TIDMAATG
Albion Technology & General VCT PLC
LEI number: 213800TKJUY376H3KN16
As required by the UK Listing Authority's Disclosure Guidance
and Transparency Rule 4.2, Albion Technology & General VCT PLC
today makes public its information relating to the Half-yearly
Financial Report (which is unaudited) for the six months to 30 June
2021. This announcement was approved by the Board of Directors on
20 September 2021.
The full Half-yearly Financial Report (which is unaudited) for
the period to 30 June 2021, will shortly be sent to shareholders.
Copies of the full Half-yearly Financial Report will be shown via
the Albion Capital Group LLP website by clicking
www.albion.capital/funds/AATG/30Jun21.pdf.
Investment objective and policy
The Company's investment objective is to provide investors with
a regular and predictable source of dividend income, combined with
the prospect of long-term capital growth, through a balanced
portfolio of predominantly unquoted growth and technology
businesses in a qualifying Venture Capital Trust ("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.
Financial calendar
Record date for second dividend for the year 3 December 2021
Payment date for second dividend for the year 31 December 2021
Financial year end 31 December
Financial highlights
Unaudited
Unaudited six months ended Audited
six months ended 30 June 2021 30 June 2020 year ended
(pence per share) (pence per share) 31 December 2020 (pence per share)
Opening net
asset value 69.35 82.58 82.58
Capital
return/(loss) 11.15 (2.70) (0.06)
Revenue loss (0.11) (0.07) (0.22)
------------------------------ ------------------ -----------------------------------
Total
return/(loss) 11.04 (2.77) (0.28)
Ordinary
dividends
paid (1.73) (2.00) (3.95)
Special
dividend
paid - - (9.00)
Impact from
share capital
movements (0.49) 0.04 -
------------------------------ ------------------ -----------------------------------
Net asset
value 78.17 77.85 69.35
Ordinary shares
Total shareholder value to 30 June 2021 (pence per share)
---------------------------------------------- -------------------
Total dividends paid during the period ended:
31 December 2001 1.00
31 December 2002 2.00
31 December 2003 1.50
31 December 2004 7.50
31 December 2005 9.00
31 December 2006 8.00
31 December 2007 8.00
31 December 2008 16.00
31 December 2009 -
31 December 2010 8.00
31 December 2011 5.00
31 December 2012 5.00
31 December 2013 5.00
31 December 2014 5.00
31 December 2015 5.00
31 December 2016 5.00
31 December 2017 4.00
31 December 2018 4.00
31 December 2019 4.00
31 December 2020 12.95
30 June 2021 1.73
------------------
Total dividends paid to 30 June 2021 117.68
Net asset value as at 30 June 2021 78.17
------------------
Total shareholder value to 30 June 2021 195.85
------------------
In addition to the dividends paid above, the Board declared a
second dividend for the year ending 31 December 2021 of 1.95 pence
per Ordinary share to be paid on 31 December 2021 to shareholders
on the register on 3 December 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.
Interim management report
Introduction
I am delighted to report a strong positive total return for the
six months to 30 June 2021 of 11.04 pence per share, which
represents a 15.9% uplift on opening net asset value. We continue
to see resilience and, in many cases, growth from our portfolio,
with many of our portfolio companies demonstrating the value of the
services they provide to their customers as the economy emerges
from the Covid-19 pandemic ("the Pandemic").
Results and dividends
The net asset value per Ordinary share as at 30 June 2021 has
increased to 78.17 pence in the six months (31 December 2020: 69.35
pence; 30 June 2020: 77.85 pence (pre special dividend payment of
12.95 pence per share)), mainly due to the continuing progress of a
number of our portfolio companies as discussed below.
In line with our dividend policy, targeting 5% of NAV per annum,
the Company paid a dividend of 1.73 pence per share during the
period to 30 June 2021 (2020: 2.00 pence per share). The Company
will pay a second dividend for the financial year to 31 December
2021 of 1.95 pence per share on 31 December 2021 to shareholders on
the register on 3 December 2021, being 2.5% of the latest reported
NAV at 30 June 2021.
This will bring the total dividends paid for the year ending 31
December 2021 to 3.68 pence per share, which equates to a 5.3%
yield on the opening NAV of 69.35 pence per share at 31 December
2020.
Performance and portfolio update
The total gain on investments for the period ended 30 June 2021
was GBP15.0 million (31 December 2020: gain of GBP1.5 million; 30
June 2020: loss of GBP2.2 million). The key movements in the period
include GBP8.9 million valuation uplift to Quantexa, and GBP2.2
million uplift to Oviva following their successful, externally led,
funding rounds. Encouragingly, we have also seen many of our other
portfolio companies performing well, including GBP1.0 million
uplift to Black Swan Data, GBP0.9 million uplift to Phrasee and
GBP0.8 million uplift to The Evewell Group.
There have also been some write-downs in our portfolio, the
largest being memsstar (GBP0.8m) reflecting the effect of the
Pandemic on its trading, and Mirada (GBP0.7 million) as its ability
to sell its software into hospitals has also been hampered by the
Pandemic.
The period saw a number of disposals with proceeds totalling
GBP1.7 million, which has led to realised gains of GBP0.9 million.
The principal exit was the sale of OmPrompt Holdings in March which
resulted in a return of 2.3 times cost, and generated proceeds of
GBP0.7 million. SBD Automotive was also sold generating 2.1 times
cost. Further details on these disposals can be found in the table
below.
Further information on the portfolio of investments can be found
below.
