Share Name Share Symbol Market Type Share ISIN Share Description
Kings Arms Yard Vct Plc LSE:KAY London Ordinary Share GB0007174294 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% 21.10 20.60 21.60 21.10 21.10 21.10 0.00 00:00:00
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Equity Investment Instruments 1.8 1.0 0.3 62.1 64

Kings Arms Yard Kings Arms Yard Vct Plc: Annual Financial Report

26/03/2020 6:48pm

UK Regulatory (RNS & others)


 
TIDMKAY 
 
   Kings Arms Yard VCT PLC 
 
   LEI Code 213800DK8H27QY3J5R45 
 
   As required by the UK Listing Authority's Disclosure Guidance and 
Transparency Rules 4.1 and 6.3, Kings Arms Yard VCT PLC today makes 
public its information relating to the Annual Report and Financial 
Statements for the year ended 31 December 2019. 
 
   The announcement was approved for release by the Board of Directors on 
26 March 2020. 
 
   This announcement has not been audited. 
 
   The Annual Report and Financial Statements for the year ended 31 
December 2019 (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=UUq8Gf7aiNFTSYkDd3n7dKYftmTfAzESDUlPNBMX4AjuKEEfbjvW7yhtLvirgHg0tiSGp9-Xx6v7Cg8kW9k4KqdrwE8BVNlb24w8x2vnDNVWgWabOWbkJA0CMCNfMHPZTmEbEpvTqKkCWZAJrZMsA8-5I2mtImFyNco6GFiv5PY= 
www.albion.capital/funds/KAY/31Dec2019.pdf. 
 
   The information contained in the Annual Report and Financial Statements 
will include information as required by the Disclosure Guidance and 
Transparency Rule's, including Rule 4.1. 
 
   Investment policy 
 
   Kings Arms Yard VCT PLC is a Venture Capital Trust and the investment 
policy is intended to produce a regular and predictable dividend stream 
with an appreciation in capital value. 
 
   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. 
 
   Funds held pending investment or for liquidity purposes are held as cash 
on deposit or similar instruments with banks or other financial 
institutions with high credit ratings assigned by international credit 
rating agencies. 
 
   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 
the amount equal to its adjusted capital and reserves. 
 
   Financial calendar 
 
 
 
 
Record date for first dividend                                 14 April 2020 
Payment date for first dividend                                30 April 2020 
Annual General Meeting                                  Noon on 15 June 2020 
Announcement of half-yearly results for the six months           August 2020 
 ending 30 June 2020 
 
 
   Financial highlights 
 
 
 
 
22.02p  Net asset value per share as at 31 December 2019 
        --------------------------------------------------- 
 
0.42p   Basic and diluted return per share 
        --------------------------------------------------- 
 
 1.2p   Total tax free dividends per share paid in the year 
         to 31 December 2019 
        --------------------------------------------------- 
 
 0.6p   First tax free dividend per share declared for the 
         year to 31 December 2020 payable on 30 April 2020 
        --------------------------------------------------- 
 
 1.8%   Return on opening Net Asset Value per share 
        --------------------------------------------------- 
 
 
 
 
 
 
                           31 December 2019 (pence    31 December 2018 (pence 
                                  per share)                per share) 
 
Opening net asset value                       22.78                      21.60 
Revenue return                                 0.44                       0.34 
Capital (loss)/return                        (0.02)                       2.04 
                           ------------------------  ------------------------- 
Total return                                   0.42                       2.38 
Impact from issue of 
 share capital                                 0.02                          - 
Dividends paid                               (1.20)                     (1.20) 
                           ------------------------  ------------------------- 
Net asset value                               22.02                      22.78 
-------------------------  ------------------------  ------------------------- 
 
 
 
 
 
 
                        From launch to    1 January 2011 to     From launch to 
Total shareholder      31 December 2010    31 December 2019    31 December 2019 
return                 (pence per share)   (pence per share)   (pence per share) 
Subscription price 
 per share at 
 launch                           100.00                   -              100.00 
Dividends paid                     58.66                9.07               67.73 
(Decrease)/increase 
 in net asset value              (83.40)                5.42             (77.98) 
                      ------------------  ------------------  ------------------ 
Total shareholder 
 return                            75.26               14.49               89.75 
                      ------------------  ------------------  ------------------ 
 
 
 
   The Directors have declared a first dividend of 0.60 pence per share for 
the year ending 31 December 2020, which will be paid on 30 April 2020 to 
shareholders on the register on 14 April 2020. 
 
   The above financial summary is for the Company, Kings Arms Yard VCT PLC 
only. Details of the financial performance of the various Quester, SPARK 
and Kings Arms Yard VCT 2 PLC companies, which have been merged into the 
Company, can be found at 
https://www.globenewswire.com/Tracker?data=UUq8Gf7aiNFTSYkDd3n7dKYftmTfAzESDUlPNBMX4AiUd8N070fHOg4cGjq3ylW25OMNeCF9RG5TaAeHvWdbDQLuwGRgt2V5WqljBdnn7kYRE0gTL-h4obpjGDimKYBi 
www.albion.capital/funds/KAY under the 'Financial summary for previous 
funds' section. 
 
   Chairman's statement 
 
   Introduction 
 
   2019 was a less active year for realisations by our Company than those 
that preceded it, and portfolio capital gains have been more muted, but 
our total return on net assets has again progressed and a number of 
potentially exciting new technology investments have been made. 
 
   Covid-19 
 
   Since the Company's year end the world has been plunged into a 
healthcare emergency the possible extent of which cannot yet be 
assessed. It is too early to gauge the full economic consequences but 
the possibility of global recession has been widely predicted. 
 
   In these circumstances it is unlikely that any investment company will 
remain unaffected. 
 
   Our Manager is now assessing what might be the impact of the crisis on 
the value of each of our portfolio companies and we hope that by the end 
of April 2020 we will be able to publish our views on this and our 
Company's unaudited net asset value as at 31 March 2020. 
 
   Investment policy 
 
   Shareholders will recall the changes in the rules applying to 
permissible investments by venture capital trusts which were heralded by 
the Autumn Budget of November 2017. In our Annual Report for 2017 we 
characterised these changes as being intended "to encourage more high 
growth investment through VCTs rather than low risk, heavily 
asset-backed investments." 
 
   Accordingly, we proposed changing the Company's investment policy to 
that shown on above, which was adopted at the Annual General Meeting in 
May 2018. Two years after these changes it is appropriate to examine the 
effect they have had on our portfolio, and how this is likely to develop 
in the future. 
 
   At the end of 2016, 51% of the value of our investment portfolio 
comprised asset-backed or publicly quoted businesses. By 31 December 
2019 this proportion had shrunk to 42%, while the proportion of value in 
higher growth businesses including higher risk technology companies had 
grown from 49% to 58%. Going forward, this shift is likely to increase 
as maturing investments are sold and more higher growth investments are 
made. 
 
   While we have seen no material adverse change in any of the investments 
made since 2017, it is undeniable that investing in new technology 
carries a higher risk than that associated with some of the heavily 
asset-backed businesses that formed the majority of our portfolio in 
2016, and this will inevitably increase volatility over time. 
 
   This risk is, however, mitigated by two factors. Firstly, our Manager 
has expanded its resources to increase the number of investment 
professionals with experience of new technologies, and secondly, it is 
tending to select businesses that have already received and successfully 
deployed at least one round of external finance from other proven 
investment professionals. 
 
   Results and performance 
 
   The total return for the year was 0.42 pence per share, which is a 1.8% 
return on opening net asset value. Realised and unrealised gains on 
investments amounted to GBP1m for the year, mainly driven by a 
significant uplift of GBP1.5m in our valuation of Proveca, in light of a 
recent funding round, offset by write downs of Anthropics Technology 
(GBP1m) and Elateral Group (GBP0.4m). 
 
   Net asset value per share decreased by 0.76 pence to 22.02 pence over 
the year to 31 December 2019, after allowing for the payment of 
dividends totalling 1.20 pence per share. 
 
   We sold our holding in Bravo Inns II generating proceeds of GBP1.3m and 
a realised gain of GBP0.5m. Over the life of our investment, including 
interest received, we generated a return on cost of 2.0 times. The 
divestment of the legacy portfolio continues with the complete disposal 
of our holding in ErgoMed and The Wentworth Wooden Jigsaw Company, 
generating realised gains of GBP0.4m and GBP0.2m respectively. Total 
proceeds for the full disposal of ErgoMed now amount to GBP1.8m, 
representing a return on cost of 1.2 times. Further details can be found 
in the realisations table below. 
 
   Portfolio 
 
   The Company holds a widely diversified selection of businesses, with key 
investments in the healthcare, renewable energy and technology sectors. 
The majority of our investment portfolio comprises companies whose 
annual sales are growing. 
 
   In line with the Company's investment policy of investing in a broad 
range of higher growth businesses and technology companies, software and 
other technology represents 33% of our portfolio and is expected to 
continue to increase going forward. During the year a total of GBP2.0m 
was invested in 6 new portfolio companies, the majority of which are 
software and other technology businesses. Follow on investments were 
made into 19 existing portfolio companies and accounted for GBP3.6m of 
cash. 
 
   The portfolio now comprises a total of 63 companies of which 14 are 
legacy investments made before the present Manager was appointed in 
January 2011. These now account for 14% of the net asset value of the 
Company. 
 
   The Board has reassessed the carrying value of all portfolio investments 
and has reduced those wherever trading performance or market conditions 
made this necessary. The overall outcome shows a net positive gain on 
investments of GBP1m. 
 
   For a detailed review of these additions, disposals and other 
developments in the business please see the Strategic report below. 
 
   Dividend 
 
   The Board are pleased to declare a first dividend of 0.60 pence per 
share to be paid on 30 April 2020 to shareholders on the register on 14 
April 2020. Further dividends must depend upon the outcome of the 
current healthcare emergency and the resources that may be required to 
support our portfolio companies and investment policy. If a second 
dividend of 0.60 pence per share were paid in line with the annual 
dividend target of 1.20 pence per share then, based on the closing net 
asset value at 31 December 2019 of 22.02 pence per share, this would 
equate to a yield of 5.4%. 
 
