Approach

Our generalist approach, diverse portfolio and experienced investment team ensure British Smaller Companies VCT offers its shareholders a steady income through maximising Net Asset Value and tax-free dividends.

Operating throughout the UK we have access to a broad range of high quality businesses, of which we may see up to 1500 enquiries a year, but only choose to invest in the exceptional three or four.

Investment Objectives

• To build a portfolio that is capable of continuing to support the Company's ambition of maintaining a constant level of dividend.
• To maintain the Company's VCT status. Requiring the Company to invest at least 70% of its total assets in qualifying investments within 3 years.
• The Company intends to continue to broaden its portfolio of investments. By investing across a range of companies and sectors the Company reduces its exposure to particular markets and individual companies. An individual investment costing £1m would represent less than 3.35% of the enlarged Company's net asset value.

The Company's Portfolio currently includes 25 investments valued at £18.92 million made up of 13 unquoted and 12 quoted (mostly on AIM) investments.

To date the Company's investments have typically involved funding for management buy-outs, acquisition funding, business development and management buy-ins.

The Company looks for businesses with a strong, balanced and well motivated management team and seeks to support them in the creation of shareholder value. The maturity of certain businesses within the portfolio is expected to generate some interesting buy and build opportunities.

The majority of investments include an element of loan stock to enhance the security of the portfolio and to provide investment income for the Company.

Performance

Shareholders have benefited from annual dividends of 5.0p per year in the last three financial years and an average dividend of 4.6p per share in respect of the five years to 31 March 2010.

The Company has a track record of delivering strong investment performance as a platform to support the payment of tax free cash dividends averaging 4.6 pence per share over the last 5 years and of 50 pence per Ordinary Share since the Company's inception.  This level of dividend has been paid whilst increasing Net Asset Value to 109.5 pence per Share, giving a total return to Shareholders of 141.7 pence per Share.

In summary:

• Total return to original shareholders of 141.7p per Share as at 31 Dec 2009
• Annual tax free cash dividend of 5.0p per Share for each of the three years to 31 March 2010
• Performance consistently ranked by Trustnet in the top 5 best performing VCTs (both NAV growth and share performance) over five years
• Diversified mature portfolio of existing investments
• Experienced investment team
• The Company is well placed to take advantage of any economic upturn
• The Directors believe that the short and medium term is likely to offer some excellent investment opportunities
• British Smaller Companies VCT won the 'Best Shareholder Communication Award for VCT Reports and Accounts' by the Association of Investment Companies (AIC) in May 2009

Directors

Helen Sinclair - Chairman
Starting in investment banking, Helen spent nearly 8 years at 3i plc focusing on MBO and growth capital investments. She later co-founded Matrix Private Equity raising a successful technology fund, the Matrix Venture Fund VCT plc. She subsequently became Managing Director of Matrix Private Equity before moving to take on a portfolio of non-executive Director roles in 2005. She is currently a non-executive Director of The Income & Growth VCT plc, Matrix Income & Growth 4 VCT plc and Spark Ventures plc.

Richard Last
Richard Last is a Fellow of the Institute of Chartered Accountants in England and Wales with substantial experience in the IT software and services sectors, and is Chairman and non-executive Director of Patsystems plc and Arcontech Group plc (both financial software businesses listed on AIM). He is also a non-executive Director of Lighthouse Group plc and of Corero Group plc, both AIM listed, and of British Smaller Technology Companies VCT 2 plc which is listed on the London Stock Exchange. In addition he is also a Director and shareholder of a number of private companies including the IT companies Sphinx CST Limited and APD Communications Limited. He is non-executive Chairman of CSE Global UK Limited, a subsidiary of a Singapore Stock Exchange listed company.

Philip Simon Cammerman
Has over 20 years of industrial experience in engineering and technology orientated industries and has worked in both the USA and the UK. He has spent the last 25 years in the venture capital industry and was Chairman of YFM Private Equity Limited and a Director of YFM Group (Holdings) Limited until he retired in April 2008. He has been responsible for a wide range of venture capital deals in a variety of industries including software, computer maintenance, engineering, printing, safety equipment, design and textiles. He is a non-executive Director of British Smaller Technology Companies VCT 2 plc and Pressure Technologies plc. He has been a Director of the Company since its establishment as a venture capital trust.

Robert Martin Pettigrew
Has more than 20 years experience in the development of emerging businesses and, in particular, the commercial exploitation of new technologies. He co-founded The Generics Group of companies (renamed Sagentia) in 1986, which is one of the country's leading technology consulting and investment groups and was a key member of the team that took the company public in December 2000. He retired from The Generics Group at the end of 2002 to pursue independent investment activities. He is an investor-director on the Boards of a number of technology companies, including Sphere Medical Limited, Timberpost Limited, Xeros Ltd and Acal Energy Limited (of which he is Chairman). He is also a non-executive Director of British Smaller Technology Companies VCT 2 plc.

Reports

Below are a number of links to the Company's communications to shareholders. If there is any information you cannot find or if you have any queries, please contact Investor Services on 0800 854 057

Latest Annual Accounts

• British Smaller Companies VCT Annual Report for the year ended 31 March 2009
• British Smaller Companies VCT Annual Report for the year ended 31 March 2008

Latest Interim Accounts

• British Smaller Companies VCT Interim Report to 30 September 2009
• British Smaller Companies VCT Interim Report to 30 September 2008

Announcements

Below are a number of links to the Company's communications to shareholders. If there is any information you cannot find or if you have any queries, please contact Investor Services on 0800 854 057

Latest announcements

• British Smaller Companies VCT Annual Financial Report Announcement for the year to 31 March 2010
• British Smaller Companies VCT Circular to Shareholders April 2010
• British Smaller Companies VCT Share Allotment Announcement 6 April 2010
• British Smaller Companies VCT Share Allotment Announcement 1 April 2010
• British Smaller Companies VCT Offer Update - close of Offer 30 March 2010
• British Smaller Companies VCT Top Up Offer Document
• British Smaller Companies VCT potential transaction announcement March 2010
• British Smaller Companies VCT Interim Management Statement to 31 December 2009
• British Smaller Companies VCT plc DRIS Share Allotment January 2010
• British Smaller Companies VCT Purchase of Own Securities and Total Voting Rights December 2009
• British Smaller Companies VCT Dividend Reinvestment Scheme Terms and Conditions and Mandate Form November 2009
• British Smaller Companies VCT Unaudited Interim Results and Interim Management Statement to September 2009
• British Smaller Companies VCT Interim Management Statement to 30 June 2009
• British Smaller Companies VCT DRIS Share Allotment August 2009
• British Smaller Companies VCT Document Re Annual Report for year end 31 March 2009 and AGM Statement August 2009
• British Smaller Companies Circular to Share Holders July 2009
• British Smaller Companies VCT Purchase of Own Securities and Total Voting Rights July 2009
• British Smaller Companies VCT Annual Financial Report Announcement 31 March 2009
• British Smaller Companies VCT DRIS Share allotment February 2009
• British Smaller Companies Share Allotment and New Articles of Association January 2009
• British Smaller Companies VCT Interim Management Statement to 31 December 2008
• British Smaller Companies VCT Dividend Reinvestment Scheme Mandate Form
• British Smaller Companies VCT Dividend Reinvestment Scheme December 2008
• British Smaller Companies VCT Document Re Interim Report to 30 September 2008 and Circular
• British Smaller Companies VCT Unaudited Interim Results and Interim Management Statement to 30 September 2008
• British Smaller Companies VCT Prospectus
• British Smaller Companies VCT Share Buy Back 30 September 2008
• British Smaller Companies VCT AGM