18th Jun 2020 15:34
(Alliance News) - Gresham House Renewable Energy VCT 1 PLC and Gresham House Renewable Energy VCT 2 PLC on Thursday reported a fall in first half net asset value and said that the Covid-19 pandemic had a minimal impact on the VCT's commercial operations.
For the six months to March 31, Gresham House Renewable Energy VCT 1 reported net asset value of 105.2 pence per share, down from 117.1p a year ago.
Gresham House Renewable Energy VCT 2 meanwhile saw NAV decline to 104.1p from 115.8p.
The investment trusts focused on solar assets said: "Overall performance in the first half of the year, which has a significantly lower contribution on annual performance than the second half of the year, has been below forecasts in generation as well as revenue terms.
Solar irradiation was weak during the winter months, with the strong sunshine in March coming too late to change the overall picture. Weaker technical performance from some of the older assets in the portfolio, and a decline in electricity power prices 31% down year on year to the end of March, that accelerated with the Covid-19 pandemic, also created headwinds."
Solar irradiance is the power per unit area received from the Sun in the form of electromagnetic radiation.
The VCTs expect a limit impact of the virus outbreak on its solar assets and believes that the long-term outlook for the portfolio as a whole remains positive, with returns from the installed base of assets expected to continue to generate steady cash flows despite the current challenging environment.
Shares in Gresham House Renewable Energy VCT 1 were un-traded at 103.50p each in London on Thursday afternoon. Gresham House Renewable Energy VCT 2 shares were also flat at 104.00p each.
By Tapan Panchal; [email protected]
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