2002                                        535     3,082    (864)        6.2                          6.2         65.3 
-----------------  --------------  ---------------------------  ----------------------  --------  -------  ---------  ---------------------------  ----------- 
                   Protein 
Arecor              stabilisation  Jul 2007                                        443       712      211        3.1                         10.5         15.1 
-----------------  --------------  ---------------------------  ----------------------  --------  -------  ---------  ---------------------------  ----------- 
                   Antibody based 
Scancell (bid       cancer 
 price 6.4p)        therapeutics   Dec 2003                                        409       328     (31)        1.1                          2.7          6.9 
-----------------  --------------  ---------------------------  ----------------------  --------  -------  ---------  ---------------------------  ----------- 
ImmBio             Novel vaccines  May 2003                                        483       248    (271)        6.5                         22.6          5.3 
-----------------  --------------  ---------------------------  ----------------------  --------  -------  ---------  ---------------------------  ----------- 
                   Specialist 
Select - STL        photocopier 
 Management         interfaces     Nov 2004                                         47       156      (6)        2.8                         58.6          3.3 
-----------------  --------------  ---------------------------  ----------------------  --------  -------  ---------  ---------------------------  ----------- 
                   Active wound 
                    healing 
Insense             dressings      May 2003                                        333        60        -        2.3                          6.8          1.3 
-----------------  --------------  ---------------------------  ----------------------  --------  -------  ---------  ---------------------------  ----------- 
                   Low power 
Invro               electronics    Apr 2004                                         40        10     (10)       33.1                         33.1          0.2 
-----------------  --------------  ---------------------------  ----------------------  --------  -------  ---------  ---------------------------  ----------- 
                   Directional 
Plasma Antennas     antennas       Sep 2004                                        358         3        -       12.4                         48.8          0.1 
-----------------  --------------  ---------------------------  ----------------------  --------  -------  ---------  ---------------------------  ----------- 
Inaplex            Data software   Mar 2003                                         58         1      (5)       13.3                         34.8            - 
-----------------  --------------  ---------------------------  ----------------------  --------  -------  ---------  ---------------------------  ----------- 
                   Production of 
Metal Nanopowders   nanopowders    Nov 2002                                        153         -        -       20.0                         36.7            - 
-----------------  --------------  ---------------------------  ----------------------  --------  -------  ---------  ---------------------------  ----------- 
                   Production of 
Superhard           hard 
 Materials          materials      Feb 2012                                         11         -        -       21.8                         40.0            - 
-----------------  --------------  ---------------------------  ----------------------  --------  -------  ---------  ---------------------------  ----------- 
                   Insense 
MicroArray          spinout        Dec 2013                                          2         -        -        0.2                          0.2            - 
-----------------  --------------  ---------------------------  ----------------------  --------  -------  ---------  ---------------------------  ----------- 
 
  Totals                                                                 2,871            4,601     (976)                                              97.5 
--------------------------------------------------------------  ----------------------  --------  -------  ---------  ---------------------------  ----------- 
Other Net 
 Assets                                                                                    121                                                          2.5 
--------------------------------------------------------------  ----------------------  --------  -------  ---------  ---------------------------  ----------- 
NET ASSETS 
                                                                                          4,722                                                        100.0 
--------------------------------------------------------------  ----------------------  --------  -------  ---------  ---------------------------  ----------- 
 
 
 
 
   Lucius Cary 
 
   Director -- OT3 Managers Ltd 
 
   Investment Manager 
 
   19 May 2020 
 
 
 
   Directors' Report 
 
   The Directors present their report together with Financial Statements 
for the year ended 29 February 2020. 
 
   The Directors consider that the Annual Report and Financial Statements, 
taken as a whole, are fair, balanced and understandable and provide the 
information necessary for shareholders to assess the Company's 
performance, business model and strategy. 
 
   This report has been prepared by the Directors in accordance with the 
requirements of s415 of the Companies Act 2006.  The Company's 
independent auditor is required by law to report on whether the 
information given in the Directors' Report is consistent with the 
Financial Statements. 
 
   Principal Activity 
 
   The Company commenced business in March 2002. The Company invests in 
start-up and early stage technology companies in general located within 
60 miles of Oxford. The Company has maintained its approved status as a 
Venture Capital Trust by HMRC. 
 
   Review of Business Activities 
 
   The Directors are required by section 417 of the Companies Act 2006 to 
include a Business Review to shareholders. This is set out on page 12 
and forms part of the Strategic Report. The purpose of the Business 
Review is to inform members of the Company and help them assess how the 
Directors have performed their duty under section 172 of the Companies 
Act 2006 (duty to promote the success of the Company). The Company's 
section 172 Statement on page 18, the Chairman's Statement on page 5 to 
11, and the Investment Portfolio Review on pages 20 to 28 also form part 
of the Strategic Report. 
 
   Corporate Governance Statement 
 
   The Board has considered the principles and recommendations of the 2019 
AIC Code  as applied to companies reporting as at 29 February 2020. The 
Company's Corporate Governance policy is set out on pages 41 to 48. 
 
   The 2019 AIC Code is available on the AIC website (www.theaic.co.uk). It 
includes an explanation of how the 2019 AIC Code adapts the Principles 
and Provisions set out in the UK Code to make them relevant for 
investment companies. 
 
   The Company has complied with the recommendations of the 2019 AIC Code 
and the relevant provisions of the UK Code, except as set out below: 
 
 
   -- The Company does not have a Chief Executive Officer or a Senior 
      Independent Director. The Board does not consider this necessary as it 
      does not have any executive directors. 
 
   -- New Directors do not receive a formal induction on joining the Board, 
      though they did receive one tailored to them on an individual basis. 
 
   -- The Company conducts a formal review as to whether there is a need for an 
      internal audit function. However, the Directors do not consider that an 
      internal audit would be an appropriate control for this VCT at this 
      time. 
 
   -- The Company does not have a Remuneration Committee as these matters are 
      dealt with by the Board. 
 
   -- The Company does not have a Nomination Committee as these matters are 
      dealt with by the Board. 
 
 
   For the reasons set out in the AIC Guide, and as explained in the UK 
Code, the Board considers the above provisions are not relevant to the 
position of the Company, being an investment company run by the Board 
and managed by the Investment Adviser. In particular, all of the 
Company's day-to-day administrative functions are outsourced to third 
parties. As a result, the Company has no executive directors, employees 
or internal operations. 
 
   Directors 
 
   The Directors of the Company are required to notify their interests 
under Disclosure and Transparency Rule 3.12R.  The membership of the 
Board and their beneficial interests in the ordinary shares of the 
company at 29 February 2020 and at 28 February 2019 are set out below: 
 
   Name                                    2020                                  2019 
 
 
   R Goodfellow                    35,000                                35,000 
 
 
   R Roth                                38,149                                38,149 
 
 
   A Starling                                 Nil                                      Nil 
 
 
   D Livesley                                Nil                                     Nil 
 
 
   Under the Company's articles of association one third of the Directors 
are required to retire by rotation each year. However, best practice 
under the latest corporate governance guidelines is for all directors to 
stand for election each year and as a result, Richard Roth, Alex 
Starling, Robin Goodfellow and David Livesley will all be nominated for 
re-election at the forthcoming AGM.  The Board believes that all the 
non-executive Directors continue to provide a valuable contribution to 
the Company and remain committed to their roles. The Board recommends 
that shareholders support the resolutions to re-elect all four Directors 
at the forthcoming AGM. 
 
