Albion Enterprise VCT PLC: Half-yearly report
Albion Enterprise VCT PLC
As required by the UK Listing Authority's Disclosure and Transparency Rule 4.2,
Albion Enterprise VCT PLC today makes public its information relating to the
Half-yearly Financial Report (which is unaudited) for the six months to 30
September 2011. This announcement was approved by the Board of Directors on 24
November 2011.
The full Half-yearly Financial Report (which is unaudited) for the six months to
30 September 2011, will shortly be sent to shareholders. Copies of the full
Half-yearly Financial Report will be shown via the Albion Ventures LLP website
www.albion-ventures.co.uk under the "Our Funds" section by clicking Albion
Enterprise VCT PLC.
Investment objectives
The aim of Albion Enterprise VCT PLC (the 'Company') is to provide investors
with a regular and predictable source of income, combined with the prospect of
longer term capital growth. The Company intends to achieve this by investing
around 50 per cent. of the net funds raised in an asset-based portfolio of lower
risk, ungeared businesses, principally operating in the leisure sector and
related areas (the ''Asset-Based Portfolio''). The balance of the net funds
raised, other than funds retained for liquidity purposes, will be invested in a
growth portfolio of higher growth businesses across a variety of sectors of the
UK economy. These will range from lower risk, income producing businesses to
higher risk technology companies (the ''Growth Portfolio''). Funds awaiting
investment in Qualifying Investments or retained for liquidity purposes will be
held in gilts, on deposit or invested in floating rate notes or similar
instruments, in the latter two cases with banks with a Moody's credit rating of
'A' or above.
The Company's investment portfolio will thus be structured to provide a balance
between income and capital growth for the longer term. The Asset-Based Portfolio
is designed to provide stability and income whilst still maintaining the
potential for capital growth. The Growth Portfolio is intended to provide highly
diversified exposure through its portfolio of investments in unquoted UK
companies.
Financial calendar
Record date for second dividend 3 February 2012
Payment date for second dividend 29 February 2012
Financial year end 31 March 2012
Financial highlights (unaudited)
+---------------------+-------------------+-------------------+----------------+
|Â | Unaudited six| Unaudited six| Audited|
| | months| months| year ended 31 |
| | ended 30 September| ended 30 September| March|
| | 2011| 2010| 2011|
| | | | |
|Â | (pence per share)| (pence per share)| (pence per|
| | | | share)|
| | | | |
|Net asset value | 85.40| 88.10| 87.13|
| | | | |
|Dividends paid | 1.50| 1.50| 3.00|
| | | | |
|Revenue return | 0.62| 0.72| 1.23|
| | | | |
|Capital (loss)/return| (0.87)| 0.62| 0.67|
+---------------------+-------------------+-------------------+----------------+
+----------------------------------------------------------------------------+
|Net asset value total return to shareholders since launch: (pence per share)|
| |
|Â Â |
| |
|Dividends paid during the period ended: Â |
| |
| 31 March 2008 0.70|
| |
| 31 March 2009 1.65|
| |
| 31 March 2010 2.00|
| |
| 31 March 2011 3.00|
| |
| 30 September 2011 1.50|
| ------------------+
|Total dividends paid to 30 September 2011 8.85|
| |
|Net asset value as at 30 September 2011 85.40|
| ------------------+
|Total net asset value return to 30 September 2011 94.25|
+----------------------------------------------------------------------------+
In addition to the above dividends, the Company will pay a second dividend of
1.50 pence per share on 29 February 2012 to shareholders on the register at 3
February 2012.
Notes
* The dividend of 0.7 pence per share paid during the period ended 31 March
2008 and first dividend of 0.4 pence per share paid during the year ended
31 March 2009 were paid to shareholders who subscribed in the 2006/2007
offer only.
* All dividends paid by the Company are free of income tax. It is an H. M.
Revenue & Customs requirement that dividend vouchers indicate the tax
element should dividends have been subject to income tax. Investors should
ignore this figure on their dividend voucher and need not disclose any
income they receive from a VCT on their tax return.
