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Share Name Share Symbol Market Type Share ISIN Share Description
Albion Enterprise Vct Plc LSE:AAEV London Ordinary Share GB00B1G3LR35 ORD 1P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.0% 104.50 103.00 106.00 104.50 104.50 104.50 0.00 00:00:00
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Equity Investment Instruments 1.2 0.4 0.6 171.3 75

Albion EnterpriseVCT Albion Enterprise Vct Plc: Half-yearly Financial Report

20/11/2020 9:53am

UK Regulatory (RNS & others)


 
TIDMAAEV 
 
 
   Albion Enterprise VCT PLC 
 
   LEI Code 213800OVSRDHRJBMO720 
 
   As required by the UK Listing Authority's Disclosure Guidance and 
Transparency Rule 4.2, Albion Enterprise VCT PLC today makes public its 
information relating to the Half-yearly Financial Report (which is 
unaudited) for the six months to 30 September 2020. This announcement 
was approved by the Board of Directors on 20 November 2020. 
 
   The full Half-yearly Financial Report (which is unaudited) for the 
period to 30 September 2020, will shortly be sent to shareholders. 
Copies of the full Half-yearly Financial Report will be shown via the 
Albion Capital Group LLP website by clicking 
https://www.globenewswire.com/Tracker?data=ieFX9xgPL7oC_8xOsRmacIY1UFIZm6vBOaieebEnTtGaHMiFKmKvmFYL03RKDTGf0VgmQlNyVcOsvL6Mk0Wh1jGatqSidtbOUyRZJmFJP5ficjUfByAQa8bZDcR9DIAesISZTp3CHGQJYvCVqKtUguikMA5vpTjVZmChj1j_uKk= 
www.albion.capital/funds/AAEV/30Sep20.pdf . 
 
   Investment policy 
 
   Albion Enterprise VCT PLC (the "Company") is a Venture Capital Trust and 
the investment objective of the Company is to provide investors with a 
regular source of income, combined with the prospect of longer term 
capital growth. 
 
   Investment policy 
 
   The Company will invest in a broad portfolio of higher growth businesses 
across a variety of sectors of the UK economy including higher risk 
technology companies. 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 both in terms of sector and 
stage of maturity of company. 
 
   VCT qualifying and non-VCT qualifying investments 
 
   Application of the investment policy is designed to ensure that the 
Company continues to qualify and is approved as a VCT by HM Revenue and 
Customs ("VCT regulations"). The maximum amount invested in any one 
company is limited to any HMRC annual investment limits. It is intended 
that normally at least 80 per cent. of the Company's funds will be 
invested in VCT qualifying investments. The VCT regulations also have an 
impact on the type of investments and qualifying sectors in which the 
Company can make investment. 
 
   Funds held prior to investing in VCT qualifying assets or for liquidity 
purposes will be held as cash on deposit, invested in floating rate 
notes or similar instruments with banks or other financial institutions 
with high credit ratings or invested in liquid open-ended equity funds 
providing income and capital equity exposure (where it is considered 
economic to do so). Investment in such open-ended equity funds will not 
exceed 10 per cent. of the Company's assets at the time of investment. 
 
   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 
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. 
 
   Gearing 
 
   The Company's maximum exposure in relation to gearing is restricted to 
10 per cent. of its adjusted share capital and reserves. 
 
   Financial calendar 
 
 
 
 
Record date for second dividend    5 February 2021 
 
Payment date for second dividend  26 February 2021 
 
Financial year end                        31 March 
 
 
   Financial summary 
 
 
 
 
                                              Unaudited six          Audited 
                Unaudited six months ended     months ended         year ended 
                     30 September 2020       30 September 2019    31 March 2020 
                    (pence per share)       (pence per share)   (pence per share) 
--------------  --------------------------  ------------------  ----------------- 
 
Opening net 
 asset value                        106.54              117.76             117.76 
Capital 
 return/(loss)                        5.85                4.52             (6.31) 
Revenue 
 return/(loss)                      (0.20)                0.31               0.61 
                --------------------------  ------------------  ----------------- 
 
Total 
 return/(loss)                        5.65                4.83             (5.70) 
Dividends paid                      (2.70)              (3.00)             (6.00) 
Impact from 
 share capital 
 movements                            0.06              (0.17)               0.48 
                --------------------------  ------------------  ----------------- 
 
Net asset 
 value                              109.55              119.42             106.54 
--------------  --------------------------  ------------------  ----------------- 
 
 
 
 
 
 
Total shareholder value to 30 September 2020:           (Pence per share) 
 
Dividends paid during the year ended: 
                                         31 March 2008               0.70 
                                         31 March 2009               1.65 
                                         31 March 2010               2.00 
                                         31 March 2011               3.00 
                                         31 March 2012               3.00 
                                         31 March 2013               3.50 
                                         31 March 2014               5.00 
                                         31 March 2015               5.00 
                                         31 March 2016               5.00 
                                         31 March 2017               5.00 
                                         31 March 2018               5.00 
                                         31 March 2019               6.00 
                                         31 March 2020               6.00 
 Dividends paid in the six months to 30 September 2020               2.70 
                                                        ----------------- 
Total dividends paid to 30 September 2020                           53.55 
Net asset value as at 30 September 2020                            109.55 
                                                        ----------------- 
Total shareholder value to 30 September 2020                       163.10 
------------------------------------------------------  ----------------- 
 
 
   In addition to the dividends summarised above, the Board has declared a 
second dividend for the year ending 31 March 2021, of 2.74 pence per 
share to be paid on 26 February 2021 to shareholders on the register on 
5 February 2021. 
 
   Notes 
 
   The dividend of 0.70 pence per share paid during the period ended 31 
March 2008 and first dividend of 0.40 pence per share paid during the 
year ended 31 March 2009 were paid to shareholders who subscribed in the 
2006/2007 offer only. 
 
   Interim management report 
 
   Introduction 
 
   Despite the impact of the coronavirus (Covid-19) on the economy and the 
way we live, we are pleased to report a total return of 5.65 pence per 
share for the six months to 30 September 2020 (30 September 2019: 4.83 
pence per share). Since the Company's year end many of our portfolio 
companies have demonstrated resilient growth, providing products and 
services that are both innovative and necessary, even in these uncertain 
times. During this period a number of our portfolio companies have 
raised further investment at uplifted valuations. 
 
   Valuations and results 
 
   The net effect of the Board's portfolio revaluation at 30 September 2020 
has been an overall gain of GBP4.5 million. The key movements in the 
period include: a GBP2.5 million uplift in the valuation of Quantexa 
following a GBP50 million externally led fundraising; a GBP1.0 million 
uplift in Proveca as a result of strong sales across Europe; and GBP0.7 
million uplift in Aridhia Informatics, a healthcare analytics company 
which is trading well. 
 
   Inevitably some of our portfolio companies are still impacted by 
Covid-19, which has resulted in reduced valuations. One such company is 
Mirada Medical, a medical imaging software company which uses deep 
learning to help clinicians plan radiation treatment. Its value reduced 
by GBP1.9 million due to the current difficulties selling to 
overstretched hospitals. 
 
