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Share Name Share Symbol Market Type Share ISIN Share Description
Albion Development Vct Plc LSE:AADV London Ordinary Share GB0004832472 ORD 1P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.0% 73.50 72.50 74.50 73.50 73.50 73.50 0.00 08:00:10
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Equity Investment Instruments 0.0 0.7 0.7 100.7 68

Albion Dev VCT Albion Development Vct Plc: Half-yearly Financial Report

03/09/2020 2:15pm

UK Regulatory (RNS & others)


 
TIDMAADV 
 
 
   Albion Development VCT PLC 
 
   LEI Code 213800FDDMBD9QLHLB38 
 
   As required by the UK Listing Authority's Disclosure Guidance and 
Transparency Rule 4.2, Albion Development VCT PLC today makes public its 
information relating to the Half-yearly Financial Report (which is 
unaudited) for the six months to 30 June 2020. This announcement was 
approved by the Board of Directors on 3 September 2020. 
 
   The full Half-yearly Financial Report (which is unaudited) for the 
period to 30 June 2020 will shortly be sent to shareholders and will be 
available on the Albion Capital Group LLP website by clicking 
www.albion.capital/funds/AADV/30Jun2020.pdf. 
 
   Investment policy 
 
   The Company will invest in a broad portfolio of higher growth businesses 
with a stronger focus on technology companies across a variety of 
sectors of the UK economy. Allocation of assets will be determined by 
the investment opportunities which become available but efforts will be 
made to ensure that the portfolio is diversified in terms of sector and 
stage of maturity of company. 
 
   Funds held pending investment or for liquidity purposes will be held as 
cash on deposit or up to 8 per cent. of its assets, at the time of 
investment, in liquid open-ended equity funds providing income and 
capital equity exposure (where it is considered economic to do so). 
 
   Risk diversification and maximum exposures 
 
   Risk is spread by investing in a number of different businesses within 
venture capital trust qualifying industry sectors using a mixture of 
securities. The maximum amount which the Company will invest in a single 
portfolio company is 15 per cent. of the Company's assets at cost thus 
ensuring a spread of investment risk. The value of an individual 
investment may increase over time as a result of trading progress and it 
is possible that it may grow in value to a point where it represents a 
significantly higher proportion of total assets prior to a realisation 
opportunity being available. 
 
   The Company's maximum exposure in relation to gearing is restricted to 
10 per cent. of the adjusted share capital and reserves. 
 
   Background to the Company 
 
   The Company is a venture capital trust which raised a total of GBP33.3 
million through the issue of shares between 1999 and 2004. The C shares 
merged with the Ordinary shares in 2007. A further GBP6.3 million was 
raised through an issue of new D shares in 2010. The D shares converted 
to Ordinary shares in 2015. 
 
   An additional GBP45.2 million has been raised for the Ordinary shares 
through the Albion VCTs Top Up Offers since 2011. 
 
   Financial calendar 
 
 
 
 
Record date for second dividend for the year   11 September 2020 
 
Payment date for second dividend for the year  30 September 2020 
 
Financial year end                                   31 December 
 
 
   Financial summary 
 
 
 
 
                Unaudited six months ended  Unaudited six months ended  Audited year ended 
      Ordinary         30 June 2020                30 June 2019          31 December 2019 
        shares       (pence per share)           (pence per share)       (pence per share) 
--------------  --------------------------  --------------------------  ------------------ 
Opening net 
 asset value                         83.47                       84.70               84.70 
Capital 
 (loss)/return                      (2.03)                        2.64                2.55 
Revenue return                        0.08                        0.28                0.73 
                --------------------------  --------------------------  ------------------ 
Total 
 (loss)/return                      (1.95)                        2.92                3.28 
Impact from 
 share capital 
 movements                            0.03                      (0.09)              (0.01) 
Dividends paid                      (2.25)                      (2.25)              (4.50) 
                --------------------------  --------------------------  ------------------ 
Net asset 
 value                               79.30                       85.28               83.47 
--------------  --------------------------  --------------------------  ------------------ 
 
 
 
 
 
 
Total shareholder value to 30 June 2020    Ordinary shares (pence per share) 
Total dividends paid during the period 
ended: 
 31 December 1999                                                       1.00 
 31 December 2000                                                       2.90 
 31 December 2001                                                       3.95 
 31 December 2002                                                       4.20 
 31 December 2003                                                       4.50 
 31 December 2004                                                       4.00 
 31 December 2005                                                       5.20 
 31 December 2006                                                       3.00 
 31 December 2007                                                       5.00 
 31 December 2008                                                      12.00 
 31 December 2009                                                       4.00 
 31 December 2010                                                       8.00 
 31 December 2011                                                       5.00 
 31 December 2012                                                       5.00 
 31 December 2013                                                       5.00 
 31 December 2014                                                       5.00 
 31 December 2015                                                       5.00 
 31 December 2016                                                       5.00 
 31 December 2017                                                       4.00 
 31 December 2018                                                       4.00 
 31 December 2019                                                       4.50 
 30 June 2020                                                           2.25 
Total dividends paid to 30 June 2020                                  102.50 
Net asset value as at 30 June 2020                                     79.30 
                                           --------------------------------- 
Total shareholder value to 30 June 2020                               181.80 
                                           --------------------------------- 
 
 
   The financial summary above is for the Company, Albion Development VCT 
PLC Ordinary shares only. Details of the financial performance of the C 
shares and D shares, which have been merged into the Ordinary shares, 
can be found at www.albion.capital/funds/AADV under the 'Financial 
summary for previous funds' section. 
 
   In addition to the dividends summarised above, the Board has declared a 
second dividend for the year ending 31 December 2020, of 1.99 pence per 
Ordinary share to be paid on 30 September 2020 to shareholders on the 
register on 11 September 2020. The details of the new dividend policy 
can be found in the Interim Management Report below. 
 
   Notes 
 
   Total shareholder value for every 100 pence invested on initial 
allotment. The table above excludes tax benefits upon subscription. 
 
   Interim management report 
 
   Introduction 
 
   Since the announcement of our year end results to 31 December 2019, we 
have entered a global health and economic crisis due to the coronavirus 
(Covid-19) pandemic, and unsurprisingly our portfolio has been affected. 
However, the Board has been in close contact with the Manager and has 
undergone a rigorous and robust revaluation process to quantify the 
effect of the coronavirus (Covid-19) pandemic on the portfolio. 
 
   Valuations and results 
 
   The net effect of the Board's portfolio valuation exercise has been an 
overall loss on investments of GBP1.3 million for the six months to 30 
June 2020. 
 
   I am pleased to report that there have been some uplifts to portfolio 
companies during this time, showing the resilience of our portfolio and 
some of the businesses we have backed. There was a GBP2.6 million uplift 
in the valuation of Quantexa, following a GBP50 million externally led 
fundraising, and a GBP0.9 million uplift in the valuation of Proveca, 
due to strong sales of its product Sialanar across Europe. 
 
   Unfortunately, two of our portfolio companies have been particularly 
hard hit by Covid-19, which has resulted in corresponding declines in 
their value. These are Mirada Medical, a medical imaging software 
company which uses deep learning to help clinicians plan radiation 
treatment, which saw a reduction of GBP1.5 million in the period, and 
Sandcroft Avenue (trading as Hussle), a provider of flexible gym 
memberships to thousands of venues across the UK, whose value declined 
by GBP1.1 million. Our investment in the SVS Albion OLIM UK Equity 
Income Fund declined by GBP1.0 million due to the impact of Covid-19 on 
quoted markets. 
 
