• Strong investment performance
  British Smaller Companies VCT is an established company with a net asset value of £26.7 million, invested in some 25 companies. It is advised by YFM Private Equity, the 2007 VCT Manager of the Year , whose dedicated investment team has delivered the strong investment performance that has seen British Smaller Companies VCT remain as one of the fastest growing VCTs with a top 3 performance over 3 and 5 years.
  
  
• Consistent tax free dividend stream
  British Smaller Companies VCT is managed so as to maximise the level of tax-free dividends. The Offers will allow a further expansion of the existing portfolio and, as well as sharing in the returns from new investments, you will also benefit from income and gains generated by the current portfolio, which has consistently delivered dividends and growth. For example, dividends over the five financial years ended 30 September 2007 have totalled 19.5p per share and, in the same period, net asset values have increased by 37.7p per share, delivering a total growth of 88% over the period.
  
  
• Unique deal flow
  YFM Private Equity, part of the YFM Group, is the investment adviser for British Smaller Companies VCT. Through its ten regional offices and over forty investment staff, YFM Group considers over one thousand investment propositions every year and is currently the most active investor in the UK smaller company sector*. In the 12 months to 30 September 2007 the Company has invested £4.1 million in 7 companies. This level of deal flow enables British Smaller Companies VCT to be highly selective.
  
  
• Lower risk
  Investors will gain access to a mature portfolio of existing investments. In addition, there may also be situations for British Smaller Companies VCT to make follow-on investments in companies already backed by one or more of the other funds managed by the YFM Group. These opportunities are expected to reduce the investment risk below that which is normally associated with VCTs.

* Source: VCR Directory, comparing investment activity for 36 months ending 30 June 2007.