   The Board is satisfied that, following individual performance appraisals, 
the Directors who are retiring continue to be effective and demonstrate 
commitment to their roles and therefore offer themselves for re-election 
with the support of the Board. 
 
   The Board did not identify any conflicts of interest between the 
Chairman's interest and those of the shareholders, especially with 
regard to the relationship between the Chairman and the Investment 
Adviser. 
 
   The Board is cognisant of shareholders' preference for Directors not to 
sit on the boards of too many larger companies ("overboarding"). 
 
   Shareholders will be aware that in July 2015, the Company, along with 
the other VCTs that were managed by Oxford Technology Management, 
appointed directors such that the four VCTs each had a Common Board. In 
addition, Richard Roth has subsequently also become a Director of Seneca 
Growth Capital VCT Plc, a VCT investing in the MedTech sector which is 
also self-managed and has a number of investments in common with the 
Oxford Technology VCTs. 
 
   Whilst great care is taken to safeguard the interests of the 
shareholders of each separate company, there is an element of overlap in 
the workload of each Director across the four OT funds due to the way 
the VCTs are managed.  The Directors note that the workload related to 
the four OT funds is less than it would be for four totally separate and 
larger funds and are satisfied that Richard Roth has the time to focus 
on the requirements of each OT fund. 
 
   Investment Management Fees 
 
   OT3 Managers Ltd, the Company's wholly owned subsidiary, has an 
agreement to provide investment management services to the Company for a 
fee of 1% of net assets per annum. OT3 Managers Ltd subcontracts these 
services to OTM on a pass through basis. David Livesley and Robin 
Goodfellow together with Lucius Cary are Directors of OT3 Managers Ltd. 
 
   Directors' and Officers' Insurance 
 
   The Company has maintained insurance cover on behalf of the Directors, 
indemnifying them against certain liabilities which may be incurred by 
them in relation to their duties as Directors of the Company. 
 
   Ongoing Review 
 
   The Board has reviewed and continues to review all aspects of internal 
governance to mitigate the risk of breaches of VCT rules or company law. 
 
 
   Whistleblowing 
 
   The Board has been informed that the Investment Adviser has arrangements 
in place in accordance with the UK Code's recommendations by which staff 
of Oxford Technology Management or the Secretary of the Company may, in 
confidence, raise concerns within their respective organisations about 
possible improprieties in matters of financial reporting or other 
matters. 
 
   Bribery Act 2010 
 
   The Company is committed to carrying out business fairly, honestly and 
openly.  The Investment Adviser has established policies and procedures 
to prevent bribery within its organisation.  The Company has adopted a 
zero tolerance approach to bribery and will not tolerate bribery under 
any circumstance in any transaction the Company is involved in. The 
Company has instructed the Investment Adviser to adopt the same approach 
with investee companies. 
 
   Relations with Shareholders 
 
   The Company values the views of its shareholders and recognises their 
interest in the Company. The Company's website provides information on 
all of the Company's investments, as well as other information of 
relevance to shareholders (www.oxfordtechnologyvct.com/vct3.html) 
 
   Shareholders have the opportunity to meet the Board at the Annual 
General Meeting. In addition to the formal business of the AGM the Board 
is available to answer any questions a shareholder may have. 
 
   The Board is also happy to respond to any written queries made by 
shareholders during the course of the year and can be contacted at the 
Company's registered office: Magdalen Centre, Oxford Science Park, 
Oxford OX4 4GA. Alternatively your question can be emailed to: 
https://www.globenewswire.com/Tracker?data=3eNBLFz5-8DWSxP1f73cvD5u2AmPFLZZ2JwCY9Mtk-mKZF5N_MbSvqZCGeUQjoCDT3kxDjp9iFrmk_p2NNzmfwXq1upywTpGPhcKzvTGMhmCbiWg91CE6hvp3hmUVKaH 
vcts@oxfordtechnology.com. 
 
   Going Concern 
 
   The assets of the Company consist mainly of securities, one of which is 
AIM quoted, quite liquid and readily accessible, as well as cash. After 
making enquiries, the Directors have a reasonable expectation that the 
Company has adequate resources to continue in operational existence for 
the foreseeable future. For this reason they have adopted the going 
concern basis in preparing the Financial Statements. 
 
   Share Capital 
 
   As disclosed on page 82, the Board has authority to make market 
purchases of the Company's own shares. No shares were purchased by the 
Company during the year. 
 
   The Board has authority to allot up to 339,260 shares (representing 
approximately 5% of the ordinary share capital as at 21 May 2019). No 
shares were allotted by the Company during the year. 
 
   The total number of Ordinary Shares of 10p each in issue at 29 February 
2020 was 6,785,233 (2019: 6,785,233) with each share having one vote. 
There are no other share classes in issue. 
 
   As discussed in the Chairman's Statement, whilst the VCT remains in good 
structural shape, it seems prudent to take some precautionary measures 
and the Board is proposing a resolution for shareholders to enable the 
Directors to raise a further 20% of shares without pre-emption rights 
this year, following guidance from the FRC Pre-emption Group. 
 
   This will provide additional flexibility, if ever required, to raise 
money more cheaply and at shorter notice. This would enable the Company 
to support investee companies (within the VCT rules) and, exceptionally, 
take advantage of other opportunities arising from other investees in 
the Oxford Technology VCT stable. At the moment we have no plans to 
raise additional capital or to conduct a possible placing, but it seems 
prudent in these uncertain times to have the capability in case the 
Board wishes to act quickly. 
 
   As in previous years, the Board are also proposing a resolution which 
would enable the Company to buy back up to 10% of its own share capital. 
To date, the Company has never bought back any of its shares, and the 
Board have no current plans to use this authority in the course of the 
next year. The Board is also cognisant that some shareholders do not 
support this proposal. However, it is good practice for the Company to 
retain the flexibility to be able to buy back shares should the 
Directors think it is in shareholders' best interests. 
 
   In accordance with Schedule 7 of the Large and Medium Size Companies and 
Groups (Accounts and Reports) Regulations 2008, as amended, the 
Directors disclose the following information: 
 
 
   -- The Company's capital structure and voting rights are summarised above, 
      and there are no restrictions on voting rights nor any agreement between 
      holders of securities that result in restrictions on the transfer of 
      securities or on voting rights; 
 
   -- There exist no securities carrying special rights with regard to the 
      control of the Company; 
 
   -- The rules concerning the appointment and replacement of Directors, 
      amendment of the Articles of Association and powers to issue or buy back 
      the Company's shares are contained in the Articles of Association of the 
      Company and the Companies Act 2006 
 
   -- The Company does not have any employee share scheme; 
 
   -- There exist no agreements to which the Company is party that may affect 
      its control following a takeover bid; and 
 
   -- There exist no agreements between the Company and its Directors providing 
      for compensation for loss of office that may occur following a takeover 
      bid or for any other reason 
 
 
   Substantial Shareholders 
 
   At 29 February 2020, the Company has been notified of the following 
investors whose interest exceeds three percent of the Company's issued 
share capital: State Street Nominees Limited, 8.75% (representing the 
beneficial interest of Oxfordshire County Council Pension Fund); 
Hargreaves Lansdown Nominees Limited, 5.28%; The Estate of Mr Richard 
Vessey, 3.48%. The holdings in Hargreaves Lansdown Nominees Limited 
include the beneficial interests of Ms Shivani Palakpari Shree Parikh, 
who has a declared holding of 5.1%. 
 
   Auditors 
 
   UHY Hacker Young LLP offer themselves for re-appointment as the 
independent auditors in accordance with Section 489 of the Companies Act 
2006. 
 
