Mobeus activity slows under new venture capital rules

10th Aug 2016 12:08

(ShareCast News) - Venture capital trust Mobeus Income & Growth posted its results for the six months ended 30 June on Wednesday, with net asset value total return per share for the half-year of 0.3% and share price total return per share for the half-year of 3.8%.The AIM-traded firm said shareholders received a final dividend in respect of the year ended 31 December 2015 of 7p per share on 31 May.Its board declared an interim dividend of 8.5p per share, payable on 20 September to shareholders on the register on 26 August, bringing total cumulative dividends paid to shareholders since inception to 89.8p per share.Mobeus also confirmed that two investments have been made under the new venture capital trust rules, into Redline Worldwide and MPB Group, totalling £1.69m."The result of the EU Referendum has triggered a period of UK economic uncertainty and volatility in financial markets," noted Mobeus chairman Clive Boothman."In this environment, we are continuing to take a cautious approach to investment valuations and the company's NAV total return in the period remained broadly the same."This half-year has also been a period of review and consolidation as the investment adviser develops and evaluates a pipeline of opportunities which comply with the company's new investment policy," Boothman explained.He said shareholders approved the revised investment policy at the company's AGM on 23 May.The new Policy was required to enable Mobeus to continue to comply with the rules of the VCT Scheme as amended by the Finance (No 2) Act 2015, enacted last November."In summary, the company may now only make new VCT investments in younger and smaller companies for growth and development purposes," Boothman said."As a consequence of the new, more restrictive criteria, a lower level of investment activity has occurred for the industry as a whole."The company's new investment level fell to £1.69m over the six months, which compared to £6.27m for the same period last year."Boothman said this lower level of new investment is consistent with the sharp decline in the generalist VCT industry's completed new investment over this same period.Independent research quoted by Mobeus showed that new investment across generalist VCTs as a whole fell by 66% in the period."Nevertheless, it is pleasing to report that the company has completed two new investments under the new policy," Boothman commented.