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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
  1.50 1.92% 79.50 76.50 79.50 78.00 78.00 78.00 15,593 16:35:15
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Equity Investment Instruments 0.0 0.0 0.0 3,975.0 73

Albion Dev VCT Annual Financial Report

26/03/2021 5:04pm

UK Regulatory (RNS & others)


 
TIDMAADV 
 
 
   Albion Development VCT PLC 
 
   LEI Code 213800FDDMBD9QLHLB38 
 
   As required by the UK Listing Authority's Disclosure Guidance and 
Transparency Rules 4.1 and 6.3, Albion Development VCT PLC today makes 
public its information relating to the Annual Report and Financial 
Statements for the year ended 31 December 2020. 
 
   This announcement was approved for release by the Board of Directors on 
26 March 2021. 
 
   This announcement has not been audited. 
 
   The Annual Report and Financial Statements for the year ended 31 
December 2020 (which have been audited), will shortly be sent to 
shareholders. Copies of the full Annual Report and Financial Statements 
will be shown via the Albion Capital Group LLP website by clicking 
https://www.globenewswire.com/Tracker?data=gBG9pBmzZ_QbHUxqOjc7KMfg-0uFKdByGHfal3TW7lKM2g9FkYGOhaMf-0jKTRbq7UD-g72uPX4gd3Zg3XI6-ukbp6sxAPay9seD0oFLUWxWD3reukTolAY4DNa0YnHUmMISSTX0dKbTx7BWLsiwXMN_8wUPAk2XSftuRhZKcfI= 
www.albion.capital/funds/AADV/31Dec2020.pdf. The information contained 
in the Annual Report and Financial Statements will include information 
as required by the Disclosure Guidance and Transparency Rules, including 
Rule 4.1. 
 
   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 GBP54.5 million has been raised for the Ordinary shares 
through the Albion VCTs Top Up Offers since January 2011. 
 
   Financial calendar 
 
 
 
 
Record date for first dividend                                    7 May 2021 
 
Annual General Meeting                                   Noon on 12 May 2021 
Payment of first dividend                                        28 May 2021 
 
Announcement of Half-yearly results for the six months           August 2021 
 ending 30 June 2021 
 
 
   Financial highlights 
 
 
 
 
186.91p  Total shareholder value per Ordinary share from launch 
          to 31 December 2020 
-------  ------------------------------------------------------ 
 
3.82%    Shareholder return for the year ended 31 December 
          2020 
-------  ------------------------------------------------------ 
 
4.24p    Tax-free dividend per Ordinary share for the year 
          ended 31 December 2020 
-------  ------------------------------------------------------ 
 
82.42p   Net asset value per Ordinary share as at 31 December 
          2020 
-------  ------------------------------------------------------ 
 
 
   Shareholder return is calculated by the movement in total shareholder 
value for the year divided by the opening net asset value. 
 
 
 
 
                                                    Ordinary shares 
                                           31 December 2020  31 December 2019 
                                            pence per share   pence per share 
 
Opening net asset value                               83.47             84.70 
Capital return                                         3.15              2.55 
Revenue return                                         0.02              0.73 
                                           ----------------  ---------------- 
Total return                                           3.17              3.28 
Dividends paid                                       (4.24)            (4.50) 
Impact from share capital movements                    0.02            (0.01) 
                                           ----------------  ---------------- 
Net asset value                                       82.42             83.47 
-----------------------------------------  ----------------  ---------------- 
 
 
   Total shareholder value to 31 December 2020: 
 
 
 
 
                                                   Ordinary shares (pence per 
                                                             share) 
------------------------------------------------  ---------------------------- 
Total dividends paid during 
 the year 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 
                                31 December 2020                          4.24 
                                                  ---------------------------- 
Total dividends paid to 31 December 2020                                104.49 
Net asset value as at 31 December 2020                                   82.42 
                                                  ---------------------------- 
Total shareholder value to 31 December 2020                             186.91 
                                                  ---------------------------- 
 
 
   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 
https://www.globenewswire.com/Tracker?data=gBG9pBmzZ_QbHUxqOjc7KMfg-0uFKdByGHfal3TW7lJw1qbh5Ouv_nGbZPCKDZnorDMlmbMiFR7sZrde71GDPhAqt5pkR3uzg55n4dbpTA-kpKXb08MqhaFAXWkp30eH 
www.albion.capital/funds/AADV under the 'Financial summary for previous 
funds' section. 
 
   In addition to the dividends paid above, the Board has declared a first 
dividend for the year ending 31 December 2021 of 2.06 pence per Ordinary 
share payable on 28 May 2021 to shareholders on the register on 7 May 
2021. 
 
   Notes 
 
   Total shareholder value for every 100 pence invested on initial 
allotment. The table above excludes tax benefits upon subscription. 
 
   Chairman's statement 
 
   Introduction 
 
   I am pleased to announce that the Company has achieved a positive total 
return for the year of 3.17 pence per Ordinary share, in what has been a 
particularly difficult year for so many businesses and individuals. This 
return represents a 3.80% gain on opening net asset value. The year saw 
a difficult first half, whilst the Company and its portfolio companies 
came to terms with the initial Covid-19 lockdown with a total loss of 
2.34%. The second half has been rather better with the Company 
benefitting from the resilience of its portfolio in several of its 
healthcare and software businesses despite the healthcare pandemic. 
Although the full implications of the Covid-19 pandemic are still 
unknown, I am optimistic that our portfolio companies will continue to 
add value, and we can still find new investment opportunities which will 
increase shareholder value over the longer term. 
 
   Investment performance and progress 
 
   There have been several realisations during the year totalling GBP3.2 
million (2019: GBP10.5 million). The sale of G.Network Communications 
has been completed, with a strong headline total return of 3.8 times 
cost, although the terms of the sale will see proceeds being received in 
three years' time. In the current year, this still reflects a 
substantial GBP1.3 million of realised gains. Another strong exit 
returning 2.1 times cost was our holding in Clear Review, which was sold 
to the Advanced Computer Software Group. Further details on realisations 
can be found in the realisations table on page 23 of the full Annual 
Report and Financial Statements. I am also pleased to announce the 
Company has completed the sale of OmPrompt Holdings after the year end, 
which reflects a total return of 2.2 times cost. The sales proceeds have 
been received by the Company and this uplift is accounted for in the net 
asset value. 
 
   The Manager took the decision to dispose of the Company's investment in 
the SVS Albion OLIM UK Equity Income Fund following a period of poor 
performance, with the fund being impacted by the Covid-19 driven falls 
of UK quoted equities and the negative outlook for the UK Equity Income 
sector. It is the Board's intention that the sale proceeds shall be 
redeployed into innovative unquoted growth companies where the Company 
is seeing resilient growth. This has resulted in a disappointing GBP0.8 
million loss on cost, after allowing for dividends received and 
reduction in management fees over the life of the investment. 
 
   The results for the year showed net valuation gains on investments of 
GBP4.1 million, an increase from GBP3.1 million in the previous year. 
The key contributors were the uplift on Quantexa, which has been 
revalued after a further externally led funding round and Proveca, which 
continues to trade well both within the UK and EU. Egress Software 
Technologies has also contributed to this uplift, after winning some key 
new contracts during the Covid-19 pandemic, such as track and trace in 
higher education. OmPrompt Holdings also contributed to the valuation 
gain, due to the sale which completed post year end. However, Covid-19 
has impacted some of our portfolio companies negatively, and there were 
write-downs including Mirada Medical, due to the current difficulties 
selling to overstretched hospitals, and Sandcroft Avenue (trading as 
Hussle), which has been impacted by the ongoing closure of gyms. 
 
   The Company has been an active investor during the year investing a 
total of GBP5.2 million. Of this, GBP2.1 million was invested into six 
new portfolio companies, all of which are targeted to require further 
investment as the companies prove themselves and grow: 
 
 
   -- GBP575,000 into Concirrus, a software provider bringing real-time 
      behavioural data analytics to the marine and transport insurance sector; 
 
   -- GBP492,000 into The Voucher Market (trading as WeGift), a cloud platform 
      that enables corporates to purchase digital gift cards and to distribute 
      them to employees and customers; 
 
   -- GBP356,000 into Seldon Technologies, a software company that enables 
      enterprises to deploy Machine Learning models in production; 
 
   -- GBP344,000 into Credit Kudos, a challenger credit bureau helping lenders 
      optimise and automate their affordability and risk assessments; 
 
   -- GBP207,000 into TransFICC, a provider of a connectivity solution, 
      connecting financial institutions with trading venues via a single API; 
      and 
 
   -- GBP128,000 into uMedeor (trading as uMed), a middleware technology 
      platform that enables life science organisations to conduct medical 
      research programmes. 
 
 
   A further GBP3.1 million was invested into existing portfolio companies, 
including: GBP1.4 million into Quantexa to support the growth of its 
analytics platform which helps detect and protect against financial 
crime; GBP334,000 into uMotif, to continue to grow their clinical trials 
technology platform; and GBP301,000 into Phrasee to support its growth. 
 
   For a review of business and future prospects please see the Strategic 
report below. 
 
   Dividends and results 
 
   The Company paid dividends totalling 4.24 pence per share during the 
year ended 31 December 2020 (2019: 4.50 pence per share). The total 
return after tax was GBP2.9 million compared to GBP2.7 million in the 
year to 31 December 2019. 
 
   As set out in the Half-yearly Financial Report to 30 June 2020, the 
Board considered it appropriate to move to a variable dividend policy 
targeting an annual dividend yield of around 5%, based on prevailing net 
asset value rather than at a fixed rate, as it has been in the past. 
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). 
Therefore, the Board has declared a first dividend for the financial 
year ending 31 December 2021 of 2.06 pence per Ordinary share payable on 
28 May 2021 to shareholders on the register on 7 May 2021. 
 
   Risks and uncertainties 
 
   The wide reaching implications of the Covid-19 crisis is the key risk 
facing the Company, including its impact on the UK and Global economies. 
There may still also be further 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 mitigating actions are being taken. 
 
   A detailed analysis of the other risks and uncertainties facing the 
business is shown in the Strategic report below. 
 
   Share buy-backs 
 
   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. 
 
   Albion VCTs Prospectus Top Up Offers 
 
   Your Board, in conjunction with the boards of four of the other VCTs 
managed by Albion Capital Group LLP, launched a prospectus top up offer 
of new Ordinary shares on 5 January 2021. The Board announced on 26 
January 2021 that, following strong demand, it would utilise the 
over-allotment facility, bringing the total to be raised to GBP10 
million. The Offer was fully subscribed and closed to further 
applications on 11 February 2021. 
 
   The proceeds are being used to provide support to our existing portfolio 
companies during the current pandemic and to enable us to take advantage 
of new investment opportunities. The first allotment of the shares under 
the Offer was on 26 February 2021. Details of share allotments made 
during and after the financial year end can be found in notes 15 and 19 
respectively. 
 
   Annual General Meeting 
 
   The Board has been considering the current rules around the Covid-19 
pandemic on the arrangements for our forthcoming Annual General Meeting 
("AGM"). These arrangements may be subject to change, and we will keep 
shareholders up to date on our Manager's website at 
www.albion.capital/vct-hub/agms-events. 
 
   We are required by law to hold an AGM within six months of our financial 
year end. Whilst the roadmap announced by the government gives a target 
of no earlier than 21 June 2021 as the date all legal limits on mixing 
will be lifted, the Board is hesitant to delay the AGM, as the roadmap 
is clear that data rather than dates are the true driver of 
restrictions. The Board also consider last year's AGM to have been 
successfully live streamed, and therefore the AGM will be held at noon 
on 12 May 2021, at the registered office being 1 Benjamin Street, London, 
EC1M 5QL. 
 
   Full details of the business to be conducted at the Annual General 
Meeting are given in the Notice of the Meeting on pages 67 to 70 of the 
full Annual Report and Financial Statements and in the Directors' report 
on pages 32 and 33 of the full Annual Report and Financial Statements. 
 
