Maven eyeing up challenges in Brexit, regulatory changes

The London-listed firm reported a net asset value at period end of 66.63p per share after payment of the second interim and final dividends totalling 3.60p per share.

Its board declared an interim dividend of 2.40p per share, in line with last year.

During the period, new investments were completed in The GP Service (UK) and Rockar, and the board claimed to have a strong pipeline of new rule-qualifying private equity investments.

Looking ahead, Maven said while the full impact of the Brexit decision will become clearer over the coming months, the businesses in which it has invested will maintain or adapt their growth strategies as appropriate, with many exporters already seeing a short-term benefit from the devaluation of sterling against several major currencies.

“The directors are mindful that the introduction of the revised VCT legislation has imposed a number of restrictions on the types of businesses and transactions in which VCTs can invest,” it added.

“This will require the manager to focus on the provision of development capital or investing in businesses with growth finance requirements, at the expense of management buyout or acquisition based transactions which have traditionally offered more predictable returns.”

Maven said it was confident that the experienced investment resource available to its manager remained capable of sourcing high-quality opportunities which comply with the amended rules, whilst continuing to meet its investment quality criteria.

“Notwithstanding the impact of the recent legislative changes, your board remains committed to delivering its core objectives of achieving long term capital appreciation and generating maintainable levels of income for shareholders.

“The current portfolio of private company holdings offers the ability to maintain a regular yield for your company, and support future shareholder returns.”