TIDMAATG 
 
 
   Albion Technology & General VCT PLC 
 
   LEI number: 213800TKJUY376H3KN16 
 
   As required by the UK Listing Authority's Disclosure Guidance and 
Transparency Rules 4.1 and 6.3, Albion Technology & General VCT PLC 
today makes public its information relating to the Annual Report and 
Financial Statements for the year ended 31 December 2020. 
 
   This announcement was approved for release by the Board of Directors on 
26 March 2021. 
 
   This announcement has not been audited. 
 
   The Annual Report and Financial Statements for the year ended 31 
December 2020 (which have been audited), will shortly be sent to 
shareholders. Copies of the full Annual Report and Financial Statements 
will be shown via the Albion Capital Group LLP website by clicking 
https://www.globenewswire.com/Tracker?data=PVnDoECJEFxyrV2mKasD0zjDbT_f4aKewzt2Ro_oSQSW3Ijbq3rZYPjbf9jo7HPoSyksHtNipSv9UsAxqdJIDOrw9h0rl3zX3pFqhFqA6mFmbHPiegpUeIHfZ8zLaXq-avRw6TKlUwe5Cd_17qBgxl0oLH9GBgKlSUM6K7wpc0w= 
www.albion.capital/funds/AATG/31Dec20.pdf. The information contained in 
the Annual Report and Financial Statements will include information as 
required by the Disclosure Guidance and Transparency Rules, including 
Rule 4.1. 
 
 
 
   Investment 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 ("VCT"). 
 
   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 an investment. 
 
   Funds held either 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 at the time of investment. 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. 
 
   Background to the Company 
 
   The Company is a VCT which raised GBP14.3 million in December 2000, 2002 
and raised a further GBP35.0 million during 2006 through the launch of a 
C share issue. The Company has raised a further GBP54.7 million under 
the Albion VCTs' Top Up Offers since January 2011. 
 
   On 15 November 2013, the Company acquired the assets and liabilities of 
Albion Income & Growth VCT PLC in exchange for new shares in the Company 
resulting in a further GBP28.1 million of net assets. 
 
   Financial calendar 
 
 
 
 
 
Annual General Meeting                                  Noon on 27 May 2021 
Record date for first dividend                                  4 June 2021 
 
Payment date of first dividend                                 30 June 2021 
Announcement of Half-yearly results for the six months       September 2021 
 ending 30 June 2021 
 
 
   Financial summary 
 
 
 
 
185.30p  Total shareholder value per Ordinary share since launch 
         ------------------------------------------------------- 
 
(0.28)p  Total loss per share for the year ended 31 December 
          2020 (0.3% loss on opening net asset value per share) 
         ------------------------------------------------------- 
 
12.95p   Total tax-free dividend per Ordinary share paid in 
          the year to 31 December 2020 
         ------------------------------------------------------- 
 
69.35p   Net asset value per Ordinary share as at 31 December 
          2020 
         ------------------------------------------------------- 
 
 
 
 
 
 
                          31 December 2020 (pence  31 December 2019 (pence 
                                       per share)        per share) 
 
Opening net asset value                     82.58                    77.40 
Capital (loss)/return                      (0.06)                     8.81 
Revenue (loss)/return                      (0.22)                     0.47 
                          -----------------------  ----------------------- 
Total (loss)/return                        (0.28)                     9.28 
Ordinary dividends paid                    (3.95)                   (4.00) 
Special dividend paid                      (9.00)                        - 
Impact from share 
 capital movements                              -                   (0.10) 
                          -----------------------  ----------------------- 
Net asset value                             69.35                    82.58 
------------------------  -----------------------  ----------------------- 
 
Total shareholder value                                       Ordinary share 
to 31 December 2020                                        (pence per share) 
------------------------  -------------------------------------------------- 
 
Total dividends paid 
during the year 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 
      31 December 2020                                                 12.95 
Total dividends paid to 
 31 December 2020                                                     115.95 
Net asset value as at 31 
 December 2020                                                         69.35 
                          -------------------------------------------------- 
Total shareholder value 
 to 31 December 2020                                                  185.30 
                          -------------------------------------------------- 
 
 
   In addition to the dividends summarised above, the Board has declared a 
first dividend for the year ending 31 December 2021 of 1.73 pence per 
share to be paid on 30 June 2021 to shareholders on the register on 4 
June 2021. 
 
   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. 
 
   Chairman's statement 
 
   Introduction 
 
   In a year which has been difficult for many people and businesses, our 
portfolio companies have demonstrated resilience and, in many cases, 
growth, providing products and services that are both innovative and 
necessary, even in these uncertain times. Against the difficult backdrop 
occasioned by the pandemic, the results for the Company show a small 
total loss of 0.28 pence per share for the year ended 31 December 2020. 
This is a very creditable performance given the challenging economic 
conditions of the last twelve months. 
 
   Results and dividends 
 
   As at 31 December 2020, the net asset value was 69.35 pence per share 
compared to 82.58 pence per share at 31 December 2019. The total loss 
after tax was GBP0.3 million compared to GBP10.2 million total return in 
the year to 31 December 2019. 
 
   The Company paid dividends totalling 12.95 pence per share during the 
year ended 31 December 2020 (2019: 4.0 pence per share). This year's 
dividends included a special dividend of 9.0 pence per share, paid on 30 
October 2020, to maintain the Company's VCT status under HMRC rules 
following some very successful realisations in the prior year. 
Notwithstanding the special dividend paid during the year, the dividend 
objective of the Board is to provide shareholders with a strong, 
predictable dividend flow. 
 
   As set out in the Half-yearly Financial Report to 30 June 2020, the 
Board considered it appropriate to move to a variable dividend policy 
targeting an annual dividend yield of around 5%, based on prevailing net 
asset value rather than at a fixed rate, as had been the case in the 
past. Semi-annual dividends will be paid, calculated as 2.5% of the most 
recently announced net asset value when the dividend is declared (in 
most cases this will be the net asset value announced in the Half-yearly 
Financial Report or in the Annual Report and Financial Statements). 
Therefore, the Board has declared a first dividend for the year ending 
31 December 2021 of 1.73 pence per share to be paid on 30 June 2021 to 
shareholders on the register on 4 June 2021. 
 
   Investment portfolio 
 
   The results for the year showed net gains on investments of GBP1.5 
million, against gains of GBP11.2 million for the previous year, which 
were largely driven by unrealised gains across the portfolio. Quantexa 
increased in value by GBP2.8 million following an externally led funding 
round in which we participated, and Proveca increased in value by GBP1.2 
million following strong trading across Europe. Against this, unrealised 
write-downs were made against our investment in Mirada Medical (GBP2.7 
million) as their direct sales model into hospitals became difficult 
during the Coronavirus (Covid-19) pandemic, and Black Swan Data (GBP1.0 
million) reflecting a restructure to focus on its data analytics 
business. 
 
   The company had a number of investment realisations in the year: its 
investment in G. Network Communications was sold for a total return on 
all monies invested of 3.8 times cost or 31% IRR; and its investment in 
Clear Review was sold generating a return of 2.1 times cost within a 
relatively short 16 month holding period. These gains were partially 
offset by a realised loss on the sale of our holding in the SVS Albion 
OLIM UK Equity Income Fund. Further details on the above disposals, and 
other realisations, can be found in the realisations table on page 26 of 
the full Annual Report and Financial Statements. 
 
   During the year, a total of GBP9.2 million was deployed into portfolio 
companies, of which GBP4.4 million was invested across six new portfolio 
companies, all of which are likely to require further investment as the 
companies prove themselves and grow: 
 
 
   -- GBP1.6 million into Concirrus, a software provider bringing real-time 
      behavioural data analytics to the marine and transport insurance sector; 
 
   -- GBP1.0 million into The Voucher Market (trading as WeGift), a provider of 
      a cloud platform that enables corporates to purchase digital gift cards 
      and to distribute them to employees and customers; 
 
   -- GBP1.0 million into Credit Kudos, a challenger credit bureau helping 
      lenders optimise and automate their affordability and risk assessments; 
 
   -- GBP0.4 million into TransFICC, a provider of connectivity solutions, 
      giving financial institutions access to trading venues via a single API; 
 
   -- GBP0.3 million into Seldon Technologies, a software company that enables 
      enterprises to deploy machine learning models in production; and 
 
   -- GBP0.1 million into uMedeor (trading as uMed), a provider of a middleware 
      technology platform that enables life science organisations to conduct 
      medical research programmes. 
 
 
   A further GBP4.8 million was invested into existing portfolio companies, 
including GBP2.0 million into Quantexa, GBP1.1 million into Oxsensis and 
GBP0.4 million into uMotif. 
 
   Overall, 26% of the portfolio by value is profitable, measured by 
earnings before interest, tax and depreciation, with a number of our 
investments showing strong growth in fast-developing international 
markets. Given the evolving nature of the portfolio, increasingly the 
return will be in the form of capital rather than income. As part of 
portfolio management, the Board always maintains liquidity to meet 
future potential investments, running costs and, importantly, cash for 
payment of dividends and to facilitate share buy-backs. 
 
   Board composition 
 
   The Board announced on 9 July 2020 that, following a formal selection 
process, Margaret Payn would be appointed to the Board as a 
non-executive Director with effect from 3 August 2020. Margaret has 
extensive experience across the financial sector. Most recently, she was 
appointed as a non-executive Director of JP Morgan Mid Cap Investment 
Trust plc. The Board welcomes Margaret and looks forward to working with 
her over the coming years. 
 
   I have had the privilege of being Chairman of your Company since its 
launch in 2000 and I have indicated to the Board that I will retire at 
the Annual General Meeting in May 2021. I am delighted that Robin 
Archibald, who has been on the Board as Audit Chairman since 2013, will 
succeed me as Chairman, and Margaret Payn will succeed Robin as chairman 
of the Audit Committee. 
 
   It has been a huge pleasure to Chair your Company and I would like to 
thank my fellow Directors (past and present), the Albion management and 
staff, our advisers and service providers, and all our shareholders for 
their support over the years. 
 
   Risks and uncertainties 
 
   The highly uncertain outlook for the UK and Global economies remains the 
key risk affecting the Company, with the continuing health risk clouding 
any evaluation of risk and returns for many companies in the developed 
world.  While many of our portfolio companies have shown remarkable 
resilience during the Coronavirus (Covid-19) pandemic, there are some 
underlying portfolio companies that continue to be adversely affected by 
the pandemic. There are also the implications of the UK's recent 
departure from the European Union which may adversely affect some of the 
underlying portfolio companies. The Manager is continually assessing the 
exposure to these risks for each portfolio company and appropriate 
actions, where possible, are being implemented. 
 
   The Manager has a clear focus to allocate resources to those sectors and 
opportunities where it believes growth can be both resilient and 
sustainable, with provision of cash to assist some portfolio companies 
in these extreme market conditions being a likelihood. The new VCT rules 
continue to result in the gradual reduction of the asset-based element 
of the portfolio in favour of growth and technology companies which will 
inevitably increase volatility over time. 
 
   A detailed analysis of the other principal risks and uncertainties 
facing the business is shown in the Strategic report below. 
 
   Annual General Meeting 
 
   The Board has been considering the current rules around the Covid-19 
pandemic on the arrangements for our forthcoming Annual General Meeting 
("AGM"). These arrangements may be subject to change and we will keep 
shareholders up to date on our Manager's website at 
www.albion.capital/vct-hub/agms-events. 
 
   We are required by law to hold an AGM within six months of our financial 
year end. Whilst the roadmap announced by the government gives a target 
of no earlier than 21 June 2021 as the date when all legal limits on 
mixing will be lifted, the Board is hesitant to delay the AGM as the 
roadmap is clear that data rather than dates are the true driver of 
restrictions. Our AGM will, therefore, be held at noon on 27 May 2021, 
at the registered office being 1 Benjamin Street, London, EC1M 5QL. 
 
   Full details of the business to be conducted at the Annual General 
Meeting are given in the Notice of the Meeting on pages 70 to 73 of the 
full Annual Report and Financial Statements and in the Directors' report 
on pages 35 and 36 of the full Annual Report and Financial Statements. 
 
   Covid-19 social distancing restrictions will still be in place, and 
consequently it will not be possible to allow shareholders entry into 
the building where the AGM is held. The quorum for the meeting is two, 
therefore two Directors will attend in person to allow the continuation 
of this AGM. There will also be a representative of Albion Capital Group 
LLP as Company Secretary. Our Articles of Association do not currently 
allow hybrid or wholly virtual AGMs, however, as outlined below a 
resolution is being proposed to allow this in the future. 
 
   In order to maintain shareholder engagement, the Board has decided to 
live stream the AGM, which will include a presentation from the Manager, 
the formal business of the AGM and answers to questions we receive from 
shareholders. Registration details for the live stream will be available 
at www.albion.capital/funds/AATG prior to the Meeting. 
 
   We always welcome questions from our shareholders at the AGM, and again 
this year we request that shareholders submit questions to the Board in 
advance of the AGM. Shareholders can submit questions up until noon on 
26 May 2021 by emailing questions to AATGchair@albion.capital. Following 
the Meeting, a summary of responses will be published on the Manager's 
website at www.albion.capital/funds/AATG. The Board strongly encourages 
shareholders to return their proxy votes in advance of the meeting. 
 
