23rd Sep 2019 15:22
(Alliance News) - Baronsmead Venture Trust PLC and Baronsmead Second Venture Trust PLC on Monday announced changes to their annual dividend policies as the current 6.50 pence per share average "is no longer appropriate".
Both trusts said that they will use "a sum representing 7% of the opening net asset value" when framing annual dividend policy for a financial year. It will also aim to retain paying two dividends per year, an interim in September and a final payout after its annual general meeting in February or March.
The companies added: "Historically the VCT has paid a dividend yield of more than 7% per annum and the intention is to continue to exceed the target if investment performance allows."
The companies added that the guidelines "are not binding" and they retain a right to pay higher or lower dividends.
Both Baronsmead trusts said the number of shares in issue have and will rise even more through future fundraisers, making the current payout of 6.50p too high.
The proportion of early stage companies the trusts invest in has also risen, making timings of returns less predictable.
Shares in Baronsmead Venture Trust were 1.4% lower at 71.50p each and Baronsmead Second's stock was trading 1.3% lower at 73.50p.
By Eric Cunha; [email protected]
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