During the period, a total of GBP4.6 million was deployed into
portfolio companies, of which GBP2.4 million was invested in five
new portfolio companies, all of which should result in further
investment as the companies prove themselves and grow. These
are:
-- GBP1.0 million into Threadneedle Software Holdings Limited (trading as
Solidatus), a provider of data lineage software to enterprise customers
in regulated sectors, which allows them to rapidly discover, visualise,
catalogue and understand how data flows through their systems;
-- GBP0.5 million into Gravitee Topco Limited (trading as Gravitee.io), an
API management platform;
-- GBP0.4 million into NuvoAir AB, a provider of digital therapeutics and
decentralised clinical trials for respiratory conditions;
-- GBP0.3 million into Brytlyt Limited, which uses patented software and AI,
combined with the superior computation power of graphics processing units
(GPUs), to derive insights thousands of times faster than legacy systems;
and
-- GBP0.2 million into Accelex Technology Limited (trading as Accelex), a
provider of data extraction and analytics technology for private capital
markets.
A further GBP2.2 million was invested in existing portfolio
companies, including GBP0.9 million into Black Swan Data to support
the restructure of its business to focus primarily on predictive
analytics for consumer brands; GBP0.4 million into uMotif to take
advantage of a growing market for its software which gathers data
from clinical trials; and GBP0.4 million into Panaseer to continue
to develop its cyber security platform.
Current portfolio sector allocation
Set out at the bottom of this announcement is the sector
diversification of the portfolio of investments as at 30 June
2021.
Board Composition
During the period, Neil Cross retired after being Chairman of
your Company since its launch in 2000. I would like to thank Neil
for his outstanding stewardship, insightful contributions and
guidance, not least in his assistance to me during my time on the
Board.
After serving as a non-executive Director of the Company for
nine years, Modwenna Rees-Mogg will be retiring from the Board on
20 September 2021. We have valued her hugely thoughtful
contributions and wish her well in the future.
The Nomination Committee is engaged in succession planning, but
the Board has adequate skills and experience, amongst the four
ongoing directors, to oversee the activities of the Company. I was
pleased to accept the role of chair during the next stage of the
Company's development, including refreshing the Board. In
relinquishing the role of Audit Chair, I am confident that Margaret
Payn will fulfil the role well. The roles of Senior Independent
Director and Remuneration Committee chair will be filled in due
course as part of the succession planning.
Share buy-backs
It remains the Board's policy to buy-back shares in the market,
subject to the overall constraint that such purchases are in the
Company's interest. This includes the maintenance of sufficient
cash resources for investment in new and existing portfolio
companies and the continued payment of dividends to
shareholders.
It is the Board's intention that such buy-backs should be at
around a 5% discount to net asset value, in so far as market
conditions and liquidity permit. The Company purchased 1,514,472
Ordinary shares for treasury during the period at a total cost of
GBP1.0 million. The Company continues to provide active buy-back to
help provide good secondary market liquidity for those who want to
dispose of all or part of their shareholdings.
Risks, uncertainties and prospects
The continuing uncertainty and wide-reaching implications
arising from the Pandemic remains the key risk facing the Company,
including the impact on the UK and Global economies and the
prospect of inflation as a result of government intervention during
the crisis. There are also continuing potential implications of the
UK's departure from the European Union which may adversely affect
our underlying portfolio companies. The Manager is continually
assessing the exposure to such risks for each portfolio company,
and where possible appropriate actions are being implemented.
Overall investment risk, however, is mitigated through a variety of
processes, including our policy of aiming to achieve balance in the
portfolio through the inclusion of sectors that are less exposed to
the business and consumer cycles and in trying to identify, and
nurture, good individual investment opportunities.
Other principal risks and uncertainties are detailed in note 13
below.
Albion VCTs Top Up Offers
As announced in the Annual Report and Financial Statements for
the year ended 31 December 2020, the 2020/21 Offers were fully
subscribed and closed having raised GBP15.5 million for the
Company. The Board was pleased to see the high level of demand for
the Company's shares from existing and new shareholders. The Board
will consider participating in any Albion VCTs Top Up Offers for
2021/22.
The proceeds of the Offer are being used to provide support to
our existing portfolio companies and to enable us to take advantage
of new and exciting investment opportunities as they arise, a
number of which are noted above. Details on the share allotments
during the period can be found in note 8.
Transactions with the Manager
Details of the transactions that took place with the Manager in
the period can be found in note 5. Details of related party
transactions can be found in note 11.
The Company has had a Management Performance Incentive scheme in
place since the Company launched in 2000, with the last changes to
the scheme being in 2013. The circumstances of the Company and
markets in general have changed dramatically since 2000, not least
in the ownership of the Company through Top Up Offers, a merger in
2013 and share buy-backs. The portfolio of the Company, and the
demands on Managing such a portfolio, are quite different from two
decades ago, as is the VCT market more generally, with technology
and sector specialisation becoming more important, and against more
stringent VCT eligibility requirements.
Consequently, the Board and Manager recognise that the current
Management Performance Incentive scheme is not in alignment with
the Company's current and future circumstances. Accordingly, the
Board has agreed with the Manager to review the current
arrangements and to make a proposal to shareholders, which will
require shareholder approval, in the Annual Report and Financial
Statements for the year ending 31 December 2021. The proposal will
include full detail and explanation of changed circumstances and
the impact of what is being proposed.
It continues to be the Board's belief that an appropriate
incentive fee structure is an important tool for ensuring
efficiency of returns for investors and for attracting and
retaining good investment management skills, and aligning these two
related ingredients in the best interests of shareholders.