   Shareholders' views are important, and the Board encourages shareholders 
to vote on the resolutions using the proxy form enclosed with this 
Annual Report and Financial Statements, or electronically at 
www.investorcentre.co.uk/eproxy. The Board has carefully considered the 
business to be approved at the AGM and recommends shareholders to vote 
in favour of all the resolutions being proposed. 
 
   Virtual and hybrid Annual General Meetings 
 
   As noted above, the Company's Articles of Association do not currently 
allow for hybrid or virtual meetings. The Coronavirus (Covid-19) 
pandemic, and the resulting social distancing rules, have brought to the 
Board's attention the importance of the ability to continue to interact 
with shareholders during unprecedented times. A resolution will be 
proposed at the upcoming AGM to update the Articles of Association to 
allow the Company to have the flexibility to hold hybrid or virtual 
meetings in the future, if required. 
 
   Share buy-backs 
 
   It remains the Board's primary objective to maintain sufficient 
resources for investment in new and existing portfolio companies and for 
the continued payment of dividends to shareholders. The Board's policy 
is to buy back shares in the market, subject to the overall constraint 
that such purchases are in the Company's interest. It is the Board's 
intention for 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. The Board continues to review the use of buy-backs and is 
satisfied that it is an important means of providing market liquidity 
for shareholders. 
 
   Albion VCTs' Prospectus Top Up Offers 
 
   Your Board, in conjunction with the boards of other VCTs managed by 
Albion Capital Group LLP, launched a prospectus top up offer of new 
Ordinary shares on 5 January 2021. The Board announced on 17 February 
2021 that, following strong demand for the Company's shares, it had 
elected to exercise GBP1.5 million of its GBP3 million over-allotment 
facility, taking the total offer to GBP15.5 million. On 24 February 
2021, the Company was pleased to announce that it had reached its 
GBP15.5 million limit under its Offer which was fully subscribed and 
closed to further applications. 
 
   The funds raised by the Company pursuant to the Offer will be added to 
the liquid resources available for investment, putting the Company into 
a position to take advantage of investment opportunities over the next 
two to three years. The proceeds of the Offer will be applied in 
accordance with the Company's investment policy. The Company continues 
to participate in the Top Up Offers and also benefits from investors' 
participation in the Dividend Reinvestment Scheme; the net proceeds are 
invested in new investment opportunities and provide additional working 
capital in the Company. It is important that the Company continues to 
have cash available for future investments and the Top Up Offers and 
dividend reinvestments are important sources of that capital. 
 
   Outlook and prospects 
 
   Whilst there are still uncertainties as to the full extent of the 
ongoing economic and societal impact of the Coronavirus (Covid-19) 
pandemic, we are encouraged by the resilience of the portfolio and many 
of the companies in which we have invested continue to show strong 
growth. It continues to be our priority to support our existing 
portfolio and to make new investments in businesses that can innovate 
and grow despite the healthcare crisis. The Board remains confident that 
the Company and its portfolio are well positioned to continue to 
generate long term value for shareholders. 
 
   I have very much enjoyed my long tenure as Chairman and look forward to 
seeing the Company continue to prosper in the years ahead. 
 
   Dr. N E Cross 
 
   Chairman 
 
   26 March 2021 
 
   Strategic report 
 
   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 
unquoted growth and technology businesses in a qualifying VCT. 
 
   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. 
 
   The full investment policy can be found above. 
 
   Current portfolio sector allocation 
 
   The pie charts at the end of this announcement show the split of the 
portfolio valuation as at 31 December 2020 by sector, stage of 
investment and number of employees. This is a useful way of assessing 
how the Company and its portfolio is diversified across sector, 
portfolio companies' maturity measured by revenues and their size 
measured by the number of people employed. Details of the principal 
investments made by the Company are shown in the Portfolio of 
investments on pages 24 to 26 of the full Annual Report and Financial 
Statements. 
 
   Direction of portfolio 
 
   The current portfolio remains well-balanced both in terms of stage of 
investment and sectors, with software and other technology accounting 
for 43%, healthcare (including digital healthcare) accounting for 16%, 
renewable energy accounting for 14% and education accounting for 8%. The 
Company's holding in software and other technology investments has 
increased significantly in the year to 43% as we invest in key areas 
such as cyber security and machine learning applications. Cash levels 
decreased significantly during the year from 37% to 14% of net asset 
value due to the large number of investments made and the payment of the 
special dividend on 30 October 2020. Following the first allotment under 
the Albion VCTs' Prospectus Top Up Offers 2020/21 on 26 February 2021, 
cash has increased as a proportion of the portfolio since the year end. 
 
   In line with the Company's investment policy, investment continues to be 
made predominately into higher growth technology companies. The Company 
will support those portfolio companies who require it, as well as 
capitalise on any new investment opportunities that arise. We therefore 
expect that investments in the software and other technology and 
healthcare sectors (including digital healthcare) will continue to 
increase, and that asset-based investments will decrease over the coming 
years. 
 
 
 
 
   Results and dividends                                   Ordinary shares 
                                                               GBP'000 
 
Net revenue loss for the year ended 31 December 2020                 (248) 
Net capital loss for the year ended 31 December 2020                  (63) 
                                                           --------------- 
Total loss for the year ended 31 December 2020                       (311) 
Dividend of 2.00 pence per share paid on 30 June 2020              (2,201) 
Special dividend of 9.00 pence per share paid 30 October 
 2020                                                              (9,942) 
Dividend of 1.95 pence per share paid on 31 December 
 2020                                                              (2,185) 
Transferred from reserves                                         (14,639) 
                                                           --------------- 
 
Net assets as at 31 December 2020                                   78,028 
                                                           =============== 
 
Net asset value per share as at 31 December 2020               69.35p 
=========================================================  =============== 
 
 
   The Company paid dividends of 12.95 pence per share during the year 
ended 31 December 2020 (2019: 4.0 pence per share). The Board has a 
variable dividend policy which targets an annual dividend yield of 
around 5% on the prevailing net asset value. The Board has declared a 
first dividend for the year ending 31 December 2021 of 1.73 pence per 
share to be paid on 30 June 2021 to shareholders on the register on 4 
June 2021. 
 
   As shown in the Income statement below, investment income has decreased, 
as expected, to GBP604,000 (2019: GBP1,416,000). This is due to an 
increase in loan stock where interest is being rolled up, loan stock 
repayments in the year (and in recent years), and the sale of the 
Company's holding in the SVS Albion OLIM UK Equity Income Fund. As a 
result, there is a revenue loss to equity holders of GBP248,000 (2019: 
return of GBP519,000). 
 
   The net capital loss for the year was GBP63,000 (2019: gain 
GBP9,645,000). This is mainly attributable to the portion of the 
management fee charged through the realised capital reserve partially 
offset by the gains on investments during the year. Key valuation 
movements during the year are outlined in the Investment portfolio 
section of the Chairman's statement. The total loss for the period was 
0.28 pence per share (2019: return of 9.28 pence per share). 
 
   During the year, the Manager took the decision to dispose of the 
Company's investment in the SVS Albion OLIM UK Equity Income Fund 
following a period of poor performance, with the fund being impacted by 
the Coronavirus (Covid-19) driven falls of UK quoted equities and the 
negative outlook for the UK Equity Income sector. It is the Board's 
intention that the sale proceeds shall be redeployed into innovative 
unquoted growth companies where the Company is seeing resilient growth. 
This has resulted in a disappointing GBP0.4 million loss on cost, after 
allowing for dividends received and reduction in management fees over 
the life of the investment. 
 
   The Balance sheet below shows that the net asset value per share has 
decreased over the last year to 69.35 pence per share (2019: 82.58 pence 
per share). The decrease in net asset value is principally attributed to 
the payment of 12.95 pence per share of dividends, including the special 
dividend of 9.0 pence per share, and the total loss of 0.28 pence per 
share. 
 
   The cash outflow for the year was GBP21 million (2019: GBP25 million 
inflow). This was mainly as a result of the dividends paid of GBP12.2 
million, GBP9.2 million of new and follow-on investments, and share 
buy-backs of GBP1.5 million. The outflow was reduced by GBP3.5 million 
received from the disposal of fixed and current asset investments and 
receipt of deferred consideration. There has been substantial cash 
inflow post year end as a result of the successful top up offer. 
 
   Review of business and outlook 
 
   A review of the Company's business during the year and future prospects 
is contained in the Chairman's statement above and in this Strategic 
report. 
 
   As a greater emphasis continues to be given to growth and technology 
investments, we expect that asset-based investments will continue to 
decrease over time as a proportion of the portfolio with future returns 
coming largely from capital gains. Investment income predominantly 
consists of loan stock interest on our renewable energy investments, 
which the Company intends to hold for the longer term. As a result, 
investment income is expected to remain relatively flat over the near 
term. 
 
   Details of significant events which have occurred since the end of the 
financial year are listed in note 19. Details of transactions with the 
Manager are shown in note 5. 
 
   Future prospects 
 
   Whilst there are still uncertainties as to the full extent of the 
ongoing economic and societal impact of the Coronavirus (Covid-19) 
pandemic, we are encouraged by the resilience of the portfolio and many 
of the companies in which we have invested continue to show strong 
growth. The Board remains confident that the Company and its portfolio 
are well positioned to continue to generate long term value for 
shareholders. The Company's portfolio remains well balanced across 
sectors and risk classes and the Manager has a strong pipeline of 
investment opportunities in which the Company's cash can be deployed. 
 
   Key Performance Indicators ("KPIs") and Alternative Performance Measures 
("APMs") 
 
   The Directors believe that the following KPIs and APMs, which are 
typical for VCTs, used in the Board's  assessment of the Company, will 
provide shareholders with sufficient information to assess how 
effectively the Company is applying its investment policy to meet its 
objectives. The Directors are satisfied that the results shown in the 
following KPIs and APMs give a good indication that the Company is 
achieving its investment objective and policy. These are: 
 
   1.     Net asset value per share and total shareholder value 
 
 
 
   Please see the "Total shareholder value to 31 December 2020" table above 
in the Financial summary section which shows the NAV per share as at 31 
December 2020 and total shareholder value. Total shareholder value is 
net asset value plus cumulative dividends paid since launch. 
 
   Total shareholder value decreased by 0.28 pence to 185.30 pence per 
Ordinary share for the year ended 31 December 2020 (0.3 per cent. on the 
opening net asset value). This is a very respectable performance given 
the challenging economic conditions of the last twelve months. 
 
   The graph on page 4 of the full Annual Report and Financial Statements 
reflects the total shareholder value performance of the Company relative 
to the FTSE All-share Index. 
 
   2.     Movement in shareholder value in the year 
 
 
 
 
2011  2012  2013  2014   2015   2016  2017  2018   2019    2020 
----  ----  ----  ----  ------  ----  ----  -----  -----  ------ 
2.9%  4.6%  8.0%  2.5%  (4.7%)  3.6%  6.0%  13.2%  11.9%  (0.3%) 
----  ----  ----  ----  ------  ----  ----  -----  -----  ------ 
 
 
   Source: Albion Capital Group LLP 
 
   Calculated as the movement in total shareholder value for the year 
divided by the opening net asset value. 
 
   The returns to Shareholders who have acquired shares through the C share 
issue in 2006 and the merger with Albion Income & Growth VCT in 2013 are 
shown on the Company's Webpage on the Manager's website at 
https://www.globenewswire.com/Tracker?data=PVnDoECJEFxyrV2mKasD0zjDbT_f4aKewzt2Ro_oSQQi2pn7U8vxpHmWoSbyi75pTW5v0LQ3Kv6cuKilhgNURl-M72GPR5UUZhEEDn3CdvRKB6kZmPuPKmWk2KXSQWON 
www.albion.capital/funds/AATG under "Financial Summary for Previous 
Funds". Shareholders who have acquired shares through Top Up Offers, the 
dividend reinvestment scheme or in the market outside the corporate 
events will be able to calculate their own returns based on the price at 
which they acquired their shares, the dividends they have received since 
the purchase and the current net asset value of their holding. 
 
   3.     Dividend distributions 
 
   Dividends paid in respect of the year ended 31 December 2020 were 12.95 
pence per share (2019: 4.0 pence per share); 3.95 pence per share in 
ordinary dividends and a 9.0 pence per share special dividend. During 
the year, the Board changed to a variable dividend policy. Further 
details of the dividend policy can be found in the Chairman's statement 
above. Cumulative dividends paid since inception are 115.95 pence per 
Ordinary share. 
 
   4.     Ongoing charges 
 
   As agreed with the Manager in 2015, the ongoing charges ratio for the 
year ended 31 December 2020 was capped at 2.75 per cent. (2019: 2.75 per 
cent.) with any excess over the cap being a reduction in the management 
fee. 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 reserves) as a 
percentage of the average net assets attributable to shareholders. The 
Directors expect the ongoing charges ratio for the year ahead to be 2.75 
per cent. (capped at 2.75 per cent.). 
 
   The reduction in management fees payable to Albion Capital Group LLP in 
the year, due to the expense cap, amounted to GBP78,000 (2019: 
GBP136,000). 
 
   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 VCT 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 33 of the full 
Annual Report and Financial Statements. 
 
   The relevant tests to measure compliance have been carried out and 
independently reviewed for the year ended 31 December 2020. These 
confirmed that the Company has complied with all tests and continues to 
do so. 
 
   *VCT compliance is not a numerical measure of performance and thus 
cannot be defined as an APM. 
 
