TIDMAATG
Albion Technology & General VCT PLC
LEI number: 213800TKJUY376H3KN16
As required by the UK Listing Authority's Disclosure Guidance and
Transparency Rule 4.2, Albion Technology & General VCT PLC today makes
public its information relating to the Half-yearly Financial Report
(which is unaudited) for the six months to 30 June 2020. This
announcement was approved by the Board of Directors on 14 September
2020.
The full Half-yearly Financial Report (which is unaudited) for the
period to 30 June 2020, will shortly be sent to shareholders. Copies of
the full Half-yearly Financial Report will be shown via the Albion
Capital Group LLP website by clicking
www.albion.capital/funds/AATG/30Jun20.pdf.
Investment objective and policy
The Company's investment objective is to provide investors with a
regular and predictable source of dividend income, combined with the
prospect of long-term capital growth, through a balanced portfolio of
predominantly unquoted growth and technology businesses in a qualifying
venture capital trust.
Investment policy
The Company will invest in a broad portfolio of unquoted growth and
technology businesses. Allocation of assets will be determined by the
investment opportunities which become available but efforts will be made
to ensure that the portfolio is diversified in terms of sectors and
stages of maturity of portfolio companies.
VCT qualifying and non-qualifying investments
Application of the investment policy is designed to ensure that the
Company continues to qualify and is approved as a VCT by HM Revenue and
Customs ("VCT regulations"). The maximum amount invested in any one
company is limited to any HMRC annual investment limits. It is intended
that normally at least 80 per cent. of the Company's funds will be
invested in VCT qualifying investments. The VCT regulations also have an
impact on the type of investments and qualifying sectors in which the
Company can make investment.
Funds held prior to investing in VCT qualifying assets or for liquidity
purposes will be held as cash on deposit, invested in floating rate
notes or similar instruments with banks or other financial institutions
with high credit ratings or invested in liquid open-ended equity funds
providing income and capital equity exposure (where it is considered
economic to do so). Investment in such open-ended equity funds will not
exceed 7.5 per cent. of the Company's assets at the time of investment.
Risk diversification and maximum exposures
Risk is spread by investing in a number of different businesses within
VCT qualifying industry sectors using a mixture of securities. The
maximum the Company will invest in a single company is 15 per cent. of
the Company's assets at cost. The value of an individual investment is
expected to increase over time as a result of trading progress and a
continuous assessment is made of investments' suitability for sale. It
is possible that individual holdings may grow in value to a point where
they represent a significantly higher proportion of total assets prior
to a realisation opportunity being available.
Borrowing powers
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 have any intention of utilising long-term gearing.
Financial calendar
Record date for special dividend 9 October 2020
Payment date for special dividend 30 October 2020
Record date for second interim dividend for the year 4 December 2020
Payment date for second interim dividend for the year 31 December 2020
Financial year end 31 December
Financial summary
Unaudited Unaudited six months ended Audited
six months ended 30 June 2020 30 June 2019 year ended 31 December 2019
(pence per share) (pence per share) (pence per share)
Opening net
asset value 82.58 77.40 77.40
Revenue
(loss)/return (0.07) 0.25 0.47
Capital
(loss)/return (2.70) 9.83 8.81
------------------------------ -------------------------- -----------------------------
Total
(loss)/return (2.77) 10.08 9.28
Dividends paid (2.00) (2.00) (4.00)
Impact from
share capital
movements 0.04 (0.33) (0.10)
------------------------------ -------------------------- -----------------------------
Net asset
value 77.85 85.15 82.58
-------------- ------------------------------ -------------------------- -----------------------------
Ordinary shares
Total shareholder value to 30 June 2020 (pence per share)
----------------------------------------------
Total dividends paid during the period ended:
31 December 2001 1.00
31 December 2002 2.00
31 December 2003 1.50
31 December 2004 7.50
31 December 2005 9.00
31 December 2006 8.00
31 December 2007 8.00
31 December 2008 16.00
31 December 2009 -
31 December 2010 8.00
31 December 2011 5.00
31 December 2012 5.00
31 December 2013 5.00
31 December 2014 5.00
31 December 2015 5.00
31 December 2016 5.00
31 December 2017 4.00
31 December 2018 4.00
31 December 2019 4.00
30 June 2020 2.00
------------------
Total dividends paid to 30 June 2020 105.00
Net asset value as at 30 June 2020 77.85
------------------
Total shareholder value to 30 June 2020 182.85
------------------
In addition to the dividends paid above, the Board declared a second
interim dividend for the year ending 31 December 2020 of 1.95 pence per
Ordinary share to be paid on 31 December 2020 to shareholders on the
register on 4 December 2020. The Board has also declared a special
dividend of 9.00 pence per Ordinary share, payable on 30 October 2020 to
shareholders on the register on 9 October 2020. Details of the new
variable dividend policy and the special dividend can be found in the
Interim management report below.
Further details regarding the total shareholder value for C Shares and
Albion Income and Growth VCT PLC can be found at
www.albion.capital/funds/AATG under the 'Financial Summary for Previous
Funds' section.
Notes
Total shareholder value for every 100 pence invested on initial
allotment. The table above excludes tax benefits upon subscription.
Interim management report
Introduction
Since the announcement of our year end results to 31 December 2019, we
have been facing unprecedented times caused by the ongoing disruption
from the coronavirus (Covid-19) pandemic. It is unsurprising that our
portfolio has been affected by this, and the Board has been working
closely with the Manager to undertake a robust revaluation process to
quantify the current effect of the pandemic on the portfolio. Pleasingly
our portfolio has shown some resilience during this testing time, and
although the period to 30 June 2020 showed a loss of 3.35% on opening
net asset value, this generally compares favourably to quoted markets
and other unquoted vehicles.
Performance and portfolio update
The net effect of the Board's portfolio revaluation has been an overall
loss on investments of GBP2.2 million (30 June 2019: gain of GBP11.3
million; 31 December 2019: gain of GBP11.2 million). The key movements
in the period include: a GBP2.7 million decrease in the valuation of
Mirada Medical and a GBP0.5 million decrease in the valuation of DySIS
Medical, both as a direct result of the impact of the coronavirus
(Covid-19) pandemic on their operations; and a GBP0.5 million decrease
in the value of our holding in the SVS Albion OLIM UK Equity Income Fund
due to quoted market turmoil caused by the pandemic. Against this, there
have been uplifts during the period, including a GBP2.8 million increase
in the value of Quantexa, as a result of a new funding round led by an
external party, and a GBP0.6 million uplift in Proveca, as a result of
strong sales across Europe.
