23rd Oct 2024 16:21
(Alliance News) - Downing Strategic Micro-Cap Investment Trust PLC on Wednesday said its net asset value fell nearly 90% in the first half of its financial year, as the company progresses its previously-announced wind down.
The London-based investment trust swung to a pretax profit of GBP1.7 million during the six months that ended August 31, from a pretax loss of GBP3.3 million the year before.
However, net asset value per share was 7.83 pence on August 31, falling 88% from 65.71p at the year-end on February 29. Net asset value also dropped 88% to GBP3.6 million from GBP30.6 million at the year-end.
The company declared a further dividend of 2.2p per share to be paid on November 22, unchanged from its fourth special interim dividend paid on August 23. This brought the total dividend to 63.9p.
The total return in the six-month period, including dividends, was 5.8%, compared to 4.9% on the FTSE AIM All Share.
Chair Hugh Aldous said: "We made it clear at the end of last year that both the board and all our larger shareholders were of the view that, as the company was small and its market unappreciated, we should begin the process of a managed wind down, returning capital to shareholders.
"Then in March of this year, two of our larger shareholders, and supports of wind down, sold their respective positions to Milkwood Capital Ltd, who then used their consequent holding to oppose our intended process for implementing that shareholder vote, and who then sought to replace the board with their nominees and thereby take over the direction of the company and its management contract for themselves. They failed on both counts. The associated proceedings were nevertheless tiresome and expensive for shareholders.
"Once the remaining investments have been realised (and we are giving our manager scope to do that over the next few months for anticipated value), our objective, preceded yet by a further modest dividend, is to put the company into liquidation."
Shares in Downing Strategic Micro-Cap Investment Trust were up 1.8% at 6.74 pence each on Wednesday afternoon.
By Emily Parsons, Alliance News reporter
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