Shareholder seminar
The Board is pleased to report that the current intention of the
Manager, Albion Capital, is to host a physical rather than virtual
shareholder seminar this year on 12 November 2021, in central
London, with the venue to be confirmed. This will be dependent on
government guidelines and any changes thereto, and we will keep
shareholders informed as the date approaches. The Board and Manager
are keen to interact with shareholders and look forward to updating
you on portfolio developments, as well as answering any
questions.
More details will shortly be available on the Albion Capital
website: www.albion.capital.
Outlook
The Board is encouraged by the very positive result for the
period, which demonstrates the resilience of our portfolio which is
both diversified in terms of companies at different stages of
maturity and across a variety of different sectors, as well as
capable of delivering good returns. We remain confident that our
portfolio companies are well positioned to grow, despite the
uncertainty around the longer-term impact of the Pandemic and other
market uncertainties, and that our Manager is well positioned to
find new opportunities for us, as well as manage our existing
investments. The Board believes the Company is well placed to
continue to deliver long term value to our shareholders.
Robin Archibald
Chairman
20 September 2021
Responsibility statement
The Directors, Robin Archibald, Margaret Payn, Mary Anne
Cordeiro, Modwenna Rees-Mogg and Patrick Reeve, are responsible for
preparing the Half-yearly Financial Report. In preparing these
condensed Financial Statements for the period to 30 June 2021 we,
the Directors of the Company, confirm that to the best of our
knowledge:
(a) the condensed set of Financial Statements, which has been
prepared in accordance with Financial Reporting Standard 104
"Interim Financial Reporting", gives a true and fair view of the
assets, liabilities, financial position and profit and loss of the
Company as required by DTR 4.2.4R;
(b) the Interim management report includes a fair review of the
information required by DTR 4.2.7R (indication of important events
during the first six months and description of principal risks and
uncertainties for the remaining six months of the year); and
(c) the Interim management report includes a fair review of the
information required by DTR 4.2.8R (disclosure of related parties'
transactions and changes therein).
This Half-yearly Financial Report has not been audited or
reviewed by the Auditor.
For and on behalf of the Board
Robin Archibald
Chairman
20 September 2021
Portfolio of investments
As at 30 June 2021
% voting Cost Cumulative movement in value Value Change in value for the period*
Portfolio company rights GBP'000 GBP'000 GBP'000 GBP'000
---------------------- -------- -------- -------------------------------
Quantexa Limited 2.6 2,740 14,145 16,885 8,907
Radnor House School
(TopCo) Limited 14.8 2,710 2,001 4,711 152
Proveca Limited 7.2 1,184 3,465 4,649 650
Chonais River Hydro
Limited 15.7 2,169 1,769 3,938 (18)
Oviva AG 3.5 1,192 2,568 3,760 2,231
Oxsensis Limited 15.9 2,968 729 3,697 -
Black Swan Data
Limited 9.2 3,268 - 3,268 1,005
Egress Software
Technologies Limited 2.2 765 1,895 2,660 170
The Evewell Group
Limited 6.1 1,195 1,121 2,316 820
Cantab Research
Limited (T/A
Speechmatics) 3.7 1,486 734 2,220 734
Gharagain River Hydro
Limited 18.5 1,526 670 2,196 (7)
Phrasee Limited 2.9 680 1,091 1,771 854
Panaseer Limited 3.1 1,122 534 1,656 (30)
Concirrus Limited 3.2 1,632 - 1,632 -
The Street by Street
Solar Programme
Limited 8.1 895 576 1,471 (113)
Elliptic Enterprises
Limited 1.8 1,402 26 1,428 26
MHS 1 Limited 22.5 1,565 (255) 1,310 (86)
Regenerco Renewable
Energy Limited 7.9 822 453 1,275 (89)
uMotif Limited 3.8 1,121 49 1,170 -
Convertr Media Limited 6.9 1,105 40 1,145 5
Healios Limited 2.5 633 417 1,050 (54)
The Voucher Market
Limited (T/A WeGift) 2.5 1,020 - 1,020 -
Threadneedle Software
Holdings Limited (T/A
Solidatus) 1.7 1,014 - 1,014 -
Credit Kudos Limited 4.5 979 - 979 -
MPP Global Solutions
Limited 2.9 950 - 950 -
Beddlestead Limited 9.8 1,200 (277) 923 111
Aridhia Informatics
Limited 4.9 950 (86) 864 169
InCrowd Sports Limited 5.0 636 228 864 240
Alto Prodotto Wind
Limited 6.9 586 241 827 (42)
The Q Garden Company
Limited 33.4 934 (150) 784 (52)
DySIS Medical Limited 3.5 2,589 (1,867) 722 15
Locum's Nest Limited 9.8 675 41 716 82
Cisiv Limited 7.7 695 (28) 667 220
memsstar Limited 30.1 515 117 632 (760)
Limitless Technology
Limited 2.1 560 55 615 -
Arecor Therapeutics
PLC (Previously
Arecor Limited) 0.9 304 266 570 266
MyMeds&Me Limited 4.6 439 130 569 151
Gravitee Topco Limited
(T/A Gravitee.io) 2.3 490 - 490 -
Albion Investment
Properties Limited 31.8 434 34 468 12
Imandra Inc. 1.6 151 313 464 313
NuvoAir AB 1.4 443 - 443 -
Innovation Broking
Group Limited 6.0 60 371 431 247
Premier Leisure
(Suffolk) Limited - 454 (28) 426 (28)
TransFICC Limited 2.6 397 - 397 -
Koru Kids Limited 1.6 345 36 381 -
Erin Solar Limited 15.7 440 (85) 355 (24)
AVESI Limited 8.0 259 84 343 (33)
Brytlyt Limited 1.9 322 - 322 -
Seldon Technologies
Limited 1.4 283 - 283 -
Zift Channel Solutions
Inc. 1.6 881 (633) 248 85
Harvest AD Limited - 210 (2) 208 (6)
Xperiome Limited
(Previously
Raremark) 2.4 322 (121) 201 (176)
Accelex Technology
Limited (T/A
Accelex) 2.0 181 - 181 -
Avora Limited 2.2 400 (249) 151 (249)
Greenenerco Limited 3.1 90 57 147 (6)
uMedeor Limited (T/A
uMed) 0.9 100 - 100 -
Symetrica Limited 0.3 79 (16) 63 -
Sandcroft Avenue
Limited (T/A Hussle) 2.1 427 (403) 24 (34)
Palm Tree Technology
Limited 0.5 320 (304) 16 (16)
Forward Clinical
Limited (T/A Pando) 1.6 196 (190) 6 (48)
Abcodia Limited 3.2 568 (564) 4 (209)
Mirada Medical Limited 12.9 1,321 (1,321) - (683)
Elements Software
Limited 3.3 19 (19) - -
----------------------
Total fixed asset
investments 55,418 27,658 83,076 14,702
---------------------- -------- -------- ---------------------------- -------- -------------------------------
T/A -- trading as
* As adjusted for additions and disposals during the period.
