24th Jun 2020 12:03
(Alliance News) - British Smaller Companies VCT PLC said Wednesday a reduction in investment valuations due to the coronavirus pandemic resulted in a year-on-year decline in net asset value fro financial 2020.
At March 31, the investment trust's net asset value stood at 64.5 pence per share, down from 74.3p a year ago. Total return fell year-on-year to 217.9p from 221.7p.
Realisations and loan repayments generated total proceeds of GBP20.2 million which delivered a profit over cost of GBP11.2 million of which GBP7.9 million was realised in financial 2020. The company made six new investments during the period worth GBP15 million in total.
The trust's investment portfolio, valued at GBP59.5 million at the start of the financial year, delivered a realised and unrealised net fall of GBP4.1 million, equivalent to a decrease in value for shareholders of 3.0p per share. Within the current portfolio there were GBP1.6 million of valuation gains offset by GBP13.5 million of downward movements.
Chair Helen Sinclair said: "It is difficult to provide forward-looking statements until the fall out from the current pandemic is clear, and we know what the general macro-economic implications are. In the meantime, it is reassuring that the portfolio has remained relatively resilient thus far, due to good levels of funding, low gearing and strong business models, and your company has good reserves of cash to support existing investee companies where it is in the company's best interests to do so."
British Smaller Companies declared a 2.0 pence interim dividend for the year ending March 31.
Shares in the trust were untraded at 60.00 pence each in London on Wednesday morning.
By Tapan Panchal; [email protected]
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