   Covid-19 social distancing restrictions will still be in place, and 
consequently it will not be possible to allow shareholders entry into 
the building where the AGM is held. The quorum for the meeting is two, 
therefore two Directors will attend in person to allow the continuation 
of this AGM. There will also be a representative of Albion Capital Group 
LLP as Company Secretary. Our Articles of Association do not currently 
allow hybrid or wholly virtual AGMs, however, as outlined below a 
resolution is being proposed to allow this in the future. 
 
   As discussed above, following the success of the live streamed AGM last 
year, and in order to maintain shareholder engagement, the Board have 
decided to again live stream the AGM, which will include a presentation 
from the Manager, the formal business of the AGM and answering questions 
we receive from shareholders. Registration details for the live stream 
will be available at www.albion.capital/funds/AADV prior to the Meeting. 
 
   We always welcome questions from our shareholders at the AGM, and again 
this year we request that shareholders submit their questions to the 
Board in advance of the AGM. Shareholders can submit questions up until 
noon on 10 May 2021 by emailing your questions to: 
AADVchair@albion.capital 
https://www.globenewswire.com/Tracker?data=_jwuoNFvXz_hv1aT8rD-BavY-lN91qTsJuMaPIZqJBv39soZRQcmamSt8UFaxTjVaolHcCpMkIRWKKzBhKyJpQCNIRhV1N8iCLYMvBPI7YY= 
. Following the Meeting, a summary of responses will be published on the 
Manager's website at www.albion.capital/funds/AADV. 
 
   Shareholders' views are important, and the Board encourages shareholders 
to vote on the resolutions using the proxy form enclosed with this 
Annual Report and Financial Statements, or electronically at 
www.investorcentre.co.uk/eproxy. The Board has carefully considered the 
business to be approved at the AGM and recommends shareholders to vote 
in favour of all the resolutions being proposed. 
 
   Virtual and Hybrid Annual General Meetings 
 
   As noted above, the Company's Articles of Association do not currently 
allow for hybrid or virtual meetings. The Covid-19 pandemic, and the 
resulting social distancing rules, have brought to the Board's attention 
the importance of the ability to continue to interact with shareholders 
during unprecedented times. A resolution will be proposed at the 
upcoming AGM to update the Articles of Association to allow the Company 
to have the flexibility to hold hybrid or virtual meetings in the future, 
if required. 
 
   Outlook and prospects 
 
   This has been an extraordinary year, with the impact of Covid-19 heavily 
impacting the wider economy and some of our portfolio companies. However, 
we have also seen resilience in the portfolio, with some companies 
performing well despite the challenging times. We have also seen several 
new investments in companies continuing to grow through innovation and 
with the ambition to have a positive impact on the society in which they 
operate. We continue to support our portfolio companies to make 
investments and consider that the portfolio is well positioned to drive 
further long term growth. 
 
   Ben Larkin 
 
   Chairman 
 
   26 March 2021 
 
   Strategic report 
 
   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. 
 
   The full investment policy can be found above. 
 
   Current portfolio sector allocation 
 
   The pie charts at the end of this announcement show the split of the 
portfolio valuation as at 31 December 2020 by: sector; stage of 
investment; and number of employees. This is a useful way of assessing 
how the Company and its portfolio is diversified across sector, 
portfolio companies' maturity measured by revenues and their size 
measured by the number of people employed. Details of the principal 
investments made by the Company are shown in the Portfolio of 
investments on pages 21 and 22 of the full Annual Report and Financial 
Statements. 
 
   Direction of portfolio 
 
   With six new portfolio companies this year focused in the digital health 
and software sectors, we continue to see the asset based part of the 
portfolio reduce. We consider the portfolio to be well balanced, in both 
sector and stage of investment, given the restrictions the VCT rules 
place on investments. The cash balance of 22%, which has increased with 
the allotment on 26 February 2021 leaves the Company able to support our 
existing portfolio during the ongoing Covid-19 pandemic, as well as 
continuing to find new investments to add value to shareholders. 
 
   Results and dividend policy 
 
 
 
 
                                                                Ordinary 
                                                                 shares 
                                                                 GBP'000 
 
Net capital gain for the year                                        2,896 
Net revenue return for the year                                         17 
Total return for the year ended 31 December 2020                     2,913 
Dividend of 2.25 pence per share paid on 29 May 2020               (2,077) 
Dividend of 1.99 pence per share paid on 30 September 
 2020                                                              (1,843) 
Unclaimed dividends                                                      4 
                                                               ----------- 
 
Transferred from reserves                                          (1,003) 
                                                               ----------- 
 
  Net assets as at 31 December 2020                                 75,859 
                                                               ----------- 
 
  Net asset value per share as at 31 December 2020 (pence)           82.42 
-------------------------------------------------------------  ----------- 
 
 
   The Company paid dividends totalling 4.24 pence per Ordinary share 
(2019: 4.50 pence per Ordinary share). As described in the Chairman's 
statement, the Board has moved to a variable dividend policy which 
targets an annual dividend yield of around 5% on the prevailing net 
asset value. As a result the Board has declared a first dividend for the 
year ending 31 December 2021 of 2.06 pence per Ordinary share payable on 
28 May 2021 to shareholders on the register on 7 May 2021. 
 
   As shown in the Income statement below, the total investment income 
decreased to GBP692,000 (2019: GBP1,294,000). This is substantially due 
to Radnor House capitalising interest, in order to fund future capital 
expenditure and the repayment of the G.Network Communications loan, 
including the interest that had been rolled up, in the prior year. The 
revenue return to equity holders has subsequently decreased to GBP17,000 
(2019: GBP593,000). 
 
   The capital return for the year has increased to GBP2,896,000 (2019: 
GBP2,080,000). As discussed in the Chairman's statement above, this is 
mainly attributable to the uplifts in the valuations of Quantexa, 
Proveca, Egress and OmPrompt. This was partly offset by the reductions 
in Mirada Medical and Sandcroft Avenue (trading as Hussle). We remain 
confident that the portfolio will deliver over the longer term, and we 
consider that the Company has performed well to show positive capital 
returns in a year where Covid-19 has had such a devastating impact on 
the economy. 
 
   The total return was 3.17 pence per share (2019: 3.28 pence per share). 
The Balance sheet below shows that the net asset value has marginally 
decreased over the year to 82.42 pence per share (2019: 83.47 pence per 
share), which is primarily as a result of the dividends paid in the year 
totalling 4.24 pence per share. 
 
   There was a net cash inflow for the Company of GBP1,116,000 for the year 
(2019: GBP5,340,000), mainly resulting from the issue of Ordinary shares 
under the Albion VCTs Top Up Offers 2019/20. Cash inflow from 
fundraising has been utilised by investments into new and existing 
portfolio companies, dividends paid, operating activities and the 
buy-back of shares. 
 
   Review of business and future changes 
 
   The results for the year to 31 December 2020 show total shareholder 
value of 186.91 pence per Ordinary share since launch (2019: 183.72 
pence per share). 
 
   Following changes to the VCT regulations in 2017, the asset-based 
investments are decreasing as a proportion of the portfolio. As a result, 
revenue returns will remain a small proportion of overall returns, with 
the majority of future returns coming from capital gains. 
 
   A detailed review of the Company's business during the year is contained 
in the Chairman's statement above. 
 
   Details of significant events which have occurred since the end of the 
financial year are listed in note 19. Details of transactions with the 
Manager are shown in note 5. 
 
   Future prospects 
 
   As detailed in the Chairman's statement, the ongoing impact of Covid-19 
remains unknown, however, the Board believes that the Company's 
portfolio is well balanced across sectors and risk classes, which has 
been shown by the increase in shareholder value during the year and 
continues to have the potential to deliver returns to shareholders over 
the long term. 
 
   Key Performance Indicators ("KPIs") and Alternative Performance Measures 
("APMs") 
 
   The Directors believe that the following KPIs and APMs, which are 
typical for Venture Capital Trusts, used in its own assessment of the 
Company, will provide shareholders with sufficient information to assess 
how effectively the Company is applying its investment policy to meet 
its objectives. The Directors are satisfied that the results shown in 
the following KPIs and APMs give a good indication that the Company is 
achieving its investment objective and policy. These are: 
 
   1.     Total shareholder value relative to FTSE All-Share Index total 
return 
 
   The graph on page 4 of the full Annual Report and Financial Statements 
shows the total shareholder value against the FTSE All-Share Index total 
return, in both instances with dividends reinvested. Details on the 
performance of the net asset value and return per share for the year are 
shown in the Chairman's statement. 
 
   2.     Net asset value per share and total shareholder return 
 
   Total shareholder value is net asset value plus cumulative dividends 
paid since launch to 31 December 2020. 
 
   Total return to shareholders increased by 3.82% on opening net asset 
value to 186.91 pence per Ordinary share for the year ended 31 December 
2020 as a result of the positive total return of 3.19 pence per share. 
 
   3.     Movement in shareholder value in the year 
 
 
 
 
2011  2012  2013  2014  2015  2016  2017   2018   2019  2020 
----  ----  ----  ----  ----  ----  -----  -----  ----  ---- 
7.1%  4.6%  6.9%  5.4%  4.1%  6.5%  10.0%  20.3%  3.8%  3.8% 
----  ----  ----  ----  ----  ----  -----  -----  ----  ---- 
 
 
   Source: Albion Capital Group LLP 
 
   Calculated as the movement in total shareholder value for the year 
divided by the opening net asset value. 
 
   4.     Dividend distributions 
 
   Dividends paid in respect of the year ended 31 December 2020 were 4.24 
pence per share (2019: 4.50 pence per share). Cumulative dividends paid 
since inception are 104.49 pence per share. 
 
   5.     Ongoing charges 
 
   The ongoing charges ratio for the year to 31 December 2020 was 2.5% 
(2019: 2.5%). The ongoing charges ratio has been calculated using The 
Association of Investment Companies' ("AIC") recommended methodology. 
This figure shows shareholders the total recurring annual running 
expenses (including investment management fees charged to capital 
reserve) as a percentage of the average net assets attributable to 
shareholders. The ongoing charges cap is 2.5%, which has resulted in a 
saving of GBP97,000 to shareholders during the year (2019: GBP105,000). 
 
   6.     VCT regulation* 
 
   The investment policy is designed to ensure that the Company continues 
to qualify and is approved as a VCT by HMRC. In order to maintain its 
status under Venture Capital Trust legislation, a VCT must comply on a 
continuing basis with the provisions of Section 274 of the Income Tax 
Act 2007, details of which are provided in the Directors' report on page 
30 of the full Annual Report and Financial Statements. 
 
   The relevant tests to measure compliance have been carried out and 
independently reviewed for the year ended 31 December 2020. These showed 
that the Company has complied with all tests and continues to do so. 
 
   *VCT compliance is not a numerical measure of performance and thus 
cannot be defined as an APM. 
 
   Operational arrangements 
 
   The Company has delegated the investment management of the portfolio to 
Albion Capital Group LLP, which is authorised and regulated by the 
Financial Conduct Authority. Albion Capital Group LLP also provides 
company secretarial and other accounting and administrative support to 
the Company. 
 
   Management agreement 
 
   Under the Management agreement, the Manager provides investment 
management, secretarial and administrative services to the Company. The 
Management agreement may be terminated by either party on 12 months' 
notice and is subject to earlier termination in the event of certain 
breaches or on the insolvency of either party. The Manager is paid an 
annual fee equal to 2.25% of the net asset value of the Company paid 
quarterly in arrears. 
 
   Additionally, for the period that the Company held the investment in the 
SVS Albion OLIM UK Equity Income Fund ("OUEIF"), Albion agreed to reduce 
that proportion of its management fee relating to the OUEIF by 0.75% per 
annum, which represents the OUEIF management fee charged by OLIM to 
avoid any double charging for the investment exposure. 
 