   Adoption of New Articles of Association 
 
   At the AGM, we are also seeking to adopt new articles ("New Articles") 
in substitution for the current articles. The New Articles are in a form 
which is appropriate for a premium listed Main Market traded VCT and in 
conformity with the Companies Act 2006.  The New Articles also include 
the rights attaching to a second class of shares (B Shares) to 
facilitate the potential to raise equity (if required) with a new 
manager at some point in the future. Another change proposed which 
reduces the nominal value of each share from 10p per share to 1p per 
share is a pre-cursor to enable the creation of additional distributable 
reserves in the future, which may allow the Company to pay out more to 
shareholders in time.  A more detailed summary of the key differences 
between the current articles of the Company and the New Articles which, 
in the opinion of the Directors, are relevant for shareholders, is set 
on the Company's website ( 
https://www.globenewswire.com/Tracker?data=kXl5yeDzGoWRPirORhlkSf2dBOREeDXUQWJQzXjvc2DX1ZTWVe3LFtXEycNYq7W_kyKeg5a4Jzl9UZ4JyY0lIjG2w4YUgcxuRUcqCFA873QYax34czdTnKN_jKsg765sgn78REnCNlEjQ9K2_w4cWg== 
www.oxfordtechnologyvct.com/vct3.html), as are the New Articles 
themselves. 
 
   A copy of the proposed New Articles is also available for inspection 
from the date of this Annual Report at the registered office of the 
Company and for at least 15 minutes prior to and during the Annual 
General Meeting at the place of the Annual General Meeting, Magdalen 
Centre, Oxford Science Park, Oxford OX4 4GA. 
 
   On behalf of the Board 
 
   Robin Goodfellow - Chairman 
 
   19 May 2020 
 
   Directors' Remuneration Report 
 
   Introduction 
 
   This report has been prepared by the Directors in accordance with the 
requirements of the Companies Act 2006. The Company's independent 
auditor, UHY Hacker Young LLP, is required to give its opinion on 
certain information included in this report. This report includes a 
statement regarding the Directors' Remuneration Policy. This report sets 
out the Company's Directors' Remuneration Policy and the Annual 
Remuneration Report which describes how this policy has been applied 
during the year. 
 
   The Directors' Remuneration Policy was last approved by shareholders at 
the AGM on 12 July 2018. It needs to be put to a shareholder vote every 
three years, and shareholders will be asked to approve it again at the 
Annual General Meeting in 2021. 
 
   Shareholders also need to approve the Directors' Remuneration Report 
every year. It was last approved at the AGM on 3 July 2019 on a 
unanimous show of hands and 99.6% of proxies voted in favour. A 
Resolution to approve the Directors' Remuneration Report for the year 
ended 29 February 2020 will be proposed at the Annual General Meeting on 
9 July 2020. 
 
   Directors' Terms of Appointment 
 
   The Board consists entirely of non-executive Directors who meet at least 
four times a year and on other occasions as necessary to deal with 
important aspects of the Company's affairs. Directors are appointed with 
the expectation that they will serve for at least three years and are 
expected to devote the time necessary to perform their duties. All 
Directors retire at the first general meeting after election and 
thereafter every third year, with at least one Director standing for 
election or re-election each year. In line with best practice, all 
Directors will offer themselves for re-election this year. Re-election 
will be recommended by the Board, but is dependent upon shareholder 
vote. There are no service contracts in place, but Directors have a 
letter of appointment. 
 
   Directors' Remuneration Policy 
 
   The Board acts as the Remuneration Committee and meets annually to 
review Directors' pay to ensure it remains appropriate given the need to 
attract and retain candidates of sufficient calibre and ensure they are 
able to devote the time necessary to lead the Company in achieving its 
strategy. 
 
   The articles of association of the company state that the aggregate of 
the remuneration (by way of fee) of all the Directors shall not exceed 
GBP50,000 per annum unless otherwise approved by Ordinary Resolution of 
the Company. At this year's AGM, shareholders are being asked to approve 
the adoption of New Articles (see page 37), which include a proposal to 
increase this limit to GBP75,000 per annum. This revised level would be 
more suitable to remunerate Directors at an appropriate level for a 
growing fund with an additional share class, should the members of the 
Board not also be Directors of other funds and should the Company be 
successful in significantly  increasing its asset base.  The following 
Directors' fees are payable by the Company: 
 
   per annum 
 
   Director Base Fee                                    GBP3,500 
 
   Chairman's Supplement                           GBP2,000 
 
   Audit Committee Chairman                      GBP3,000 
 
   Audit Committee Member                        GBP1,500 
 
   The OT3 Director Fees are amongst the lowest of any VCT. 
 
   Robin Goodfellow chairs the Company and is also a member of the Audit 
Committee.  Richard Roth chairs the Audit Committee.  As the VCT is 
self-managed, the Audit Committee carries out a particularly important 
role for the VCT and plays a significant part in the sign off of 
quarterly management accounts, and the production of the half year and 
annual statutory accounts. 
 
   Fees are currently paid annually. The fees are not specifically related 
to the Directors' performance, either individually or collectively.  No 
expenses are paid to the Directors.  There are no share option schemes 
or pension schemes in place, but Directors are entitled to a share of 
the carried interest as detailed below. The Directors may at their 
discretion pay additional sums in respect of specific tasks carried out 
by individual Directors on behalf of the Company. 
 
   David Livesley and Robin Goodfellow receive no remuneration in respect 
of their directorships of OT3 Managers Ltd, the Company's Investment 
Manager. 
 
   The performance fee is detailed in note 3. Current Directors are 
entitled to benefit from any payment made, subject to a formula driven 
by relative lengths of service.  The performance fee becomes payable if 
a certain cash return threshold to shareholders is exceeded -- the 
excess is then subject to a 20% carry that is distributed to Oxford 
Technology Management, past Directors and current Directors; the 
remaining 80% is returned to shareholders. At 29 February 2020 no 
performance fee was due. 
 
   Should any performance fee be payable at the end of the year to 28 
February 2021, Alex Starling, Robin Goodfellow, and Richard Roth would 
each receive 0.29% of any amount over the threshold and David Livesley 
0.72%. No performance fee will be payable for the year ending 28 
February 2021 unless original shareholders have received back at least 
145.4p in cash for each 100p (gross) invested. 
 
   Relative Spend on Directors' Fees 
 
   The Company has no employees, so no consultation with employees or 
comparison measurements with employee remuneration are appropriate. 
 
   Loss of Office 
 
   In the event of anyone ceasing to be a Director, for any reason, no loss 
of office payments will be made. There are no contractual arrangements 
entitling any Director to any such payment. 
 
   Annual Remuneration Report 
 
 
 
 
  Directors'       Year End 28/02/21    Year End 29/02/20    Year End 28/02/19 
  Fees                (unaudited)           (audited)            (audited) 
---------------  -------------------  -------------------  ------------------- 
  Robin                GBP6,650*            GBP7,000             GBP7,000 
  Goodfellow 
---------------  -------------------  -------------------  ------------------- 
  Alex Starling        GBP3,500             GBP3,500             GBP3,500 
---------------  -------------------  -------------------  ------------------- 
  Richard Roth         GBP6,500             GBP6,500             GBP6,500 
---------------  -------------------  -------------------  ------------------- 
  David                GBP3,500             GBP3,500             GBP3,500 
  Livesley 
---------------  -------------------  -------------------  ------------------- 
  Total                GBP20,150            GBP20,500            GBP20,500 
---------------  -------------------  -------------------  ------------------- 
 
 
   * Robin Goodfellow as Chairman has elected to take a voluntary 20% 
reduction in his base fee for the first six months of the year ending 28 
February 2021 in a gesture of solidarity with our stakeholders. 
 
