TIDMAAVC
This is an update of the announcement from 13:05 27.06.2017 BST. Reason
for the update: Other information and Publication information added to
the notes at the end of the announcement.
Albion Venture Capital Trust PLC
LEI number: 213800JKELS32V2OK421
As required by the UK Listing Authority's Disclosure and Transparency
Rules 4.1 and 6.3, Albion Venture Capital Trust PLC today makes public
its information relating to the Annual Report and Financial Statements
for the year ended 31 March 2017.
This announcement was approved for release by the Board of Directors on
27 June 2017.
This announcement has not been audited.
You will shortly be able to view the Annual Report and Financial
Statements for the year to 31 March 2017 (which have been audited) at
www.albion.capital/funds/AAVC. The Annual Report and Financial
Statements for the year to 31 March 2017 will be available as a PDF
document via a link in the 'Financial Reports and Circulars' section.
The information contained in the Annual Report and Financial Statements
will include information as required by the Disclosure and Transparency
Rules, including Rule 4.1.
Investment objective and policy
The investment strategy of Albion Venture Capital Trust PLC (the
"Company") is to manage the risk normally associated with investments in
smaller unquoted companies whilst maintaining an attractive yield,
through allowing investors the opportunity to participate in a balanced
portfolio of asset-backed businesses. The Company's investment portfolio
will thus be structured to provide a balance between income and capital
growth for the longer term.
This is achieved as follows:
-- qualifying unquoted investments are predominantly in specially-formed
companies which provide a high level of asset backing for the capital
value of the investment;
-- the Company invests alongside selected partners with proven experience in
the sectors concerned;
-- investments are normally structured as a mixture of equity and loan
stock. The loan stock represents the majority of the finance provided and
is secured on the assets of the portfolio company. Funds managed or
advised by Albion Capital Group LLP typically own 50 per cent. of the
equity of the portfolio company;
-- other than the loan stock issued to funds managed or advised by Albion
Capital Group LLP, portfolio companies do not normally have external
borrowings.
The Company offers tax-paying investors substantial tax benefits at the
time of investment, on payment of dividends and on the ultimate disposal
of the investment.
As defined by the Articles of Association, the Company's maximum
exposure in relation to gearing is restricted to 10 per cent. of the
adjusted share capital and reserves. The Directors do not currently have
any intention to utilise gearing for the Company.
Background to the Company
The Company is a venture capital trust which raised a total of GBP39.7
million through an issue of Ordinary shares in the spring of 1996 and
through an issue of C shares in the following year. The C shares merged
with the Ordinary shares in 2001. The Company has raised a further
GBP26.9 million under the Albion VCTs Top Up Offers since 2011.
On 25 September 2012, the Company acquired the assets and liabilities of
Albion Prime VCT PLC ("Prime") in exchange for new shares in the
Company. Each Prime shareholder received 0.8801 shares in the Company
for each Prime share that they held at the date of the Merger.
Financial calendar
Record date for first dividend 7 July 2017
Payment of first dividend 31 July 2017
Annual General Meeting 11:00am on 14 August
2017
Announcement of half-yearly results for the six months December 2017
ended 30 September 2017
Payment of second dividend (subject to Board approval) 31 January 2018
Financial highlights
8.7p Basic and diluted total return per share for the year
ended 31 March 2017
5.0p Total tax-free dividend per share paid during the
year ended 31 March 2017
75.4p Net asset value per share as at 31 March 2017
220.2p Total shareholder return since launch to 31 March
2017
7.4% Tax free yield on share price (dividend per annum/share
price as at 31 March 2017)
6.4% Annualised return since launch (without tax relief)
31 March 2017 31 March 2016
(pence per share) (pence per share)
Dividends paid 5.0 5.0
Revenue return 1.9 2.0
Capital return 6.8 3.6
Net asset value 75.4 72.0
Total shareholder return to 31 March 2017 Ordinary shares
Total dividends paid during the year ended : 31 March
1997 2.00
31 March 1998 5.20
31 March 1999 11.05
31 March 2000 3.00
31 March 2001 8.55
31 March 2002 7.60
31 March 2003 7.70
31 March 2004 8.20
31 March 2005 9.75
31 March 2006 11.75
31 March 2007 10.00
31 March 2008 10.00
31 March 2009 10.00
31 March 2010 5.00
31 March 2011 5.00
31 March 2012 5.00
31 March 2013 5.00
31 March 2014 5.00
31 March 2015 5.00
31 March 2016 5.00
31 March 2017 5.00
Total dividends paid to 31 March 2017 144.80
Net asset value as at 31 March 2017 75.40
Total shareholder return to 31 March 2017 220.20
The financial summary above is for the Company, Albion Venture Capital
Trust PLC Ordinary shares only. Details of the financial performance of
the C shares and Albion Prime VCT PLC, which have been merged into the
Company, can be found at the end of this report.
In addition to the dividends summarised above, the Board has declared a
first dividend for the year ending 31 March 2018 of 2.5 pence per share
to be paid on 31 July 2017 to shareholders on the register on 7 July
2017.
Notes
-- Dividends paid before 5 April 1999 were paid to qualifying shareholders
inclusive of the associated tax credit. The dividends for the year to 31
March 1999 were maximised in order to take advantage of this tax credit.
-- All dividends paid by the Company are paid free of income tax to
qualifying shareholders. It is an H.M. Revenue & Customs requirement that
dividend vouchers indicate the tax element should dividends have been
subject to income tax. Investors should ignore this figure on their
dividend voucher and need not disclose any income they receive from a VCT
on their tax return.
-- The net asset value of the Company is not its share price as quoted on
the official list of the London Stock Exchange. The share price of the
Company can be found in the Investment Companies - VCTs section of the
Financial Times on a daily basis. Investors are reminded that it is
common for shares in VCTs to trade at a discount to their net asset
value.
Chairman's statement
Introduction
The results for the year to 31 March 2017 show a total return of 8.7
pence per share, against 5.6 pence per share for the previous year, and
net assets of 75.4 pence per share compared to 72.0 pence per share at
31 March 2016, following the payment of total tax-free dividends of 5
pence per share.
It is encouraging that the Company's total return continues for the
third year to more than cover its dividend of 5 pence per share. This
has been partly through an increase in the income generated by the
investment portfolio, which has risen 12 per cent. from the previous
year. The principal element, however, has come from capital uplifts; in
particular the uplift in the third party valuations of our care homes.
Investment performance and progress
In general, we have been continuing the task of repositioning the
portfolio, aimed at a reduced reliance on sectors that are exposed to
the consumer and business cycle. Healthcare now accounts for 35 per
cent. of the portfolio, renewable energy accounts for 17 per cent.,
while education continues to account for 7 per cent.. Hotels, meanwhile,
have reduced from 23 per cent. to 18 per cent..
Taking these sectors in turn, Shinfield View, Reading, which is one of
our three care homes, opened in April 2016. Active Lives Care (trading
as Cumnor Hill House), which is based in Oxford, opened in June 2016;
and Ryefield Court, based in Hillingdon in West London, opened in July
2016. All three care homes are building towards good levels of occupancy,
at rates significantly higher than originally forecast, leading to
pleasing uplifts in the independent third party valuations.
Our renewable energy investments are now mature, other than our biogas
plant, Earnside Energy, which is currently expanding its capacity. In
general, it is intended to hold these cash-generative investments for
the longer term with the aim of providing low risk diversification for
the investment portfolio as a whole, combined with a strong source of
income.
In education, Radnor House Twickenham now has over 400 pupils while
pupil numbers at Radnor House Sevenoaks, formerly Combe Bank School,
have already reached 300.
We continue to review our hotel portfolio with a view to reducing our
exposure further. Trading at the Holiday Inn Express at Stansted Airport
has been strong, but the valuation has been reduced in light of a new,
competing, hotel opening in the summer. Trading at the Crown hotel in
Harrogate has been similar to prior year while the Stanwell Hotel has
continued to face challenges.
With regard to our pubs, our portfolio of units in the North West,
within Bravo Inns and Bravo Inns II, continues to expand its operations.
Meanwhile The Charnwood Pub Company (renamed MHS 1 Limited) completed
the disposal of its pub portfolio. After the year end The Weybridge Club
Limited (renamed TWCL Limited) sold the assets of its business.