   Manager 
 
   The Board continues closely to monitor the Manager's performance and 
reporting and remains encouraged by progress. 
 
   VCT qualifying status 
 
   As at 31 December 2019, the HMRC value of qualifying investments (which 
includes a 12 month disregard for disposals since 6 April 2019) was 100% 
(2018: 93%). The Board continues to monitor this and all the VCT 
qualification requirements very carefully in order to ensure that all 
requirements are met and that qualifying investments comfortably exceed 
the current minimum threshold, which from 1 January 2020 is 80% 
(previously 70%) required for the Company to continue to benefit from 
VCT tax status. 
 
   Albion VCTs Prospectus Top Up Offers 
 
   In January 2019, the Company announced the launch of the Albion VCTs 
Prospectus Top Up Offers 2018/19 and was pleased to announce on 5 April 
2019 that it had reached its GBP8 million limit under its Offer which 
was fully subscribed and closed early, as shown in note 14. 
 
   On 22(nd) October 2019 your Board, in conjunction with the boards of 
four of the other VCTs managed by Albion Capital Group LLP, launched a 
further Prospectus Top Up Offer of new Ordinary shares. The Board was 
pleased to announce the Offer had received its target of GBP10m and 
therefore closed to further applications on 16 January 2020. 
 
   The first allotment of shares under the Offer was on 31 January 2020 and 
a further allotment of shares in the 2020/21 tax year is anticipated in 
April 2020. Further details can be found in note 18. 
 
   Share buy-backs 
 
   Given uncertainty on valuations caused by the Coronavirus and its impact 
on financial markets in recent times, the Board agreed to suspend the 
Company's buy back operation on 18 March 2020, until after the Company 
has provided an updated valuation as at 31 March 2020 of the portfolio 
and the Company's net asset value. The Board does not intend to resume 
the Company's buyback programme until after the announcement of the 31 
March 2020 unaudited net asset value. 
 
   Annual General Meeting 
 
   As a Board, we have been deliberating the potential impact of the 
COVID-19 outbreak on the arrangements for our upcoming Annual General 
Meeting ("AGM"). These arrangements will evolve and we will keep 
shareholders updated of any changes on our Manager's website at 
www.albion.capital/funds/KAY. 
 
   We are required by law to hold an AGM within six months of our financial 
year end. Our AGM is therefore provisionally scheduled to be held at 
noon on 15 June 2020, at the offices of Albion Capital Group LLP, 1 
Benjamin Street, London, EC1M 5QL unless changes in legislation or 
government guidelines dictate otherwise. We are putting in place 
contingency arrangements which mean that the meeting is unlikely to 
follow the same format as in previous years but will still meet the 
minimum legal requirements for an AGM.  As a result, there will be no 
presentation from the Manager or from a portfolio company, and we will 
not be providing lunch after the AGM. 
 
   Full details of the business to be conducted at the Annual General 
Meeting are given in the Notice of the Meeting on pages 69 and 70 of the 
full Annual Report and Financial Statements. 
 
   This year, we would strongly encourage shareholders to consider whether 
attendance in person is necessary, especially given the public health 
advice. Shareholders' views are important and the Board encourages 
shareholders' to vote on the resolutions within the Notice of Annual 
General Meeting on pages 69 and 70 of the full Annual Report and 
Financial Statements 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 Annual General Meeting and recommends 
shareholders to vote in favour of all the resolutions being proposed. We 
encourage shareholders to submit their votes by proxy, rather than 
attending in person. If circumstances improve and you have submitted a 
proxy, you can still attend the meeting. 
 
   We always welcome questions from our shareholders at the AGM but this 
year, we request that shareholders submit their questions to the Board 
before the AGM. 
 
   You can submit questions up until noon on 12 June 2020 in the following 
ways: 
 
 
   -- By email: send your questions to KAYchair@albion.capital 
 
   -- By telephone: contact Shareholder relations on 020 7601 1850 
 
   Continuation as a venture capital trust 
 
   At the 2020 Annual General Meeting members will have the opportunity to 
confirm that they wish the Company to continue as a venture capital 
trust. If this resolution is not passed the Board is required to make 
proposals for the reorganisation, reconstruction or the orderly 
liquidation and winding up of the Company and present these to the 
members at a general meeting. Those shareholders who have deferred a 
capital gain by investing in the VCT should note that, on a return of 
capital, that gain would become chargeable at the prevailing rate of 
capital gains tax. 
 
   Your Board believes that Kings Arms Yard VCT PLC has the potential to be 
a highly effective long-term investment vehicle, with strong tax-free 
dividend streams. Therefore, the Board recommends that shareholders 
should vote in favour of the Company continuing as a venture capital 
trust for a further five years, as they intend to vote in respect of 
their own shares. 
 
   Risks and uncertainties 
 
   The outlook for the UK and global economies, including the implications 
of the current global healthcare emergency, any disruption from the 
departure of the UK from the EU, and the effects of recent quoted market 
turmoil, are the key risks affecting the Company and are under constant 
review. The Manager has performed an assessment on a portfolio company 
basis to assess our exposure to these risks and appropriate actions, 
where possible, are being implemented. 
 
   The Manager has a clear focus to allocate resources to those sectors and 
opportunities where it believes growth can be both resilient and 
sustainable, with provision of cash to assist some portfolio companies 
in these extreme market conditions being a priority. 
 
   A detailed analysis of the other risks and uncertainties facing the 
business is shown in the Strategic report below. 
 
   Fraud warning 
 
   We note over recent months an increase in the number of shareholders 
being contacted in connection with increasingly sophisticated but 
fraudulent financial scams. This is often by a phone call or an email 
which normally originates from outside of the UK, often claiming or 
appearing to come from a corporate finance firm and typically offering 
to buy your VCT shares at an inflated price. If you are contacted, we 
recommend that you do not respond with any personal information and say 
you are not interested. 
 
   The Manager maintains a page on their website in relation to fraud 
advice at www.albion.capital/investor-centre/fraud-advice. 
 
   If you are in any doubt, we recommend that you seek financial advice 
before taking any action. You can also call Shareholder relations on 020 
7601 1850, or email info@albion.capital 
https://www.globenewswire.com/Tracker?data=KorI0cuorMw54U9Us8XyZ-SQT8FzZ7pJFHCbms5ZtTGfB0XNt47G7o-3eaYD11wcIMCPZ4S5YBiHzL9OEAshJWtf_eD5uMP8Zaql0OCrVSo= 
, if you wish to check whether any claims made are genuine. 
 
   Outlook and prospects 
 
   We live in an uncertain world in which there are no guarantees of future 
prosperity. The only thing of which we can be reasonably sure is 
continued and very possibly accelerating technological change. Against 
this background we are fortunate if we can afford to invest, as our 
Company is doing, in new ideas and new technologies. 
 
   Your Board continues to believe that adding to and diversifying our 
portfolio of small unquoted businesses in varying stages of maturity 
offers superior value, and we remain confident of the long term 
prospects for our Company. 
 
   Robin Field 
 
   Chairman 
 
   26 March 2020 
 
   Strategic report 
 
   Investment policy 
 
   Kings Arms Yard VCT PLC is a Venture Capital Trust and the investment 
policy is intended to produce a regular and predictable dividend stream 
with an appreciation in capital value. 
 
   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. 
 
   The full investment policy can be found above. 
 
   Review of business and future changes 
 
   As outlined below, the Company has recorded a capital uplift during the 
year as a result of realised and unrealised gains of GBP1.0m. Key 
individual investment movements included a GBP1.5m uplift in Proveca 
Limited, a GBP0.3m uplift in OmPrompt Holdings Limited and a realised 
gain of GBP0.3m on the disposal of the remaining shares in ErgoMed PLC. 
This was offset by a reduction in the valuation of Anthropics Technology 
Limited of GBP1.0m and a further write down in the valuation of Elateral 
Group Limited of GBP0.4m. 
 
   Details of significant events which have occurred since the end of the 
financial year are listed in note 18. Details of transactions with the 
Manager are shown in note 4. 
 
   Results and dividends 
 
 
 
 
                                                           GBP'000 
Net revenue return for the year ended 31 December 
 2019                                                        1,449 
Net capital loss for the year ended 31 December 2019          (90) 
                                                           ------- 
Total return for the year ended 31 December 2019             1,359 
Dividend of 0.60 pence per share paid on 30 April 
 2019                                                      (2,010) 
Dividend of 0.60 pence per share paid on 31 October 
 2019                                                      (2,005) 
Unclaimed dividends returned to the Company                     36 
Transferred from reserves                                  (2,620) 
                                                           ------- 
 
Net assets as at 31 December 2019                           73,456 
                                                           ======= 
 
Net asset value per share as at 31 December 2019 (pence)    22.02p 
---------------------------------------------------------  ------- 
 
 
   The Company paid dividends of 1.20 pence per share during the year ended 
31 December 2019 (2018: 1.20 pence per share). The Directors have 
declared a first dividend of 0.60 pence per share for the year ending 31 
December 2020, which will be paid on 30 April 2020 to shareholders on 
the register on 14 April 2020. 
 
   As shown in the Income statement, investment income has increased to 
GBP2,144,000 (2018: GBP1,834,000) due to higher dividends received and 
loan stock income increasing to GBP1,855,000 (2018: GBP1,625,000). The 
capital loss of GBP90,000 for the year (2018: gain of GBP6,159,000) was 
primarily due to the valuation write downs of Anthropics Technology and 
Elateral Group, and the portion of the management fee charged to capital, 
offset by the increase in valuation of Proveca due to a recent funding 
round. 
 
   The return for the year has decreased to GBP1,359,000 (2018: 
GBP7,190,000), equating to a return of 0.42 pence per share (2018: 2.38 
pence per share). 
 
   The Balance sheet shows that the net asset value has decreased over the 
last year to 22.02 pence per share (2018: 22.78 pence per share). 
 
