Downing FOUR VCT plc Downing Four Vct Plc : Half-yearly Report For The Six Months Ended 30 September 2015
November 24 2015 - 6:07AM
UK Regulatory
TIDMDO1O
Downing FOUR VCT plc
Half-Yearly Report for the six months ended 30 September 2015
Performance Summary
31 March 30 Sep
30 Sept 2015 2015 2014
pence pence pence
DSO Ordinary Share pool
Net asset value per DSO Ordinary Share 58.3 53.8 93.5
Net asset value per DSO A Share 0.1 0.1 0.1
Cumulative dividends per DSO Ordinary
Share 80.0 80.0 40.0
Adjusted for performance incentive
estimate (7.0) (7.0) -
Total return per DSO Ordinary Share and
DSO A Share 131.4 126.9 133.6
DSO B Share pool
Net asset value per DSO B Share 72.4 70.2 74.6
Net asset value per DSO C Share 0.1 0.1 0.1
Cumulative dividends per DSO B Share 32.5 32.5 30.0
Adjusted for performance incentive
estimate (4.0) (2.8) -
Total return per DSO B Share and DSO C
Share 101.0 100.0 104.7
DSO D Share pool
Net asset value per DSO D Share 76.0 80.7 81.2
Cumulative dividends per DSO D Share 15.0 15.0 12.5
Total return per DSO D Share 91.0 95.7 93.7
31 Jan
2015
DP67 Share pool pence
Net asset value per DP67 Share 62.9 63.6
Cumulative dividends per DP67 Share 21.8 17.8
Total return per DP67 Share 84.7 81.4
30 Nov
2014
DP2011 General Share pool pence
Net asset value per DP2011 Gen Ord Share 78.9 75.8
Net asset value per DP2011 Gen A Share 6.1 6.0
Cumulative dividends per DP2011 Gen Ord
Share 20.0 17.5
Total return 105.0 99.3
DP2011 Structured Share pool
Net asset value per DP2011 Struc Ord Share 80.8 78.2
Net asset value per DP2011 Struc A Share 6.3 6.2
Cumulative dividends per DP2011 Struc
Share 20.0 17.5
Total return 107.1 101.9
DP2011 Low Carbon Share pool
Net asset value per DP2011 Low Carbon
Share 90.0 88.9
Cumulative dividends per DP2011 Low Carbon
Share 21.4 18.7
Total return per DP2011 Low Carbon Share 111.4 107.6
CHAIRMAN'S STATEMENT
Introduction
I am pleased to present the merged Company's first Half-Yearly Report
since the recent merger and renaming of the Company. I would also like
to take this opportunity to welcome new shareholders who have become
members as a result of the merger.
The six-month period ended 30 September 2015 has been a busy one for the
Company. In addition to the merger, the DSO Ordinary and DSO B Share
pools have completed significant realisations as part of their planned
exit strategy. There has also been some investment activity in the other
share pools, but at lower levels.
Merger
The merger of four VCTs was completed on 20 July 2015. The merger was
effected by Downing Structured Opportunities VCT 1 plc acquiring Downing
Planned Exit VCT 2011 plc, Downing Planned Exit VCT 6 plc and Downing
Planned Exit VCT 7 plc on 21 July 2015. The merged company was renamed
as Downing FOUR VCT plc immediately following the transaction.
The merged entity now has net assets of GBP63 million which reduces the
burden of running costs to shareholders. The merger also brings benefits
in terms of complying with the VCT regulations and provides some
additional flexibility in the process of unwinding the various
investment portfolios at the appropriate times.
Board
As part of the merger, two new directors have joined the Company's
board. Sir Aubrey Brocklebank and Russell Catley were both previously
directors of Downing Planned Exit VCT 2011 plc and have extensive
experience in the VCT and relevant sectors. Sir Aubrey has taken on the
role of Senior Independent Director. I welcome both to the Board and
look forward to working alongside them.
Share pools
The Company now has seven share pools each with a different profile.
This report includes sections covering each share pool; I will give a
brief overview of each pool.
DSO Ordinary Share Pool
The DSO Ordinary Share pool has nearly completed the task of disposing
of its last remaining investments. One group of investments (the
Quadrate companies) remains, from which the Company is expected to exit
in the coming weeks.