   Total annual expenses, including the management fee, are limited to 2.5% 
of the net asset value, as per the resolution passed at the General 
Meeting in 2019. 
 
   The Manager is also entitled to an arrangement fee, payable by each 
portfolio company, of approximately 2% on each investment made and also 
monitoring fees where the Manager has a representative on the portfolio 
company's board. 
 
   Management performance incentive 
 
   As an incentive to maximise the return to investors, the Manager is 
entitled to charge an incentive fee in the event that the returns exceed 
minimum target levels. 
 
   The performance fee hurdle requires that the growth of the aggregate of 
the net asset value per share and dividends paid by the Company compared 
with the previous accounting date exceeds RPI plus 2%. The hurdle will 
be calculated every year, based on the previous year's closing net asset 
value per share. The starting net asset value is 84.70 pence per share, 
being the audited net asset value at 31 December 2018. The Manager 
continues to receive an amount equal to 20% of the returns achieved in 
excess of the hurdle. If the target return is not achieved in a period, 
the cumulative shortfall is carried forward to the next accounting 
period and has to be made up before an incentive fee becomes payable. 
 
   As at 31 December 2020, the total return since 1 January 2019 was 91.16 
pence, and the hurdle was 90.93 pence, resulting in an excess of 0.23 
pence per share. As a result, a performance incentive fee is payable to 
the Manager of GBP42,000 (2019: GBPnil). 
 
   Investment and co-investment 
 
   The Company co-invests with other Albion Capital Group LLP managed 
Venture Capital Trusts and funds. Allocation of investments is on the 
basis of an allocation agreement which is based, inter alia, on the 
ratio of funds available for investment and the HMRC VCT qualifying 
tests. 
 
   Evaluation of the Manager 
 
   The Board has evaluated the performance of the Manager based on: 
 
 
   -- the returns generated by the Company; 
 
   -- the continuing achievement of the 80% qualifying holdings investment 
      requirement for VCT status; 
 
   -- the long term prospects of the current portfolio of investments; 
 
   -- the management of treasury, including use of buy back and participation 
      in fund raising; 
 
   -- a review of the Management agreement and the services provided therein; 
      and 
 
   -- benchmarking the performance of the Manager to other service providers 
      including the performance of other VCTs that the Manager is responsible 
      for managing. 
 
 
   The Board believes that it is in the interests of shareholders as a 
whole, and of the Company, to continue the appointment of the Manager 
for the forthcoming year. 
 
   Alternative Investment Fund Managers Directive ("AIFMD") 
 
   The Board appointed Albion Capital Group LLP as the Company's AIFM in 
2014 as required by the AIFMD. The Manager is a full-scope Alternative 
Investment Fund Manager under the AIFMD. Ocorian Depositary (UK) Limited 
is the appointed Depositary and oversees the custody and cash 
arrangements and provides other AIFMD duties with respect to the 
Company. 
 
   Companies Act 2006 Section 172 Reporting 
 
   Under Section 172 of the Companies Act 2006, the Board has a duty to 
promote the success of the Company for the benefit of its members as a 
whole, having regard to the interests of other stakeholders in the 
Company, such as suppliers, and to do so with an understanding of the 
impact on the community and environment and with high standards of 
business conduct, which includes acting fairly between members of the 
Company. 
 
   The Board is very conscious of these wider responsibilities in the way 
it promotes the Company's culture and ensures, as part of its regular 
oversight, that the integrity of the Company's affairs is foremost in 
the way the activities are managed and promoted. This includes regular 
engagement with the wider stakeholders of the Company and being alert to 
issues that might damage the Company's standing in the way that it 
operates. The Board works very closely with the Manager in reviewing how 
stakeholder issues are handled, ensuring good governance and 
responsibility in managing the Company's affairs, as well as visibility 
and openness in how the affairs are conducted. 
 
   The Board considers its significant stakeholder groups to be: its 
shareholders; suppliers, including direct agents of the Company such as 
the Manager to whom most executive functions are delegated; its 
portfolio companies; the community and the environment in the way that 
investments are made and managed. 
 
   The Company's shareholders are key to the success of the Company. The 
Board seeks to create value for shareholders by generating strong and 
sustainable returns to provide shareholders with regular dividends and 
the prospect of capital growth. During the year, the Board has approved 
a new dividend policy, further details of which can be found in the 
Chairman's statement above. 
 
   The Board temporarily suspended buy-backs on 18 March 2020 due to the 
increasing uncertainty of the net asset value at the time. Buy-backs 
were resumed from 22 April 2020 after the announcement of the Interim 
Management Statement which included the net asset value for 31 March 
2020. The buy-back policy is an important means of providing market 
liquidity for shareholders. 
 
   Shareholders' views are important and the Board encourages shareholders 
to vote on the resolutions at the AGM. The Company's AGM is typically 
used as an opportunity to communicate with investors, including through 
a presentation made by the investment management team. However, due to 
the ongoing impact of the coronavirus outbreak, special circumstances 
are again required for this year's AGM and further details are in the 
Chairman's statement above. 
 
   Shareholders are also encouraged to attend the annual Shareholders' 
Seminar. The seminar includes some of the portfolio companies sharing 
insights into their businesses and also presentations from Albion 
executives on some of the key factors affecting the investment outlook, 
as well as a review of the past year and the plans for the year ahead. 
Details of the seminar event are placed on the Manager's website. 
Representatives of the Board attend the seminar. 
 
   The Company is an externally managed investment company with no 
employees, and as such has nothing to report in relation to employee 
engagement but does keep close attention to how the Board operates as a 
cohesive and competent unit. The Company also has no customers in the 
traditional sense and, therefore, there is also nothing to report in 
relation to relationships with customers. 
 
   The Company's suppliers are fundamental to the operations of the Company, 
particularly Albion Capital Group LLP as the Manager, given that 
day-to-day management responsibilities are sub-contracted to the 
Manager. The Board takes close account of how the Manager operates, with 
very close contact during the year and not just at scheduled Board 
meetings. Details of the Manager's and Board's responsibilities can be 
found in the Statement of corporate governance on pages 36 to 40 of the 
full Annual Report and Financial Statements. 
 
   The contractual arrangements with all the principal suppliers to the 
Company are reviewed regularly and formally once a year, alongside the 
performance of the suppliers in acquitting their responsibilities. The 
performance of the Manager in managing the portfolio and in providing 
company secretarial, administration and accounting services is reviewed 
in detail each year, which includes reviewing comparator engagement 
terms and portfolio performance. Further details on the evaluation of 
the Manager, and the decision to continue the appointment of the Manager 
for the forthcoming year, can be found in this report above. 
 
   The portfolio companies are considered key stakeholders, not least 
because they are principal drivers of value for the Company. As 
discussed in the Environmental, Social and Governance ("ESG") section 
below, the portfolio companies' impact on their stakeholders is also 
important to the Company. In most cases, an Albion executive has a place 
on the board of a portfolio company, in order to help with both business 
operation decisions, as well as good ESG practice. 
 
   The Board receives reports on ESG factors within its portfolio from the 
Manager as it is a signatory of the UN Principles for Responsible 
Investment ("UN PRI"). Further details of this are set out below. ESG, 
without its specific definition, has always been at the heart of the 
responsible investing that the Company engages in and in how the Company 
conducts itself with all of its stakeholders. 
 
   The Board, although non-executive, is fully engaged in both oversight 
and the general strategic direction of the Company. During the year the 
Board's main strategic discussions focused around cash management and 
deployment of cash for future investments, dividends and share buy-backs, 
resulting in the decision to participate in the Albion VCTs Top Up 
Offers 2020/21. Time was also spent in ensuring the Board met Corporate 
Governance requirements which continue to evolve. During the year the 
Board held a further meeting in addition to its scheduled quarterly 
meetings to discuss the effect of the Covid-19 pandemic on the Company's 
portfolio. 
 
   Environmental, Social, and Governance ("ESG") 
 
   The Company's Manager, Albion Capital Group LLP, takes the concept of 
sustainable and responsible investment very seriously for existing 
investments and in reviewing new investment opportunities. In turn, the 
Board is kept appraised of ESG issues in connection with both the 
portfolio and in how Company affairs are conducted more generally as a 
regular part of Board oversight. 
 
   Albion Capital Group LLP is a signatory of the UN PRI. The UN PRI is the 
world's leading proponent of responsible investment, working to 
understand the investment implications of ESG factors and to support its 
international network of investor signatories in incorporating these 
factors into their investment and ownership decisions. 
 
   The Board and Manager have exercised conscious principles in making 
responsible investments throughout the life of the Company, not least in 
providing finance for promising companies in a variety of important 
sectors such as technology, healthcare and renewable energy. In making 
the investments, the Manager is directly involved in the oversight and 
governance of these investments, including ensuring standards of 
reporting and visibility on business practices, all of which are 
reported to the Board of the Company. By its nature, not least in making 
qualifying investments which fulfil the criteria set by HMRC, the 
Company has focused on sustainable and longer-term investment 
propositions, some of which will fail (in the nature of all small 
companies), but some of which will grow and serve important societal 
demands. One of the most important drivers of performance is the quality 
of the investment portfolio, which goes beyond the individual valuations 
and examines the prospects of each of the portfolio companies, as well 
as the sectors in which they operate -- all requiring a longer- term 
view. 
 
   In the nature of venture capital investment, Albion Capital Group LLP is 
more intimately involved in the affairs of portfolio companies than 
might be the case for funds invested in listed securities. As such, 
Albion Capital Group LLP is in a position to influence good governance 
and behaviour in the portfolio companies, many of which are relatively 
small companies without the support of a larger company's administration 
and advisory infrastructure. 
 
   The Company adheres to the principles of the AIC Code of Corporate 
Governance and is also aware of other governance and corporate conduct 
guidance which it meets as far as practical, including in the 
constitution of a diversified and independent Board capable of providing 
constructive challenge. 
 
   The Company's portfolio is currently invested in healthcare, renewable 
energy, education, software and other technology (which includes cyber 
security and data protection), with the most significant percentage of 
the Company's portfolio invested in sectors and companies which would be 
seen by many measures to be both sustainable and socially aware on the 
services they render. 
 
   Albion Capital Group LLP incorporates ESG considerations into its 
investment decisions. These form part of its process to create value for 
investors and develop sustainable long-term strategies for portfolio 
companies. Albion Capital Group LLP reports ESG criteria to UN PRI 
(annually) and to the Board quarterly. 
 
   ESG principles are integrated at the pre-investment, investment and exit 
stages. This is reflected in transparency of reporting, governance 
principles adopted by the Company and the portfolio companies, and 
increasingly in the positive environmental or socially impactful nature 
of investments made. Albion Capital Group LLP, where relevant, considers 
climate-specific issues in its investment policies and activities. 
However, as the majority of the Company's portfolio consists of small 
(2-250 full time employees), private, typically software companies with 
limited environmental impact, climate change is not considered to be a 
significant risk, and actions are proportionate to that risk. 
 
   Pre-investment stage 
 
   An exclusion list is used to rule out investments in unsustainable areas, 
or in areas which might be perceived as socially detrimental. ESG due 
diligence is performed on each potential portfolio company to identify 
any sustainability risks associated with the investment. Identified 
sustainability risks are ranked from low to high and are reported to the 
relevant investment committee. The investment committee considers each 
potential investment. If sustainability risks are identified, 
mitigations are assessed and, if necessary, mitigation plans are put in 
place. If this is not deemed sufficient, the committee would consider 
the appropriate level and structure of funding to balance the associated 
risks. If this is not possible, investment committee approval will not 
be provided, and the investment will not proceed. 
 
