Maven Income & Growth VCT 3 Net Asset Value Shrinks On Dividend Payout

9th Mar 2018 18:21

LONDON (Alliance News) - Maven Income & Growth VCT 3 PLC said Friday its net asset value fell in 2017 after it distributed a significant dividend to investors and raised fresh funds to invest.

For the year ended November 2017, net asset value per share fell to 72.35 pence from 90.45p the year prior. This was after it paid 18.27p in dividends during the year, including 14.52p announced in 2017.

"Dividends in respect of the year totalled 14.52p per share representing a 21.8% yield based on the share price at the year end," Chairman Atul Devani said. "Although this level of distribution is not expected to be sustained, your board remains committed to making distributions when realisations are achieved and to making regular income payments to shareholders."

NAV total return per share at the year end grew to 143.57p from 143.40p the year prior.

"This has been a dynamic and transformative year for your company," Devani added, "with significantly enhanced dividend payments, and a new share offer underway to replenish the NAV. It was also a very successful period in the ongoing construction of the long term portfolio, with the addition of nine new assets, across a wide range of high growth industries and sectors. In addition, there were a number of successful realisations during and shortly after the year end, although one of the larger portfolio company holdings suffered a write down in value, which constrained the overall performance for the year."

In September 2017, Maven VCT 3 launched a share offer which has so far raised GBP12.7 million.

"Notwithstanding the prevailing economic and regulatory challenges, your board remains confident in the future prospects for your company, which is continuing to build a diverse portfolio of qualifying investments that can deliver positive investor returns and generate attractive levels of tax-free distributions", Devani continued.

"Current activity levels are encouraging for both new investments and disposals, and the new assets being acquired are allowing your company to gain access to a portfolio of younger, high growth companies, which offer the prospect of achieving significant multiples of sums invested as they mature and are ultimately realised," Devani added. "These new investments are complementary to the more mature holdings in later stage companies, which continue to represent the majority of the investee portfolio."

Shares in Maven VCT 3 closed 3.8% lower at 64.00p on Friday.

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