Investment
realisations
in the period
to 30 June Cost Opening carrying value Disposal proceeds Total realised gain Gain/(loss) on opening value
2021 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------- -------- ---------------------- ----------------- ------------------- ----------------------------
Disposals:
OmPrompt
Holdings
Limited 306 678 701 395 23
SBD
Automotive
Limited 273 569 567 294 (2)
Mi-Pay Group
PLC 135 135 150 15 15
Loan stock
repayments
and other:
Alto Prodotto
Wind
Limited 17 25 25 8 -
Greenenerco
Limited 3 5 5 2 -
Escrow
adjustments
and other** - - 228 228 228
Total 734 1,412 1,676 942 264
------------- -------- ---------------------- ----------------- ------------------- ----------------------------
** These comprise fair value movements on deferred consideration
on previously disposed investments, release of the G.Network
Communications discount which is treated as a financing
transaction, and expenses which are incidental to the purchase or
disposal of an investment
Unrealised gains on fixed asset investments 14,702
Realised gains on fixed asset investments 264
Total gains on investments as per Income statement 14,966
---------------------------------------------------- ------
Condensed income statement
Unaudited Unaudited Audited
six months ended six months ended year ended
30 June 2021 30 June 2020 31 December 2020
---------------------------------------------------------- ---- ---------------------------- ---------------------------- ----------------------------
Revenue Capital Total Revenue Capital Total Revenue Capital Total
Note GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
---------------------------------------------------------- ---- -------- -------- -------- -------- -------- -------- -------- -------- --------
Gains/(losses) on investments 3 - 14,966 14,966 - (2,224) (2,224) - 1,453 1,453
Investment income 4 330 - 330 348 - 348 604 - 604
Investment management fee 5 (270) (807) (1,077) (260) (779) (1,039) (505) (1,516) (2,021)
Other expenses (193) - (193) (163) - (163) (347) - (347)
---- -------- -------- -------- -------- -------- -------- -------- -------- --------
(Loss)/profit on ordinary activities before tax (133) 14,159 14,026 (75) (3,003) (3,078) (248) (63) (311)
Tax (charge)/credit on ordinary activities - - - - - - - - -
---- -------- -------- -------- -------- -------- -------- -------- -------- --------
(Loss)/profit and total comprehensive income attributable
to shareholders (133) 14,159 14,026 (75) (3,003) (3,078) (248) (63) (311)
---- -------- -------- -------- -------- -------- -------- -------- -------- --------
Basic and diluted (loss)/return per share (pence)* 7 (0.11) 11.15 11.04 (0.07) (2.70) (2.77) (0.22) (0.06) (0.28)
---------------------------------------------------------- ---- -------- -------- -------- -------- -------- -------- -------- -------- --------
* adjusted for treasury shares
Comparative figures have been extracted from the unaudited
Half-yearly Financial Report for the six months ended 30 June 2020
and the audited statutory accounts for the year ended 31 December
2020.
The accompanying notes form an integral part of this Half-yearly
Financial Report.
The total column of this Condensed income statement represents
the profit and loss account of the Company. The supplementary
revenue and capital columns have been prepared in accordance with
The Association of Investment Companies' Statement of Recommended
Practice.
Condensed balance sheet
Unaudited Unaudited Audited
30 June 2021 30 June 2020 31 December 2020
Note GBP'000 GBP'000 GBP'000
----------------------------------------------- ---- ------------- ------------- -----------------
Fixed asset investments 83,076 58,658 65,152
Current assets
Current asset investments - 1,662 -
Trade and other receivables 2,133 132 2,038
Cash and cash equivalents 19,957 26,200 11,451
------------- ------------- -----------------
22,090 27,994 13,489
Total assets 105,166 86,652 78,641
Payables: amounts falling due within one year
Trade and other payables (947) (659) (613)
------------- ------------- -----------------
Total assets less current liabilities 104,219 85,993 78,028
------------- ------------- -----------------
Equity attributable to equity holders
Called up share capital 8 1,530 1,287 1,307
Share premium 52,293 35,246 37,036
Capital redemption reserve 48 42 48
Unrealised capital reserve 27,619 11,234 13,595
Realised capital reserve 23,752 23,038 23,617
Other distributable reserve (1,023) 15,146 2,425
------------- ------------- -----------------
Total equity shareholders' funds 104,219 85,993 78,028
------------- ------------- -----------------
Basic and diluted net asset value per share
(pence)* 78.17 77.85 69.35
----------------------------------------------- ---- ------------- ------------- -----------------
* excluding treasury shares
Comparative figures have been extracted from the unaudited
Half-yearly Financial Report for the six months ended 30 June 2020
and the audited statutory accounts for the year ended 31 December
2020.