   Similarly, our investment in the SVS Albion OLIM UK Equity Income Fund 
has been negatively impacted by the Covid-19 driven falls of UK quoted 
equities. Given the negative outlook for the UK Equity Income sector, 
the Board took the decision to dispose of this investment post period 
end with the intention of redeploying the funds into innovative growth 
companies where the Company is seeing resilient growth. This has 
resulted in a disappointing GBP0.9 million loss on cost, after 
accounting for dividends received and reduction in management fees over 
the life of the investment. An unrealised loss was reported in the prior 
year, consequently we are now reporting a small uplift reflecting a 
modest market recovery in the current period. 
 
   Shortly after the period end, our holding in Clear Review was sold, 
realising a profit of GBP0.3 million and generating a return of 2.1 
times cost. During our short involvement, the Company scaled rapidly, 
becoming a leading provider of employee performance management and 
engagement software. 
 
   The net asset value of the Company increased from GBP72.5 million or 
106.54 pence per share on 31 March 2020, to GBP74.3 million or 109.55 
pence per share on 30 September 2020. 
 
   Dividend 
 
   A first dividend of 2.70 pence per share was paid on 28 August 2020. The 
Board has declared a second dividend of 2.74 pence per share payable on 
26 February 2021, to shareholders on the register on 5 February 2021. 
This is in line with the new variable dividend policy, outlined in the 
Annual Report and Financial Statements, of targeting an annual dividend 
yield of around 5%. The Company continues to offer a Dividend 
Reinvestment Scheme whereby shareholders can elect to receive dividends 
in the form of new shares. 
 
   Investment activity 
 
   GBP3.7 million was invested in new and existing companies since 31 
March. Investments in new companies included: 
 
 
   -- GBP564,000 in The Voucher Market Limited (trading as WeGift), a cloud 
      platform that enables corporates to purchase digital gift cards and to 
      distribute them to employees and customers; and 
 
   -- GBP234,000 in TransFICC Limited, a provider of a connectivity solution, 
      connecting financial institutions with trading venues via a single API. 
 
 
   Follow on investments included GBP1.4m in Quantexa, to aid enterprises 
detecting financial crime, resulting in a significant valuation uplift; 
GBP348,000 in Phrasee, which is an AI platform that optimises digital 
marketing campaigns; and GBP294,000 in Oxsensis, a manufacturer of 
industrial sensors for use in ultra-high temperature environments. 
 
   Investment portfolio by sector 
 
   The pie chart at the end of this announcement outlines the different 
sectors in which the Company's assets, at carrying value, are currently 
held. 
 
   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, including the maintenance of sufficient resources for 
investment in new and existing portfolio companies and the continued 
payment of dividends to shareholders. It is the Board's intention for 
such buy-backs to be in the region of a 5% discount to net asset value 
so far as market conditions and liquidity permit. 
 
   Transactions with the Manager 
 
   Details of the transactions that took place with the Manager during the 
period can be found in note 5. Details of related party transactions can 
be found in note 11. 
 
   Risks & uncertainties 
 
   The wide reaching implications arising from the Covid-19 crisis is the 
key risk facing the Company, including its impact on the UK and Global 
economies. There are also the potential implications of the UK's 
departure from the European Union which may adversely affect our 
underlying portfolio companies. The Manager is continually assessing the 
exposure to such risks for each portfolio company, and where possible 
appropriate actions are being implemented. 
 
   Other principal risks and uncertainties remain unchanged and are 
detailed in note 13 below. The impact of the coronavirus (Covid-19) 
pandemic has created heightened uncertainty but has not changed the 
nature of these risks. The Board considers that the processes for 
mitigating these risks remain appropriate. 
 
   Albion VCTs Top Up Offers 
 
   Details of the final allotment of shares under the Albion VCTs 
Prospectus Top Up Offers 2019/20 can be found in note 8. The Offer was 
fully subscribed and the Board elected not to exercise the over 
allotment facility, having raised GBP6 million. 
 
   The proceeds are being used to nurture our existing portfolio companies 
as they grow, but also to support existing portfolio companies during 
the current pandemic. The proceeds raised also enable us to take 
advantage of new and exciting investment opportunities as they arise. 
 
   Board composition 
 
   Lord St John of Bletso will retire from the board on 30 November 2020. 
Anthony has acted as Senior Independent Director and Chairman of our 
Audit Committee. We shall miss his contributions to the Board 
deliberations and wish him well in the future. 
 
   Outlook 
 
   Whilst Covid-19 continues to have a far-reaching impact on society and 
the economy, I am encouraged by the resilience of the portfolio. It is 
the Board's priority to support the existing portfolio companies and to 
make new investments in businesses that can innovate and grow despite 
the healthcare crisis. It has been an encouraging six months, but I am 
mindful that the effects of the pandemic have not yet fully played out. 
Despite this, the Company and its portfolio are well positioned to 
continue to generate long term value to shareholders. 
 
   Maxwell Packe 
 
   Chairman 
 
   20 November 2020 
 
   Responsibility statement 
 
   The Directors, Maxwell Packe, Lord St John of Bletso, The Dowager Lady 
Balfour of Burleigh, Christopher Burrows and Patrick Reeve, are 
responsible for preparing the Half-yearly Financial Report. In preparing 
these condensed Financial Statements for the period to 30 September 2020 
we, the Directors of the Company, confirm that to the best of our 
knowledge: 
 
 
   1. the condensed set of Financial Statements, which has been prepared in 
      accordance with Financial Reporting Standard 104 "Interim Financial 
      Reporting", give a true and fair view of the assets, liabilities, 
      financial position and profit and loss of the Company as required by DTR 
      4.2.4R; 
 
   2. the Interim management report includes a fair review of the information 
      required by DTR 4.2.7R (indication of important events during the first 
      six months and description of principal risks and uncertainties for the 
      remaining six months of the year); and 
 
   3. the Interim management report includes a fair review of the information 
      required by DTR 4.2.8R (disclosure of related parties' transactions and 
      changes therein). 
 
 
   This Half-yearly Financial Report has not been audited or reviewed by 
the Auditor. 
 
