Dividend and Update
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.
For further information, please contact:
Gresham House Asset Management
JTC (UK) Limited