Results and dividends
As at 31 March 2017, the net asset value was GBP65.5 million or 75.4
pence per share, compared to GBP57.0 million or 72.0 pence per share as
at 31 March 2016, after the payment of total tax-free dividends of 5
pence per share. The results comprised a total return of 8.7 pence per
share for the year (2016: 5.6 pence per share), which is made up of a
1.9 pence per share revenue return (2016: 2.0 pence per share) and a 6.8
pence per share capital return (2016: 3.6 pence per share). The revenue
return before taxation was GBP1.8 million compared to GBP1.7 million for
the year to 31 March 2016. The Company will pay a first dividend of 2.5
pence per share for the year ending 31 March 2018 on 31 July 2017 to
shareholders on the register on 7 July 2017, which is in line with the
Company's current objective of paying a dividend of 5 pence per share
annually. Thereafter, it is intended that payment of the next dividend
will be made at the end of January 2018, which was previously paid to
shareholders in December.
Risks and uncertainties
The outlook for the UK economy, continues to be the key risk affecting
your Company. The forthcoming withdrawal from the European Union may
have an effect on the Company and its investments, although the extent
of the effect is not quantifiable at this time. However, we would expect
the effect to be felt most in those sectors which are most exposed to
the consumer and business cycle.
The regulatory environment in which the Company operates has had
significant input from rules developed within the European Union and it
is uncertain what changes may occur in a separate UK regulatory
environment.
The Company's policy remains that its portfolio companies should not
normally have external borrowings and for the Company normally to have a
first charge over portfolio companies' assets. The Board and the Manager
see this as an important factor in the control of investment risk.
However, certain portfolio companies may take on external borrowings,
where the Board considers this will offer a significant benefit to the
Company.
A detailed analysis of the other risks and uncertainties facing the
business is set out in the Strategic report below.
Board composition
As you may know, I have been chairman of your Company since its launch
in 1996 and I have indicated to the Board that I intend to retire at the
Annual General Meeting in August 2018. Ebbe Dinesen has indicated that
he would also like to retire, at the Annual General Meeting in 2019. The
nomination committee is therefore in the process of reviewing candidates
and announcements of replacements will be made in due course. We believe
that it will be helpful to have some overlap of new directors joining
the Board before we retire. To facilitate this, a resolution will be
proposed at the Annual General Meeting to raise the aggregate annual
limit for total Directors' fees to GBP150,000, which will facilitate
increasing the Board's size but will not be used to increase the
individual Director's fees.
Albion VCTs Top Up Offers
The Company raised approximately GBP0.3 million during the year under
the Albion VCTs Prospectus Top Up Offers 2015/2016 and approximately
GBP5.6 million under the Albion VCTs Prospectus Top Up Offers 2016/2017,
with a subsequent GBP0.3 million after the year end.
The Company announced on 14 June 2017 that, subject to regulatory
approval, it intends to launch a prospectus top up offer of new ordinary
shares for subscription in the 2017/2018 and 2018/2019 tax years. Full
details of the Offer will be contained in a prospectus that is expected
to be published in early September 2017 and will be available on the
Albion Capital website (www.albion.capital).
Share buy-backs
It remains the Board's primary objective to maintain sufficient
resources for investment in existing and new portfolio companies and for
the continued payment of dividends to shareholders. Thereafter, it is
still the Board's policy to buy back shares in the market, subject to
the overall criterion that such purchases are in the Company's interest.
The total value bought in for the year ended 31 March 2017 was
GBP873,000. Subject to the constraints referred to above and subject to
first purchasing shares held by the market makers, the Board will target
such buy-backs to be in the region of a 5 per cent. discount to net
asset value, so far as market conditions and liquidity permit.
Continuation as a venture capital trust
At the 2017 Annual General Meeting shareholders have the opportunity to
confirm that they wish the Company to continue as a venture capital
trust. Otherwise 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 been using their investment in the VCT to
defer a capital gain 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 the Albion VCTs have the potential to be highly
effective long-term investment vehicles, 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, as they
intend to vote in respect of their own shares. Further details regarding
the resolution can be found in the Directors' report on page 23 of the
full Annual Report and Financial Statements.
Outlook and prospects
We are pleased with the progress made during the course of the year, in
particular the building up of our healthcare portfolio. Looking forward,
there are a number of interesting areas for investment in the pipeline
and we would anticipate further progress in the current year.
David Watkins
Chairman
27 June 2017
Strategic report
Investment objective and policy
The Company's investment policy is to provide investors with the
opportunity to participate in a balanced portfolio of asset-backed
businesses. The Company's investment portfolio will thus be structured
to provide a balance between income and capital growth for the longer
term.
This is achieved as follows:
-- qualifying unquoted investments are predominantly in specially-formed
companies which provide a high level of asset backing for the capital
value of the investment;
-- the Company invests alongside selected partners with proven experience in
the sectors concerned;
-- investments are normally structured as a mixture of equity and loan
stock. The loan stock normally represents the majority of the finance
provided and is secured on the assets of the portfolio company. Funds
managed or advised by Albion Capital Group LLP typically own 50 per cent.
of the equity of the portfolio company; and
-- other than the loan stock issued to funds managed or advised by Albion
Capital Group LLP, portfolio companies do not normally have external
borrowings.
As defined by the Articles of Association, the Company's maximum
exposure in relation to gearing is restricted to 10 per cent. of the
adjusted share capital and reserves. The Directors do not currently have
any intention to utilise gearing for the Company.
Current portfolio sector allocation
The pie chart at the end of this announcement shows the split of the
portfolio valuation by industrial or commercial sector as at 31 March
2017. Details of the principal investments made by the Company are shown
in the Portfolio of investments on pages 16 and 17 of the full Annual
Report and Financial Statements.
Direction of portfolio
The sector analysis of the Company's investment portfolio shows that
healthcare now accounts for 35 per cent. of the portfolio, compared to
22 per cent. at the end of the previous financial year, following
further investments in the Company's three care homes and GBP6.8 million
uplift in valuations. This may increase further as the care homes
approach maturity and are revalued in the future. Renewable energy
accounts for 17 per cent. of the portfolio, but no new investments are
being made in this sector as they are no longer allowed under VCT rules.
Hotels accounted for 18 per cent. compared to 23 per cent. at the
previous year end and the Company is looking to reduce this further.
Results and dividends
Ordinary shares
GBP'000
Net revenue return for the year ended 31 March 2017 1,510
Net capital gain for the year ended 31 March 2017 5,501
Total return for the year ended 31 March 2017 7,011
Dividend of 2.5 pence per share paid on 29 July 2016 (1,987)
Dividend of 2.5 pence per share paid on 30 December
2016 (1,986)
Unclaimed dividends returned to the Company 9
Transferred to reserves 3,047
Net assets as at 31 March 2017 65,475
Net asset value per share as at 31 March 2017 (pence) 75.4
The Company paid dividends totalling 5.0 pence per share during the year
ended 31 March 2017 (2016: 5.0 pence per share). The dividend objective
of the Board is to provide Shareholders with a strong, predictable
dividend flow, with a dividend target of 5.0 pence per share per year.
As noted in the Chairman's statement, the Board has declared a first
dividend of 2.5 pence per share for the year ending 31 March 2018. This
dividend will be paid on 31 July 2017 to shareholders on the register on
7 July 2017.
As shown in the Income statement, the Company's investment income has
increased to GBP2,381,000 (2016: GBP2,236,000) and the total revenue
return to equity holders also increased to GBP1,510,000 (2016:
GBP1,403,000), principally driven by the Company's successful renewable
energy development programme. Income continues to more than cover
on-going expenses. Although total income has increased, revenue return
per share has decreased slightly, to 1.9 pence per share (2016: 2.0
pence per share), due to the number of new shares issued during the
year. The capital gain on investments for the year was GBP6,179,000
(2016: GBP3,203,000), offset by management fees charged to capital and
the related taxation impact, resulting in a capital return of 6.8 pence
per share (2016: 3.6 pence per share). The total return was 8.7 pence
per share (2016: 5.6 pence per share).
The Balance sheet shows that the net asset value has increased over the
last year to 75.4 pence per share (2016: 72.0 pence per share),
reflecting the total return exceeding the level of dividends paid during
the year.
The cash flow for the Company has been a net inflow of GBP166,000 for
the year (2016: inflow GBP1,328,000), reflecting cash inflows from
operations, disposal proceeds and the issue of Ordinary shares under the
Albion VCTs Top Up Offers, offset by dividends paid, new investments in
the year and the buy-back of shares.
During the year, unclaimed dividends older than twelve years of GBP9,000
(2016: GBP22,000) were returned to the Company in accordance with the
terms of the Articles of Association.
Review of business and future changes
A review of the Company's business during the year and investment
performance and progress is contained in the Chairman's statement above.