   There has been a net cash inflow of GBP2,382,000 for the year (2018: 
GBP785,000), mainly due to the disposal of fixed asset investments and 
fundraising, offset by the purchase of new investments, the payment of 
dividends and buyback of shares. Cash and liquid assets at the year-end 
increased to GBP9.9 million (2018: GBP7.5 million), representing 13% of 
net asset value. 
 
   Current portfolio sector allocation 
 
   The pie charts at the end of this announcement show the split of the 
portfolio valuation as at 31 December 2019 by: sector; stage of 
investment; and number of employees. Details of the principal 
investments made by the Company are shown in the Portfolio of 
investments on pages 22 to 24 of the full Annual Report and Financial 
Statements. 
 
   Direction of portfolio 
 
   As at 31 December 2019 the portfolio is well balanced in terms of 
sectors and stage of maturity, with software and other technology being 
the largest element of the portfolio. In line with the recent changes to 
VCT legislation and the Company's investment policy as outlined above, 
future investments will continue to be focused on higher growth 
businesses across a variety of sectors. 
 
   Future prospects 
 
   The Company's performance record reflects the success of the strategy 
outlined above and has enabled the Company to maintain a predictable 
stream of dividend payments to shareholders. As detailed in the 
Chairman's statement, since the Company's year end the world has been 
plunged into a healthcare emergency and it is unlikely that any 
investment company will remain unaffected. Although it is too early to 
gauge the full economic consequences, the Company's portfolio is well 
balanced across sectors and risk classes and the Board believes that the 
Company has the potential to continue to deliver returns to 
shareholders.  Further details on the Company's outlook and prospects 
can be found in the Chairman's statement. 
 
   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 their 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 return relative to FTSE All-Share Index total 
return 
 
   The graph on page 4 of the full Annual Report and Financial Statements 
shows the strong performance of the Company's total shareholder return 
against the FTSE All-Share Index total return, with dividends reinvested, 
from the appointment of Albion Capital Group LLP on 1 January 2011. 
 
   The Directors consider the FTSE All-Share Index to be the most 
appropriate indicative benchmark for the Company as it contains a large 
range of sectors within the UK economy similar to a generalist VCT. 
Investors should, however, be reminded that shares in VCTs generally 
trade at a discount to their net asset values. 
 
   2. Net asset value per share and total shareholder return 
 
   Total shareholder return since inception increased by 0.44 pence per 
share (1.8% on opening NAV) to 89.75 pence per share for the year ended 
31 December 2019. 
 
   3. Shareholder return in the year 
 
 
 
 
 2010   2011  2012   2013    2014   2015  2016   2017  2018   2019 
------  ----  -----  -----  ------  ----  -----  ----  -----  ---- 
(4.8%)  4.8%  18.6%  12.4%  (0.8%)  9.2%  11.5%  5.8%  11.0%  1.8% 
------  ----  -----  -----  ------  ----  -----  ----  -----  ---- 
 
 
   Methodology: Shareholder return is calculated by the movement in total 
shareholder value for the year divided by the opening net asset value. 
 
   Source: Albion Capital Group LLP 
 
   4. Dividend distributions 
 
   Dividends paid in respect of the year ended 31 December 2019 were 1.20 
pence per share (2018: 1.20 pence per share), in line with the Board's 
dividend objective for 2019. The annual dividend target for the 2020 
financial year is 1.20 pence per share as outlined in the Chairman's 
statement. The cumulative dividend paid since inception is 67.73 pence 
per share. 
 
   5. Ongoing charges 
 
   The ongoing charges ratio for the year to 31 December 2019 was 2.4% 
(2018: 2.4%). 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 Directors expect the ongoing charges ratio for the 
year ahead to be approximately 2.4%. 
 
   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 
31 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 2019. 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. 
 
   Investment progress 
 
   During the year, GBP5.6 million of cash was invested in new and existing 
portfolio companies, predominantly in the healthcare and technology 
sectors. New investments were made in 6 companies and totalled GBP2.0 
million during the year and included: 
 
 
   -- Avora (GBP510,000), a developer of software to improve decision making 
      through augmented analytics and machine learning; 
 
   -- Elliptic Enterprises (GBP488,000), a provider of Anti Money Laundering 
      services to digital asset institutions; 
 
   -- Cantab Research (T/A Speechmatics) (GBP460,000), provider of a low 
      footprint automated speech recognition software which can be deployed in 
      the cloud, on premise or on device across 29 languages; 
 
   -- Limitless Technology (GBP260,000), a provider of a customer service 
      platform powered by the crowd and machine learning technology; 
 
   -- Clear Review (GBP203,000), a provider of Human Resources software to 
      mid-market enterprises; and 
 
   -- Imandra (GBP91,000), a provider of automated software testing and an 
      enhanced learning experience for artificial neural networks. 
 
 
   Follow-on investments were made in 19 portfolio companies and totalled 
GBP3.6 million during the year. The three largest being: GBP955,000 into 
Proveca, a company which reformulates medicines for paediatric use; 
GBP762,000 into Perpetuum, a provider of vibration harvester powered 
wireless sensing systems for the rail and industrial sectors; and 
GBP400,000 into Elateral Group, a provider of digital marketing 
software. 
 
   During the year the Company sold its entire holding in Bravo Inns II 
realising proceeds of GBP1.3 million with a realised gain on cost of 
GBP0.5 million. The Company also sold its remaining holding in ErgoMed 
generating proceeds of GBP1.2 million and a realised gain on cost of 
GBP0.4m. Other realisations can be found in the realisations table on 
page 24 of the full Annual Report and Financial Statements. 
 
   The pie chart at the end of this announcement outlines the different 
sectors in which the Company's assets, at carrying value, are currently 
invested. 
 
   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 Investment Management Agreement, Albion Capital Group LLP 
provides investment management, company secretarial and administrative 
services to the Company. Albion Capital Group LLP is entitled to an 
annual management fee of 2% of net asset value of the Company, payable 
quarterly in arrears, along with an annual administration fee of 
GBP50,000. 
 
   The aggregate payable for management and administration (normal running 
costs) are subject to an aggregate annual cap of 3% of the year end 
closing net asset value, for accounting periods commencing after 31 
December 2011. 
 
   The Investment Management Agreement can 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 also entitled to an arrangement fee on investment, 
payable by each portfolio company, of approximately 2% of each 
investment made and monitoring fees where the Manager has a 
representative on the portfolio company's board. Further details of the 
Manager's fee can be found in note 4. 
 
   Performance incentive fee 
 
   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 hurdle is equal to the greater of the Starting NAV of 20 
pence per share, increased by the increase in RPI plus 2% per annum from 
the Start Date of 1 January 2014 (calculated on a simple and not 
compound basis) and the highest Total Return for any earlier period 
after the Start Date (the 'high watermark'). An annual fee (in respect 
of each share in issue) of an amount equal to 15% of any excess of the 
Total Return (this being NAV per share plus dividends paid after the 
Start Date) as at the end of the relevant accounting period over the 
performance hurdle will be due to the Manager. 
 
   There was no management performance incentive payable during the year 
(2018: GBP637,000). As at 31 December 2019, the total return of the 
Company since 1 January 2014 (the performance incentive fee start date) 
was 28.42 pence per share, compared to a performance hurdle rate of 
28.82 pence per share, resulting in a shortfall of 0.40 pence per share. 
This amount needs to be made up in future accounting periods in order 
for an incentive fee to become payable. 
 
   Evaluation of the Manager 
 
   The Board has evaluated the performance of the Manager based on the 
returns generated by the Company from the management and sale of 
existing investments, the continuing achievement of the 70% (80% from 1 
January 2020 for the Company) qualifying investment holdings requirement 
for the Venture Capital Trust status, the making of new investments in 
accordance with the investment policy, the long term prospects of 
current investments, a review of the Investment Management Agreement and 
the services provided therein and benchmarking the performance of the 
Manager to other service providers. 
 
   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 
June 2014 as required by the AIFMD. The Manager became a full-scope 
Alternative Investment Fund Manager under the AIFMD on 1 October 2018. 
As a result, from that date, Ocorian (UK) Limited was appointed as 
Depositary to oversee the custody and cash arrangements and provide 
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 ways 
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 Company is an externally managed investment company with no 
employees and as such has nothing to report in relation to employee 
engagement. The Company also has no customers in the traditional sense 
and therefore there is nothing to report in relation to relationships 
with customers. 
 
   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; 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 a strong, predictable 
dividend flow and the prospect of capital growth. The Company has in 
place a buy-back policy as an important means of providing market 
liquidity for Shareholders. Details regarding the current buy-back 
policy can be found in the Chairman's statement. These important 
components, performance, predictable income return and liquidity when 
required are fundamental tenets of the way in which the Company operates 
for its Shareholders. 
 
 
 
   Shareholders' views are important. The Board encourages shareholders to 
vote on the resolutions at the Annual General Meeting. The Company's 
Annual General Meeting is used typically as an opportunity to 
communicate with investors, including through a presentation made by the 
investment management team. However, as detailed in the Chairman's 
statement, there will be no presentation from the Manager or from a 
portfolio company, and we will not be providing lunch after this year's 
AGM due to the impact of the COVID-19 outbreak. (Details of the location 
and time of the Annual General Meeting can be found in the Directors 
report on page 33 of the full Annual Report and Financial Statements). 
 
   Shareholders are also encouraged to attend the annual Shareholders' 
Seminar. The seminars include some of the portfolio companies sharing 
insights into their businesses and also have 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 seminars are placed on the Manager's website. 
Representatives of the Board attend the seminars. 
 
 
 
   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. Details of the Manager's and Board's responsibilities can be 
found in the Statement of corporate governance on pages 36 and 37 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 Board receives reports on Environmental, Social and Governance 
("ESG") factors within its portfolio from Albion Capital Group LLP as it 
is a signatory of the UN Principles for Responsible Investment.  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 focussed around cash management and 
deployment of cash for future investments, dividends and share buybacks, 
resulting in the decision to participate in the Albion VCTs Top Up 
Offers 2019/20. Time was also spent in ensuring the Board met Corporate 
Governance requirements which continue to evolve, including the 
introduction of the new AIC Code last year. 
 
