21st Feb 2020 13:41
(Alliance News) - Downing Two VCT PLC and Downing Three VCT PLC on Friday both reported a third quarter decline in net asset value for all of their share classes, with an especially weak performance from their Jito Trading Ltd investments.
Shares in Downing Two VCT were untraded at 56.25 pence in London in afternoon trading, while Downing Three VCT's shares were also untraded, this time at 47.10p.
As at December 31, Downing Three VCT's F share class NAV was 26.3p, down from 31.4p at the end of September. Its H shares fell to a NAV of 33.2p from 43.5p and its J shares fell to 50.0p from 63.4p in the same period.
Downing Three VCT has made provisions against the value of a number of its H and J share pool investments.
The NAV of its J share pool lost 4.3p to Jito, which owns an Australian wood pellet manufacturing plant. Downing LLP, Downing Three VCT's investment manager, explained that issues with the plant prompted Jito to seek a buyer for the company and an advisor has been chosen to sell the business.
However, given current offers, Jito's shareholders would not recover any value from the sale, although an improved offer is being sought out.
While Downing Three VCT's H share pool did lose any value to Jito, its investments in SF Renewables (Solar) Ltd, Rockhopper Renewables Ltd, Indigo Generation Ltd and Ironhide Generation Ltd all declined in value due to a reduction in the value of their Indian solar farms.
Meanwhile, the NAV of Downing Two VCT's F shares declined to 26.5p from 31.6p and its G shares fell to 48.4p from 63.0p. In addition, its K shares were down at an NAV of 58.2p from 68.0p.
Its K shares also dropped thanks to Jito, this time by 4.4p, while Downing Two VCT also held investments in SF Renewables, Rockhopper Renewables, Indigo Generation, and Ironhide which all declined in value.
By Anna Farley; [email protected]
Copyright 2020 Alliance News Limited. All Rights Reserved.