(Alliance News) - Gresham House Renewable Energy VCT 1 PLC and Gresham House Renewable Energy VCT 2 PLC on Wednesday reported declines in net asset values, amid falls in cashflows in their portfolios.

The venture capital trusts, reporting half-year results on Wednesday, both noted falls in the value of their portfolios.

"In terms of the performance of the portfolio, the conclusion of extensive remedial works carried out at several sites in the previous year has continued to yield benefits, with technical performance across all sites matching forecasts. Despite this, and the strong gain on the part sale of assets, the value of the portfolio has fallen due to lower cashflows than forecast over the last six months from the portfolio, a downgrade in inflation expectations and longer term power price forecasts, as well as the reductions in the value of the non-renewable assets," they said.

Gresham House Renewable Energy VCT 1 reported an NAV per ordinary share of 90.5 pence at its March 31 half-year end, down 1.8% from 92.2p in September. Gresham House Renewable Energy VCT 2's NAV per ordinary share declined 3.9% to 87.6p from 91.2p.

In addition, VCT 1 and VCT 2 announced dividends of 18.5p and 16.5p, respectively. VCT 1 noted that 2p of the dividend reflected the reinstatement of a delayed dividend payment announced in January.

The bulk of the payout stems from proceeds of the sale of two ground-mounted solar sites and approximately 1,600 commercial and residential solar installations for a total of GBP12.6 million. The VCTs announced the deal was completed in April.

By Eric Cunha, Alliance News news editor

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