REG - Gresham HouseRE VCT2 Gresham House REVCT - Dividend and Update

Gresham House Renewable Energy VCT 2Announcement

21/12/2022 07:00

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RNS Number : 3886K  Gresham House Renewable EnergyVCT2   21 December 2022

21 December 2022

 

 

GRESHAM HOUSE RENEWABLE ENERGY VCT 2 PLC

(the "Company", "VCT 2")

Dividend and Update

The Directors of Gresham House Renewable Energy VCT 2 PLC ("VCT 2") and
Gresham House Renewable Energy VCT 1 PLC ("VCT 1") announce a dividend of 2p
per share for the year ended 30 September 2022. The dividend will be paid on
27 January 2023 to Shareholders on the register as at the close of business on
20 January 2023. The ex-dividend date is 19 January 2023.

This level of dividend is lower than has been paid historically in years up to
2020 (no dividend was paid in 2021) but the Company has faced exceptional
costs in the past two financial years. These costs have mainly been associated
with the need for remediation work on the portfolio of solar assets, which are
aging and hence needed expenditure to replace old equipment to restore their
performance levels. The Board is pleased to report that the results of these
works have been positive and that indications are that performance levels are
satisfactory and in line with expectations. In addition, there have been costs
associated with the proposed winding down of the Company and the sale of
investment assets in accordance with shareholders wishes as expressed in the
Continuation Vote in March 2021.

 

The Board appointed EY to manage the sale of the solar assets in June 2021.
Selling solar assets such as those owned by the Company is typically a
prolonged process but this sale has not run as smoothly as we would have
wished. One complicating factor has been the uncertainty surrounding the grid
connection at South Marston, as referred to in the Interim Report. The
situation at South Marston is not yet fully resolved and it could still delay
the completion of the sale of a significant proportion of the portfolio. In
addition, widespread political and economic turmoil in 2022 has led to
volatility and turbulence, which makes it more difficult to complete a sale in
an orderly fashion at good value.

 

Exclusivity for the purchase of the solar assets by a well- regarded buyer
expired just before the market turmoil caused by the mini budget. The
resulting uncertainty in financial markets, combined with the proposed price
caps and taxes on electrical generation have made negotiations hard to
progress. However, it is hoped that with more settled markets in the New Year,
and certainty over the terms of the new taxes that a sale can be progressed.

 

A further update will be given when we announce the year-end results at the
end of January. The Board will also consider an interim dividend later in the
year.

 

END

 

For further information, please contact:

 Gresham House Asset Management  Renewablevcts@greshamhouse.com (mailto:Renewablevcts@greshamhouse.com)
 Investor Relations              Tel: 020 7382 0999

 JTC (UK) Limited                GreshamVCTs@jtcgroup.com (mailto:GreshamVCTs@jtcgroup.com)
 Company Secretary
Tel: 020 3846 9774

 

LEI: 213800GQ3JQE2M214C75

 

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