   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. Although the investment policy 
permits the Company to borrow, the Directors do not currently have any 
intention of utilising long-term gearing and have not done so in the 
past. 
 
   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 under the Management agreement, as well as acting as the 
Company's Alternative Investment Fund Manager ("AIFM"). 
 
   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 and is subject to earlier termination in the event of certain 
breaches or on the insolvency of either party. The Manager is paid an 
annual fee equal to 2.5 per cent. of the net asset value of the Company, 
payable quarterly in arrears. The total annual running costs of the 
Company, including fees payable to Albion Capital Group LLP, Directors' 
fees, professional fees and the costs incurred by the Company in the 
ordinary course of business (but excluding any exceptional items and 
performance fees payable to Albion Capital Group LLP) 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 Group LLP by way of a reduction in 
management fees. 
 
   Additionally, Albion Capital Group LLP agreed to reduce that proportion 
of its management fee relating to the investment in the SVS Albion OLIM 
UK Equity Income Fund ("OUEIF") in order to avoid any double charging of 
fees for the investment exposure. The investment in the OUEIF was 
disposed of during the year, and therefore there is no continuing 
exposure. 
 
   In some instances, the Manager is entitled to an arrangement fee, 
payable by a portfolio company in which the Company invests, in the 
region of 2.0 per cent. of the investment made, and also monitoring fees 
where the Manager has a representative on the portfolio company's board. 
Further details of the Manager's fee can be found in note 5. 
 
   Management performance incentive 
 
   In order to provide the Manager with an incentive to maximise the return 
to investors, the Manager is entitled to charge an incentive fee in the 
event that the returns exceed minimum target levels per share. 
 
   Under the incentive arrangement, if the net asset value per share at the 
end of a financial period, when added to the aggregate dividends per 
share (both revenue and capital) paid to that date, exceeds GBP1 
(increased at the rate of RPI plus 2 per cent. per annum uncompounded 
from the date of first admission to the Official List of the relevant 
class of share), then the Manager will be entitled to an incentive fee 
equal to 15 per cent. of such excess. In the event that the performance 
of the Company falls short of the target in any period, such shortfall 
must be made up in future periods before the Manager is entitled to any 
incentive in respect of such future periods. 
 
   The fee if applicable, will be payable annually. No performance fee has 
arisen during the year (2019: GBPnil). There has been no performance fee 
paid since the year ended 31 December 2005. The performance threshold at 
31 December 2020 was 202.92 pence for the Ordinary shares, 176.12 pence 
for the former C shares and 181.92 pence for the former Income & Growth 
shares which compares to total returns of 185.30 pence, 108.20 pence and 
112.09 pence respectively, based on the latest NAV. 
 
   Investment and co-investment 
 
   The Company co-invests with other Albion Capital Group LLP managed VCTs 
and funds. Allocation of investments is on the basis of an allocation 
agreement which is based, inter alia, on the ratio of cash available for 
investment in each of the entities and the HMRC VCT qualifying tests. 
 
   Liquidity Management 
 
   The Board examines regularly both the liquidity of the Company's shares 
in the secondary market, which is substantially influenced by the use of 
share buy back and share issuance, and the liquidity of the Company's 
portfolio. The nature of investments in a venture capital portfolio is 
longer term and these are relatively illiquid in the short term. 
Consequently, the Company maintains sufficient liquidity in cash and 
near cash assets to cover the operating costs of the Company and to meet 
dividend payments and share buy-backs, as well as to have the capacity 
to make fresh investments when the opportunities arise. Although the 
Company is authorised to borrow, in practice it does not borrow. The 
Board has no intention that the Company should borrow given the nature 
of the Company's investments, a number of which have their own gearing. 
Management of liquidity is one of the key operational areas that the 
Board discusses regularly with the Manager. 
 
   Evaluation of the Manager 
 
   The Board has evaluated the performance of the Manager based on: 
 
 
   -- the returns generated by the Company; 
 
   -- the continuing achievement of the 80 per cent. qualifying holdings 
      investment requirement for VCT status; 
 
   -- the long term prospects of the current portfolio of investments; 
 
   -- the management of treasury, including use of share buy-backs and 
      participation in fund raising; 
 
   -- a review of the Management agreement and the services provided therein; 
 
   -- benchmarking the performance of the Manager to other service providers, 
      including the performance of other VCTs that the Manager is responsible 
      for managing: and 
 
   -- the contribution made by the administration and secretarial team to the 
      operation of the Company. 
 
 
   The Board believes that it is in the interests of shareholders as a 
whole, and of the Company, to continue the appointment of the Manager 
for the forthcoming year. 
 
   Alternative Investment Fund Managers Directive ("AIFMD") 
 
   The Board appointed Albion Capital Group LLP as the Company's AIFM in 
2014 as required by the AIFMD. The Manager became a full-scope AIFM 
under the AIFMD in 2018. As a result, from that date, Ocorian Depositary 
(UK) Limited was appointed as Depositary to oversee the custody and cash 
arrangements and provide other AIFMD duties with respect to the Company. 
This provides another degree of oversight over the custody of the 
Company's assets. 
 
   Companies Act 2006 Section 172 Reporting 
 
   Under Section 172 of the Companies Act 2006, the Board has a duty to 
promote the success of the Company for the benefit of its members as a 
whole, having regard to the interests of other stakeholders in the 
Company, such as suppliers, and to do so with an understanding of the 
impact on the community and environment and with high standards of 
business conduct, which includes acting fairly between members of the 
Company. 
 
   The Board is very conscious of these wider responsibilities in the way 
it promotes the Company's culture and ensures, as part of its regular 
oversight, that the integrity of the Company's affairs is foremost in 
the way the activities are managed and promoted. This includes regular 
engagement with the wider stakeholders of the Company and being alert to 
issues that might damage the Company's standing in the way that it 
operates. The Board works very closely with the Manager in reviewing how 
stakeholder issues are handled, ensuring good governance and 
responsibility in managing the Company's affairs, as well as visibility 
and openness in how the affairs are conducted. 
 
   The Board considers its significant stakeholder groups to be its 
Shareholders; suppliers, including direct agents of the Company such as 
the Manager to whom most executive functions are delegated; the 
community and the environment in the way that investments are made and 
managed. The Board also considers the portfolio companies to be 
stakeholders in the long-term success of the Company. By the nature of 
venture capital investment, the Manager is closely involved with all the 
portfolio companies. 
 
   The Company's shareholders are key to the success of the Company. The 
Board seeks to create value for shareholders by generating strong and 
sustainable returns to provide shareholders with regular dividends and 
the prospect of capital growth. During the year, the Board approved a 
new dividend policy, further details of which can be found above in the 
Chairman's statement. The new variable 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. 
 
   During the year, the Board declared a special dividend of 9.00 pence per 
share, which was paid on 30 October 2020 to shareholders on the register 
on 9 October 2020. The Board made the decision to pay this special 
dividend following a review of the foreseeable cash requirements of the 
Company. 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 
had to 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, and therefore the 
special dividend was declared given the significant cash balances 
following a number of disposals in the year ended 31 December 2019. 
 
   The Board temporarily suspended buy-backs on 18 March 2020 due to the 
increasing uncertainty of the net asset value at the time. Buy-backs 
were resumed from 22 April 2020 after the announcement of the Interim 
Management Statement which included the net asset value for 31 March 
2020. The buy-back policy is an important means of providing market 
liquidity for shareholders. This action demonstrated acting in 
shareholders' best interests, both for those wishing to sell their 
shares and for continuing shareholders, by ensuring that there was a 
contemporary net asset value in the market to operate buy-backs against, 
following the advent of the health crisis and its impact on asset 
values. 
 
   Shareholders' views are important. The Board encourages Shareholders to 
vote on the resolutions at the Annual General Meeting ("AGM"). The 
Company's AGM is used typically as an opportunity to communicate with 
investors, including through a presentation made by the investment 
management team. However, due to the impact of the Coronavirus 
(Covid-19) pandemic, special circumstances are required for this year's 
AGM and further details are above in the Chairman's statement. Details 
of the AGM can be found in the Directors' report on page 35 of the full 
Annual Report and Financial Statements. 
 
   Shareholders are also encouraged to attend the annual Shareholders' 
Seminar. The seminars include some of the portfolio companies sharing 
insights into their businesses and also have presentations from Albion 
executives on some of the key factors affecting the investment outlook, 
as well as a review of the past year and the plans for the year ahead. 
Details of the seminar events are placed on the Manager's website. 
Representatives of the Board attend the seminars. 
 
   The Company is an externally managed investment company with no 
employees, and as such has nothing to report in relation to employee 
engagement but does keep close attention to how the Board operates as a 
cohesive and competent unit. The Company also has no customers in the 
traditional sense and, therefore, there is nothing to report in relation 
to relationships with customers. 
 
   The Company's suppliers are fundamental to the operations of the Company, 
particularly Albion Capital Group LLP as the Manager, given that 
day-to-day management responsibilities are sub-contracted to the 
Manager. The Board takes close account of how the Manager operates, with 
very close contact during the year and not just at scheduled Board 
meetings. Details of the Manager's and Board's responsibilities can be 
found in the Statement of corporate governance on pages 38 to 42 of the 
full Annual Report and Financial Statements. 
 
   The contractual arrangements with all the principal suppliers to the 
Company are reviewed regularly and formally once a year, alongside the 
performance of the suppliers in acquitting their responsibilities. The 
performance of the Manager in managing the portfolio and in providing 
company secretarial, administration and accounting services is reviewed 
in detail each year; this review includes reviewing comparator 
engagement terms and portfolio performance. Further details on the 
evaluation of the Manager, and the decision to continue the appointment 
of the Manager for the forthcoming year, can be found in this report. 
 
   The portfolio companies are considered key stakeholders, not least 
because they are principal drivers of value for the Company. As 
discussed in the Environmental, Social and Governance ("ESG") section 
below, the portfolio companies' impact on their stakeholders is also 
important to the Company. In most cases, an Albion executive has a place 
on the board of a portfolio company, in order to help with both business 
operation decisions, as well as good ESG practice. 
 
   The Board receives reports on ESG factors within its portfolio from 
Albion Capital Group LLP as it is a signatory of the UN Principles for 
Responsible Investment ("UN PRI").  Further details of this are set out 
below. ESG, without its specific definition, has always been at the 
heart of the responsible investing that the Company engages in and in 
how the Company conducts itself with all of its stakeholders. 
 
 
 
   The Board, although non-executive, is fully engaged in both oversight 
and the general strategic direction of the Company. During the year the 
Board's main strategic discussions focussed around cash management and 
deployment of cash for future investments, dividends and share buy-backs, 
resulting in the decision to participate in the Albion VCTs' Top Up 
Offers 2020/21. During the year, the Board held a further meeting in 
addition to its scheduled quarterly meetings to discuss the effect of 
the Coronavirus (Covid-19) pandemic on the Company's portfolio and to 
monitor the resilience of the various agents to the Company. 
 
   Environmental, Social, and Governance ("ESG") 
 
   The Company's Manager, Albion Capital Group LLP, takes the concept of 
sustainable and responsible investment very seriously for existing 
investments made and in reviewing new investment opportunities. In turn, 
the Board is kept appraised of ESG issues in connection with both the 
portfolio and in how Company affairs are conducted more generally as a 
regular part of Board oversight. 
 
   Albion Capital Group LLP is a signatory of the UN PRI. The UN PRI is the 
world's leading proponent of responsible investment, working to 
understand the investment implications of ESG factors and to support its 
international network of investor signatories in incorporating these 
factors into their investment and ownership decisions. 
 
   The Board and Manager have exercised conscious principles in making 
responsible investments throughout the life of the Company, not least in 
providing finance for promising companies in a variety of important 
sectors such as technology, healthcare and renewable energy. In making 
the investments, the Manager is directly involved in the oversight and 
governance of these investments, including ensuring standards of 
reporting and visibility on business practices, all of which are 
reported to the Board of the Company. By its nature, not least in making 
qualifying investments which fulfil the criteria set by HMRC, the 
Company has focused on sustainable and longer-term investment 
propositions, some of which will fail (in the nature of all small 
companies), but some of which will grow and serve important societal 
demands. One of the most important drivers of performance is the quality 
of the investment portfolio, which goes beyond the individual valuations 
and examines the prospects of each of the portfolio companies, as well 
as the sectors in which they operate -- all requiring a longer-term 
view. 
 
   In the nature of venture capital investment, Albion Capital Group LLP is 
more intimately involved in the affairs of portfolio companies than 
might be the case for funds invested in listed securities. As such, 
Albion Capital Group LLP is in a position to influence good governance 
and behaviour in the portfolio companies, many of which are relatively 
small companies without the support of a larger company's administration 
and advisory infrastructure. 
 
   The Company adheres to the principles of the AIC Code of Corporate 
Governance and is also aware of other governance and corporate conduct 
guidance which it meets as far as practical, including in the 
constitution of a diversified and independent board capable of providing 
constructive challenge but also, through its experience of the Company, 
continuity over the longer-term investments the Company makes. 
 
   The Company's portfolio is currently invested in healthcare, renewable 
energy, education, software and other technology (which includes cyber 
security and data protection), and business services, with the most 
significant percentage of the Company's portfolio invested in sectors 
and companies which would be seen by many measures to be both 
sustainable and socially aware based on the services they render. 
 