   Further details of the portfolio of investments can be found below. 
 
   This has resulted in a total loss for the six months to 30 June 2020 of 
1.95 pence per share (2.34% loss on opening net asset value) compared to 
a positive total return of 2.92 pence per share for the same period in 
the previous year. 
 
   The net asset value per share has fallen to 79.30 pence (30 June 2019: 
85.28 pence; 31 December 2019: 83.47 pence) following the loss during 
the period and the payment of a 2.25 pence per share dividend on 29 May 
2020. 
 
   New dividend policy 
 
   The Board is aware of the importance of dividends to shareholders and it 
remains its intention to continue to pay regular dividends, as far as 
liquidity permits. Given the uncertainty that the current pandemic has 
created and the volatile nature of investing in small unquoted growth 
businesses, the Board considers it appropriate to move to a variable 
dividend policy targeting an annual dividend yield of around 5%. 
Semi-annual dividends will be paid calculated as 2.5% of the most 
recently announced net asset value when the dividend is declared (in 
most cases this will be the net asset value announced in the Half-yearly 
Financial Report or in the Annual Report and Financial Statements). This 
has the advantage of avoiding unsustainably high dividends if the net 
asset value falls, whilst rewarding shareholders more immediately if the 
net asset value rises. 
 
   As a result, the Company will pay a second dividend for the financial 
year ending 31 December 2020 of 1.99 pence per share on 30 September 
2020 to shareholders on the register on 11 September 2020. 
 
   Investment activity 
 
   During the period the Company has invested GBP1.6 million of cash into 
new and existing portfolio companies, with new investments comprising: 
 
 
   -- GBP575,000 into Concirrus (a software provider bringing real-time 
      behavioural data analytics to the marine and transport insurance 
      industries); 
 
   -- GBP344,000 into Credit Kudos (a challenger credit bureau helping lenders 
      optimise and automate their affordability and risk assessments); and 
 
   -- GBP207,000 into TransFICC (a provider of a connectivity solution, 
      connecting financial institutions with trading venues via a single API). 
 
 
   Following the period end, the Company has invested a further GBP2.6 
million into new and existing companies, the largest being GBP1.4 
million into Quantexa. Further details of post balance sheet events can 
be found in note 10. 
 
   Investment portfolio by sector 
 
   The pie chart at the end of this announcement outlines the different 
sectors in which the Company's assets, at carrying value, are currently 
held. 
 
   Corporate broker and share buy-backs 
 
   The Board was pleased to announce on 17 June 2020 the appointment of 
Panmure Gordon (UK) Limited as corporate broker. 
 
   It remains the Board's policy to buy-back shares in the market, subject 
to the overall constraint that such purchases are in the Company's 
interest. This includes the maintenance of sufficient cash resources for 
investment in new and existing portfolio companies and the continued 
payment of dividends to shareholders. 
 
   It is the Board's intention that such buy-backs should be at around a 5% 
discount to net asset value, in so far as market conditions and 
liquidity permit. 
 
   Transactions with the Manager 
 
   Details of transactions with the Manager for the reporting period can be 
found in note 5. Details of related party transactions can be found in 
note 11. 
 
   Risks and uncertainties 
 
   The wide reaching implications arising from the Covid-19 crisis is the 
key risk facing the Company, including its impact on the UK and Global 
economies and recent turmoil in the quoted market. There are also the 
potential implications of the UK's departure from the European Union 
which may adversely affect our underlying portfolio companies. The 
Manager is continually assessing the exposure to such risks for each 
portfolio company, and where possible appropriate actions are being 
implemented. 
 
   Other principal risks and uncertainties remain unchanged and are as 
detailed in note 13. 
 
   Albion VCTs Top Up Offers 
 
   As announced in the Annual Report and Financial Statements for the year 
ended 31 December 2019, the Board was pleased to close the Offer having 
raised GBP8 million for the 2019/20 tax year. 
 
   The proceeds are continually being used to nurture our existing 
portfolio companies as they grow, as highlighted by our further 
investment into Quantexa detailed above, but also to support existing 
portfolio companies during the current pandemic. The proceeds raised 
also enable us to take advantage of new and exciting investment 
opportunities as they arise, and three of such are detailed above. 
Details on the share allotments during the period can be found in note 
8. 
 
   Prospects 
 
   Given the current uncertainty around the Covid-19 pandemic, the Board 
was pleased to see some large uplifts in the Company's investment 
portfolio during the period. The priority of the Board is to give 
support to the existing portfolio where it is needed, whilst also taking 
advantage of new business ideas which are proving resilient to the 
current pandemic. We believe the portfolio is well positioned to 
continue to provide long term growth to shareholders. 
 
   Ben Larkin 
 
   Chairman 
 
   3 September 2020 
 
   Responsibility statement 
 
   The Directors, Ben Larkin, Lyn Goleby, Lord O' Shaughnessy and Patrick 
Reeve, are responsible for the preparation of the Half-yearly Financial 
Report. In preparing these condensed Financial Statements for the period 
to 30 June 2020 we, the Directors of the Company, confirm that to the 
best of our knowledge: 
 
   (a) the condensed set of Financial Statements, which has been prepared 
in accordance with Financial Reporting Standard 104 "Interim Financial 
Reporting", give a true and fair view of the assets, liabilities, 
financial position and profit and loss of the Company as required by DTR 
4.2.4R; 
 
   (b) the Interim management report includes a fair review of the 
information required by DTR 4.2.7R (indication of important events 
during the first six months and description of principal risks and 
uncertainties for the remaining six months of the year); and 
 
   (c) the Interim management report includes a fair review of the 
information required by DTR 4.2.8R (disclosure of related parties' 
transactions and changes therein). 
 
   This Half-yearly Financial Report has not been audited or reviewed by 
the Auditor. 
 
   For and on behalf of the Board 
 
   Ben Larkin 
 
   Chairman 
 
   3 September 2020 
 
   Portfolio of investments 
 
 
 