 
 
   Income Statement 
 
 
 
 
                                                                                Year Ended                Year Ended 
                                                                             29 February 2020              28 February 2019 
                                                           Note     Revenue      Capital       Total      Revenue     Capital      Total 
                                                            Ref.     GBP'000     GBP'000      GBP'000      GBP'000     GBP'000     GBP'000 
-------------------------------------------------------  -------  ----------  -----------  -----------  ----------  ----------  ---------- 
  Loss on disposal of fixed asset investments                              -        (239)        (239)           -         (8)         (8) 
  Unrealised (loss)/gain on valuation of fixed asset 
   investments                                                             -        (997)        (997)           -         344         344 
  Investment income                                            2           1            -            1           2           -           2 
  Investment management fees                                   3        (61)            -         (61)        (15)        (44)        (59) 
  Other expenses                                               4        (54)            -         (54)        (54)           -        (54) 
-------------------------------------------------------  -------  ----------  -----------  -----------  ----------  ----------  ---------- 
 
  Return on ordinary activities before tax                             (114)      (1,236)      (1,350)        (67)         292         225 
  Taxation on return on ordinary activities                    5           -            -            -           -           -           - 
-------------------------------------------------------  -------  ----------  -----------  -----------  ----------  ----------  ---------- 
  Return on ordinary activities after tax                              (114)      (1,236)      (1,350)        (67)         292         225 
-------------------------------------------------------  -------  ----------  -----------  -----------  ----------  ----------  ---------- 
  Return on ordinary activities after tax attributable 
   to equity shareholders                                              (114)      (1,236)      (1,350)        (67)         292         225 
-------------------------------------------------------  -------  ----------  -----------  -----------  ----------  ----------  ---------- 
  Earnings per share -- basic and diluted                      6      (1.7)p      (18.2)p      (19.9)p      (1.0)p        4.3p        3.3p 
 
 
 
 
   There was no other Comprehensive Income recognised during the year. 
 
   The 'Total' column of the Income Statement is the Profit and Loss 
Account of the Company, the supplementary Revenue and Capital return 
columns have been prepared under guidance published by the Association 
of Investment Companies. 
 
   All Revenue and Capital items in the above statement derive from 
continuing operations. 
 
   The Company has only one class of business and derives its income from 
investments made in shares and securities and from bank and money market 
funds. 
 
   The accompanying notes are an integral part of the Financial Statements. 
 
   Balance Sheet 
 
 
 
 
                                        Year Ended         Year Ended 
                                      29 February 2020      28 February 2019 
                       Note Ref.    GBP'000     GBP'000    GBP'000     GBP'000 
-------------------  -----------  ----------  ---------  ----------  --------- 
  Fixed Asset 
   Investments at 
   Fair Value                  7                  4,601                  5,816 
  Debtors                      8          21                      2 
  Cash at Bank                           121                    266 
  Creditors                    9        (21)                   (12) 
-------------------  -----------  ----------  ---------  ----------  --------- 
  Net Current 
   Assets                                           121                    256 
-------------------  -----------  ----------  ---------  ----------  --------- 
  Net Assets                                      4,722                  6,072 
-------------------  -----------  ----------  ---------  ----------  --------- 
  Called Up Share 
   Capital                    10                    679                    679 
  Share Premium 
   Reserve                                          718                    718 
  Unrealised 
   Capital Reserve            11                  1,730                  2,649 
  Profit and Loss 
   Account                    11                  1,595                  2,026 
-------------------  -----------  ----------  ---------  ----------  --------- 
  Total Equity 
   Shareholders' 
   Funds                      11                  4,722                  6,072 
-------------------  -----------  ----------  ---------  ----------  --------- 
  Net Asset Value                               69.6p                  89.5p 
   Per Share 
 
 
   The accompanying notes are an integral part of the Financial Statements. 
 
   The statements were approved by the Directors and authorised for issue 
on 19 May 2020 and are signed on their behalf by: 
 
   Robin Goodfellow 
 
   Chairman 
 
 
 
   Statement of Changes in Equity 
 
 
 
 
                                                                                                                       Profit & Loss 
                                  Called up Share Capital     Share Premium Reserve     Unrealised Capital Reserve        Account        Total 
                                   GBP'000                     GBP'000                   GBP'000                          GBP'000        GBP'000 
------------------------------  --------------------------  ------------------------  -----------------------------  ---------------  ---------- 
 
    As at 1 March 2018              679                         718                       2,061                             2,389         5,847 
  Revenue return on ordinary 
  activities after tax              -                           -                         -                                 (67)           (67) 
 
  Expenses charged to capital       -                           -                         -                                 (44)           (44) 
  Current period losses on 
  disposal                          -                           -                         -                                  (8)           (8) 
  Current period gains on fair 
  value of investments              -                           -                         344                                 -            344 
  Prior years' unrealised 
  losses now realised               -                           -                         244                               (244)           - 
------------------------------  --------------------------  ------------------------  -----------------------------  ---------------  ---------- 
 
    Balance as at 
    28 February 2019                679                         718                       2,649                             2,026         6,072 
  Revenue return on ordinary 
  activities after tax              -                           -                         -                                 (114)         (114) 
  Current period losses on 
   disposal                       -                           -                         -                                      (239)       (239) 
  Current period losses on 
   fair value of investments        -                           -                         (997)                          -                (997) 
  Prior years' unrealised 
   losses now realised              -                           -                         78                             (78)             - 
------------------------------  --------------------------  ------------------------  -----------------------------  ---------------  ---------- 
  Balance as at 
   29 February 2020                 679                         718                       1,730                          1,595            4,722 
 
 
   The accompanying notes are an integral part of the Financial Statements. 
 
   Statement of Cash Flows 
 
 
 
 
                                           Year Ended           Year Ended 
                                         29 February 2020     28 February 2019 
                                             GBP'000              GBP'000 
------------------------------------  -------------------  ------------------- 
  Cash flows from operating 
  activities 
  Return on ordinary activities 
   before tax                                     (1,350)                  225 
  Adjustments for: 
  Loss on disposal of investments                     239                    8 
  Loss/(gain) on valuation of 
   investments                                        997                (344) 
  Increase in creditors                                 9                    2 
  (Increase)/decrease in debtors                     (19)                   21 
  Movement in investment debtors and 
  creditors                                             -                 (20) 
------------------------------------  -------------------  ------------------- 
  Outflow from operating activities                 (124)                (108) 
------------------------------------  -------------------  ------------------- 
  Cash flows from investing 
  activities 
  Purchase of investments                            (21)                (332) 
  Disposal of investments                               -                   62 
------------------------------------  -------------------  ------------------- 
  Outflow from investing activities                  (21)                (270) 
------------------------------------  -------------------  ------------------- 
  Cash flow from financing 
  activities                                            -                    - 
------------------------------------  -------------------  ------------------- 
  Decrease in cash at bank                          (145)                (378) 
------------------------------------  -------------------  ------------------- 
  Opening cash and cash equivalents                   266                  644 
------------------------------------  -------------------  ------------------- 
  Cash and cash equivalents at year 
   end                                                121                  266 
 
   The accompanying notes are an integral part of the Financial Statements. 
 