   Albion Capital Group LLP incorporates ESG considerations into its 
investment decisions. These form part of its process to create value for 
investors and develop sustainable long-term strategies for portfolio 
companies. Albion Capital Group LLP reports ESG criteria to UN PRI 
(annually) and to the Board quarterly. 
 
   ESG principles are integrated at the pre-investment, investment and exit 
stages. This is reflected in transparency of reporting, governance 
principles adopted by the Company and the portfolio companies, and 
increasingly in the positive environmental or socially impactful nature 
of investments made. Albion Capital Group LLP, where relevant, considers 
climate-specific issues in its investment policies and activities. 
However, as the majority of the Company's portfolio consists of small 
(2-250 Full Time Employees), private, typically software companies with 
limited environmental impact, climate change is not considered to be a 
significant risk, and actions are proportionate to that risk. 
 
   Pre-investment stage 
 
   An exclusion list is used to rule out investments in unsustainable areas, 
or in areas which might be perceived as socially detrimental. ESG due 
diligence is performed on each potential portfolio company to identify 
any sustainability risks associated with the investment. Identified 
sustainability risks are ranked from low to high and are reported to the 
relevant investment committee. The investment committee considers each 
potential investment. If sustainability risks are identified, 
mitigations are assessed and, if necessary, mitigation plans are put in 
place. If this is not deemed sufficient, the committee would consider 
the appropriate level and structure of funding to balance the associated 
risks. If this is not possible, investment committee approval will not 
be provided, and the investment will not proceed. 
 
   Investment stage 
 
   All new and existing portfolio companies are asked to report against an 
ESG Balanced Score Card annually. The ESG Balanced Score Card contains a 
number of sustainability factors against which a portfolio company will 
be assessed in order to determine the potential sustainability risks and 
opportunities arising from the investment. The score cards form part of 
the Manager's internal review meetings alongside discussions around 
other risk factors, and any outstanding issues are addressed in 
collaboration with the portfolio companies' senior management. 
 
   Exit stage 
 
   Albion Capital Group LLP aim to ensure that good ESG practices remain in 
place following exit. For example, by ensuring that the company creates 
a self-sustaining ESG management system during our period of ownership, 
wherever feasible. 
 
   Social and community issues, employees and human rights 
 
   The Board recognises the requirement under section 414C of the 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 requirement for formal policies in these matters, however, it is at 
the core of its responsible investment as detailed above. 
 
   General Data Protection Regulation ("GDPR") 
 
   The General Data Protection Regulation has the objective of unifying 
data privacy requirements across the European Union, and continues to 
apply in the United Kingdom after Brexit. The Manager continues to take 
action to ensure that the Manager and the Company are compliant with the 
regulation. 
 
   Further policies 
 
   The Company has adopted a number of further policies relating to: 
 
 
   -- Environment 
 
   -- Global greenhouse gas emissions 
 
   -- Anti-bribery 
 
   -- Anti-facilitation of tax evasion 
 
   -- Diversity 
 
 
   These are set out in the Directors' report on page 34 of the full Annual 
Report and Financial Statements. 
 
   Risk management 
 
   The Board carries out a regular review of the risk environment in which 
the Company operates, together with changes to the environment and 
individual risks. The Board also identifies emerging risks which might 
affect the Company. In the period covered by this report the most 
noticeable risk has been the global Coronavirus (Covid-19) pandemic 
which has impacted not only public health and mobility but also has had 
an adverse impact on global traded markets, the full effect of which is 
likely to be uncertain for some time. Throughout the last year the Board 
has continued to keep close attention to the resilience of the portfolio, 
the Company and the circumstance of its agents, and will continue to do 
so given the unusual working conditions during the Coronavirus 
(Covid-19) pandemic. 
 
   The Directors have carried out a robust assessment of the Company's 
disclosures below that describe the principal risks and emerging 
uncertainties and explain how they are being managed or mitigated. The 
principal risks and uncertainties of the Company as identified by the 
Board and how they are managed are as follows: 
 
 
 
 
Risk         Possible consequence                                             Risk management 
-----------  ---------------------------------------------------------------  -------------------------------------------------------------- 
Investment,  The risk of investment in poor quality businesses,               To reduce this risk, the Board places reliance upon 
performance   which could reduce the returns to shareholders and               the skills and expertise of the Manager and its track 
and           could negatively impact the Company's current and                record over many years of making successful investments 
valuation     future valuations.                                               in this segment of the market. In addition, the Manager 
risk          By nature, smaller unquoted businesses, such as those            operates a formal and structured investment appraisal 
              that qualify for VCT purposes, are more volatile than            and review process, which includes an Investment Committee, 
              larger, long established businesses.                             comprising investment professionals from the Manager 
              The Company's investment valuation methodology is                for all investments, and at least one external investment 
              reliant on the accuracy and completeness of information          professional for investments greater than GBP1 million 
              that is issued by portfolio companies. In particular,            in aggregate across all the Albion managed VCTs. The 
              the Directors may not be aware of, or take into account,         Manager also invites and takes account of comments 
              certain events or circumstances which occur after                from non-executive Directors of the Company on matters 
              the information issued by such companies is reported.            discussed at the Investment Committee meetings. Investments 
                                                                               are actively and regularly monitored by the Manager 
                                                                               (investment managers normally sit on portfolio company 
                                                                               boards), including the level of diversification in 
                                                                               the portfolio, and the Board receives detailed reports 
                                                                               on each investment as part of the Manager's report 
                                                                               at quarterly board meetings. The Board and Manager 
                                                                               regularly review the deployment of investments and 
                                                                               cash resources available to the Company in assessing 
                                                                               liquidity required for servicing the Company's buy-backs, 
                                                                               dividend payments and operational expenses. 
                                                                               The unquoted investments held by the Company are designated 
                                                                               at fair value through profit or loss and valued in 
                                                                               accordance with the International Private Equity and 
                                                                               Venture Capital Valuation Guidelines as updated in 
                                                                               2018. These guidelines set out recommendations intended 
                                                                               to represent current best practice on the valuation 
                                                                               of venture capital investments. The valuation takes 
                                                                               into account all known material facts up to the date 
                                                                               of approval of the Financial Statements by the Board. 
-----------  ---------------------------------------------------------------  -------------------------------------------------------------- 
VCT          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 VCT 
risk          of tax relief on their investment and on future returns.         management which is used to operating within the requirements 
              Breach of any of the rules enabling the Company to               of the VCT legislation. In addition, to provide further 
              hold VCT status could result in the loss of that status.         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 VCT 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. 
-----------  ---------------------------------------------------------------  -------------------------------------------------------------- 
Regulatory   The Company is listed on The London Stock Exchange               Board members and the Manager have experience of operating 
and           and is required to comply with the rules of the UK               at senior levels within, or advising, quoted companies. 
compliance    Listing Authority, as well as with the Companies Act,            In addition, the Board and the Manager receive regular 
risk          Accounting Standards and other legislation. Failure              updates on new regulation, including legislation on 
              to comply with these regulations could result in a               the management of the Company, from its auditor, lawyers 
              delisting of the Company's shares, or other penalties            and other professional bodies. The Company is subject 
              under the Companies Act or from financial reporting              to compliance checks through the Manager's compliance 
              oversight bodies.                                                officer, and any issues arising from compliance or 
                                                                               regulation are reported to its own board on a monthly 
                                                                               basis. These controls are also reviewed as part of 
                                                                               the quarterly Board meetings, and also as part of 
                                                                               the review work undertaken by the Manager's compliance 
                                                                               officer. The report on controls is also evaluated 
                                                                               by the internal auditors. 
-----------  ---------------------------------------------------------------  -------------------------------------------------------------- 
Market       The market value of Ordinary shares can fluctuate.               The Company operates a share buy-back policy, which 
value of      The market value of an Ordinary share, as well as                aims to limit the discount at which the Ordinary shares 
Ordinary      being affected by its net asset value ("NAV") and                trade to around 5 per cent. to NAV, by providing a 
shares        prospective NAV, also takes into account its dividend            purchaser through the Company in absence of market 
              yield and prevailing interest rates. As such, the                purchasers. From time to time buy-backs cannot be 
              market value of an Ordinary share may vary considerably          applied, for example when the Company is subject to 
              from its underlying NAV. The market prices of shares             a close period, or if it were to exhaust and could 
              in quoted investment companies can, therefore, be                not renew any buyback authorities. 
              at a discount or premium to the NAV at different times,          New Ordinary shares are issued at sufficient premium 
              depending on supply and demand, market conditions,               to NAV to cover the costs of issue and to avoid asset 
              general investor sentiment and other factors, including          value dilution to existing investors. 
              the ability to exercise share buybacks. Accordingly, 
              the market price of the Ordinary shares may not fully 
              reflect their underlying NAV. 
-----------  ---------------------------------------------------------------  -------------------------------------------------------------- 
Operational  The Company relies on a number of third parties, in              The Company and its operations are subject to a series 
and           particular the Manager, for the provision of investment          of rigorous internal controls and review procedures 
internal      management and administrative functions. Failures                exercised throughout the year and receives reports 
control       in key systems and controls within the Manager's business        from the Manager on its internal controls and risk 
risk          could place assets of the Company at risk or result              management, including on matters relating to cyber 
              in reduced or inaccurate information being passed                security. 
              to the Board or to shareholders.                                 The Audit Committee reviews the Internal Audit Reports 
                                                                               prepared by the Manager's internal auditors, PKF Littlejohn 
                                                                               LLP. 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 the Committee that the Manager has 
                                                                               strong systems and controls in place including those 
                                                                               in relation to business continuity and cyber security. 
                                                                               Ocorian Depositary (UK) Limited is appointed as Depositary 
                                                                               to oversee the custody and cash arrangements and provide 
                                                                               other AIFMD duties. The Board reviews the quarterly 
                                                                               reports prepared by Ocorian Depositary (UK) Limited 
                                                                               to ensure that Albion Capital Group LLP is adhering 
                                                                               to its duties as a full-scope AIFM 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 and remain compliant with regulations. The 
                                                                               Manager and other service providers have also demonstrated 
                                                                               to the Board that there is no undue reliance placed 
                                                                               upon any one individual. 
-----------  ---------------------------------------------------------------  -------------------------------------------------------------- 
Economic,    Changes in economic conditions, including, for example,          The Company invests in a diversified portfolio of 
political     interest rates, rates of inflation, industry conditions,         companies across a number of industry sectors and 
and social    competition, political and diplomatic events, such               in addition often invests in a mixture of instruments 
risk          as the impact of Brexit, and other factors could substantially   in portfolio companies and has a policy of minimising 
              and adversely affect the Company's prospects in a                any external bank borrowings within portfolio companies. 
              number of ways. This also includes risks of social               At any given time, the Company has sufficient cash 
              upheaval, including from infection and population                resources to meet its operating requirements, including 
              re-distribution.                                                 share buy-backs and follow-on investments. 
              The current significant exogenous risk to the Company,           In common with most commercial operations, exogenous 
              the wider population and economy, is the Coronavirus             risks over which the Company has no control are always 
              (Covid-19) pandemic.                                             a risk and the Company does what it can to address 
                                                                               these risks where possible, not least as the nature 
                                                                               of the investments the Company makes are long term. 
                                                                               The Board and Manager are continuously assessing the 
                                                                               resilience of the portfolio, the Company and its operations 
                                                                               and the robustness of the Company's external agents 
                                                                               during the Coronavirus (Covid-19) pandemic, as well 
                                                                               as considering longer term impacts on how the Company 
                                                                               might be positioned in how it invests and operates. 
                                                                               Ensuring liquidity in the portfolio to cope with exigent 
                                                                               and unexpected pressures on the finances of the portfolio 
                                                                               and the Company is an important part of the risk mitigation 
                                                                               in these uncertain times. 
-----------  ---------------------------------------------------------------  -------------------------------------------------------------- 
 
   Viability statement 
 
   In accordance with the FRC UK Corporate Governance Code published in 
2018 and provision 36 of the AIC Code of Corporate Governance, the 
Directors have assessed the prospects of the Company over the three 
years to 31 December 2023. The Directors believe that three years is a 
reasonable period in which they can assess the future ability of the 
Company to continue to operate and meet its liabilities as they fall due 
and is also the period used by the Board in the strategic planning 
process and is considered reasonable for a business of this nature and 
size. The three year period is considered the most appropriate given the 
forecasts that the Board requires from the Manager and the estimated 
timelines for finding, assessing and completing investments. The three 
year period also takes account of the potential impact of any new 
regulations, should they be imposed, and how they may affect the Company 
over the longer term, as well as the availability of cash, but the 
assessment cannot take into account the full extent of the exogenous 
risks that may impact on global economies at the date of these accounts. 
 
   The Directors have carried out a robust assessment of the emerging and 
principal risks facing the Company as explained above, including those 
that could threaten its business model, future performance, solvency or 
liquidity. The Board also considered the procedures in place to identify 
emerging risks and the risk management processes in place to avoid or 
reduce the impact of the underlying risks. The Board focused on the 
major factors which affect the economic, regulatory and political 
environment, including any potential impact from Brexit. The Board, 
after careful consideration, believes that Brexit will have no major 
impact on the going concern of the Company, primarily due to the markets 
our portfolio companies target, which in most cases are the UK and 
increasingly, the US, for our software and technology businesses. 
Portfolio companies targeting European markets have also shown 
resilience so far. The Coronavirus (Covid-19) pandemic remains the 
largest uncertainty with the potential to affect the Company. In light 
of this continuing uncertainty, robust stress tested cashflows, process 
resilience and contingencies have been examined in trying to deal with 
the principal risks faced by the Company. 
 