The accompanying notes form an integral part of this Half-yearly
Financial Report.
These Financial Statements were approved by the Board of
Directors and authorised for issue on 20 September 2021 and were
signed on its behalf by
Robin Archibald
Chairman
Company number: 04114310
Condensed statement of changes in equity
Capital Unrealised Realised Other
Called up share Share redemption capital capital distributable
capital premium reserve reserve reserve* reserve* Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
----------------------------------------------------- --------------- ------- ---------- ---------- -------- ------------- --------
As at 1 January 2021 1,307 37,036 48 13,595 23,617 2,425 78,028
Profit/(loss) and total comprehensive income for the
period - - - 14,702 (543) (133) 14,026
Transfer of previously unrealised gains on disposal
of investments - - - (678) 678 - -
Purchase of own shares for treasury - - - - - (1,009) (1,009)
Issue of equity 223 15,643 - - - - 15,866
Cost of issue of equity - (386) - - - - (386)
Dividends paid - - - - - (2,306) (2,306)
----------------------------------------------------- --------------- ------- ---------- ---------- -------- ------------- --------
As at 30 June 2021 1,530 52,293 48 27,619 23,752 (1,023) 104,219
----------------------------------------------------- --------------- ------- ---------- ---------- -------- ------------- --------
As at 1 January 2020 1,296 34,949 28 13,708 23,567 18,474 92,022
Loss and total comprehensive income for the period - - - (2,561) (442) (75) (3,078)
Transfer of previously unrealised losses on disposal
of investments - - - 87 (87) - -
Purchase of own shares for cancellation (14) - 14 - - (1,052) (1,052)
Issue of equity 4 314 - - - - 318
Cost of issue of equity - (16) - - - - (16)
Dividends paid - - - - - (2,201) (2,201)
----------------------------------------------------- --------------- ------- ---------- ---------- -------- ------------- --------
As at 30 June 2020 1,287 35,246 42 11,234 23,038 15,146 85,993
----------------------------------------------------- --------------- ------- ---------- ---------- -------- ------------- --------
As at 1 January 2020 1,296 34,949 28 13,708 23,567 18,474 92,022
Profit/(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
----------------------------------------------------- --------------- ------- ---------- ---------- -------- ------------- --------
*These reserves amount to GBP22,729,000 (30 June 2020:
GBP38,184,000; 31 December 2020: GBP26,042,000) which is considered
distributable.
Condensed statement of cash flows
Audited
Unaudited Unaudited year ended
six months ended 30 June 2021 six months ended 30 June 2020 31 December 2020
GBP'000 GBP'000 GBP'000
-------------------- ------------------------------ ------------------------------ -----------------
Cash flow from
operating
activities
Loan stock income
received 315 269 511
Dividend income
received 15 82 108
Deposit interest
received 1 51 58
Investment
management fee
paid (871) (996) (2,062)
Other cash payments (231) (180) (344)
Corporation tax paid - - -
------------------------------ -----------------
Net cash flow from
operating
activities (771) (774) (1,729)
Cash flow from
investing
activities
Purchase of current
asset investments - (4) (4)
Purchase of fixed
asset investments (4,634) (3,497) (9,158)
Disposal of current
asset investments - - 1,616
Disposal of fixed
asset investments 1,587 952 1,936
Net cash flow from
investing
activities (3,047) (2,549) (5,610)
Cash flow from
financing
activities
Issue of share
capital 15,120 - -
Cost of issue of
equity (19) - (47)
Dividends paid (1,932) (1,898) (12,158)
Purchase of own
shares (including
costs) (845) (1,047) (1,473)
Net cash flow from
financing
activities 12,324 (2,945) (13,678)
Increase/(decrease)
in cash and cash
equivalents 8,506 (6,268) (21,017)
Cash and cash
equivalents at
start of period 11,451 32,468 32,468
------------------------------ ------------------------------ -----------------
Cash and cash
equivalents at end
of period 19,957 26,200 11,451
------------------------------ ------------------------------ -----------------
Notes to the condensed Financial Statements
1. Basis of preparation
The condensed 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.
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 Half-yearly
Financial Report.
2. Accounting policies
Fixed and current asset investments
The Company's business is investing in financial assets with a
view to profiting from their total return in the form of income and
capital growth. This portfolio of financial assets is managed, and
its performance evaluated on a fair value basis, in accordance with
a documented investment policy, and information about the portfolio
is provided internally on that basis to the Board.
In accordance with the requirements of FRS 102, those
undertakings in which the Company holds more than 20 per cent. of
the equity as part of an investment portfolio are not accounted for
using the equity method. In these circumstances the investment is
measured at FVTPL.
Upon initial recognition (using trade date accounting)
investments, including loan stock, are classified by the Company as
FVTPL and are included at their initial fair value, which is cost
(excluding expenses incidental to the acquisition which are written
off to the Income statement).
Subsequently, the investments are valued at 'fair value', which
is measured as follows:
-- Investments listed on recognised exchanges are valued at their bid prices
at the end of the accounting period or otherwise at fair value based on
published price quotations.