   For and on behalf of the Board 
 
   Maxwell Packe 
 
   Chairman 
 
   20 November 2020 
 
   Portfolio of investments 
 
 
 
 
                                       As at 30 September 2020 
                                         Cumulative movement                    Change in 
Fixed asset          % voting    Cost          in value          Value    value for the period(*) 
investments           rights    GBP'000        GBP'000          GBP'000           GBP'000 
-------------------  --------                                 ---------  ------------------------ 
Egress Software 
 Technologies 
 Limited                  9.9     3,365                5,936      9,301                         - 
Quantexa Limited          3.5     2,108                4,738      6,846                     2,541 
Proveca Limited           9.6     1,512                3,262      4,774                     1,010 
Radnor House School 
 (TopCo) Limited          9.4     1,729                1,213      2,942                       119 
Regenerco Renewable 
 Energy Limited          12.5     1,261                  875      2,136                       154 
The Street by 
 Street Solar 
 Programme Limited        8.6       891                  751      1,642                        33 
G.Network 
 Communications 
 Limited                  2.7       273                1,206      1,479                         - 
Alto Prodotto Wind 
 Limited                 11.1       868                  591      1,459                        21 
Oviva AG                  3.4     1,021                  418      1,439                       167 
Greenenerco Limited      28.6       797                  572      1,369                        35 
Phrasee Limited           3.6       822                  286      1,108                       286 
The Evewell (Harley 
 Street) Limited          7.3     1,054                    -      1,054                       183 
Convertr Media 
 Limited                  6.2       992                   29      1,021                         5 
Oxsensis Limited          4.3     1,011                  (8)      1,003                       227 
OmPrompt Holdings 
 Limited                 10.7       994                 (32)        962                         - 
MPP Global 
 Solutions Limited        2.9       950                    -        950                         - 
Aridhia Informatics 
 Limited                  6.4     1,244                (332)        912                       747 
Mirada Medical 
 Limited                 14.2     1,487                (613)        874                   (1,852) 
Black Swan Data 
 Limited                  2.5     1,051                (241)        810                     (241) 
Elliptic 
 Enterprises 
 Limited                  1.0       792                    -        792                         - 
Concirrus Limited         1.5       755                    -        755                         - 
Panaseer Limited          2.3       547                  204        751                         - 
Cantab Research 
 Limited (T/A 
 Speechmatics)            1.7       696                    -        696                         - 
MyMeds&Me Limited         7.6       720                 (35)        685                         - 
Beddlestead Limited       8.1       966                (294)        672                      (40) 
uMotif Limited            2.6       578                   61        639                       171 
DySIS Medical 
 Limited                  5.0     2,742              (2,136)        606                        32 
Koru Kids Limited         2.5       541                   57        598                         - 
The Voucher Market 
 Limited (T/A 
 WeGift)                  1.5       564                    -        564                         - 
SBD Automotive 
 Limited                  1.9       280                  278        558                        75 
Clear Review 
 Limited                  2.1       256                  272        528                       272 
Cisiv Limited             9.0       799                (285)        514                       130 
InCrowd Sports 
 Limited                  3.9       499                 (11)        488                       (7) 
Locum's Nest 
 Limited                  4.8       500                 (31)        469                        49 
ePatient Network 
 Limited (T/A 
 Raremark)                3.4       384                   74        458                        90 
Credit Kudos 
 Limited                  2.1       454                    -        454                         - 
Avora Limited             2.4       430                    -        430                         - 
Abcodia Limited           5.6       953                (616)        337                         - 
memsstar Limited          8.8       201                  136        337                        50 
Limitless 
 Technology 
 Limited                  2.1       320                    -        320                         - 
Sandcroft Avenue 
 Limited (T/A 
 Hussle)                  6.8     1,370              (1,068)        302                       173 
Arecor Limited            1.5       290                    -        290                         - 
Healios Limited           0.9       270                    -        270                         - 
AVESI Limited             5.5       179                   82        261                         6 
TransFICC Limited         1.6       234                    -        234                         - 
Innovation Broking 
 Group Limited            8.4        84                  148        232                        41 
Zift Channel 
 Solutions Inc.           2.0     1,053                (852)        201                     (127) 
Imandra Inc.              1.3       121                    -        121                         - 
MHS 1 Limited             1.2        83                 (10)         73                         - 
Forward Clinical 
 Limited (T/A 
 Pando)                   1.8       219                (147)         72                       (1) 
Symetrica Limited         0.2        55                 (11)         44                        12 
Mi-Pay Group PLC          5.8        39                    -         39                         - 
                                                                         ------------------------ 
Total fixed asset 
 investments                     41,404               14,467     55,871                     4,361 
-------------------  --------  --------  -------------------  ---------  ------------------------ 
 
 
 
 
 
 
                      As at 30 September 2020 
Current                 Cumulative movement                    Change in 
asset           Cost          in value          Value    value for the period(*) 
investments    GBP'000        GBP'000          GBP'000           GBP'000 
------------                                 ---------  ------------------------ 
SVS Albion 
 OLIM UK 
 Equity 
 Income 
 Fund            4,990              (1,392)      3,602                       101 
------------  --------  -------------------  ---------  ------------------------ 
Total 
 current 
 asset 
 investments     4,990              (1,392)      3,602                       101 
------------  --------  -------------------  ---------  ------------------------ 
 
 
   * as adjusted for additions and disposals during the period; including 
realised gains/(losses). 
 
 
 
 
                                                                   Opening                Total    Gain on 
                                                                   carrying  Disposal    realised   opening 
Investment realisations in the period to 30 September     Cost      value     proceeds     gain      value 
 2020                                                    GBP'000   GBP'000    GBP'000    GBP'000    GBP'000 
------------------------------------------------------  --------  ---------  ---------  ---------  -------- 
Loan stock repayments and other: 
------------------------------------------------------ 
Greenenerco Limited                                           27         38         38         11         - 
Alto Prodotto Wind Limited                                    25         38         38         13         - 
memsstar Limited                                              19         19         19          -         - 
Escrow adjustments**                                           -          -         37         37        37 
Total fixed asset realisations                                71         95        132         61        37 
------------------------------------------------------  --------  ---------  ---------  ---------  -------- 
 
 
   ** Fair value movements on deferred consideration from previously 
disposed investments. 
 
 
 
 
Total change in value of investments for the period        4,361 
Movement in loan stock accrued interest                        2 
                                                           ----- 
Unrealised gains on fixed asset investments                4,363 
Realised gains on fixed asset investments                     37 
Unrealised gains on current asset investments                101 
Total gains on investments as per Income statement         4,501 
-----------------------------------------------------      ----- 
 
 
   Condensed income statement 
 
 
 
 
                                                                             Unaudited                        Unaudited                         Audited 
                                                                          six months ended                 six months ended                    year ended 
                                                                         30 September 2020                30 September 2019                  31 March 2020 
----------------------------------------------------------  ----  -------------------------------  -------------------------------  ------------------------------- 
                                                                  Revenue  Capital                 Revenue  Capital                 Revenue  Capital 
                                                            Note  GBP'000  GBP'000  Total GBP'000  GBP'000  GBP'000  Total GBP'000  GBP'000  GBP'000  Total GBP'000 
                                                            ----  -------  -------  -------------  -------  -------  -------------  -------  -------  ------------- 
 
Gains/(losses) on investments                                  3        -    4,501          4,501        -    3,860          3,860        -  (2,884)        (2,884) 
 
Investment income                                              4      266        -            266      659        -            659    1,157        -          1,157 
 
Investment management fee                                      5    (171)    (513)          (684)    (220)    (661)          (881)    (396)  (1,189)        (1,585) 
 
Performance incentive fee                                      5        -        -              -    (105)    (314)          (419)        -        -              - 
 
Other expenses                                                      (231)        -          (231)    (138)        -          (138)    (363)        -          (363) 
                                                                  -------  -------  -------------  -------  -------  -------------  -------  -------  ------------- 
 
Return/(loss) on ordinary activities before taxation                (136)    3,988          3,852      196    2,885          3,081      398  (4,073)        (3,675) 
 
Tax on ordinary activities                                              -        -              -        -        -              -        -        -              - 
                                                                  -------  -------  -------------  -------  -------  -------------  -------  -------  ------------- 
 
Return/(loss) and total comprehensive income attributable 
 to shareholders                                                    (136)    3,988          3,852      196    2,885          3,081      398  (4,073)        (3,675) 
                                                                  -------  -------  -------------  -------  -------  -------------  -------  -------  ------------- 
 
Basic and diluted return/(loss) per share (pence)*             7   (0.20)     5.85           5.65     0.31     4.52           4.83     0.61   (6.31)         (5.70) 
----------------------------------------------------------  ----  -------  -------  -------------  -------  -------  -------------  -------  -------  ------------- 
 
 
   * adjusted for treasury shares 
 
   Comparative figures have been extracted from the unaudited Half-yearly 
Financial Report for the six months ended 30 September 2019 and the 
audited statutory accounts for the year ended 31 March 2020. 
 
