Downing FOUR VCT plc Downing Four Vct Plc : Half-yearly Report For The Six Months Ended 30 September 2015

 
TIDMDO1O 
 
 
   Downing FOUR VCT plc 
 
   Half-Yearly Report for the six months ended 30 September 2015 
 
   Performance Summary 
 
 
 
 
                                                          31 March  30 Sep 
                                            30 Sept 2015    2015     2014 
                                               pence       pence    pence 
DSO Ordinary Share pool 
Net asset value per DSO Ordinary Share              58.3      53.8    93.5 
Net asset value per DSO A Share                      0.1       0.1     0.1 
Cumulative dividends per DSO Ordinary 
 Share                                              80.0      80.0    40.0 
Adjusted for performance incentive 
 estimate                                          (7.0)     (7.0)       - 
Total return per DSO Ordinary Share and 
 DSO A Share                                       131.4     126.9   133.6 
 
DSO B Share pool 
Net asset value per DSO B Share                     72.4      70.2    74.6 
Net asset value per DSO C Share                      0.1       0.1     0.1 
Cumulative dividends per DSO B Share                32.5      32.5    30.0 
Adjusted for performance incentive 
 estimate                                          (4.0)     (2.8)       - 
Total return per DSO B Share and DSO C 
 Share                                             101.0     100.0   104.7 
 
DSO D Share pool 
Net asset value per DSO D Share                     76.0      80.7    81.2 
Cumulative dividends per DSO D Share                15.0      15.0    12.5 
Total return per DSO D Share                        91.0      95.7    93.7 
 
                                                            31 Jan 
                                                              2015 
DP67 Share pool                                              pence 
Net asset value per DP67 Share                      62.9      63.6 
Cumulative dividends per DP67 Share                 21.8      17.8 
Total return per DP67 Share                         84.7      81.4 
 
                                                            30 Nov 
                                                              2014 
DP2011 General Share pool                                    pence 
Net asset value per DP2011 Gen Ord Share            78.9      75.8 
Net asset value per DP2011 Gen A Share               6.1       6.0 
Cumulative dividends per DP2011 Gen Ord 
 Share                                              20.0      17.5 
Total return                                       105.0      99.3 
 
DP2011 Structured Share pool 
Net asset value per DP2011 Struc Ord Share          80.8      78.2 
Net asset value per DP2011 Struc A Share             6.3       6.2 
Cumulative dividends per DP2011 Struc 
 Share                                              20.0      17.5 
Total return                                       107.1     101.9 
 
DP2011 Low Carbon Share pool 
Net asset value per DP2011 Low Carbon 
 Share                                              90.0      88.9 
Cumulative dividends per DP2011 Low Carbon 
 Share                                              21.4      18.7 
Total return per DP2011 Low Carbon Share           111.4     107.6 
 
   CHAIRMAN'S STATEMENT 
 
   Introduction 
 
   I am pleased to present the merged Company's first Half-Yearly Report 
since the recent merger and renaming of the Company. I would also like 
to take this opportunity to welcome new shareholders who have become 
members as a result of the merger. 
 
   The six-month period ended 30 September 2015 has been a busy one for the 
Company. In addition to the merger, the DSO Ordinary and DSO B Share 
pools have completed significant realisations as part of their planned 
exit strategy. There has also been some investment activity in the other 
share pools, but at lower levels. 
 
   Merger 
 
   The merger of four VCTs was completed on 20 July 2015. The merger was 
effected by Downing Structured Opportunities VCT 1 plc acquiring Downing 
Planned Exit VCT 2011 plc, Downing Planned Exit VCT 6 plc and Downing 
Planned Exit VCT 7 plc on 21 July 2015. The merged company was renamed 
as Downing FOUR VCT plc immediately following the transaction. 
 
   The merged entity now has net assets of GBP63 million which reduces the 
burden of running costs to shareholders. The merger also brings benefits 
in terms of complying with the VCT regulations and provides some 
additional flexibility in the process of unwinding the various 
investment portfolios at the appropriate times. 
 
   Board 
 
   As part of the merger, two new directors have joined the Company's 
board. Sir Aubrey Brocklebank and Russell Catley were both previously 
directors of Downing Planned Exit VCT 2011 plc and have extensive 
experience in the VCT and relevant sectors. Sir Aubrey has taken on the 
role of Senior Independent Director. I welcome both to the Board and 
look forward to working alongside them. 
 
   Share pools 
 
   The Company now has seven share pools each with a different profile. 
This report includes sections covering each share pool; I will give a 
brief overview of each pool. 
 
