(Alliance News) - Puma VCT 10 PLC and Puma VCT 11 PLC both reported a drop in net asset value on Thursday as both companies made provisions against the carrying value of their Warm Hearth investments due to difficult trading.
Puma VCT 10 and 11 made equal provisions of GBP1.5 million against the carrying value of Warm Hearth, which owns two freehold pubs, "to reflect difficult trading".
As at February 28, the end of each venture capital trust's financial year, Puma VCT 10's NAV per share stood at 67.14 pence, down 16% from 79.54p the year before. Puma VCT 11's NAV on February 28 was 83.06p, down 13% from 95.39p.
Puma VCT 11 paid an interim dividend of 5p per share in its year, up from nothing the year before. No final dividend is proposed. Puma VCT 10 is also not proposing a final dividend, having paid a 6p per share interim dividend, flat from the year before.
Harold Paisner, chair of Puma VCT 11, said: "We are naturally disappointed with the performance of our investment in Warm Hearth. However, we remain focused on generating attractive risk-adjusted returns for the company from both the qualifying and non-qualifying portfolio.
"Whilst there will probably be some further changes in the composition of the portfolio, the board expects to concentrate in the future on the monitoring of our existing investments and considering the options for exits in due course."
Puma VCT 10, meanwhile, has just passed its fifth anniversary. In accordance with its prospectus, Puma VCT 10 is now planning to hold a general meeting where it will put forward resolutions to place the company into members' solvent liquidation. This would see liquidators appointed to the company.
The liquidation would mean that the company would not have to abide by venture capital trust rule requiring 70% of VCT investment to be in qualifying holdings.
"Once such resolutions have been passed by shareholders, for a maximum period of three years, many of the VCT rules, including the 70% qualifying rule, are suspended whilst the company retains its VCT status of tax free distribution to UK taxpayers. The intention is to return the balance of the capital in an orderly way, with disposals timed appropriately to enable further substantial distributions by the end of 2019," said Puma VCT 10 Chair David Vaughan.
Shares in Puma VCT 10 were untraded at 68.00p on Thursday. Puma VCT 11 shares were also untraded at 85.00p.