* The net asset value of the Company is not its share price as quoted on the
official list of the London Stock Exchange. The share price of the Company
can be found in the Investment Companies - VCTs section of the Financial
Times on a daily basis.
* Investors are reminded that it is common for shares in VCTs to trade at a
discount to their net asset value.
Interim management report
Introduction
The Company's results for the six months to 30 September 2011 show a small
negative return of 0.25 pence per share. Â This slightly disappointing result has
been driven by a cautious view of two of our higher growth businesses and masks
a strong performance elsewhere within the portfolio. Â Although income is
slightly below the same period last year, as a result of the sale of our high
yielding investment in Geronimo Inns, the income is ahead of the six month
period to 31 March 2011. Â Net asset value, after payment of the first dividend
of 1.50 pence per share on 31 August 2011, was 85.40 pence per share.
Investment progress and prospects
During the period some £1.9 million was invested in one new and four existing
investee companies.  This included £225,000 in Abcodia, a company spin-out from
University College London, which owns a unique serum bank, the largest of its
kind in the world, for use in disease diagnosis and screening. Â Meanwhile,
£700,000 and £651,000 were invested in Radnor House School and Nelson House
Hospital respectively as further tranches of the original investments made last
year.
As regards the existing portfolio, and as referred to above, partial provisions
were made against Mi-Pay (payment processing services to mobile network
operators) and Masters Pharmaceuticals (international pharmaceutical
distribution). Â Although both these businesses have broad international
franchises, and Mi-Pay in particular continues to show strong growth, both
companies have been behind their forecasts and required additional investment.
 Against that, in the growth portfolio, Process Systems Enterprise has seen good
progress in its activity of process simulation, particularly in the
petrochemical industry. Â In addition, Radnor House School, which owns and
operates a new independent school on the Thames at Twickenham, opened in
September and now has over twice the number of pupils originally budgeted for.
Two areas that are of particular interest for the VCT are the healthcare and
environmental sectors, where progress in our companies in these areas has been
promising. Â In addition, the VCT still has good cash resources at a time when
there are a number of promising investment opportunities under review and when
alternative sources of finance have become scarce.
Pie charts showing the current split in the investment portfolio by sector and
by nature of the investment and the split between asset-based and growth, are
attached to the end of this announcement.
Albion VCTs Linked Top Up Offer 2011/2012
The Company has announced the launch of the second Albion VCTs Linked Top Up
Offer 2011/2012. Â In aggregate the Albion VCTs will again be aiming to raise up
to £15 million across seven of the VCTs managed by Albion Ventures, of which the
Company's share will be approximately £2.25 million.  The proceeds for the Offer
will be to provide further resources at a time when a number of attractive new
opportunities are being seen. Â An Investor Guide and Offer Document have been
sent to shareholders.
Risks and uncertainties
The outlook for the UK and international economies continues to be the key risk
affecting your company. Â Indications are that growth has leveled off, both in
the UK and in the Eurozone, which will impact some of the markets in which our
investee companies operate. Â However, your Company's balanced mix of asset-based
and high growth investments is designed to be an "all weather" portfolio, while
investment risk is further mitigated through our policy of ensuring that
portfolio companies have no external bank borrowings.
Other risks and uncertainties remain unchanged and are detailed in note 14.
Related party transactions
Details for material related party transactions for the reporting period can be
found in note 12 to this Half-yearly Financial Report.
Results and dividends
As at 30 September 2011 the net asset value of the Company was 85.40 pence per
share or £27.4 million, compared to 87.13 pence or £27.5 million on 31 March
2011.  The revenue return on ordinary activities before taxation was £257,000
compared with £290,000 for the six months to 30 September 2010.  The Directors
declare a second dividend for the year of 1.50 pence per share, payable on 29
February 2012 to shareholders on the register as at 3 February 2012.
Maxwell Packe
Chairman
24 November 2011
Responsibility statement
The Directors, being Maxwell Packe, Lord St John of Bletso, Lady Balfour of
Burleigh and Patrick Reeve, are responsible for preparing the Half-yearly
Financial Report. The Directors have chosen to prepare this Half-yearly
Financial Report for the Company in accordance with United Kingdom Generally
Accepted Accounting Practice ("UK GAAP").
