Pennine AIM VCT in share buy-back
Article Date: Aug 07 2007Pennine AIM VCT has completed its fourth transaction in its own shares within two months. In total, it has paid around £200,000 to buy back 324,000 shares, representing about two per cent of its market capitalisation.
Since the first of the buy-backs on 5 June, the VCT’s share price has risen 6.7 per cent, to 63.5 pence.
The company paid its shareholders a dividend of 3p this year, which it says represents a yield of 5 per cent, equivalent to 8.4 per cent for a higher-rate taxpayer.
According to the directors of the 11-year-old company, it is now a ‘mature VCT’ and ‘unlikely to show significant growth’. Their stated aim is to overcome the problem of a lack of liquidity in the company’s shares by offering reliable dividends, making it an attractive income stock.
Pennine AIM VCT invests mainly, but not exclusively, in companies listed on the junior market. Of its 20 largest investments by value, 15 are AIM-listed, while four are unquoted and one is listed on the main market.
Its successful investments include social housing specialist Connaught, professional network Revenue Assurance Group, and dentistry services provider Oasis Healthcare. Among its less fortunate punts are bathroom and kitchen retailer Waterline and home care provider Supporta.