Triple Point VCT 2011 PLC Coronavirus (COVID-19) Update (2653K)
21 Aprile 2020 - 08:00AM
UK Regulatory
TIDMTPOA TIDMTTM TIDMTPOB TIDMTPON
RNS Number : 2653K
Triple Point VCT 2011 PLC
21 April 2020
21 April 2020
Triple Point VCT 2011 plc
(the "Company")
CORONAVIRUS (COVID-19) UPDATE
The Board of Triple Point VCT 2011 plc provides the following
update on the impact of COVID-19 and implications for the portfolio
of investments held by the Company in its A and B Share
Classes.
The valuations of portfolio companies will be kept under review
as the situation develops.
A Share Class
The majority, by both value and revenue, of the Company's assets
are hydroelectric facilities in the Scottish Highlands.
Hydroelectric plants, by their nature, require a relatively low
level of human presence and we therefore expect the plants to be
able to maintain normal commercial operations without significant
disruption. The impact of COVID-19, and the Government's response
to it, should therefore be relatively limited under normal
operations.
The hydroelectric companies invested in by the A Share Class
benefit from inflation linked contractual Feed in Tariff ("FiTs")
Income, and currently have 16 years remaining on these contracts
across the companies. Alongside the FiT revenue stream, the
companies have recently signed up to a new 12-month fixed price
power purchase agreement ("Export") with one of the 'big six'
energy providers.
The revenue stack of the hydro assets are weighted 75% FiT and
25% Export, with a portion of the Export tariff being made up by
embedded benefits, which should not be affected by the fall in
energy prices. Consequently, we do not expect the hydroelectric
companies to be materially impacted by the current volatility we
are witnessing in the energy markets.
The most relevant risks are a restriction on the supply chain
for spare parts and the availability of technicians to attend on
site if any of the hydro assets require significant unexpected
repair or maintenance work. These risks are considered to be low
and the NAV impact minimal.
B Share Class
It is expected that due to COVID-19 there will be a drop in
annualized power consumption. This will be driven by reduced
manufacturing and the heavy impact COVID-19 is having on the
services industry. With many people working from home the pattern
of domestic electricity consumption has also changed, causing the
typical morning electricity "peak" to flatten out.
As a result of this changing demand profile we have already seen
wholesale prices decline (carbon prices, power and gas). We have
seen spark-spreads (the gross-margin of a gas power plant from
selling a unit of electricity, having purchased the fuel required
to produce this unit of electricity) begin to narrow, although we
note that despite the changing demand profile, it still remains
profitable for our gas power asset to run during the evening peak
(the typical running hours for these assets). Over the long-term,
industry experts believe power consumption and prices will revert
to historical norms and therefore we do not currently expect there
to be a significant impact on the valuation of these companies
based on the long-expected life of the assets.
FOR FURTHER INFORMATION ON THE COMPANY, PLEASE CONTACT:
Triple Point Investment Management Tel: 020 7201 8989
LLP
(Investment Manager)
Ben Beaton
Belinda Thomas
The Company's LEI is 213800AOOAQA5XQDEA89
Further information on the Company can be found on its website
https://www.triplepoint.co.uk/investments/triple-point-venture-fund/s7881/
.
NOTES:
The Company is a Venture Capital Trust incorporated in July
2010. The Investment Manager is Triple Point Investment Management
LLP. The Company was established to fund small and medium sized
enterprises (SMEs). The Company launched a new share class, known
as The Venture Fund, in March 2019 which is mandated to invest in
SMEs producing products or digital services that solve challenges
faced by their larger corporate customers.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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