The healthcare sector performed particularly well again this year with
an increase in valuations of GBP6,791,000 (2016: GBP1,517,000). After
strong increases in previous years, the renewable energy sector saw
modest increases overall. The hotel sector saw a decrease of GBP944,000
(2016: GBP524,000 uplift) principally as a result of caution in the
light of new competition for our hotel at Stansted Airport. The
education sector saw an increase in valuation of GBP618,000 (2016:
GBP337,000) as Radnor House Sevenoaks boosted pupil numbers. TWCL
Limited (previously The Weybridge Club Limited) decreased in valuation
by GBP145,000 which subsequently sold its business and assets after the
year end.
The Company continues with its objective to invest in asset-based
unquoted companies throughout the United Kingdom, with a view to
providing both capital growth and a reliable dividend income to
shareholders over the longer term. The Directors do not foresee any
major changes in the activity undertaken by the Company in the current
year.
Details of significant events which have occurred since the end of the
financial year are listed in note 19. Details of transactions with the
Manager are shown in note 5.
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
21 of the full Annual Report and Financial Statements.
To comply with EU State aid obligations, rules were introduced under the
Finance Act (No.2) 2015 and Finance Act 2016, which include:
-- Restrictions over the age of investments;
-- A prohibition on management buyouts or the purchase of existing
businesses;
-- An overall lifetime investment cap of GBP12 million from tax-advantaged
funds into any portfolio company; and
-- A VCT can only make qualifying investments or certain specified
non-qualifying investments such as money market securities and short term
deposits.
While these changes were significant, the Manager's assessment is that
had they been in place previously they would have affected only a
relatively small minority of the investments that we have made into new
portfolio companies over recent years. The Board's current view is that
there will be no material change in our investment policy as a result.
The relevant tests to measure compliance have been carried out and
independently reviewed for the year ended 31 March 2017. These showed
that the Company has complied with all tests and continues to do so.
Future prospects
The Company's performance record reflects the resilience of the strategy
outlined above and has enabled the Company to maintain a predictable
stream of dividend payments to shareholders. The Board believes that
this model will continue to meet the investment objective and has the
potential to deliver attractive returns to shareholders in the future.
Key performance indicators
The Directors believe that the following key performance indicators,
which are typical for venture capital trusts and used by the Board in
its assessment of the Company, will provide shareholders with sufficient
information to assess how effectively the Company is applying its
investment policy to meet its objective. The Directors are satisfied
that the results shown in the following key performance indicators 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 returnThe
graph on page 4 of the full Annual Report and Financial Statements shows
the Company's total shareholder return against the FTSE All-Share Index
total return, in both instances with dividends reinvested.
2. Net asset value per share and total shareholder returnNet asset value
increased by 11.7 per cent. (after adding back the 5.0 pence per share in
dividends paid) to 75.4 pence per share for the year ended 31 March
2017.Total shareholder return increased by 4.0 per cent. to 220.2 pence
per share for the year ended 31 March 2017.
3. Dividend distributionsDividends paid in respect of the year ended 31
March 2017 were 5.0 pence per share (2016: 5.0 pence per share), in line
with the Board's dividend objective. Cumulative dividends paid since
inception amount to 144.8 pence per Ordinary share and 133.25 pence per
historic C share.
4. Ongoing charges The ongoing charges ratio for the year to 31 March 2017
was 2.4 per cent. (2016: 2.5 per cent.). 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 per cent. The cap on
total annual normal expenses, including the management fee, is 3.0 per
cent. of the net asset value.
Gearing
As defined by the Articles of Association, the Company's maximum
exposure in relation to gearing is restricted to 10 per cent. of the
adjusted share capital and reserves. The Directors do not currently have
any intention to utilise gearing for the Company. On an exceptional
basis, certain portfolio companies may take on external borrowings,
where the Board considers this will offer a significant benefit to the
Company.
Operational arrangements
The Company has delegated the investment management of the portfolio to
Albion Capital Group LLP, which is authorised and regulated by the
Financial Conduct Authority. Albion Capital Group LLP also provides
company secretarial and other accounting and administrative support to
the Company.
Management agreement
Under the Management agreement, the Manager provides investment
management, secretarial and administrative services to the Company. The
Management agreement can be terminated by either party on 12 months'
notice. The Management agreement is subject to earlier termination in
the event of certain breaches or on the insolvency of either party. The
Manager is paid an annual fee equal to 1.9 per cent. of the net asset
value of the Company, and an annual secretarial and administrative fee
of GBP48,711 (2016: GBP48,087) increased annually by RPI. These fees
are payable quarterly in arrears.
In line with common practice, the Manager is also entitled to an
arrangement fee, payable by each portfolio company, of approximately 2
per cent. on each investment made and any applicable monitoring fees.
Management performance incentive
In order to provide the Manager with an incentive to maximise the return
to investors, the Company has entered into a management performance
incentive arrangement with the Manager. Under the incentive arrangement,
the Company will pay an incentive fee to the Manager of an amount equal
to 8 per cent. of the excess total return above 5 per cent. per annum,
paid out annually in cash as an addition to the management fee. Any
shortfall of the target return will be carried forward into subsequent
periods and the incentive fee will only be paid once all previous and
current target returns have been met.
For the year to 31 March 2017, no incentive fee became due to the
Manager (2016: GBPnil).
No further performance fee will become due until the hurdle rate
comprising net asset value, plus dividends from 31 March 2004, has been
reached. As of 31 March 2017 the total return from 31 March 2004
amounted to 166.9 pence per share which compared to the hurdle of 213.3
pence per share at that date.
Investment and co-investment
The Company co-invests with other venture capital trusts and funds
managed by Albion Capital Group LLP. Allocation of investments is on the
basis of an allocation agreement which is based, inter alia, on the
ratio of funds available for investment.
Evaluation of the Manager
The Board has evaluated the performance of the Manager based on the
returns generated by the Company, the continued compliance under venture
capital trust legislation, the long term prospects of current
investments, a review of the 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 has appointed Albion Capital Group LLP as the Company's AIFM
as required by the AIFMD.
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 policies in these matters and as such these requirements do not
apply.
Further policies
The Company has adopted a number of further policies relating to:
-- Environment
-- Global greenhouse gas emissions
-- Anti-bribery
-- Diversity
and these are set out in the Directors' report on pages 21 and 22 of the
full Annual Report and Financial Statements.
Risk management
The Board carries out a robust assessment of principal risks in which
the Company operates. 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 assets, which To reduce this risk, the Board places reliance upon
and could reduce the capital and income returns to shareholders, the skills and expertise of the Manager and its track
performance and could negatively impact on the Company's current record over many years of making successful investments
risk and future valuations. in this segment of the market. In addition, the Manager
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 fragile than larger, long established businesses. comprising investment professionals from the Manager
and at least one external investment professional.
The Manager also invites and takes account of comments
from non-executive Directors of the Company on investments
discussed at the Investment Committee meetings. Investments
are actively and regularly monitored by the Manager
(investment managers normally sit on portfolio company
boards), including the level of diversification in
the portfolio, and the Board receives detailed reports
on each investment as part of the Manager's report
at quarterly board meetings.
Valuation The Company's investment valuation methodology is As described in note 2 of the Financial Statements,
risk reliant on the accuracy and completeness of information the investments held by the Company are classified
that is issued by portfolio companies. In particular, at fair value through profit or loss and valued in
the Directors may not be aware of or take into account accordance with the International Private Equity and
certain events or circumstances which occur after Venture Capital Valuation Guidelines. These guidelines
the information issued by such companies is reported. set out recommendations, intended to represent current
best practice on the valuation of venture capital
investments. These investments are valued on the basis
of forward looking estimates and judgements about
the business itself, its market and the environment
in which it operates, together with the state of the
mergers and acquisitions market, stock market conditions
and other factors. In making these judgements the
valuation takes into account all known material facts
up to the date of approval of the Financial Statements
by the Board. The values of all investments are at
cost (reviewed for impairment) or supported by independent
third party professional valuations.
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, used to operating within
Breach of any of the rules enabling the Company to the requirements of the venture capital trust legislation.
hold VCT status could result in the loss of that status. In addition, to provide further formal reassurance,
the Board has appointed Philip Hare & Associates LLP
as its taxation adviser, who report quarterly to the
Board to independently confirm compliance with the
venture capital trust legislation, to highlight areas
of risk and to inform on changes in legislation. Each
investment in a new portfolio company is also pre-cleared
with 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 from its auditor, lawyers
to comply with these regulations could result in a and other professional bodies. The Company is subject
delisting of the Company's shares, or other penalties to compliance checks through the Manager's Compliance
under the Companies Act or from financial reporting Officer. The Manager reports monthly to its Board
oversight bodies. on any issues arising from compliance or regulation.
