25th Apr 2019 17:26
LONDON (Alliance News) - Downing Two VCT PLC and Downing Three VCT PLC on Thursday reported a decline in net asset value in 2018 for all of their share classes.
Downing Two reported net asset value per F share for 2018 of 28.7 pence, down sharply from 69.9p a year earlier, while NAV per G and K share declined by 26% to 60.9p and by 6.6% to 91.3p, respectively.
Similarly, Downing Three saw a fall in net asset value per F share to 28.4p from 69.6p, with NAV per H and J share down by 38% to 51.3p and by 6.1% to 88.9p, respectively.
"It is disappointing to have to report that there have been negative developments in a number of investee companies in the later part of the year," said Chair Hugh Gillespie.
The F share pool in each of the VCTs holds a portfolio of 10 investments with a total value of GBP3.1 million. Both Downing Two and Downing Three paid a dividend of 37.0p per F share in the year.
The G share pool has now started to realise its investments to return funds to shareholders during the year, Downing Two said. As at December 31, the pool held 14 investments with a total value of GBP14.2 million.
During the year the investment company paid a dividend of 12.5p per G share.
Downing Two also said the K share pool holds 17 investments with a total value of GBP10.6 million. Due to VCT regulations, the K share pool is effectively prohibited from paying dividends before 2020.
During 2018, Downing Two repurchased and cancelled 47,000 G shares and 16,275 K shares for GBP38,000 and GBP17,000, respectively.
Meanwhile, Downing Three said its H share pool completed its initial investment phase during the year, with 13 investments held as at December 31, worth GBP6.6 million. The dividend paid for this class of shares totalled 5.0p in 2018.
The J share pool holds 16 investments with a total value of GBP7.5 million, Downing Three said. The company proposed to pay a final dividend of 2.5p per J share on June 14.
During the year, Downing Three repurchased and cancelled 19,400 H shares and 19,725 J shares for a GBP15,940 and a GBP18,677, respectively.
Shares in Downing Three closed untraded at 18.50 pence on Thursday, and Downing Two at 20.00p.