Two portfolio exits have led PXN Growth VCT to propose a 5p-per-share special dividend as it seeks £10 million in new funding. Payment still needs Board approval and distributable reserves.
PXN Growth VCT's half-year report, covering the six months to 31 July 2026, was published on 6 October and updated on 9 October.
Two profitable exits have put a proposed 5p-per-share special dividend on the table, less than three years after the VCT's launch. PXN Investments is also seeking £10 million in new funding, with a further £10 million over-allotment facility available.
The payment is estimated for January 2027, but is not guaranteed. Investors in the first allotment and existing shareholders would qualify if they are on the share register at the record date. The Board must approve the dividend, and the VCT must have distributable reserves.
The report for the six months ended 31 July 2026 was published on 6 October and updated on 9 October.
The exits came from Manchester-based Street Group and AccessPay, returning 4.4x and 1.24x their investments respectively. Their early timing has allowed PXN to propose a distribution ahead of its original timetable. The special payment would be separate from a plan for annual dividends of 4% to 6% of prevailing net asset value per share. That programme is targeted to begin at the end of the 2027 financial year.
A one-off payout and a recurring dividend plan carry different levels of certainty.
The special dividend would reflect proceeds from two exits. The regular programme remains a target, subject to approval and available reserves. Those exits show realised value in two holdings; they do not establish how the rest of the portfolio will perform.
The half-year report was also lodged in the UK National Storage Mechanism, the official repository for regulated information. The available announcement confirms publication of the report, but does not confirm approval or payment of the proposed special dividend.
PXN reports a 10.4% increase in Net Asset Value total return from the VCT's April 2024 launch through July 2026. Its analysis compares that result with 38 VCT funds and places PXN Growth VCT among the market's best performers. PXN cautions that reporting periods and calculation methods differ, so the comparison is a guide rather than a like-for-like ranking. Dividend coverage matters to income investors elsewhere too, as this payout analysis illustrates.
The latest confirmed update is the half-year report covering the six months to 31 July 2026. The half-year report announcement was dated 6 October and updated on 9 October. It confirms publication of the report, not the size or payment date of a special dividend, or the results of the fundraising offer.
PXN says the offer will back a portfolio that includes Glasgow-based digital healthcare company Phlo and MAGIC AI, which makes an AI-powered fitness mirror. Phlo was named Fastest Growing Company of the Year at GP Bullhound's 2026 Northern Tech Awards. It also featured in The Sunday Times 100 Tech 2026.
MAGIC AI has more than trebled annual revenue for two years in a row. The Sunday Times listed it as Britain's fourth-fastest-growing hardware company. The Financial Times placed it 21st in its FT1000 list of Europe's fastest-growing companies for 2026.
The regional strategy sets PXN apart, but it does not guarantee performance. At July 31, 2026, about 64% of PXN Growth VCT's identifiable UK portfolio companies were outside London and the South East. PXN's analysis put the figure at about 34% across the ten largest VCTs. The manager draws on the networks of Praetura Ventures and Par Equity to find businesses in Northern England and Scotland. PXN says those regions receive a disproportionately small share of venture capital funding relative to their economic output and high-growth businesses.
A VCT pools investments across businesses, but that spread does not remove company-level risk or make future returns predictable. The proposed special dividend remains subject to Board approval and distributable reserves.