   Environmental, Social, and Governance ("ESG") 
 
   Albion Capital Group LLP became a signatory of the UN Principles for 
Responsible Investment ("UN PRI") on 14 May 2019. 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. 
 
   Albion will make its first trial submission in 2020 against this 
framework and the first full submission in 2021. The trial process in 
2020 will identify initial gaps in information being collected and areas 
that require action. This annual process will inform fuller ESG 
disclosure by 2021 and create a regular audit function to ensure 
continual improvement. 
 
   To ensure that the principles are starting to be translated into both 
the investment and portfolio management processes, since June 2019 all 
quarterly valuations and investment papers include a section covering 
relevant aspects of ESG for each investment. In addition, all fund level 
reports also include ESG sections and ESG will be included as a standing 
item on the agendas of all investment committees and Albion's internal 
board meetings, and any findings are discussed at fund board meetings 
(VCTs and LP funds). Reporting is intentionally light in the first 
instance, partly due to the stage and nature of investments and to 
encourage widespread adoption. The level of reporting is expected to 
build over time as the range of factors to consider increases and as our 
compliance with the UN PRI guidelines becomes apparent. 
 
   The Board and Manager have exercised conscious principles in making 
responsible investments throughout the life of the Company, not least in 
providing finance for nascent 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 is 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 small companies, 
but some of which will grow and serve important societal demands. One of 
the most important key performance indicators 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. 
 
 
 
   The Company adheres to the principles of the AIC Code of Corporate 
Governance and is also aware of other governance and other 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 but also, through its experience of the Company, 
continuity over the longer term investments the Company makes. 
 
   Social and community issues, employees and human rights 
 
   The Board recognises the requirement under section 414C of the Companies 
Act 2006 (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 and as such these requirements do 
not apply. 
 
   General Data Protection Regulation 
 
   The General Data Protection Regulation came into effect from 25 May 2018 
with the objective of unifying data privacy requirements across the 
European Union. The Manager, Albion Capital Group LLP, has taken action 
to ensure that the Manager and the Company are compliant with the 
regulation. 
 
   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 
 
   and these are set out in the Directors' report on pages 31 and 32 of the 
full Annual Report and Financial Statements. 
 
   Risk management 
 
   The Board carries out a regular review of the risk environment in which 
the Company operates, 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 emerging risk has been the 
threat of the global pandemic which has impacted on not only public 
health and mobility but also has had an adverse impact on global traded 
markets, the impact of which, by its nature, is likely to be uncertain 
for some time, and at time of publishing the accounts is severe. 
 
 
 
   The Directors have carried out a robust assessment of the Company's 
disclosures below that describe the principal risks and explain how they 
are being managed or mitigated. The principal risks and uncertainties of 
the Company as identified by the Board and how they are managed are 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 capital and income returns            the skills and expertise of the Manager and its track 
and           to shareholders, and could negatively impact on the          record over many years of making successful investments 
valuation     Company's current and 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 
              Investments in open-ended equity funds result in exposure    and at least one external investment professional. 
              to market risk through movements in price per unit.          The Manager also invites and takes account of comments 
              The Company's investment valuation methodology is            from non-executive Directors of the Company on matters 
              reliant on the accuracy and completeness of information      discussed at the Investment Committee meetings. Investments 
              that is issued by portfolio companies. In particular,        are actively and regularly monitored by the Manager 
              the Directors may not be aware of or take into account       (investment managers normally sit on portfolio company 
              certain events or circumstances which occur after            boards), including the level of diversification in 
              the information issued by such companies is reported.        the portfolio, and the Board receives detailed reports 
                                                                           on each investment as part of the Manager's report 
                                                                           at quarterly board meetings. 
                                                                           The unquoted investments held by the Company are designated 
                                                                           at fair value through profit or loss and valued in 
                                                                           accordance with the International Private Equity and 
                                                                           Venture Capital Valuation Guidelines. These guidelines 
                                                                           set out recommendations, intended to represent current 
                                                                           best practice on the valuation of venture capital 
                                                                           investments. The valuation takes into account all 
                                                                           known material facts up to the date of approval of 
                                                                           the Financial Statements by the Board. 
-----------  -----------------------------------------------------------  ------------------------------------------------------------ 
VCT          The Company must comply with section 274 of the Income       To reduce this risk, the Board has appointed the Manager, 
approval      Tax Act 2007 which enables its investors to take advantage   which has a team with significant experience in venture 
risk          of tax relief on their investment and on future returns.     capital trust management, and are used to operating 
              Breach of any of the rules enabling the Company to           within the requirements of the venture capital trust 
              hold VCT status could result in the loss of that status.     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 portfolio company is also pre-cleared 
                                                                           with our professional advisers or H.M. Revenue & Customs. 
-----------  -----------------------------------------------------------  ------------------------------------------------------------ 
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, including legislation on 
              to comply with these regulations could result in a           the management of the Company, from its auditor, lawyers 
              delisting of the Company's shares, or other penalties        and other professional bodies. The Company is subject 
              under the Companies Act or from financial reporting          to compliance checks through the Manager's compliance 
              oversight bodies.                                            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. 
-----------  -----------------------------------------------------------  ------------------------------------------------------------ 
Operational  The Company relies on a number of third parties, in          The Company and its operations are subject to a series 
and           particular the Manager, for the provision of investment      of rigorous internal controls and review procedures 
internal      management and administrative functions. Failures            exercised throughout the year, and receives reports 
control       in key systems and controls within the Manager's business    from the Manager on internal controls and risk management, 
risk          could place assets of the Company at risk or result          including on matters relating to cyber security. 
              in reduced or inaccurate information being passed            The Audit Committee reviews the Internal Audit Reports 
              to the Board or to shareholders.                             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 duties 
                                                                           as a full-scope Alternative Investment Fund Manager 
                                                                           under 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 
                                                                           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 and other       in addition often invests in a mixture of instruments 
risk          factors could substantially and adversely affect the         in portfolio companies and has a policy of minimising 
              Company's prospects in a number of ways. This also           any external bank borrowings within portfolio companies. 
              includes risks of social upheaval, including from            At any given time, the Company has sufficient cash 
              infection and population re-distribution, as well            resources to meet its operating requirements, including 
              as economic risk challenges as a result of healthcare        share buy backs and follow on investments. 
              pandemics/infection.                                         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. 
-----------  -----------------------------------------------------------  ------------------------------------------------------------ 
Market       The market value of Ordinary shares can fluctuate.           The Company operates a share buyback policy, which 
value of      The market value of an Ordinary share, as well as            is designed to limit the discount at which the Ordinary 
Ordinary      being affected by its net asset value and prospective        shares trade to around 5 per cent. to net asset value, 
shares        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,     and could not renew any buyback 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, including the ability to exercise share 
              buybacks. Accordingly, the market price of the Ordinary 
              shares may not fully reflect their underlying net 
              asset value. 
-----------  -----------------------------------------------------------  ------------------------------------------------------------ 
 
 
 
   Viability statement 
 
   In accordance with the FRC UK Corporate Governance Code published in 
2018 and provision 36 of the AIC Code of Corporate Governance, the 
Directors have assessed the prospects of the Company over three years to 
31 December 2022. The Directors believe that three years is a reasonable 
period in which they can assess the ability 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 require 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 
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 
the 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. The Board deliberates over the importance of the Manager 
and the processes that it has in place for dealing with the principal 
risks. 
 
   The Board assessed the ability of the Company to raise finance. As 
explained in this Strategic report the Company's income more than covers 
on-going expenses (net of any performance incentive fees). 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. 
 
   In considering the viability of the Company, the Board took into account 
factors including the processes for mitigating risks, monitoring costs, 
managing share price discount, 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 2022. 
 
   This Strategic report of the Company for the year ended 31 December 2019 
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 
 
   Robin Field 
 
   Chairman 
 
   26 March 2020 
 
   Responsibility statement 
 
   In preparing these Financial Statements for the year to 31 December 
2019, the Directors of the Company, being Robin Field, Thomas Chambers, 
Martin Fiennes and Fiona Wollocombe, confirm 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 
      2019 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 asses the Company's position, 
performance, business model and strategy. 
 
   A detailed "Statement of Directors' responsibilities" is contained on 
page 35 of the full Annual Report and Financial Statements. 
 
   For and on behalf of the Board 
 
   Robin Field 
 
   Chairman 
 
   26 March 2020 
 
   Income statement 
 
 
 
 
                                                                    Year ended 31 December      Year ended 31 December 
                                                                             2019                        2018 
----------------------------------------------------------  ----  --------------------------  -------------------------- 
                                                                  Revenue  Capital   Total    Revenue  Capital   Total 
                                                            Note  GBP'000  GBP'000  GBP'000   GBP'000  GBP'000  GBP'000 
----------------------------------------------------------  ----  -------  -------  --------  -------  -------  -------- 
Gains on investments                                         2          -    1,002     1,002        -    7,644     7,644 
Investment income                                            3      2,144        -     2,144    1,834        -     1,834 
Investment management fee                                    4      (364)  (1,092)   (1,456)    (336)  (1,007)   (1,343) 
Performance incentive fee                                    4          -        -         -    (159)    (478)     (637) 
Other expenses                                               5      (331)        -     (331)    (308)        -     (308) 
Profit/(loss) on ordinary activities before tax                     1,449     (90)     1,359    1,031    6,159     7,190 
Tax on ordinary activities                                     7        -        -         -        -        -         - 
                                                                  -------  -------  --------  -------  -------  -------- 
Profit/(loss) and total comprehensive income attributable 
 to shareholders                                                    1,449     (90)     1,359    1,031    6,159     7,190 
                                                                  -------  -------  --------  -------  -------  -------- 
Basic and diluted return/(loss) per share (pence) 
 *                                                             9     0.44   (0.02)      0.42     0.34     2.04      2.38 
                                                                  -------  -------  --------  -------  -------  -------- 
 
 
 
   *adjusted for treasury shares 
 
   The accompanying notes 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 2019  31 December 2018 
                                      Note      GBP'000           GBP'000 
------------------------------------  ----  ----------------  ---------------- 
 
 
Fixed assets investments                10            63,960            61,639 
 
 
Current assets 
Current asset investments               12                 -               373 
Trade and other receivables less 
 than one year                          12               115               731 
Cash and cash equivalents                              9,867             7,485 
                                            ----------------  ---------------- 
                                                       9,982             8,589 
 
Total assets                                          73,942            70,228 
 
Payables: amounts falling due within 
one year 
Trade and other payables                13             (486)           (1,078) 
                                            ----------------  ---------------- 
 
 
Total assets less current 
 liabilities                                          73,456            69,150 
                                            ----------------  ---------------- 
 
Equity attributable to equityholders 
Called up share capital                 14             3,883             3,519 
Share premium                                         35,825            27,896 
Capital redemption reserve                                11                11 
Unrealised capital reserve                            14,707            15,358 
Realised capital reserve                               9,200             8,639 
Other distributable reserve                            9,830            13,727 
                                            ----------------  ---------------- 
 
Total equity shareholders' funds                      73,456            69,150 
                                            ----------------  ---------------- 
 
Basic and diluted net asset value 
 per share (pence)*                     15             22.02             22.78 
                                            ----------------  ---------------- 
 
 
 
   *excluding treasury shares 
 
   The accompanying notes form an integral part of these Financial 
Statements. 
 