 
                                                        As at 30 June 2020 
                               % voting    Cost    Cumulative movement in value   Value    Change in value for the period* 
Fixed asset investments         rights    GBP'000             GBP'000             GBP'000              GBP'000 
Egress Software Technologies 
 Limited                            6.9     2,332                         4,115     6,447                                - 
Quantexa Limited                    2.9       727                         4,925     5,652                            2,641 
Proveca Limited                    11.8     1,829                         3,628     5,457                              915 
Radnor House School (TopCo) 
 Limited                            8.5     1,560                         1,033     2,593                            (130) 
Chonais River Hydro Limited         4.6     1,705                           660     2,365                                7 
The Street by Street Solar 
 Programme Limited                 12.4     1,291                         1,002     2,293                             (70) 
Regenerco Renewable Energy 
 Limited                           11.9     1,204                           759     1,963                             (71) 
Black Swan Data Limited             3.9     1,610                             -     1,610                                - 
G.Network Communications 
 Limited                            2.7       273                         1,206     1,479                                - 
Alto Prodotto Wind Limited          9.4       741                           516     1,257                                4 
Oviva AG                            3.4     1,021                           160     1,181                            (210) 
Panaseer Limited                    3.2       752                           281     1,033                                - 
Convertr Media Limited              6.2       992                            27     1,019                                5 
MPP Global Solutions Limited        3.0     1,000                             -     1,000                                - 
OmPrompt Holdings Limited          10.7       994                          (32)       962                                - 
Albion Investment Properties 
 Limited                           68.2       929                            27       956                               28 
The Evewell (Harley Street) 
 Limited                            7.5     1,027                          (93)       934                             (93) 
MyMeds&Me Limited                   9.9       940                          (46)       894                                5 
Beddlestead Limited                 8.6     1,026                         (270)       756                            (265) 
Aridhia Informatics Limited         5.8     1,129                         (420)       709                              559 
Cantab Research Limited 
 (T/A Speechmatics)                 1.7       685                             -       685                                - 
SBD Automotive Limited              2.2       330                           339       669                               27 
Elliptic Enterprises Limited        0.8       639                             -       639                                - 
Concirrus Limited                   1.2       575                             -       575                                - 
InCrowd Sports Limited              4.3       545                          (12)       533                            (170) 
Locum's Nest Limited                5.6       550                          (18)       532                               10 
Mirada Medical Limited              7.7       909                         (396)       513                          (1,545) 
Clear Review Limited                3.2       409                           103       512                              103 
Koru Kids Limited                   2.1       460                            48       508                            (208) 
AVESI Limited                      10.5       340                           138       478                             (29) 
Limitless Technology Limited        2.8       440                             -       440                                - 
The Q Garden Company Limited       16.6       466                          (49)       417                             (48) 
Phrasee Limited                     2.0       410                             -       410                                - 
Avora Limited                       2.2       400                             -       400                                - 
Dragon Hydro Limited                5.5       217                           137       354                               10 
Credit Kudos Limited                1.6       344                             -       344                                - 
uMotif Limited                      1.2       300                            40       340                              122 
ePatient Network Limited 
 (T/A Raremark)                     2.9       270                            62       332                             (32) 
Cisiv Limited                       7.7       686                         (357)       329                             (66) 
Abcodia Limited                     4.7       809                         (523)       286                                - 
Arecor Limited                      1.5       280                             -       280                                - 
Healios Limited                     0.9       270                             -       270                                - 
DySIS Medical Limited               1.9     1,038                         (815)       223                            (219) 
Innovation Broking Group 
 Limited                            8.4        84                           134       218                               30 
Greenenerco Limited                 4.0       121                            86       207                              (1) 
TransFICC Limited                   1.4       207                             -       207                                - 
MHS 1 Limited                       3.3       231                          (24)       207                             (24) 
Zift Channel Solutions 
 Inc.                               1.7       885                         (715)       170                            (335) 
Imandra Inc.                        1.7       166                             -       166                                - 
Oxsensis Limited                    1.7       274                         (111)       163                             (47) 
Sandcroft Avenue Limited 
 (T/A Hussle)                       6.4     1,281                       (1,160)       121                          (1,142) 
memsstar Limited                    2.8        68                            51       119                                5 
Premier Leisure (Suffolk) 
 Limited                            6.2       109                             -       109                             (12) 
Erin Solar Limited                  4.3       120                          (17)       103                             (12) 
Forward Clinical Limited 
 (T/A Pando)                        1.8       219                         (146)        73                             (56) 
Symetrica Limited                   0.3        89                          (18)        71                             (13) 
Mi-Pay Group PLC                    3.2        22                             -        22                                - 
Elements Software Limited           0.6         3                           (3)         -                                - 
                                         --------  ----------------------------  -------- 
Total fixed asset investments              38,333                        14,252    52,585                            (327) 
 
 
 
 
 
 
 
 
                             As at 30 June 2020 
Current 
asset           Cost    Cumulative movement in value   Value    Change in value for the period* 
investments    GBP'000             GBP'000             GBP'000              GBP'000 
------------                                          --------  ------------------------------- 
SVS Albion 
 OLIM UK 
 Equity 
 Income 
 Fund            4,990                         (933)     4,057                          (1,011) 
Total 
 current 
 asset 
 investments     4,990                         (933)     4,057                          (1,011) 
------------  --------  ----------------------------  --------  ------------------------------- 
 
   * as adjusted for additions and disposals during the period; including 
realised gains/(losses). 
 
 
 
 
                                                           Cost    Opening value  Disposal proceeds  Total realised gain/(loss)  Gain/(loss) on opening value 
 Investment realisations in the period to 30 June 2020    GBP'000     GBP'000          GBP'000                 GBP'000                      GBP'000 
-------------------------------------------------------  --------  -------------  -----------------  --------------------------  ---------------------------- 
Disposals: 
------------------------------------------------------- 
TWCL Limited                                                  518            487                485                        (33)                           (2) 
 
Loan stock repayments and other: 
------------------------------------------------------- 
Alto Prodotto Wind Limited                                     21             31                 31                          10                             - 
memsstar Limited                                                6              6                  6                           -                             - 
Greenenerco Limited                                             3              4                  4                           1                             - 
Escrow adjustments**                                            -              -                 45                          45                            45 
Total                                                         548            528                571                          23                            43 
-------------------------------------------------------  --------  -------------  -----------------  --------------------------  ---------------------------- 
 
 
   ** Fair value movements on deferred consideration from previously 
disposed investments. 
 
 
 
 
Unrealised losses on fixed asset investments              (327) 
Unrealised losses on current asset investments          (1,011) 
Realised gains in the current period                         43 
                                                        ------- 
Total losses on investments as per Income statement     (1,295) 
------------------------------------------------------  ------- 
 
 
   Condensed income statement 
 
 
 
 
                                                                           Unaudited                     Unaudited                      Audited 
                                                                        six months ended              six months ended                 year ended 
                                                                          30 June 2020                  30 June 2019                31 December 2019 
----------------------------------------------------------  ----  ----------------------------  ----------------------------  ---------------------------- 
                                                                  Revenue   Capital    Total    Revenue   Capital    Total    Revenue   Capital    Total 
                                                            Note   GBP'000   GBP'000   GBP'000   GBP'000   GBP'000   GBP'000   GBP'000   GBP'000   GBP'000 
----------------------------------------------------------  ----  --------  --------  --------  --------  --------  --------  --------  --------  -------- 
 
(Losses)/gains on investments                                  3         -   (1,295)   (1,295)         -     2,678     2,678         -     3,074     3,074 
Investment income                                              4       403         -       403       593         -       593     1,294         -     1,294 
Investment management fee                                      5     (186)     (558)     (744)     (172)     (515)     (687)     (357)   (1,070)   (1,427) 
Performance incentive fee                                      5         -         -         -      (32)      (94)     (126)         -         -         - 
Other expenses                                                       (141)         -     (141)     (143)         -     (143)     (268)         -     (268) 
                                                            ----  --------  --------  --------  --------  --------  --------  --------  --------  -------- 
Profit/(loss) on ordinary activities before tax                         76   (1,853)   (1,777)       246     2,069     2,315       669     2,004     2,673 
Tax (charge)/credit on ordinary activities                             (2)         2         -      (21)        21         -      (76)        76         - 
                                                            ----  --------  --------  --------  --------  --------  --------  --------  --------  -------- 
Profit/(loss) and total comprehensive income attributable 
 to shareholders                                                        74   (1,851)   (1,777)       225     2,090     2,315       593     2,080     2,673 
----------------------------------------------------------  ----  --------  --------  --------  --------  --------  --------  --------  --------  -------- 
Basic and diluted return/(loss) per share (pence)*             7      0.08    (2.03)    (1.95)      0.28      2.64      2.92      0.73      2.55      3.28 
----------------------------------------------------------  ----  --------  --------  --------  --------  --------  --------  --------  --------  -------- 
 
   * adjusted for treasury shares 
 
 
 
   The accompanying notes below form an integral part of this Half-yearly 
Financial Report. 
 