In preparing these summarised Financial Statements for the six months to 30
September 2011, we the Directors of the Company, confirm that to the best of our
knowledge:
(a) the summarised set of Financial Statements has been prepared in accordance
with the pronouncement on interim reporting issued by the Accounting Standards
Board;
(b)Â 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);
(c) the summarised set of Financial Statements gives a true and fair view in
accordance with UK GAAP of the assets, liabilities, financial position and
profit and loss of the Company for the six months ended 30 September 2011 and
comply with UK GAAP and Companies Act 1985 and 2006 and;
(d)Â 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).
The accounting policies applied to the Half-yearly Financial Report have been
consistently applied in current and prior periods and are those applied in the
Annual Report and Financial Statements for the year ended 31 March 2011.
This Half-yearly Financial Report has not been audited or reviewed by the
auditors.
By order of the Board of Directors
M Packe
Chairman
24 November 2011
Portfolio of investments
The following is a summary of qualifying fixed asset investments as at 30
September 2011:
+---------------------+---------+-----------+----------+------------+----------+
|Â | Â | % voting| Â | Â | Â |
|Â | Â | rights of| Â | Cumulative| Â |
|Â | Â | AVL*|Investment| movement in| Total|
|Â | % voting| managed| at cost| carrying| carrying|
| | rights| companies| £'000| value| value|
| | | | | £'000|  £'000|
+---------------------+---------+-----------+----------+------------+----------+
|Asset-based | Â | Â | | | |
|investments | | | Â | Â | Â |
| | | | | | |
|Bravo Inns II Limited| 14.5| 50.0| 1,793| (58)| 1,735|
| | | | | | |
|Radnor House School | Â | Â | | | |
|(Holdings) Limited | 9.8| 50.0| 1,700| 24| 1,724|
| | | | | | |
|Nelson House Hospital| 18.9| 50.0| | | |
|Limited | | | 1,612| 1| 1,613|
| | | | | | |
|Regenerco Renewable | Â | Â | | | |
|Energy Limited | 21.5| 50.0| 1,195| -| 1,195|
| | | | | | |
|Taunton Hospital | | | | | |
|Limited | 15.8| 50.0| 1,000| 2| 1,002|
| | | | | | |
|Alto Prodotto Wind | 23.2| 50.0| | | |
|Limited | | | 1,000| -| 1,000|
| | | | | | |
|Greenenerco Limited | 50.0| 50.0| 1,000| -| 1,000|
| | | | | | |
|TEG Biogas (Perth) | 16.4| 50.0| | | |
|Limited | | | 953| 6| 959|
| | | | | | |
|The Sreet by Street | Â | Â | | | |
|Solar | 21.5| 50.0| | | |
|Â Programme Limited | | | 860| -| 860|
| | | | | | |
|Orchard Portman | | | | | |
|Hospital Limited | 10.2| 50.0| 664| 3| 667|
| | | | | | |
|Bravo Inns Limited | 8.4| 50.0| 751| (287)| 464|
| | | | | | |
|The Charnwood Pub | Â | Â | | | |
|Company Limited | 1.2| 50.0| 290| (116)| 174|
| | | | | | |
|AVESI Limited | 21.5| 50.0| 172| -| 172|
| | | | | | |
|CS (Norwich) Limited | 6.3| 50.0| 100| 4| 104|
+---------------------+---------+-----------+----------+------------+----------+
|Total asset-based | Â | Â | 13,090| (421)| 12,669|
|investments | | | | | |
+---------------------+---------+-----------+----------+------------+----------+
|Growth investments | Â | Â | Â | Â | Â |
| | | | | | |
|Masters | | | | | |
|Pharmaceuticals | | | | | |
|Limited | 6.2| 16.9| 1,239| (131)| 1,108|
| | | | | | |
|Prime Care Holdings | 12.5| 49.9| | | |
|Limited | | | 1,016| (123)| 893|
| | | | | | |
|Mirada Medical | 16.7| 50.0| | | |
|Limited | | | 389| 386| 775|
| | | | | | |
|DySIS Medical Limited| 6.2| 16.7| 925| (180)| 745|
| | | | | | |
|Opta Sports Data | 2.8| 14.2| | | |
|Limited | | | 653| 3| 656|
| | | | | | |
|Mi-Pay Limited | 8.1| 43.1| 986| (335)| 651|
| | | | | | |
|Memsstar Limited | 5.5| 28.1| 384| 44| 428|
| | | | | | |
|Process Systems | Â | Â | | | |
|Enterprise | 3.1| 15.9| | | |
|Â Limited | | | 295| 112| 407|
| | | | | | |
|Oxsensis Limited | 3.8| 20.6| 503| (217)| 286|
| | | | | | |
|Abcodia Limited | 6.4| 21.4| 225| -| 225|
| | | | | | |
|Lowcosttravelgroup | 1.0| 26.0| | | |
|Limited | | | 270| (212)| 58|