   The Financial Statements were approved by the Board of Directors and 
authorised for issue on 26 March 2020 and were signed on its behalf by: 
 
   Robin Field 
 
   Chairman 
 
   Company number: 03139019 
 
   Statement of changes in equity 
 
 
 
 
                                                       Called 
                                                         up                                            Unrealised  Realised      Other 
                                                        share    Share                                  capital    capital   distributable 
                                                       capital  premium    Capital redemption reserve   reserve    reserve*    reserve*      Total 
                                                       GBP'000  GBP'000            GBP'000              GBP'000    GBP'000      GBP'000     GBP'000 
-----------------------------------------------------  -------  -------  ----------------------------  ----------  --------  -------------  ------- 
At 1 January 2019                                        3,519   27,896                            11      15,358     8,639         13,727   69,150 
Profit/(loss) and total comprehensive income for the 
 period                                                      -        -                             -         274     (364)          1,449    1,359 
Transfer of previously unrealised gains on disposal 
 of investments                                              -        -                             -       (925)       925              -        - 
Purchase of own shares for treasury                          -        -                             -           -         -        (1,367)  (1,367) 
Issue of equity                                            364    8,120                             -           -         -              -    8,484 
Cost of issue of equity                                      -    (191)                             -           -         -              -    (191) 
Dividends paid                                               -        -                             -           -         -        (3,979)  (3,979) 
                                                       -------  -------  ----------------------------  ----------  --------  -------------  ------- 
At 31 December 2019                                      3,883   35,825                            11      14,707     9,200          9,830   73,456 
                                                       -------  -------  ----------------------------  ----------  --------  -------------  ------- 
At 1 January 2018                                        3,321   23,841                            11      12,118     5,720         17,481   62,492 
Profit and total comprehensive income for the period         -        -                             -       6,102        57          1,031    7,190 
Transfer of previously unrealised gains on disposal 
 of investments                                              -        -                             -     (2,862)     2,862              -        - 
Purchase of own shares for treasury                          -        -                             -           -         -        (1,145)  (1,145) 
Issue of equity                                            198    4,157                             -           -         -              -    4,355 
Cost of issue of equity                                      -    (102)                             -           -         -              -    (102) 
Dividends paid                                               -        -                             -           -         -        (3,640)  (3,640) 
                                                       -------  -------  ----------------------------  ----------  --------  -------------  ------- 
At 31 December 2018                                      3,519   27,896                            11      15,358     8,639         13,727   69,150 
-----------------------------------------------------  -------  -------  ----------------------------  ----------  --------  -------------  ------- 
 
 
   *These reserves amount to GBP19,030,000 (2018: GBP22,366,000) which is 
considered distributable. 
 
   The accompanying notes form an integral part of these Financial 
Statements. 
 
   Statement of cash flows 
 
 
 
 
                                           Year ended         Year ended 
                                         31 December 2019   31 December 2018 
                                             GBP'000            GBP'000 
-------------------------------------   -----------------  ----------------- 
 
Cash flow from operating activities 
Investment income received                          2,000              1,437 
Deposit interest received                              35                 23 
Dividend income received                              254                185 
Investment management fee paid                    (1,425)            (1,292) 
Performance incentive fee paid                      (637)                  - 
Other cash payments                                 (309)              (311) 
UK corporation tax paid                                 -                  - 
                                        -----------------  ----------------- 
 
Net cash flow from operating 
 activities                                          (82)                 42 
 
Cash flow from investing activities 
Purchase of fixed asset investments               (5,637)            (4,618) 
Disposal of fixed asset investments                 5,172              5,904 
 
Net cash flow from investing 
 activities                                         (465)              1,286 
                                        -----------------  ----------------- 
 
Cash flow from financing activities 
 
Issue of share capital                              7,804              3,826 
Cost of issue of equity                               (4)                (4) 
Purchase of own shares (including 
 costs)                                           (1,367)            (1,146) 
Equity dividends paid*                            (3,504)            (3,219) 
 
 
Net cash flow from financing 
 activities                                         2,929              (543) 
                                        -----------------  ----------------- 
 
Increase in cash and cash equivalents               2,382                785 
 
Cash and cash equivalents at start of 
 the year                                           7,485              6,700 
 
 
Cash and cash equivalents at end of 
 the year                                           9,867              7,485 
--------------------------------------  -----------------  ----------------- 
 
 
   * The equity dividends paid shown in the cash flow are different to the 
dividends disclosed in note 8 as a result of the non-cash effect of the 
Dividend Reinvestment Scheme. 
 
   The accompanying notes form an integral part of these Financial 
Statements. 
 
   Notes to the Financial Statements 
 
   1. Accounting policies 
 
   Basis of accounting 
 
   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 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 below. 
 
   Company information can be found on page 2 of the full Annual Report and 
Financial Statements. 
 
   Fixed 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% 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 designated by the Company as FVTPL and are 
included at their initial fair value, which is cost (excluding expenses 
incidental to the acquisition which are written off to the Income 
statement). 
 
   Subsequently, the investments are valued at 'fair value', which is 
measured as follows: 
 
 
   -- Investments listed on recognised exchanges are valued at their bid prices 
      at the end of the accounting period or otherwise at fair value based on 
      published price quotations. 
 
   -- Unquoted investments, where there is not an active market, are valued 
      using an appropriate valuation technique in accordance with the IPEV 
      Guidelines. Indicators of fair value are derived using established 
      methodologies including earnings multiples, the level of third party 
      offers received, cost or price of recent investment rounds, net assets 
      and industry valuation benchmarks. Where price of recent investment is 
      used as a starting point for estimating fair value at subsequent 
      measurement dates, this has been benchmarked using an appropriate 
      valuation technique permitted by the IPEV guidelines. 
 
   -- In situations where cost or price of recent investment is used, 
      consideration is given to the circumstances of the portfolio company 
      since that date in determining fair value. This includes consideration of 
      whether there is any evidence of deterioration or strong definable 
      evidence of an increase in value. In the absence of these indicators, the 
      investment in question is valued at the amount reported at the previous 
      reporting date. Examples of events or changes that could indicate a 
      diminution include: 
 
          -- the performance and/or prospects of the underlying business are 
             significantly below the expectations on which the investment was 
             based; 
 
          -- a significant adverse change either in the portfolio company's 
             business or in the technological, market, economic, legal or 
             regulatory environment in which the business operates; or 
 
          -- market conditions have deteriorated, which may be indicated by a 
             fall in the share prices of quoted businesses operating in the 
             same or related sectors. 
 
 
   Investments are recognised as financial assets on legal completion of 
the investment contract and are de-recognised on legal completion of the 
sale of an investment. 
 
   Dividend income is not recognised as part of the fair value movement of 
an investment, but is recognised separately as investment income through 
the Income statement when a share becomes ex-dividend. 
 
   Current assets and payables 
 
   Receivables and payables and cash are carried at amortised cost, in 
accordance with FRS 102. There are no financial liabilities other than 
payables. 
 
   Gains and losses on investments 
 
   Gains and losses arising from changes in the fair value of the 
investments are included in the Income statement for the year as a 
capital item and are allocated to the unrealised capital reserve. 
 
   Investment income 
 
   Equity income 
 
   Dividend income is included in revenue when the investment is quoted 
ex-dividend. 
 
   Unquoted loan stock and other preferred 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 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% of management fees and performance incentive fees are allocated to 
      the realised capital reserve. This is in line with the Board's 
      expectation that over the long term 75% 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. 
 
   Foreign exchange 
 
   The currency of the primary economic environment in which the Company 
operates (the functional currency) is pounds Sterling ("Sterling"), 
which is also the presentational currency of the Company. Transactions 
involving currencies other than Sterling are recorded at the exchange 
rate ruling on the transaction date. At each Balance sheet date, 
monetary items and non-monetary assets and liabilities that are measured 
at fair value, which are denominated in foreign currencies, are 
retranslated at the closing rates of exchange. Exchange differences 
arising on settlement of monetary items and from retranslating at the 
Balance sheet date of investments and other financial instruments 
measured at FVPTL, and other monetary items, are included in the Income 
statement. Exchange differences relating to investments and other 
financial instruments measured at fair value are subsequently included 
in the unrealised capital reserve. 
 
   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 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; 
 
   --               expenses, together with the related taxation effect, 
charged in accordance with the above policies; and 
 
   --               dividends paid to equity holders. 
 
   Other distributable reserve 
 
   The special reserve, treasury share reserve and the revenue reserve were 
combined in 2012 to form a single reserve named other distributable 
reserve. 
 
   This reserve accounts for 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. 
 