   Comparative figures have been extracted from the unaudited Half-yearly 
Financial Report for the six months ended 30 June 2019 and the audited 
statutory accounts for the year ended 31 December 2019. 
 
   The total column of this condensed income statement represents the 
profit and loss account of the Company. The supplementary revenue and 
capital columns have been prepared in accordance with The Association of 
Investment Companies' Statement of Recommended Practice. 
 
   Condensed balance sheet 
 
 
 
 
                                 Unaudited      Unaudited         Audited 
                                30 June 2020   30 June 2019   31 December 2019 
                         Note     GBP'000        GBP'000          GBP'000 
-----------------------  ----  -------------  -------------  ----------------- 
 
Fixed asset investments               52,585         56,233             51,406 
 
Current assets 
Current asset 
 investments                           4,057          2,603              3,878 
Trade and other 
 receivables less than 
 one year                                177          1,403                304 
Cash and cash 
 equivalents                          17,074         11,753             14,529 
                               -------------  -------------  ----------------- 
                                      21,308         15,759             18,711 
 
Total assets                          73,893         71,992             70,117 
 
Payables: amounts 
falling due within one 
year 
Trade and other 
 payables less than one 
 year                                  (446)          (545)              (434) 
                               -------------  -------------  ----------------- 
Total assets less 
 current liabilities                  73,447         71,447             69,683 
                               -------------  -------------  ----------------- 
 
Equity attributable to 
equity holders 
Called up share capital     8          1,036            934                938 
Share premium                         44,687         36,418             36,712 
Capital redemption 
 reserve                                  12             12                 12 
Unrealised capital 
 reserve                              13,383         18,320             14,702 
Realised capital 
 reserve                              14,619         11,543             15,151 
Other distributable 
 reserve                               (290)          4,220              2,168 
                               -------------  -------------  ----------------- 
Total equity 
 shareholders' funds                  73,447         71,447             69,683 
                               -------------  -------------  ----------------- 
 
Basic and diluted net 
 asset value per share 
 (pence)*                              79.30          85.28              83.47 
-----------------------  ----  -------------  -------------  ----------------- 
 
 
   *excluding treasury shares 
 
   The accompanying notes below form an integral part of this Half-yearly 
Financial Report. 
 
   Comparative figures have been extracted from the unaudited Half-yearly 
Financial Report for the six months ended 30 June 2019 and the audited 
statutory accounts for the year ended 31 December 2019. 
 
   These Financial Statements were approved by the Board of Directors and 
authorised for issue on 3 September 2020, and were signed on its behalf 
by 
 
   Ben Larkin 
 
   Chairman 
 
   Company number: 03654040 
 
   Condensed statement of changes in equity 
 
 
 
 
                                                                                  Capital    Unrealised  Realised      Other 
                                                       Called up share   Share   redemption   capital    capital   distributable 
                                                           capital      premium   reserve     reserve    reserve*    reserve*      Total 
                                                           GBP'000      GBP'000   GBP'000     GBP'000    GBP'000      GBP'000     GBP'000 
-----------------------------------------------------  ---------------  -------  ----------  ----------  --------  -------------  ------- 
As at 1 January 2020                                               938   36,712          12      14,702    15,151          2,168   69,683 
Profit/(loss) and total comprehensive income for the 
 period                                                              -        -           -     (1,338)     (513)             74  (1,777) 
Transfer of previously unrealised losses on disposal 
 of investments                                                      -        -           -          19      (19)              -        - 
Purchase of shares for treasury                                      -        -           -           -         -          (456)    (456) 
Issue of equity                                                     98    8,172           -           -         -              -    8,270 
Cost of issue of equity                                              -    (197)           -           -         -              -    (197) 
Dividends paid                                                       -        -           -           -         -        (2,076)  (2,076) 
As at 30 June 2020                                               1,036   44,687          12      13,383    14,619          (290)   73,447 
-----------------------------------------------------  ---------------  -------  ----------  ----------  --------  -------------  ------- 
As at 1 January 2019                                               839   28,406          12      16,234    11,539          6,348   63,378 
Profit/(loss) and total comprehensive income for the 
 period                                                              -        -           -       2,510     (420)            225    2,315 
Transfer of previously unrealised gains on disposal 
 of investments                                                      -        -           -       (424)       424              -        - 
Purchase of shares for treasury                                      -        -           -           -         -          (473)    (473) 
Issue of equity                                                     95    8,211           -           -         -              -    8,306 
Cost of issue of equity                                              -    (199)           -           -         -              -    (199) 
Dividends paid                                                       -        -           -           -         -        (1,880)  (1,880) 
As at 30 June 2019                                                 934   36,418          12      18,320    11,543          4,220   71,447 
-----------------------------------------------------  ---------------  -------  ----------  ----------  --------  -------------  ------- 
As at 1 January 2019                                               839   28,406          12      16,234    11,539          6,348   63,378 
Profit and total comprehensive income for the period                 -        -           -       1,667       413            593    2,673 
Transfer of unrealised gains on disposal of 
 investments                                                         -        -           -     (3,199)     3,199              -        - 
Purchase of shares for treasury                                      -        -           -           -         -        (1,013)  (1,013) 
Issue of equity                                                     99    8,521           -           -         -              -    8,620 
Cost of issue of equity                                              -    (215)           -           -         -              -    (215) 
Dividends paid                                                       -        -           -           -         -        (3,760)  (3,760) 
-----------------------------------------------------  ---------------  -------  ----------  ----------  --------  -------------  ------- 
As at 31 December 2019                                             938   36,712          12      14,702    15,151          2,168   69,683 
-----------------------------------------------------  ---------------  -------  ----------  ----------  --------  -------------  ------- 
 
 
   *These reserves amount to GBP14,329,000 (30 June 2019: GBP15,763,000; 31 
December 2019: GBP17,319,000) which is considered distributable. 
 
