20th Mar 2019 17:04
LONDON (Alliance News) - Mobeus Income & Growth 4 VCT PLC said its net asset value declined in 2018 due to losses incurred from the sale of its Fullfield Ltd and Hemmels Ltd interests.
As at December 31, the venture capital trust's net asset value per share stood at 84.79 pence, 2.1% below its 86.57p net asset value on the same date the year before.
Mobeus I&G 4 VCT sold its investment in vehicle cleaning and valet services firm Fullfield and received cash proceeds of GBP640,000 - realising a GBP550,000 loss.
Moreover, the trust sold its investment in classic car seller Hemmels for GBP230,000 for a realised loss of GBP280,000. This sale took place shortly after its March 2018 investment after it became apparent that Hemmels's financial situation and prospects did not meet expectations.
The company is proposing a final dividend of 4.00p per share, having declared no final dividend in 2017. This will take the dividends in respect of 2018 to 8.00p per share, less than half its 21.00p per share dividend in 2017.
A number of board changes will be made at Mobeus I&G 4 VCT in 2019, including the departure of Chair Christopher Moore and Director Andrew Robson. Successors have not yet been named.
Moore said: "Your board considers that your company is well positioned to prosper in the growth capital investment sector. Your board again cautions that investing in such earlier stage companies does involve increased risk and those that succeed often take longer to achieve scale. Returns, therefore, will take longer to emerge and will be more volatile.
"It is generally true that the least successful investments are likely to emerge or fail before the most successful contribute. This is likely to cause a slower rate of financial progress in the earlier years, although it should be offset by more significant gains in the longer-term."
Shares in Mobeus I&G 4 VCT closed untraded at 74.50 pence on Wednesday.
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