   Investment stage 
 
   All new and existing portfolio companies are asked to report against an 
ESG Balanced Score Card annually. The ESG Balanced Score Card contains a 
number of sustainability factors against which a portfolio company will 
be assessed in order to determine the potential sustainability risks and 
opportunities arising from the investment. The score cards form part of 
the Manager's internal review meetings alongside discussions around 
other risk factors, and any outstanding issues are addressed in 
collaboration with the portfolio companies' senior management. 
 
   Exit stage 
 
   Albion Capital Group LLP aims to ensure that good ESG practices remain 
in place following exit. For example, by ensuring that the company 
creates a self-sustaining ESG management system during our period of 
ownership, wherever feasible. 
 
   Social and community issues, employees and human rights 
 
   The Board recognises the requirement under section 414C of the Act to 
detail information about social and community issues, employees and 
human rights; including any policies it has in relation to these matters 
and effectiveness of these policies. As an externally managed investment 
company with no employees, the Company has no formal policies in these 
matters, however, it is at the core of its responsible investment 
strategy as detailed above. 
 
   Further policies 
 
   The Company has adopted a number of further policies relating to: 
 
 
   -- Environment 
 
   -- Global greenhouse gas emissions 
 
   -- Anti-bribery 
 
   -- Anti-facilitation of tax evasion 
 
   -- Diversity 
 
 
   These are set out in the Directors' report on page 31 of the full Annual 
Report and Financial Statements. 
 
   General Data Protection Regulation 
 
   The General Data Protection Regulation has the objective of unifying 
data privacy requirements across the European Union, and continues to 
apply in the United Kingdom after Brexit. The Manager continues to take 
action to ensure that the Manager and the Company are compliant with the 
regulation. 
 
   Risk management 
 
   The Board carries out a regular review of the risk environment in which 
the Company operates, together with changes to the environment and 
individual risks. The Board also identifies emerging risks which might 
impact on the Company. In the period the most noticeable risk has been 
the global pandemic which has impacted not only public health and 
mobility but also has had an adverse impact on the economy, the full 
impact of which is likely to be uncertain for some time. 
 
 
 
   The Directors have carried out a robust assessment of the Company's 
principal risks and uncertainties, and explain how they are being 
mitigated as follows: 
 
 
 
 
Risk          Possible consequence                                             Risk management 
------------  ---------------------------------------------------------------  ------------------------------------------------------------- 
Investment,   The risk of investment in poor quality businesses,               To reduce this risk, the Board places reliance upon 
performance    which could reduce the returns to shareholders and               the skills and expertise of the Manager and its track 
and            could negatively impact on the Company's current and             record over many years of making successful investments 
valuation      future valuations.                                               in this segment of the market. In addition, the Manager 
risk           By nature, smaller unquoted businesses, such as those            operates a formal and structured investment appraisal 
               that qualify for Venture Capital Trust purposes, are             and review process, which includes an Investment Committee, 
               more volatile than larger, long established businesses.          comprising investment professionals from the Manager 
               The Company's investment valuation methodology is                for all investments, and at least one external investment 
               reliant on the accuracy and completeness of information          professional for investments greater than GBP1 million 
               that is issued by portfolio companies. In particular,            in aggregate across all the Albion managed VCTs. The 
               the Directors may not be aware of or take into account           Manager also invites and takes account of comments 
               certain events or circumstances which occur after                from non-executive Directors of the Company on matters 
               the information issued by such companies is reported.            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 Board and Manager 
                                                                                regularly review the deployment of investments and 
                                                                                cash resources available to the Company in assessing 
                                                                                liquidity required for servicing the Company's buy-backs, 
                                                                                dividend payments and operational expenses. 
                                                                                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 updated in 2018. 
                                                                                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. 
------------  ---------------------------------------------------------------  ------------------------------------------------------------- 
VCT approval  The Company must comply with section 274 of the Income           To reduce this risk, the Board has appointed the Manager, 
risk           Tax Act 2007 which enables its investors to take advantage       which has a team with significant experience in Venture 
               of tax relief on their investment and on future returns.         Capital Trust management, used to operating within 
               Breach of any of the rules enabling the Company to               the requirements of the Venture Capital Trust legislation. 
               hold VCT status could result in the loss of that status.         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 professional advisers or H.M. Revenue & Customs. 
                                                                                The Company monitors closely the extent of qualifying 
                                                                                holdings and addresses this as required. 
------------  ---------------------------------------------------------------  ------------------------------------------------------------- 
Regulatory    The Company is listed on The London Stock Exchange               Board members and the Manager have experience of operating 
and            and is required to comply with the rules of the UK               at senior levels within or advising quoted companies. 
compliance     Listing Authority, as well as with the Companies Act,            In addition, the Board and the Manager receive regular 
risk           Accounting Standards and other legislation. Failure              updates on new regulation from its auditor, lawyers 
               to comply with these regulations could result in a               and other professional bodies. The Company is subject 
               delisting of the Company's shares, or other penalties            to compliance checks through the Manager's compliance 
               under the Companies Act or from financial reporting              officer, and any issues arising from compliance or 
               oversight bodies.                                                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. 
------------  ---------------------------------------------------------------  ------------------------------------------------------------- 
Operational   The Company relies on a number of third parties, in              The Company and its operations are subject to a series 
and internal   particular the Manager, for the provision of investment          of rigorous internal controls and review procedures 
control        management and administrative functions. Failures                exercised throughout the year, and receives reports 
risk           in key systems and controls within the Manager's business        from the Manager on its internal controls and risk 
               could put assets of the Company at risk or result                management, including on matters relating to cyber 
               in reduced or inaccurate information being passed                security. 
               to the Board or to shareholders.                                 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 
                                                                                and cyber security. 
                                                                                From 1 October 2018, Ocorian Depositary (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 Depositary (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 policy. The Manager and other service 
                                                                                providers have also demonstrated to the Board that 
                                                                                there is no undue reliance placed upon any one individual. 
------------  ---------------------------------------------------------------  ------------------------------------------------------------- 
Economic,     Changes in economic conditions, including, for example,          The Company invests in a diversified portfolio of 
political      interest rates, rates of inflation, industry conditions,         companies across a number of industry sectors and 
and social     competition, political and diplomatic events, such               in addition often invests in a mixture of instruments 
risk           as the impact of Brexit, and other factors could substantially   in portfolio companies and has a policy of minimising 
               and adversely affect the Company's prospects in a                any external bank borrowings within portfolio companies. 
               number of ways. This also includes risks of social               At any given time, the Company has sufficient cash 
               upheaval, including from infection and population                resources to meet its operating requirements, including 
               re-distribution, as well as economic risk challenges             share buy-backs and follow-on investments. 
               as a result of healthcare pandemics/infection.                   In common with most commercial operations, exogenous 
               The current significant exogenous risk to the Company,           risks over which the Company has no control are always 
               the wider population and economy, is the Covid-19                a risk and the Company does what it can to address 
               pandemic.                                                        these risks where possible, not least as the nature 
                                                                                of the investments the Company makes are long term. 
                                                                                The Board and Manager are continuously assessing the 
                                                                                resilience of the portfolio, the Company and its operations 
                                                                                and the robustness of the Company's external agents 
                                                                                during the health crisis, as well as considering longer 
                                                                                term impacts on how the Company might be positioned 
                                                                                in how it invests and operates. Ensuring liquidity 
                                                                                in the portfolio to cope with exigent and unexpected 
                                                                                pressures on the finances of the portfolio and the 
                                                                                Company is an important part of the risk mitigation 
                                                                                in these uncertain times. The portfolio is structured 
                                                                                as an all-weather portfolio with c.60 companies which 
                                                                                are diversified as discussed above. Exposure is relatively 
                                                                                small to at-risk sectors that include leisure, hospitality, 
                                                                                retail and travel. 
------------  ---------------------------------------------------------------  ------------------------------------------------------------- 
Market value  The market value of Ordinary shares can fluctuate.               The Company operates a share buy-back policy, which 
of Ordinary    The market value of an Ordinary share, as well as                is designed to limit the discount at which the Ordinary 
shares         being affected by its net asset value and prospective            shares trade to around 5 per cent to net asset value, 
               net asset value, also takes into account its dividend            by providing a purchaser through the Company in absence 
               yield and prevailing interest rates. As such, the                of market purchasers. From time to time buy-backs 
               market value of an Ordinary share may vary considerably          cannot be applied, for example when the Company is 
               from its underlying net asset value. The market prices           subject to a close period, or if it were to exhaust 
               of shares in quoted investment companies can, therefore,         any buy-back authorities. 
               be at a discount or premium to the net asset value               New Ordinary shares are issued at sufficient premium 
               at different times, depending on supply and demand,              to net asset value to cover the costs of issue and 
               market conditions, general investor sentiment and                to avoid asset value dilution to existing investors. 
               other factors. Accordingly, the market price of the 
               Ordinary shares may not fully reflect their underlying 
               net asset value. 
------------  ---------------------------------------------------------------  ------------------------------------------------------------- 
Reputational  The Company relies on the judgement and reputation               The Board regularly questions the Manager on its ethics, 
risk           of the Manager which is itself subject to the risk               procedures, safeguards and investment philosophy, 
               of loss.                                                         which should consequently result in the risk to reputational 
                                                                                damage being minimised. 
------------  ---------------------------------------------------------------  ------------------------------------------------------------- 
 
   Viability statement 
 
   In accordance with the FRC UK Corporate Governance Code published in 
2018 and principle 36 of the AIC Code of Corporate Governance, the 
Directors have assessed the prospects of the Company over three years to 
31 December 2023. The Directors believe that three years is a reasonable 
period in which they can assess the future of the Company to continue to 
operate and meet its liabilities as they fall due and is also the period 
used by the Board in the strategic planning process and is considered 
reasonable for a business of our nature and size. The three year period 
is considered the most appropriate given the forecasts that the Board 
requires from the Manager and the estimated timelines for finding, 
assessing and completing investments. The three year period also takes 
account of the potential impact of new regulations, should they be 
imposed, and how they may impact the Company over the longer term, and 
the availability of cash, but cannot take into account the full extent 
of the exogenous risks that are impacting on global economies at the 
date of these accounts. 
 
 
 
   The Directors have carried out a robust assessment of the emerging and 
principal risks facing the Company as explained above, including those 
that could threaten its business model, future performance, solvency or 
liquidity. The Board also considered the procedures in place to identify 
emerging risks and the risk management processes in place to avoid or 
reduce the impact of the underlying risks. The Board focused on the 
major factors which affect the economic, regulatory and political 
environment, including any potential impact from Brexit. The Board, 
after careful consideration, believes that Brexit will have no major 
impact on the going concern of the Company, primarily due to the markets 
our portfolio companies target, which in most cases are the UK and 
increasingly, the US, for our software and technology businesses. 
Portfolio companies targeting European markets have also shown 
resilience so far. The coronavirus (Covid-19) pandemic therefore remains 
the largest uncertainty impacting on the Company. In light of this 
continuing uncertainty, robust stress tested cashflows, process 
resilience and contingencies have been examined in trying to deal with 
the principal risks faced by the Company. 
 
 
 
   The Board assessed the ability of the Company to raise finance and 
deploy capital, as well as the existing cash resources of the Company. 
The portfolio is well balanced and geared towards long term growth, 
delivering dividends and capital growth to shareholders. In assessing 
the prospects of the Company, the Directors have considered the cash 
flow by looking at the Company's income and expenditure projections and 
funding pipeline over the assessment period of three years and they 
appear realistic. 
 
 
 
   Taking into account the processes for mitigating risks, monitoring costs, 
share buy-backs and issuance, the Manager's compliance with the 
investment objective, policies and business model and the balance of the 
portfolio, the Directors have concluded that there is a reasonable 
expectation that the Company will be able to continue in operation and 
meet its liabilities as they fall due over the three year period to 31 
December 2023. 
 
 
 
   This Strategic report of the Company for the year ended 31 December 2020 
has been prepared in accordance with the requirements of section 414A of 
the Companies Act 2006 (the "Act"). The purpose of this report is to 
provide shareholders with sufficient information to enable them to 
assess the extent to which the Directors have performed their duty to 
promote the success of the Company in accordance with Section 172 of the 
Act. 
 
