Net Asset Value Adjustment (Unaudited) (8872H)
June 06 2011 - 2:00AM
UK Regulatory
TIDMVEN2
RNS Number : 8872H
Ventus 2 VCT PLC
05 June 2011
Ventus 2 VCT plc (the "Company")
06 June 2011
Revised Valuations of Investments in Biomass Companies and
Adjustment to Net Asset Value (unaudited)
The Company has made three investments in companies building and
operating biomass power plants: PBM Power Limited ("PBM"),
Sandsfield Heat and Power Limited ("SHPL") and Twinwoods Heat and
Power Limited ("THPL"). PBM was the first of the three companies to
construct a biomass plant and commence generation. The plant at PBM
has experienced technical issues which have led to unplanned
outages. These issues have led the Board and the investment
manager, Climate Change Capital Limited ("CCC"), to re-assess the
generation expectations and operational expenditure requirements of
the plant. The Company has an investment in the ordinary shares of
PBM of GBP574,000 and is owed GBP530,000 by PBM in respect of
amounts that have been advanced to fund PBM's operating expenses.
The Board believes it is prudent at this stage to record
write-downs of the full balances of both the investment in the
ordinary shares of PBM and the amount receivable relating to PBM's
operating expenses. The total amount of the write-downs related to
PBM is therefore GBP1,104,000.
The issues experienced at PBM have led the Board to consider the
valuations of the investments in SHPL and THPL. The biomass power
plant at SHPL is operational, but has already experienced outages
and increased expenditures. The biomass power plant at THPL is not
yet operational. It is opportune to consider the financial impact
of these factors on the valuations of SHPL and THLP. The Board has
therefore decided to record unrealised write-downs on SHPL and THLP
of GBP950,000 and GBP400,000, respectively.
The effect of the write-downs of PBM, SHPL and THPL is to reduce
the Company's NAV by GBP2,454,000, or 10.00 pence per share. These
adjustments are as yet unaudited. The write-downs of the
investments in PBM, SHPL and THPL do not affect the Company's "C"
shares.
CCC is working with PBM, SHPL and THPL to address the
operational issues and improve the performance of the assets.
Further information about the investments in these three companies
will be contained in the Company's Annual Report for the year ended
28 February 2011.
Investment Manager
CCC has informed the Board that its lead manager for the
Company, Steve Read, has resigned his employment with CCC.
Enquiries should be directed to Robin Smeaton at The City
Partnership (UK) Limited on 0131 243 7210.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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