(Alliance News) - British Smaller Companies VCT2 PLC on Wednesday said its net asset value declined in the first half of 2020, hit by movement in investments.
The venture capital trust, which has its headquarters in Leeds, reported a net asset value per share of 48.4 pence as at June 30, down from 55.2p at the start of 2020 and 53.4p the year before.
The company posted a GBP7.2 million negative movement in investment held at fair value as at June 30 compared to January 1, and even with a GBP1.6 million gain on disposal of investments, the net underlying change amounted to a 4.3p cut to NAV per share - the majority of the 6.8p difference.
British Smaller Companies VCT2 has proposed a 1.5p per share interim dividend. Combined with a previously declared interim dividend of 2.0p per share, total dividends in the period amount to 3.5p per share, down from 8.0p per share the year before.
Chair Peter Waller said: "Whilst a first wave of the Covid-19 outbreak appears to be behind us and restrictions on movement in the UK are being lifted uncertainty remains around the next few months in particular, recently evidenced by the removal and then relatively rapid replacement of restrictions on movements to and from Spain. Nonetheless, there is broader consensus that in the medium-term the combined impacts of the aftershocks of the pandemic and the renegotiating of trading relationships with Europe are likely to dampen growth. However, while some sectors will take longer to recover than others, the current portfolio has the advantage of strong funding levels and low levels of leverage which puts it in the position to navigate through the short-term challenges and emerge strongly from this.
"The company has substantial resources with which it can undertake new investment opportunities. Albeit that the short- to medium-term economic outlook might be challenging, having liquidity to invest in those businesses operating in innovative ways in sectors where there is future growth, is itself a good opportunity. Whilst the conversion process of opportunity to new investment is currently a little slower than previously the company is extremely well placed to take advantage of these opportunities as they arise."
Shares in British Smaller Companies VCT2 were untraded on Wednesday, having last traded at 44.20 pence each.
By Anna Farley; annafarley@alliancenews.com
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Br.small Co.2 (BSC)