NOT FOR
RELEASE, PUBLICATION OR DISTRIBUTION DIRECTLY OR INDIRECTLY (IN
WHOLE OR IN PART) IN, INTO OR FROM ANY JURISDICITON WHERE TO DO SO
WOULD COSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF
THE JURISDICITON.
THIS
ANNOUNCEMENT CONTAINS INSIDE INFORMATON FOR THE PURPOSES OF ARTICLE
7 OF THE MARKET ABUSE REGULATION (EU) 596/2014 AS IT FORMS PART OF
UK DOMESTIC LAW BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT
2018, AS AMENDED. ON THE PUBLICATION OF THIS ANNOUNCEMENT VIA A
REGULATORY INFORMATION SERVICE, THIS INSIDE INFORMATION IS NOW
CONSIDERED TO BE IN THE PUBLIC DOMAIN.
For immediate
release
9 May 2024
Amati AIM VCT plc
Strategic Review and Special
Dividend
In March, the Board announced that it was
considering the Company's strategic options in the light of the
ongoing challenges in the Alternative Investment Market
("AIM") and the resultant
impact on the Company's performance. As part of this review, the
Board has been working with the Company's investment manager, Amati
Global Investors Limited (the "Investment Manager") on a proposal to
widen the Company's investment strategy to facilitate investments
in a broader range of securities while continuing to comply with
the rules applicable to venture capital trusts ("VCTs"). While this opportunity has not
concluded, the Board is continuing to review the strategic
direction of the Company, with a view to evaluating whether there
are any alternative options which may be available to the Company
and in the best interests of shareholders.
As part of the review work undertaken to date,
the Board has considered what (if any) action the Company may take
to benefit shareholders in the near term. Following a review of the
Company's current high cash levels, limited new investment
opportunities on AIM and ongoing realisations from the portfolio,
the Board has decided that it is appropriate to return excess cash
to shareholders and so today to declare a special dividend of 10p
per share, a yield of 10.9 per cent. on the Company's net asset
value ("NAV") of 92.16p per
share as at 30 April 2024, expected to be paid on 10 June 2024 (the
"Special Dividend").
Further information on the reasons for, and the timing of, the
Special Dividend are given below.
Background
The Company invests primarily in AIM
traded companies. Throughout 2023 and continuing into 2024,
the Company undoubtedly faced one of the most hostile markets for
junior AIM companies since the financial crisis of 2008. There has
been much comment in the financial press in the past few weeks
about the difficulties being experienced in the UK stock markets
with no end yet in sight. This feels particularly acute in an
election year where paralysis of decision making appears to have
set in. Both major parties have signalled their ambitions to
address the problems of delisting and their intention to create a
better environment to maximise the potential for young and growing
UK companies to thrive once again in public markets. There is also
an apparent desire to encourage more direct investment from pension
funds into the smaller growth segment of the UK market. Any such
new policies will inevitably take time to work their way through to
the AIM sector. At the same time and somewhat contrarily, both the
major parties have made reference to the tax advantageous status of
AIM regarding inheritance tax and their desire to tackle or even
abolish it. This is continuing to have an unsettling effect on the
future of the AIM market itself.
While the Board is hopeful that
clarity and progress on such matters will emerge during the course
of the election year, the outlook remains cautious. With this in
mind, the Board is continuing to consider the Company's strategy
from a number of points of view and it is important that such
matters are given due time and consideration. Therefore, the
strategic review remains ongoing.
Special
Dividend
The Board aims to pay annual dividends of
around 5% of the Company's Net Asset Value at its immediately
preceding financial year end, subject to the Company's
distributable reserves and cash resources, and with the authority
to increase or decrease this level at the Directors' discretion. As
at 31 January 2024, the NAV was 94.7p. The Company paid an interim
dividend of 2.5p per share in November and a second interim
dividend of 2.5p per share in January, making a total for the year
of 5.0p per share, which was 5.3% of year end NAV.
In the period since the Company's year end, the
level of cash and current asset investments held by the Company has
remained high and, as at 30 April 2024, was sitting at £42.8m. Cash
and current asset investments are held mainly in a combination of
interest bearing overnight bank deposits and money market funds.
While such holdings have the benefit of liquidity, they do not
generate exposure to the investment opportunities shareholders have
entrusted the Company to find.
With the combination of the Company's cash
levels remaining high, ongoing realisations in the portfolio and
quality AIM investment opportunities remaining scarce, the Board
has considered how best to utilise the Company's current cash
levels. Following discussion with the Investment Manager and the
Company's advisers, the Board has today decided to make a
distribution to shareholders by way of the Special Dividend of
10p per share representing a yield of 10.9
per cent on the NAV of 92.16p per share as at 30 April
2024.
The Special Dividend will be paid on 10 June
2024 to shareholders on the Company's register of members at close
of business on 17 May 2024. The Company's shares will go
ex-dividend on 16 May 2024.
Dividend
Re-Investment Scheme ("DRIS")
There will be no DRIS available with the
Special Dividend.
Annual General
Meeting ("AGM")
The AGM this year will be held at
Barber-Surgeons' Hall, Monkwell Square, Wood Street, London EC2Y
5BL starting at 2pm on Thursday 13 June 2024. This will be followed
by presentations from the Investment Manager and investee
companies. Further details, together with the Notice of AGM, are
contained in the Company's Annual Report.
The Board recognises that the Company's AGM
represents an important forum for shareholders to put questions to
the Directors, to express their views on governance and to become
fully informed about matters relating to the AGM resolutions. We
understand that attending in person may not be possible for all
shareholders who wish to attend. Therefore, the Company intends to
also make available a live stream facility to allow shareholders to
watch and listen to the AGM and the presentations which follow. If
shareholders wish to use this facility, please register your
interest by emailing info@amatiglobal.com
and shortly ahead of the event the Investment Manager will
post a link and instructions on how to join the event on its
homepage at www.amatiglobal.com. Shareholders watching the AGM will
not be counted towards the quorum of the meeting and will not be
able to participate in the formal business of the meeting,
including asking questions and voting on the day. The Board
encourages shareholders to engage with the Board and the Investment
Manager. In addition to asking questions at the AGM, shareholders
can email any questions they may have on the business of the AGM
to info@amatiglobal.com by 7 June 2024.
The Investment Manager will publish questions together with answers
on the page dedicated to the AGM on the Investment Manager's
website prior to the AGM being held. The Investment Manager will
reply to any individual shareholder questions submitted by the
deadline of 7 June 2024, before the AGM.
Contact
us
The Board is always keen to hear from
shareholders. You can contact the Chair at:
AmatiAIMVCTChair@amatiglobal.com.
You can also find regularly updated information
on the Company, including a factsheet and performance data on the
Company's website: www.amatiglobal.com.
Enquiries:
Fiona Wollocombe, Chair
Amati AIM VCT plc
Email: info@amatiglobal.com
Important
Information
This announcement is released by the Company and
the information contained within this announcement is deemed by the
Company to constitute inside information for the purposes of
Article 7 of the UK version of the EU Market Abuse Regulation
(Regulation (EU) No.596/2014) which forms part of UK law by virtue
of the European Union (Withdrawal) Act 2018, as amended. Upon the
publication of this announcement via a Regulatory Information
Service, such information is now considered to be in the public
domain.
Legal Entity
Identifier (LEI): 213800HAEDBBK9RWCD25