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.
control in key systems and controls within the Manager's business The Audit Committee reviews the Internal Audit Reports
risk could put assets of the Company at risk or result prepared by the Manager's internal auditors, PKF Littlejohn
in reduced or inaccurate information being passed LLP. On an annual basis, the Audit Committee chairman
to the Board or to shareholders. meets with the internal audit Partner 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.
In addition, the Board regularly reviews the performance
of its key service providers, particularly the Manager,
to ensure they continue to have the necessary expertise
and resources to deliver the Company's investment
objective and policies. The Manager and other service
providers have also demonstrated to the Board that
there is no undue reliance placed upon any one individual
within Albion Capital Group LLP.
Economic Changes in economic conditions, including, for example, The Company invests in a diversified portfolio of
and interest rates, rates of inflation, industry conditions, companies across a number of industry sectors and
political competition, political and diplomatic events and other in addition often invests a mixture of equity and
risk factors could substantially and adversely affect the secured loan stock in portfolio companies and has
Company's prospects in a number of ways. a general policy of not normally permitting any external
bank borrowings within portfolio companies.
At any given time, the Company has sufficient cash
resources to meet its operating requirements, including
share buy-backs and follow on investments.
Market The market value of Ordinary shares can fluctuate. The Company operates a share buy-back policy and the
value of The market value of an Ordinary share, as well as Board targets such buy-backs to be in the region of
Ordinary being affected by its net asset value and prospective a 5 per cent. discount to the most recently announced
shares net asset value, also takes into account its dividend net asset value, so far as market conditions and liquidity
yield and prevailing interest rates. As such, the permit. From time to time buy-backs cannot be applied,
market value of an Ordinary share may vary considerably for example when the Company is subject to a close
from its underlying net asset value. The market prices period, or if it were to exhaust its buy-back authorities,
of shares in quoted investment companies can, therefore, which are renewed each year.
be at a discount or premium to the net asset value New Ordinary shares are issued at sufficient premium
at different times, depending on supply and demand, to net asset value to cover the costs of issue and
market conditions, general investor sentiment and to avoid asset value dilution to existing investors.
other factors. Accordingly the market price of the
Ordinary shares may not fully reflect their underlying
net asset value.
Viability statement
In accordance with the FRC UK Corporate Governance Code published in
September 2014 and principle 21 of the AIC Code of Corporate Governance,
the Directors have assessed the prospects of the Company over three
years to 31 March 2020. The Directors believe that three years is a
reasonable period in which they can assess the future of the Company to
continue to operate and meet its liabilities as they fall due, and is
also the period used by the Board in the strategic planning process and
is considered reasonable for a business of our nature and size. The
three year period is considered the most appropriate given the forecasts
that the Board require from the Manager and the estimated timelines for
finding, assessing and completing investments.
The Directors have carried out a robust assessment of the 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 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 considered the role 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 and
deploy capital. As explained in this Strategic report the Company's
income more than covers ongoing expenses. This income should increase as
our asset-backed investments continue to mature. The portfolio is well
balanced and geared towards long term growth delivering dividends and
capital growth to shareholders. In assessing the prospects of the
Company the Directors have considered the cash flow by looking at the
Company's income and expenditure projections and funding pipeline over
the assessment period of three years and they appear realistic.
Taking into account the processes for mitigating risks, monitoring costs,
share 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 March
2020.
This Strategic report of the Company for the year ended 31 March 2017
has been prepared in accordance with the requirements of section 414A of
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.
On behalf of the Board,
David Watkins
Chairman
27 June 2017
Responsibility statement
In preparing these Financial Statements for the year to 31 March 2017,
the Directors of the Company, being David Watkins, John Kerr, Jeff
Warren and Ebbe Dinesen, confirm that to the best of their knowledge:
- summary financial information contained in this announcement and the
full Annual Report and Financial Statements for the year ended 31 March
2017 for the Company have 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 and loss of the Company for
the year ended 31 March 2017 as required by DTR 4.1.12R;
- the Chairman's statement and Strategic report include a fair review of
the information required by DTR 4.2.7R (indication of important events
during the year ended 31 March 2017 and description of principal risks
and uncertainties that the Company faces); and
- the Chairman's statement and Strategic report include a fair review of
the information required by DTR 4.2.8R (disclosure of related parties
transactions and changes therein).
A detailed "Statement of Directors' responsibilities" is contained on
page 25 within the full audited Annual Report and Financial Statements.
By order of the Board
David Watkins
Chairman
27 June 2017
Income statement
Year ended 31 March 2017 Year ended 31 March 2016
Revenue Capital Total Revenue Capital Total
Note GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Gains on investments 3 - 6,179 6,179 - 3,203 3,203
Investment income 4 2,381 - 2,381 2,236 - 2,236
Investment management fees 5 (283) (848) (1,131) (246) (739) (985)
Other expenses 6 (296) - (296) (287) - (287)
Profit on ordinary activities before tax 1,802 5,331 7,133 1,703 2,464 4,167
Tax (charge)/credit on ordinary activities 8 (292) 170 (122) (300) 148 (152)
Profit and total comprehensive income attributable
to shareholders 1,510 5,501 7,011 1,403 2,612 4,015
Basic and diluted return per share (pence)* 10 1.9 6.8 8.7 2.0 3.6 5.6
* excluding 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 March 2017 31 March 2016
Note GBP'000 GBP'000
Fixed asset investments 11 55,473 45,015
Current assets
Trade and other receivables less than one
year 13 140 2,139
Cash and cash equivalents 10,496 10,330
10,636 12,469
Total assets 66,109 57,484
Creditors: amounts falling due within one
year
Trade and other payables less than one
year 14 (634) (529)
Total assets less current liabilities 65,475 56,955
Equity attributable to equityholders
Called up share capital 15 951 861
Share premium 24,630 18,374
Capital redemption reserve 7 7
Unrealised capital reserve 8,623 1,128
Realised capital reserve 8,743 10,737
Other distributable reserve 22,521 25,848
Total equity shareholders' funds 65,475 56,955
Basic and diluted net asset value per
share (pence)* 16 75.4 72.0
* excluding treasury shares
The accompanying notes form an integral part of these Financial
Statements.
These Financial Statements were approved by the Board of Directors and
authorised for issue on 27 June 2017, and were signed on its behalf by
David Watkins
Chairman
Company number: 03142609
Statement of changes in equity
Called
up Capital Unrealised Realised Other
share Share redemption capital capital distributable
capital premium reserve reserve reserve* reserve* Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
As at 1 April 2016 861 18,374 7 1,128 10,737 25,848 56,955
Return/(loss) and total comprehensive income for the
year - - - 6,165 (664) 1,510 7,011
Transfer of previously unrealised gains/(losses) on
realisations of investments - - - 1,330 (1,330) - -
Purchase of treasury shares - - - - - (873) (873)
Issue of equity 90 6,422 - - - - 6,512
Cost of issue of equity - (166) - - - - (166)
Net dividends paid (note 9) - - - - - (3,964) (3,964)
As at 31 March 2017 951 24,630 7 8,623 8,743 22,521 65,475
As at 1 April 2015 714 8,228 7 (2,269) 11,522 28,726 46,928
Return and total comprehensive income for the year - - - 2,343 269 1,403 4,015
Transfer of previously unrealised gains/(losses) on
realisations of investments - - - 1,054 (1,054) - -
Purchase of treasury shares - - - - - (733) (733)
Issue of equity 147 10,423 - - - - 10,570
Cost of issue of equity - (277) - - - - (277)
Net dividends paid (note 9) - - - - - (3,549) (3,549)
As at 31 March 2016 861 18,374 7 1,128 10,737 25,848 56,955
* These reserves amount to GBP31,264,000 (2016: GBP36,585,000) which is
considered distributable.
Statement of cash flows
Year ended Year ended
31 March 2017 31 March 2016
GBP'000 GBP'000
Cash flow from operating activities
Loan stock income received 1,941 2,028
Deposit interest received 69 115
Dividend income received 45 81
Investment management fees paid (1,091) (938)
Other cash payments (302) (273)
Corporation tax paid (127) (99)
Net cash flow from operating activities 535 915
Cash flow from investing activities
Purchase of fixed asset investments (4,521) (6,430)
Disposal of fixed asset investments 572 2,786
Net cash flow from investing activities (3,949) (3,644)
Cash flow from financing activities
Issue of share capital* 7,809 7,886
Cost of issue of equity (2) (2)
Dividends paid (3,424) (3,094)
Purchase of own shares (including costs) (803) (733)
Net cash flow from financing activities 3,580 4,057
Increase in cash and cash equivalents 166 1,328
Cash and cash equivalents at start of period 10,330 9,002
Cash and cash equivalents at end of period 10,496 10,330
Cash and cash equivalents comprise
Cash at bank and in hand 10,496 10,330
Cash equivalents - -
Total cash and cash equivalents 10,496 10,330
*An amount of GBP1,988,000 relating to shares subscribed and allotted on
31 March 2016 was received during the current year.
Notes to the Financial Statements
1. Basis of preparation
The Financial Statements have been prepared in accordance with the
historical cost convention, modified to include the revaluation of
investments, in accordance with applicable United Kingdom law and
accounting standards, including Financial Reporting Standard 102 ("FRS
102"), and with the 2014 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 ("IPEVCV") Guidelines and
further detail on the valuation techniques used are outlined in note 2
below.