   Condensed statement of cash flows 
 
 
 
 
                           Unaudited          Unaudited           Audited 
                        six months ended   six months ended      year ended 
                          30 June 2020       30 June 2019     31 December 2019 
                            GBP'000            GBP'000            GBP'000 
---------------------  -----------------  -----------------  ----------------- 
Cash flow from 
operating activities 
Loan stock income 
 received                            301                588              1,131 
Deposit interest 
 received                             34                 24                 49 
Dividend income 
 received                            141                104                151 
Investment management 
 fee paid                          (716)              (708)            (1,435) 
Performance incentive 
 fee paid                              -              (420)              (420) 
Other cash payments                (154)              (145)              (253) 
Corporation tax paid                   -                  -                  - 
                       -----------------  -----------------  ----------------- 
Net cash flow from 
 operating 
 activities                        (394)              (557)              (777) 
 
Cash flow from 
investing activities 
Purchase of current 
 asset investments               (1,190)            (1,200)            (2,400) 
Purchase of fixed 
 asset investments               (1,614)            (2,832)            (5,675) 
Disposal of fixed 
 asset investments                   196              1,382             10,560 
Net cash flow from 
 investing 
 activities                      (2,608)            (2,650)              2,485 
                       -----------------  -----------------  ----------------- 
 
Cash flow from 
financing activities 
Issue of share 
 capital                           7,738              7,807              7,807 
Cost of issue of 
 shares                             (16)                (2)               (30) 
Equity dividends paid            (1,719)            (1,561)            (3,132) 
Purchase of own 
 shares (including 
 costs)                            (456)              (473)            (1,013) 
                       -----------------  -----------------  ----------------- 
Net cash flow from 
 financing 
 activities                        5,547              5,771              3,632 
                       -----------------  -----------------  ----------------- 
 
Increase in cash and 
 cash equivalents                  2,545              2,564              5,340 
Cash and cash 
 equivalents at start 
 of period                        14,529              9,189              9,189 
                       -----------------  -----------------  ----------------- 
Cash and cash 
 equivalents at end 
 of period                        17,074             11,753             14,529 
---------------------  -----------------  -----------------  ----------------- 
 
   Notes to the condensed Financial Statements 
 
   1. Basis of accounting 
 
   The condensed Financial Statements have been prepared in accordance with 
the historical cost convention, modified to include the revaluation of 
investments, in accordance with applicable United Kingdom law and 
accounting standards, including Financial Reporting Standard 102 ("FRS 
102"), Financial Reporting Standard 104 -- Interim Financial Reporting 
("FRS 104"), and with the Statement of Recommended Practice "Financial 
Statements of Investment Trust Companies and Venture Capital Trusts" 
("SORP") issued by The Association of Investment Companies ("AIC"). The 
Financial Statements have been prepared on a going concern basis. 
 
   The preparation of the Financial Statements requires management to make 
judgements and estimates that affect the application of policies and 
reported amounts of assets, liabilities, income and expenses. The most 
critical estimates and judgements relate to the determination of 
carrying value of investments at fair value through profit and loss 
("FVTPL"). The Company values investments by following the International 
Private Equity and Venture Capital Valuation ("IPEV") Guidelines as 
issued in 2018 and further detail on the valuation techniques used are 
in note 2 below. 
 
   This Half-yearly Financial Report has not been audited, nor has it been 
reviewed by the auditor pursuant to the FRC's guidance on Review of 
interim financial information. 
 
   Company information can be found on page 2 of the full Half-yearly 
Financial Report. 
 
   2. Accounting policies 
 
   Fixed and current asset investments 
 
   The Company's business is investing in financial assets with a view to 
profiting from their total return in the form of income and capital 
growth. This portfolio of financial assets is managed and its 
performance evaluated on a fair value basis, in accordance with a 
documented investment policy, and information about the portfolio is 
provided internally on that basis to the Board. 
 
   In accordance with the requirements of FRS 102, the undertakings in 
which the Company holds more than 20 per cent. of the equity as part of 
an investment portfolio are not accounted for using the equity method. 
In these circumstances the investment is measured at FVTPL. 
 
   Upon initial recognition (using trade date accounting) investments are 
designated by the Company as FVTPL and are included at their initial 
fair value, which is cost (excluding expenses incidental to the 
acquisition which are written off to the income statement). 
 
   Subsequently, the investments are valued at fair value, which is 
measured as follows: 
 
   --       Investments listed on recognised exchanges, including liquid 
open-ended equity funds, are valued at their bid prices at the end of 
the accounting period or otherwise at fair value based on published 
price quotations; 
 
   --      Unquoted investments, where there is not an active market, are 
valued using an appropriate valuation technique in accordance with the 
IPEV Guidelines. Indicators of fair value are derived using established 
methodologies including earnings multiples, the level of third party 
offers received, cost or price of recent investment rounds, net assets 
and industry valuation benchmarks. Where price of recent investment is 
used as a starting point for estimating fair value at subsequent 
measurement dates, this has been benchmarked using an appropriate 
valuation technique permitted by the IPEV guidelines. 
 
   --      In situations where cost or price of recent investment is used, 
consideration is given to the circumstances of the portfolio company 
since that date in determining fair value. This includes consideration 
of whether there is any evidence of deterioration or strong definable 
evidence of an increase in value. In the absence of these indicators, 
the investment in question is valued at the amount reported at the 
previous reporting date. Examples of events or changes that could 
indicate a diminution include: 
 
   --    the performance and/or prospects of the underlying business are 
significantly below the expectations on which the investment was based; 
 
   --    a significant adverse change either in the portfolio company's 
business or in the technological, market, economic, legal or regulatory 
environment in which the business operates; or 
 
   --    market conditions have deteriorated, which may be indicated by a 
fall in the share prices of quoted businesses operating in the same or 
related sectors. 
 
   Investments are recognised as financial assets on legal completion of 
the investment contract and are de-recognised on legal completion of the 
sale of an investment. 
 
   Dividend income is not recognised as part of the fair value movement of 
an investment, but is recognised separately as investment income through 
the other distributable reserve when a share becomes ex-dividend. 
 
   Other current assets and payables 
 
   Receivables, payables and cash are carried at amortised cost, in 
accordance with FRS 102. There are no financial liabilities other than 
creditors. 
 
   Investment income 
 
   Equity income 
 
   Dividend income is included in revenue when the investment is quoted 
ex-dividend. 
 
   Unquoted loan stock 
 
   Fixed returns on non-equity shares and debt securities are recognised 
when the Company's right to receive payment and expect settlement is 
established. Where interest is rolled up and/or payable at redemption 
then it is recognised as income unless there is reasonable doubt as to 
its receipt. 
 
   Bank interest income 
 
   Interest income is recognised on an accruals basis using the rate of 
interest agreed with the bank. 
 
   Investment management fees, performance incentive fees and expenses 
 
   All expenses have been accounted for on an accruals basis. Expenses are 
charged through the other distributable reserve except the following 
which are charged through the realised capital reserve: 
 
 
   -- 75 per cent. of management fees and performance incentive fees are 
      allocated to the capital account to the extent that these relate to an 
      enhancement in the value of the investments. This is in line with the 
      Board's expectation that over the long term 75 per cent. of the Company's 
      investment returns will be in the form of capital gains; and 
 
   -- expenses which are incidental to the purchase or disposal of an 
      investment are charged through the realised capital reserve. 
 
   Taxation 
 
   Taxation is applied on a current basis in accordance with FRS 102. 
Current tax is tax payable (refundable) in respect of the taxable profit 
(loss) for the current period or past reporting periods using the tax 
rates and laws that have been enacted or substantively enacted at the 
financial reporting date. Taxation associated with capital expenses is 
applied in accordance with the SORP. 
 
