Portfolio Update

·2 min read

Molten Ventures VCT plc
Legal Entity Identifier: 2138003I9Q1QPDSQ9Z97
18 May 2022
Portfolio update and special dividend

Molten Ventures VCT plc today announces that it has exited its investment in Lyalvale Express Ltd, a leading UK manufacturer of shotgun cartridges, to Fiocchi Munizioni of Italy. The initial investment was made in 1998 by a VCT, which merged into Molten Ventures VCT in 2007, and the exit represents an IRR of 15.9% per annum.

In addition to the VCT board’s intention to pay an annual dividend of 5% of prevailing NAV per share, the board intends dividends to be supplemented by special dividends when justified through particularly profitable realisations, always assuming, of course, adequate distributable reserves which is currently the case. The board of the VCT is therefore pleased to announce that it intends to pay out to the VCT shareholders a substantial proportion of the profits from the sale of Lyalvale as a special dividend along with this year’s final dividend. This is expected to be a special dividend of 1.6 pence per share paid alongside the final dividend which is expected to be declared for payment in August and will paid on the current enlarged share capital post the final allotment of the recent offer for subscription on 8 April 2022.

Full details of the special dividend will be included in the Annual Report, expected to be published in July, which will be sent to Shareholders by post or email depending on how they have elected to receive shareholder communications.

Shareholders should be aware that since the March 2022 year end, the VCT has introduced a Dividend Reinvestment Scheme (DRIS). This means that Shareholders can elect to take their dividends as new shares in Molten Ventures VCT shares rather than in cash and, subject to the usual VCT conditions, will be eligible for 30% income tax relief on the sum reinvested. This is a tax efficient way for those shareholders, who prefer the capital value of their investment to be reinvested to achieve their investment objectives.

Shareholders can elect to enrol in DRIS via the Company’s Investor Portal:
Shareholders will need to register to use the portal if they have not already done so.

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