   For and on behalf of the Board 
 
   Ben Larkin 
 
   Chairman 
 
   26 March 2021 
 
   Responsibility statement 
 
   In preparing these Financial Statements for the year to 31 December 
2020, the Directors of the Company, being Ben Larkin, Lyn Goleby, Lord 
O'Shaughnessy and Patrick Reeve, confirm that to the best of their 
knowledge: 
 
 
   -- summary financial information contained in this announcement and the full 
      Annual Report and Financial Statements for the year ended 31 December 
      2020 for the Company has been prepared in accordance with United Kingdom 
      Generally Accepted Accounting Practice (UK Accounting Standards and 
      applicable law) and give a true and fair view of the assets, liabilities, 
      financial position and profit or loss of the Company; and 
 
   -- the Chairman's statement and Strategic report include a fair review of 
      the development and performance of the business and the position of the 
      Company, together with a description of the principal risks and 
      uncertainties it faces. 
 
 
   We consider that the Annual Report and Financial Statements, taken as a 
whole, are fair, balanced, and understandable and provide the 
information necessary for shareholders to assess the Company's position, 
performance, business model and strategy. 
 
   A detailed "Statement of Directors' responsibilities" is contained on 
page 35 within the full audited Annual Report and Financial Statements. 
 
   On behalf of the Board, 
 
   Ben Larkin 
 
   Chairman 
 
   26 March 2021 
 
   Income statement 
 
 
 
 
 
                                                            Year ended 31 December     Year ended 31 December 
                                                                     2020                       2019 
                                                           -------------------------  ------------------------- 
                                                           Revenue  Capital   Total   Revenue  Capital   Total 
                                                     Note  GBP'000  GBP'000  GBP'000  GBP'000  GBP'000  GBP'000 
---------------------------------------------------        -------  -------  -------  -------  -------  ------- 
Gains on investments                                    3        -    4,073    4,073        -    3,074    3,074 
Investment income                                       4      692        -      692    1,294        -    1,294 
Investment management fee                               5    (382)  (1,146)  (1,528)    (357)  (1,070)  (1,427) 
Performance incentive fee                               5     (11)     (31)     (42)        -        -        - 
Other expenses                                          6    (282)        -    (282)    (268)        -    (268) 
                                                           -------  -------  -------  -------  -------  ------- 
Profit on ordinary activities before tax                        17    2,896    2,913      669    2,004    2,673 
Tax (charge)/credit on ordinary activities              8        -        -        -     (76)       76        - 
                                                           -------  -------  -------  -------  -------  ------- 
Profit and total comprehensive income attributable 
 to shareholders                                                17    2,896    2,913      593    2,080    2,673 
                                                           -------  -------  -------  -------  -------  ------- 
Basic and diluted return per share (pence)*            10     0.02     3.15     3.17     0.73     2.55     3.28 
---------------------------------------------------  ----  -------  -------  -------  -------  -------  ------- 
 
 
   * adjusted for treasury shares 
 
   The accompanying notes below form an integral part of these Financial 
Statements. 
 
   The total column of this 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. 
 
   Balance sheet 
 
 
 
 
 
                                            31 December 2020  31 December 2019 
                                    Note       GBP'000            GBP'000 
----------------------------------  ----  ------------------  ---------------- 
 
Fixed asset investments               11              58,998            51,406 
 
Current assets 
Current asset investments             13                   -             3,878 
Trade and other receivables           13               1,757               304 
Cash and cash equivalents                             15,645            14,529 
                                          ------------------  ---------------- 
                                                      17,402            18,711 
 
Total assets                                          76,400            70,117 
 
Payables: amounts falling due 
within one year 
Trade and other payables less than 
 one year                             14               (541)             (434) 
                                          ------------------  ---------------- 
 
Total assets less current 
 liabilities                                          75,859            69,683 
                                          ------------------  ---------------- 
 
Equity attributable to equity 
holders 
Called-up share capital               15               1,040               938 
Share premium                                         44,978            36,712 
Capital redemption reserve                                12                12 
Unrealised capital reserve                            18,020            14,702 
Realised capital reserve                              12,886            15,151 
Other distributable reserve                          (1,077)             2,168 
                                          ------------------  ---------------- 
Total equity shareholders' funds                      75,859            69,683 
                                          ------------------  ---------------- 
 
Basic and diluted net asset value 
 per share (pence)*                   16               82.42             83.47 
----------------------------------  ----  ------------------  ---------------- 
 
   * excluding treasury shares 
 
   The accompanying notes below form an integral part of these Financial 
Statements. 
 
   These Financial Statements were approved by the Board of Directors, and 
authorised for issue on 26 March 2021 and were signed on its behalf by 
 
   Ben Larkin 
 
   Chairman 
 
   Company number: 03654040 
 
   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 and 
 total 
 comprehensive 
 income for 
 the year                     -        -           -       4,595   (1,699)             17    2,913 
Transfer of 
 unrealised 
 gains on 
 disposal of 
 investments                  -        -           -     (1,277)     1,277              -        - 
Purchase of 
 shares for 
 treasury                     -        -           -           -         -        (1,189)  (1,189) 
Issue of 
 equity                     102    8,478           -           -         -              -    8,580 
Cost of issue 
 of equity                    -    (212)           -           -         -              -    (212) 
Dividends paid                -        -           -           -   (1,843)        (2,073)  (3,916) 
--------------  ---------------  -------  ----------  ----------  --------  -------------  ------- 
As at 31 
 December 
 2020                     1,040   44,978          12      18,020    12,886        (1,077)   75,859 
--------------  ---------------  -------  ----------  ----------  --------  -------------  ------- 
As at 1 
 January 2019               839   28,406          12      16,234    11,539          6,348   63,378 
Profit and 
 total 
 comprehensive 
 income for 
 the year                     -        -           -       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 GBP11,809,000 (2019: GBP17,319,000) which is 
considered distributable. 
 
   Statement of cash flows 
 
 
 
 
                                             Year ended         Year ended 
                                           31 December 2020   31 December 2019 
                                               GBP'000            GBP'000 
----------------------------------------  -----------------  ----------------- 
Cash flow from operating activities 
Loan stock income received                              583              1,131 
Deposit interest received                                35                 49 
Dividend income received                                191                151 
Investment management fees paid                     (1,475)            (1,435) 
Performance incentive fee paid                            -              (420) 
Other cash payments                                   (283)              (253) 
Corporation tax paid                                      -                  - 
Net cash flow from operating activities               (949)              (777) 
 
Cash flow from investing activities 
Purchase of current asset investments               (1,190)            (2,400) 
Purchase of fixed asset investments                 (5,156)            (5,675) 
Disposal of current asset investments                 3,945                  - 
Disposal of fixed asset investments                   1,201             10,560 
Net cash flow from investing activities             (1,200)              2,485 
                                          -----------------  ----------------- 
 
Cash flow from financing activities 
Issue of share capital                                7,737              7,807 
Cost of issue of shares                                (33)               (30) 
Equity dividends paid*                              (3,251)            (3,132) 
Purchase of own shares (including costs)            (1,188)            (1,013) 
                                          -----------------  ----------------- 
Net cash flow from financing activities               3,265              3,632 
                                          -----------------  ----------------- 
 
Increase in cash and cash equivalents                 1,116              5,340 
Cash and cash equivalents at start of 
 period                                              14,529              9,189 
                                          -----------------  ----------------- 
Cash and cash equivalents at end of 
 period                                              15,645             14,529 
----------------------------------------  -----------------  ----------------- 
 
 
   *The dividends paid shown in the cash flow are different to the 
dividends disclosed in note 9 as a result of the non-cash effect of the 
Dividend Reinvestment Scheme. 
 
   Notes to the Financial Statements 
 
   1. Basis of preparation 
 
   The Financial Statements have been prepared in accordance with 
applicable United Kingdom law and accounting standards, including 
Financial Reporting Standard 102 ("FRS 102"), 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 and further details can be found in 
the Directors' report on pages 29 and 30 of the full Annual Report and 
Financial Statements. 
 
   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") in accordance with FRS 102 sections 11 and 12. The Company 
values investments by following the International Private Equity and 
Venture Capital Valuation ("IPEV") Guidelines as updated in 2018 and 
further detail on the valuation techniques used are outlined in note 2 
below. 
 
   Company information is shown on page 2 of the full Annual Report and 
Financial Statements. 
 
   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, those 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, 
including loan stock, are classified 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 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, revenue 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. 
 
   Current assets and payables 
 
   Receivables (including debtors due after more than one year), payables 
and cash are carried at amortised cost, in accordance with FRS 102. 
Debtors due after more than one year meet the definition of a financing 
transaction held at amortised cost, and interest will be recognised 
through capital over the credit period using the effective interest 
method. There are no financial liabilities other than payables. 
 
   Investment income 
 
   Equity income 
 
   Dividend income is included in revenue when the investment is quoted 
ex-dividend. 
 
   Unquoted loan stock income 
 
   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 fee, performance incentive fee 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, if any, 
      are allocated to the realised capital reserve. 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 
(tax 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 
 
   Called-up share capital 
 
   This reserve accounts for the nominal value of the Company's shares. 
 
   Share premium 
 
   This reserve accounts for the difference between the price paid for the 
Company's shares and the nominal value of those shares, less issue costs 
and transfers to the other distributable reserve. 
 
   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 year 
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 where paid out by capital. 
 
   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 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 smaller companies 
principally based in the UK. 
 
   3. Gains/(losses) on investments 
 
 
 
 
                                             Year ended         Year ended 
                                           31 December 2020   31 December 2019 
                                               GBP'000            GBP'000 
Unrealised gains on fixed asset 
 investments                                          4,595              1,431 
Unrealised gains on current asset 
 investments                                              -                236 
Realised gains on fixed asset 
 investments                                            601              1,407 
Realised losses on current asset 
 investments                                        (1,123)                  - 
                                                      4,073              3,074 
                                          -----------------  ----------------- 
 
 
   4. Investment income 
 
 
 
 
                                             Year ended         Year ended 
                                           31 December 2020   31 December 2019 
                                               GBP'000            GBP'000 
---------------------------------------- 
Loan stock interest and other fixed 
 returns                                                584                977 
Dividend income                                          74                268 
Bank deposit interest                                    34                 49 
                                                        692              1,294 
                                          -----------------  ----------------- 
 
 
   5. Investment management fees 
 
 
 
 
                                             Year ended         Year ended 
                                           31 December 2020   31 December 2019 
                                               GBP'000            GBP'000 
Investment management fee charged to 
 revenue                                                382                357 
Investment management fee charged to 
 capital                                              1,146              1,070 
Performance incentive fee charged to 
 revenue                                                 11                  - 
Performance incentive fee charged to 
 capital                                                 31                  - 
                                          -----------------  ----------------- 
                                                      1,570              1,427 
                                          -----------------  ----------------- 
 
 
   Further details of the Management agreement under which the investment 
management fee and performance incentive fee are paid is given in the 
Strategic report above. 
 
   During the year, services of a total value of GBP1,528,000 (2019: 
GBP1,427,000) were purchased by the Company from Albion Capital Group 
LLP in respect of management fees. There is a performance incentive fee 
of GBP42,000 payable this year (2019: GBPnil). At the financial year end, 
the amount due to Albion Capital Group LLP in respect of these services 
disclosed as accruals was GBP443,000 (2019: GBP347,000). The total 
annual running costs of the Company are capped at an amount equal to 
2.5% of the Company's net assets, with any excess being met by Albion 
Capital Group LLP by way of a reduction in management fees. During the 
year, the management fee was reduced by GBP97,000 as a result of this 
cap (2019: GBP105,000). 
 