+---------------------+---------+-----------+----------+------------+----------+
|Total growth | Â | Â | 6,885| (653)| 6,232|
|investments | | | | | |
+---------------------+---------+-----------+----------+------------+----------+
|Total qualifying | Â | Â | 19,975| (1,074)| 18,901|
|investments | | | | | |
+---------------------+---------+-----------+----------+------------+----------+
The following is a summary of current asset investments as at 30 September 2011:
+---------------------------------+------------+-------------+----------+
| Â | Â | Cumulative | Â |
| Â | Â | movement in | Total |
| Â | Investment | carrying | carrying |
| Â | at cost | value | value |
|  | £'000 | £'000 | £'000 |
+---------------------------------+------------+-------------+----------+
| Royal Skandia Collective Bond | 1,000 | 2 | 1,002 |
+---------------------------------+------------+-------------+----------+
| Total current asset investments | 1,000 | 2 | 1,002 |
+---------------------------------+------------+-------------+----------+
* AVL is Albion Ventures LLP
Summary income statement
+---------------+----+----------------------+---------------------+---------------------+
| Â | Â | Unaudited | Unaudited | Audited |
| | | six months ended | six months ended | year ended |
| | | 30 September 2011 | 30 September 2010 | 31 March 2011 |
+---------------+----+-------+-------+------+-------+-------+-----+-------+-------+-----+
| Â |Note|Revenue|Capital| Total|Revenue|Capital|Total|Revenue|Capital|Total|
| | | £'000| £'000| £'000| £'000| £'000|£'000| £'000| £'000|£'000|
| +----+-------+-------+------+-------+-------+-----+-------+-------+-----+
|Â |Â |Â |Â |Â |Â |Â |Â |Â |Â |Â |
| | | | | | | | | | | |
|(Losses)/gains | | | | | | | | | | |
|on | | | | | | | | | | |
|investments | 3| -| (80)| (80)| -| 374| 374| -| 588| 588|
| | | | | | | | | | | |
|Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â |
| | | | | | | | | | | |
|Investment | | | | | | | | | | |
|income | 4| 436| -| 436| 470| -| 470| 852| -| 852|
| | | | | | | | | | | |
|Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â |
| | | | | | | | | | | |
|Investment | | | | | | | | | | |
|management fees| Â | (86)| (257)| (343)| (83)| (249)|(332)| (168)| (505)|(673)|
| | | | | | | | | | | |
|Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â |
| | | | | | | | | | | |
|Other expenses | Â | (93)| -| (93)| (97)| -| (97)| (190)| -|(190)|
| | +-------+-------+------+-------+-------+-----+-------+-------+-----+
|Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â |
| | | | | | | | | | | |
|Return/(loss) | | | | | | | | | | |
|on | | | | | | | | | | |
|ordinary | | | | | | | | | | |
|activities | | | | | | | | | | |
|before taxation| Â | 257| (337)| (80)| 290| 125| 415| 494| 83| 577|
| | | | | | | | | | | |
|Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â |
| | | | | | | | | | | |
|Tax | | | | | | | | | | |
|(charge)/credit| | | | | | | | | | |
|on ordinary | | | | | | | | | | |
|activities | Â | (60)| 60| -| (73)| 64| (9)| (121)| 121| -|
| | +-------+-------+------+-------+-------+-----+-------+-------+-----+
|Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â |
| | | | | | | | | | | |
|Return/(loss) | | | | | | | | | | |
|attributable to| | | | | | | | | | |
|equityholders | Â | 197| (277)| (80)| 217| 189| 406| 373| 204| 577|
| | +-------+-------+------+-------+-------+-----+-------+-------+-----+
|Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â |
| | | | | | | | | | | |
|Basic and | | | | | | | | | | |
|diluted | | | | | | | | | | |
|return/(loss) | | | | | | | | | | |
|per | | | | | | | | | | |
|share (pence)* | 6| 0.62| (0.87)|(0.25)| 0.72| 0.62| 1.34| 1.23| 0.67| 1.90|
+---------------+----+-------+-------+------+-------+-------+-----+-------+-------+-----+
* Â excluding treasury shares
Comparative figures have been extracted from the unaudited Half-yearly Financial
Report for the six months ended 30 September 2010 and the audited statutory
accounts for the year ended 31 March 2011.