Investments in three new portfolio companies have been made during the
period, all of which should result in further investment as the
companies prove themselves and grow. These are:
-- GBP1,632,000 into Concirrus, a software provider bringing real-time
behavioural data analytics to the marine and transport insurance
industries;
-- GBP979,000 into Credit Kudos, a challenger credit bureau helping lenders
optimise and automate their affordability and risk assessments; and
-- GBP397,000 into TransFICC, a provider of a connectivity solution,
connecting financial institutions with trading venues via a single
Application Programming Interface ("API").
The Environmental, Social, and Governance ("ESG") credentials of the
portfolio are regularly assessed. More recently, it has become apparent
that some of the technology and healthcare investments have been
positively impacted following the advent of Covid-19 earlier in the year
in areas such as data security and the provision of telemedicine. Given
the nature of venture capital investing, good Governance and
transparency are encouraged and increasingly Environmental has been part
of the portfolio, with investment in renewable energy being an example.
Investing in companies with a positive Social impact is a core element
of the Company's investment strategy in areas such as healthcare and
education. Full details of the ESG credentials can be found on pages 15
and 16 of the Annual Report and Financial Statements for the year ended
31 December 2019.
Overall, the results for Albion Technology & General VCT PLC for the six
months to 30 June 2020 show a total loss of 2.77 pence per share
compared to a positive total return of 10.08 pence per share for the
same period in the previous year. The net asset value per Ordinary share
as at 30 June 2020 has fallen to 77.85 pence (30 June 2020: 85.15 pence;
31 December 2019: 82.58 pence) as a result of this loss and the payment
of the first dividend of 2.00 pence per share on 30 June 2020.
Current portfolio sector allocation
Set out at the bottom of this announcement is the sector diversification
of the portfolio of investments as at 30 June 2020.
Special dividend
Following changes to the VCT rules and the investment policy, the
Company continues to focus on investment in higher growth technology
companies, which has led to increased volatility in returns. As detailed
in the Annual Report, there were a number of significant and successful
disposals during the year ended 31 December 2019, which has resulted in
cash balances at 30 June 2020 of GBP26.0 million, which represented 32%
of net assets. While it is important for a venture capital fund, which
by its nature has illiquid investments, to hold sufficient cash to
manage operating costs, to service dividends and buy backs and, most
importantly, to make follow on and new investments when they arise, this
must be balanced against meeting the requirement of a venture capital
trust to be invested in qualifying investments. The holding of cash is
not a qualifying investment for these purposes. As a result of these
significant disposals and following a review of the foreseeable cash
requirements of the Company, the Board is declaring a special dividend
of 9.00 pence per share, payable on 30 October 2020 to shareholders on
the register on 9 October 2020. Whilst this reduces the Company's assets,
it provides a significant income return to shareholders and, for those
that want to take it, an opportunity to re-invest the special dividend
in the Company via the Dividend Reinvestment Scheme as described below.
The Company continues to offer a Dividend Reinvestment Scheme ("DRIS")
whereby shareholders can elect to receive dividends in the form of new
shares. For shareholders not currently in the DRIS, the Company is
offering shareholders the option to elect for a one-off sign up to have
this special dividend reinvested into new shares through the DRIS.
Shareholders can take advantage of this by emailing
https://www.globenewswire.com/Tracker?data=QoOPkBnsTeYzn21PdVtTQxLG8vzJh1v5OuDnEnU6BiLp0erxroqyXDSGKGUnJDyAIRfvq3Zw4dFP4ndiSgNlfdIdJai1uVEmqXV6PTaf3gY=
AATGchair@albion.capital before midday on 7 October 2020. To elect for
the reinvestment, please ensure your email contains your full name,
Shareholder Reference Number, telephone number and confirms you have
read the DRIS terms and conditions. As outlined below, the Company has
moved to a variable dividend, calculated as a percentage of the net
asset value, which will, in the near term, reduce the absolute amount of
dividend receivable per share (currently 4 pence per annum, 2 pence paid
semi-annually). By re-investing the special dividend in the capital of
the Company, shareholders would be expected to broadly maintain the
level of income they have been receiving from the Company by acquiring
more shares in the Company. A number of the non-executive Directors and
Albion employees have indicated that it is their intention to reinvest
this dividend.
The terms and conditions for the DRIS can be found on the Company's
webpage on the Manager's website at www.albion.capital/funds/AATG under
the Fund reports section.
New dividend policy
The Board is aware of the importance of dividends to shareholders and it
remains the Board's intention to continue to pay regular semi-annual
dividends, as far as liquidity in the Company's portfolio permits.
However, given the uncertainty that the current pandemic has created and
the volatile nature of investing in small unquoted growth businesses,
the Board considers it appropriate to move to a variable dividend policy
targeting an annual dividend yield of around 5%, based on prevailing net
asset value rather than at a fixed rate, as it has been in the past.
Semi-annual dividends will be paid, calculated as 2.5% of the most
recently announced net asset value when the dividend is declared (in
most cases this will be the net asset value announced in the Half-yearly
Financial Report or in the Annual Report and Financial Statements). This
change in dividend policy has the advantage of avoiding unsustainably
high dividends if the net asset value falls, whilst rewarding
shareholders more immediately if the net asset value rises.
This new dividend policy will take effect immediately and apply to the
second interim dividend for the financial year ending 31 December 2020
and dividends declared thereafter. The Board therefore declares a second
interim dividend for the financial year ending 31 December 2020 of 1.95
pence per share payable on 31 December 2020 to shareholders on the
register on 4 December 2020.
Risks, uncertainties and prospects
The wide-reaching implications arising from the coronavirus (Covid-19)
crisis is the key risk facing the Company, including its impact on the
UK and Global economies and recent turmoil in the quoted companies'
market. There are also the potential implications of the UK's departure
from the European Union which may adversely affect our underlying
portfolio companies. The Manager is continually assessing the exposure
to such risks for each portfolio company, and where possible appropriate
actions are being implemented.
Overall investment risk, however, is mitigated through a variety of
processes, including our policy of aiming to achieve balance in the
portfolio through the inclusion of sectors that are less exposed to the
business and consumer cycles.
Other principal risks and uncertainties remain unchanged and are as
detailed in note 13.
Board composition
The Board announced on 9 July 2020 that, following a formal selection
process, Margaret Payn had been appointed to the Board as a
non-executive Director with effect from 3 August 2020. Margaret has
extensive experience across the financial sector, having worked for a
number of financial institutions. Most recently, she was appointed as a
non-executive director of JPMorgan Mid Cap Investment Trust plc. We
welcome Margaret to the Board as a good addition to our collective
skills and experience, particularly as regards experience in private
equity and closed-ended funds.
