Downing One, Downing Four Post First-Half Net Asset Value Declines

(Alliance News) - Downing One VCT PLC and Downing Four VCT PLC on Friday both reported interim falls in net asset value, amid disruption caused by Covid-19.

Downing One NAV per share at September 30, the end of its first half, was down 2.3% at 56.3 pence from 57.6p at the end of March. After adding back a 2.0p per share payout, it was 1.2% higher, however.

Downing Four posted NAV per share falls in all four of its share classes over the same period.

At its Generalist share class, its NAV per share fell 0.8% to 61.2p from 61.7p at the end of March. In Healthcare, the NAV per share fell 4.3% to 65.2p from 68.1p.

In the DSO D share class, the NAV per share dropped 11% to 10.7p from 12.0p, while at the DP67 class, the NAV per share edged down 1.6% to 18.4p from 18.7p.

"As we set out in the last annual report, the DP67 portfolio has a high level of exposure to the leisure and hospitality sector, which has been severely impacted by the restrictions and forced closures accompanying the coronavirus pandemic. It is difficult to progress with exits from these types of investments at a time when the underlying businesses are unable to operate at full capacity. We continue to seek the best realisation outcomes for DP67 shareholders but anticipate that it will take some time for these to be achieved," Downing Four said.

"The planned exit share pools still face some significant challenges due to their exposure to sectors heavily impacted by the pandemic. The task of working towards exits from their remaining investments will continue, although it may be some time before these can be achieved at acceptable prices."

By Eric Cunha; ericcunha@alliancenews.com

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