-- Unquoted investments, where there is not an active market, are valued
using an appropriate valuation technique in accordance with the IPEV
Guidelines. Indicators of fair value are derived using established
methodologies including earnings multiples, revenue multiples, the level
of third party offers received, cost or price of recent investment rounds,
net assets and industry valuation benchmarks. Where price of recent
investment is used as a starting point for estimating fair value at
subsequent measurement dates, this has been benchmarked using an
appropriate valuation technique permitted by the IPEV guidelines.
-- In situations where cost or price of recent investment is used,
consideration is given to the circumstances of the portfolio company
since that date in determining fair value. This includes consideration of
whether there is any evidence of deterioration or strong definable
evidence of an increase in value. In the absence of these indicators, the
investment in question is valued at the amount reported at the previous
reporting date. Examples of events or changes that could indicate a
diminution include:
-- the performance and/or prospects of the underlying business are
significantly below the expectations on which the investment was
based;
-- a significant adverse change either in the portfolio company's
business or in the technological, market, economic, legal or
regulatory environment in which the business operates; or
-- market conditions have deteriorated, which may be indicated by a
fall in the share prices of quoted businesses operating in the
same or related sectors.
Investments are recognised as financial assets on legal
completion of the investment contract and are de-recognised on
legal completion of the sale of an investment.
Dividend income is not recognised as part of the fair value
movement of an investment but is recognised separately as
investment income through the other distributable reserve when a
share becomes ex-dividend.
Current assets and payables
Receivables (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 income
Fixed returns on non-equity shares and debt securities are
recognised when the Company's rights to receive payment and
expected settlement are 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.
Share capital and reserves
Called-up share capital
This 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 period end against cost are included in this reserve.
Realised capital reserve
The following are disclosed in this reserve:
-- gains and losses compared to cost on the realisation of investments, or
permanent diminutions in value;
-- expenses, together with the related taxation effect, charged in
accordance with the above policies; and
-- dividends paid to equity holders where paid out in the form of 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 distributed 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
Audited
Unaudited Unaudited year ended
six months ended 30 June 2021 six months ended 30 June 2020 31 December 2020
GBP'000 GBP'000 GBP'000
Unrealised
gains/(losses)
on fixed asset
investments 14,702 (2,026) 1,233
Unrealised
losses on
current asset
investments - (535) -
Realised gains
on fixed asset
investments 264 337 801
Realised losses
on current
asset
investments - - (581)
14,966 (2,224) 1,453
------------------------------ ------------------------------ -----------------
4. Investment income
Unaudited Unaudited Audited
six months ended six months ended year ended
30 June 2021 30 June 2020 31 December 2020
GBP'000 GBP'000 GBP'000
---------------------
Loan stock interest 314 269 510
Dividend income 15 30 39
Bank deposit interest 1 49 55
----------------- ----------------- -----------------
330 348 604
----------------- ----------------- -----------------
5. Investment management fee
Unaudited Unaudited Audited
six months ended six months ended year ended
30 June 2021 30 June 2020 31 December 2020
GBP'000 GBP'000 GBP'000
Investment management
fee charged to
revenue 270 260 505
Investment management
fee charged to
capital 807 779 1,516
----------------- ----------------- -----------------
1,077 1,039 2,021
----------------- ----------------- -----------------
Further details of the Management agreement under which the
investment management fee is paid are given in the Strategic report
on page 13 of the Annual Report and Financial Statements for the
year ended 31 December 2020.
During the period, services for a total value of GBP1,077,000
(30 June 2020: GBP1,039,000; 31 December 2020: GBP2,021,000) were
purchased by the Company from Albion Capital Group LLP in respect
of management fees. At the financial period end, the amount due to
Albion Capital Group LLP in respect of these services disclosed as
accruals was GBP683,000 (30 June 2020: GBP561,000; 31 December
2020: GBP477,000). The total annual running costs of the Company
are capped at an amount equal to 2.75 per cent. of the Company's
net assets, with any excess being met by Albion Capital by way of a
reduction in management fees. During the period, the management fee
was reduced by GBP162,000 as a result of this cap (30 June 2020:
GBP37,000; 31 December 2020: GBP78,000).
During the period, the Company was not charged by Albion Capital
Group LLP in respect of Patrick Reeve's services as a Director (30
June 2020 and 31 December 2020: GBPnil).
Albion Capital Group LLP, its partners and staff (including
Patrick Reeve), held 1,219,349 Ordinary shares in the Company as at
30 June 2021.
Albion Capital Group LLP is, from time to time, eligible to
receive arrangement fees and monitoring fees from portfolio
companies. During the period to 30 June 2021, fees of GBP145,000
attributable to the investments of the Company were received by
Albion Capital Group LLP pursuant to these arrangements (30 June
2020: GBP99,000; 31 December 2020: GBP237,000).
The Company entered into an offer agreement relating to the
Offers with the Company's investment manager Albion Capital Group
LLP, pursuant to which Albion Capital would receive a fee of 2.5%
of the gross proceeds of the Offers and out of which Albion Capital
would pay the costs of the Offers, as detailed in the
Prospectus.
6. Dividends Unaudited Unaudited Audited
six months ended six months ended year ended
30 June 2021 30 June 2020 31 December 2020
GBP'000 GBP'000 GBP'000
-------------------------------------------------------
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
Dividend of 1.73p per share paid on 30 June 2021 (30
June 2020: 2.00p per share) 2,306 2,201 2,201
2,306 2,201 14,328
---------------- ---------------- -----------------
The Directors have declared a dividend of 1.95 pence per
Ordinary share (total approximately GBP2,600,000) payable on 31
December 2021, to shareholders on the register on 3 December
2021.