   Deferred tax is provided in full on all timing differences at the 
reporting date. Timing differences are differences between taxable 
profits and total comprehensive income as stated in the Financial 
Statements that arise from the inclusion of income and expenses in tax 
assessments in periods different from those in which they are recognised 
in the Financial Statements. As a VCT the Company has an exemption from 
tax on capital gains. The Company intends to continue meeting the 
conditions required to obtain approval as a VCT in the foreseeable 
future. The Company therefore, should have no material deferred tax 
timing differences arising in respect of the revaluation or disposal of 
investments and the Company has not provided for any deferred tax. 
 
   Reserves 
 
   Share premium 
 
   This reserve accounts for the difference between the price paid for 
shares and the nominal value of the shares, less issue costs. 
 
   Capital redemption reserve 
 
   This reserve accounts for amounts by which the issued share capital is 
diminished through the repurchase and cancellation of the Company's own 
shares. 
 
   Unrealised capital reserve 
 
   Increases and decreases in the valuation of investments held at the 
period end against cost, are included in this reserve. 
 
   Realised capital reserve 
 
   The following are disclosed in this reserve: 
 
 
   -- gains and losses compared to cost on the realisation of investments, or 
      permanent diminutions in value; 
 
   -- expenses, together with the related taxation effect, charged in 
      accordance with the above policies; and 
 
   -- dividends paid to equity holders. 
 
   Other distributable reserve 
 
   The special reserve, treasury share reserve and the revenue reserve were 
combined in 2012 to form a single reserve named other distributable 
reserve. 
 
   This reserve accounts for the movements from the revenue column of the 
Income statement, the payment of dividends, the buy-back of shares and 
other non-capital realised movements. 
 
   Dividends 
 
   Dividends by the Company are accounted for in the period in which the 
dividend is paid or approved at the Annual General Meeting. 
 
   Segmental reporting 
 
   The Directors are of the opinion that the Company is engaged in a single 
operating segment of business, being investment in equity and debt. The 
Company invests in smaller companies principally based in the UK. 
 
   3.             (Losses)/gains on investments 
 
 
 
 
                           Unaudited          Unaudited           Audited 
                        six months ended   six months ended      year ended 
                          30 June 2020       30 June 2019     31 December 2019 
                            GBP'000            GBP'000            GBP'000 
--------------------- 
Unrealised 
 (losses)/gains on 
 fixed asset 
 investments                       (327)              2,350              1,431 
Unrealised 
 (losses)/gains on 
 current asset 
 investments                     (1,011)                160                236 
Realised gains on 
 fixed asset 
 investments                          43                168              1,407 
                                 (1,295)              2,678              3,074 
                       -----------------  -----------------  ----------------- 
 
 
   4.             Investment income 
 
 
 
 
                           Unaudited          Unaudited           Audited 
                        six months ended   six months ended      year ended 
                          30 June 2020       30 June 2019     31 December 2019 
                            GBP'000            GBP'000            GBP'000 
--------------------- 
Loan stock interest 
 and other fixed 
 returns                             302                435                977 
UK dividend income                    68                134                268 
Bank deposit interest                 33                 24                 49 
                       -----------------  -----------------  ----------------- 
                                     403                593              1,294 
                       -----------------  -----------------  ----------------- 
 
 
   5.             Investment management fee and performance incentive fee 
 
 
 
 
                           Unaudited          Unaudited           Audited 
                        six months ended   six months ended      year ended 
                          30 June 2020       30 June 2019     31 December 2019 
                            GBP'000            GBP'000            GBP'000 
--------------------- 
Investment management 
 fee charged to 
 revenue                             186                172                357 
Investment management 
 fee charged to 
 capital                             558                515              1,070 
Performance incentive 
 fee charged to 
 revenue                               -                 32                  - 
Performance incentive 
 fee charged to 
 capital                               -                 94                  - 
                       -----------------  -----------------  ----------------- 
                                     744                813              1,427 
                       -----------------  -----------------  ----------------- 
 
 
 
   Further details of the Management agreement under which the investment 
management fee and performance incentive fee are paid are given in the 
Strategic report on page 12 of the Annual Report and Financial 
Statements for the year ended 31 December 2019. 
 
   During the period, services to a total value of GBP744,000 (30 June 
2019: GBP687,000; 31 December 2019: GBP1,427,000) were purchased by the 
Company from Albion Capital Group LLP. At the financial period end, the 
amount due to Albion Capital Group LLP in respect of these services was 
GBP375,000 (30 June 2019: GBP333,000; 31 December 2019: GBP347,000). The 
total annual running costs of the Company are capped at an amount equal 
to 2.5 per cent. of the Company's net assets, with any excess being met 
by Albion by way of a reduction in management fees. During the period, 
the management fee was reduced by GBP48,000 as a result of this cap (30 
June 2019: GBP64,000; 31 December 2019: GBP105,000). For the period to 
30 June 2020, no performance incentive fee has been accrued, however any 
performance incentive fee is only payable on year end results (30 June 
2019: GBP126,000; 31 December 2019: GBPnil). 
 
   During the period, the Company was not charged by Albion Capital Group 
LLP in respect of Patrick Reeve's services as a Director (30 June 2019: 
GBPnil; 31 December 2019: GBPnil). 
 
   Albion Capital Group LLP, its Partners and staff (including Patrick 
Reeve) hold 660,830 Ordinary shares in the Company as at 30 June 2020. 
 
   The Manager is, from time to time, eligible to receive arrangement fees 
and monitoring fees from portfolio companies. During the period ended 30 
June 2020, fees of GBP77,000 attributable to the investments of the 
Company were paid pursuant to these arrangements (30 June 2019: 
GBP108,000; 31 December 2019: GBP198,000). 
 
   The Company has entered into an offer agreement relating to the Offers 
with the Company's investment manager Albion Capital Group LLP, pursuant 
to which Albion Capital will receive a fee of 2.5 per cent. of the gross 
proceeds of the Offers and out of which Albion Capital will pay the 
costs of the Offers, as detailed in the Prospectus. 
 
   During the period, an amount of GBP1,190,000 (30 June 2019: 
GBP1,200,000; 31 December 2019: GBP2,400,000) was invested in the SVS 
Albion OLIM UK Equity Income Fund ("OUEIF") as part of the Company's 
management of surplus liquid funds. To avoid double charging, Albion 
agreed to reduce its management fee relating to the investment in the 
OUEIF by 0.75 per cent., which represents the OUEIF management fee 
charged by OLIM. This resulted in a further reduction of the management 
fee of GBP12,000 (30 June 2019: GBP7,000; 31 December 2019: GBP20,000). 
 
   6.             Dividends 
 
 
 
 
                                                                Unaudited          Unaudited           Audited 
                                                             six months ended   six months ended      year ended 
                                                               30 June 2020       30 June 2019     31 December 2019 
                                                                 GBP'000            GBP'000            GBP'000 
Dividend of 2.25p per Ordinary share paid on 31 May 
 2019                                                                       -              1,880              1,880 
Dividend of 2.25p per Ordinary share paid on 30 September 
 2019                                                                       -                  -              1,885 
Dividend of 2.25p per Ordinary share paid on 29 May 
 2020                                                                   2,076                  -                  - 
Unclaimed dividends                                                         -                  -                (5) 
                                                                        2,076              1,880              3,760 
                                                            -----------------  -----------------  ----------------- 
 
 
   The Directors have declared a second dividend for the year ending 31 
December 2020 of 1.99 pence per Ordinary share (total approximately 
GBP1,843,000), payable on 30 September 2020 to shareholders on the 
register on 11 September 2020. The details of the new dividend policy 
can be found in the Interim management report above. 
 