 
 
   Notes to the Financial Statements 
 
   Oxford Technology 3 Venture Capital Trust Plc is a public company and is 
limited by shares. 
 
   1. Principal Accounting Policies 
 
   Basis of Preparation 
 
   The Financial Statements have been prepared under the historical cost 
convention, except for the measurement at fair value of certain 
financial instruments, and in accordance with UK Generally Accepted 
Accounting Practice ("GAAP"), including Financial Reporting Standard 102 
-- 'The Financial Reporting Standard applicable in the United Kingdom 
and Republic of Ireland' ('FRS 102') and with the Companies Act 2006 and 
the Statement of Recommended Practice (SORP) 'Financial Statements of 
Investment Trust Companies and Venture Capital Trusts (revised 2018)' 
issued by the AIC. 
 
   The principal accounting policies have remained materially unchanged 
from those set out in the Company's 2019 Annual Report and Financial 
Statements (the only change relating to investment management fees no 
longer being partially allocated to capital, as explained below). A 
summary of the principal accounting policies follows. 
 
   FRS 102 sections 11 and 12 have been adopted with regard to the 
Company's financial instruments. The Company held all fixed asset 
investments at fair value through profit or loss. Accordingly, all 
interest income, fee income, expenses and gains and losses on 
investments are attributable to assets held at fair value through profit 
or loss. 
 
   The most important policies affecting the Company's financial position 
are those related to investment valuation and require the application of 
subjective and complex judgements, often as a result of the need to make 
estimates about the effects of matters that are inherently uncertain and 
may change in subsequent periods. These are discussed in more detail 
below. 
 
   Going Concern 
 
   The assets of the Company consist mainly of securities, one of which is 
AIM quoted, quite liquid and readily accessible, as well as cash. After 
reviewing the Company's forecasts and expectations, the Directors have a 
reasonable expectation that the Company has adequate resources to 
continue in operational existence for the foreseeable future. The 
Company therefore continues to adopt the going concern basis in 
preparing its Financial Statements. 
 
   Key Judgements and Estimates 
 
   The preparation of the Financial Statements requires the Board to make 
judgements and estimates regarding the application of policies and 
affecting the reported amounts of assets, liabilities, income and 
expenses. Estimates and assumptions mainly relate to the fair valuation 
of the fixed asset investments particularly unquoted investments. 
Estimates are based on historical experience and other assumptions that 
are considered reasonable under the circumstances. The estimates and the 
assumptions are under continuous review with particular attention paid 
to the carrying value of the investments. 
 
   Investments are regularly reviewed to ensure that the fair values are 
appropriately stated. Unquoted investments are valued in accordance with 
current IPEVC Valuation Guidelines, which can be found on their website 
at www.privateequityvaluation.com, although this does rely on subjective 
estimates such as appropriate sector earnings or revenue multiples, 
forecast results of investee companies, asset values of investee 
companies and liquidity or marketability of the investments held. 
 
   Although the Directors believe that the assumptions concerning the 
business environment and estimate of future cash flows are appropriate, 
changes in estimates and assumptions could result in changes in the 
stated values. This could lead to additional changes in fair value in 
the future, and in particular this could be the case in the short term 
if the Covid-19 lockdown is extended. 
 
   The material factors affecting the returns and net assets attributable 
to shareholders are the valuations of the investments and ongoing 
general expenses. 
 
   Functional and Presentational Currency 
 
   The Financial Statements are presented in Sterling (GBP). The functional 
currency is also Sterling (GBP). 
 
   Cash and Cash Equivalents 
 
   Cash and cash equivalents includes cash in hand, deposits held at call 
with banks, other short-term highly liquid investments with original 
maturities of three months or less and also include bank overdrafts. 
 
   Fixed Asset Investments 
 
   The Company's principal financial assets are its investments and the 
policies in relation to those assets are set out below. 
 
   Purchases and sales of investments are recognised in the Financial 
Statements at the date of the transaction (trade date). 
 
   These investments will be managed and their performance evaluated on a 
fair value basis and information about them is provided internally on 
that basis to the Board.  Accordingly, as permitted by FRS 102, the 
investments are measured as being fair value through profit and loss on 
the basis that they qualify as a group of assets managed, and whose 
performance is evaluated, on a fair value basis in accordance with a 
documented investment strategy.  The Company's investments are measured 
at subsequent reporting dates at fair value. 
 
   In the case of investments quoted on a recognised stock exchange, fair 
value is established by reference to the closing bid price on the 
relevant date or the last traded price, depending upon convention of the 
exchange on which the investment is quoted. In the case of AIM quoted 
investments this is the closing bid price. 
 
   In the case of unquoted investments, fair value is established by using 
measures of value such as the price of recent transactions, earnings or 
revenue multiples, discounted cash flows and net assets.  These are 
consistent with the IPEVC Valuation Guidelines. 
 
   Gains and losses arising from changes in fair value of investments are 
recognised as part of the capital return within the Income Statement and 
allocated to the Unrealised Capital Reserve. 
 
   In the preparation of the valuations of assets the Directors are 
required to make judgements and estimates that are reasonable and 
incorporate their knowledge of the performance of the investee 
companies. 
 
   Fair Value Hierarchy 
 
   Paragraph 34.22 of FRS 102 regarding financial instruments that are 
measured in the Balance Sheet at fair value requires disclosure of fair 
value measurements dependent on whether the stock is quoted and the 
level of the accuracy in the ability to determine its fair value. The 
fair value measurement hierarchy is as follows: 
 
   For Quoted Investments: 
 
   Level 1: quoted prices in active markets for an identical asset. The 
fair value of financial instruments traded in active markets is based on 
quoted market prices at the Balance Sheet date. A market is regarded as 
active if quoted prices are readily and regularly available, and those 
prices represent actual and regularly occurring market transactions on 
an arm's length basis. The quoted market price used for financial assets 
held is the bid price at the Balance Sheet date. 
 
   Level 2: where quoted prices are not available (or where a stock is 
normally quoted on a recognised stock exchange that no quoted price is 
available), the price of a recent transaction for an identical asset, 
providing there has been no significant change in economic circumstances 
or a significant lapse in time since the transaction took place. The 
Company held no such investments in the current or prior year. 
 
   For investments not quoted in an active market: 
 
   Level 3: the fair value of financial instruments that are not traded in 
an active market is determined by using valuation techniques. 
 
   These valuation techniques maximise the use of observable data (e.g. the 
price of recent transactions, earnings/revenue multiple, discounted cash 
flows and/or net assets) where it is available and rely as little as 
possible on entity specific estimates. 
 
   There have been no transfers between these classifications in the year 
(2019: none). The change in fair value for the current and previous year 
is recognised in the Income Statement. 
 
   Income 
 
   Investment income includes interest earned on bank balances and from 
unquoted loan note securities, and dividends.  Fixed returns on debt are 
recognised on a time apportionment basis so as to reflect the effective 
yield, provided it is probable that payment will be received in due 
course.  Dividend income from investments is recognised when the 
shareholders' rights to receive payment have been established, normally 
the ex-dividend date. 
 
   Expenses 
 
   All expenses are accounted for on an accruals basis and are charged 
wholly to revenue. Historically investment management fees were charged 
75% to capital and 25% to revenue. However, the Directors have 
determined that a more appropriate current split is to charge these fees 
100% to revenue since the company is a small late life VCT no longer 
raising new capital. This modification to the policy has been applied 
this year. There is no change to the total return, nor to distributable 
reserves. Any applicable performance fee will continue to be charged 
100% to capital. Due to the small amounts involved we have not restated 
the previous year. 
 