   The Board assessed the ability of the Company to raise finance and 
deploy capital, as well as the existing cash resources of the Company. 
The portfolio is well balanced and geared towards long term growth, 
delivering dividends and capital growth to shareholders. In assessing 
the prospects of the Company, the Directors have considered the cash 
flow by looking at the Company's income and expenditure projections and 
funding pipeline over the assessment period of three years and they 
appear realistic. 
 
   Taking into account the processes for mitigating risks, monitoring costs, 
implementing share buy-backs and issuance of new shares, the Manager's 
compliance with the investment objective, policies and business model 
and the balance of the portfolio, the Directors have concluded that 
there is a reasonable expectation that the Company will be able to 
continue in operation and meet its liabilities as they fall due over the 
three year period to 31 December 2023. 
 
   This Strategic report of the Company for the year ended 31 December 2020 
has been prepared in accordance with the requirements of Section 414A of 
the 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, 
 
   Dr. N E Cross 
 
   Chairman 
 
   26 March 2021 
 
   Responsibility Statement 
 
   In preparing these financial statements for the year to 31 December 
2020, the Directors of the Company, being Dr Neil Cross, Robin Archibald, 
Mary Anne Cordeiro, Margaret Payn, Modwenna Rees-Mogg and Patrick Reeve, 
confirm that to the best of their knowledge: 
 
   - summary financial information contained in this announcement and the 
full Annual Report and Financial Statements for the year ended 31 
December 2020 for the Company has been prepared in accordance with 
United Kingdom Generally Accepted Accounting Practice (UK Accounting 
Standards and applicable law) and give a true and fair view of the 
assets, liabilities, financial position and profit or loss of the 
Company; and 
 
   -the Chairman's statement and Strategic report include a fair review of 
the development and performance of the business and the position of the 
Company, together with a description of the principal risks and 
uncertainties it faces. 
 
   We consider that the Annual Report and Financial Statements, taken as a 
whole, are fair, balanced, and understandable and provide the 
information necessary for shareholders to assess the Company's position, 
performance, business model and strategy. 
 
   A detailed "Statement of Directors' responsibilities" is contained on 
page 37 within the full audited Annual Report and Financial Statements. 
 
   On behalf of the Board, 
 
   Dr N E Cross 
 
   Chairman 
 
   26 March 2021 
 
   Income statement 
 
 
 
 
                                                                    Year ended 31 December      Year ended 31 December 
                                                                             2020                        2019 
----------------------------------------------------------  ----  --------------------------  -------------------------- 
                                                                  Revenue  Capital   Total    Revenue  Capital   Total 
                                                            Note  GBP'000  GBP'000  GBP'000   GBP'000  GBP'000  GBP'000 
----------------------------------------------------------        -------  -------  --------  -------  -------  -------- 
Gains on investments                                           3        -    1,453     1,453        -   11,170    11,170 
Investment income                                              4      604        -       604    1,416        -     1,416 
Investment management fee                                      5    (505)  (1,516)   (2,021)    (529)  (1,587)   (2,116) 
Other expenses                                                 6    (347)        -     (347)    (306)        -     (306) 
                                                                  -------  -------  --------  -------  -------  -------- 
(Loss)/profit on ordinary activities before tax                     (248)     (63)     (311)      581    9,583    10,164 
Tax (charge)/credit on ordinary activities                     8        -        -         -     (62)       62         - 
                                                                  -------  -------  --------  -------  -------  -------- 
(Loss)/profit and total comprehensive income attributable 
 to shareholders                                                    (248)     (63)     (311)      519    9,645    10,164 
                                                                  -------  -------  --------  -------  -------  -------- 
Basic and diluted (loss)/ return per share (pence)*           10   (0.22)   (0.06)    (0.28)     0.47     8.81      9.28 
----------------------------------------------------------  ----  -------  -------  --------  -------  -------  -------- 
 
 
   * adjusted for treasury shares 
 
   The accompanying notes form an integral part of these Financial 
Statements. 
 
   The total column of this Income statement represents the profit and loss 
account of the Company. The supplementary revenue and capital columns 
have been prepared in accordance with The Association of Investment 
Companies' Statement of Recommended Practice. 
 
   Balance sheet 
 
 
 
 
                                            31 December 2020  31 December 2019 
                                      Note      GBP'000           GBP'000 
------------------------------------        ----------------  ---------------- 
Fixed asset investments                 11            65,152            57,468 
 
Current assets 
Current asset investments               13                 -             2,193 
Trade and other receivables             13             2,038               527 
Cash and cash equivalents                             11,451            32,468 
                                            ----------------  ---------------- 
                                                      13,489            35,188 
 
Total assets                                          78,641            92,656 
 
Payables: amounts falling due within 
one year 
Trade and other payables less than 
 one year                               14             (613)             (634) 
                                            ----------------  ---------------- 
 
Total assets less current 
 liabilities                                          78,028            92,022 
                                            ----------------  ---------------- 
 
Equity attributable to equity 
holders 
Called-up share capital                 15             1,307             1,296 
Share premium                                         37,036            34,949 
Capital redemption reserve                                48                28 
Unrealised capital reserve                            13,595            13,708 
Realised capital reserve                              23,617            23,567 
Other distributable reserve                            2,425            18,474 
                                            ----------------  ---------------- 
Total equity shareholders' funds                      78,028            92,022 
                                            ----------------  ---------------- 
Basic and diluted net asset value 
 per share (pence)*                     16             69.35             82.58 
 
 
 
   * 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 
were authorised for issue on 26 March 2021 and were signed on its behalf 
by 
 
   Dr. N E Cross 
 
   Chairman 
 
   Company number: 04114310 
 
   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 
Return/(loss) and total comprehensive income for the 
 year                                                                -        -           -       1,233   (1,296)          (248)     (311) 
Transfer of previously unrealised gains on disposal 
 of investments                                                      -        -           -     (1,346)     1,346              -         - 
Purchase of shares for cancellation                               (20)        -          20           -         -        (1,473)   (1,473) 
Issue of equity                                                     31    2,138           -           -         -              -     2,169 
Cost of issue of equity                                              -     (51)           -           -         -              -      (51) 
Dividends paid                                                       -        -           -           -         -       (14,328)  (14,328) 
As at 31 December 2020                                           1,307   37,036          48      13,595    23,617          2,425    78,028 
-----------------------------------------------------  ---------------  -------  ----------  ----------  --------  -------------  -------- 
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 GBP26,042,000 (2019: GBP42,041,000) which is 
considered distributable. 
 
   Statement of cash flows 
 
 
 
 
                            Year ended 31 December    Year ended 31 December 
                                     2020                      2019 
                                   GBP'000                    GBP'000 
-------------------------  ------------------------  ------------------------- 
Cash flow from operating 
activities 
Loan stock income 
 received                                       511                      1,360 
Dividend income received                        108                        183 
Deposit interest received                        58                         56 
Investment management fee 
 paid                                       (2,062)                    (2,079) 
Other cash payments                           (344)                      (291) 
Corporation tax paid                              -                          - 
Net cash flow from 
 operating activities                       (1,729)                      (771) 
 
Cash flow from investing 
activities 
Purchase of current asset 
 investments                                    (4)                          - 
Purchase of fixed asset 
 investments                                (9,158)                    (7,022) 
Disposal of current asset 
 investments                                  1,616                          - 
Disposal of fixed asset 
 investments                                  1,936                     31,142 
Net cash flow from 
 investing activities                       (5,610)                     24,120 
 
 
Cash flow from financing 
activities 
Issue of share capital                            -                      7,804 
Cost of issue of equity                        (47)                       (17) 
Dividends paid*                            (12,158)                    (3,794) 
Purchase of own shares 
 (including costs)                          (1,473)                    (2,016) 
Net cash flow from 
 financing activities                      (13,678)                      1,977 
 
 
(Decrease)/increase in 
 cash and cash 
 equivalents                               (21,017)                     25,326 
Cash and cash equivalents 
 at start of period                          32,468                      7,142 
                           ------------------------  ------------------------- 
Cash and cash equivalents 
 at end of period                            11,451                     32,468 
 
 
 
   *The dividends paid shown in the cash flow are different to the 
dividends disclosed in note 9 as a result of the non-cash effect of the 
Dividend Reinvestment Scheme. 
 
   Notes to the Financial Statements 
 
   1. Basis of preparation 
 
   The Financial Statements have been prepared in accordance with 
applicable United Kingdom law and accounting standards, including 
Financial Reporting Standard 102 ("FRS 102"), and with the Statement of 
Recommended Practice "Financial Statements of Investment Trust Companies 
and Venture Capital Trusts" ("SORP") issued by The Association of 
Investment Companies ("AIC"). The Financial Statements have been 
prepared on a going concern basis and further details can be found in 
the Directors' report on pages 32 and 33 of the full Annual Report and 
Financial Statements. 
 
   The preparation of the Financial Statements requires management to make 
judgements and estimates that affect the application of policies and 
reported amounts of assets, liabilities, income and expenses. The most 
critical estimates and judgements relate to the determination of 
carrying value of investments at fair value through profit and loss 
("FVTPL") in accordance with FRS 102 sections 11 and 12. The Company 
values investments by following the International Private Equity and 
Venture Capital Valuation ("IPEV") Guidelines as updated in 2018 and 
further detail on the valuation techniques used are outlined in note 2 
below. 
 
   Company information can be found on page 2 of the full Annual Report and 
Financial Statements. 
 
   2. Accounting policies 
 
   Fixed and current asset investments 
 
   The Company's business is investing in financial assets with a view to 
profiting from their total return in the form of income and capital 
growth. This portfolio of financial assets is managed, and its 
performance evaluated on a fair value basis, in accordance with a 
documented investment policy, and information about the portfolio is 
provided internally on that basis to the Board. 
 
   In accordance with the requirements of FRS 102, those undertakings in 
which the Company holds more than 20 per cent. of the equity as part of 
an investment portfolio are not accounted for using the equity method. 
In these circumstances the investment is measured at FVTPL. 
 
   Upon initial recognition (using trade date accounting) investments, 
including loan stock, are classified by the Company as FVTPL and are 
included at their initial fair value, which is cost (excluding expenses 
incidental to the acquisition which are written off to the Income 
statement). 
 
   Subsequently, the investments are valued at 'fair value', which is 
measured as follows: 
 
 
   -- Investments listed on recognised exchanges are valued at their bid prices 
      at the end of the accounting period or otherwise at fair value based on 
      published price quotations. 
 
   -- Unquoted investments, where there is not an active market, are valued 
      using an appropriate valuation technique in accordance with the IPEV 
      Guidelines. Indicators of fair value are derived using established 
      methodologies including earnings multiples, revenue multiples, the level 
      of third party offers received, cost or prices of recent investment 
      rounds, net assets and industry valuation benchmarks. Where price of 
      recent investment is used as a starting point for estimating fair value 
      at subsequent measurement dates, this has been benchmarked using an 
      appropriate valuation technique permitted by the IPEV guidelines. 
 
   -- In situations where cost or price of recent investment is used, 
      consideration is given to the circumstances of the portfolio company 
      since that date in determining fair value. This includes consideration of 
      whether there is any evidence of deterioration or strong definable 
      evidence of an increase in value. In the absence of these indicators, the 
      investment in question is valued at the amount reported at the previous 
      reporting date. Examples of events or changes that could indicate a 
      diminution include: 
 
          -- the performance and/or prospects of the underlying business are 
             significantly below the expectations on which the investment was 
             based; 
 
          -- a significant adverse change either in the portfolio company's 
             business or in the technological, market, economic, legal or 
             regulatory environment in which the business operates; or 
 
          -- market conditions have deteriorated, which may be indicated by a 
             fall in the share prices of quoted businesses operating in the 
             same or related sectors. 
 
 
   Investments are recognised as financial assets on legal completion of 
the investment contract and are de-recognised on legal completion of the 
sale of an investment. 
 
   Dividend income is not recognised as part of the fair value movement of 
an investment but is recognised separately as investment income through 
the other distributable reserve when a share becomes ex-dividend. 
 
   Current assets and payables 
 
   Receivables (including debtors due after more than one year), payables 
and cash are carried at amortised cost, in accordance with FRS 102. 
Debtors due after more than one year meet the definition of a financing 
transaction held at amortised cost, and interest will be recognised 
through capital over the credit period using the effective interest 
method. There are no financial liabilities other than payables. 
 
   Investment income 
 
   Equity income 
 
   Dividend income is included in revenue when the investment is quoted 
ex-dividend. 
 
   Unquoted loan stock 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 fee, performance incentive fee and expenses 
 
   All expenses have been accounted for on an accruals basis. Expenses are 
charged through the other distributable reserve except the following 
which are charged through the realised capital reserve: 
 
 
   -- 75 per cent. of management fees and performance incentive fees, if any, 
      are allocated to the realised capital reserve. This is in line with the 
      Board's expectation that over the long term 75 per cent. of the Company's 
      investment returns will be in the form of capital gains; and 
 
   -- expenses which are incidental to the purchase or disposal of an 
      investment are charged through the realised capital reserve. 
 