   7.             Basic and diluted return/(loss) per share 
 
 
 
 
                     Unaudited            Unaudited       Audited 
                  six months ended     six months ended    year ended 
                    30 June 2020         30 June 2019      31 December 2019 
                 Revenue   Capital    Revenue   Capital    Revenue   Capital 
--------------  ---------            ---------            --------- 
Return/(loss) 
 attributable 
 to Ordinary 
 shares 
 (GBP'000)             74   (1,851)        225   2,090          593   2,080 
Weighted 
 average 
 shares in 
 issue              91,020,671           79,196,675           81,487,820 
Return/(loss) 
 per Ordinary 
 share 
 (pence)             0.08    (2.03)       0.28      2.64       0.73      2.55 
 
 
   The weighted average number of shares is calculated after adjusting for 
treasury shares of 10,954,270 (30 June 2019: 9,668,156; 31 December 
2019: 10,350,156). 
 
   There are no convertible instruments, derivatives or contingent share 
agreements in issue hence there are no dilution effects to the return 
per share. The basic return per share is therefore the same as the 
diluted return per share. 
 
   8.             Called up share capital 
 
 
 
 
                                                                     Audited 
Allotted, called up and fully paid     Unaudited      Unaudited     31 December 
 Ordinary shares of 1 penny each      30 June 2020   30 June 2019      2019 
Number of shares                       103,573,410     93,449,963    93,828,305 
Nominal value of allotted shares 
 (GBP'000)                                   1,036            934           938 
Voting rights (number of shares 
 net of treasury shares)                92,619,140     83,781,807    83,478,149 
 
   During the period to 30 June 2020 the Company purchased 604,114 Ordinary 
shares (nominal value GBP6,041) for treasury at a cost of GBP456,000. 
The total number of Ordinary shares held in treasury as at 30 June 2020 
was 10,954,270 (30 June 2019: 9,668,156; 31 December 2019: 10,350,156) 
representing 10.6 per cent. of the Ordinary shares in issue as at 30 
June 2020. 
 
   Under the terms of the Dividend Reinvestment Scheme Circular dated 27 
August 2008, the following new Ordinary shares, of nominal value 1 penny 
each, were allotted: 
 
 
 
 
                      Aggregate 
             Number    nominal 
               of     value of      Issue price        Net 
   Date of   shares    shares       (pence per      invested   Opening market price on allotment date (pence per 
 allotment  allotted  (GBP'000)       share)        (GBP'000)                        share) 
    29 May 
      2020   467,957          5              75.41        336                                              72.00 
 
 
   Under the terms of the Albion VCTs Prospectus Top Up Offers 2019/20, the 
following new Ordinary shares, of nominal value 1 penny each, were 
allotted during the period to 30 June 2020: 
 
 
 
 
                       Aggregate 
                        nominal                           Net 
            Number of  value of      Issue price     consideration 
   Date of   shares     shares       (pence per        received     Opening market price on allotment date (pence per 
 allotment  allotted   (GBP'000)       share)          (GBP'000)                          share) 
31 January 
      2020  1,843,797         18              84.80          1,540                                              79.50 
31 January 
      2020    401,498          4              85.30            336                                              79.50 
31 January 
      2020  6,789,082         68              85.70          5,674                                              79.50 
  30 April 
      2020    137,627          1              78.90            106                                              74.50 
  30 April 
      2020    105,144          1              79.70             81                                              74.50 
            9,277,148         93                             7,737 
            ---------  ---------                     ------------- 
 
   9.            Commitments and contingencies 
 
   As at 30 June 2020, the Company had no financial commitments in respect 
of investments (30 June 2019: GBPnil; 31 December 2019: GBPnil). 
 
   There were no contingencies or guarantees of the Company as at 30 June 
2020 (30 June 2019: GBPnil; 31 December 2019: GBPnil). 
 
   10.          Post balance sheet events 
 
   The following are the post balance sheet events since 30 June 2020: 
 
   --Investment of GBP1,374,000 in Quantexa Limited; 
 
   --Investment of GBP492,000 in a new portfolio company, which provides a 
cloud platform that enables corporates to purchase digital gift cards 
and to distribute them to employees and customers; 
 
   --Investment of GBP301,000 in Phrasee Limited; 
 
   --Investment of GBP234,000 in uMotif Limited; 
 
   --Investment of GBP112,000 in Oxsensis Limited; and 
 
   --Investment of GBP47,000 in The Evewell (Harley Street) Limited. 
 
   11.          Related party transactions 
 
   Other than transactions with the Manager as disclosed in note 5 and that 
disclosed above, there are no other related party transactions or 
balances requiring disclosure. 
 
   12.          Going concern 
 
   The Board has conducted a detailed assessment of the Company's ability 
to meet its liabilities as they fall due. Cash flow forecasts are 
updated and discussed quarterly at Board level and have been stress 
tested to allow for the forecasted impact of Coronavirus (Covid-19). The 
Board have revisited and updated their assessment of liquidity risk and 
concluded that it remains unchanged since the last Annual Report and 
Financial Statements. Further details can be found on page 62 of those 
accounts. 
 
   The portfolio of investments is diversified in terms of sector and the 
major cash outflows of the Company (namely investments, dividends and 
share buy-backs) are within the Company's control. Accordingly, after 
making diligent enquiries, the Directors have a reasonable expectation 
that the Company has adequate cash and liquid resources to continue in 
operational existence for the foreseeable future. For this reason, the 
Directors have adopted the going concern basis in preparing this 
Half-yearly Financial Report and this is in accordance with the Guidance 
on Risk Management, Internal Control and Related Financial and Business 
Reporting issued by the Financial Reporting Council in September 2014. 
 
   13.          Risks and uncertainties 
 
   In addition to the risks and uncertainties outlined in the Interim 
management report, the Board confirms that the following major risks and 
uncertainties facing the Company have not materially changed from those 
identified in the Annual Report and Financial Statements for the year 
ended 31 December 2019. The impact of the Coronavirus (Covid-19) 
pandemic has created heightened uncertainty but has not changed the 
nature of these risks. The Board considers that the processes for 
mitigating these risks remain appropriate. 
 
   1. Investment, performance and valuation risk 
 
   The risk of investment in poor quality businesses, which could reduce 
the capital and income returns to shareholders and could negatively 
impact on the Company's current and future valuations. 
 
   By nature, smaller unquoted businesses, such as those that qualify for 
venture capital trust purposes, are more fragile than larger, long 
established businesses. 
 
   The Company's investment valuation methodology is reliant on the 
accuracy and completeness of information that is issued by portfolio 
companies. In particular, the Directors may not be aware of or take into 
account certain events or circumstances which occur after the 
information issued by such companies is reported. 
 
   To reduce this risk, the Board places reliance upon the skills and 
expertise of the Manager and its track record over many years of making 
successful investments in this segment of the market. In addition, the 
Manager operates a formal and structured investment appraisal and review 
process, which includes an Investment Committee, comprising investment 
professionals from the Manager and at least one external investment 
professional. The Manager also invites and takes account of comments 
from non-executive Directors of the Company on matters discussed at the 
Investment Committee meetings. Investments are actively and regularly 
monitored by the Manager (investment managers normally sit on portfolio 
company boards), including the level of diversification in the portfolio, 
and the Board receives detailed reports on each investment as part of 
the Manager's report at quarterly board meetings. 
 