Company information can be found on page 2 of the full Annual Report and
Financial Statements.
2. Accounting policies
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 per cent. of the equity as part of
an investment portfolio are not accounted for using the equity method.
In these circumstances the investment is measured at FVTPL.
Upon initial recognition (using trade date accounting) investments,
including loan stock, are classified by the Company as FVTPL and are
included at their initial fair value, which is cost (excluding expenses
incidental to the acquisition which are written off to the income
statement).
Subsequently, the investments are valued at 'fair value', which is
measured as follows:
-- Investments listed on recognised exchanges are valued at their bid prices
at the end of the accounting period or otherwise at fair value based on
published price quotations;
-- Unquoted investments, where there is not an active market, are valued
using an appropriate valuation technique in accordance with the IPEVCV
Guidelines. Indicators of fair value are derived using established
methodologies including earnings multiples, the level of third party
offers received, prices of recent investment rounds, net assets and
industry valuation benchmarks. Where the Company has an investment in an
early stage enterprise, the price of a recent investment round is often
the most appropriate approach to determining fair value. In situations
where a period of time has elapsed since the date of the most recent
transaction, consideration is given to the circumstances of the portfolio
company since that date in determining fair value. This includes
consideration of whether there is any evidence of deterioration or strong
definable evidence of an increase in value. In the absence of these
indicators, the investment in question is valued at the amount reported
at the previous reporting date. Examples of events or changes that could
indicate a diminution include:
-- the performance and/or prospects of the underlying business are
significantly below the expectations on which the investment was
based;
-- a significant adverse change either in the portfolio company's
business or in the technological, market, economic, legal or
regulatory environment in which the business operates; or
-- market conditions have deteriorated, which may be indicated by a
fall in the share prices of quoted businesses operating in the
same or related sectors.
Investments are recognised as financial assets on legal completion of
the investment contract and are de-recognised on legal completion of the
sale of an investment.
Dividend income is not recognised as part of the fair value movement of
an investment, but is recognised separately as investment income through
the other distributable reserve when a share becomes ex-dividend.
Receivables and payables and cash are carried at amortised cost, in
accordance with FRS 102. There are no financial liabilities other than
creditors.
Investment income
Equity income
Dividend income is included in revenue when the investment is quoted
ex-dividend.
Unquoted loan stock 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 accrual basis using the rate of
interest agreed with the bank.
Investment management fees and other expenses
All expenses have been accounted for on an accruals basis. Expenses are
charged through the other distributable reserve except the following
which are charged through the realised capital reserve:
-- 75 per cent. of management fees are allocated to the capital account to
the extent that these relate to an enhancement in the value of the
investments and in line with the Board's expectation that over the long
term 75 per cent. of the Company's investment returns will be in the form
of capital gains; and
-- expenses which are incidental to the purchase or disposal of an
investment are charged through the realised capital reserve.
Performance incentive fee
In the event that a performance incentive fee crystallises, the fee will
be allocated between other distributable and realised capital reserves
based upon the proportion to which the calculation of the fee is
attributable to revenue and capital returns.
Taxation
Taxation is applied on a current basis in accordance with FRS 102.
Current tax is tax payable (refundable) in respect of the taxable profit
(tax loss) for the current period or past reporting periods using the
tax rates and laws that have been enacted or substantively enacted at
the financial reporting date. Taxation associated with capital expenses
is applied in accordance with the SORP.
Deferred tax is provided in full on all timing differences at the
reporting date. Timing differences are differences between taxable
profits and total comprehensive income as stated in the financial
statements that arise from the inclusion of income and expenses in tax
assessments in periods different from those in which they are recognised
in the financial statements. As a VCT the Company has an exemption from
tax on capital gains. The Company intends to continue meeting the
conditions required to obtain approval as a VCT in the foreseeable
future. The Company therefore, should have no material deferred tax
timing differences arising in respect of the revaluation or disposal of
investments and the Company has not provided for any deferred tax.
Reserves
Share premium account
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 where paid out by capital.
Other distributable reserve
The Special reserve, Treasury share reserve and the Revenue reserve were
combined in 2012 to form a single reserve named other distributable
reserve.
This reserve accounts for movements from the revenue column of the
Income statement, the payment of dividends, the buy-back of shares and
other non-capital realised movements.
Dividends
Dividends by the Company are accounted for in the period in which the
dividend is paid or approved at the Annual General Meeting.
Segmental reporting
The Directors are of the opinion that the Company is engaged in a single
operating segment of business, being investment in equity and debt. The
Company invests in smaller companies principally based in the UK.
3. Gains on investments
Year ended Year ended
31 March 2017 31 March 2016
GBP'000 GBP'000
Unrealised gains on fixed asset investments 6,165 2,343
Realised gains on fixed asset investments 14 860
Gains on investments 6,179 3,203
4. Investment income
Year ended Year ended
31 March 2017 31 March 2016
GBP'000 GBP'000
Income recognised on investments
Loan stock interest and other fixed returns 2,277 2,039
Dividend income 45 81
Bank deposit interest 59 116
2,381 2,236
Interest income earned on impaired investments at 31 March 2017 amounted
to GBP120,000 (2016: GBP208,000).
All of the Company's income is derived from operations in the United
Kingdom.
5. Investment management fees
Year ended Year ended
31 March 2017 31 March 2016
GBP'000 GBP'000
Investment management fee charged to revenue 283 246
Investment management fee charged to capital 848 739
1,131 985
Further details of the Management agreement under which the investment
management fee is paid are given in the Strategic report.
During the year, services of a total value of GBP1,180,000 (2016:
GBP1,033,000), were purchased by the Company from Albion Capital Group
LLP; this includes GBP1,131,000 (2016: GBP985,000) of investment
management fee and GBP49,000 (2016: GBP48,000) secretarial and
administration fee. At the financial year end, the amount due to Albion
Capital Group LLP in respect of these services disclosed within accruals
and deferred income was GBP323,000 (2016: GBP282,000).
As at 31 March 2017 Albion Capital Group LLP holds 25,096 Ordinary
shares in the Company.
6. Other expenses
Year ended Year ended
31 March 2017 31 March 2016
GBP'000 GBP'000
Directors' fees (inc. NIC) 100 93
Secretarial and administration fee 49 48
Auditor's remuneration for statutory audit services
(exc. VAT) 26 27
Other administrative expenses 121 119
296 287
7. Directors' fees
The amounts paid to and on behalf of Directors during the year are as
follows:
Year ended Year ended
31 March 2017 31 March 2016
GBP'000 GBP'000
Directors' fees 92 87
National insurance 8 6
100 93
The Company's key management personnel are the Directors. Further
information regarding Directors' remuneration can be found in the
Directors' remuneration report on page 31 of the full Annual Report and
Financial Statements.
8. Tax charge/(credit) on ordinary activities
Year ended 31 March 2017 Year ended 31 March 2016
Revenue Capital Total Revenue Capital Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
UK corporation tax
in respect of
current year 351 (170) 181 324 (148) 176
UK corporation tax
in respect of
prior year (59) - (59) (24) - (24)
Total 292 (170) 122 300 (148) 152
Factors affecting the tax charge:
Year ended Year ended
31 March 2017 31 March 2016
GBP'000 GBP'000
Return on ordinary activities before taxation 7,133 4,167
Tax on profit at the standard rate of 20% (2016:
20%) 1,426 833
Factors affecting the charge:
Non-taxable gains (1,236) (640)
Income not taxable (9) (17)
Consortium relief in respect of prior years (59) (24)
122 152
The tax charge for the year shown in the Income statement is lower than
the standard rate of corporation tax in the UK of 20 per cent. (2016: 20
per cent.). The differences are explained above.
Consortium relief is recognised in the accounts in the period in which
the claim is submitted to HMRC and is shown as tax in respect of prior
year.
Notes
(i) Venture Capital Trusts are not subject to corporation tax on
capital gains.
