Ludgate Environmental NAV hit by EcoPlastics write off

Ludgate Environmental has published results for the year ended 30 June 2015. Its net asset value fell from 66.5p to 60.6p over the period. At an EGM on 1st September 2014 shareholders voted to extend the life of LEF to 30th June 2018 with the expectation that the portfolio would be mostly sold by mid 2017 and that this additional period was in the best interests of the Company to realise value for shareholders; the investing policy and management and performance fee arrangements and incentives for the Investment Adviser were amended accordingly. The AGM held on 14th November 2014 again confirmed the strategy, investing policy and financial report.

They reorganised their interest in shares of Rapid Action Packaging Limited. After conversion of CULS, they are now the largest shareholder but do not exercise management control. The company is performing within expectations. STX Services B.V., the broker of environmental certificates, has continued to exceed its budgets. They subscribed for further shares of Tamar Energy Limited, the UK biomass generator. The company has recently raised debt finance and continues to develop its operations. Ignis has achieved effective operational performance and continued to seek expansion of its supply with key contracts under current negotiation. Lumicity continued to realise its investments and distribute proceeds to shareholders. During the year, they sold the interest in Lumicity with possible further payments to be made dependent on certain performance milestones. Micropelt is developing core products toward commercialisation. In December they wrote off our investment in ECO Plastics Limited, (valued at £2m at the 30th September 2014 NAV date), representing 3.8p of NAV or 5.7% of net assets. The company was insufficiently capitalised to withstand the loss of an advantageous feedstock contract and falling prices in the offtake market. They continue to hold listed securities of Hydrodec Group plc, Renewable Energy Generation plc and Phoslock Water Solutions Limited on an available for sale basis.

LEF : Ludgate Environmental NAV hit by EcoPlastics write off

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