1 Jul 2015 17:35
Interim Update - 1 July 2015
Ventus 2 VCT plc ("the Company") is now fully invested, and the underlying assets of all investee companies will be fully operational by the end of 2015. The directors believe the Company is now in a position to provide clearer
guidance on future dividends and projected net asset values than has been possible in the past.
The directors believe that clear communication will enable shareholders and potential investors to more easily
compare the Company's shares with publicly-traded renewable infrastructure funds holding portfolios of assets similar to those of the Company. The directors believe that this is the best and fairest way to reduce the discount to net asset value of the Company's various share classes in the traded market.
The Company will henceforth publish interim updates in August and January each year to complement the annual reports and half-yearly reports published each year in May and October. The first of such interim updates is being published early so that shareholders have an opportunity to review it in advance of this year's Annual General Meeting. The directors intend to provide shareholders and potential investors with visibility as to the underlying cash flows of the Company's investments, as well as dividend targets and projected net asset values based on the valuation models used to value the Company's investments.
The interim report provides information on target dividends for each share class of the Company as well as a
discussion of the conversion of C and D shares into ordinary shares expected to take place in 2016. Dividends paid by Ventus 2 VCT plc are tax-free, setting the Company apart from other publicly-traded renewable energy infrastructure funds. For eligible VCT investors (i.e., UK Residents aged over 18 years), there is no liability to tax on dividends and no Capital Gains Tax on realised gains. An investment limit of £200,000 per person per tax year applies.
The renewable energy projects operated by investee companies are expected to generate strong and growing cash flows over a total lifespan of at least 25 years, with a significant portion of investee company revenues linked to the Retail Price Index. The value of the underlying renewable energy generation assets is largely uncorrelated to broader stock market indices.
The Company's AGM is to be held at 12.30pm on Tuesday, 21 July 2015, at the offices of Howard Kennedy,No. 1 London Bridge, London, SE1 9BG.
Click on the following link or paste into your web browser to view the Interim Update:
http://www.rns-pdf.londonstockexchange.com/rns/9262R_-2015-7-1.pdf
Issued on behalf of the Board
The City Partnership (UK) Limited
Company Secretary