   The accompanying notes below form an integral part of this Half-yearly 
Financial Report. 
 
   The total column of this Condensed income statement represents the 
profit and loss account of the Company. The supplementary revenue and 
capital columns have been prepared in accordance with The Association of 
Investment Companies' Statement of Recommended Practice. 
 
   Condensed balance sheet 
 
 
 
 
                            Unaudited           Unaudited          Audited 
                         30 September 2020   30 September 2019   31 March 2020 
                  Note        GBP'000             GBP'000           GBP'000 
----------------  ----  ------------------  ------------------  -------------- 
 
Fixed asset 
 investments                        55,871              62,616          47,859 
 
Current assets 
Current asset 
 investments                         3,602               4,948           3,501 
Trade and other 
 receivables 
 less than one 
 year                                  178               2,681             182 
Cash and cash 
 equivalents                        15,542               6,947          21,510 
                        ------------------  ------------------  -------------- 
                                    19,322              14,576          25,193 
 
Total assets                        75,193              77,192          73,052 
 
Payables: 
amounts falling 
due within one 
year 
Trade and other 
 payables less 
 than one year                       (913)               (988)           (499) 
                        ------------------  ------------------  -------------- 
Total assets 
 less current 
 liabilities                        74,280              76,204          72,553 
                        ------------------  ------------------  -------------- 
 
Equity 
attributable to 
equity holders 
Called up share 
 capital             8                 775                 720             770 
Share premium                       44,679              38,285          44,183 
Capital 
 redemption 
 reserve                               104                 104             104 
Unrealised 
 capital 
 reserve                            13,075              21,789           8,636 
Realised capital 
 reserve                            13,601               7,857          14,052 
Other 
 distributable 
 reserve                             2,046               7,449           4,808 
                        ------------------  ------------------  -------------- 
 
Total equity 
 shareholders' 
 funds                              74,280              76,204          72,553 
                        ------------------  ------------------  -------------- 
 
Basic and 
 diluted net 
 asset value per 
 share (pence)*                     109.55              119.42          106.54 
----------------  ----  ------------------  ------------------  -------------- 
 
 
   * excluding treasury shares 
 
   Comparative figures have been extracted from the unaudited Half-yearly 
Financial Report for the six months ended 30 September 2019 and the 
audited statutory accounts for the year ended 31 March 2020. 
 
   The accompanying notes below form an integral part of this Half-yearly 
Financial Report. 
 
   These Financial Statements were approved by the Board of Directors, and 
authorised for issue on 20 November 2020 and were signed on its behalf 
by 
 
   Maxwell Packe 
 
   Chairman 
 
   Company number: 05990732 
 
   Condensed statement of changes in equity 
 
 
 
 
                                                       Called up                                          Unrealised  Realised 
                                                         share     Share                                    capital    capital   Other distributable 
                                                        capital    premium    Capital redemption reserve    reserve    reserve*        reserve*        Total 
                                                        GBP'000    GBP'000             GBP'000              GBP'000    GBP'000         GBP'000         GBP'000 
-----------------------------------------------------  ---------  --------  ----------------------------  ----------  ---------  -------------------  -------- 
As at 1 April 2020                                           770    44,183                           104       8,636     14,052                4,808    72,553 
Return/(loss) and total comprehensive income for the 
 period                                                        -         -                             -       4,464      (476)                (136)     3,852 
Transfer of previously unrealised gains on disposal 
 of investments                                                -         -                             -        (25)         25                    -         - 
Issue of equity                                                5       502                             -           -          -                    -       507 
Cost of issue of equity                                        -       (6)                             -           -          -                    -       (6) 
Purchase of own shares for treasury                            -         -                             -           -          -                (790)     (790) 
Dividends paid                                                 -         -                             -           -          -              (1,836)   (1,836) 
As at 30 September 2020                                      775    44,679                           104      13,075     13,601                2,046    74,280 
-----------------------------------------------------  ---------  --------  ----------------------------  ----------  ---------  -------------------  -------- 
 
As at 1 April 2019                                           650    30,255                           104      18,672      8,089                9,618    67,388 
Return/(loss) and total comprehensive income for the 
 period                                                        -         -                             -       3,599      (714)                  196     3,081 
Transfer of previously unrealised gains on disposal 
 of investments                                                -         -                             -       (482)        482                    -         - 
Issue of equity                                               70     8,229                             -           -          -                    -     8,299 
Cost of issue of equity                                        -     (199)                             -           -          -                    -     (199) 
Purchase of own shares for treasury                            -         -                             -           -          -                (454)     (454) 
Dividends paid                                                 -         -                             -           -          -              (1,911)   (1,911) 
As at 30 September 2019                                      720    38,285                           104      21,789      7,857                7,449    76,204 
-----------------------------------------------------  ---------  --------  ----------------------------  ----------  ---------  -------------------  -------- 
 
As at 1 April 2019                                           650    30,255                           104      18,672      8,089                9,618    67,388 
 
Return/(loss) and total comprehensive income for the 
 year                                                          -         -                             -     (5,996)      1,923                  398   (3,675) 
Transfer of previously unrealised gains on disposal 
 of investments                                                -         -                             -     (4,040)      4,040                    -         - 
Issue of equity                                              120    14,270                             -           -          -                    -    14,390 
Cost of issue of equity                                        -     (342)                             -           -          -                    -     (342) 
Purchase of own shares for treasury                            -         -                             -           -          -              (1,252)   (1,252) 
Dividends paid                                                 -         -                             -           -          -              (3,956)   (3,956) 
As at 31 March 2020                                          770    44,183                           104       8,636     14,052                4,808    72,553 
-----------------------------------------------------  ---------  --------  ----------------------------  ----------  ---------  -------------------  -------- 
 
 
   * These reserves amount to GBP15,647,000 (30 September 2019: 
GBP15,306,000; 31 March 2020: GBP18,860,000) which is considered 
distributable. 
 