The accompanying notes form an integral part of this Half-yearly Financial
Report.
The total column of this Summary 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.
All revenue and capital items in the above statement derive from continuing
operations.
There are no recognised gains or losses other than the results for the periods
disclosed above. Accordingly, a Statement of total recognised gains and losses
is not required.
The difference between the reported loss on ordinary activities before tax and
the historical profit is due to the fair value movements on investments. As a
result a note on historical cost profit and losses has not been prepared.
Summary balance sheet
+--------------------------------------+----+------------+------------+--------+
|Â |Â | Unaudited| Unaudited| Audited|
| |Â |30 September|30 September|31 March|
| |Â | 2011| 2010| 2011|
| |Note| £'000| £'000| £'000|
+--------------------------------------+----+------------+------------+--------+
|Fixed asset investments | Â | 18,901| 14,602| 18,164|
| | | | | |
|Â |Â | Â | Â | Â |
| | | | | |
|Current assets |Â | Â | Â | Â |
| | | | | |
|Trade and other debtors | Â | 316| 102| 144|
| | | | | |
|Current asset investments | Â | 1,002| 2,518| 2,507|
| | | | | |
|Cash at bank | 9| 7,339| 9,722| 7,002|
| | +------------+------------+--------+
|Â |Â | 8,657| 12,342| 9,653|
| | | | | |
|Â |Â | Â | Â | Â |
| | | | | |
|Creditors: amounts falling due within |Â | | | |
|one year | | (188)| (238)| (284)|
| | +------------+------------+--------+
|Â |Â | Â | Â | Â |
| | | | | |
|Net current assets |Â | 8,469| 12,104| 9,369|
| | +------------+------------+--------+
|Â |Â | Â | Â | Â |
| | | | | |
|Net assets |Â | 27,370| 26,706| 27,533|
| | +------------+------------+--------+
|Â |Â | Â | Â | Â |
| | | | | |
|Capital and reserves |Â | Â | Â | Â |
| | | | | |
|Called up share capital | 7| 16,213| 15,204| 15,937|
| | | | | |
|Share premium |Â | 733| 6| 535|
| | | | | |
|Unrealised capital reserve |Â | (1,151)| (371)| (518)|
| | | | | |
|Special reserve |Â | 11,987| 13,435| 11,987|
| | | | | |
|Treasury shares reserve |Â | (284)| (64)| (207)|
| | | | | |
|Realised capital reserve |Â | (518)| (1,721)| (874)|
| | | | | |
|Revenue reserve |Â | 390| 217| 673|
| | +------------+------------+--------+
|Â |Â | Â | Â | Â |
| | | | | |
|Total equity shareholders' funds |Â | 27,370| 26,706| 27,533|
| | +------------+------------+--------+
|Â |Â | Â | Â | Â |
| | | | | |
|Basic and diluted net asset value per |Â | | | |
|share (pence)* | | 85.40| 88.10| 87.13|
+--------------------------------------+----+------------+------------+--------+
* excluding treasury shares
Comparative figures have been extracted from the unaudited Half-yearly Financial
Report for the six months ended 30 September 2010 and the audited statutory
accounts for the year ended 31 March 2011.
