Dividends and return of cash to Shareholders

The Board has decided not to declare a fourth interim dividend, which would normally have been paid at the end of June, because of reduced cash inflows from the portfolio in the second half of the year, mainly as a result of reduced receipts from Onyx, and the continuing capital-constrained position of the Company.

Whilst the Board had considered declaring a reduced interim dividend reflecting the lower second half cash inflow, in light of the Wind-Down it considered it more appropriate to prioritise balance sheet strength and value preservation, in particular reducing debt.

This decision, which was not easy to take, aligns with a decision to suspend future dividends (other than as necessary to maintain investment trust status).  Clearly the aim of the Wind-Down is to significantly reduce drawings under the Company’s revolving credit facility and then return cash to shareholders as disposals are made.  Once the revolving credit facility has been significantly reduced the Board will reconsider its position on paying interim dividends if circumstances allow.

To maximise flexibility to return cash in an efficient and equitable manner, the Board is proposing the cancellation of the amount standing to the credit of the Company’s share premium account, stated in the Circular to be approximately GBP 757 million as at 31 March 2026.  

The Company intends to maintain its investment trust status, its listing on the premium segment of the Official List and trading in the Ordinary Shares on the Main Market of the London Stock Exchange. The Company anticipates continuing to pay dividends to the extent required to comply with the investment trust regime for so long as it is able to do so.