   DSO Ordinary Share Pool 
 
   The DSO Ordinary Share pool has nearly completed the task of disposing 
of its last remaining investments. One group of investments (the 
Quadrate companies) remains, from which the Company is expected to exit 
in the coming weeks. 
 
   As at 30 September 2015, the Total Return to Shareholder of one DSO 
Ordinary Share and one DSO A Share is 131.4p compared to the cost net of 
tax relief for original investors of 70p (after adjusting for a 
performance incentive estimated to be 7.0p per Ordinary share). 
 
   As soon as the final holdings are sold, final dividends will be declared, 
which should bring the investment to a satisfactory conclusion for 
investors. 
 
   DSO B Share Pool 
 
   The DSO B Share pool is now in the process of disposing of its 
investments in order to return funds to shareholders. The Company is now 
in a positon to declare the first substantial return of capital and 
accordingly will pay a special dividend of 40.0p per DSO B Share on 23 
December 2015 to Shareholders on the register at 4 December 2015. 
 
   As at 30 September the net asset value ("NAV") of a combined holding of 
one DSO B Share and one DSO C Share stood at 72.5p. Assuming certain 
targets are met, it is estimated that a performance incentive of 4.0p 
per DSO B Share will be payable. This results in a total return to 
shareholders (NAV plus dividends paid to date less performance 
incentive) of 101.0p compared to the cost, net of tax relief, for 
original investors of 70.0p. 
 
   Plans for further investment realisations are expected to complete 
shortly and as they do the Board will give consideration to declaring a 
further dividend. Shareholders should however note that the process of 
exiting from the full investment portfolio is expected to take some time 
to complete and it is estimated that it may not be finalised for 12 
months or so. 
 
   DSO D Share Pool 
 
   The DSO D Share NAV stood at 76.0p at 30 June 2015, a decrease of 4.7p 
per share or 5.8% over the period after adjusting for the dividends of 
2.5p per share paid in the period. Total Return now stands at 91.0p per 
share, compared to the cost for Shareholders who invested in the D Share 
offer, net of income tax relief, of 70.0p. 
 
   Unfortunately, the DSO D Share pool has suffered some setbacks during 
the period in its nightclub and pub investments. As the D Share pool is 
still in its initial 5-year period there is some time for this lost 
ground to be recovered. It is intended that the return of funds to 
Shareholders will commence in August 2017. 
 
   DP67 Share Pool 
 
   The DP67 share pool arose from the merger with Downing Planned Exit VCT 
6 plc and Downing Planned Exit VCT 7 plc. As at 30 September 2015, the 
NAV of the DP67 Shares stood at 62.9p per share. This represents an 
increase of 3.3p (4.0%) (after adjusting for the dividends paid) over 
the period since 31 January 2015, being the date of the last report to 
Shareholders. 
 
   Total Return for DP67 shareholders now stands at 84.7p per share. 
 
   The DP67 Share pool will be commencing the process of realising its 
investments to return funds to investors in 2018. 
 
   DP2011 General Share Pool 
 
   As at 30 September 2015, the NAV of a combined holding of one DP2011 
General Ordinary Share and one DP2011 General A Share stood at 85.0p per 
share. This represents an increase of 5.7p or 7.0% (after adjusting for 
the dividends paid) over the period since 30 November 2014, being the 
date of the last report to Shareholders. 
 
   Total Return for DP2011 General Shareholders now stands at 105.0p 
compared to the cost for Shareholders who invested in the original offer, 
net of income tax relief, of 70.0p 
 
   The DP2011 General Share pool will commence the process of realising its 
investments to return funds to investors in 2016. 
 
   DP2011 Structured Share Pool 
 
   As at 30 September 2015, the NAV of a combined holding of one DP2011 
Structured Ordinary Share and one DP2011 Structured A Share stood at 
87.1p per share. This represents an increase of 5.2p or 6.2% (after 
adjusting for the dividends paid) over the period since 30 November 
2014, being the date of the last report to Shareholders. 
 
   Total Return for DP2011 Structured Shareholders now stands at 107.1p 
compared to the cost for Shareholders who invested in the original offer, 
net of income tax relief, of 70.0p. 
 
   The DP2011 Structured Share pool will commence the process of realising 
its investments to return funds to investors in 2016. 
 
   DP2011 Low Carbon Share Pool 
 
   As part of the merger Low Carbon Shareholders received 0.935 new DP2011 
Low Carbon Ordinary Shares in the Company for every Low Carbon Ordinary 
Shares they previously owned in the original company. This was done to 
rebase the cost of the original shares to 100p. 
 
   As at 30 September 2015, the NAV of the DP2011 Low Carbon Shares was 
90.0p per share. This represents an increase of 3.8p or 4.2% (after 

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