The Lemon Fool

A very encouraging annual report today from British Smaller co's, headline being appreciation of 24.9% on opening assets after taking into account the divis paid through the period.
Also a decent interim management statement from British Smalle co's 2 (BSC) with unchanged value in the first quarter when the market was already going down.
I always feel put off by the rather high costs on buying fresh shares in these 2 vct's, so although I add most years I never put as much in as I do with those vct's which cheaper up front costs, yet it appears that perhaps I should have been less parsimonious....

barchid wrote:A very encouraging annual report today from British Smaller co's, headline being appreciation of 24.9% on opening assets after taking into account the divis paid through the period.
Also a decent interim management statement from British Smalle co's 2 (BSC) with unchanged value in the first quarter when the market was already going down.
I always feel put off by the rather high costs on buying fresh shares in these 2 vct's, so although I add most years I never put as much in as I do with those vct's which cheaper up front costs, yet it appears that perhaps I should have been less parsimonious....

Agreed - good results - BSV has a habit of making huge gains on one share at a time. Go Outdoors was a case in point.
To get cheap (er) new shares - join their dris scheme - no costs at all.

BBB
Indeed so and from memory up to a couple or so years ago their dris put you in at a 5% discount ?
But mine are in Crest as I find that simpler to manage than certificates.
Good to hear from you again, I guess you have been living up to your name !

I've been reading my BSV annual report and noticed that they paid a performance fee to YFM last year, all in accordance with the agreement.

There are two hurdles, total return and annual dividend. Interestingly the dividend hurdle goes up by RPI each year so it should start rising fairly fast in line with inflation and they will have to pay decent dividends if YFM are going to get performance fees in future.

RNS today stating that prospectus for a fund raise of £50m between the two vct's, BSV & BSC, plus the option to over allot by another £25m, will be published around the end of November.
This is one which traditionally only has a very modest amount available in their earlybird discount so worth bearing that in mind as that bit goes swiftly.

Both BSC & BSV are on a tear, special divi announced today for both, most encouraging news !

barchid wrote:Both BSC & BSV are on a tear, special divi announced today for both, most encouraging news !

The special dividend is 4.5p for BSV and 2.25p for BSC. To be paid 11th January 2023, Ex Div date 17/11/22

I'm pleased to see that these dividends are due to good exits:-

"The payment of the Special Dividend follows the successful exits from two separate investments in Springboard and Intelligent Office."

I wonder whether the tightening of cash rules a couple of years ago encourages more dividend paying rather than re-investing exit proceeds.

Kidman wrote:I'm pleased to see that these dividends are due to good exits:-

"The payment of the Special Dividend follows the successful exits from two separate investments in Springboard and Intelligent Office."

I wonder whether the tightening of cash rules a couple of years ago encourages more dividend paying rather than re-investing exit proceeds.

There seems to be that suggestion coming from some VCTs, with divis accompanied by words about reducing cash to meet the rules.

On the other hand, this is not really new: large capital-reducing dividends have always been a feature of the VCT world. Weren't there similar words back when Titan paid its first big divis from Graze and Zoopla and ... I forget what else?

Interim report issued this morning, RNS Number : 6244H.

Total return in period 1.3p, and,
Your Board has proposed a special dividend of 4.5 pence per ordinary share for the year ending 31 March 2023 which, when combined with the above dividends, will bring total dividends paid in the current financial year to 8.5 pence per ordinary share (2022: 9.0 pence per ordinary share). The special dividend will be paid on 11 January 2023 to shareholders on the register on 18 November 2022.