As at 30 September 2015, the Total Return to Shareholder of one DSO
Ordinary Share and one DSO A Share is 131.4p compared to the cost net of
tax relief for original investors of 70p (after adjusting for a
performance incentive estimated to be 7.0p per Ordinary share).
As soon as the final holdings are sold, final dividends will be declared,
which should bring the investment to a satisfactory conclusion for
investors.
DSO B Share Pool
The DSO B Share pool is now in the process of disposing of its
investments in order to return funds to shareholders. The Company is now
in a positon to declare the first substantial return of capital and
accordingly will pay a special dividend of 40.0p per DSO B Share on 23
December 2015 to Shareholders on the register at 4 December 2015.
As at 30 September the net asset value ("NAV") of a combined holding of
one DSO B Share and one DSO C Share stood at 72.5p. Assuming certain
targets are met, it is estimated that a performance incentive of 4.0p
per DSO B Share will be payable. This results in a total return to
shareholders (NAV plus dividends paid to date less performance
incentive) of 101.0p compared to the cost, net of tax relief, for
original investors of 70.0p.
Plans for further investment realisations are expected to complete
shortly and as they do the Board will give consideration to declaring a
further dividend. Shareholders should however note that the process of
exiting from the full investment portfolio is expected to take some time
to complete and it is estimated that it may not be finalised for 12
months or so.
DSO D Share Pool
The DSO D Share NAV stood at 76.0p at 30 June 2015, a decrease of 4.7p
per share or 5.8% over the period after adjusting for the dividends of
2.5p per share paid in the period. Total Return now stands at 91.0p per
share, compared to the cost for Shareholders who invested in the D Share
offer, net of income tax relief, of 70.0p.
Unfortunately, the DSO D Share pool has suffered some setbacks during
the period in its nightclub and pub investments. As the D Share pool is
still in its initial 5-year period there is some time for this lost
ground to be recovered. It is intended that the return of funds to
Shareholders will commence in August 2017.
DP67 Share Pool
The DP67 share pool arose from the merger with Downing Planned Exit VCT
6 plc and Downing Planned Exit VCT 7 plc. As at 30 September 2015, the
NAV of the DP67 Shares stood at 62.9p per share. This represents an
increase of 3.3p (4.0%) (after adjusting for the dividends paid) over
the period since 31 January 2015, being the date of the last report to
Shareholders.
Total Return for DP67 shareholders now stands at 84.7p per share.
The DP67 Share pool will be commencing the process of realising its
investments to return funds to investors in 2018.
DP2011 General Share Pool
As at 30 September 2015, the NAV of a combined holding of one DP2011
General Ordinary Share and one DP2011 General A Share stood at 85.0p per
share. This represents an increase of 5.7p or 7.0% (after adjusting for
the dividends paid) over the period since 30 November 2014, being the
date of the last report to Shareholders.
Total Return for DP2011 General Shareholders now stands at 105.0p
compared to the cost for Shareholders who invested in the original offer,
net of income tax relief, of 70.0p
The DP2011 General Share pool will commence the process of realising its
investments to return funds to investors in 2016.
DP2011 Structured Share Pool
As at 30 September 2015, the NAV of a combined holding of one DP2011
Structured Ordinary Share and one DP2011 Structured A Share stood at
87.1p per share. This represents an increase of 5.2p or 6.2% (after
adjusting for the dividends paid) over the period since 30 November
2014, being the date of the last report to Shareholders.
Total Return for DP2011 Structured Shareholders now stands at 107.1p
compared to the cost for Shareholders who invested in the original offer,
net of income tax relief, of 70.0p.
The DP2011 Structured Share pool will commence the process of realising
its investments to return funds to investors in 2016.
DP2011 Low Carbon Share Pool
As part of the merger Low Carbon Shareholders received 0.935 new DP2011
Low Carbon Ordinary Shares in the Company for every Low Carbon Ordinary
Shares they previously owned in the original company. This was done to
rebase the cost of the original shares to 100p.
As at 30 September 2015, the NAV of the DP2011 Low Carbon Shares was
90.0p per share. This represents an increase of 3.8p or 4.2% (after
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