Corporate broker and share buy-backs
The Board was pleased to announce on 17 June 2020 the appointment of
Panmure Gordon (UK) Limited as corporate broker.
The Board is pleased to announce the continuation of the share buyback
policy, recognising its importance in providing liquidity for those who
want to sell their shares. Buy-backs remain subject to the overall
constraint that such purchases are in the Company's interest, including
the maintenance of sufficient resources for investment in existing and
new portfolio companies and the continued payment of dividends to
shareholders.
It is the Board's intention that any buy-backs should be at around a 5
per cent. discount to net asset value, in so far as market conditions
and liquidity permit.
Transactions with the Manager
Details of the transactions that took place with the Manager in the
period can be found in note 5. Details of related party transactions can
be found in note 11.
Outlook
Given the current uncertainty around the coronavirus (Covid-19) pandemic,
the Board is pleased with the relative resilience of the Company's
portfolio during the period and the positive uplifts of some portfolio
companies. The priority of the Board is to give support to the existing
portfolio where it is needed, whilst also taking advantage of new
business ideas which are proving resilient to the current pandemic and
hopefully for the longer term. We believe the portfolio is well
positioned to continue to provide long term growth to shareholders and
that our Manager is similarly positioned to exploit these opportunities.
Dr N E Cross
Chairman
14 September 2020
Responsibility statement
The Directors, Dr Neil Cross, Robin Archibald, Mary Anne Cordeiro,
Margaret Payn, Modwenna Rees-Mogg and Patrick Reeve, are responsible for
preparing the Half-yearly Financial Report. In preparing these condensed
Financial Statements for the period to 30 June 2020 we, the Directors of
the Company, confirm that to the best of our knowledge:
(a) the condensed set of Financial Statements, which has been prepared
in accordance with Financial Reporting Standard 104 "Interim Financial
Reporting", gives a true and fair view of the assets, liabilities,
financial position and profit and loss of the Company as required by DTR
4.2.4R;
(b) the Interim management report includes a fair review of the
information required by DTR 4.2.7R (indication of important events
during the first six months and description of principal risks and
uncertainties for the remaining six months of the year); and
(c) the Interim management report includes a fair review of the
information required by DTR 4.2.8R (disclosure of related parties'
transactions and changes therein).
This Half-yearly Financial Report has not been audited or reviewed by
the Auditor.
For and on behalf of the Board
Dr N E Cross
Chairman
14 September 2020
Portfolio of investments
As at 30 June 2020
Fixed asset % voting Cost Cumulative movement in value Value Change in value for the period*
investments rights GBP'000 GBP'000 GBP'000 GBP'000
------------------- -------- -------- -------------------------------
Quantexa Limited 3.0 773 5,238 6,011 2,809
Radnor House School
(TopCo) Limited 14.8 2,710 1,793 4,503 (225)
Chonais River Hydro
Limited 15.7 2,169 1,977 4,146 25
Proveca Limited 7.2 1,184 2,201 3,385 565
Black Swan Data
Limited 5.7 2,378 - 2,378 -
Gharagain River
Hydro Limited 18.5 1,526 744 2,270 58
Egress Software
Technologies
Limited 2.2 765 1,349 2,114 -
G. Network
Communications
Limited 3.3 337 1,491 1,828 -
Concirrus Limited 3.4 1,632 - 1,632 -
Oxsensis Limited 16.3 1,886 (286) 1,600 (449)
The Street by
Street Solar
Programme Limited 8.1 895 595 1,490 (46)
Cantab Research
Limited (T/A
Speechmatics) 3.7 1,486 - 1,486 -
Elliptic
Enterprises
Limited 1.8 1,402 - 1,402 -
MHS 1 Limited 22.5 1,565 (167) 1,398 (162)
Regenerco Renewable
Energy Limited 7.9 822 483 1,305 (47)
memsstar Limited 30.1 581 683 1,264 53
Oviva AG 3.5 1,058 165 1,223 (218)
Convertr Media
Limited 6.9 1,105 29 1,134 5
The Evewell (Harley
Street) Limited 8.3 1,143 (104) 1,039 (104)
Panaseer Limited 3.2 752 281 1,033 -
Credit Kudos
Limited 4.5 979 - 979 -
MPP Global
Solutions Limited 2.9 950 - 950 -
Alto Prodotto Wind
Limited 6.9 618 299 917 2
Beddlestead Limited 9.8 1,200 (300) 900 (300)
The Q Garden
Company Limited 33.4 934 (98) 836 (96)
SBD Automotive
Limited 2.7 410 421 831 34
Mirada Medical
Limited 12.9 1,321 (638) 683 (2,745)
Locum's Nest
Limited 9.8 675 (22) 653 12
InCrowd Sports
Limited 5.0 636 (14) 622 (198)
Aridhia Informatics
Limited 4.9 950 (354) 596 470
DySIS Medical
Limited 4.7 2,589 (2,032) 557 (546)
Clear Review
Limited 2.9 367 92 459 92
Premier Leisure
(Suffolk) Limited 25.8 454 1 455 (52)
Albion Investment
Properties
Limited 31.8 434 12 446 13
MyMeds&Me Limited 4.6 439 (21) 418 2
Avora Limited 2.2 400 - 400 -
TransFICC Limited 2.6 397 - 397 -
Phrasee Limited 1.9 392 - 392 -
Koru Kids Limited 1.6 345 36 381 (156)
Limitless
Technology
Limited 2.5 380 - 380 -
Erin Solar Limited 15.7 440 (61) 379 (44)
AVESI Limited 8.0 259 106 365 (22)
Cisiv Limited 7.8 695 (361) 334 (67)
OmPrompt Holdings
Limited 3.3 306 (10) 296 -
uMotif Limited 1.1 255 34 289 104
ePatient Network
Limited (T/A
Raremark) 2.4 230 53 283 (27)
Arecor Limited 1.2 220 - 220 -
Healios Limited 0.7 216 - 216 -
Harvest AD Limited 0.0 210 4 214 (11)
Abcodia Limited 3.2 549 (355) 194 -
Zift Channel
Solutions Inc. 1.6 881 (712) 169 (333)
Greenenerco Limited 3.1 95 68 163 (1)
Innovation Broking
Group Limited 6.0 60 96 156 22
Imandra Inc. 1.6 151 - 151 -
Mi-Pay Group plc 19.6 135 - 135 -
Forward Clinical
Limited (T/A
Pando) 1.6 196 (131) 65 (50)
Symetrica Limited 0.3 79 (16) 63 (12)
Sandcroft Avenue
Limited (T/A
Hussle) 2.1 427 (387) 40 (381)
Palm Tree
Technology
Limited 0.5 320 (287) 33 -
Elements Software
Limited 3.3 19 (19) - -
-------------------
Total fixed asset
investments 46,782 11,876 58,658 (2,026)
------------------- -------- -------- ---------------------------- -------- -------------------------------
Current
asset Cost Cumulative movement in value Value Change in value for the period*
investments GBP'000 GBP'000 GBP'000 GBP'000
------------ -------- ---------------------------- -------- -------------------------------
SVS Albion
OLIM UK
Equity
Income
Fund 2,264 (602) 1,662 (535)
Total
current
asset
investments 2,264 (602) 1,662 (535)
------------ -------- ---------------------------- -------- -------------------------------
* As adjusted for additions and disposals during the period.