   Revenue and Capital 
 
   The revenue column of the Income Statement includes all income and 
revenue expenses of the Company.  The capital column includes gains and 
losses on disposal and holding gains and losses on investments.  Gains 
and losses arising from changes in fair value of investments are 
recognised as part of the capital return within the Income Statement and 
allocated to the appropriate capital reserve on the basis of whether 
they are realised or unrealised at the Balance Sheet date. 
 
   Taxation 
 
   Current tax is recognised for the amount of income tax payable in 
respect of the taxable profit for the current or past reporting periods 
using the applicable tax rate. The tax effect of different items of 
income/gain and expenditure/loss is allocated between capital and 
revenue return on the "marginal" basis as recommended in the SORP. 
 
   Deferred tax is recognised on an undiscounted basis in respect of all 
timing differences that have originated, but not reversed, at the 
balance sheet date, except as otherwise indicated. 
 
   Deferred tax assets are only recognised to the extent that it is 
probable that they will be recovered against the reversal of deferred 
tax liabilities or other future taxable profits. 
 
   Financial Instruments 
 
   The Company's principal financial assets are its investments and the 
policies in relation to those assets are set out above.  Financial 
liabilities and equity instruments are classified according to the 
substance of the contractual arrangements entered into. 
 
   An equity instrument is any contract that evidences a residual interest 
in the assets of the entity after deducting all of its financial 
liabilities. Where the contractual terms of share capital do not have 
any terms meeting the definition of a financial liability then this is 
classed as an equity instrument. 
 
   The Company does not have any externally imposed capital requirements. 
 
   Reserves 
 
   Called up Share Capital -- represents the nominal value of shares that 
have been issued. 
 
   Share Premium Reserve -- includes any premiums received on issue of 
share capital. Any transaction costs associated with the issuing of 
shares are deducted from the Share Premium Reserve. 
 
   Unrealised Capital Reserve arises when the Company revalues the 
investments still held during the period and any gains or losses arising 
are credited/charged to the Unrealised Capital Reserve. 
 
   When an investment is sold, any balance held on the Unrealised Capital 
Reserve is transferred to the Profit and Loss Account as a movement in 
reserves. 
 
   The Profit and Loss Account represents the aggregate of accumulated 
realised profits, less losses and dividends. 
 
   Dividends Payable 
 
   Dividends payable are recognised as distributions in the Financial 
Statements when the Company's liability to make payment has been 
established. This liability is established for interim dividends when 
they are declared by the Board, and for final dividends when they are 
approved by shareholders. 
 
   2.  Investment Income 
 
 
 
 
                            Year Ended           Year Ended 
                          29 February 2020     28 February 2019 
                              GBP'000              GBP'000 
---------------------  -------------------  ------------------- 
  Dividends received                     1                    2 
---------------------  -------------------  ------------------- 
  Total                                  1                    2 
 
 
   All of the Company's income has been generated in the United Kingdom 
from its investment portfolio. 
 
   3.  Investment Management Fees 
 
   Investment Management Fees are accounted for on an accruals basis and 
are charged wholly to revenue.  In the previous year, the investment 
management fee was charged 75% to capital. 
 
 
 
 
                                   Year Ended           Year Ended 
                                 29 February 2020     28 February 2019 
                                     GBP'000              GBP'000 
----------------------------  -------------------  ------------------- 
  Investment management fee                    61                   59 
----------------------------  -------------------  ------------------- 
  Total                                        61                   59 
 
 
   In the year to 29 February 2020 the manager received a fee of 1% of the 
net asset value as at the previous year end (2019: 1%). Oxford 
Technology Management is also entitled to certain monitoring fees from 
investee companies and the Board reviews the amounts. 
 
   A performance fee is payable to the Investment Manager once original 
shareholders have received a specified threshold in cash for each 100p 
(gross) invested. The original threshold of 100p has been increased by 
compounding that portion that remains to be paid to shareholders by 6% 
per annum with effect from 1 March 2010, resulting in the remaining 
required threshold rising to 103.2p at 29 February 2020, corresponding 
to a total shareholder return of 139.2p after taking into account the 
36.0p already paid out (36.0p + 103.2p = 139.2p). 
 
   After this amount has been distributed to shareholders, each extra 100p 
distributed goes 80p to the shareholders and 20p to the beneficiaries of 
the performance incentive fee, of which Oxford Technology Management 
receives 15p. 
 
   No performance fee has become due or been paid to date. Any applicable 
performance fee will be charged 100% to capital. Expenses are capped at 
3%, including the management fee, but excluding Directors' fees and any 
performance fee. 
 
   4. Other Expenses 
 
   All expenses are accounted for on an accruals basis.  All expenses are 
charged through the income statement except as follows: 
 
 
   -- those expenses which are incidental to the acquisition of an investment 
      are included within the cost of the investment; 
 
   -- expenses which are incidental to the disposal of an investment are 
      deducted from the disposal proceeds of the investment. 
 
 
 
 
                                    Year Ended           Year Ended 
                                  29 February 2020     28 February 2019 
                                      GBP'000              GBP'000 
-----------------------------  -------------------  ------------------- 
  Directors' remuneration                       21                   21 
  Auditors' remuneration                         9                    8 
  London Stock Exchange Fees                    10                    9 
  FCA Fees                                       6                    6 
  Other expenses                                 8                   10 
-----------------------------  -------------------  ------------------- 
  Total                                         54                   54 
 
 
   5. Tax on Ordinary Activities 
 
   Corporation tax payable at 19.0% (2019: 19.0%) is applied to profits 
chargeable to corporation tax, if any. The corporation tax charge for 
the period was GBP nil (2019: GBP nil). 
 
 
 
 
                                           Year Ended           Year Ended 
                                         29 February 2020     28 February 2019 
                                             GBP'000              GBP'000 
------------------------------------  -------------------  ------------------- 
  Return on ordinary activities 
   before tax                                     (1,350)                  225 
------------------------------------  -------------------  ------------------- 
  Current tax at standard rate of 
   taxation                                         (256)                   43 
  Unrealised losses/(gains) not 
   taxable                                            189                 (65) 
  Realised losses not taxable                          45                    1 
  Excess management expenses carried 
   forward                                             22                   21 
------------------------------------  -------------------  ------------------- 
  Total current tax charge              -                    - 
 
 
   Unrelieved management expenses of GBP2,129,540 (2019: GBP2,014,783) 
remain available for offset against future taxable profits. 
 
   6. Earnings per Share 
 
   The calculation of earnings per share (basic and diluted) for the period 
is based on the net loss of GBP1,350,000 (2019: profit of GBP225,000) 
attributable to shareholders divided by the daily weighted average 
number of shares 6,785,233 (2019: 6,785,233) in issue during the period. 
 
   There are no potentially dilutive capital instruments in issue and, 
therefore, no diluted returns per share figures are relevant. The basic 
and diluted earnings per share are therefore identical. 
 