(ii) Tax relief on expenses charged to capital has been determined by
allocating tax relief to expenses by reference to the applicable
corporation tax rate and allocating the relief between revenue and
capital in accordance with the SORP.
(iii) No deferred tax asset or liability has arisen in the year.
9. Dividends
Year ended Year ended
31 March 2017 31 March 2016
GBP'000 GBP'000
First dividend paid on 31 July 2015 - 2.5 pence per
share - 1,789
Second dividend paid on 31 December 2015 - 2.5 pence
per share - 1,782
First dividend paid on 29 July 2016 - 2.5 pence per
share 1,987 -
Second dividend paid on 30 December 2016 - 2.5 pence
per share 1,986 -
Unclaimed dividends (9) (22)
3,964 3,549
In addition to the dividends summarised above, the Board has declared a
first dividend for the year ending 31 March 2018 of 2.5 pence per share.
This dividend will be paid on 31 July 2017 to shareholders on the
register on 7 July 2017. The total dividend will be approximately
GBP2,179,000. All dividends are paid out of revenue from the other
distributable reserve.
During the year, unclaimed dividends older than twelve years of GBP9,000
(2016: GBP22,000) were returned to the Company in accordance with the
terms of the Articles of Association.
10. Basic and diluted return per share
Year ended 31 March 2017 Year ended 31 March 2016
Revenue Capital Total Revenue Capital Total
The return per share has been based on the following
figures:
Return attributable to equity shares (GBP'000) 1,510 5,501 7,011 1,403 2,612 4,015
Weighted average shares in issue (excluding treasury
shares) 80,525,974 72,020,718
Return attributable per equity share (pence) 1.9 6.8 8.7 2.0 3.6 5.6
The weighted average number of shares is calculated excluding treasury
shares of 8,263,188 (2016: 6,954,440).
There are no convertible instruments, derivatives or contingent share
agreements in issue, and therefore no dilution affecting the return per
share. The basic return per share is therefore the same as the diluted
return per share.
11. Fixed asset investments
31 March 2017 31 March 2016
GBP'000 GBP'000
Investments held at fair value through profit or loss
Unquoted equity 21,900 15,163
Unquoted loan stock 33,573 29,852
55,473 45,015
31 March 2017 31 March 2016
GBP'000 GBP'000
Opening valuation 45,015 38,229
Purchases at cost 4,521 6,430
Disposal proceeds (572) (2,852)
Realised gains 14 860
Movement in loan stock accrued income 331 4
Unrealised gains 6,165 2,343
Closing valuation 55,473 45,015
Movement in loan stock accrued income
Opening accumulated movement in loan stock accrued
income 265 261
Movement in loan stock accrued income 331 4
Closing accumulated movement in loan stock accrued
income 596 265
Movement in unrealised gains/(losses)
Opening accumulated unrealised losses 1,128 (2,269)
Transfer of previously unrealised losses to realised
reserve on realisations of investments 1,330 1,054
Unrealised gains 6,165 2,343
Closing accumulated unrealised gains 8,623 1,128
Historic cost basis
Opening book cost 43,622 40,239
Purchases at cost 4,521 6,430
Sales at cost* (1,888) (3,047)
Closing book cost* 46,255 43,622
*Included in the sales at cost is the cost after deducting realised
losses of GBP1,162,000 for TWCL Limited (previously The Weybridge Club
Limited) and GBP170,000 for MHS 1 Limited (previously The Charnwood Pub
Company Limited) which are still held at the Balance sheet date.
The Company does not hold any assets as a result of the enforcement of
security during the period, and believes that the carrying values for
both impaired and past due assets are covered by the value of security
held for these loan stock investments.
Unquoted fixed asset investments are valued at fair value in accordance
with the IPEVCV guidelines as follows:
31 March 2017 31 March 2016
Valuation methodology GBP'000 GBP'000
Cost (reviewed for impairment) 823 6,743
Valuation supported by third party or desktop
valuation 54,650 38,272
55,473 45,015
Full valuations are prepared by independent RICS qualified surveyors in
full compliance with the RICS Red Book. Desk-top reviews are carried out
by similarly RICS qualified surveyors by updating previously prepared
full valuations for current trading and market indices.
Fair value investments had the following movements between valuation
methodologies between 31 March 2016 and 31 March 2017:
Change in valuation methodology (2016 to 2017) Value as at Explanatory
31 March 2017 note
GBP'000
Cost (reviewed for impairment) to Valuation supported 9,113 Third party
by third party or desktop valuation valuation
has
recently
taken
place
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 IPEVCV Guidelines. The Directors believe that, within
these parameters, there are no other possible methods of valuation which
would be reasonable as at 31 March 2017.
FRS 102 and the SORP requires the Company to disclose the inputs to the
valuation methods applied to its investments measured at fair value
through profit or loss in a fair value hierarchy. The table below sets
out fair value hierarchy definitions using FRS102 s.11.27, which has
been adopted early.
Fair value hierarchy Definition
Level 1 Unadjusted quoted prices in an active market
Level 2 Inputs to valuations are from observable sources and
are directly or indirectly derived from prices
Level 3 Inputs to valuations not based on observable market
data
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 in the year to 31 March 2017:
31 March 2017 31 March 2016
Unquoted Unquoted
Equity loan stock Total Equity loan stock Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Opening
balance 15,163 29,852 45,015 10,442 27,787 38,229
Additions 896 3,625 4,521 1,684 4,746 6,430
Disposal
proceeds (14) (558) (572) (721) (2,131) (2,852)
Debt/equity
swap 150 (150) - - - -
Accrued loan
stock
interest - 331 331 - 4 4
Realised gains 14 - 14 722 138 860
Unrealised
gains 5,691 474 6,165 3,036 (693) 2,343
Closing
balance 21,900 33,573 55,473 15,163 29,852 45,015
FRS 102 requires the Directors to consider the impact of changing one or
more of the inputs used as part of the valuation process to reasonable
possible alternative assumptions. 61 per cent. of the portfolio of
investments is based on cost 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 for the valuations of the remainder of the
portfolio companies could result in an increase in the valuation of
investments by GBP791,000 or a decrease in the valuation of investments
by GBP834,000. For valuations based on third party valuations, the Board
considers that the most significant inputs are earnings multiples and
market value per room for care homes; which have been adjusted to drive
the above sensitivities.
12. Significant interests
The principal activity of the Company is to select and hold a portfolio
of investments in unquoted securities. Although the Company, through the
Manager, will, in some cases, be represented on the board of the
portfolio company, it will not take a controlling interest or become
involved in the management. The size and structure of the companies with
unquoted securities may result in certain holdings in the portfolio
representing a participating interest without there being any
partnership, joint venture or management consortium agreement. The
Company has interests of greater than 20 per cent. of the nominal value
of any class of the allotted shares in the portfolio companies as at 31
March 2017 as described below:
Country Profit/(loss) Net assets/ Results % class % total
of before tax (liabilities) for year and share voting
Company incorporation GBP'000 GBP'000 ended: type rights
Kew Green
VCT
(Stansted) 31 August
Limited Great Britain 427 4,873 2016 45.2% Ordinary 45.2%
G&K Smart
Development 31
VCT December
Limited Great Britain n/a* 319 2015 42.9% Ordinary 42.9%
The Stanwell
Hotel 31 August
Limited Great Britain (838) (6,950) 2016 39.2% Ordinary 39.2%
Shinfield 31
Lodge Care December
Limited Great Britain n/a* 1,090 2015 35.3% Ordinary 35.3%
The Crown
Hotel
Harrogate 31 March
Limited Great Britain (922) (8,362) 2016 24.1% Ordinary 24.1%
Ryefield
Court Care 30 April
Limited Great Britain n/a* 1,004 2016 23.6% Ordinary 23.6%
Active Lives 31
Care December
Limited Great Britain n/a* 1,373 2015 22.2% Ordinary 22.2%
*The company files abbreviated accounts which do not disclose this
information.
13. Current assets
31 March 2017 31 March 2016
Trade and other receivables GBP'000 GBP'000
Prospectus Top Up Offers proceeds* - 1,988
Other receivables 96 112
UK corporation tax receivable 35 24
Prepayments and accrued income 9 15
140 2,139
*This relates to shares subscribed and allotted on 31 March 2016 with
monies received after that date.
The Directors consider that the carrying amount of receivables is not
materially different to their fair value.
14. Creditors: amounts falling due within one year
31 March 2017 31 March 2016
GBP'000 GBP'000
Trade payables 78 18
UK Corporation tax payable 181 176
Accruals and deferred income 375 335
634 529
The Directors consider that the carrying amount of payables is not
materially different to their fair value.