   The unquoted investments held by the Company are designated at fair 
value through profit or loss and valued in accordance with the 
International Private Equity and Venture Capital Valuation Guidelines. 
These guidelines set out recommendations, intended to represent current 
best practice on the valuation of venture capital investments. The 
valuation takes into account all known material facts up to the date of 
approval of the Financial Statements by the Board. 
 
   2. VCT approval risk 
 
   The Company must comply with section 274 of the Income Tax Act 2007 
which enables its investors to take advantage of tax relief on their 
investment and on future returns. Breach of any of the rules enabling 
the Company to hold VCT status could result in the loss of that status. 
 
   To reduce this risk, the Board has appointed the Manager, which has a 
team with significant experience in venture capital trust management, 
used to operating within the requirements of the venture capital trust 
legislation. In addition, to provide further formal reassurance, the 
Board has appointed Philip Hare & Associates LLP as its taxation adviser, 
who report quarterly to the Board to independently confirm compliance 
with the venture capital trust legislation, to highlight areas of risk 
and to inform on changes in legislation. Each investment in a new 
portfolio company is also pre-cleared with our profession advisors or 
H.M. Revenue & Customs. The Company monitors closely the extent of 
qualifying holdings and addresses this as required. 
 
   3. Regulatory and compliance risk 
 
   The Company is listed on The London Stock Exchange and is required to 
comply with the rules of the UK Listing Authority, as well as with the 
Companies Act, Accounting Standards and other legislation. Failure to 
comply with these regulations could result in a delisting of the 
Company's shares, or other penalties under the Companies Act or from 
financial reporting oversight bodies. 
 
   Board members and the Manager have experience of operating at senior 
levels within or advising quoted companies. In addition, the Board and 
the Manager receive regular updates on new regulation from its auditor, 
lawyers and other professional bodies. The Company is subject to 
compliance checks through the Manager's compliance officer, and any 
issues arising from compliance or regulation are reported to its own 
Board on a monthly basis. These controls are also reviewed as part of 
the quarterly Board meetings, and also as part of the review work 
undertaken by the Manager's compliance officer. The report on controls 
is also evaluated by the internal auditors. 
 
   4. Operational and internal control risk 
 
   The Company relies on a number of third parties, in particular the 
Manager, for the provision of investment management and administrative 
functions. Failures in key systems and controls within the Manager's 
business could put assets of the Company at risk or result in reduced or 
inaccurate information being passed to the Board or to shareholders. 
 
   The Company and its operations are subject to a series of rigorous 
internal controls and review procedures exercised throughout the year. 
 
   The Audit Committee reviews the Internal Audit Reports prepared by the 
Manager's internal auditors, PKF Littlejohn LLP and has access to the 
internal audit partner of PKF Littlejohn LLP to provide an opportunity 
to ask specific detailed questions in order to satisfy itself that the 
Manager has strong systems and controls in place including those in 
relation to business continuity. 
 
   From 1 October 2018, Ocorian (UK) Limited was appointed as Depositary to 
oversee the custody and cash arrangements and provide other AIFMD 
duties. The Board reviews the quarterly reports prepared by Ocorian (UK) 
Limited to ensure that Albion Capital is adhering to its policies and 
procedures as required by the AIFMD. 
 
   In addition, the Board regularly reviews the performance of its key 
service providers, particularly the Manager, to ensure they continue to 
have the necessary expertise and resources to deliver the Company's 
investment objective and policies. The Manager and other service 
providers have also demonstrated to the Board that there is no undue 
reliance placed upon any one individual. 
 
   5. Economic, political and social risk 
 
   Changes in economic conditions, including, for example, interest rates, 
rates of inflation, industry conditions, competition, political and 
diplomatic events and other factors could substantially and adversely 
affect the Company's prospects in a number of ways. This also includes 
risks of social upheaval, including from infection and population 
re-distribution, as well as economic risk challenges as a result of 
healthcare pandemics/infection. 
 
   The Company invests in a diversified portfolio of companies across a 
number of industry sectors and in addition often invests a mixture of 
instruments in portfolio companies and has a policy of minimising any 
external bank borrowings within portfolio companies. 
 
   At any given time, the Company has sufficient cash resources to meet its 
operating requirements, including share buy-backs and follow on 
investments. 
 
   In common with most commercial operations, exogenous risks over which 
the Company has no control are always a risk and the Company does what 
it can to address these risks where possible, not least as the nature of 
the investments the Company makes are long term. 
 
   6. Market value of Ordinary shares 
 
   The market value of Ordinary shares can fluctuate. The market value of 
an Ordinary share, as well as being affected by its net asset value and 
prospective net asset value, also takes into account its dividend yield 
and prevailing interest rates. As such, the market value of an Ordinary 
share may vary considerably from its underlying net asset value. The 
market prices of shares in quoted investment companies can, therefore, 
be at a discount or premium to the net asset value at different times, 
depending on supply and demand, market conditions, general investor 
sentiment and other factors. Accordingly, the market price of the 
Ordinary shares may not fully reflect their underlying net asset value. 
 
   The Company operates a share buy-back policy, which is designed to limit 
the discount at which the Ordinary shares trade to around 5 per cent to 
net asset value, by providing a purchaser through the Company in absence 
of market purchasers. From time to time buy-backs cannot be applied, for 
example when the Company is subject to a close period, or if it were to 
exhaust any buy-back authorities. 
 
   New Ordinary shares are issued at sufficient premium to net asset value 
to cover the costs of issue and to avoid asset value dilution to 
existing investors. 
 
   7. Reputational risk 
 
   The Company relies on the judgement and reputation of the Manager which 
is itself subject to the risk of loss. 
 
   The Board regularly questions the Manager on its ethics, procedures, 
safeguards and investment philosophy, which should consequently result 
in the risk to reputation being minimised. 
 
   14.          Other information 
 
   The information set out in this Half-yearly Financial Report does not 
constitute the Company's statutory accounts within the terms of section 
434 of the Companies Act 2006 for the periods ended 30 June 2020 and 30 
June 2019 and is unaudited. The information for the year ended 31 
December 2019, does not constitute statutory accounts within the terms 
of section 434 of the Companies Act 2006 but is derived from the audited 
statutory accounts for the financial year, which have been delivered to 
the Registrar of Companies. The Auditor reported on those accounts; 
their report was unqualified and did not contain a statement under s498 
(2) or (3) of the Companies Act 2006. 
 
   15.          Publication 
 
   This Half-yearly Financial Report is being sent to shareholders and 
copies will be made available to the public at the registered office of 
the Company, Companies House, the National Storage Mechanism and also 
electronically at www.albion.capital/funds/AADV, where the Report can be 
accessed from the 'Financial Reports and Circulars' section. 
 
   Attachment 
 
 
   -- Pie chart AADV June 2020 
      https://ml-eu.globenewswire.com/Resource/Download/b23ef101-f20e-4963-b8c8-757fae93ef89 
 
 
 
 
 
 
 

(END) Dow Jones Newswires

September 03, 2020 09:15 ET (13:15 GMT)

Copyright (c) 2020 Dow Jones & Company, Inc.

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