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 24 November 2011 and were signed on its behalf by
M Packe
Chairman
Company number  05990732
Summary reconciliation of movements in shareholders' funds
+-------------+-------+-------+----------+--------+--------+--------+--------+------+
| Â | Called| Share|Unrealised| Â |Treasury|Realised| Â | Â |
| | up|premium| Capital| Special| Shares| Capital| Revenue| Â |
| | Share| £'000| reserve*|reserve*|reserve*|reserve*|reserve*| Total|
| |capital| | | | | | | |
| | | | | | | | | |
| | £'000| £'000| £'000| £'000| £'000| £'000| £'000| £'000|
+-------------+-------+-------+----------+--------+--------+--------+--------+------+
|As at 1 April| | | | | | | | |
|2011 | | | | | | | | |
|(audited) | 15,937| 535| (518)| 11,987| (207)| (874)| 673|27,533|
| | | | | | | | | |
|Issue of | | | | | | | | |
|share capital| | | | | | | | |
|(net of | | | | | | | | |
|costs) | 276| 198| -| -| -| -| -| 474|
| | | | | | | | | |
|Capitalised | | | | | | | | |
|investment | | | | | | | | |
|management | Â | Â | Â | Â | Â | Â | Â | Â |
|Â Â Â fees | -| -| -| -| -| (257)| -| (257)|
| | | | | | | | | |
|Tax relief on| | | | | | | | |
|costs charged| | | | | | | | |
|to capital | -| -| -| -| -| 60| -| 60|
| | | | | | | | | |
|Purchase of | | | | | | | | |
|own treasury | | | | | | | | |
|shares | -| -| -| -| (77)| -| -| (77)|
| | | | | | | | | |
|Net realised | | | | | | | | |
|gains on | | | | | | | | |
|investments | -| -| -| -| -| 132| -| 132|
| | | | | | | | | |
|Unrealised | | | | | | | | |
|losses on | | | | | | | | |
|investments | -| -| (212)| -| -| -| -| (212)|
| | | | | | | | | |
|Transfer of | | | | | | | | |
|previously | | | | | | | | |
|unrealised | | | | | | | | |
|Â Â Â gains on| | | | | | | | |
|sale of | | | | | | | | |
|investments | -| -| (421)| -| -| 421| -| -|
| | | | | | | | | |
|Revenue | | | | | | | | |
|return | | | | | | | | |
|attributable | | | | | | | | |
|to | | | | | | | | |
|Â Â | | | | | | | Â | Â |
|Â shareholders| -| -| -| -| -| -| 197| 197|
| | | | | | | | | |
|Dividends | | | | | | | | |
|paid | -| -| -| -| -| -| (480)| (480)|
| +-------+-------+----------+--------+--------+--------+--------+------+
|As at 30 | | | | | | | | |
|September | | | | | | | | |
|2011 | Â | Â | Â | Â | Â | Â | Â | Â |
|(unaudited) | 16,213| 733| (1,151)| 11,987| (284)| (518)| 390|27,370|
| +-------+-------+----------+--------+--------+--------+--------+------+
|Â | Â | Â | Â | Â | Â | Â | Â | Â |
| | | | | | | | | |
|Â | Â | Â | Â | Â | Â | Â | Â | Â |
| | | | | | | | | |
|As at 1 April| | | | | | | | |
|2010 | | | | | | | | |
|(audited) | 15,189| -| (797)| 13,473| (39)| (1,368)| 300|26,758|
| | | | | | | | | |
|Issue of | | | | | | | | |
|share capital| | | | | | | | |
|(net of | | | | | | | | |
|costs) | 15| 6| -| -| -| -| -| 21|
| | | | | | | | | |
|Capitalised | | | | | | | | |
|investment | | | | | | | | |
|management | Â | Â | Â | Â | Â | Â | Â | Â |
|Â Â Â fees | -| -| -| -| -| (249)| -| (249)|
| | | | | | | | | |
|Tax relief on| | | | | | | | |
|costs charged| | | | | | | | |
|to capital | -| -| -| -| -| 64| -| 64|
| | | | | | | | | |
|Purchase of | | | | | | | | |
|own treasury | | | | | | | | |
|shares | -| -| -| -| (25)| -| -| (25)|
| | | | | | | | | |
|Net realised | | | | | | | | |
|gains on | | | | | | | | |
|investments | -| -| -| -| -| 28| -| 28|
| | | | | | | | | |
|Unrealised | | | | | | | | |
