British Smaller Companies VCT plc and British Smaller Companies VCT2 plc - £30 million Joint Offers - OPEN
We are delighted to announce the joint Offers to raise a combined total of £30 million for BSC and BSC2. This year investors will have the choice to invest in either VCT or a combination of the two.
Bonus Shares for applications received and accepted on or before Friday 28 March 2014:
- 1.5% Loyalty Bonus Shares for Existing Shareholders and their partners
- 1.0% New Investor Bonus Shares
How to invest:
- Review the three Prospectus documents:
1.1. Securities Note – click here
1.2. Registration Document – click here
1.3. Summary Document – click here
- Complete the Application Form – at the back of the Securities Note
- Please contact your authorised financial adviser if you have any questions regarding making an investment.
- For any questions regarding the application, please call Tracey Nice at YFM on 0113 294 5055. No investment advice can be given by YFM.
We look forward to welcoming new Shareholders and thank all our existing Shareholders for their continued support.
The key highlights of the Offers are:
• 8.4 per cent per annum tax free dividend yield: based on each VCT’s target dividend policy, the initial Offer Prices less 30% income tax relief and assuming a 60:40 investment allocation between BSC and BSC2.
• Strong historical performance and consistent dividend history: since 2004, based on the initial Offer Prices, BSC and BSC2 have achieved annual tax free dividend yields of 10.0% and 9.0% respectively, equivalent to a blended rate of 9.6% assuming a 60% shareholding in BSC and a 40% shareholding in BSC2. If an investment had been made over the same period, BSC and BSC2 would have produced a total return over the net cost to investors of 229.6% and 97.6% respectively, equivalent to an annual return of 19.5% and 10.1%.
• Venture capital trust tax relief: 30% income tax relief on the value of the Offer Shares subscribed for, providing they are held for a minimum of five years. Dividends and capital gains from venture capital trusts are also tax-free.
• Mature and diversified portfolios: collectively the two VCTs have aggregate Net Assets of over £80 million and a combined portfolio of 38 investments, spread across a range of sectors, which diversifies risk and underpins each VCT’s future dividend stream.
• Experienced and proven Fund Manager: the Fund Manager, YFM Private Equity Limited, is a subsidiary of YFM Equity Partners LLP (“YFM”), and has a 30-year history of investing in fast-growing UK businesses and has been managing venture capital trusts since 1996. The Association of Investment Companies recently named BSC, one of the venture capital trusts YFM manages, the strongest venture capital trust performer over the last ten years.
• Successful investment strategy: both VCTs invest predominantly in established unquoted businesses across a broad range of sectors, where the Fund Manager believes there are good prospects for significantly expanding the size of those businesses, making them attractive for potential buyers or a stock market listing. YFM has realised 29 of its venture capital trust investments since 2004, generating an aggregate return of 2.4 times cost.
• Positive outlook for investment: YFM is continuing to see a high level and quality of investment opportunities, in part driven by the recent changes to the venture capital trust rules, which have widened the addressable market by increasing the amount that can be invested into a business in any one year and the size of businesses in which venture capital trusts can invest.
• Dividend Re-investment Scheme: compounding Investor returns through the tax efficient re-investment of dividends.
• Share buy-back policy providing improved liquidity: each of the VCTs has a policy of buying back Shares in the market at a discount of no more than 10% to the latest published Net AssetValue,subject to liquidity, applicable rules and regulations and market conditions.
Please refer to the Securities Note for further details - click here