Investment
realisations
in the period
to 30 June Cost Opening carrying value Disposal proceeds Total realised gain/(loss) Gain/(loss) on opening value
2020 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
-------------- -------- ---------------------- ----------------- -------------------------- ----------------------------
Disposals:
TWCL Limited 1,502 1,406 1,402 (100) (4)
Loan stock
repayments
and other:
memsstar
Limited 64 64 64 - -
Alto
Prodotto
Wind
Limited 15 23 23 8 -
Greenenerco
Limited 3 4 4 1 -
Escrow
adjustments - - 341 341 341
Total 1,584 1,497 1,834 250 337
-------------- -------- ---------------------- ----------------- -------------------------- ----------------------------
Unrealised losses on fixed asset investments (2,026)
Realised gains on fixed asset investments 337
Unrealised losses on current asset investments (535)
----------------------------------------------------- -------
Total losses on investments as per Income statement (2,224)
----------------------------------------------------- -------
Condensed income statement
Unaudited Unaudited Audited
six months ended six months ended year ended
30 June 2020 30 June 2019 31 December 2019
---------------------------------------------------------- ---- ---------------------------- ---------------------------- ----------------------------
Revenue Capital Total Revenue Capital Total Revenue Capital Total
Note GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
---------------------------------------------------------- ---- -------- -------- -------- -------- -------- -------- -------- -------- --------
(Losses)/gains on investments 3 - (2,224) (2,224) - 11,297 11,297 - 11,170 11,170
Investment income 4 348 - 348 694 - 694 1,416 - 1,416
Investment management fee 5 (260) (779) (1,039) (250) (752) (1,002) (529) (1,587) (2,116)
Other expenses (163) - (163) (153) - (153) (306) - (306)
---- -------- -------- -------- -------- -------- -------- -------- -------- --------
(Loss)/profit on ordinary activities before tax (75) (3,003) (3,078) 291 10,545 10,836 581 9,583 10,164
Tax (charge)/credit on ordinary activities - - - (24) 24 - (62) 62 -
---- -------- -------- -------- -------- -------- -------- -------- -------- --------
(Loss)/profit and total comprehensive income attributable
to shareholders (75) (3,003) (3,078) 267 10,569 10,836 519 9,645 10,164
---- -------- -------- -------- -------- -------- -------- -------- -------- --------
Basic and diluted (loss)/return per share (pence)* 7 (0.07) (2.70) (2.77) 0.25 9.83 10.08 0.47 8.81 9.28
---------------------------------------------------------- ---- -------- -------- -------- -------- -------- -------- -------- -------- --------
* adjusted for treasury shares
Comparative figures have been extracted from the unaudited Half-yearly
Financial Report for the six months ended 30 June 2019 and the audited
statutory accounts for the year ended 31 December 2019.
The accompanying notes form an integral part of this Half-yearly
Financial Report.
The total column of this Condensed income statement represents the
profit and loss account of the Company. The supplementary revenue and
capital columns have been prepared in accordance with The Association of
Investment Companies' Statement of Recommended Practice.
Condensed balance sheet
Unaudited Unaudited Audited
30 June 2020 30 June 2019 31 December 2019
Note GBP'000 GBP'000 GBP'000
------------------------------------------------ ---- ------------- ------------- -----------------
Fixed asset investments 58,658 81,090 57,468
Current assets
Current asset investments 1,662 2,152 2,193
Trade and other receivables less than one year 132 838 527
Cash and cash equivalents 26,200 11,879 32,468
------------- ------------- -----------------
27,994 14,869 35,188
Total assets 86,652 95,959 92,656
Payables: amounts falling due within one year
Trade and other payables less than one year (659) (636) (634)
------------- ------------- -----------------
Total assets less current liabilities 85,993 95,323 92,022
------------- ------------- -----------------
Equity attributable to equity holders
Called up share capital 8 1,287 1,292 1,296
Share premium 35,246 34,642 34,949
Capital redemption reserve 42 28 28
Unrealised capital reserve 11,234 27,436 13,708
Realised capital reserve 23,038 10,763 23,567
Other distributable reserve 15,146 21,162 18,474
------------- ------------- -----------------
Total equity shareholders' funds 85,993 95,323 92,022
------------- ------------- -----------------
Basic and diluted net asset value per share
(pence)* 77.85 85.15 82.58
------------------------------------------------ ---- ------------- ------------- -----------------
* excluding treasury shares
Comparative figures have been extracted from the unaudited Half-yearly
Financial Report for the six months ended 30 June 2019 and the audited
statutory accounts for the year ended 31 December 2019.
The accompanying notes form an integral part of this Half-yearly
Financial Report.