   Taxation 
 
   Taxation is applied on a current basis in accordance with FRS 102. 
Current tax is tax payable (refundable) in respect of the taxable profit 
(tax loss) for the current period or past reporting periods using the 
tax rates and laws that have been enacted or substantively enacted at 
the financial reporting date. Taxation associated with capital expenses 
is applied in accordance with the SORP. 
 
   Deferred tax is provided in full on all timing differences at the 
reporting date. Timing differences are differences between taxable 
profits and total comprehensive income as stated in the Financial 
Statements that arise from the inclusion of income and expenses in tax 
assessments in periods different from those in which they are recognised 
in the Financial Statements. As a VCT the Company has an exemption from 
tax on capital gains. The Company intends to continue meeting the 
conditions required to obtain approval as a VCT in the foreseeable 
future. The Company, therefore, should have no material deferred tax 
timing differences arising in respect of the revaluation or disposal of 
investments and the Company has not provided for any deferred tax. 
 
   Reserves 
 
   Called-up share capital 
 
   This reserve accounts for the nominal value of the shares. 
 
   Share premium 
 
   This reserve accounts for the difference between the price paid for the 
Company's shares and the nominal value of those shares, less issue 
costs. 
 
   Capital redemption reserve 
 
   This reserve accounts for amounts by which the issued share capital is 
diminished through the repurchase and cancellation of the Company's own 
shares. 
 
   Unrealised capital reserve 
 
   Increases and decreases in the valuation of investments held at the year 
end against cost are included in this reserve. 
 
   Realised capital reserve 
 
   The following are disclosed in this reserve: 
 
 
   -- gains and losses compared to cost on the realisation of investments, or 
      permanent diminutions in value; 
 
   -- expenses, together with the related taxation effect, charged in 
      accordance with the above policies; and 
 
   -- dividends paid to equity holders where paid out by capital. 
 
   Other distributable reserve 
 
   The special reserve, treasury share reserve and the revenue reserve were 
combined in 2012 to form a single reserve named other distributable 
reserve. 
 
   This reserve accounts for movements from the revenue column of the 
Income statement, the payment of dividends, the buy-back of shares and 
other non-capital realised movements. 
 
   Dividends 
 
   Dividends by the Company are accounted for in the period in which the 
dividend is paid or approved at the Annual General Meeting. 
 
   Segmental reporting 
 
   The Directors are of the opinion that the Company is engaged in a single 
operating segment of business, being investment in smaller companies 
principally based in the UK. 
 
   3. Gains/(losses) on investments 
 
 
 
 
                                             Year ended         Year ended 
                                           31 December 2020   31 December 2019 
                                               GBP'000            GBP'000 
Unrealised gains on fixed asset 
 investments                                          1,233              1,115 
Unrealised gains on current asset 
 investments                                              -                272 
Realised gains on fixed asset 
 investments                                            801              9,783 
Realised losses on current asset 
 investments                                          (581)                  - 
                                                      1,453             11,170 
                                          -----------------  ----------------- 
 
 
   4. Investment income 
 
 
 
 
                           Year ended         Year ended 
                         31 December 2020   31 December 2019 
                             GBP'000            GBP'000 
---------------------- 
Loan stock interest                   510              1,105 
Dividend income                        39                253 
Bank deposit interest                  55                 58 
                                      604              1,416 
                        -----------------  ----------------- 
 
 
   5. Investment management fees 
 
 
 
 
                                             Year ended         Year ended 
                                           31 December 2020   31 December 2019 
                                               GBP'000            GBP'000 
Investment management fee charged to 
 revenue                                                505                529 
Investment management fee charged to 
 capital                                              1,516              1,587 
                                          -----------------  ----------------- 
                                                      2,021              2,116 
                                          -----------------  ----------------- 
 
 
   Further details of the Management agreement under which the investment 
management fee is paid are given in the Strategic report above. 
 
   During the year, services of a total value of GBP2,021,000 (2019: 
GBP2,116,000) were purchased by the Company from Albion Capital Group 
LLP in respect of management fees. At the financial year end, the amount 
due to Albion Capital Group LLP in respect of these services disclosed 
as accruals was GBP477,000 (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 
Group LLP by way of a reduction in management fees. During the year, the 
management fee was reduced by GBP78,000 as a result of this cap (2019: 
GBP136,000). 
 
   During the year, the Company was not charged by Albion Capital Group LLP 
in respect of Patrick Reeve's services as a Director (2019: nil). 
 
   Albion Capital Group LLP, its partners and staff (including Patrick 
Reeve) held 1,462,348 Ordinary shares in the Company as at 31 December 
2020. 
 
   Albion Capital Group LLP is, from time-to-time, eligible to receive 
arrangement fees and monitoring fees from portfolio companies. During 
the year ended 31 December 2020, fees of GBP237,000 attributable to the 
investments of the Company were received by Albion Capital Group LLP 
pursuant to these arrangements (2019: GBP241,000). 
 
   During the year, GBP4,000 (2019: GBPnil) was invested into 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 
Capital Group LLP agreed to reduce its management fee relating to the 
investment in the OUEIF by 0.75 per cent. per annum, which represents 
the OUEIF management fee charged by OLIM. This resulted in a further 
reduction of the management fee of GBP9,000 (2019: GBP16,000). During 
the year, the Company disposed of its investment in the OUEIF. Full 
details of the disposal can be found in the Portfolio of investments on 
page 26 of the full Annual Report and Financial Statements. 
 
   6. Other expenses 
 
 
 
 
                                                         Year ended         Year ended 
                                                       31 December 2020   31 December 2019 
                                                           GBP'000            GBP'000 
 
  Directors' fees (including NIC)                                   119                108 
Auditor's remuneration for statutory audit services 
 (excluding VAT)                                                     34                 31 
Tax services                                                         19                 23 
Other administrative expenses                                       175                144 
                                                                    347                306 
                                                      -----------------  ----------------- 
 
   7. Directors' fees 
 
   The amounts paid to and on behalf of the Directors during the year are 
as follows: 
 
 
 
 
                        Year ended         Year ended 
                      31 December 2020   31 December 2019 
                          GBP'000            GBP'000 
 
  Directors' fees                  110                100 
National insurance                   9                  8 
                     -----------------  ----------------- 
                                   119                108 
                     -----------------  ----------------- 
 
 
   The Company's key management personnel are the non-executive Directors. 
Further information regarding Directors' remuneration can be found in 
the Directors' remuneration report on pages 43 to 45 of the full Annual 
Report and Financial Statements. 
 
   8. Tax on ordinary activities 
 
 
 
 
                                            Year ended         Year ended 
                                      31 December 2020   31 December 2019 
                                               GBP'000            GBP'000 
                                                     -                  - 
  UK corporation tax charge payable 
                                     -----------------  ----------------- 
 
 
   Factors affecting the tax charge: 
 
 
 
 
                                                            Year ended         Year ended 
                                                          31 December 2020   31 December 2019 
                                                              GBP'000            GBP'000 
 
  (Loss)/return on ordinary activities before taxation               (311)             10,164 
                                                         -----------------  ----------------- 
 
Tax charge on (loss)/profit at the average companies 
 rate of 19% (2019: 19%)                                              (59)              1,931 
 
Factors affecting the charge: 
Non-taxable gains                                                    (276)            (2,122) 
Income not taxable                                                     (7)               (48) 
Excess management expenses carried forward                             342                239 
                                                                         -                  - 
                                                         -----------------  ----------------- 
 
 
   The tax charge for the year shown in the Income statement is lower than 
the average companies rate of corporation tax in the UK of 19 per cent. 
(2019: 19 per cent.). The differences are explained above. 
 
   Notes 
 
   (i)            Venture Capital Trusts are not subject to corporation tax 
on capital gains. 
 
   (ii)           Tax relief on expenses charged to capital has been 
determined by allocating tax relief to expenses by reference to the 
applicable corporation tax rate and allocating the relief between 
revenue and capital in accordance with the SORP. 
 
   (iii)          The Company has excess management expenses of 
GBP5,407,000 (2019: GBP3,606,000) that are available for offset against 
future profits. A deferred tax asset of GBP1,027,000 (2019: GBP613,000) 
has not been recognised in respect of these losses as they will be 
recoverable only to the extent that the Company has sufficient future 
taxable profits. 
 
   9. Dividends 
 
 
 
 
                                                            Year ended         Year ended 
                                                          31 December 2020   31 December 2019 
                                                              GBP'000            GBP'000 
------------------------------------------------------- 
 
Dividend of 2.00p per share paid on 28 June 2019                         -              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                  - 
Special dividend of 9.00p per share paid on 30 October 
 2020                                                                9,942                  - 
Dividend of 1.95p per share paid on 31 December 2020                 2,185                  - 
                                                                    14,328              4,460 
                                                         -----------------  ----------------- 
 
 
   In addition to the dividends summarised above, the Board has declared a 
first dividend for the year ending 31 December 2021 of 1.73 pence per 
share. The dividend will be paid on 30 June 2021 to shareholders on the 
register on 4 June 2021. The total dividend will be approximately 
GBP2,312,000. All dividends are paid out of the other distributable 
reserve as shown in the Balance sheet. 
 
   10. Basic and diluted (loss)/return per share 
 
 
 
 
                                                                             Year ended 31   Year ended 31 December 
                                                                             December 2020   2019 
                                                          Revenue    Capital       Total     Revenue  Capital   Total 
-------------------------------------------------------- 
 
(Loss)/profit attributable to equity shares (GBP'000)       (248)         (63)        (311)      519    9,645    10,164 
Weighted average shares in issue (adjusted for treasury 
 shares)                                                           110,981,864                      109,562,226 
(Loss)/return attributable per equity share (pence)        (0.22)       (0.06)       (0.28)     0.47     8.81      9.28 
 
 
   The weighted average number of shares is calculated adjusted for 
treasury shares of 18,196,470 (2019: 18,196,470). 
 
   There are no convertible instruments, derivatives or contingent share 
agreements in issue, and therefore no dilution affecting the 
return/(loss) per share. The basic return/(loss) per share is therefore 
the same as the diluted return/(loss) per share. 
 
   11. Fixed asset investments 
 
 
 
 
Investments held at fair value through      31 December 2020  31 December 2019 
profit or loss                                   GBP'000           GBP'000 
------------------------------------------ 
Unquoted equity and preference shares                 45,891            40,332 
Quoted equity                                              -               135 
Unquoted loan stock                                   19,261            17,001 
                                                      65,152            57,468 
                                            ----------------  ---------------- 
 
 
 
 
 
 
                                                      31 December 2020  31 December 2019 
                                                           GBP'000           GBP'000 
---------------------------------------------------- 
Opening valuation                                               57,468            70,737 
Purchases at cost                                               10,375             8,043 
Disposal proceeds                                              (4,724)          (31,956) 
Realised gains                                                     801             9,783 
Movement in loan stock accrued income                              (1)             (255) 
Unrealised gains                                                 1,233             1,115 
                                                      ----------------  ---------------- 
Closing valuation                                               65,152            57,468 
                                                      ----------------  ---------------- 
 
Movement in loan stock accrued income 
Opening accumulated loan stock accrued income                       88               343 
Movement in loan stock accrued income                              (1)             (255) 
                                                      ----------------  ---------------- 
Closing accumulated loan stock accrued income                       87                88 
                                                      ----------------  ---------------- 
 
Movement in unrealised gains 
Opening accumulated unrealised gains                            13,727            16,988 
Transfer of previously unrealised gains to realised 
 reserve on disposal of investments                            (1,413)           (4,376) 
Movement in unrealised gains                                     1,233             1,115 
                                                      ----------------  ---------------- 
Closing accumulated unrealised gains                            13,547            13,727 
                                                      ----------------  ---------------- 
 
Historic cost basis 
Opening book cost                                               43,653            53,406 
Purchases at cost                                               10,375             8,043 
Sales at cost                                                  (2,510)          (17,796) 
Closing book cost                                               51,518            43,653 
                                                      ----------------  ---------------- 
 
 
   Purchases and disposals detailed above do not agree to the Statement of 
cash flows due to restructuring of investments, conversion of 
convertible loan stock and settlement receivables and payables. 
 
   The Company does not hold any assets as the result of the enforcement of 
security during the period and believes that the carrying values for 
both those valued below cost and past due assets are covered by the 
value of security held for these loan stock investments. 
 
   Unquoted fixed asset investments are valued at fair value in accordance 
with the IPEV guidelines as follows: 
 
 
 
 
                                                    31 December 2020  31 December 2019 
Valuation methodology                                    GBP'000           GBP'000 
-------------------------------------------------- 
Cost and price of recent investment (reviewed for 
 impairment or uplift)                                        30,244            32,087 
Revenue multiple                                              12,507             1,845 
Third party valuation -- discounted cash flow                 10,937            11,113 
Third party valuation -- earnings multiple                     5,955             4,729 
Net assets                                                     2,869             5,487 
Earnings multiple                                              1,962             2,072 
Discounted offer price                                           678                 - 
                                                              65,152            57,333 
                                                    ----------------  ---------------- 
 
 
   When using the cost or price of a recent investment in the valuations, 
the Company looks to re-calibrate this price at each valuation point by 
reviewing progress within the investment, comparing against the initial 
investment thesis, assessing if there are any significant events or 
milestones that would indicate the value of the investment has changed 
and considering whether a market-based methodology (i.e. using multiples 
from comparable public companies) or a discounted cashflow forecast 
would be more appropriate. 
 