7. Basic and diluted (loss)/return per share
Unaudited Unaudited Audited
six months ended six months ended year ended
Ordinary shares 30 June 2021 30 June 2020 31 December 2020
Revenue Capital Revenue Capital Revenue Capital
--------------------------------------------------------
(Loss)/profit attributable to equity shares (GBP'000) (133) 14,159 (75) (3,003) (248) (63)
Weighted average shares in issue (adjusted for treasury
shares) 127,004,453 110,973,597 110,981,864
(Loss)/return attributable per equity share (pence) (0.11) 11.15 (0.07) (2.70) (0.22) (0.06)
The weighted average number of shares is calculated after
adjusting for treasury shares of 19,710,942 (30 June 2020:
18,196,470; 31 December 2020: 18,196,470).
There are no convertible instruments, derivatives or contingent
share agreements in issue, and therefore no dilution affecting the
(loss)/return per share. The basic (loss)/return per share is
therefore the same as the diluted (loss)/return per share.
8. Share capital
Allotted, called up and fully paid shares of 1 penny Unaudited Unaudited Audited
each 30 June 2021 30 June 2020 31 December 2020
-----------------------------------------------------
Number of shares 153,035,258 128,657,872 130,710,891
Nominal value of allotted shares (GBP'000) 1,530 1,287 1,307
Voting rights (number of shares net of treasury
shares) 133,324,316 110,461,402 112,514,421
During the period to 30 June 2021 the Company purchased
1,514,472 Ordinary shares (nominal value GBP15,145) for treasury at
a cost of GBP1,009,000. The total number of Ordinary shares held in
treasury as at 30 June 2021 was 19,710,942 (30 June 2020:
18,196,470; 31 December 2020: 18,196,470) representing 12.9 per
cent. of the Ordinary shares in issue as at 30 June 2021.
Under the terms of the Dividend Reinvestment Scheme, the
following new Ordinary shares of nominal value 1 penny each were
allotted during the period to 30 June 2021:
Number
of
Date of shares Aggregate nominal value of shares Issue price Net invested Opening market price on allotment date (pence per
allotment allotted (GBP'000) (pence per share) (GBP'000) share)
----------
30 June
2021 512,667 5 73.62 360 70.00
Under the terms of the Albion VCTs Prospectus Top Up Offers
2020/21, the following new Ordinary shares, of nominal value 1
penny each, were allotted during the period to 30 June 2021:
Net
Number of consideration
Date of shares Aggregate nominal value of shares Issue price received Opening market price on allotment date (pence per
allotment allotted (GBP'000) (pence per share) (GBP'000) 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 71.10 12,854 66.00
9 April
2021 175,959 2 70.50 122 66.00
9 April
2021 16,384 - 70.80 11 66.00
9 April
2021 497,978 5 71.20 346 66.00
21,811,700 15,120
---------- -------------
9. Commitments and contingencies
As at 30 June 2021, the Company had no financial commitments in
respect of investments (30 June 2020 and 31 December 2020:
GBPnil).
There are no contingencies or guarantees of the Company as at 30
June 2021 (30 June 2020 and 31 December 2020: GBPnil).
10. Post balance sheet events
Since 30 June 2021, the Company has completed the following
material transactions:
-- Investment of GBP1,501,000 in Oviva AG; and
-- Investment of GBP352,000 in The Evewell Group Limited.
11. Related party transactions
Other than transactions with the Manager as disclosed in note 5,
there are no other related party transactions requiring
disclosure.
12. Going concern
The Board has conducted a detailed assessment of the Company's
ability to meet its liabilities as they fall due. Cash flow
forecasts are updated and discussed quarterly at Board meetings and
have been stress tested to allow for the forecasted impact of the
Covid-19 pandemic. The Board has revisited and updated its
assessment of liquidity risk and concluded that it remains
unchanged since the last Annual Report and Financial Statements.
Further details can be found on page 68 of those accounts.
The portfolio of investments is diversified in terms of sector
and the major cash outflows of the Company (namely investments,
dividends and share buy-backs) are within the Company's control.
Accordingly, after making diligent enquiries, the Directors have a
reasonable expectation that the Company has adequate cash and
liquid resources to continue in operational existence for the
foreseeable future. For this reason, the Directors have adopted the
going concern basis in preparing this Half-yearly Financial Report
and this is in accordance with the Guidance on Risk Management,
Internal Control and Related Financial and Business Reporting
issued by the Financial Reporting Council in September 2014, and
the subsequent updated Going concern, risk and viability guidance
issued by the FRC due to Covid-19 in 2020.
13. Risks and uncertainties
In addition to the risks and uncertainties outlined in the
Interim management report, the Board confirms that the following
major risks and uncertainties facing the Company have not
materially changed from those identified in the Annual Report and
Financial Statements for the year ended 31 December 2020. The
impact of the Coronavirus (Covid-19) pandemic has created
heightened uncertainty but has not changed the nature of these
risks. The Board considers that the processes for mitigating these
risks remain appropriate.
1. Investment, performance and valuation risk
The risk of investment in poor quality businesses, which could
reduce the returns to shareholders and could negatively impact the
Company's current and future valuations.
By nature, smaller unquoted businesses, such as those that
qualify for VCT purposes, are more volatile than larger, long
established businesses.
The Company's investment valuation methodology is reliant on the
accuracy and completeness of information that is issued by
portfolio companies. In particular, the Directors may not be aware
of, or take into account, certain events or circumstances which
occur after the information issued by such companies is
reported.
