1 Dec 2009 11:38
Joint announcement of Ventus VCT plc, Ventus 2 VCT plc and Ventus 3 VCT plc (the "Companies")
Investment in Redimo LFG Limited
The Companies have recently determined that operational issues with electricity generation equipment managed by one of their investee companies, Redimo LFG Limited, will have a greater than previously anticipated impact on the dividends that the investee company is able to pay to the Companies in the financial year ending 28 February 2010. This in turn will impact the final dividend that the Companies expect to be able to declare for the financial year ending 28 February 2010. Redimo LFG Limited owns a group of companies that operate engines generating electricity from landfill gas.
In addition to the operational issues, Redimo LFG Limited holds the only operating assets in the Companies' investment portfolios that have a significant element of electricity market risk in their offtake contracts and as such the revenues generated have also been adversely affected by low winter 2009/10 wholesale energy prices.
In view of the above circumstances, it is expected that the Companies will declare final dividends for the financial year ending 28 February 2010 but in each case the dividend will be lower than the final dividend declared in the previous financial year. The interim dividends that have been declared by each of the Companies are not affected and will be paid in January 2010 as planned.
The Investment Manager is in discussions with the investee company and its contractors regarding the operational issues and is aware that remedial work has already been undertaken. The early indications from the information supplied to the Investment Manager are positive, although a period of further operation is required before any firm conclusions can be drawn. The Investment Manager is liaising with the investee company's financial and other counterparties to assist in resolving any issues relating to the circumstances outlined in this announcement.
The Companies expect to publish their next interim management statements, including statements of net asset values for the financial quarter ended 30 November 2009, in due course.
The top-up offers launched on 18 November 2009, which seek to raise £3.5m through the issue of new ordinary shares in the Companies, remain open.
Enquiries should be directed to Steve Read (0207 939 5149 / 07825 540 773) or Matthew Ridley (0207 939 5350).