   The main inputs into the calibration exercise, and for the valuation 
models using multiples, are revenue, EBITDA and P/E multiples (based on 
the most recent revenue, EBITDA or earnings achieved and equivalent 
corresponding revenue, EBITDA or earnings multiples of comparable 
companies), quality of earnings assessments and comparability difference 
adjustments. Revenue multiples are often used, rather than EBITDA or 
earnings, due to the nature of the Company's investments, being in 
growth and technology companies which are not normally expected to 
achieve profitability or scale for a number of years. Where an 
investment has achieved scale and profitability the Company would 
normally then expect to switch to using an EBITDA or earnings multiple 
methodology. 
 
   In the calibration exercise and in determining the valuation for the 
Company's equity instruments, comparable trading multiples are used. In 
accordance with the Company's policy, appropriate comparable companies 
based on industry, size, developmental stage, revenue generation and 
strategy are determined and a trading multiple for each comparable 
company identified is then calculated. The multiple is calculated by 
dividing the enterprise value of the comparable group by its revenue, 
EBITDA or earnings. The trading multiple is then adjusted for 
considerations such as illiquidity, marketability and other differences, 
advantages and disadvantages between the portfolio company and the 
comparable public companies based on company specific facts and 
circumstances. 
 
   Fair value investments had the following movements between valuation 
methodologies: 
 
 
 
 
Change in valuation             31 December 2020  Explanatory note 
methodology (2019 to 2020)               GBP'000 
                                                  ---------------------------- 
 
Price of recent investment to              9,711  More appropriate valuation 
revenue multiple                                  methodology 
Net assets to third party                  1,396  Third party valuation 
valuation - earnings                              undertaken 
multiple 
Price of recent investment to                678  Third party offer received 
discounted offer price 
Cost and Price of recent                     305  Covid-19 impact on portfolio 
investment to net assets                          company has led to 
                                                  revaluation 
Bid price to net assets                      135  Company delisted and in 
                                                  liquidation 
Revenue multiple to net                        5  Covid-19 impact on portfolio 
assets                                            company has led to 
                                                  revaluation 
 
 
   The valuation will be the most appropriate valuation methodology for an 
investment within its market, with regard to the financial health of the 
investment and the IPEV Guidelines. The Directors believe that, within 
these parameters, there are no other more relevant methods of valuation 
which would be reasonable as at 31 December 2020. 
 
   FRS 102 and the SORP requires the Company to disclose the inputs to the 
valuation methods applied to its investments measured at FVTPL in a fair 
value hierarchy. The table below sets out fair value hierarchy 
definitions using FRS102 s.11.27. 
 
 
 
 
Fair value hierarchy  Definition 
--------------------  ---------------------------------------------------- 
Level 1               Unadjusted quoted prices in an active market 
--------------------  ---------------------------------------------------- 
Level 2               Inputs to valuations are from observable sources and 
                       are directly or indirectly derived from prices 
--------------------  ---------------------------------------------------- 
Level 3               Inputs to valuations not based on observable market 
                       data 
--------------------  ---------------------------------------------------- 
 
 
   Quoted investments are valued according to Level 1 valuation methods. 
Unquoted equity, preference shares and loan stock are all valued 
according to Level 3 valuation methods. 
 
   Investments held at fair value through profit or loss (Level 3) had the 
following movements: 
 
 
 
 
                                        31 December 2020  31 December 2019 
                                                 GBP'000      GBP'000 
--------------------------------------  ----------------  ---------------- 
Opening balance                                   57,333            69,938 
Purchases at cost*                                10,510             8,043 
Disposals proceeds                               (4,724)          (31,917) 
Movement in loan stock accrued income                (1)             (255) 
Realised gains                                       801            10,409 
Unrealised gains                                   1,233             1,115 
                                        ----------------  ---------------- 
Closing balance                                   65,152            57,333 
                                        ----------------  ---------------- 
 
 
 
   *Additions do not agree to the cash flow due to GBP1,487,000 of loan 
stock conversions and non-cash consideration, and GBP135,000 of delisted 
investments in the year. 
 
   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. 69 per cent. of the portfolio of 
investments, consisting of equity and loan stock, is based on recent 
investment price, discounted offer price, net assets and cost, and as 
such the Board believe that changes to reasonable possible alternative 
input assumptions (by adjusting the earnings and revenue multiples) for 
the valuation of the remainder of the portfolio could lead to a 
significant change in the fair value of the portfolio. Therefore, for 
the remainder of the portfolio, the Board has adjusted the inputs for a 
number of the largest portfolio companies (by value) resulting in a 
total coverage of 86 per cent. of the portfolio of investments. The main 
inputs considered for each type of valuation is as follows: 
 
 
 
 
                                                             Change in 
                                                            fair value 
                                                    Change      of         Change in NAV 
Valuation    Portfolio company               Base     in    investments     (pence per 
technique    sector               Input      Case*  input    (GBP'000)        share) 
-----------  -------------------  ---------  -----  ------  -----------  ----------------- 
Revenue      Software and other   Revenue 
 multiple     technology           multiple   5.4x    +0.5          226               0.20 
-----------  -------------------  ---------  -----  ------  -----------  ----------------- 
                                                      -0.5        (226)             (0.20) 
  -----------------------------------------  -----  ------  -----------  ----------------- 
             Healthcare 
Revenue       (including digital  Revenue 
 multiple     healthcare)          multiple   4.5x    +0.5          381               0.34 
-----------  -------------------  ---------  -----  ------  -----------  ----------------- 
                                                      -0.5        (381)             (0.34) 
  -----------------------------------------  -----  ------  -----------  ----------------- 
Third party 
 valuation 
 -- 
 discounted                       Discount 
 cash flow   Renewable energy      rate      5.75%   +0.5%        (245)             (0.22) 
-----------  -------------------  ---------  -----  ------  -----------  ----------------- 
                                                     -0.5%          270               0.24 
  -----------------------------------------  -----  ------  -----------  ----------------- 
Third party 
 valuation 
 -- 
 earnings                         Earnings 
 multiple    Education             multiple    11x    +1.0          149               0.13 
-----------  -------------------  ---------  -----  ------  -----------  ----------------- 
                                                      -1.0        (149)             (0.13) 
  -----------------------------------------  -----  ------  -----------  ----------------- 
 
 
   * As detailed in the accounting policies above, the base case is based 
on market comparables, discounted where appropriate for marketability, 
in accordance with the IPEV guidelines. 
 
   The impact of these changes could result in an overall increase in the 
valuation of the equity investments by GBP1,026,000 (2.2%) or a decrease 
in the valuation of equity investments by GBP1,001,000 (2.2%). 
 
   12. Significant interests 
 
   The principal activity of the Company is to select and hold a portfolio 
of investments. 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 investments listed below are held 
as part of an investment portfolio and therefore, as permitted by FRS 
102 section 14.4B, they are measured at FVTPL and not accounted for 
using the equity method. 
 
   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 December 2020 as described below: 
 
 
 
 
                                                                                                                         % total 
              Registered    Profit/(loss) before tax  Net assets/(liabilities)                            % class and    voting 
 Company      postcode               GBP'000          GBP'000                     Result for year ended    share type    rights 
------------  ------------  ------------------------  ------------------------  -----------------------  --------------  ------- 
 
Albion 
 Investment 
 Properties                                                                                                     31.8% A 
 Limited      EC1M 5QL, UK                      n/a*                     (706)         31 December 2019        Ordinary    31.8% 
MHS 1 
 Limited      EC1M 5QL, UK                   (1,086)                   (8,965)           31 August 2020  22.5% Ordinary    22.5% 
memsstar                                                                                                        67.3% A 
 Limited      EH3 9EP, UK                        644                     2,577         31 December 2019        Ordinary    30.1% 
Premier 
 Leisure 
 (Suffolk) 
 Limited      EC1M 5QL, UK                      n/a*                   (1,506)           31 August 2020  25.8% Ordinary    25.8% 
The Q Garden 
 Company                                                                                                        33.4% A 
 Limited      EC1M 5QL, UK                      n/a*                   (4,595)           31 August 2020        Ordinary    33.4% 
 
 
 
   *The company files filleted accounts which does not disclose this 
information. 
 
   13. Current assets 
 
 
 
 
Current asset investments               31 December 2020  31 December 2019 
                                            GBP'000           GBP'000 
--------------------------------------  ----------------  ---------------- 
SVS Albion OLIM UK Equity Income Fund                  -             2,193 
                                        ----------------  ---------------- 
 
 
   Current asset investments at 31 December 2019 consisted of cash invested 
in SVS Albion OLIM UK Equity Income Fund and was capable of realisation 
within 7 days. These fell into the level 1 fair value hierarchy as 
defined in note 11.  The Company disposed of its investment in the SVS 
Albion OLIM UK Equity Income Fund. Further details can be found in the 
Portfolio of investments section on page 26 of the full Annual Report 
and Financial Statements. 
 
 
 
 
Trade and other receivables             31 December 2020  31 December 2019 
                                            GBP'000           GBP'000 
--------------------------------------  ----------------  ---------------- 
Prepayments and accrued income                        25                22 
Other receivables                                      1                73 
Deferred consideration under one year                111               432 
Deferred consideration over one year               1,901                 - 
                                                   2,038               527 
                                        ----------------  ---------------- 
 
 
   The deferred consideration over one year relates to the sale of 
G.Network Communications Limited in December 2020. These proceeds are 
receivable in January 2024, and have been discounted to present value at 
the prevailing market rate, including a provision for counterparty risk. 
This constitutes a financing transaction and has been accounted for 
using the policy disclosed in note 2. 
 
   The Directors consider that the carrying amount of receivables is not 
materially different to their fair value. 
 
   14. Payables: amounts falling due within one year 
 
 
 
 
                                31 December 2020  31 December 2019 
                                    GBP'000           GBP'000 
-----------------------------  -----------------  ---------------- 
Trade payables                                33                15 
Accruals and deferred income                 580               619 
                                             613               634 
                               -----------------  ---------------- 
 
 
   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 
--------------------------------------------------------  ------- 
129,624,437 Ordinary shares of 1 penny each at 31 
 December 2019                                              1,296 
3,117,737 Ordinary shares of 1 penny each issued during 
 the year                                                      31 
2,031,283 Ordinary shares of 1 penny each cancelled 
 during the year                                             (20) 
--------------------------------------------------------  ------- 
130,710,891 Ordinary shares of 1 penny each at 31 
 December 2020                                              1,307 
--------------------------------------------------------  ------- 
 
18,196,470 Ordinary shares of 1 penny each held in 
 treasury at 31 December 2019                               (182) 
18,196,470 Ordinary shares of 1 penny each held in 
 treasury at 31 December 2020                               (182) 
--------------------------------------------------------  ------- 
 
Voting rights of 112,514,421 Ordinary shares of 1 
 penny each at 31 December 2020                             1,125 
--------------------------------------------------------  ------- 
 
 
   The Company purchased 2,031,283 Ordinary shares to be cancelled (2019: 
2,678,000 to be held in treasury) at a cost of GBP1,473,000 including 
stamp duty (2019: GBP2,016,000) during the year ended 31 December 2020. 
Total share buy backs in 2020 represents 1.6 per cent. (2019: 2.1 per 
cent.) of called-up share capital. 
 
   The Company holds a total of 18,196,470 shares (2019: 18,196,470) in 
treasury representing 13.9 per cent. (2019: 14.0 per cent.) of the 
issued Ordinary share capital at 31 December 2020. 
 
   Under the terms of the Dividend Reinvestment Scheme, the following new 
Ordinary shares of nominal value 1 penny each were allotted during the 
year: 
 
 
 
 
            Number of                                        Issue price        Net 
Date of      shares    Aggregate nominal value of shares     (pence per      invested   Opening market price on allotment date (pence per 
allotment   allotted               (GBP'000)                   share)        (GBP'000)                        share) 
---------- 
30 June 
 2020         421,235                                  4              75.37        302                                              72.00 
30 October 
 2020       2,197,279                                 22              68.85      1,495                                              65.50 
31 
 December 
 2020         499,223                                  5              67.80        321                                              64.50 
            3,117,737                                 31                         2,118 
            ---------  ---------------------------------                     --------- 
 
 
   16. Basic and diluted net asset value per share 
 
 
 
 
                                         31 December 2020    31 December 2019 
                                         (pence per share)   (pence per share) 
---------------------------------------  -----------------  ------------------ 
Basic and diluted net asset value per 
 share                                               69.35               82.58 
                                         -----------------  ------------------ 
 
 
   The basic and diluted net asset value per share at the year end is 
calculated in accordance with the Articles of Association and is based 
upon total shares in issue (less treasury shares) of 112,514,421 at 31 
December 2020 (2019: 111,427,967). 
 
   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 above in the 
Chairman's statement. 
 
   The Company's financial instruments comprise equity and loan stock 
investments in quoted and unquoted companies, cash balances, 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 financial risks arising from the Company's operations are: 
 
 
   -- investment (or market) risk (which comprises investment price and cash 
      flow interest rate risk); 
 
   -- credit risk; and 
 
   -- liquidity risk. 
 
 
   The Board regularly reviews and agrees policies for managing each of 
these risks. There have been no changes in the nature of the risks that 
the Company has faced during the past year, and apart from where noted 
below, there have been no changes in the objectives, policies or 
processes for managing risks during the past year. The key risks are 
summarised below. 
 