15. Called up share capital
Allotted, called up and fully paid GBP'000
86,081,939 Ordinary shares of 1 penny each at 31 March
16 861
8,974,488 Ordinary shares of 1 penny each issued during
the year 90
95,056,427 Ordinary shares of 1 penny each at 31 March
2017 951
6,954,440 Ordinary shares of 1 penny each held in
treasury at 31 March 2016 (70)
1,308,748 Ordinary shares purchased during the year
to be held in treasury (13)
8,263,188 Ordinary shares of 1 penny each held in
treasury at 31 March 2017 (83)
86,793,239 Ordinary shares of 1 penny each in circulation*
at 31 March 2017 868
* Carrying one vote each
The Company purchased 1,308,748 Ordinary shares (2016: 1,113,000) to be
held in treasury at a nominal value of GBP13,000 and a cost of
GBP873,000 (2016: GBP733,000) representing 1.4 per cent. of its issued
share capital as at 31 March 2017. The shares purchased for treasury
were funded from the other distributable reserve.
The Company holds a total of 8,263,188 shares (2016: 6,954,440) in
treasury at a nominal value of GBP83,000, representing 8.7 per cent. of
the issued Ordinary share capital as at 31 March 2017.
Under the terms of the Dividend Reinvestment Scheme Circular dated 10
July 2008, the following new Ordinary shares of nominal value 1 penny
per share were allotted during the year:
Opening
Aggregate Issue market
Number nominal price price on
Date of of shares value of Net (pence allotment
allotment allotted shares invested per date
(pence
GBP'000 GBP'000 share) per share)
29 July 2016 374,773 4 259 69.5 66.5
30 December 2016 377,848 4 265 70.4 67.9
752,621 8 524
During the year the following new Ordinary shares were allotted under
the Albion VCTs Prospectus Top Up Offers 2015/2016 and the Albion VCTs
Prospectus Top Up Offers 2016/2017:
Opening
Aggregate Issue market
Number nominal Net price price on
Date of of shares value of consideration (pence allotment
allotment allotted shares received per date
(pence
GBP'000 GBP'000 share) per share)
6 April 2016 107,001 1 76 72.8 66.5
6 April 2016 245,265 2 173 72.0 66.5
6 April 2016 9,897 - 7 72.4 66.5
31 January 2017 1,516,754 15 3,307 71.9 67.0
31 January 2017 542,522 5 1,069 72.3 67.0
31 January 2017 4,695,695 47 382 72.6 67.0
28 March 2017 1,104,733 11 807 75.3 68.0
8,221,867 82 5,821
16. Basic and diluted net asset value per share
31 March 2017 31 March 2016
Basic and diluted net asset value per share
(pence) 75.4 72.0
The basic and diluted net asset value per share at the year end are
calculated in accordance with the Articles of Association and are based
upon total shares in issue (less treasury shares) of 86,793,239 Ordinary
shares (2016: 79,127,499).
There are no convertible instruments, derivatives or contingent share
agreements in issue.
17. Capital and financial instruments risk management
The Company's capital comprises Ordinary shares as described in note 15.
The Company is permitted to buy-back its own shares for cancellation or
treasury purposes, and this is described in more detail in the
Chairman's statement.
The Company's financial instruments comprise equity and loan stock
investments in unquoted companies, cash balances and short term
receivables and payables which arise from its operations. The main
purpose of these financial instruments is to generate cash flow and
revenue and capital appreciation for the Company's operations. The
Company has no gearing or other financial liabilities apart from short
term payables. The Company does not use any derivatives for the
management of its balance sheet.
The principal risks arising from the Company's operations are:
-- Investment (or market) risk (which comprises investment price and cash
flow interest rate risk);
-- credit risk; and
-- liquidity risk.
The Board regularly reviews and agrees policies for managing each of
these risks. There have been no changes in the nature of the risks that
the Company has faced during the past year and, apart from where noted
below, there have been no changes in the objectives, policies or
processes for managing risks during the past year. The key risks are
summarised below.
The Company's objectives when managing capital are to safeguard the
Company's ability to continue as a going concern, so that it can
continue to provide returns for shareholders and to provide an adequate
return to shareholders by allocating its capital to assets commensurate
with the level of risk.
By its nature, the Company has an amount of capital, at least 70 per
cent. (as measured under the tax legislation) of which is and must be,
and remain, invested in the relatively high risk asset class of small UK
companies within three years of that capital being subscribed. The
Company accordingly has limited scope to manage its capital structure in
the light of changes in economic conditions and the risk characteristics
of the underlying assets. Subject to this overall constraint upon
changing the capital structure, the group may adjust the amount of
dividends paid to shareholders, return capital to shareholders, issue
new shares, or sell assets if so required to maintain a level of
liquidity to remain a going concern.
Although, as the Investment Policy implies, the Board would consider
levels of gearing, there are no current plans to do so. It regards the
net assets of the Company as the Company's capital, as the levels of
liabilities are small and the management of them is not directly related
to managing the return to shareholders. There has been no change in this
approach from the previous year.
Investment risk
As a venture capital trust, it is the Company's specific nature to
evaluate and control the investment risk of its portfolio in unquoted
investments, details of which are shown on page 16 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
portfolio companies; this enables the close identification, monitoring
and management of investment risk.
The Manager and the Board formally review investment risk (which
includes market price risk), both at the time of initial investment and
at quarterly Board meetings.
The Board monitors the prices at which sales of investments are made to
ensure that profits to the Company are maximised, and that valuations of
investments retained within the portfolio appear sufficiently prudent
and realistic compared to prices being achieved in the market for sales
of unquoted investments.
The maximum investment risk as at the balance sheet date is the value of
the fixed investment portfolio which is GBP55,473,000 (2016:
GBP45,015,000). Fixed asset investments form 85 per cent. of the net
asset value as at 31 March 2017 (2016: 79 per cent.).
More details regarding the classification of fixed asset investments are
shown in note 11.
Investment price risk
Investment price risk is the risk that the fair value of future
investment cash flows will fluctuate due to factors specific to an
investment instrument or to a market in similar instruments. To mitigate
the investment price risk for the Company as a whole, the strategy of
the Company is to invest in a broad spread of industries with
approximately two-thirds of the unquoted investments comprising debt
securities, which, owing to the structure of their yield and the fact
that they are usually secured, have a lower level of price volatility
than equity. Details of the industries in which investments have been
made are contained in the Portfolio of investments section on page 16 of
the full Annual Report and Financial Statements and in the Strategic
report.
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 IPEVCV Guidelines.
As required under FRS 102 section 34.29, 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 10 per cent. change based on the
current economic climate. The impact of a 10 per cent. change has been
selected as this is considered reasonable given the current level of
volatility observed both on a historical basis and future expectations.
The sensitivity of a 10 per cent. increase or decrease in the valuation
of the fixed asset investments (keeping all other variables constant)
would increase or decrease the net asset value and return for the year
by GBP5,547,000 (2016: GBP4,502,000).
Interest rate risk
It is the Company's policy to accept a degree of interest rate risk on
its financial assets through the effect of interest rate changes. On the
basis of the Company's analysis, it is estimated that a rise of one
percentage point in all interest rates would have increased total return
before tax for the year by approximately GBP74,000 (2016: GBP122,000).
Furthermore, it is considered that a fall of interest rates below
current levels during the year would have been very unlikely.
The weighted average effective interest rate applied to the Company's
fixed rate assets during the year was approximately 7.0 per cent. (2016:
6.7 per cent.). The weighted average period to maturity for the fixed
rate assets is approximately 4.6 years (2016: 4.7 years).
The Company's financial assets and liabilities, all denominated in
pounds sterling, consist of the following:
31 March
31 March 2017 2016
Non- Non-
Fixed Floating interest Fixed Floating interest
rate rate bearing Total rate rate bearing Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Unquoted equity - - 21,900 21,900 - - 15,163 15,163
Unquoted loan
stock* 32,987 279 307 33,573 29,116 279 457 29,852
Receivables ** - - 96 96 - - 2,110 2,110
Current
liabilities** - - (452) (452) - - (353) (353)
Cash - 10,496 - 10,496 - 10,330 - 10,330
32,987 10,775 21,851 65,613 29,116 10,609 17,377 57,102
*Including convertible loan stock and debt issued at a discount
** The receivables and current liabilities do not reconcile to the
Balance sheet as prepayments and tax receivable/(payable) 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 prior to investment and
as part of its ongoing monitoring of investments. In doing this, it
takes into account the extent and quality of any security held.