These Financial Statements were approved by the Board of Directors and
authorised for issue on 14 September 2020 and were signed on its behalf
by
Dr N E Cross
Chairman
Company number: 04114310
Condensed statement of changes in equity
Capital Unrealised Realised Other
Called up share Share redemption capital capital distributable
capital premium reserve reserve reserve* reserve* Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
----------------------------------------------------- --------------- ------- ---------- ---------- -------- ------------- -------
As at 1 January 2020 1,296 34,949 28 13,708 23,567 18,474 92,022
Loss and total comprehensive income for the period - - - (2,561) (442) (75) (3,078)
Transfer of previously unrealised losses on disposal
of investments - - - 87 (87) - -
Purchase of own shares for cancellation (14) - 14 - - (1,052) (1,052)
Issue of equity 4 314 - - - - 318
Cost of issue of equity - (16) - - - - (16)
Dividends paid - - - - - (2,201) (2,201)
----------------------------------------------------- --------------- ------- ---------- ---------- -------- ------------- -------
As at 30 June 2020 1,287 35,246 42 11,234 23,038 15,146 85,993
----------------------------------------------------- --------------- ------- ---------- ---------- -------- ------------- -------
As at 1 January 2019 1,187 26,621 28 16,697 10,933 24,431 79,897
Return/(loss) and total comprehensive income for the
period - - - 11,274 (705) 267 10,836
Transfer of previously unrealised gains on disposal
of investments - - - (535) 535 - -
Purchase of own shares for treasury - - - - - (1,299) (1,299)
Issue of equity 105 8,225 - - - - 8,330
Cost of issue of equity - (204) - - - - (204)
Dividends paid - - - - - (2,237) (2,237)
----------------------------------------------------- --------------- ------- ---------- ---------- -------- ------------- -------
As at 30 June 2019 1,292 34,642 28 27,436 10,763 21,162 95,323
----------------------------------------------------- --------------- ------- ---------- ---------- -------- ------------- -------
As at 1 January 2019 1,187 26,621 28 16,697 10,933 24,431 79,897
Return and total comprehensive income for the year - - - 1,387 8,258 519 10,164
Transfer of previously unrealised gains on disposal
of investments - - - (4,376) 4,376 - -
Purchase of shares for treasury - - - - - (2,016) (2,016)
Issue of equity 109 8,547 - - - - 8,656
Cost of issue of equity - (219) - - - - (219)
Dividends paid - - - - - (4,460) (4,460)
----------------------------------------------------- --------------- ------- ---------- ---------- -------- ------------- -------
As at 31 December 2019 1,296 34,949 28 13,708 23,567 18,474 92,022
----------------------------------------------------- --------------- ------- ---------- ---------- -------- ------------- -------
*These reserves amount to GBP38,184,000 (30 June 2019: GBP31,925,000; 31
December 2019: GBP42,041,000) which is considered distributable.
Condensed statement of cash flows
Unaudited Unaudited Audited year ended
six months ended 30 June 2020 six months ended 30 June 2019 31 December 2019
GBP'000 GBP'000 GBP'000
-------------------- ------------------------------ ------------------------------ ------------------
Cash flow from
operating
activities
Loan stock income
received 269 739 1,360
Dividend income
received 82 140 183
Deposit interest
received 51 21 56
Investment
management fee
paid (996) (944) (2,079)
Other cash payments (180) (159) (291)
Corporation tax paid - - -
------------------------------ ------------------
Net cash flow from
operating
activities (774) (203) (771)
Cash flow from
investing
activities
Purchase of current
asset investments (4) - -
Purchase of fixed
asset investments (3,497) (2,728) (7,022)
Disposal of fixed
asset investments 952 3,060 31,142
Net cash flow from
investing
activities (2,549) 332 24,120
Cash flow from
financing
activities
Issue of share
capital - 7,804 7,804
Cost of issue of
equity - (2) (17)
Dividends paid (1,898) (1,895) (3,794)
Purchase of own
shares (including
costs) (1,047) (1,299) (2,016)
Net cash flow from
financing
activities (2,945) 4,608 1,977
(Decrease)/increase
in cash and cash
equivalents (6,268) 4,737 25,326
Cash and cash
equivalents at
start of period 32,468 7,142 7,142
------------------------------ ------------------------------ ------------------
Cash and cash
equivalents at end
of period 26,200 11,879 32,468
-------------------- ------------------------------ ------------------------------ ------------------
Notes to the condensed Financial Statements
1. Basis of preparation
The condensed Financial Statements have been prepared in accordance with
the historical cost convention, modified to include the revaluation of
investments, in accordance with applicable United Kingdom law and
accounting standards, including Financial Reporting Standard 102 ("FRS
102"), Financial Reporting Standard 104 -- Interim Financial Reporting
("FRS 104"), and with the Statement of Recommended Practice "Financial
Statements of Investment Trust Companies and Venture Capital Trusts"
("SORP") issued by The Association of Investment Companies ("AIC"). The
Financial Statements have been prepared on a going concern basis.
The preparation of the Financial Statements requires management to make
judgements and estimates that affect the application of policies and
reported amounts of assets, liabilities, income and expenses. The most
critical estimates and judgements relate to the determination of
carrying value of investments at fair value through profit and loss
("FVTPL"). The Company values investments by following the International
Private Equity and Venture Capital Valuation ("IPEV") Guidelines as
issued in 2018 and further detail on the valuation techniques used are
outlined in note 2 below.
This Half-yearly Financial Report has not been audited, nor has it been
reviewed by the auditor pursuant to the FRC's guidance on Review of
interim financial information.
Company information can be found on page 2 of the Half-yearly Financial
Report.
2. Accounting policies
Fixed and current asset investments
The Company's business is investing in financial assets with a view to
profiting from their total return in the form of income and capital
growth. This portfolio of financial assets is managed, and its
performance evaluated on a fair value basis, in accordance with a
documented investment policy, and information about the portfolio is
provided internally on that basis to the Board.
In accordance with the requirements of FRS 102, those undertakings in
which the Company holds more than 20 per cent. of the equity as part of
an investment portfolio are not accounted for using the equity method.
In these circumstances the investment is measured at FVTPL.
Upon initial recognition (using trade date accounting) investments,
including loan stock, are classified by the Company as FVTPL and are
included at their initial fair value, which is cost (excluding expenses
incidental to the acquisition which are written off to the Income
statement).
Subsequently, the investments are valued at fair value, which is
measured as follows:
-- Investments listed on recognised exchanges, including liquid open-ended
equity funds, are valued at their bid prices at the end of the accounting
period or otherwise at fair value based on published price quotations;
-- Unquoted investments, where there is not an active market, are valued
using an appropriate valuation technique in accordance with the IPEV
Guidelines. Indicators of fair value are derived using established
methodologies including earnings multiples, revenue multiples, the level
of third party offers received, cost or price of recent investment rounds,
net assets and industry valuation benchmarks. Where price of recent
investment is used as a starting point for estimating fair value at
subsequent measurement dates, this has been benchmarked using an
appropriate valuation technique permitted by the IPEV guidelines.