   During the year, the Company was not charged by Albion Capital Group LLP 
in respect of Patrick Reeve's services as a Director (2019: GBPnil). 
 
   Albion Capital Group LLP, its partners and staff hold 680,066 Ordinary 
shares in the Company as at 31 December 2020. 
 
   Albion Capital Group LLP is, from time-to-time, eligible to receive 
arrangement fees and monitoring fees from portfolio companies. During 
the year ended 31 December 2020, fees of GBP168,000 attributable to the 
investments of the Company were received by Albion Capital Group LLP 
pursuant to these arrangements (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% 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. 
 
   The SVS Albion OLIM UK Equity Income Fund ("OUEIF") was disposed of in 
October 2020. Prior to the disposal an amount of GBP1,190,000 was 
invested during the year in the OUEIF (2019: GBP2,400,000), and to avoid 
double charging, Albion agreed to reduce its management fee relating to 
the investment in the OUEIF by 0.75% per annum, which represents the 
OUEIF management fee charged by OLIM. This resulted in a further 
reduction of the management fee of GBP21,000 (2019: GBP20,000). Further 
details on the SVS Albion OLIM UK Equity Income Fund disposal can be 
found in the Chairman's statement above. 
 
   6. Other expenses 
 
 
 
 
                                                         Year ended         Year ended 
                                                       31 December 2020   31 December 2019 
                                                           GBP'000            GBP'000 
 
  Directors' fees (including NIC)                                    75                 74 
Auditor's remuneration for statutory audit services 
 (excluding VAT)                                                     34                 31 
Other administrative expenses                                       173                163 
                                                                    282                268 
                                                      -----------------  ----------------- 
 
   7. Directors' fees 
 
   The amounts paid to and on behalf of the Directors during the year are 
as follows: 
 
 
 
 
                        Year ended         Year ended 
                      31 December 2020   31 December 2019 
                          GBP'000            GBP'000 
 
  Directors' fees                   69                 69 
National insurance                   6                  5 
                     -----------------  ----------------- 
                                    75                 74 
                     -----------------  ----------------- 
 
 
   The Company's key management personnel are the non-executive Directors. 
Further information regarding Directors' remuneration can be found in 
the Directors' remuneration report on pages 41 and 42 of the full Annual 
Report and Financial Statements. 
 
   8. Tax on ordinary activities 
 
 
 
 
                                                        Year ended         Year ended 
                                                         31 December 2020   31 December 2019 
                                                         GBP'000            GBP'000 
                                                                        -                  - 
  UK corporation tax charge in respect of current year 
                                                                        -                  - 
                                                        -----------------  ----------------- 
 
 
 
 
 
 
                                                        Year ended         Year ended 
                                                      31 December 2020   31 December 2019 
Factors affecting the tax charge:                         GBP'000            GBP'000 
--------------------------------------------------- 
 
  Profit on ordinary activities before taxation                  2,913              2,673 
                                                     -----------------  ----------------- 
 
Tax charge on profit at the average companies rate 
 of 19 per cent. 
 (2019: 19 per cent.)                                              553                508 
 
Factors affecting the charge: 
Non-taxable gains                                                (774)              (584) 
Income not taxable                                                (14)               (51) 
Excess management expenses carried forward                         235                127 
                                                                     -                  - 
                                                     -----------------  ----------------- 
 
 
   The tax charge for the year shown in the Income statement is lower than 
the average companies rate of corporation tax in the UK of 19 per cent. 
(2019: 19 per cent.). The differences are explained above. 
 
   Notes 
 
   (i)            Venture Capital Trusts are not subject to corporation tax 
on capital gains. 
 
   (ii)           Tax relief on expenses charged to capital has been 
determined by allocating tax relief to expenses by reference to the 
applicable corporation tax rate and allocating the relief between 
revenue and capital in accordance with the SORP 
 
   (iii)          The Company has excess management expenses of 
GBP3,882,000 (2019: GBP2,652,000) that are available for offset against 
future profits. A deferred tax asset of GBP738,000 (2019: GBP451,000) 
has not been recognised in respect of these losses as they will be 
recoverable only to the extent that the Company has sufficient future 
taxable profits. 
 
   9. Dividends 
 
 
 
 
                                                               Year ended         Year ended 
                                                             31 December 2020   31 December 2019 
                                                                 GBP'000            GBP'000 
----------------------------------------------------------  -----------------  ----------------- 
Dividend of 2.25p per Ordinary share paid on 31 May 
 2019                                                                       -              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                                                                   2,077                  - 
Dividend of 1.99p per Ordinary share paid on 30 September 
 2020                                                                   1,843                  - 
Unclaimed dividends                                                       (4)                (5) 
                                                            -----------------  ----------------- 
                                                                        3,916              3,760 
                                                            -----------------  ----------------- 
 
 
   Details of the consideration issued under the Dividend Reinvestment 
Scheme included in the dividends above can be found in note 15. 
 
   In addition to the dividends summarised above, the Board has declared a 
first dividend of 2.06 pence per share for the year ending 31 December 
2021, payable on 28 May 2021 to shareholders on the register on 7 May 
2021. The details of the new dividend policy can be found in the 
Chairman's statement above. The total dividend will be approximately 
GBP2,129,000. 
 
   10. Basic and diluted return per share 
 
 
 
 
                                                                             Year ended 
                                                                            31 December   Year ended 31 December 
                                                                                2020      2019 
                                                          Revenue   Capital     Total     Revenue  Capital   Total 
--------------------------------------------------------  --------  -------  -----------  -------  -------  ------- 
 
Profit attributable to equity shares (GBP'000)                  17    2,896        2,913      593    2,080    2,673 
Weighted average shares in issue (adjusted for treasury 
 shares)                                                            91,755,964                   81,487,820 
Return attributable per equity share (pence)                  0.02     3.15         3.17     0.73     2.55     3.28 
 
 
   The weighted average number of Ordinary shares is calculated after 
adjusting for treasury shares of 11,938,106 (2019: 10,350,156). 
 
   There are no convertible instruments, derivatives or contingent share 
agreements in issue so basic and diluted return per share are the same. 
 
   11. Fixed asset investments 
 
 
 
 
                                            31 December 2020  31 December 2019 
                                                 GBP'000           GBP'000 
------------------------------------------ 
Investments held at fair value through 
profit or loss 
Unquoted equity and preference shares                 44,350            37,372 
Unquoted loan stock                                   14,648            14,012 
Quoted equity                                              -                22 
                                                      58,998            51,406 
                                            ----------------  ---------------- 
 
 
 
 
 
 
                                                      31 December 2020  31 December 2019 
                                                           GBP'000           GBP'000 
---------------------------------------------------- 
Opening valuation                                               51,406            52,663 
Purchases at cost                                                5,577             6,595 
Disposal proceeds                                              (3,181)          (10,519) 
Realised gains                                                     601             1,407 
Movement in loan stock accrued income                                -             (171) 
Unrealised gains                                                 4,595             1,431 
                                                      ----------------  ---------------- 
Closing valuation                                               58,998            51,406 
                                                      ----------------  ---------------- 
 
Movement in loan stock accrued income 
Opening accumulated loan stock accrued income                      113               284 
Movement in loan stock accrued income                                -             (171) 
                                                      ----------------  ---------------- 
Closing accumulated loan stock accrued income                      113               113 
                                                      ----------------  ---------------- 
 
Movement in unrealised gains 
Opening accumulated unrealised gains                            14,447            16,215 
Transfer of previously unrealised gains to realised 
 reserve on disposal of investments                            (1,199)           (3,199) 
Movement in unrealised gains                                     4,595             1,431 
                                                      ----------------  ---------------- 
Closing accumulated unrealised gains                            17,843            14,447 
                                                      ----------------  ---------------- 
 
Historic cost basis 
Opening book cost                                               36,846            36,164 
Purchases at cost                                                5,577             6,595 
Sales at cost                                                  (1,381)           (5,913) 
Closing book cost                                               41,042            36,846 
                                                      ----------------  ---------------- 
 
 
   Purchases and disposals detailed above do not agree to the Statement of 
cash flows due to restructuring of investments, conversion of 
convertible loan stock and settlement debtors and creditors. 
 
   The Company does not hold any assets as the result of the enforcement of 
security during the period, and believes that the carrying values for 
both those valued below cost and past due assets are covered by the 
value of security held for these loan stock investments. 
 
   Unquoted fixed asset investments are valued at fair value in accordance 
with the IPEV guidelines as follows: 
 
 
 
 
                                                    31 December 2020  31 December 2019 
Valuation methodology                                    GBP'000           GBP'000 
-------------------------------------------------- 
Cost and price of recent investment (reviewed for 
 impairment or uplift)                                        21,624            33,479 
Revenue multiple                                              20,499             2,969 
Third party valuation -- discounted cash flow                  9,063             9,104 
Third party valuation - earnings multiple                      2,625             2,723 
Net assets                                                     2,395             2,347 
Discounted offer price                                         2,202                 - 
Earnings multiple                                                590               762 
                                                              58,998            51,384 
                                                    ----------------  ---------------- 
 
 
   When using the cost or price of a recent investment in the valuations, 
the Company looks to re-calibrate this price at each valuation point by 
reviewing progress within the investment, comparing against the initial 
investment thesis, assessing if there are any significant events or 
milestones that would indicate the value of the investment has changed 
and considering whether a market-based methodology (i.e. using multiples 
from comparable public companies) or a discounted cashflow forecast 
would be more appropriate. 
 
   The main inputs into the calibration exercise, and for the valuation 
models using multiples, are revenue, EBITDA and P/E multiples (based on 
the most recent revenue, EBITDA or earnings achieved and equivalent 
corresponding revenue, EBITDA or earnings multiples of comparable 
companies), quality of earnings assessments and comparability difference 
adjustments. Revenue multiples are often used, rather than EBITDA or 
earnings, due to the nature of the Company's investments, being in 
growth and technology companies which are not normally expected to 
achieve profitability or scale for a number of years. Where an 
investment has achieved scale and profitability the Company would 
normally then expect to switch to using an EBITDA or earnings multiple 
methodology. 
 
   In the calibration exercise and in determining the valuation for the 
Company's equity instruments, comparable trading multiples are used. In 
accordance with the Company's policy, appropriate comparable companies 
based on industry, size, developmental stage, revenue generation and 
strategy are determined and a trading multiple for each comparable 
company identified is then calculated. The multiple is calculated by 
dividing the enterprise value of the comparable group by its revenue, 
EBITDA or earnings. The trading multiple is then adjusted for 
considerations such as illiquidity, marketability and other differences, 
advantages and disadvantages between the portfolio company and the 
comparable public companies based on company specific facts and 
circumstances. 
 
   Fair value investments had the following movements between valuation 
methodologies between 31 December 2019 and 31 December 2020: 
 
 
 
 
Change in valuation methodology (2019 to 2020)                Value as at  Explanatory note 
                                                         31 December 2020 
                                                                  GBP'000 
------------------------------------------------------  ----------------- 
 
Cost or price of recent investment to revenue multiple             19,056  Discounted revenue multiple more relevant based on 
                                                                            current trading 
Cost or price of recent investment to discounted offer              2,202  Third party offer accepted and completed after the 
 price                                                                      year end 
Price of recent investment to net assets                              387  Covid-19 impact on portfolio company has lead to 
                                                                           revaluation 
Revenue multiple to net assets                                        174  Covid-19 impact on portfolio company has lead to 
                                                                           revaluation 
Quoted bid price to net assets                                         22  Company delisted and in liquidation 
 
 
   The valuation will be the most appropriate valuation methodology for an 
investment within its market, with regard to the financial health of the 
investment and the IPEV Guidelines. The Directors believe that, within 
these parameters, these are the most relevant methods of valuation which 
would be reasonable as at 31 December 2020. 
 
   FRS 102 and the SORP requires the Company to disclose the inputs to the 
valuation methods applied to its investments measured at fair value 
through profit or loss in a fair value hierarchy. The table below sets 
out fair value hierarchy definitions using FRS102 s.11.27. 
 