 
 
 
                                             Year ended         Year ended 
                                           31 December 2019   31 December 2018 
2. Gains on investments                        GBP'000            GBP'000 
----------------------------------------  -----------------  ----------------- 
Unrealised gains on fixed asset 
 investments                                            647              5,729 
Unrealised (losses)/gains on current 
 asset investments                                    (373)                373 
Realised gains on fixed asset 
 investments                                            728              1,542 
                                                      1,002              7,644 
                                          -----------------  ----------------- 
 
 
 
 
 
 
                                             Year ended         Year ended 
                                           31 December 2019   31 December 2018 
3. Investment income                           GBP'000            GBP'000 
----------------------------------------  -----------------  ----------------- 
Interest from loans to portfolio 
 companies                                            1,855              1,625 
Dividends                                               254                185 
Bank deposit interest                                    35                 24 
                                                      2,144              1,834 
                                          -----------------  ----------------- 
 
 
 
 
 
 
                                                        Year ended         Year ended 
4. Investment management and performance incentive    31 December 2019   31 December 2018 
 fee                                                      GBP'000            GBP'000 
---------------------------------------------------  -----------------  ----------------- 
Investment management fee charged to revenue                       364                336 
Investment management fee charged to capital                     1,092              1,007 
Performance incentive fee charged to revenue                         -                159 
Performance incentive fee charged to capital                         -                478 
                                                     -----------------  ----------------- 
                                                                 1,456              1,980 
                                                     -----------------  ----------------- 
 
 
   Further details of the Management agreement under which the investment 
management fee and performance incentive fee are paid is given in the 
Strategic report. 
 
   During the year, services with a value of GBP1,456,000 (2018: 
GBP1,343,000) and GBP50,000 (2018: GBP50,000) were purchased by the 
Company from Albion Capital Group LLP in respect of management and 
administration fees respectively. There was no performance incentive fee 
due during the year (2018: GBP637,000). At the financial year end, the 
amount due to Albion Capital Group LLP in respect of these services 
disclosed within payables was GBP391,000 (2018: GBP997,000). 
 
   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 2019, fees of GBP200,000 (31 December 2018: 
GBP241,000) attributable to the investments of the Company were paid 
pursuant to these arrangements. 
 
   Albion Capital Group LLP, its partners and staff hold 1,380,249 Ordinary 
shares in the Company as at 31 December 2019. 
 
   The Company has entered into an offer agreement relating to the Offers 
with the Company's investment manager Albion Capital Group LLP 
("Albion"), pursuant to which Albion will receive a fee of 2.5% of the 
gross proceeds of the Offers and out of which Albion will pay the costs 
of the Offers, as detailed in the Prospectus. 
 
 
 
 
                                                          Year ended         Year ended 
                                                        31 December 2019   31 December 2018 
5. Other expenses                                           GBP'000            GBP'000 
-----------------------------------------------------  -----------------  ----------------- 
Administrative and secretarial services to the 
 Manager                                                              50                 50 
Directors' fees (note 6)                                              91                 72 
 Auditor's remuneration for statutory audit services 
  (excluding VAT)                                                     31                 26 
 Other expenses                                                      159                154 
                                                                     331                302 
Foreign exchange cost                                                  -                  6 
                                                       -----------------  ----------------- 
                                                                     331                308 
                                                       -----------------  ----------------- 
 
 
 
 
 
 
                                      Year ended     Year ended 
                                31 December 2019   31 December 2018 
6. Directors' fees                       GBP'000       GBP'000 
----------------------------  ------------------  ----------------- 
Amount payable to Directors                   84                 66 
National insurance                             7                  6 
                                              91                 72 
                               -----------------  ----------------- 
 
 
   The Company's key management personnel are the Directors. Further 
information regarding Directors' remuneration can be found in the 
Directors' remuneration report on page 42 of the full Annual Report and 
Financial Statements. 
 
 
 
 
                                                                  Year ended          Year ended 
                                                               31 December 2019    31 December 2018 
7. Tax on ordinary activities                                       GBP'000             GBP'000 
------------------------------------------------------------  ------------------  ------------------ 
UK Corporation tax payable                                            -                   - 
                                                              ------------------  ------------------ 
 
                                                                   Year ended          Year ended 
  Reconciliation of profit on ordinary activities to            31 December 2019    31 December 2018 
  taxation charge                                                   GBP'000             GBP'000 
------------------------------------------------------------  ------------------  ------------------ 
Return on ordinary activities before taxation                              1,359               7,190 
                                                              ------------------  ------------------ 
 
Tax charge on profit at the effective UK corporation 
 tax rate of 19.00% (2018: 19.00%)                                           258               1,366 
Effects of: 
Non-taxable gains                                                          (190)             (1,452) 
Non-taxable income                                                          (48)                (35) 
(Prior year excess management expenses utilised)/Unutilised 
 management expenses                                                        (20)                 121 
                                                              ------------------  ------------------ 
                                                                               -                   - 
                                                              ------------------  ------------------ 
 
 
   The tax charge for the year shown in the Income statement is lower than 
the effective rate of corporation tax in the UK of 19.00% (2018: 
19.00%). The differences are explained above. 
 
   The Company has excess management expenses of GBP11,431,000 (2018: 
GBP11,535,000) that are available for offset against future profits. A 
deferred tax asset of GBP1,943,000 (2018: GBP1,961,000) has not been 
recognised in respect of those losses as they will be recoverable only 
to the extent that the Company has sufficient future taxable profits. 
 
 
 
 
                                                            Year ended         Year ended 
                                                          31 December 2019   31 December 2018 
8. Dividends                                                  GBP'000            GBP'000 
-------------------------------------------------------  -----------------  ----------------- 
First dividend of 0.6 pence per share paid on 30 April 
 2018                                                                    -              1,842 
Second dividend of 0.6 pence per share paid on 31 
 October 2018                                                            -              1,831 
First dividend of 0.6 pence per share paid on 30 April 
 2019                                                                2,010                  - 
Second dividend of 0.6 pence per share paid on 31 
 October 2019                                                        2,005                  - 
Unclaimed dividends returned to the Company                           (36)               (33) 
                                                         -----------------  ----------------- 
                                                                     3,979              3,640 
                                                         -----------------  ----------------- 
 
 
   The Directors have declared a first dividend of 0.6 pence per share for 
the year ending 31 December 2020, which will amount to approximately 
GBP2,256,000. This dividend will be paid on 30 April 2020 to 
shareholders on the register on 14 April 2020. 
 
 
 
 
9. Basic and diluted return per share 
                                                           Year ended 31 December    Year ended 31 December 
                                                                    2019                      2018 
                                                          Revenue  Capital   Total   Revenue  Capital  Total 
--------------------------------------------------------  -------  -------  -------  -------  -------  ----- 
Profit/(loss) attributable to shareholders (GBP'000)        1,449     (90)    1,359    1,031    6,159  7,190 
Weighted average shares in issue (adjusted for treasury 
 shares)                                                         327,246,191               302,182,990 
Return/(loss) attributable per equity share (pence)          0.44   (0.02)     0.42     0.34     2.04   2.38 
 
 
   The weighted average number of Ordinary shares is calculated after 
adjusting for treasury shares of 54,723,000 (2018: 48,273,000). 
 
   There are no convertible instruments, derivatives or contingent share 
agreements in issue so basic and diluted return per share are the same. 
 
 
 
 
10. Fixed asset investments                             31 December 2019  31 December 2018 
 Summary of fixed asset investments                          GBP'000           GBP'000 
------------------------------------------------------  ----------------  ---------------- 
Investments held at fair value through profit or loss 
 Unquoted equity                                                  44,833            39,367 
Unquoted loan stock                                               19,127            21,347 
Quoted equity                                                          -               925 
                                                                  63,960            61,639 
                                                        ----------------  ---------------- 
 
 
 
 
 
 
                                                      31 December 2019  31 December 2018 
                                                           GBP'000           GBP'000 
----------------------------------------------------  ----------------  ---------------- 
Opening valuation                                               61,639            55,815 
Purchases at cost                                                6,136             5,535 
Disposal proceeds                                              (5,043)           (7,097) 
Realised gains                                                     728             1,542 
Movement in loan stock accrued income                            (147)               115 
Movement in unrealised gains                                       647             5,729 
                                                      ----------------  ---------------- 
Closing valuation                                               63,960            61,639 
                                                      ----------------  ---------------- 
Movement in loan stock accrued income 
Opening accumulated loan stock accrued income                      726               611 
Movement in loan stock accrued income                            (147)               115 
                                                      ----------------  ---------------- 
Closing accumulated loan stock accrued income                      579               726 
                                                      ----------------  ---------------- 
Movement in unrealised gains 
Opening accumulated unrealised gains                            14,973            12,106 
Transfer of previously unrealised gains to realised 
 reserve on disposal of investments                              (925)           (2,862) 
Movement in unrealised gains                                       647             5,729 
                                                      ----------------  ---------------- 
Closing accumulated unrealised gains                            14,695            14,973 
                                                      ----------------  ---------------- 
Historical cost basis 
Opening book cost                                               45,940            43,098 
Purchases at cost                                                6,136             5,535 
Sales at cost                                                  (3,390)           (2,693) 
Closing book cost                                               48,686            45,940 
                                                      ----------------  ---------------- 
 
 
   Amounts shown as cost represent the acquisition cost in the case of 
investments made by the Company and/or the valuation attributed to the 
investments acquired from other VCTs at the dates of merger, plus any 
subsequent acquisition cost. 
 
   Purchases and disposals detailed above may not agree to purchases and 
disposals in the Statement of cash flows due to restructuring of 
investments, conversion of convertible loan stock and settlement of 
receivables and payables. 
 
