The British Smaller Companies VCTs have announced a new share offer for up to £75m, comprised of £50m and a £25m overallotment option.

The VCT has total net assets of £415m and a portfolio of 42 companies and focuses on technology companies with a bias towards data, tech-enabled services and new media.

Over the five years to June 2024, the VCTs delivered a NAV total return of 68% and 61%.
The VCTs do not specify a dividend target.

Head of investment research at Wealth Club, Jonathan Moyes, commented that British Smaller Companies manager, YFM Equity Partners, has an “excellent reputation” and has built up a strong following among investors.

“Previous investments include, Unbiased, the financial advice marketplace that many advisers could not live without, and Manchester based Matillion, which provides a data analytics platform to corporates,” Moyes added.

“The VCTs have benefitted from a flurry of recent exits, which we expect will help maintain the VCTs formidable, if volatile, dividend record. The sale of in-store point of purchase display designer Displayplan returned £19.2m to the VCT in February, 9.6 times cost. In total, the VCT has sold £80.7m worth of businesses over the past two years.

“As the rapid closure of the Mobeus VCT offer has shown, popular VCTs can disappear quickly. The British Smaller Companies offering is unlikely to be around for long.”

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