 
 
 
Fair value hierarchy  Definition 
--------------------  ---------------------------------------------------- 
Level 1               Unadjusted quoted prices in an active market 
--------------------  ---------------------------------------------------- 
Level 2               Inputs to valuations are from observable sources and 
                       are directly or indirectly derived from prices 
--------------------  ---------------------------------------------------- 
Level 3               Inputs to valuations not based on observable market 
                       data 
--------------------  ---------------------------------------------------- 
 
 
   Quoted investments are valued according to Level 1 valuation methods. 
Unquoted equity, preference shares and loan stock are all valued 
according to Level 3 valuation methods. 
 
   Investments held at fair value through profit or loss (Level 3) had the 
following movements: 
 
 
 
 
                                    31 December 2020  31 December 2019 
                                        GBP'000           GBP'000 
----------------------------------  ----------------  ---------------- 
Opening balance                               51,384            52,532 
Additions                                      5,577             6,595 
Movement from Level 1 to Level 3*                 22                 - 
Disposals                                    (3,181)          (10,513) 
Accrued loan stock interest                        -             (171) 
Realised gains                                   601             1,510 
Unrealised gains                               4,595             1,431 
                                    ----------------  ---------------- 
Closing balance                               58,998            51,384 
                                    ----------------  ---------------- 
 
 
   *This relates to the investment in Mi-Pay Group PLC changing from Level 
1 to Level 3 in the fair value hierarchy, as this is in liquidation, and 
no longer listed. 
 
   FRS 102 requires the Directors to consider the impact of changing one or 
more of the inputs used as part of the valuation process to reasonable 
possible alternative assumptions. 61% of the portfolio of investments, 
consisting of equity and loan stock, is based on recent investment price, 
discounted offer price, net assets and cost, and as such the Board 
believe that changes to reasonable possible alternative input 
assumptions (by adjusting the earnings and revenue multiples) for the 
valuation of the remainder of the portfolio could lead to a significant 
change in the fair value of the portfolio. Therefore, for the remainder 
of the portfolio, the Board has adjusted the inputs for a number of the 
largest portfolio companies (by value) resulting in a total coverage of 
83% of the portfolio of investments. The main inputs considered for each 
type of valuation is as follows: 
 
 
 
 
                                                     Change in 
                                                    fair value 
            Portfolio                       Change      of         Change in NAV 
Valuation   company                 Base      in    investments     (pence per 
technique   sector       Input      Case*   input    (GBP'000)        share) 
----------  -----------  ---------  ------  ------  -----------  ----------------- 
            Software & 
Revenue      other       Revenue 
 multiple    technology   multiple  5.4x      +0.5          690               0.75 
----------  -----------  ---------  ------  ------  -----------  ----------------- 
                                              -0.5        (690)             (0.75) 
   ---------------------------------------  ------  -----------  ----------------- 
            Software & 
Revenue      other       Revenue 
 multiple    technology   multiple  4.5x      +0.5          624               0.68 
----------  -----------  ---------  ------  ------  -----------  ----------------- 
                                              -0.5        (624)             (0.68) 
   ---------------------------------------  ------  -----------  ----------------- 
 
 
   *As detailed in the accounting policies above, the base case is based on 
market comparables, discounted where appropriate for marketability, in 
accordance with the IPEV guidelines. 
 
   The impact of these changes could result in an overall increase in the 
valuation of the equity investments by GBP1,313,000 (3.0%) or a decrease 
in the valuation of equity investments by GBP1,313,000 (3.0%). 
 
   12. Significant interests 
 
   The principal activity of the Company is to select and hold a portfolio 
of investments in unquoted securities. Although the Company, through the 
Manager, will, in some cases, be represented on the board of the 
portfolio company, it will not take a controlling interest or become 
involved in the management. The size and structure of the companies with 
unquoted securities may result in certain holdings in the portfolio 
representing a participating interest without there being any 
partnership, joint venture or management consortium agreement. The 
investment listed below is held as part of an investment portfolio and 
therefore, as permitted by FRS 102 section 9.9B, it is measured at fair 
value through profit and loss and not consolidated as a subsidiary. 
 
   The Company has interests of greater than 20% of the nominal value of 
any class of the allotted shares in the portfolio company as at 31 
December 2020 as described below: 
 
 
 
 
                                                                  % total 
                                           Aggregate              voting 
             Registered                     capital   % class     rights 
             address and                      and       and       held by  Profit/(loss) 
             country of      Principal     reserves    share        the     before tax 
Company      incorporation   activity       GBP'000     type      Company     GBP'000 
-----------  --------------  ------------  ---------  --------  ---------  ------------- 
Albion                       Former owner 
 Investment                   of 
 Properties                   residential              68.2% A 
 Limited     EC1M 5QL, UK     property         (706)  Ordinary      68.2%           n/a* 
 
 
   * The company files filleted accounts which does not disclose this 
information. 
 
   13. Current assets 
 
 
 
 
Current asset investments               31 December 2020  31 December 2019 
                                            GBP'000           GBP'000 
--------------------------------------  ----------------  ---------------- 
SVS Albion OLIM UK Equity Income Fund                  -             3,878 
                                        ----------------  ---------------- 
 
 
   For further details on the disposal of the SVS Albion OLIM UK Equity 
Income Fund, please see the Chairman's statement above. 
 
 
 
 
Trade and other receivables             31 December 2020  31 December 2019 
                                            GBP'000           GBP'000 
--------------------------------------  ----------------  ---------------- 
Prepayments and accrued income                        23                17 
Other receivables                                      3               156 
Deferred consideration under one year                192               131 
Deferred consideration over one year               1,539                 - 
                                        ----------------  ---------------- 
                                                   1,757               304 
                                        ----------------  ---------------- 
 
 
   The deferred consideration over one year relates to the sale of 
G.Network Communications Limited in December 2020. These proceeds are 
receivable in January 2024, and have been discounted to present value at 
the prevailing market rate, including a provision for counterparty risk. 
This constitutes a financing transaction, and has been accounted for 
using the policy disclosed in note 2. 
 
   The Directors consider that the carrying amount of receivables is not 
materially different to their fair value. 
 
   14. Payables: amounts falling due within one year 
 
 
 
 
                                31 December 2020  31 December 2019 
                                    GBP'000           GBP'000 
-----------------------------  -----------------  ---------------- 
Accruals and deferred income                 519               417 
Trade payables                                22                17 
                                             541               434 
                               -----------------  ---------------- 
 
 
   The Directors consider that the carrying amount of payables is not 
materially different to their fair value. 
 
   15. Called-up share capital 
 
 
 
 
Allotted, called-up and fully paid shares:                   GBP'000 
---------------------------------------------------------- 
93,828,305 Ordinary shares of 1 penny each at 31 December 
 2019                                                            938 
10,146,199 Ordinary shares of 1 penny each issued 
 during the year                                                 102 
103,974,504 Ordinary shares of 1 penny each at 31 
 December 2020                                                 1,040 
10,350,156 Ordinary shares of 1 penny each held in 
 treasury at 31 December 2019                                  (104) 
1,587,950 Ordinary shares of 1 penny each purchased 
 during the year to be held in treasury                         (16) 
11,938,106 Ordinary shares of 1 penny each held in 
 treasury at 31 December 2020                                  (120) 
-----------------------------------------------------------  ------- 
Voting rights of 92,036,398 Ordinary shares of 1 penny 
 each at 31 December 2020                                        920 
-----------------------------------------------------------  ------- 
 
 
   The Company purchased 1,587,950 Ordinary shares (2019: 1,278,000) at a 
cost of GBP1,189,000 including stamp duty (2019: GBP1,013,000) to be 
held in treasury during the year to 31 December 2020. Total share 
buy-backs in 2020 represents 1.5% (2019: 1.4%) of called-up share 
capital as at 31 December 2020. 
 
   The Company holds a total of 11,938,106 shares (2019: 10,350,156) in 
treasury representing 11.5% (2019: 11.0%) of the issued Ordinary share 
capital at 31 December 2020. 
 
   Under the terms of the Dividend Reinvestment Scheme, the following new 
Ordinary shares of nominal value 1 penny each were allotted during the 
year: 
 
 
 
 
                               Aggregate 
                      Number    nominal 
                        of     value of      Issue price        Net 
                      shares    shares       (pence per      invested   Opening market price on allotment date (pence per 
  Date of allotment  allotted  (GBP'000)       share)        (GBP'000)                        share) 
------------------- 
        29 May 2020   467,957          5              75.41        336                                              72.00 
  30 September 2020   401,094          4              77.31        294                                              73.50 
                     --------  ---------                     --------- 
                      869,051          9                           630 
 
 
   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 year: 
 
 
 
 
                       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 
 
 
   16. Basic and diluted net asset value per share 
 
 
 
 
                           31 December 2020 (pence  31 December 2019 (pence 
                                 per share)                per share) 
------------------------ 
Basic and diluted net 
 asset value per Ordinary 
 share                                       82.42                     83.47 
 
 
   The basic and diluted net asset values per share at the year end are 
calculated in accordance with the Articles of Association and are based 
upon total shares in issue (adjusting for treasury shares) of 92,036,398 
Ordinary shares as at 31 December 2020 (2019: 83,478,149). 
 
   17. Capital and financial instruments risk management 
 
   The Company's capital comprises Ordinary shares as described in note 15. 
The Company is permitted to buy back its own shares for cancellation or 
treasury purposes, and this is described in more detail on page 29 of 
the Directors' report of the full Annual Report and Financial 
Statements. 
 
   The Company's financial instruments comprise equity and loan stock 
investments in unquoted companies, deferred receipts on disposal of 
fixed asset investments, cash balances and receivables and payables 
which arise from its operations. The main purpose of these financial 
instruments is to generate cashflow and revenue and capital appreciation 
for the Company's operations. The Company has no gearing or other 
financial liabilities apart from short term payables. The Company does 
not use any derivatives for the management of its Balance sheet. 
 
   The principal risks arising from the Company's operations are: 
 
 
   -- investment (or market) risk (which comprises investment price and cash 
      flow interest rate risk); 
 
   -- credit risk; and 
 
   -- liquidity risk. 
 
 
   The Board regularly reviews and agrees policies for managing each of 
these risks. There have been no changes in the nature of the risks that 
the Company has faced during the past year, and apart from where noted 
below, there have been no changes in the objectives, policies or 
processes for managing risks during the past year. The key risks are 
summarised below. 
 
   Investment risk 
 
   As a Venture Capital Trust, it is the Company's specific nature to 
evaluate and control the investment risk of its portfolio in unquoted 
companies, details of which are shown on pages 21 to 23 of the full 
Annual Report and Financial Statements. Investment risk is the exposure 
of the Company to the revaluation and devaluation of investments. The 
main driver of investment risk is the operational and financial 
performance of the portfolio company and the dynamics of market quoted 
comparators. The Manager receives management accounts from portfolio 
companies and members of the investment management team often sit on the 
boards of unquoted portfolio companies; this enables the close 
identification, monitoring and management of investment risk. 
 
   The Manager and the Board formally review investment risk (which 
includes market price risk), both at the time of initial investment and 
at quarterly Board meetings. 
 
   The Board monitors the prices at which sales of investments are made to 
ensure that profits to the Company are maximised, and that valuations of 
investments retained within the portfolio appear sufficiently prudent 
and realistic compared to prices being achieved in the market for sales 
of unquoted investments. 
 
   The maximum investment risk as at the Balance sheet date is the value of 
the fixed asset investment portfolio which is GBP58,998,000 (2019: 
GBP55,284,000). Fixed asset investments form 78% of net asset value as 
at 31 December 2020 (2019: 79%). 
 
   More details regarding the classification of fixed asset investments are 
shown in note 11. 
 