 
 
 
Unquoted investment valuation methodologies 
 Unquoted investments are valued in accordance with 
 the IPEV guidelines as follows: 
                                                    31 December 2019  31 December 2018 
  Valuation Methodologies                                GBP'000           GBP'000 
--------------------------------------------------  ----------------  ---------------- 
Cost and price of recent investment (reviewed for 
 impairment or uplift)                                        30,035            20,604 
Third party valuation -- Earnings multiple                    14,089            15,139 
Third party valuation -- Discounted cash flow                 11,523            11,481 
Revenue multiple                                               4,156             7,320 
Earnings multiple                                              3,926             5,002 
Net assets                                                       231               234 
Offer price                                                        -               934 
                                                              63,960            60,714 
                                                    ----------------  ---------------- 
 
 
   When using the cost or price of 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 2018 and 31 December 2019: 
 
 
 
 
Change in valuation methodology                                  Value as at  Explanatory Note 
 (2018 to 2019)                                             31 December 2019 
                                                                     GBP'000 
-------------------------------------------------------  -------------------  ------------------------ 
Revenue multiple to cost and price of recent investment                5,094  External investment 
 (reviewed for impairment)                                                    round has recently taken 
                                                                              place 
Cost and price of recent investment (reviewed for                      1,012  More appropriate 
 impairment) to revenue multiple                                              valuation methodology 
 
 
 
   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, the methods used are the most appropriate methods of 
valuation as at 31 December 2019. 
 
   FRS 102 and the SORP requires the Company to disclose the inputs to the 
valuation methods applied to its investments measured at FVTPL in a fair 
value hierarchy. The table below sets out fair value hierarchy 
definitions using FRS 102 s.11.27. 
 
 
 
 
Fair value hierarchy  Definition 
--------------------  ---------------------------------------------------- 
Level 1               The unadjusted quoted price 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 2019  31 December 2018 
Level 3 reconciliation                       GBP'000           GBP'000 
--------------------------------------  ----------------  ---------------- 
Opening valuation                                 60,714            53,770 
Purchases at cost                                  6,136             5,535 
Unrealised gains                                     647             5,886 
Movement in loan stock accrued income              (147)               115 
Realised net gains on disposal                       443             1,434 
Disposal proceeds                                (3,832)           (6,026) 
Closing valuation                                 63,960            60,714 
                                        ----------------  ---------------- 
 
 
   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. 72% of the portfolio of investments is 
based on cost, recent investment price or is loan stock, and as such the 
Board considers that the assumptions used for their valuations are the 
most reasonable. The Directors believe that changes to reasonable 
possible alternative assumptions (by adjusting the revenue and earnings 
multiples) for the valuations of the remainder of the portfolio 
companies could result in an increase in the valuation of investments by 
GBP557,000 or a decrease in the valuation of investments by GBP441,000. 
 
   For valuations based on earnings and revenue multiples, the Board 
considers that the most significant input is the price/earnings ratio; 
for valuations based on third party valuations, the Board considers that 
the most significant inputs are price/earnings ratio, discount factors 
and market value per room for care homes; which have been adjusted to 
drive the above sensitivities. 
 
   11.  Significant holdings 
 
   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 ordinarily take a controlling interest or 
become involved in the management. The size and structure of 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 Company has interests of greater than 20% of the nominal value of 
any class (some of which are non-voting) of the allotted shares in the 
portfolio companies as at 31 December 2019 as described below. The 
investments listed below are held as part of an investment portfolio and 
therefore, as permitted by FRS 102, they are measured at fair value and 
are not accounted for using the equity method. 
 
 
 
 
           Registered 
           address and                                  Number of                    % total 
           country of       (Loss)        Net assets/     shares      % class and    voting 
Company    incorporation    before tax   (liabilities)     held       share type     rights 
---------  ---------------  -----------  -------------  ----------  ---------------  ------- 
Academia                                                            23.2% Preferred 
 Inc.       CA 94108, USA           n/a            n/a     774,400           shares     3.0% 
Active 
 Lives 
 Care                                                                20.3% Ordinary 
 Limited    EC1M 5QL, UK           n/a*    (2,288,000)   1,095,430           shares    20.3% 
                                                         9,226,988  22.0% Preferred 
                                                        Preferred;    shares; 33.0% 
Antenova                                                23,419,703         Ordinary 
Limited     EC4A 3TW, UK           n/a*      2,312,000    Ordinary           shares    28.7% 
                                                           975,214   48.1% Ordinary 
Elateral                                                 Ordinary;    shares; 46.5% 
Group                                                      133,333        Preferred 
Limited     GU9 7XX, UK     (2,377,000)    (8,223,000)   Preferred           shares    47.9% 
Sift                                                                 42.1% Ordinary 
 Limited    BS1 4EX, UK       (467,000)       (59,000)  33,671,618           shares    42.1% 
 
 
   *The company files filleted accounts which does not disclose this 
information. 
 
   12.  Current assets 
 
 
 
 
 
                            31 December 2019  31 December 2018 
Current asset investments        GBP'000           GBP'000 
--------------------------  ----------------  ---------------- 
ErgoMed PLC*                               -               373 
                                           -               373 
                            ----------------  ---------------- 
 
 
   *Amounts shown represent future contingent receipts. These are valued 
using the level 3 fair value hierarchy as defined in note 10. 
 
 
 
 
 
Trade and other receivables less than one   31 December 2019  31 December 2018 
year                                             GBP'000           GBP'000 
------------------------------------------  ----------------  ---------------- 
Trade and other receivables less than one 
 year                                                    100               714 
Prepayments and accrued income                            15                17 
                                                         115               731 
                                            ----------------  ---------------- 
 
 
   The Directors consider that the carrying amount of receivables is not 
materially different to their fair value. 
 
 
 
 
                                                    31 December 2019  31 December 2018 
13. Payables: amounts falling due within one year        GBP'000           GBP'000 
--------------------------------------------------  ----------------  ---------------- 
Trade payables                                                    22                13 
Accruals                                                         464             1,059 
Other payables                                                     -                 6 
                                                                 486             1,078 
                                                    ----------------  ---------------- 
 
 
   The Directors consider that the carrying amount of payables is not 
materially different to their fair value. 
 
   14. Called up share capital 
 
 
 
 
Allotted, called up and fully paid                            GBP'000 
------------------------------------------------------------  ------- 
351,855,773 Ordinary shares of 1 penny each at 31 
 December 2018                                                  3,519 
36,479,487 Ordinary shares of 1 penny each issued 
 during the year                                                  364 
------------------------------------------------------------  ------- 
388,335,260 Ordinary shares of 1 penny each at 31 
 December 2019                                                  3,883 
------------------------------------------------------------  ------- 
 
48,273,000 Ordinary shares of 1 penny each held in 
 treasury at 31 December 2018                                   (483) 
6,450,000 Ordinary shares purchased during the year 
 to be held in treasury                                          (64) 
------------------------------------------------------------  ------- 
54,723,000 Ordinary shares of 1 penny each held in 
 treasury at 31 December 2019                                   (547) 
------------------------------------------------------------  ------- 
 
333,612,260 Ordinary shares of 1 penny each in circulation* 
 at 31 December 2019                                            3,336 
------------------------------------------------------------  ------- 
 
 
   *Carrying one vote each 
 
   During the year the Company purchased 6,450,000 Ordinary shares (2018: 
5,502,000) representing 1.7% of the issued Ordinary share capital as at 
31 December 2019, at a cost of GBP1,367,000 (2018: GBP1,145,000), 
including stamp duty, to be held in treasury. The Company holds a total 
of 54,723,000 Ordinary shares in treasury, representing 14.1% of the 
issued Ordinary share capital as at 31 December 2019. 
 
   Under the terms of the Dividend Reinvestment Scheme, Circular dated 19 
April 2011, the following new Ordinary shares of nominal value 1 penny 
per share were allotted during the year: 
 
 
 
 
                                               Aggregate 
                                                 nominal 
                                                  value 
                                                of shares     Issue price      Net invested  Opening market price on allotment date 
Date of allotment   Number of shares allotted   (GBP'000)   (pence per share)    (GBP'000)              (pence per share) 
------------------  -------------------------  ----------  ------------------  ------------  -------------------------------------- 
 
30 April 2019                       1,127,911          11               22.18           248                                   21.00 
31 October 2019                     1,107,354          11               21.93           241                                   21.10 
                                               ---------- 
 
                                    2,235,265          22                               489 
                    -------------------------  ----------                      ------------ 
 
 
   During the period from 1 January 2019 to 31 December 2019, the Company 
issued the following new Ordinary shares of nominal value 1 penny each 
under the Albion VCT Prospectus Top Up Offers 2018/19: 
 
 
 
 
                                      Aggregate 
                                        nominal 
                                         value 
                    Number of shares   of shares     Issue price        Net consideration received  Opening market price on allotment date 
Date of allotment       allotted       (GBP'000)   (pence per share)            (GBP'000)                      (pence per share) 
------------------  ----------------  ----------  ------------------  ----------------------------  -------------------------------------- 
 
1 April 2019               4,206,012          42               23.20                           961                                   21.60 
1 April 2019                 943,355           9               23.30                           216                                   21.60 
1 April 2019              21,793,720         218               23.40                         4,972                                   21.60 
5 April 2019               5,377,583          54               23.40                         1,227                                   21.00 
12 April 2019                511,635           5               22.60                           114                                   21.00 
12 April 2019                124,228           1               22.70                            28                                   21.00 
12 April 2019              1,287,689          13               22.80                           286                                   21.00 
                          34,244,222         342                                             7,804 
                    ----------------  ----------                      ---------------------------- 
 
   15.  Basic and diluted net asset value per share 
 
   The basic and diluted net asset value per share as at 31 December 2019 
of 22.02 pence (2018: 22.78 pence) are based on net assets of 
GBP73,456,000 (2018: GBP69,150,000) divided by the 333,612,260 shares in 
issue (adjusted for treasury shares) at that date (2018: 303,582,773). 
 
   16. Capital and financial instruments risk management 
 
   The Company's capital comprises Ordinary shares as described in note 14. 
The Company is permitted to buy back its own shares for cancellation or 
treasury purposes and this policy is described in more detail in the 
Chairman's statement. 
 