   Condensed statement of cash flows 
 
 
 
 
                                   Unaudited           Unaudited          Audited 
                                six months ended    six months ended     year ended 
                                30 September 2020   30 September 2019   31 March 2020 
                                     GBP'000             GBP'000           GBP'000 
-----------------------------  ------------------  ------------------  -------------- 
Cash flow from operating 
activities 
Investment income received                    211                 735           1,001 
Dividend income received                       42                 106             310 
Deposit interest received                      16                  27              71 
Investment management fee 
 paid                                       (710)               (832)         (1,648) 
Performance incentive fee 
 paid                                           -             (1,332)         (1,332) 
Other cash payments                         (268)               (160)           (307) 
UK corporation tax paid                         -                   -               - 
                               ------------------  ------------------  -------------- 
Net cash flow from operating 
 activities                                 (709)             (1,456)         (1,905) 
 
 
Cash flow from investing 
activities 
Purchase of current asset 
 investments                                    -             (1,190)         (1,194) 
Purchase of fixed asset 
 investments                              (3,745)             (2,978)         (5,340) 
Disposal of fixed asset 
 investments                                  139               2,340          16,656 
Net cash flow from investing 
 activities                               (3,606)             (1,828)          10,122 
 
Cash flow from financing 
activities 
Issue of share capital                        205               7,807          13,432 
Cost of issue of equity                      (17)                 (2)            (17) 
Dividends paid                            (1,535)             (1,603)         (3,311) 
Purchase of own shares 
 (including costs)                          (306)               (412)         (1,252) 
Net cash flow from financing 
 activities                               (1,653)               5,790           8,852 
 
(Decrease)/increase in cash 
 and cash equivalents                     (5,968)               2,506          17,069 
Cash and cash equivalents at 
 start of the period                       21,510               4,441           4,441 
                               ------------------  ------------------  -------------- 
Cash and cash equivalents at 
 end of the period                         15,542               6,947          21,510 
-----------------------------  ------------------  ------------------  -------------- 
 
 
   Notes to the condensed Financial Statements 
 
   1.         Accounting convention 
 
   The condensed Financial Statements have been prepared in accordance with 
applicable United Kingdom law and accounting standards, including 
Financial Reporting Standard 102 ("FRS 102"), Financial Reporting 
Standard 104 -- Interim Financial Reporting ("FRS 104"), and with the 
Statement of Recommended Practice "Financial Statements of Investment 
Trust Companies and Venture Capital Trusts" ("SORP") issued by The 
Association of Investment Companies ("AIC"). The Financial Statements 
have been prepared on a going concern basis. 
 
   The preparation of the Financial Statements requires management to make 
judgements and estimates that affect the application of policies and 
reported amounts of assets, liabilities, income and expenses. The most 
critical estimates and judgements relate to the determination of 
carrying value of investments at fair value through profit and loss 
("FVTPL"). The Company values investments by following the International 
Private Equity and Venture Capital Valuation ("IPEV") Guidelines and 
further detail on the valuation techniques used are outlined in note 2 
below. 
 
   This Half-yearly Financial Report has not been audited, nor has it been 
reviewed by the auditor pursuant to the FRC's guidance on Review of 
interim financial information. 
 
   Company information can be found on page 2 of the full Half-yearly 
Financial Report. 
 
   2.         Accounting policies 
 
   Fixed and current asset investments 
 
   The Company's business is investing in financial assets with a view to 
profiting from their total return in the form of income and capital 
growth. This portfolio of financial assets is managed and its 
performance evaluated on a fair value basis, in accordance with a 
documented investment policy, and information about the portfolio is 
provided internally on that basis to the Board. 
 
   In accordance with the requirements of FRS 102, 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, including liquid open-ended 
      equity funds, are valued at their bid prices at the end of the accounting 
      period or otherwise at fair value based on published price quotations. 
 
   -- Unquoted investments, where there is not an active market, are valued 
      using an appropriate valuation technique in accordance with the IPEV 
      Guidelines. Indicators of fair value are derived using established 
      methodologies including earnings multiples, the level of third party 
      offers received, cost or price of recent investment rounds, net assets 
      and industry valuation benchmarks. Where the Company has an investment in 
      an early stage enterprise, the price of a recent investment is often the 
      most appropriate approach to determining fair value. 
 
   -- In situations where cost or price of recent investment is used, 
      consideration is given to the circumstances of the portfolio company 
      since that date in determining fair value. This includes consideration of 
      whether there is any evidence of deterioration or strong definable 
      evidence of an increase in value. In the absence of these indicators, the 
      investment in question is valued at the amount reported at the previous 
      reporting date. Examples of events or changes that could indicate a 
      diminution include: 
 
          -- the performance and/or prospects of the underlying business are 
             significantly below the expectations on which the investment was 
             based; 
 
          -- a significant adverse change either in the portfolio company's 
             business or in the technological, market, economic, legal or 
             regulatory environment in which the business operates; or 
 
          -- market conditions have deteriorated, which may be indicated by a 
             fall in the share prices of quoted businesses operating in the 
             same or related sectors. 
 
 
   Investments are recognised as financial assets on legal completion of 
the investment contract and are de-recognised on legal completion of the 
sale of an investment. 
 
   Dividend income is not recognised as part of the fair value movement of 
an investment, but is recognised separately as investment income through 
the other distributable reserve when a share becomes ex-dividend. 
 
   Other current assets and payables 
 
   Receivables, payables and cash are carried at amortised cost, in 
accordance with FRS 102. There are no financial liabilities other than 
payables. 
 
   Investment income 
 
   Equity income 
 
   Dividend income is included in revenue when the investment is quoted 
ex-dividend. 
 
   Unquoted loan stock 
 
   Fixed returns on non-equity shares and debt securities are recognised 
when the Company's right to receive payment and expected 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 other expenses 
 
   All expenses have been accounted for on an accruals basis. Expenses are 
charged through the other distributable reserve except the following 
which are charged through the realised capital reserve: 
 
 
   -- 75 per cent. of management fees and performance incentive fees are 
      allocated to the capital account to the extent that these relate to an 
      enhancement in the value of investments. This is in line with the Board's 
      expectation that over the long term 75 per cent. of the Company's 
      investment returns will be in the form of capital gains; and 
 
   -- expenses which are incidental to the purchase or disposal of an 
      investment are charged through the realised capital reserve. 
 
   Taxation 
 
   Taxation is applied on a current basis in accordance with FRS 102. 
Current tax is tax payable (refundable) in respect of the taxable profit 
(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 
 
   Share premium 
 
   This reserve accounts for the difference between the price paid for 
shares and the nominal value of the shares, less issue costs. 
 
   Capital redemption reserve 
 
   This reserve accounts for amounts by which the issued share capital is 
diminished through the repurchase and cancellation of the Company's own 
shares. 
 
   Unrealised capital reserve 
 
   Increases and decreases in the valuation of investments held at the 
period end against cost are included in this reserve. 
 
   Realised capital reserve 
 
   The following are disclosed in this reserve: 
 
   --gains and losses compared to cost on the realisation of investments, 
or permanent diminutions in value; 
 
   --expenses, together with the related taxation effect, charged in 
accordance with the above policies; and 
 
   --dividends paid to equity holders. 
 