   7. Investments 
 
 
 
 
                                        AIM quoted investments    Unquoted investments       Total 
                                                Level 1                  Level 3          investments 
                                                GBP'000                  GBP'000            GBP'000 
------------------------------------  ------------------------  ----------------------  ------------- 
  Valuation and net book amount: 
   Book cost as at 28 February 2019               409                     2,758               3,167 
  Cumulative revaluation to 28 
  February 2019                                   (50)                    2,699               2,649 
------------------------------------  ------------------------  ----------------------  ------------- 
  Valuation at 28 February 2019                            359                   5,457          5,816 
------------------------------------  ------------------------  ----------------------  ------------- 
  Movement in the year: 
  Purchases at cost                                          -                      21             21 
  Disposals - cost                                           -                   (317)          (317) 
  Disposals -- revaluation                                   -                      78             78 
  Revaluation in year                                     (31)                   (966)          (997) 
------------------------------------  ------------------------  ----------------------  ------------- 
  Valuation at 29 February 2020                            328                   4,273          4,601 
------------------------------------  ------------------------  ----------------------  ------------- 
  Book cost at 29 February 2020                            409                   2,462          2,871 
  Cumulative revaluation to 29 
   February 2020                                          (81)                   1,811          1,730 
------------------------------------  ------------------------  ----------------------  ------------- 
  Valuation at 29 February 2020                            328                   4,273          4,601 
------------------------------------  ------------------------  ----------------------  ------------- 
 
 
   All investments are initially measured at their transaction price. 
Subsequently, at each reporting date, the investments are valued at fair 
value through profit and loss, and all capital gains or losses on 
investments are so measured. 
 
   The changes in fair value of such investments recognised in these 
Financial Statements are treated as unrealised holding gains or losses. 
 
   Subsidiary Company 
 
   The Company also holds 100% of the issued share capital of OT3 Managers 
Ltd at a cost of GBP1. 
 
   Results of the subsidiary undertaking for the year ended 29 February 
2020 are as follows: 
 
 
 
 
              Country of    Nature of     Turnover     Retained     Net Assets 
              Registration  Business                   profit/loss 
OT3 Managers  England and   Investment 
Ltd           Wales         Manager         GBP60,715      GBP0         GBP1 
 
 
   Consolidated group Financial Statements have not been prepared as the 
subsidiary undertaking is not considered to be material for the purpose 
of giving a true and fair view. The Financial Statements therefore 
present only the results of Oxford Technology 3 Venture Capital Trust 
plc, which the Directors also consider is the most useful presentation 
for shareholders. 
 
   8.  Debtors 
 
 
 
 
                                          29 February 2020    28 February 2019 
                                               GBP'000             GBP'000 
--------------------------------------  ------------------  ------------------ 
  Prepayments, accrued income & other 
   debtors                                              21                   2 
--------------------------------------  ------------------  ------------------ 
  Total                                                 21                   2 
 
 
   The amount at 29 February 2020 includes GBP12,000 receivable from Oxford 
Technology Venture Capital Trust Plc (OT1) (2019: GBP nil). See note 13. 
 
   9. Creditors 
 
 
 
 
                             29 February 2020    28 February 2019 
                                  GBP'000             GBP'000 
-------------------------  ------------------  ------------------ 
  Creditors and accruals                   21                  12 
-------------------------  ------------------  ------------------ 
  Total                                    21                  12 
 
 
   10. Share Capital 
 
 
 
 
                                                    29 February 2020    28 February 2019 
                                                     GBP'000             GBP'000 
------------------------------------------------  ------------------  ------------------ 
  Allotted, called up and fully paid: 6,785,233 
   (2019: 6,785,233) ordinary shares of 10p each      679                 679 
 
 
   11.   Reserves 
 
   When the Company revalues its investments during the period, any gains 
or losses arising are credited/charged to the Income Statement. Changes 
in fair value of investments are then transferred to the Unrealised 
Capital Reserve. When an investment is sold any balance held on the 
Unrealised Capital Reserve is transferred to the Profit and Loss Account 
as a movement in reserves. 
 
   Distributable reserves are GBP1,595,000 as at 29 February 2020 (2019: 
GBP2,026,000). 
 
   Reconciliation of Movement in Shareholders' Funds 
 
 
 
 
                                          29 February 2020    28 February 2019 
                                               GBP'000             GBP'000 
--------------------------------------  ------------------  ------------------ 
  Shareholders' funds at start of year               6,072               5,847 
  Return on ordinary activities after 
   tax                                             (1,350)                 225 
--------------------------------------  ------------------  ------------------ 
  Shareholders' funds at end of year                 4,722               6,072 
 
 
   12. Capital Commitments 
 
   The Company had no commitments at 29 February 2020 or 28 February 2019. 
 
   13.  Related Party Transactions 
 
   OT3 Managers Ltd, a wholly owned subsidiary, provides investment 
management services to the Company with effect from 1 July 2015 for a 
fee of 1% of net assets per annum. During the year, GBP60,715 was paid 
in respect of these fees (2019: GBP58,465). No amounts were outstanding 
at the year end. 
 
   At the year end, an amount of GBP12,000 was owed by OT1, a company with 
a common board of directors to OT3, for expenses paid late in February 
2020 on behalf of OT1.  This amount is included in note 8 within 
"Prepayments, accrued income & other debtors". Immediately after the 
year end, this amount was refunded by OT1. 
 
   14.  Financial Instruments 
 
   The Company's financial instruments comprise equity and loan note 
investments, cash balances and debtors and creditors. The Company holds 
financial assets in accordance with its investment policy of investing 
mainly in a portfolio of VCT -- qualifying unquoted securities whilst 
holding a proportion of its assets in cash or near cash investments in 
order to provide a reserve of liquidity. The risk faced by these 
instruments, such as interest rate risk or liquidity risk is considered 
to be minimal due to their nature.  All of these are carried in the 
accounts at fair value. 
 
   The Company's strategy for managing investment risk is determined with 
regard to the Company's investment objective.  The management of market 
risk is part of the investment management process and is a central 
feature of venture capital investment. The Company's portfolio is 
managed with regard to the possible effects of adverse price movements 
and with the objective of maximising overall returns to shareholders. 
 
   Investments in unquoted companies, by their nature, usually involve a 
higher degree of risk than investments in companies quoted on a 
recognised stock exchange, though the risk can be mitigated to a certain 
extent by diversifying the portfolio across business sectors and asset 
classes, though VCT rules limit the extent to which suitable Qualifying 
investments can be bought or sold. 
 
   The Company's portfolio is concentrated for various reasons, including 
the age of the VCT, exits within the portfolio and the Company's policy 
of seeking to return excess capital to shareholders. No new funds have 
been raised since 2010. No investments in new portfolio companies have 
been made since 2012. The overall disposition of the Company's assets is 
regularly monitored by the Board. 
 
   Classification of financial instruments 
 
   The Company held the following categories of financial instruments, all 
of which are included in the balance sheet at fair value, at 29 February 
2020 and 28 February 2019: 
 
 
 
 
                                          29 February 2020    28 February 2019 
                                               GBP'000             GBP'000 
--------------------------------------  ------------------  ------------------ 
  Financial assets at fair value 
  through profit or loss 
  Fixed asset investments                            4,601               5,816 
--------------------------------------  ------------------  ------------------ 
  Total                                              4,601               5,816 
--------------------------------------  ------------------  ------------------ 
  Financial assets 
   measured at amortised cost 
  Cash at bank and in hand                             121                 266 
  Debtors                                               21                   2 
--------------------------------------  ------------------  ------------------ 
  Total                                                142                 268 
--------------------------------------  ------------------  ------------------ 
  Financial liabilities measured at 
  amortised cost 
  Creditors                                              9                   2 
  Accruals                                              12                  10 
--------------------------------------  ------------------  ------------------ 
  Total                                                 21                  12 
 
 
   Fixed asset investments (see note 7) are valued at fair value. Unquoted 
investments are carried at fair value as determined by the Directors in 
accordance with current venture capital industry guidelines. The fair 
value of all other financial assets and liabilities is represented by 
their carrying value in the balance sheet. The Directors believe that 
the fair value of the assets held at the year-end is equal to their book 
value. 
 
