For immediate release 1 July 2008
SPARK VCT plc (formerly Quester VCT plc) (the "Company")
Statement by the Board concerning dividend policy and result of EGM
At the Extraordinary General Meeting of the Company held today in connection
with shareholders' approval of the new management performance incentive
arrangements (the "EGM"), the Board made the following statement concerning the
dividend policy of the Company.
Under the new management performance incentive arrangements, rewards under the
performance incentive scheme will be paid each year, based on year-on-year
total returns (net asset values plus cumulative dividends paid) achieved in
excess of a hurdle return of 5 per cent. of the opening net asset value each
year, starting from the net asset value at 31 December 2007, and will be
calculated as 20 per cent. of that excess. Full details are set out in the
circular to shareholders dated 12 June 2008 (the "Circular").
A number of shareholders have asked whether dividends would be paid at the same
time as payments under the scheme.
The Board considers that, in a portfolio composed largely of early stage
venture capital investments, a substantial upward revaluation of investments
(and therefore a substantial growth in year-on-year total return) should
normally be accompanied by a trade sale or IPO of one or more portfolio
companies, which could involve a cash realisation of the Company's investment
and enable a dividend to be paid out of the gain arising.
The Board wishes to announce that, in circumstances in which growth in the
year-on-year total return results in an entitlement arising under the
management performance incentive arrangements, the Board would also expect to
pay a dividend.
The resolution for the approval of the entry by the Company into the loan note
instrument and the issue of loan notes thereunder in the manner described in
the Circular (being the mechanism for implementation of the new management
performance incentive scheme) was duly passed as an ordinary resolution on a
show of hands at the EGM.
SPARK VCT plc
Nghi Tran 020 7851 7777