-- In situations where cost or price of recent investment is used,
consideration is given to the circumstances of the portfolio company
since that date in determining fair value. This includes consideration of
whether there is any evidence of deterioration or strong definable
evidence of an increase in value. In the absence of these indicators, the
investment in question is valued at the amount reported at the previous
reporting date. Examples of events or changes that could indicate a
diminution include:
-- the performance and/or prospects of the underlying business are
significantly below the expectations on which the investment was
based;
-- a significant adverse change either in the portfolio company's
business or in the technological, market, economic, legal or
regulatory environment in which the business operates; or
-- market conditions have deteriorated, which may be indicated by a
fall in the share prices of quoted businesses operating in the
same or related sectors.
Investments are recognised as financial assets on legal completion of
the investment contract and are de-recognised on legal completion of the
sale of an investment.
Dividend income is not recognised as part of the fair value movement of
an investment but is recognised separately as investment income through
the other distributable reserve when a share becomes ex-dividend.
Current assets and payables
Receivables, payables and cash are carried at amortised cost, in
accordance with FRS 102. There are no financial liabilities other than
payables.
Investment income
Equity income
Dividend income is included in revenue when the investment is quoted
ex-dividend.
Unquoted loan stock and other preferred income
Fixed returns on non-equity shares and debt securities are recognised
when the Company's right to receive payment and expected settlement is
established. Where interest is rolled up and/or payable at redemption
then it is recognised as income unless there is reasonable doubt as to
its receipt.
Bank interest income
Interest income is recognised on an accruals basis using the rate of
interest agreed with the bank.
Investment management fees, performance incentive fees and expenses
All expenses have been accounted for on an accruals basis. Expenses are
charged through the other distributable reserve except the following
which are charged through the realised capital reserve:
-- 75 per cent. of management fees and performance incentive fees, if any,
are allocated to the realised capital reserve. This is in line with the
Board's expectation that over the long term 75 per cent. of the Company's
investment returns will be in the form of capital gains; and
-- expenses which are incidental to the purchase or disposal of an
investment are charged through the realised capital reserve.
Taxation
Taxation is applied on a current basis in accordance with FRS 102.
Current tax is tax payable (refundable) in respect of the taxable profit
(tax loss) for the current period or past reporting periods using the
tax rates and laws that have been enacted or substantively enacted at
the financial reporting date. Taxation associated with capital expenses
is applied in accordance with the SORP.
Deferred tax is provided in full on all timing differences at the
reporting date. Timing differences are differences between taxable
profits and total comprehensive income as stated in the Financial
Statements that arise from the inclusion of income and expenses in tax
assessments in periods different from those in which they are recognised
in the Financial Statements. As a VCT the Company has an exemption from
tax on capital gains. The Company intends to continue meeting the
conditions required to obtain approval as a VCT in the foreseeable
future. The Company, therefore, should have no material deferred tax
timing differences arising in respect of the revaluation or disposal of
investments and the Company has not provided for any deferred tax.
Reserves
Share premium
This reserve accounts for the difference between the price paid for
shares and the nominal value of the shares, less issue costs.
Capital redemption reserve
This reserve accounts for amounts by which the issued share capital is
diminished through the repurchase and cancellation of the Company's own
shares.
Unrealised capital reserve
Increases and decreases in the valuation of investments held at the
period end against cost are included in this reserve.
Realised capital reserve
The following are disclosed in this reserve:
-- gains and losses compared to cost on the realisation of investments, or
permanent diminutions in value;
-- expenses, together with the related taxation effect, charged in
accordance with the above policies; and
-- dividends paid to equity holders.
Other distributable reserve
The special reserve, treasury share reserve and the revenue reserve were
combined in 2012 to form a single reserve named other distributable
reserve.
This reserve accounts for movements from the revenue column of the
Income statement, the payment of dividends, the buy-back of shares and
other non-capital realised movements.
Dividends
Dividends by the Company are accounted for in the period in which the
dividend is paid or approved at the Annual General Meeting.
Segmental reporting
The Directors are of the opinion that the Company is engaged in a single
operating segment of business, being investment in smaller companies
principally based in the UK.
3. (Losses)/gains on investments
Audited
Unaudited Unaudited year ended
six months ended 30 June 2020 six months ended 30 June 2019 31 December 2019
GBP'000 GBP'000 GBP'000
Unrealised
(losses)/gains on
fixed asset
investments (2,026) 11,044 1,115
Unrealised
(losses)/gains on
current asset
investments (535) 230 272
Realised gains on
fixed asset
investments 337 23 9,783
(2,224) 11,297 11,170
------------------------------ ------------------------------ -----------------
4. Investment income
Unaudited Unaudited Audited
six months ended six months ended year ended
30 June 2020 30 June 2019 31 December 2019
GBP'000 GBP'000 GBP'000
---------------------
Loan stock interest
and other fixed
returns 269 507 1,105
UK dividend income 30 167 253
Bank deposit interest 49 20 58
----------------- ----------------- -----------------
348 694 1,416
----------------- ----------------- -----------------
5. Investment management fee
Unaudited Unaudited Audited
six months ended six months ended year ended
30 June 2020 30 June 2019 31 December 2019
GBP'000 GBP'000 GBP'000
Investment management
fee charged to
revenue 260 250 529
Investment management
fee charged to
capital 779 752 1,587
----------------- ----------------- -----------------
1,039 1,002 2,116
----------------- ----------------- -----------------
Further details of the Management agreement under which the investment
management fee is paid are given in the Strategic report on pages 13 and
14 of the Annual Report and Financial Statements for the year ended 31
December 2019.
During the period, services for a total value of GBP1,039,000 (30 June
2019: GBP1,002,000; 31 December 2019: GBP2,116,000) were purchased by
the Company from Albion Capital Group LLP. At the financial period end,
the amount due to Albion Capital Group LLP in respect of these services
was GBP561,000 (30 June 2019: GBP539,000; 31 December 2019: GBP518,000).
The total annual running costs of the Company are capped at an amount
equal to 2.75 per cent. of the Company's net assets, with any excess
being met by Albion Capital by way of a reduction in management fees.
During the period, the management fee was reduced by GBP37,000 as a
result of this cap (30 June 2019: GBP88,000; 31 December 2019:
GBP136,000).
During the period, the Company was not charged by Albion Capital Group
LLP in respect of Patrick Reeve's services as a Director (30 June 2019
and 31 December 2019: nil).
Albion Capital Group LLP, the Manager, its partners and staff (including
Patrick Reeve), hold 1,262,130 Ordinary shares in the Company.
Albion Capital Group LLP is, from time to time, eligible to receive
arrangement fees and monitoring fees from portfolio companies. During
the period to 30 June 2020, fees of GBP99,000 attributable to the
investments of the Company were received pursuant to these arrangements
(30 June 2019: GBP123,000; 31 December 2019: GBP241,000).
