British Smaller Companies VCT Reports 1% NAV Growth and £60M Fundraising Initiative

Quarterly NAV ticks up, big cash balance, and a new raise on the way

British Smaller Companies VCT plc has nudged NAV per share up by 0.80p in the quarter to 30 June 2025, a 1.0% gain, taking NAV to 81.35p. Total Return – the sum of NAV plus all dividends ever paid – rose by the same 0.80p to 265.50p per share.

Behind the steady headline, there were chunky capital inflows, active buybacks, fresh investments, and a new fundraising initiative announced for the 2025/26 tax year.

Key takeaways at a glance

• NAV per share up 1.0% to 81.35p in the quarter; Total Return now 265.50p.
• Net assets rose to £288.4 million, helped by a £29.6 million allotment on 1 April.
• Portfolio valuation up £2.7 million; net operating income added £0.2 million.
• Cash and money market funds of £125.1 million – 43.4% of net assets – providing significant firepower.
• £8.7 million invested so far this financial year across new and follow-on deals.
• Dividend of 2.00p paid on 25 July; cumulative dividends now 186.15p. Adjusted NAV post-dividend is 79.35p.
• Intention to launch a new joint offer for up to £60 million (with up to £25 million over-allotment across the BSC VCTs).

NAV and Total Return: what moved the dial

NAV (net asset value) is the per-share value of the VCT’s assets after liabilities. Total Return adds all dividends paid over time to today’s NAV – a useful long-term yardstick for VCT investors.

During the quarter, the unquoted portfolio added £2.7 million of value, with a further £0.2 million of net operating income. That delivered the 0.80p uplift in NAV per share. The total NAV in pounds also reflected capital movements: a £29.6 million share allotment, partly offset by £1.2 million of buybacks.

Capital flows: new shares and buybacks

The final allotment from the 2024/25 fundraise landed on 1 April 2025, issuing 36,799,582 shares and bringing in £29.6 million. The Company also bought back 1,495,509 shares at 77.02p, costing £1.2 million, and held them in treasury. Versus the 30 June NAV of 81.35p, that buyback was at roughly a 5% discount – supportive for shareholders who remain invested.

At 30 June 2025, shares in issue stood at 354,482,730. Post period end, the 2.00p dividend triggered 1,515,132 shares via the dividend reinvestment scheme (DRIS), taking issued share capital to 355,997,862 ordinary shares with voting rights, with 35,694,505 shares held in treasury.

Dividends: paid and cumulative

Cumulative dividends at 30 June were 184.15p per share. The 2.00p interim dividend was paid on 25 July 2025, lifting cumulative dividends to 186.15p and reducing the last reported NAV by the same amount to 79.35p per share on an adjusted basis.

Cash and liquidity: plenty of dry powder

Cash and money market funds totalled £125.1 million, representing 43.4% of net assets. That is a substantial buffer to support follow-on rounds and new opportunities without needing to rush additional fundraising.

Metric	30 June 2025
NAV per share	81.35p
Total Return per share	265.50p
Net assets	£288.4 million
Unquoted investments	£159.0 million (55.2% of net assets)
Cash and money market funds	£125.1 million (43.4%)
Other net assets	£4.2 million (1.4%)

Investment activity: new deals and follow-ons

Deployment continued at a measured pace. In the quarter, £2.4 million went into a new investment, S4labour, with £0.6 million across existing portfolio companies Force24 and Relative Insight. After the quarter end, £1.8 million was invested into new portfolio company DynaRisk, and £3.9 million into AutomatePro, Fuuse and Panintelligence. That takes investment year-to-date to £8.7 million.

There was also a clean-up exit: the sale of the trade and liabilities of Wooshii was completed post period end with no proceeds, consistent with its minimal carrying value at 30 June.

Portfolio snapshot: top holdings and valuation moves

The ten largest holdings total £99.1 million, or 34.4% of net assets. Headline positions by valuation include:

• Matillion – £21.5 million
• Unbiased – £14.6 million
• Vypr – £10.9 million
• Xapien – £8.7 million
• AutomatePro – £8.4 million
• SharpCloud – £8.2 million
• Summize – £7.9 million
• DrDoctor – £6.4 million
• Workbuzz – £6.3 million
• Force24 – £6.3 million

The aggregate unquoted valuation was up £2.7 million over the quarter. Several assets saw positive uplifts on the back of revenue growth, offset by downward moves in Matillion (currency headwinds), Outpost (sector-specific pressures) and Wooshii (written down ahead of the disposal).

New joint offer for subscription: targeting up to £60 million

On 22 August, the Company announced its intention to launch a new joint offer for the 2025/26 tax year alongside British Smaller Companies VCT2 plc. The plan is to raise up to £60 million in aggregate, with over-allotment facilities of up to a further £25 million before issue costs (use of the over-allotment is at the boards’ discretion).

A prospectus is expected on or around 25 September, with applications opening one week later. Once available, documents will be on the BSC VCTs’ website: www.bscfunds.com.

Why this quarter matters

• Steady NAV progress: The 1% uplift is modest but underpinned by portfolio trading improvements and income, rather than one-off marks.
• Balance sheet strength: With 43.4% in cash and money market funds, the VCT has meaningful capacity to support winners and act on new deals.
• Active capital management: Buybacks at a discount support ongoing holders, while DRIS participation helps recycle dividends back into the fund.
• Pipeline signalled: Follow-on cheques to AutomatePro, Fuuse and Panintelligence post quarter end, plus new investments in S4labour and DynaRisk, suggest continued deal flow.

Risks and watchpoints

• FX and sector swings: Matillion’s valuation was impacted by foreign exchange movements; sector-specific challenges at Outpost remind us how quickly sentiment can turn.
• Realisations: The Wooshii outcome was neutral economically, but exits at strong multiples are what ultimately recycle cash and validate valuations. Not disclosed this quarter.
• Deployment versus cash drag: With a large cash balance and a potential new raise, pacing deployments into high-quality opportunities will be key to avoiding dilution of returns.
• Macro backdrop: The outlook flags inflation persistence, potential UK rate cuts, and geopolitical risks that could affect fundraising conditions and portfolio trading.

My take

This is a quietly constructive update. NAV inched up, portfolio momentum delivered a £2.7 million uplift, and the cash pile puts the Company in a strong position. The forthcoming joint offer – up to £60 million with a potential £25 million over-allotment across the BSC VCTs – signals continued ambition to scale, with a prospectus due around 25 September.

On the flip side, mark-downs in Matillion and Outpost show the environment remains patchy, and the nil-proceeds Wooshii tidy-up offers no boost to distributions. Even so, the combination of steady progress, disciplined buybacks and ample liquidity supports a cautiously optimistic stance, in line with the Manager’s own outlook.

Selected numbers from the quarter

Item	Figure
NAV per share (30 June 2025)	81.35p (+0.80p in the quarter)
Total Return per share	265.50p
Net assets	£288.4 million
Cash and money market funds	£125.1 million (43.4% of net assets)
Investments at fair value	£159.0 million (55.2%)
Quarterly portfolio uplift	£2.7 million
Net operating income	£0.2 million
Shares issued (1 April 2025)	36,799,582 for £29.6 million
Shares bought back (23 June 2025)	1,495,509 at 77.02p; £1.2 million cost
Dividend paid (25 July 2025)	2.00p per share; cumulative now 186.15p
Adjusted NAV post dividend	79.35p per share
YTD investment deployed	£8.7 million