1st Mar 2019 17:43
LONDON (Alliance News) - Maven Income & Growth VCT 3 PLC said Friday it has cut its total dividend by 25% in its most recent year after its net asset value per share dropped on a share subscription.
At the end of its financial year on November 30, the venture capital trust's net asset value had increased to GBP42.4 million from GBP34.0 million.
However, its net asset value per share fell 15% to 61.49 pence from 72.35p after the number of shares in issue rose 47% to 69.0 million from 47.0 million. This was the result of a share subscription that raised GBP20 million.
The company reduced its dividend for the year to 10.95p per share from 14.52p per share. It said it had paid out 82.17p per share in tax-free dividends since its launch and that "the effect of paying dividends is to reduce the [net asset value] of the company by the total cost of the distribution".
The company completed 17 venture capital trust-qualifying net and follow-on investments in its financial year.
Maven Income & Growth VCT 3 Chair Atul Devani said: "The key objectives for the year ahead are to maintain a steady investment rate, to ensure that the capital deployment targets are achieved, and that the portfolio continues to grow, by securing some of the best growth companies across the UK regions.
"It may, however, take time for the full benefits of this more active investment phase to translate into a meaningful increase in Shareholder returns, as the growth profile of younger and earlier stage companies is more difficult to predict.
"During this transitional phase, with over 60% of the holdings in the portfolio, by value, still invested in more established private companies, there remains a stable and mature asset base that is capable of continuing to support Shareholder returns in the years ahead."
Shares in Maven Income & Growth VCT 3 closed down 1.8% at 56.00 pence on Friday.
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