   Other distributable reserve 
 
   The special reserve, treasury share reserve and the revenue reserve were 
combined in 2013 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 buyback of shares and 
other non-capital realised movements. 
 
   Dividends 
 
   Dividends by the Company are accounted for in the period in which the 
dividend is paid or approved at the Annual General Meeting. 
 
   Segmental reporting 
 
   The Directors are of the opinion that the Company is engaged in a single 
operating segment of business, being investment in equity and debt. The 
Company invests in smaller companies principally based in the UK. 
 
   3.        Gains/(losses) on investments 
 
 
 
 
                            Unaudited           Unaudited          Audited 
                         six months ended    six months ended     year ended 
                         30 September 2020   30 September 2019   31 March 2020 
                              GBP'000             GBP'000           GBP'000 
---------------------- 
Unrealised 
 gains/(losses) on 
 fixed asset 
 investments                         4,363               3,484         (4,661) 
Unrealised 
 gains/(losses) on 
 current asset 
 investments                           101                 115         (1,335) 
Realised gains on 
 fixed asset 
 investments                            37                 261           3,112 
                        ------------------  ------------------  -------------- 
                                     4,501               3,860         (2,884) 
                        ------------------  ------------------  -------------- 
 
 
   4.        Investment income 
 
 
 
 
                            Unaudited           Unaudited          Audited 
                         six months ended    six months ended     year ended 
                         30 September 2020   30 September 2019   31 March 2020 
                              GBP'000             GBP'000           GBP'000 
---------------------- 
Interest from loans to 
 portfolio companies                   209                 526             776 
Dividends                               42                 106             310 
Bank deposit interest                   15                  27              71 
                                       266                 659           1,157 
                        ------------------  ------------------  -------------- 
 
 
   5.        Investment management fee and performance incentive fee 
 
 
 
 
                            Unaudited           Unaudited          Audited 
                         six months ended    six months ended     year ended 
                         30 September 2020   30 September 2019   31 March 2020 
                              GBP'000             GBP'000           GBP'000 
---------------------- 
Investment management 
 fee charged to 
 revenue                               171                 220             396 
Investment management 
 fee charged to 
 capital                               513                 661           1,189 
Performance incentive 
 fee charged to 
 revenue                                 -                 105               - 
Performance incentive 
 fee charged to 
 capital                                 -                 314               - 
                        ------------------  ------------------  -------------- 
                                       684               1,300           1,585 
                        ------------------  ------------------  -------------- 
 
 
   Further details of the Management agreement under which the investment 
management fee and performance incentive fee are paid is given in the 
Strategic report on page 14 of the Annual Report and Financial 
Statements for the year ended 31 March 2020. 
 
   During the period, services of a total value of GBP757,000 (30 September 
2019: GBP881,000; 31 March 2020: GBP1,659,000) were purchased by the 
Company from Albion Capital Group LLP; this includes GBP684,000 (30 
September 2019: GBP881,000; 31 March 2020: GBP1,585,000) of management 
fee and GBP73,000 (30 September 2019: GBPnil; 31 March 2020: GBP74,000) 
of administration fee. At the financial period end, the amount due to 
Albion Capital Group LLP in respect of these services disclosed within 
payables was GBP359,000 (30 September 2019: GBP460,000; 31 March 2020: 
GBP384,000). For the period to 30 September 2020, no performance 
incentive fee has been accrued (30 September 2019: GBP419,000; 31 March 
2020: GBPnil). 
 
   During the period, the Company was not charged by Albion Capital Group 
LLP in respect of Patrick Reeve's services as a Director (30 September 
2019: GBPnil; 31 March 2020: GBPnil). 
 
   Albion Capital Group LLP, its partners and staff (including Patrick 
Reeve) hold a total of 468,349 shares in the Company as at 30 September 
2020. 
 
   Albion Capital Group LLP is, from time to time, eligible to receive 
arrangement fees and monitoring fees from portfolio companies. During 
the period to 30 September 2020, fees of GBP89,000 attributable to the 
investments of the Company were received pursuant to these arrangements 
(30 September 2019: GBP103,000; 31 March 2020: GBP186,000). 
 
   The Company entered into an offer agreement relating to the Offers which 
were open in the period with the Company's investment manager Albion 
Capital Group LLP, pursuant to which Albion Capital receives a fee of 
2.5 per cent. of the gross proceeds of the Offers, and out of which 
Albion Capital will pay the costs of the Offers. 
 
   As part of the Company's management of surplus liquid funds, there was a 
current asset investment held during this period; SVS Albion OLIM UK 
Equity Income Fund ("OUEIF"). To avoid double charging, Albion Capital 
agreed to reduce its management fee relating to the investment in the 
OUEIF by 0.75 per cent., which represents the OUEIF management fee 
charged by OLIM. This resulted in a reduction of the management fee of 
GBP13,900 (30 September 2019: GBP16,100; 31 March 2020: GBP32,000). 
 
   6.       Dividends 
 
 
 
 
                            Unaudited           Unaudited          Audited 
                         six months ended    six months ended     year ended 
                         30 September 2020   30 September 2019   31 March 2020 
                              GBP'000             GBP'000           GBP'000 
---------------------- 
Dividend of 3.00p per 
 share paid on 30 
 August 2019                             -               1,911           1,911 
Dividend of 3.00p per 
 share paid on 28 
 February 2020                           -                   -           2,045 
Dividend of 2.70p per 
 share paid on 28 
 August 2020                         1,836                   -               - 
                                     1,836               1,911           3,956 
                        ------------------  ------------------  -------------- 
 
 
   In addition to the dividends summarised above, the Board has declared a 
second dividend for the year ending 31 March 2021 of 2.74 pence per 
share which will be paid on 26 February 2021 to shareholders on the 
register on 5 February 2021. This is expected to amount to approximately 
GBP1,858,000. 
 
   7.          Basic and diluted return/(loss) per share 
 
 
 
 
                                                                  Unaudited                Unaudited         Audited 
                                                               six months ended         six months ended      year ended 
                                                              30 September 2020        30 September 2019      31 March 2020 
                                                           Revenue  Capital  Total  Revenue  Capital  Total  Revenue  Capital   Total 
---------------------------------------------------------  -------  -------  -----  -------  -------  -----  -------  -------  ------- 
 
Return/(loss) attributable to equity shares (GBP'000)        (136)    3,988  3,852      196    2,885  3,081      398  (4,073)  (3,675) 
Weighted average shares in issue (adjusting for treasury 
 shares)                                                         68,156,133               63,802,980                64,506,507 
Return/(loss) attributable per Ordinary share (pence) 
 (basic and diluted)                                        (0.20)     5.85   5.65     0.31     4.52   4.83     0.61   (6.31)   (5.70) 
 
 
   The weighted average number of shares is calculated after adjusting for 
treasury shares of 9,717,736 (30 September 2019: 8,231,443; 31 March 
2020: 8,945,314). 
 
   There are no convertible instruments, derivatives or contingent share 
agreements in issue for the Company, therefore no dilution affecting the 
return per share. The basic return per share is therefore the same as 
the diluted return per share. 
 