   The Company's financial instruments comprise equity and loan stock 
investments in unquoted and quoted companies, cash balances and liquid 
cash instruments and short term receivables and payables which arise 
from its operations. The main purpose of these financial instruments is 
to generate cash flow, 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 financial instrument risks arising from the Company's 
operations are: 
 
 
   -- investment (or market) risk (which comprises investment price, foreign 
      currency on investments 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 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 in its portfolio in unquoted 
and quoted investments, details of which are shown on pages 22 and 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 fair 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 GBP63,960,000 (2018: 
GBP61,639,000). Fixed asset investments form 87% of the net asset value 
as at 31 December 2019 (2018: 89%). 
 
   More details regarding the classification of fixed asset investments are 
shown in note 10. 
 
   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. As a 
venture capital trust the Company invests in unquoted companies in 
accordance with the investment policy. 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 sectors in which 
the Company is currently invested are shown in the pie chart at the end 
of this announcement. 
 
   As required under FRS 102 the Board is required to illustrate by way of 
a sensitivity analysis the degree of exposure to market risk. The Board 
considers that the value of the fixed asset investment portfolio is 
sensitive to a change of between 15% to 30% based on the current 
economic climate. The impact of a 15% to 30% change has been selected as 
a range which is considered reasonable given the current level of 
volatility observed both on a historical basis and future expectations. 
 
   At the lower end of the range, the sensitivity of a 15% 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 GBP9,594,000. At the higher 
end of the range, the sensitivity of a 30% 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 GBP19,188,000. 
 
   Foreign currency risk 
 
   Foreign currency risk is the risk of exposure to movements in foreign 
exchange rates relative to Sterling. 
 
   The majority of the Company's assets are denominated in Sterling; 
however, the Company is exposed to foreign currency risk through its 
investments with operations outside the UK. No hedging of the currency 
exposure is currently undertaken.  The Manager monitors the Company's 
exposure and reports to the Board on a regular basis. 
 
   Payments and receipts in currencies other than Sterling are converted 
into Sterling on or shortly after the date of investment or receipt of 
revenue as are any proceeds from the disposal of a foreign currency 
investment. 
 
   Interest rate risk 
 
   The Company is exposed to fixed and floating rate interest rate risk on 
its financial assets. On the basis of the Company's analysis, it is 
estimated that a rise of 1% in all interest rates would have increased 
total return before tax for the year by approximately GBP86,000 (2018: 
GBP105,000). Furthermore, it is considered that a fall of 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 fixed asset investments during the year was approximately 
10.2% (2018: 8.6%). The weighted average period to maturity for the 
fixed rate fixed asset investments is approximately 8.4 years (2018: 5.2 
years). 
 
   The Company's financial assets and liabilities, denominated in Sterling, 
consist of the following: 
 
 
 
 
                                       31 December 2019                                                     31 December 2018 
                                    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                          -              -                44,833    44,833                     -              -                39,367    39,367 
Quoted 
 equity                          -              -                     -         -                     -              -                   925       925 
Unquoted 
 loan stock                 17,877            609                   641    19,127                20,161            636                   550    21,347 
Current 
 asset 
 investments                     -              -                     -         -                     -              -                   373       373 
Receivables 
 *                               -              -                   101       101                     -              -                   716       716 
Current 
 liabilities                     -              -                 (486)     (486)                     -              -               (1,078)   (1,078) 
Cash                             -          9,867                     -     9,867                     -          7,485                     -     7,485 
              --------------------  -------------  --------------------  --------  --------------------  -------------  --------------------  -------- 
Total net 
 assets                     17,877         10,476                45,089    73,442                20,161          8,121                40,853    69,135 
              --------------------  -------------  --------------------  --------  --------------------  -------------  --------------------  -------- 
 
 
   * 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 instruments prior to 
investment and as part of its ongoing monitoring of investments. For 
investments made prior to 6 April 2018, which account for 96 per cent. 
of loan stock value, typically loan stock instruments will have a fixed 
or floating charge, which may or may not be subordinated, 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 2019 was limited to 
GBP19,127,000 (2018: GBP21,347,000) of unquoted loan stock instruments, 
GBP9,867,000 (2018: GBP7,485,000) cash on deposit with banks and 
GBP115,000 (2018: GBP714,000) of other receivables. 
 
   As at the Balance sheet date, cash and liquid investments held by the 
Company are held with the National Westminster Bank plc, Scottish Widows 
Bank plc (part of Lloyds Banking Group plc), and Barclays Bank plc. 
Credit risk on cash transactions is mitigated by transacting with 
counterparties that are regulated entities subject to regulatory 
supervision, with high credit ratings assigned by international 
credit-rating agencies. 
 
   The credit profile of unquoted loan stock is described under liquidity 
risk below. 
 
   Liquidity risk 
 
   Liquid assets are held as cash on current account, deposit or short term 
money market accounts or similar instruments.  Under the terms of its 
Articles, the Company has the ability to borrow an amount equal to its 
adjusted capital and reserves of the latest published audited Balance 
sheet, being GBP71,200,000 (2018: GBP67,329,000). As at 31 December 
2019, the Company had no actual short term or long term gearing (2018: 
GBPnil). The Directors do not currently have any intention to utilise 
gearing. 
 
   The Company has no committed borrowing facilities as at 31 December 2019 
(2018: GBPnil) and had cash of GBP9,867,000 (2018: GBP7,485,000). The 
Company had no investment commitments as at 31 December 2019 (2018: 
GBPnil). 
 
   There are no externally imposed capital requirements other than the 
minimum statutory share capital requirements for public limited 
companies. 
 
   The main cash outflows are for new investments, the 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. The Company's financial 
liabilities at 31 December 2019 are short term in nature and total 
GBP486,000 (2018: GBP1,078,000). 
 
   The carrying value of loan stock investments analysed by expected 
maturity dates is as follows: 
 
 
 
 
                                31 December 2019                                          31 December 2018 
Redemption   Fully performing  Past due  Valued below cost   Total          Fully        Past due  Valued below cost   Total 
date              GBP'000       GBP'000       GBP'000        GBP'000  performingGBP'000   GBP'000       GBP'000        GBP'000 
-----------  ----------------  --------  -----------------  --------  -----------------  --------  -----------------  -------- 
Less than 
 one year               6,100       265                102     6,467              3,655     2,492                120     6,267 
1-2 years               2,233         -                  -     2,233                835         -                279     1,114 
2-3 years               1,528         -                 61     1,589              1,103     1,262                  -     2,365 
3-5 years                 347     1,362                123     1,832              1,972     1,622                175     3,769 
5 + years               6,824       154                 28     7,006              6,807     1,025                  -     7,832 
             ----------------  --------  -----------------  --------  -----------------  --------  -----------------  -------- 
Total                  17,032     1,781                314    19,127             14,372     6,401                574    21,347 
             ----------------  --------  -----------------  --------  -----------------  --------  -----------------  -------- 
 
   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 valued 
below cost is GBP517,000 (2018: GBP676,000). 
 
 
 
   In view of the factors identified above, the Board considers that the 
Company is subject to low liquidity risk. 
 
   Fair values of financial assets and financial liabilities 
 
   All of the Company's financial assets and liabilities as at 31 December 
2019 are stated at fair value as determined by the Directors, except for 
receivables, payables and cash which are held at amortised cost. There 
are no financial liabilities other than short term trade and other 
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 and that the Company is subject to low 
financial risk as a result of having nil gearing and positive cash 
balances. 
 
   17.  Commitments, contingencies and guarantees 
 
   As at 31 December 2019, the Company had no financial commitments (2018: 
GBPnil). 
 
   There were no contingent liabilities or guarantees given by the Company 
as at 31 December 2019 (2018: GBPnil). 
 
   18.  Post balance sheet events 
 
   Since the year end, the Company made the following investments: 
 
   --Investment of GBP308,000 in a new portfolio company, Concirrus 
Limited. 
 
   Since the Company's year end the world has been plunged into a 
healthcare emergency the possible extent of which cannot yet be 
assessed. This will likely have an adverse impact on the market 
multiples used when valuing portfolio companies and will impact on our 
own forecasting models.  More details on this can be found in the 
Chairman's statement. 
 
   The following new Ordinary shares of nominal value 1 penny each were 
allotted under the Albion VCTs Prospectus Top Up Offers 2019/20 after 31 
December 2019: 
 
 
 
 
                        Aggregate 
             Number of   nominal                                  Net 
   Date of      shares  value of                             consideration 
 allotment    allotted   shares      Issue price (pence per    received       Opening market price on allotment date 
                         GBP'000            share)              GBP'000                (pence per share) 
----------  ----------  ---------  ------------------------  -------------  ---------------------------------------- 
31 January 
      2020   5,082,101         51                      22.4          1,121                                     21.10 
31 January 
      2020   1,019,398         10                      22.5            225                                     21.10 
31 January 
      2020  36,336,304        363                      22.7          8,042                                     21.10 
            42,437,803        424                                    9,388 
            ----------  ---------                            ------------- 
 
 
 
   19.  Related party transactions 
 
   Other than transactions with the Manager as disclosed in note 4, there 
are no related party transactions or balances requiring disclosure. 
 
   20. 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 2019 and 31 December 
2018, 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 2019, 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. 
 
   21. Publication 
 
   The full audited Annual Report an 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=UUq8Gf7aiNFTSYkDd3n7dKYftmTfAzESDUlPNBMX4AjuKEEfbjvW7yhtLvirgHg00Of8evgp4VxAP1ksbTz7NM0bpdnzZ9dtXKyzVvPv_6CZW8FnG2p7BI8rw10Uu_G4R3OvPhN86c9NdCtbkkAEsgQHh23ttwXUfffgv5hKLPw= 
www.albion.capital/funds/KAY/31Dec2019.pdf. 
 
 
 
   Attachment 
 
 
   -- Split of Portfolio by sector, stage of investment and number of employees 
      https://ml-eu.globenewswire.com/Resource/Download/51012417-f804-4465-b256-e9de61e87f54 
 
 
 
 
 
 
 

(END) Dow Jones Newswires

March 26, 2020 14:48 ET (18:48 GMT)

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

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