Typically loan stock instruments have a first fixed charge or a fixed
and floating charge over the assets of the portfolio company in order to
mitigate the gross credit risk. The Manager receives management accounts
from portfolio companies, and members of the investment management team
often sit on the boards of 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 as at 31 March 2017 was limited to
GBP33,573,000 (2016: GBP29,852,000) of unquoted loan stock instruments
(all of which is secured on the assets of the portfolio company),
GBP10,496,000 cash deposits with banks (2016: GBP10,330,000) and
GBP96,000 of other receivables (2016: GBP2,100,000).
As at the Balance sheet date, the cash held by the Company is held with
Lloyds Bank plc, Scottish Widows Bank plc (part of Lloyds Banking Group),
Barclays Bank plc and National Westminster Bank plc. Credit risk on cash
transactions is mitigated by transacting with counterparties that are
regulated entities subject to prudential supervision, with high credit
ratings assigned by international credit-rating agencies.
The Company has an informal policy of limiting counterparty banking and
floating rate note exposure to a maximum of 20 per cent. of net asset
value for any one counterparty.
The credit profile of the unquoted loan stock is described under
liquidity risk.
Liquidity risk
Liquid assets are held as cash on current short term deposit accounts.
Under the terms of its Articles, the Company has the ability to borrow
up to 10 per cent. of its adjusted capital and reserves of the latest
published audited balance sheet, which amounts to GBP6,330,000 as at 31
March 2017 (2016: GBP5,497,000).
The Company has no committed borrowing facilities as at 31 March 2017
(2016: GBPnil) and had cash balances of GBP10,496,000 (2016:
GBP10,330,000). The main cash outflows are for new investments, buy-back
of shares and dividend payments, which are within the control of the
Company. The Manager formally reviews the cash requirements of the
Company on a monthly basis, and the Board on a quarterly basis as part
of its review of management accounts and forecasts. All the Company's
financial liabilities are short term in nature and total GBP634,000 for
the year to 31 March 2017 (2016: GBP529,000).
The carrying value of loan stock investments at 31 March 2017 as
analysed by expected maturity dates is as follows:
Fully
Redemption performing Impaired Past due Total
date GBP'000 GBP'000 GBP'000 GBP'000
Less than one year 4,498 7,326 426 12,250
1-2 years 417 - - 417
2-3 years 4,541 - - 4,541
3-5 years 5,334 416 978 6,728
Greater than 5 years 6,719 - 2,918 9,637
Total 21,509 7,742 4,322 33,573
Loan stock can be past due as a result of interest or capital not being
paid in accordance with contractual terms.
The average annual interest yield on the total cost of past due loan
stock is 11.2 per cent. (2016: 12.1 per cent.).
Impaired loan stock has a cost of GBP10,145,000 (2016: GBP11,065,000).
The carrying value of loan stock investments at 31 March 2016 as
analysed by expected maturity dates is as follows:
Fully
performing Impaired Past due Total
Redemption date GBP'000 GBP'000 GBP'000 GBP'000
Less than one year 4,875 7,732 383 12,990
1-2 years 101 - - 101
2-3 years 407 - - 407
3-5 years 7,693 292 105 8,090
Greater than 5 years 5,437 - 2,827 8,264
Total 18,513 8,024 3,315 29,852
In view of the information shown, the Board considers that the Company
is subject to low liquidity risk.
Fair values of financial assets and financial liabilities
All the Company's financial assets and liabilities as at 31 March 2017
are stated at fair value as determined by the Directors, with the
exception of receivables and payables and cash which are carried at
amortised cost, in accordance with FRS 102. There are no financial
liabilities other than payables. The Company's financial liabilities are
all non-interest bearing. It is the Directors' opinion that the book
value of the financial liabilities is not materially different to the
fair value and all are payable within one year.
18. Commitments and contingencies
The Company had no financial commitments in respect of investments at 31
March 2017.
There are no contingent liabilities or guarantees given by the Company
as at 31 March 2017 (31 March 2016: nil).
19. Post balance sheet events
Since 31 March 2017 the Company has had the following post balance sheet
events:
-- Investment of GBP228,000 in G. Network Communications Limited.
In addition, TWCL Limited (previously The Weybridge Club Limited)
disposed of its business and assets.
New Ordinary shares issued under the Albion VCTs Prospectus Top Up
Offers 2016/2017:
Aggregate Opening
Number of nominal Net market price
Date of shares value consideration Issue price on
allotment allotted of shares received (pence per allotment date
GBP'000 GBP'000 share) (pence per share)
7 April
2017 52,543 1 38 74.5 68.0
7 April
2017 29,427 - 22 74.9 68.0
7 April
2017 284,008 3 207 75.3 68.0
365,978 4 267
20. Related party transactions
Other than transactions with the Manager as disclosed in note 5, there
are no related party transactions or balances requiring disclosure.
21. Other information
The information set out in this announcement does not constitute the
Company's statutory accounts within the terms of section 434 of the
Companies Act 2006 for the years ended 31 March 2017 and 31 March 2016,
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
March 2017, 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.
The Company's Annual General Meeting will be held at The City of London
Club, 19 Old Broad Street, London, EC2N 1DS on 14 August 2017 at
11:00am.
22. Publication
The full audited Annual Report and Financial Statements are being sent
to shareholders and copies will be made available to the public at the
registered office of the Company, Companies House, the National Storage
Mechanism and also electronically at www.albion.capital/funds/AAVC,
where the Report can be accessed as a PDF document via a link in the
'Financial Reports and Circulars' section.
Dividend history for Albion Venture Capital Trust PLC 'C Shares'
(unaudited)
C shares
Total shareholder return to 31 March 2017 (pence per share)
Total dividends paid during the year ended : 31 March
1998 2.00
31 March 1999 8.75
31 March 2000 2.70
31 March 2001 4.80
31 March 2002 7.60
31 March 2003 7.70
31 March 2004 8.20
31 March 2005 9.75
31 March 2006 11.75
31 March 2007 10.00
31 March 2008 10.00
31 March 2009 10.00
31 March 2010 5.00
31 March 2011 5.00
31 March 2012 5.00
31 March 2013 5.00
31 March 2014 5.00
31 March 2015 5.00
31 March 2016 5.00
31 March 2017 5.00
Total dividends paid to 31 March 2017 133.25
Net asset value as at 31 March 2017 75.40
Total shareholder return to 31 March 2017 208.65
Notes
-- Dividends paid before 5 April 1999 were paid to qualifying shareholders
inclusive of the associated tax credit. The dividends for the year to 31
March 1999 were maximised in order to take advantage of this tax credit.
-- All dividends paid by the Company are free of income tax. It is an H.M.
Revenue & Customs requirement that dividend vouchers indicate the tax
element should dividends have been subject to income tax. Investors
should ignore this figure on their dividend voucher and need not disclose
any income they receive from a VCT on their tax return.
-- The Ordinary shares and the C shares merged on an equal basis.
Dividend history for Albion Prime VCT PLC now merged with Albion Venture
Capital Trust PLC (unaudited)
Proforma
Albion Prime
VCT PLC
Total proforma shareholder return to 31 March 2017 (pence per share)
Total dividends paid during the year
ended: 31 March 1998 1.10
31 March 1999 6.40
31 March 2000 1.50
31 March 2001 4.25
31 March 2002 2.75
31 March 2003 2.00
31 March 2004 1.25
31 March 2005 2.20
31 March 2006 4.50
31 March 2007 4.00
31 March 2008 5.00
31 March 2009 4.50
31 March 2010 2.00
31 March 2011 3.00
31 March 2012 3.00
31 March 2013 3.70
31 March 2014 4.40
31 March 2015 4.40
31 March 2016 4.40
31 March 2017 4.40
Total dividends paid to 31 March 2017 68.75
Proforma net asset value as at 31 March 2017 66.36
Total proforma shareholder return to 31 March 2017 135.11
Notes
-- The proforma shareholder returns presented above are based on the
dividends paid to shareholders before the merger and the pro-rata net
asset value per share and pro-rata dividends per share paid to 31 March
2017. This proforma is based upon 0.8801 Albion Venture Capital Trust PLC
shares for every Albion Prime VCT PLC share which merged with Albion
Venture Capital Trust PLC on 25 September 2012.
-- Dividends paid before 5 April 1999 were paid to qualifying shareholders
inclusive of the associated tax credit. The dividends for the year to 31
March 1999 were maximised in order to take advantage of this tax credit.
-- The above table excludes the tax benefits investors received upon
subscription for shares in the Company.
Split of portfolio by sector:
http://hugin.info/141809/R/2117044/805814.pdf
This announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the information
contained therein.
Source: Albion Venture Capital Trust PLC via Globenewswire
http://www.closeventures.co.uk
(END) Dow Jones Newswires
June 30, 2017 07:10 ET (11:10 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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