   8.          Called up share capital 
 
 
 
 
Allotted, called up and fully paid shares of 1 penny          Unaudited 30        Unaudited 30     Audited 
 each                                                       September 2020      September 2019   31 March 2020 
------------------------------------------------------ 
Number of shares                                                77,523,553          72,041,984      77,044,547 
Nominal value of allotted shares (GBP'000)                             775                 720             770 
Voting rights (number of shares net of treasury 
 shares)                                                        67,805,817          63,810,541      68,099,233 
 
 
 
   In the six months to 30 September 2020, the Company purchased 772,422 
shares (30 September 2019: 410,000; 31 March 2020: 1,123,871) to be held 
in treasury at a nominal value of GBP7,724 and at a cost of GBP790,000 
(30 September 2019: GBP454,000; 31 March 2020: GBP1,252,000), 
representing 1.1% of the shares in issue (excluding treasury shares) as 
at 30 September 2020. 
 
   The Company holds a total of 9,717,736 shares (30 September 2019: 
8,231,443; 31 March 2020: 8,945,314) in treasury representing 12.5% of 
the shares in issue as at 30 September 2020. 
 
   Under the terms of the Dividend Reinvestment Scheme Circular (dated 26 
November 2009), the following new Ordinary shares of nominal value 1 
penny each were allotted during the period to 30 September 2020: 
 
 
 
 
                        Aggregate    Issue 
             Number of  nominal      price                  Opening market 
    Date of   shares    value of     (pence       Net          price on 
  allotment  allotted   shares        per       invested    allotment date 
                          GBP'000    share)     GBP'000    (pence per share) 
-----------  ---------  ---------  ----------  ----------  ----------------- 
  28 August 
       2020    286,480          3      103.84         296              98.00 
 
 
 
   Under the terms of the Albion VCTs Prospectus Top Up Offers 2019/20, the 
following new Ordinary shares of nominal value 1 penny each were 
allotted during the period to 30 September 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) 
----------  ---------  ---------  ----------  -------------  ----------------- 
  30 April 
      2020     90,192          1      108.20             96              95.00 
  30 April 
      2020    102,334          1      109.30            109              95.00 
              192,526          2                        205 
            ---------  ---------              ------------- 
 
 
   9.          Commitments and contingencies 
 
   As at 30 September 2020, the Company had no financial commitments in 
respect of investments (30 September 2019: GBPnil; 31 March 2020: 
GBP139,000). 
 
   There were no contingencies or guarantees of the Company as at 30 
September 2020 (30 September 2019: GBPnil; 31 March 2020: GBPnil). 
 
   10.      Post balance sheet events 
 
   The following are the post balance sheet events since 30 September 2020: 
 
 
   -- Our holding in SVS Albion OLIM UK Equity Income Fund was exited with 
      total proceeds (including dividends and management fees saved) of GBP4.11 
      million on cost of GBP4.99 million; 
 
   -- Proceeds of GBP528,000 received from the sale of Clear Review Limited on 
      cost of GBP256,000; 
 
   -- Investment of GBP371,000 in a new portfolio company, Seldon Technologies 
      Limited, a software company that enables enterprises to deploy Machine 
      Learning models in production; 
 
   -- Investment of GBP151,000 in an existing portfolio company, Limitless 
      Technology Limited, a provider of a customer service platform powered by 
      the crowd and Machine Learning technology; 
 
   -- Investment of GBP134,000 in a new portfolio company, uMedeor Limited 
      (trading as uMed), a middleware technology platform that enables life 
      science organisations to conduct medical research programmes; and 
 
   -- Investment of GBP110,000 in an existing portfolio company, Arecor Limited, 
      which develops biopharmaceuticals through the application of a 
      formulation technology platform. 
 
   11.      Related party transactions 
 
   Other than transactions with the Manager as described in note 5, there 
are no other related party transactions. 
 
   12.      Going concern 
 
   The Board has conducted a detailed assessment of the Company's ability 
to meet its liabilities as they fall due. Cash flow forecasts are 
updated and discussed quarterly at Board level and have been stress 
tested to allow for the forecasted impact of Coronavirus (Covid-19). The 
Board have revisited and updated their assessment of liquidity risk and 
concluded that it remains unchanged since the last Annual Report and 
Financial Statements. Further details can be found on page 67 of those 
accounts. 
 
   The portfolio of investments is diversified in terms of sector and the 
major cash outflows of the Company (namely investments, dividends and 
share buy-backs) are within the Company's control. Accordingly, after 
making diligent enquiries, the Directors have a reasonable expectation 
that the Company has adequate cash and liquid resources to continue in 
operational existence for the foreseeable future. For this reason, the 
Directors have adopted the going concern basis in preparing this 
Half-yearly Financial Report and this is in accordance with the Guidance 
on Risk Management, Internal Control and Related Financial and Business 
Reporting issued by the Financial Reporting Council. 
 
   13.       Risks and Uncertainties 
 
   In addition to the risks and uncertainties outlined in the Interim 
management report, the Board confirms that the following major risks and 
uncertainties facing the Company have not materially changed from those 
identified in the Annual Report and Financial Statements for the year 
ended 31 March 2020. The impact of the Coronavirus (Covid-19) pandemic 
has created heightened uncertainty but has not changed the nature of 
these risks. The Board considers that the processes for mitigating these 
risks remain appropriate. 
 
   1.     Investment, performance and valuation risk 
 
   The risk of investment in poor quality businesses, which could reduce 
the capital and income returns to shareholders and could negatively 
impact on the Company's current and future valuations. By nature, 
smaller unquoted businesses, such as those that qualify for venture 
capital trust purposes, are more volatile than larger, long established 
businesses. Investments in open-ended equity funds result in exposure to 
market risk through movements in price per unit. The Company's 
investment valuation methodology is reliant on the accuracy and 
completeness of information that is issued by portfolio companies. In 
particular, the Directors may not be aware of or take into account 
certain events or circumstances which occur after the information issued 
by such companies is reported. 
 
   To reduce this risk, the Board places reliance upon the skills and 
expertise of the Manager and its track record over many years of making 
successful investments in this segment of the market. In addition, the 
Manager operates a formal and structured investment appraisal and review 
process, which includes an Investment Committee, comprising investment 
professionals from the Manager and at least one external investment 
professional. The Manager also invites and takes account of comments 
from non-executive Directors of the Company on matters discussed at the 
Investment Committee meetings. Investments are actively and regularly 
monitored by the Manager (investment managers normally sit on portfolio 
company boards), including the level of diversification in the portfolio, 
and the Board receives detailed reports on each investment as part of 
the Manager's report at quarterly board meetings. The Board and Manager 
regularly reviews the deployment of cash resources into equity markets, 
the extent of exposure and performance of the exposure. 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. 
 
   2.     VCT approval risk 
 
   The Company must comply with section 274 of the Income Tax Act 2007 
which enables its investors to take advantage of tax relief on their 
investment and on future returns. Breach of any of the rules enabling 
the Company to hold VCT status could result in the loss of that status. 
 