|gains on | | | | | | | | |
|investments | -| -| 346| -| -| -| -| 346|
| | | | | | | | | |
|Transfer of | | | | | | | | |
|previously | | | | | | | | |
|unrealised | | | | | | | | |
|Â Â Â losses | | | | | | | | |
|on sale of | | | | | | | | |
|investments | -| -| 80| -| -| (80)| -| -|
| | | | | | | | | |
|Revenue | | | | | | | | |
|return | | | | | | | | |
|attributable | | | | | | | | |
|to | | | | | | | | |
|Â Â | Â | Â | Â | Â | Â | Â | Â | Â |
|Â shareholders| -| -| -| -| -| -| 217| 217|
| | | | | | | | | |
|Dividends | | | | | | | | |
|paid | -| -| -| (38)| -| (116)| (300)| (454)|
| +-------+-------+----------+--------+--------+--------+--------+------+
|As at 30 | | | | | | | | |
|September | | | | | | | | |
|2010 | Â | Â | Â | Â | Â | Â | Â | Â |
|(unaudited) | 15,204| 6| (371)| 13,435| (64)| (1,721)| 217|26,706|
| +-------+-------+----------+--------+--------+--------+--------+------+
|Â | Â | Â | Â | Â | Â | Â | Â | Â |
| | | | | | | | | |
|Â | Â | Â | Â | Â | Â | Â | Â | Â |
| | | | | | | | | |
|As at 1 April| | | | | | | | |
|2010 | | | | | | | | |
|(audited) | 15,189| -| (797)| 13,473| (39)| (1,368)| 300|26,758|
| | | | | | | | | |
|Issue of | | | | | | | | |
|share capital| | | | | | | | |
|(net of | | | | | | | | |
|costs) | 748| 535| -| -| -| -| -| 1,283|
| | | | | | | | | |
|Capitalised | | | | | | | | |
|investment | | | | | | | | |
|management | | | | | | | | |
|Â Â Â fees | -| -| -| -| -| (505)| -| (505)|
| | | | | | | | | |
|Tax relief on| | | | | | | | |
|costs charged| | | | | | | | |
|to capital | -| -| -| -| -| 121| -| 121|
| | | | | | | | | |
|Purchase of | | | | | | | | |
|own treasury | | | | | | | | |
|shares | -| -| -| -| (168)| -| -| (168)|
| | | | | | | | | |
|Net realised | | | | | | | | |
|gains on | | | | | | | | |
|investments | -| -| -| -| -| 91| -| 91|
| | | | | | | | | |
|Unrealised | | | | | | | | |
|gains on | | | | | | | | |
|investments | -| -| 497| -| -| -| -| 497|
| | | | | | | | | |
|Transfer of | | | | | | | | |
|previously | | | | | | | | |
|unrealised | | | | | | | | |
|Â Â Â gains on| | | | | | | | |
|sale of | | | | | | | | |
|investments | -| -| (218)| -| -| 218| -| -|
| | | | | | | | | |
|Revenue | | | | | | | | |
|return | | | | | | | | |
|attributable | | | | | | | | |
|to | | | | | | | | |
|Â Â | | | | | | | | |
|Â shareholders| -| -| -| -| -| -| 373| 373|
| | | | | | | | | |
|Dividends | | | | | | | | |
|paid | -| -| -| -| -| -| (917)| (917)|
| | | | | | | | | |
|Transfer from| | | | | | | | |
|Special | | | | | | | | |
|reserve to | | | | | | | | |
|Â Â Â realised| | | | | | | | |
|capital | | | | | | | | |
|reserve | -| -| -| (569)| -| 569| -| -|
| | | | | | | | | |
|Transfer from| | | | | | | | |
|Special | | | | | | | | |
|reserve to | | | | | | | | |
|Â Â Â Revenue | | | | | | | | |
|reserve | -| -| -| (917)| -| -| 917| -|
| +-------+-------+----------+--------+--------+--------+--------+------+
|As at 31 | | | | | | | | |
|March 2011 | | | | | | | | |
|(audited) | 15,937| 535| (518)| 11,987| (207)| (874)| 673|27,533|
+-------------+-------+-------+----------+--------+--------+--------+--------+------+
* Included within these reserves is an amount of £10,424,000 (30 September
2010: £11,496,000; 31 March 2011: £11,061,000) which is considered
distributable. The Special reserve has been treated as distributable in
determining the amounts available for distribution.