   The Company's creditors and debtors are initially recognised at fair 
value, which is usually the transaction price, and then thereafter at 
amortised cost. 
 
   15. Financial Risk Management 
 
   In carrying on its investment activities, the Company is exposed to 
various types of risk associated with the financial instruments and 
markets in which it invests. The most significant types of financial 
risk facing the Company are market risk, credit risk and liquidity risk. 
The Company's approach to managing these risks is set out below together 
with a description of the nature and amount of the financial instruments 
held at the Balance Sheet date. In addition, the Board considers that 
the impact of Covid-19 presents an additional risk that is worth 
flagging separately. 
 
   Market risk 
 
   The Company's strategy for managing investment risk is determined with 
regard to the Company's investment objective, as outlined on page 3. The 
management of market risk is part of the investment management process. 
The Company's portfolio is managed with regard to the possible effects 
of adverse price movements and with the objective of maximising overall 
returns to shareholders in the medium term. Investments in unquoted 
companies, by their nature, usually involve a higher degree of risk than 
investments in companies quoted on a recognised stock exchange, though 
the risk can be mitigated to a certain extent by diversifying the 
portfolio across business sectors and asset classes. The overall 
disposition of the Company's assets is regularly monitored by the Board. 
 
   Details of the Company's investment portfolio at the Balance Sheet date 
are set out on pages 20 to 28. 
 
   90.5% (2019: 89.9%) by value of the Company's net assets comprise 
investments in unquoted companies held at fair value. The valuation 
methods used by the Company for these assets include the price of recent 
transactions, earnings or revenue multiples, discounted cashflows and 
net assets. A 10% overall increase in the valuation of the unquoted 
investments at 29 February 2020 (28 February 2019) would have increased 
net assets and the total return for the year by GBP427,000 (2019: 
GBP546,000) disregarding the impact of the performance fee; an 
equivalent change in the opposite direction would have reduced net 
assets and the total return for the year by the same amount. 
 
   6.9% (2019: 5.9%) by value of the Company's net assets comprises equity 
securities quoted on AIM. A 10% increase in the bid price of these 
securities as at 29 February 2020 (28 February 2019) would have 
increased net assets and the total return for the year by GBP33,000 
(2019: GBP36,000) disregarding the impact of the performance fee; a 
corresponding fall would have reduced net assets and the total return 
for the year by the same amount. 
 
   Credit risk 
 
   There were no significant concentrations of credit risk to 
counterparties at 29 February 2020 or 28 February 2019. 
 
   Credit risk is the risk that a counterparty to a financial instrument 
will fail to discharge an obligation or commitment that it has entered 
into with the Company. The Board carries out a regular review of 
counterparty risk. The carrying values of financial assets represent the 
maximum credit risk exposure at the Balance Sheet date. 
 
   Liquidity risk 
 
   The Company's financial assets include investments in unquoted equity 
securities which are not traded on a recognised stock exchange and which 
generally are illiquid. They also include investments in AIM-quoted 
companies, which, by their nature, involve a higher degree of risk than 
investments on the main market. As a result, the Company may not be able 
to realise some of its investments in these instruments quickly at an 
amount close to their fair value in order to meet its liquidity 
requirements. 
 
   The Company's liquidity risk is managed and monitored on a continuing 
basis by the Board in accordance with policies and procedures laid down 
by the Board. 
 
   Covid-19 risk 
 
   At the time of writing there remains significant uncertainty with regard 
to the lasting effects on the world economy of Covid-19 although it is 
clear that UK economic growth will fall this year. The worst hit sectors 
have been airlines, travel, hospitality, oil and non-essential retail, 
while on the upside some biotech companies have found new opportunities. 
Investee companies have been creative in finding short term solutions 
but delays in restarting the economy will be very hard to accommodate 
without major pain. 
 
   16.  Control 
 
   Oxford Technology 3 Venture Capital Trust Plc is not under the control 
of any one party or individual. 
 
   17.  Events after the Balance Sheet Date 
 
   As referred to in the Chairman's Statement, the financial implications 
of the Covid-19 pandemic only really started to become apparent post the 
Balance Sheet date. Under the valuation rules we are required to produce 
valuations based on all the information that was known or should have 
been known to the Directors at 29 February 2020. Hence the valuations 
used to assess the Company's NAV at 29 February 2020 did not take into 
account the implications of any possible lock down, nor the global oil 
market collapse that again only manifested itself in March 2020. 
 
   The Board and Investment Adviser have sought to assess the impact on 
valuations at mid-May. Using latest bid prices, and the Directors' 
normal determinants of fair value, we estimate that the NAV per share 
has reduced to an unaudited 56.6p (a drop of 19%), mainly due to a 
valuation drop in Ixaris resulting from further airline travel 
disruption. This change has been treated as an unadjusting event after 
the Balance Sheet date since the major impacts of Covid-19 on UK 
lockdown and worldwide airline transport disruption happened after 
period end. 
 
   As highlighted on page 27, ImmBio had made 3 vaccine grant applications 
at the end of 2019: in two of them, active discussions with the grant 
award bodies have continued post year end. Unfortunately, in May 2020, 
ImmBio were advised that they had been unsuccessful in accessing one of 
the remaining two grants. Dialogue continues regarding the third 
application. Separately, they have also decided to launch the 
development of a vaccine against Covid-19. Both of these have been 
treated as a non-adjusting post Balance Sheet events. 
 
   This announcement contains inside information for the purposes of 
Article 7 of Regulation (EU) 596/2014 
 
   Company Number: 4351474 
 
 
 
 
 
   Note to the announcement: 
 
   The financial information set out in this announcement does not 
constitute statutory accounts as defined in the Companies Act 2006 ("the 
Act").  The Balance Sheet as at 29 February 2020, Income Statement and 
Statement of Cash Flows for the period then ended have been extracted 
from the Company's 2020 statutory financial statements upon which the 
auditor's opinion is unqualified and does not include any statement 
under the section 495 of the Act. 
 
   The Annual Report and Accounts for the year ended 29 February 2020 will 
be filed with the Registrar of Companies. 
 
   Copies of the documents will be submitted to the National Storage 
Mechanism and are available for inspection at: 
https://www.globenewswire.com/Tracker?data=YxZk2wf7RDTIqUbSbpD0wknXelG6d_jgIZzK6SJ8cnC1g8Z3OyMXr6ZWy5vmAK4kT_J8HzesCslAdCkj-pqkXtBo6OYdobiIXg7tb1F5RpfkMCMO_5HLD6Q0ZClomYOkelvYCU1z6ZcCnbR6OvdZAJ8_dc7yp6BOkge6yvcXWCle-uM527GS1dhxPfCNaqfp_tqOq3BKJ0WjCQJf2TkDKfvs1uOnRfGoHspL6FbV5whNZdYwvV5r3AurBr15locjZITpn-kJ-09CENCUdjdCCh7dfKhUswbUc3Om3PX81T18NYFlr90yoW-3zXcTXb5WukASGGPyRnavMI7erkeaxlpSiWN9wcoQxMLbKyd3jT0= 
http://www.mornningstar.co.uk/uk/NSM 
 
 
 
 

(END) Dow Jones Newswires

May 20, 2020 02:00 ET (06:00 GMT)

Copyright (c) 2020 Dow Jones & Company, Inc.

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