   To reduce this risk, the Board has appointed the Manager, which has a 
team with significant experience in venture capital trust management, 
used to operating within the requirements of the venture capital trust 
legislation. In addition, to provide further formal reassurance, the 
Board has appointed Philip Hare & Associates LLP as its taxation adviser, 
who report quarterly to the Board to independently confirm compliance 
with the venture capital trust legislation, to highlight areas of risk 
and to inform on changes in legislation. Each investment in a new 
portfolio company is also pre-cleared with our professional advisers or 
H.M. Revenue & Customs. The Company monitors closely the extent of 
qualifying holdings and addresses this as required. 
 
   3.     Regulatory and compliance risk 
 
   The Company is listed on The London Stock Exchange and is required to 
comply with the rules of the UK Listing Authority, as well as with the 
Companies Act, Accounting Standards and other legislation. Failure to 
comply with these regulations could result in a delisting of the 
Company's shares, or other penalties under the Companies Act or from 
financial reporting oversight bodies. 
 
   Board members and the Manager have experience of operating at senior 
levels within or advising quoted companies. In addition, the Board and 
the Manager receive regular updates on new regulation from its auditor, 
lawyers and other professional bodies. The Company is subject to 
compliance checks through the Manager's compliance officer, and any 
issues arising from compliance or regulation are reported to its own 
Board on a monthly basis. These controls are also reviewed as part of 
the quarterly Board meetings, and also as part of the review work 
undertaken by the Manager's compliance officer. The report on controls 
is also evaluated by the internal auditors. 
 
   4.     Operational and internal control risk 
 
   The Company relies on a number of third parties, in particular the 
Manager, for the provision of investment management and administrative 
functions. Failures in key systems and controls within the Manager's 
business could put assets of the Company at risk or result in reduced or 
inaccurate information being passed to the Board or to shareholders. 
 
   The Company and its operations are subject to a series of rigorous 
internal controls and review procedures exercised throughout the year, 
and receives reports from the Manager on internal controls and risk 
management, including on matters relating to cyber security. 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 
(UK) Limited was appointed as Depositary to oversee the custody and cash 
arrangements and provide other AIFMD duties. The Board reviews the 
quarterly reports prepared by Ocorian (UK) Limited to ensure that Albion 
Capital is adhering to its policies and procedures as required by the 
AIFMD. In addition, the Board regularly reviews the performance of its 
key service providers, particularly the Manager, to ensure they continue 
to have the necessary expertise and resources to deliver the Company's 
investment objective and policy. The Manager and other service providers 
have also demonstrated to the Board that there is no undue reliance 
placed upon any one individual. 
 
 
 
   5.     Economic, political and social risk 
 
   Changes in economic conditions, including, for example, interest rates, 
rates of inflation, industry conditions, competition, political and 
diplomatic events and other factors could substantially and adversely 
affect the Company's prospects in a number of ways. This also includes 
risks of social upheaval, including from infection and population 
re-distribution, as well as economic risk challenges as a result of 
healthcare pandemics/infection. The current risk to the Company, and the 
wider population and economy, is the coronavirus (Covid-19) pandemic.. 
 
   The Company invests in a diversified portfolio of companies across a 
number of industry sectors and in addition often invests a mixture of 
instruments in portfolio companies and has a policy of minimising any 
external bank borrowings within portfolio companies. At any given time, 
the Company has sufficient cash resources to meet its operating 
requirements, including share buy-backs and follow on investments. In 
common with most commercial operations, exogenous risks over which the 
Company has no control are always a risk and the Company does what it 
can to address these risks where possible, not least as the nature of 
the investments the Company makes are long term. With regards to 
coronavirus (Covid-19), the Manager is having ongoing discussions with 
all portfolio companies, in order to ascertain where support is most 
needed. Cash comprises a significant proportion of net assets, following 
a strong year of exits and the most recent Top Up, which can be used in 
part to help mitigate any immediate cashflow problems for these 
portfolio companies. The portfolio is structured as an all-weather 
portfolio with c.50 companies which are diversified as discussed above. 
Exposure is small to at-risk sectors that include leisure, hospitality, 
retail and travel. 
 
   6.     Market value of Ordinary shares 
 
   The market value of Ordinary shares can fluctuate. The market value of 
an Ordinary share, as well as being affected by its net asset value and 
prospective net asset value, also takes into account its dividend yield 
and prevailing interest rates. As such, the market value of an Ordinary 
share may vary considerably from its underlying net asset value. The 
market prices of shares in quoted investment companies can, therefore, 
be at a discount or premium to the net asset value at different times, 
depending on supply and demand, market conditions, general investor 
sentiment and other factors. Accordingly, the market price of the 
Ordinary shares may not fully reflect their underlying net asset value. 
 
   The Company operates a share buy-back policy, which is designed to limit 
the discount at which the Ordinary shares trade to around 5 per cent to 
net asset value, by providing a purchaser through the Company in absence 
of market purchasers. From time to time buy-backs cannot be applied, for 
example when the Company is subject to a close period, or if it were to 
exhaust any buy-back authorities. New Ordinary shares are issued at 
sufficient premium to net asset value to cover the costs of issue and to 
avoid asset value dilution to existing investors. 
 
   7.     Reputational risk 
 
   The Company relies on the judgement and reputation of the Manager which 
is itself subject to the risk of loss. 
 
   The Board regularly questions the Manager on its ethics, procedures, 
safeguards and investment philosophy, which should consequently result 
in the risk to reputation being minimised. 
 
 
 
   14.       Other information 
 
   The information set out in this Half-yearly Financial Report does not 
constitute the Company's statutory accounts within the terms of section 
434 of the Companies Act 2006 for the periods ended 30 September 2020 
and 30 September 2019, and is unaudited. The information for the year 
ended 31 March 2020 does not constitute statutory accounts within the 
terms of section 434 of the Companies Act 2006 but is derived from the 
statutory accounts for the financial year, which have been delivered to 
the Registrar of Companies. The Auditor reported on those accounts; 
their report was unqualified and did not contain statements under s498 
(2) or (3) of the Companies Act 2006. 
 
   15.      Publication 
 
   This Half-yearly Financial Report is being sent to shareholders and 
copies will be made available to the public at the registered office of 
the Company, Companies House, the National Storage Mechanism and also 
electronically at 
https://www.globenewswire.com/Tracker?data=ieFX9xgPL7oC_8xOsRmacIY1UFIZm6vBOaieebEnTtHU5CZdecGDBF7Haax-ECTo7Y1ZAz4bV7ucZHG9juzlCcQZCY8Jz6dUSEGC8ULmDFwo6VbfXw_hr2gVe8j4kmO9 
www.albion.capital/funds/AAEV, where the Report can be accessed from the 
'Financial Reports and Circulars' section. 
 
 
 
   Attachment 
 
 
   -- Pie chart for AAEV announcement 30.09.2020 
      https://ml-eu.globenewswire.com/Resource/Download/a03ea848-cffd-46a6-a84e-e6c5250045b4 
 
 
 
 
 
 
 

(END) Dow Jones Newswires

November 20, 2020 04:53 ET (09:53 GMT)

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

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