British Smaller Companies VCT 2 Lowers Dividend Despite NAV Rise

LONDON (Alliance News) - British Smaller Companies VCT 2 PLC on Friday cut its dividend for 2017, despite a rise in net asset value.

The venture capital trust said its net asset value stood at GBP59.1 million, or 58.8 pence per share, up from GBP56.1 million, or 59.7 pence.

The total return for the year was 114.3 pence per share, up from the return of 112.2p the prior year, driven by GBP2.3 million underlying growth in the investment portfolio, almost entirely from value gains within the portfolio.

During the year, British Smaller Companies VCT 2 made two realisations, the first being Selima Holdings Co Ltd for GBP1.0 million and Harvey Jones Holdings Ltd for GBP560,000. Two full investments were also made, into Friska Ltd for GBP1.2 million and e2E Engineering Ltd for GBP600,000, as well as three follow-on investments totalling GBP570,000.

The total dividend for the year was 3.0 pence per share, down from 4.5p per share in 2016.

"The board recognises that the new regulatory environment for VCTs will change the portfolio's composition over time. New investments will be in growing, earlier-stage businesses that will be less able to fund debt instruments or pay dividends with the result that the company's ability to pay dividends will become increasingly dependent on the timing and amount of realisation proceeds," said Chairman Richard Last.

Shares in British Smaller Companies VCT 2 were untraded on Friday, last quoted at 53.50 pence.