During the period, GBP4,000 (30 June 2019 and 31 December 2019: GBPnil)
was invested in the SVS Albion OLIM UK Equity Income Fund ("OUEIF") as
part of the Company's management of surplus liquid funds. To avoid
double charging, Albion agreed to reduce its management fee relating to
the investment in the OUEIF by 0.75 per cent., which represents the
OUEIF management fee charged by OLIM. This resulted in a further
reduction of the management fee of GBP6,000 (30 June 2019: GBP8,000; 31
December 2019: GBP16,000).
6. Dividends Unaudited Unaudited Audited
six months ended six months ended year ended
30 June 2020 30 June 2019 31 December 2019
GBP'000 GBP'000 GBP'000
----------------------- ---------------- ---------------- -----------------
Dividend of 2.00p per
share paid on 28 June
2019 - 2,237 2,237
Dividend of 2.00p per
share paid on 31
December 2019 - - 2,223
Dividend of 2.00p per
share paid on 30 June
2020 2,201 - -
2,201 2,237 4,460
---------------- ---------------- -----------------
The Directors have declared a dividend of 1.95 pence per Ordinary share
(total approximately GBP2,154,000) payable on 31 December 2020, to
shareholders on the register on 4 December 2020. The Board has also
declared a special dividend of 9.00 pence per Ordinary share (total
approximately GBP10,052,000), payable on 30 October 2020 to shareholders
on the register on 9 October 2020. Details of the new variable dividend
policy and the special dividend can be found in the Interim management
report above.
7. Basic and diluted (loss)/return per share
Ordinary Unaudited six months ended Unaudited six months ended Audited year ended
shares 30 June 2020 30 June 2019 31 December 2019
Revenue Capital Revenue Capital Revenue Capital
--------------
(Loss)/return
attributable
to equity
shares
(GBP'000) (75) (3,003) 267 10,569 519 9,645
Weighted
average
shares in
issue 110,973,597 107,475,312 109,562,226
(Loss)/return
per Ordinary
share
(pence) (0.07) (2.70) 0.25 9.83 0.47 8.81
The weighted average number of shares is calculated after adjusting for
treasury shares of 18,196,470 (30 June 2019: 17,279,470; 31 December
2019: 18,196,470).
There are no convertible instruments, derivatives or contingent share
agreements in issue, and therefore no dilution affecting the
(loss)/return per share. The basic (loss)/return per share is therefore
the same as the diluted (loss)/return per share.
8. Share capital
Allotted, called up and fully paid shares of 1 penny Unaudited Unaudited Audited
each 30 June 2020 30 June 2019 31 December 2019
-----------------------------------------------------
Number of shares 128,657,872 129,232,525 129,624,437
Nominal value of allotted shares (GBP'000) 1,287 1,292 1,296
Voting rights (number of shares net of treasury
shares) 110,461,402 111,953,055 111,427,967
During the period to 30 June 2020 the Company purchased 1,387,000
Ordinary shares (nominal value of GBP13,870) for cancellation at a cost
of GBP1,052,000 including stamp duty. The total number of Ordinary
shares held in treasury as at 30 June 2020 was 18,196,470 (30 June 2019:
17,279,470; 31 December 2019: 18,196,470) representing 14.1 per cent. of
the Ordinary shares in issue as at 30 June 2020.
Under the terms of the Dividend Reinvestment Scheme, the following new
Ordinary shares of nominal value 1 penny each were allotted during the
period to 30 June 2020:
Number
of
Date of shares Aggregate nominal value of shares Issue price Net invested Opening market price on allotment date (pence per
allotment allotted (GBP'000) (pence per share) (GBP'000) share)
30 June
2020 421,235 4 75.37 302 72.00
9. Commitments and contingencies
As at 30 June 2020, the Company had no financial commitments in respect
of investments (30 June 2019 and 31 December 2019: GBPnil).
There are no contingencies or guarantees of the Company as at 30 June
2020 (30 June 2019 and 31 December 2019: GBPnil).
10. Post balance sheet events
Since 30 June 2020, the Company has completed the following material
transactions:
-- Investment of GBP1,967,000 in Quantexa Limited;
-- Investment of GBP1,082,000 in Oxsensis Limited;
-- Investment of GBP1,020,000 in a new portfolio company, which provides a
cloud platform that enables corporates to purchase digital gift cards and
to distribute them to employees and customers;
-- Investment of GBP426,000 in uMotif Limited; and
-- Investment of GBP288,000 in Phrasee Limited.
11. Related party transactions
Other than transactions with the Manager as disclosed in note 5, there
are no other related party transactions requiring disclosure.
12. Going concern
The Board has conducted a detailed assessment of the Company's ability
to meet its liabilities as they fall due. Cash flow forecasts are
updated and discussed quarterly at Board level and have been stress
tested to allow for the forecasted impact of coronavirus (Covid-19). The
Board has revisited and updated their assessment of liquidity risk and
concluded that it remains unchanged since the last Annual Report and
Financial Statements. Further details can be found on page 66 of the
Annual Report and Financial Statements for the year ended 31 December
2019.
The portfolio of investments is diversified in terms of sector, and the
major cash outflows of the Company (namely investments, dividends and
share buy-backs) are within the Company's control. Accordingly, after
making diligent enquiries, the Directors have a reasonable expectation
that the Company has adequate cash and liquid resources to continue in
operational existence for the foreseeable future. For this reason, the
Directors have adopted the going concern basis in preparing this
Half-yearly Financial Report and this is in accordance with the Guidance
on Risk Management, Internal Control and Related Financial and Business
Reporting issued by the Financial Reporting Council.
13. Risks and uncertainties
In addition to the risks and uncertainties outlined in the Interim
management report, the Board confirms that the following major risks and
uncertainties facing the Company have not materially changed from those
identified in the Annual Report and Financial Statements for the year
ended 31 December 2019. The impact of the Coronavirus (Covid-19)
pandemic has created heightened uncertainty but has not changed the
nature of these risks. The Board considers that the processes for
mitigating these risks remain appropriate.
1. Investment, performance and valuation risk
The risk of investment in poor quality businesses, which could reduce
the capital and income returns to shareholders and could negatively
impact on the Company's current and future valuations.
By nature, smaller unquoted businesses, such as those that qualify for
venture capital trust purposes, are more volatile than larger, long
established businesses.
Investments in open-ended equity funds result in exposure to market risk
through movements in price per unit.