   Investment risk 
 
   As a Venture Capital Trust, it is the Company's specific nature to 
evaluate and control the investment risk of its portfolio in quoted and 
unquoted investments, details of which are shown pages 24 to 26 of the 
full Annual Report and Financial Statements. Investment risk is the 
exposure of the Company to the revaluation and devaluation of 
investments. The main driver of investment risk is the operational and 
financial performance of the portfolio company and the dynamics of 
market quoted comparators. The Manager receives management accounts from 
portfolio companies, and members of the investment management team often 
sit on the boards of unquoted portfolio companies; this enables the 
close identification, monitoring and management of investment risk. 
 
   The Manager and the Board formally review investment risk (which 
includes market price risk), both at the time of initial investment and 
at quarterly Board meetings. 
 
   The Board monitors the prices at which sales of investments are made to 
ensure that profits to the Company are maximised, and that valuations of 
investments retained within the portfolio appear sufficiently prudent 
and realistic compared to prices being achieved in the market for sales 
of quoted and unquoted investments. 
 
   The maximum investment risk as at the Balance sheet date is the value of 
the fixed asset investment portfolio which is GBP65,152,000 (2019: fixed 
and current asset investments: GBP59,661,000). Fixed asset investments 
form 83 per cent. of the net asset value as at 31 December 2020 (2019: 
fixed and current asset investments: 65 per cent.). 
 
   More details regarding the classification of fixed and current asset 
investments are shown in notes 11 and 13. 
 
   Investment price risk 
 
   Investment price risk is the risk that the fair value of future 
investment cash flows will fluctuate due to factors specific to an 
investment instrument or to a market in similar instruments. As a 
Venture Capital Trust, the Company invests in accordance with the 
investment policy set out above. The management of risk within the 
venture capital portfolio is addressed through careful investment 
selection, by diversification across different industry segments, by 
maintaining a wide spread of holdings in terms of financing stage and by 
limitation of the size of individual holdings. The Directors monitor the 
Manager's compliance with the investment policy, review and agree 
policies for managing this risk and monitor the overall level of risk on 
the investment portfolio on a regular basis. 
 
   Valuations are based on the most appropriate valuation methodology for 
an investment within its market, with regard to the financial health of 
the investment and the IPEV Guidelines. Details of the industries in 
which investments have been made are contained in the Portfolio of 
investments section on pages 24 to 26 of the full Annual Report and 
Financial Statements and in the Strategic report. 
 
   As required under FRS 102 the Board is required to illustrate by way of 
a sensitivity analysis the extent to which the assets are exposed to 
market risk. The Board considers that the value of the fixed asset 
investment portfolio is sensitive to a change of 10% based on the 
current economic climate. The impact of a 10% change has been selected 
as this is considered reasonable given the current level of volatility 
observed. When considering the appropriate level of sensitivity to be 
applied, the Board has considered both historic performance and future 
expectations. 
 
   The sensitivity of a 10% increase or decrease in the valuation of the 
fixed asset investment portfolio (keeping all other variables constant) 
would increase or decrease the net asset value and return for the year 
by GBP6,515,000. Further sensitivity analysis on fixed asset investments 
is included in note 11. 
 
   Interest rate risk 
 
   The Company is exposed to fixed and floating rate interest rate risk on 
its financial assets. On the basis of the Company's analysis, it was 
estimated that a rise of half a percentage point in all interest rates 
would have decreased the loss before tax for the year by approximately 
GBP116,000 (2019: GBP147,000). Furthermore, it was 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 
unquoted loan stock during the year was approximately 3.2 per cent. 
(2019: 4.6 per cent.). The weighted average period to maturity for the 
unquoted loan stock is approximately 3.9 years (2019: 3.9 years). 
 
   The Company's financial assets and liabilities, all denominated in 
pounds sterling, consist of the following: 
 
 
 
 
                                             31 December 2020                           31 December 2019 
                                         Floating rate  Non-interest bearing   Total                          Floating rate  Non-interest bearing   Total 
                     Fixed rate GBP'000     GBP'000            GBP'000         GBP'000    Fixed rate GBP'000     GBP'000            GBP'000         GBP'000 
------------------ 
 
  Unquoted equity                     -              -                45,891    45,891                     -              -                40,332    40,332 
Quoted equity                         -              -                     -         -                     -              -                   135       135 
Unquoted loan 
 stock                           18,297              -                   964    19,261                15,939              -                 1,062    17,001 
Current asset 
 investments                          -              -                     -         -                     -              -                 2,193     2,193 
Receivables*                          -              -                 2,013     2,013                     -              -                   509       509 
Current 
 liabilities                          -              -                 (613)     (613)                     -              -                 (634)     (634) 
Cash                                  -         11,451                     -    11,451                     -         32,468                     -    32,468 
                    -------------------  -------------  --------------------  --------  --------------------  -------------  --------------------  -------- 
Total                            18,297         11,451                48,255    78,003                15,939         32,468                43,597    92,004 
                    -------------------  -------------  --------------------  --------  --------------------  -------------  --------------------  -------- 
 
 
   *The receivables do not reconcile to the Balance sheet as prepayments 
are not included in the above table. 
 
   Credit risk 
 
   Credit risk is the risk that the counterparty to a financial instrument 
will fail to discharge an obligation or commitment that it has entered 
into with the Company. The Company is exposed to credit risk through its 
receivables, investment in unquoted loan stock, and through the holding 
of cash on deposit with banks. 
 
   The Manager evaluates credit risk on loan stock prior to investment, and 
as part of its ongoing monitoring of investments. In doing this, it 
takes into account the extent and quality of any security held. For loan 
stock investments made prior to 6 April 2018, which account for 62.8 per 
cent. of loan stock value, typically loan stock instruments will have a 
fixed or floating charge, which may or may not be subordinated, over the 
assets of the portfolio company in order to mitigate the gross credit 
risk. 
 
   The Manager receives management accounts from portfolio companies, and 
members of the investment management team sit on the boards of unquoted 
portfolio companies; this enables the close identification, monitoring 
and management of investment specific credit risk. 
 
   The Manager and the Board formally review credit risk (including 
receivables) and other risks, both at the time of initial investment and 
at quarterly Board meetings. 
 
   The Company's total gross credit risk as at 31 December 2020 was limited 
to GBP19,261,000 (2019: GBP17,001,000) of unquoted loan stock 
instruments, GBP11,451,000 (2019: GBP32,468,000) cash deposits with 
banks and GBP2,038,000 (2019: GBP527,000) of other receivables. 
 
   At the Balance sheet date, the cash held by the Company was held with 
Lloyds Bank plc, Scottish Widows Bank plc (part of Lloyds Banking Group), 
Barclays Bank plc and National Westminster Bank plc. Credit risk on cash 
transactions was mitigated by transacting with counterparties that are 
regulated entities subject to prudential supervision, with high credit 
ratings assigned by international credit-rating agencies. 
 
   The Company has an informal policy of limiting counterparty banking and 
floating rate note exposure to a maximum of 20 per cent. of net asset 
value for any one counterparty. 
 
   The credit profile of unquoted loan stock is described under liquidity 
risk below. 
 
   Liquidity risk 
 
   Liquid assets are held as cash on current account, on deposit, in bonds 
or short term money market account. 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 GBP7,572,000 as at 31 December 2020 (2019: 
GBP8,979,000). 
 
   The Company has no committed borrowing facilities as at 31 December 2020 
(2019: GBPnil). The Company had cash balances of GBP11,451,000 (2019: 
GBP32,468,000) and no current asset investments (2019: GBP2,193,000), 
which are considered to be readily realisable within the timescales 
required to make cash available for investment. The main cash outflows 
are for new investments, share buy-backs 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 GBP613,000 as at 31 December 2020 (2019: GBP634,000). 
 
   The carrying value of loan stock investments analysed by expected 
maturity dates is as follows: 
 
 
 
 
                                31 December 2020                      31 December 2019 
Redemption   Fully performing  Valued below cost  Past due   Total    Fully performing  Valued below cost  Past due   Total 
date              GBP'000           GBP'000        GBP'000   GBP'000       GBP'000           GBP'000        GBP'000   GBP'000 
----------- 
Less than 
 one year               2,266              2,341     1,673     6,280             2,438              4,427       732     7,597 
1-2 years               2,036                 26        79     2,141               595                 76         -       671 
2-3 years                 195                 92         -       287             1,900                 26         -     1,926 
3-5 years               7,012                  -        65     7,077             2,964                156         -     3,120 
5+ years                3,097                  -       379     3,476             3,264                  -       423     3,687 
             ----------------  -----------------  --------  --------  ----------------  -----------------  --------  -------- 
Total                  14,606              2,459     2,196    19,261            11,161              4,685     1,155    17,001 
             ----------------  -----------------  --------  --------  ----------------  -----------------  --------  -------- 
 
 
   Loan stock can be past due as a result of interest or capital not being 
paid in accordance with contractual terms. 
 
   The cost of loan stock investments valued below cost is GBP3,033,000 
(2019: GBP5,409,000). 
 
   In view of the factors identified above, the Board considers that the 
Company is subject to low liquidity risk. 
 
   Fair values of financial assets and financial liabilities 
 
   All the Company's financial assets and liabilities as at 31 December 
2020 are stated at fair value as determined by the Directors, with the 
exception of receivables (including debtors due after more than one 
year), payables and cash which are carried at amortised cost, in 
accordance with FRS 102. There are no financial liabilities other than 
payables. The Company's financial liabilities are all non-interest 
bearing. It is the Directors' opinion that the book value of the 
financial liabilities is not materially different to the fair value and 
all are payable within one year. 
 
   18. Commitments and contingencies 
 
   The Company had no financial commitments in respect of investments as at 
31 December 2020 (2019: nil). 
 
   There were no contingent liabilities or guarantees given by the Company 
as at 31 December 2020 (2019: nil). 
 
 
 
   19. Post balance sheet events 
 
   Since 31 December 2020 the Company has had the following post balance 
sheet events: 
 
 
   -- Investment of GBP1,014,000 in a new portfolio company, Threadneedle 
      Software Holding Limited (T/A Solidatus); 
 
   -- Disposal of OmPrompt Holdings Limited for proceeds of GBP678,000; 
 
   -- Disposal of SBD Automotive Limited for proceeds of GBP567,000; and 
 
   -- Investment of GBP418,000 in an existing portfolio company, Healios 
      Limited. 
 
 
   Since 31 December 2020, the Company issued the following new Ordinary 
shares of nominal value 1 penny each under the Albion VCTs' Prospectus 
Top Up Offers 2020/21: 
 
 
 
 
                     Number of 
                       shares    Aggregate nominal value of shares     Issue price      Net consideration received  Opening market price on allotment date 
 Date of allotment    allotted               (GBP'000)               (pence per share)           (GBP'000)                     (pence per share) 
------------------- 
26 February 2021      2,059,020                                 21               70.30                       1,426                                   66.00 
26 February 2021        520,699                                  5               70.70                         361                                   66.00 
26 February 2021     18,541,660                                185               71.70                      12,854                                   66.00 
                     21,121,379                                211                                          14,641 
                     ----------  ---------------------------------                      -------------------------- 
 
   20. Related party transactions 
 
   The Company has entered into an offer agreement relating to the Top Up 
Offers 2020/21 with the Company's Manager, Albion Capital Group LLP 
("Albion"), pursuant to which Albion will receive a fee of 2.5 per cent. 
of the gross proceeds of the Offer and out of which Albion will pay the 
costs of the Offer, as detailed in the Prospectus. 
 
   Other than transactions with the Manager as disclosed in note 5, the 
Directors' remuneration disclosed in the Directors' remuneration report 
on pages 43 to 45 of the full Annual Report and Financial Statements, 
and that disclosed above, there are no other related party transactions 
requiring disclosure. 
 
   21. Other Information 
 
   The information set out in this announcement does not constitute the 
Company's statutory accounts within the terms of Section 434 of the 
Companies Act 2006 for the years ended 31 December 2020 and 31 December 
2019, and is derived from the statutory accounts for those financial 
years, which have been, or in the case of the accounts for the year 
ended 31 December 2020, which will be, delivered to the Registrar of 
Companies. The Auditor reported on those accounts; the reports were 
unqualified and did not contain a statement under Section 498 (2) or (3) 
of the Companies Act 2006. 
 
   22. Publication 
 
   The full audited Annual Report and Financial Statements are being sent 
to shareholders and copies will be made available to the public at the 
registered office of the Company, Companies House, the National Storage 
Mechanism and also electronically at 
https://www.globenewswire.com/Tracker?data=PVnDoECJEFxyrV2mKasD0zjDbT_f4aKewzt2Ro_oSQSeICGdm5XgMVBgK0mfYB8eDDKotrUD9j2al5qAK8rd98vWK3tkX440iaOEjlTIWSL-_T5qD3g397eHf9Et-C19 
www.albion.capital/funds/AATG, where the Report can be accessed as a PDF 
document via a link in the 'Financial Reports and Circulars' section. 
 
 
 
   Attachment 
 
 
   -- Split of Portfolio by sector, stage of investment and number of employees 
      https://ml-eu.globenewswire.com/Resource/Download/0e02add3-2591-489f-a5cd-c56dc6f05bc5 
 
 
 
 
 
 
 

(END) Dow Jones Newswires

March 26, 2021 13:08 ET (17:08 GMT)

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