20th Jun 2016 09:08
LONDON (Alliance News) - Puma VCT 11 PLC on Monday said it expects to see its net asset value - the difference between its assets and liabilities - grow now that investment manager Puma Investments, a member of Shore Capital Group, has invested a substantial proportion of the funds raised by the venture capital trust.
Puma VCT 11 which raised GBP30.2 million an completing its launch in June 2015, reported a loss of GBP145,000 in the period to February 29, 2016, from September 1, 2014, due to its running costs exceeding income as the company reviewed investment opportunities.
Its net asset value was 96.18 pence as of February 29. No dividend was declared, as previously guided.
"Given the deployment of funds achieved to date, we expect the net asset value per share to grow in the current period provided that all investments and loans the company has made perform without problems," Chairman Harold Paisner said in a statement.
Puma VCT 11 said it expects to pay a regular annual dividend starting in April 2017, although it said there is no guarantee of such a payment. From that point, the venture capital trust hopes to achieve an average dividend payment equivalent to 5p per annum.
"Although there is increased demand from smaller companies seeking finance, the availability of bank finance continues to be restricted. Moreover the terms on which target companies can raise finance from banks remain problematic. This continues to drive the demand for our offering and should also allow us to continue to secure favourable terms when we offer finance," Paisner said.
"There are many suitable companies which are well-managed, in good market positions, and which can offer security and need our finance. We therefore believe the company is strongly positioned to select a portfolio which can deliver attractive returns to shareholders in the medium to long term," said Paisner.
By Samuel Agini; [email protected]; @samuelagini
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