To reduce this risk, the Board places reliance upon the skills
and expertise of the Manager and its track record over many years
of making successful investments in this segment of the market. In
addition, the Manager operates a formal and structured investment
appraisal and review process, which includes an Investment
Committee, comprising investment professionals from the Manager for
all investments, and at least one external investment professional
for investments greater than GBP1 million in aggregate across all
the Albion managed VCTs. The Manager also invites and takes account
of comments from non-executive Directors of the Company on matters
discussed at the Investment Committee meetings. Investments are
actively and regularly monitored by the Manager (investment
managers normally sit on portfolio company boards), including the
level of diversification in the portfolio, and the Board receives
detailed reports on each investment as part of the Manager's report
at quarterly board meetings. The Board and Manager regularly 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.
2. VCT approval risk
The Company must comply with section 274 of the Income Tax Act
2007 which enables its investors to take advantage of tax relief on
their investment and on future returns. Breach of any of the rules
enabling the Company to hold VCT status could result in the loss of
that status.
To reduce this risk, the Board has appointed the Manager, which
has a team with significant experience in VCT management which is
used to operating within the requirements of the VCT legislation.
In addition, to provide further formal reassurance, the Board has
appointed Philip Hare & Associates LLP as its taxation adviser,
who report quarterly to the Board to independently confirm
compliance with the 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.
3. Regulatory and compliance risk
The Company is listed on The London Stock Exchange and is
required to comply with the rules of the UK Listing Authority, as
well as with the Companies Act, Accounting Standards and other
legislation. Failure to comply with these regulations could result
in a delisting of the Company's shares, or other penalties under
the Companies Act or from financial reporting oversight bodies.
Board members and the Manager have experience of operating at
senior levels within, or advising, quoted companies. In addition,
the Board and the Manager receive regular updates on new
regulation, including legislation on the management of the Company,
from its auditor, lawyers and other professional bodies. The
Company is subject to compliance checks through the Manager's
compliance officer, and any issues arising from compliance or
regulation are reported to its own board on a monthly basis. These
controls are also reviewed as part of the quarterly Board meetings,
and also as part of the review work undertaken by the Manager's
compliance officer. The report on controls is also evaluated by the
internal auditors.
4. Market value of Ordinary shares
The market value of Ordinary shares can fluctuate. The market
value of an Ordinary share, as well as being affected by its net
asset value ("NAV") and prospective NAV, also takes into account
its dividend yield and prevailing interest rates. As such, the
market value of an Ordinary share may vary considerably from its
underlying NAV. The market prices of shares in quoted investment
companies can, therefore, be at a discount or premium to the NAV at
different times, depending on supply and demand, market conditions,
general investor sentiment and other factors, including the ability
to exercise share buybacks. Accordingly, the market price of the
Ordinary shares may not fully reflect their underlying NAV.
The Company operates a share buy-back policy, which aims to
limit the discount at which the Ordinary shares trade to around 5
per cent. to NAV, by providing a purchaser through the Company in
absence of market purchasers. From time to time buy-backs cannot be
applied, for example when the Company is subject to a close period,
or if it were to exhaust and could not renew any buyback
authorities.
New Ordinary shares are issued at sufficient premium to NAV to
cover the costs of issue and to avoid asset value dilution to
existing investors.
5. Operational and internal control risk
The Company relies on a number of third parties, in particular
the Manager, for the provision of investment management and
administrative functions. Failures in key systems and controls
within the Manager's business could place assets of the Company at
risk or result in reduced or inaccurate information being passed to
the Board or to shareholders.
The Company and its operations are subject to a series of
rigorous internal controls and review procedures exercised
throughout the year and receives reports from the Manager on its
internal controls and risk management, including on matters
relating to cyber security.
The Audit Committee reviews the Internal Audit Reports prepared
by the Manager's internal auditors, PKF Littlejohn LLP. 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.
6. Economic, political and social risk
Changes in economic conditions, including, for example, interest
rates, rates of inflation, industry conditions, competition,
political and diplomatic events, such as the impact of Brexit, and
other factors could substantially and adversely affect the
Company's prospects in a number of ways. This also includes risks
of social upheaval, including from infection and population
re-distribution.
The current significant exogenous risk to the Company, the wider
population and economy, is the Coronavirus (Covid-19) pandemic.
The Company invests in a diversified portfolio of companies
across a number of industry sectors and in addition often invests
in a mixture of instruments in portfolio companies and has a policy
of minimising any external bank borrowings within portfolio
companies.
At any given time, the Company has sufficient cash resources to
meet its operating requirements, including share buy-backs and
follow-on investments.
In common with most commercial operations, exogenous risks over
which the Company has no control are always a risk 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.
14. Other information
The information set out in this Half-yearly Financial Report
does not constitute the Company's statutory accounts within the
terms of section 434 of the Companies Act 2006 for the periods
ended 30 June 2021 and 30 June 2020 and is unaudited. The
information for the year ended 31 December 2020, does not
constitute statutory accounts within the terms of section 434 of
the Companies Act 2006 and is derived from the statutory accounts
for that financial year, which have been delivered to the Registrar
of Companies. The Auditor reported on those accounts; their report
was unqualified and did not contain a statement under s498 (2) or
(3) of the Companies Act 2006.
15. Publication
This Half-yearly Financial Report is being sent to shareholders
and copies will be made available to the public at the registered
office of the Company, Companies House, the National Storage
Mechanism and also electronically at www.albion.capital/funds/AATG,
where the Report can be accessed from the 'Financial Reports and
Circulars' section.
Attachment
-- Current portfolio sector allocation
https://ml-eu.globenewswire.com/Resource/Download/ed9618f7-4031-45e4-ada7-36ae82a4e218
(END) Dow Jones Newswires
September 20, 2021 10:37 ET (14:37 GMT)
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