   Investment price risk 
 
   Investment price risk is the risk that the fair value of future 
investment cash flows will fluctuate due to factors specific to an 
investment instrument or to a market in similar instruments. The 
management of risk within the venture capital portfolio is addressed 
through careful investment selection, by diversification across 
different industry segments, by maintaining a wide spread of holdings in 
terms of financing stage and by limitation of the size of individual 
holdings. The Directors monitor the Manager's compliance with the 
investment policy, review and agree policies for managing this risk and 
monitor the overall level of risk on the investment portfolio on a 
regular basis. 
 
   Valuations are based on the most appropriate valuation methodology for 
an investment within its market, with regard to the financial health of 
the investment and the IPEV Guidelines. Details of the industries in 
which investments have been made are contained in the Portfolio of 
investments section on pages 21 to 23 of the full Annual Report and 
Financial Statements and in the Strategic report. 
 
   As required under FRS 102 the Board is required to illustrate by way of 
a sensitivity analysis the extent to which the assets are exposed to 
market risk. The Board considers that the value of the fixed asset 
investment portfolio is sensitive to a change of 10% based on the 
current economic climate. The impact of a 10% change has been selected 
as this is considered reasonable given the current level of volatility 
observed. When considering the appropriate level of sensitivity to be 
applied, the Board has considered both historic performance and future 
expectations. 
 
   The sensitivity of a 10% increase or decrease in the valuation of the 
fixed asset investment portfolio (keeping all other variables constant) 
would increase or decrease the net asset value and return for the year 
by GBP5,899,800. Further sensitivity analysis on fixed asset investments 
is included in note 11. 
 
   Interest rate risk 
 
   It is the Company's policy to accept a degree of interest rate risk on 
its financial assets through the effect of interest rate changes. On the 
basis of the Company's analysis, it is estimated that a rise of a 
percentage point in all interest rates would have increased total return 
before tax for the year by approximately GBP151,000 (2019: GBP121,000). 
Furthermore, it was considered that a material fall in interest rates 
below current levels during the year would have been unlikely. 
 
   The weighted average effective interest rate applied to the Company's 
fixed rate assets during the year was approximately 4.5% (2019: 7.0%). 
The weighted average period to maturity for the fixed rate assets is 
approximately 5.2 years (2019: 6.0 years). 
 
   The Company's financial assets and liabilities, all denominated in 
pounds sterling, consist of the following: 
 
 
 
 
                                        31 December 2020                            31 December 2019 
                                     Floating rate  Non-interest bearing   Total                          Floating rate  Non-interest bearing   Total 
                 Fixed rate GBP'000     GBP'000            GBP'000         GBP'000    Fixed rate GBP'000     GBP'000            GBP'000         GBP'000 
------------- 
Unquoted 
 equity                           -              -                44,350    44,350                     -              -                37,372    37,372 
Quoted equity                     -              -                     -         -                     -              -                    22        22 
Unquoted loan 
 stock                       13,752            185                   711    14,648                12,913            193                   906    14,012 
Current asset 
 investments                      -              -                     -         -                     -              -                 3,878     3,878 
Receivables*                      -              -                 1,734     1,734                     -              -                   289       289 
Current 
 liabilities                      -              -                 (541)     (541)                     -              -                 (434)     (434) 
Cash                              -         15,645                     -    15,645                     -         14,529                     -    14,529 
               --------------------  -------------  --------------------  --------  --------------------  -------------  --------------------  -------- 
Total                        13,752         15,830                46,254    75,836                12,913         14,722                42,033    69,668 
               --------------------  -------------  --------------------  --------  --------------------  -------------  --------------------  -------- 
 
 
   *The receivables do not reconcile to the Balance sheet as prepayments 
are not included in the above table. 
 
   Credit risk 
 
   Credit risk is the risk that the counterparty to a financial instrument 
will fail to discharge an obligation or commitment that it has entered 
into with the Company. The Company is exposed to credit risk through its 
receivables, investment in unquoted loan stock, and through the holding 
of cash on deposit with banks. 
 
   The Manager evaluates credit risk on loan stock and other similar 
instruments prior to investment, and as part of its ongoing monitoring 
of investments. In doing this, it takes into account the extent and 
quality of any security held. For loan stock investments made prior to 6 
April 2018, which account for 85% of loan stock by value, typically loan 
stock instruments have a first fixed charge or a fixed and floating 
charge over the assets of the portfolio company in order to mitigate the 
gross credit risk. 
 
   The Manager receives management accounts from portfolio companies, and 
members of the investment management team often sit on the boards of 
unquoted portfolio companies; this enables the close identification, 
monitoring and management of investment-specific credit risk. 
 
   The Manager and the Board formally review credit risk (including 
receivables) and other risks, both at the time of initial investment and 
at quarterly Board meetings. 
 
   The Company's total gross credit risk at 31 December 2020 was limited to 
GBP14,648,000 (2019: GBP14,012,000) of unquoted loan stock instruments, 
GBP15,645,000 (2019: GBP14,529,000) of cash deposits with banks and 
GBP1,757,000 (2019: GBP304,000) of other receivables. 
 
   At the Balance sheet date, the cash held by the Company was held with 
Lloyds Bank plc, Scottish Widows Bank plc (part of Lloyds Banking Group), 
Barclays Bank plc and National Westminster Bank plc. Credit risk on cash 
transactions was mitigated by transacting with counterparties that are 
regulated entities subject to prudential supervision, with high credit 
ratings assigned by international credit-rating agencies. 
 
   The Company has an informal policy of limiting counterparty banking 
exposure to a maximum of 20% of net asset value for any one 
counterparty. 
 
   The credit profile of unquoted loan stock is described under liquidity 
risk shown below. 
 
   Liquidity risk 
 
   Liquid assets are held as cash on current account, cash on deposit or 
short term money market account. Under the terms of its Articles, the 
Company has the ability to borrow up to 10% of its adjusted capital and 
reserves of the latest published audited Balance sheet, which amounts to 
GBP7,373,000 as at 31 December 2020 (2019: GBP6,760,000). 
 
   The Company had no committed borrowing facilities as at 31 December 2020 
(2019: nil) and the Company had cash balances of GBP15,645,000 (2019: 
GBP14,529,000). The main cash outflows are for new investments, buy-back 
of shares and dividend payments, which are within the control of the 
Company. The Manager formally reviews the cash requirements of the 
Company on a monthly basis, and the Board on a quarterly basis, as part 
of its review of management accounts and forecasts. All of the Company's 
financial liabilities are short term in nature and total GBP541,000 
(2019: GBP434,000). 
 
   The carrying value of loan stock investments, analysed by expected 
maturity dates is as follows: 
 
 
 
 
                                31 December 2020                                         31 December 2019 
Redemption   Fully performing  Valued below cost  Past due   Total    Fully performing  Valued below cost  Past due   Total 
date              GBP'000           GBP'000        GBP'000   GBP'000       GBP'000           GBP'000        GBP'000   GBP'000 
----------- 
Less than 
 one year               2,160                736     1,738     4,634             1,515                613     1,618     3,746 
1-2 years               1,887                 38        94     2,019               608                113         -       721 
2-3 years                 175                136         -       311             1,658                112         -     1,770 
3-5 years               1,948                  -        78     2,026             1,825                211         -     2,036 
5 + years               5,555                  -       103     5,658             5,623                  -       116     5,739 
             ----------------  -----------------  --------  --------  ----------------  -----------------  --------  -------- 
Total                  11,725                910     2,013    14,648            11,229              1,049     1,734    14,012 
             ----------------  -----------------  --------  --------  ----------------  -----------------  --------  -------- 
 
 
   Loan stock can be past due as a result of interest or capital not being 
paid in accordance with contractual terms. 
 
   The cost of loan stock investments valued below cost is GBP1,036,000 
(2019: GBP1,682,000). 
 
   In view of the availability of adequate cash balances and the repayment 
profile of loan stock investments, the Board considers that the Company 
is subject to low liquidity risk. 
 
   Fair values of financial assets and financial liabilities 
 
   All the Company's financial assets and liabilities as at 31 December 
2020 are stated at fair value as determined by the Directors, with the 
exception of receivables (including debtors due after more than one 
year), payables and cash which are carried at amortised cost, in 
accordance with FRS 102. There are no financial liabilities other than 
payables. The Company's financial liabilities are all non-interest 
bearing. It is the Directors' opinion that the book value of the 
financial liabilities is not materially different to the fair value and 
all are payable within one year. 
 
   18. Contingencies and commitments 
 
   As at 31 December 2020, the Company had no financial commitments (2019: 
GBPnil). 
 
   There were no contingent liabilities or guarantees given by the Company 
as at 31 December 2020 (2019: GBPnil). 
 
   19. Post balance sheet events 
 
   The following are the post balance sheet events since 31 December 2020: 
 
 
 
   -- Sale of OmPrompt Holdings Limited for proceeds of GBP2,202,000; 
 
   -- Investment of GBP1,209,000 in a new portfolio company, Threadneedle 
      Software Holding Limited (trading as Solidatus); 
 
   -- Investment of GBP577,000 in an existing portfolio company, Healios 
      Limited; 
 
   -- Sale of SBD Automotive Limited for proceeds of GBP458,000; and 
 
   -- Investment of GBP54,000 in an existing portfolio company, ePatient 
      Limited (trading as Raremark). 
 
 
   The following new Ordinary shares of nominal value 1 penny each were 
allotted under the Albion VCTs Prospectus Top Up Offers 2020/21 after 31 
December 2020: 
 
 
 
 
                        Aggregate    Issue 
            Number of    nominal     price          Net        Opening market 
   Date of    shares    value of     (pence    consideration      price on 
 allotment   allotted    shares       per        received      allotment date 
                         GBP'000     share)       GBP'000     (pence per share) 
----------  ----------  ---------  ----------  -------------  ----------------- 
        26 
  February 
      2021   1,932,052         19       83.30          1,585              78.00 
        26 
  February 
      2021     515,665          5       83.80            424              78.00 
        26 
  February 
      2021   8,866,225         89       84.20          7,279              78.00 
            11,313,942        113                      9,288 
            ----------  ---------              ------------- 
 
   20. Related party transactions 
 
   Other than transactions with the Manager as disclosed in note 5, and the 
Directors' remuneration disclosed in the Directors' remuneration report 
on pages 41 and 42 of the full Annual Report and Financial Statements, 
there are no other related party transactions or balances requiring 
disclosure. 
 
   21. Other Information 
 
   The information set out in this announcement does not constitute the 
Company's statutory accounts within the terms of section 434 of the 
Companies Act 2006 for the years ended 31 December 2020 and 31 December 
2019, and is derived from the statutory accounts for those financial 
years, which have been, or in the case of the accounts for the year 
ended 31 December 2020, which will be, delivered to the Registrar of 
Companies. The Auditor reported on those accounts; the reports were 
unqualified and did not contain a statement under s498 (2) or (3) of the 
Companies Act 2006. 
 
   22. Publication 
 
   The full audited Annual Report and Financial Statements are 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 
https://www.globenewswire.com/Tracker?data=gBG9pBmzZ_QbHUxqOjc7KMfg-0uFKdByGHfal3TW7lK9tmQxeXDnhwzvmnhXBWq1_b1Z-yTgCXHllLF75AtFZKyEfLHjsTwdxrbl8I1Ifbabf7Gi7gxA_oByZo1OF_W- 
www.albion.capital/funds/AADV, where the Report can be accessed as a PDF 
document via a link in the 'Financial Reports and Circulars' section. 
 
 
 
 
   Attachment 
 
 
   -- Pie Charts 
      https://ml-eu.globenewswire.com/Resource/Download/7bf149f7-852c-467b-ae83-1179653f457f 
 
 
 
 
 
 
 

(END) Dow Jones Newswires

March 26, 2021 13:04 ET (17:04 GMT)

Copyright (c) 2021 Dow Jones & Company, Inc.

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