The Company's investment valuation methodology is reliant on the
accuracy and completeness of information that is issued by portfolio
companies. In particular, the Directors may not be aware of or take into
account certain events or circumstances which occur after the
information issued by such companies is reported.
To reduce this risk, the Board places reliance upon the skills and
expertise of the Manager and its track record over many years of making
successful investments in this segment of the market. In addition, the
Manager operates a formal and structured investment appraisal and review
process, which includes an Investment Committee, comprising investment
professionals from the Manager and at least one external investment
professional. The Manager also invites and takes account of comments
from non-executive Directors of the Company on matters discussed at the
Investment Committee meetings. Investments are actively and regularly
monitored by the Manager (investment managers normally sit on portfolio
company boards), including the level of diversification in the portfolio,
and the Board receives detailed reports on each investment as part of
the Manager's report at quarterly board meetings. The Board and Manager
regularly reviews the deployment of cash resources into equity markets,
the extent of exposure and performance of the exposure.
The unquoted investments held by the Company are designated at fair
value through profit or loss and valued in accordance with the
International Private Equity and Venture Capital Valuation Guidelines.
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.
1. VCT approval risk
The Company must comply with section 274 of the Income Tax Act 2007
which enables its investors to take advantage of tax relief on their
investment and on future returns. Breach of any of the rules enabling
the Company to hold VCT status could result in the loss of that status.
To reduce this risk, the Board has appointed the Manager, which has a
team with significant experience in venture capital trust management
used to operating within the requirements of the venture capital trust
legislation. In addition, to provide further formal reassurance, the
Board has appointed Philip Hare & Associates LLP as its taxation adviser,
who report quarterly to the Board to independently confirm compliance
with the venture capital trust legislation, to highlight areas of risk
and to inform on changes in legislation. Each investment in a portfolio
company is also pre-cleared with our professional advisers or H.M.
Revenue & Customs. The Company monitors closely the extent of qualifying
holdings and addresses this as required.
1. Regulatory and compliance risk
The Company is listed on The London Stock Exchange and is required to
comply with the rules of the UK Listing Authority, as well as with the
Companies Act, Accounting Standards and other legislation. Failure to
comply with these regulations could result in a delisting of the
Company's shares, or other penalties under the Companies Act or from
financial reporting oversight bodies.
Board members and the Manager have experience of operating at senior
levels within or advising quoted companies. In addition, the Board and
the Manager receive regular updates on new regulation, including
legislation on the management of the Company, from its auditor, lawyers
and other professional bodies. The Company is subject to compliance
checks through the Manager's compliance officer, and any issues arising
from compliance or regulation are reported to its own board on a monthly
basis. These controls are also reviewed as part of the quarterly Board
meetings, and also as part of the review work undertaken by the
Manager's compliance officer. The report on controls is also evaluated
by the internal auditors.
1. Market value of Ordinary shares
The market value of Ordinary shares can fluctuate. The market value of
an Ordinary share, as well as being affected by its net asset value and
prospective net asset value, also takes into account its dividend yield
and prevailing interest rates. As such, the market value of an Ordinary
share may vary considerably from its underlying net asset value. The
market prices of shares in quoted investment companies can, therefore,
be at a discount or premium to the net asset value at different times,
depending on supply and demand, market conditions, general investor
sentiment and other factors, including the ability to exercise share
buybacks. Accordingly, the market price of the Ordinary shares may not
fully reflect their underlying net asset value.
The Company operates a share buyback policy, which is designed to limit
the discount at which the Ordinary shares trade to around 5 per cent. to
net asset value, by providing a purchaser through the Company in absence
of market purchasers. From time to time buy-backs cannot be applied, for
example when the Company is subject to a close period, or if it were to
exhaust and could not renew any buyback authorities.
New Ordinary shares are issued at sufficient premium to net asset value
to cover the costs of issue and to avoid asset value dilution to
existing investors.
1. Operational and internal control risk
The Company relies on a number of third parties, in particular the
Manager, for the provision of investment management and administrative
functions. Failures in key systems and controls within the Manager's
business could place assets of the Company at risk or result in reduced
or inaccurate information being passed to the Board or to shareholders.
The Audit Committee reviews the Internal Audit Reports prepared by the
Manager's internal auditors, PKF Littlejohn LLP. On an annual basis, the
Audit Committee chairman 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 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.
1. Economic, political and social risk
Changes in economic conditions, including, for example, interest rates,
rates of inflation, industry conditions, competition, political and
diplomatic events and other factors could substantially and adversely
affect the Company's prospects in a number of ways. This also includes
risks of social upheaval, including from infection and population
re-distribution.
Economic risk challenges as a result of healthcare pandemics/infection.
The Company invests in a diversified portfolio of companies across a
number of industry sectors and in addition often invests in a mixture of
instruments in portfolio companies and has a policy of minimising any
external bank borrowings within portfolio companies.
At any given time, the Company has sufficient cash resources to meet its
operating requirements, including share buy backs and follow on
investments.
In common with most commercial operations, exogenous risks over which
the Company has no control are always a risk. 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 and influenced by global
supply and demand factors.
14. Other information
The information set out in this Half-yearly Financial Report does not
constitute the Company's statutory accounts within the terms of section
434 of the Companies Act 2006 for the periods ended 30 June 2020 and 30
June 2019 and is unaudited. The information for the year ended 31
December 2019, does not constitute statutory accounts within the terms
of section 434 of the Companies Act 2006 but is derived from the audited
statutory accounts for the financial year, which have been delivered to
the Registrar of Companies. The Auditor reported on those accounts;
their report was unqualified and did not contain a statement under s498
(2) or (3) of the Companies Act 2006.
15. Publication
This Half-yearly Financial Report is being sent to shareholders and
copies will be made available to the public at the registered office of
the Company, Companies House, the National Storage Mechanism and also
electronically at
https://www.globenewswire.com/Tracker?data=BnNvOEr6VxxJxSZ74H9mkdJDhmdP6KMUGMJIhnpqrzKCOafTnMrcZt-N12hro7NpEfdqf_0jg5E8dGcEyKxbPp72IB_sLwFos0aDhbBlgVZ-xtYTTJ2QXmmJv0fE75Y4
www.albion.capital/funds/AATG, where the Report can be accessed via a
link in the 'Financial Reports and Circulars' section.
Attachment
-- Current portfolio sector allocation
https://ml-eu.globenewswire.com/Resource/Download/bf763711-ec07-4c59-8d52-b6dee1efac9d
(END) Dow Jones Newswires
September 14, 2020 08:34 ET (12:34 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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