Summary cash flow statement
+-----------------------+----+-----------------+-----------------+-------------+
|Â |Â | Unaudited| Unaudited| Audited|
| |Â | six months ended| six months ended| year ended|
| |Â |30 September 2011|30 September 2010|31 March 2011|
| |Note| £'000| £'000| £'000|
+-----------------------+----+-----------------+-----------------+-------------+
|Operating activities | Â | Â | Â | Â |
| | | | | |
|Investment income | | | | |
|received | Â | 381| 306| 767|
| | | | | |
|Deposit interest | | | | |
|received | Â | 36| 90| 150|
| | | | | |
|Investment management | | | | |
|fees paid | Â | (166)| (169)| (670)|
| | | | | |
|Other cash payments | Â | (120)| (73)| (170)|
| | +-----------------+-----------------+-------------+
|Net cash flow from | | | | |
|operating | | | | |
|Â Â activities | 8| 131| 154| 77|
| | +-----------------+-----------------+-------------+
|Â | Â | Â | Â | Â |
| | | | | |
|Taxation | Â | Â | Â | Â |
| | | | | |
|UK corporation tax | Â | -| 6| 6|
| | +-----------------+-----------------+-------------+
|Â | Â | Â | Â | Â |
| | | | | |
|Capital expenditure and| | | | |
|financial | | | | |
|Â Â investments | Â | Â | Â | Â |
| | | | | |
|Purchase of fixed asset| | | | |
|investments | Â | (2,119)| (3,112)| (8,737)|
| | | | | |
|Disposal of fixed asset| | | | |
|investments | Â | 889| -| 3,161|
| | +-----------------+-----------------+-------------+
|Net cash flow from | | | | |
|investing | | | | |
|Â Â activities | Â | (1,230)| (3,112)| (5,576)|
| | +-----------------+-----------------+-------------+
|Â | Â | Â | Â | Â |
| | | | | |
|Management of liquid | | | | |
|resources | Â | Â | Â | Â |
| | | | | |
|Purchase of current | | | | |
|asset | | | | |
|Â Â investments | Â | (1,000)| (3,004)| (3,009)|
| | | | | |
|Disposal of current | | | | |
|asset investments | Â | 2,517| 3,851| 3,054|
| | +-----------------+-----------------+-------------+
|Net cash flow from | | | | |
|management of | | | | |
|Â Â liquid resources | Â | 1,517| 847| 45|
| | +-----------------+-----------------+-------------+
|Â | Â | Â | Â | Â |
| | | | | |
|Equity dividends paid | | | | |
|(net of costs | | | | |
|Â Â of shares issued | | | | |
|under the | | | | |
|Â Â Dividend | | | | |
|Reinvestment Scheme) | Â | (445)| (433)| (861)|
| | +-----------------+-----------------+-------------+
|Â | Â | Â | Â | Â |
| | | | | |
|Net cash flow before | | | | |
|financing | Â | (27)| (2,538)| (6,309)|
| | | | | |
|Â | Â | Â | Â | Â |
| | | | | |
|Financing | Â | Â | Â | Â |
| | | | | |
|Issue of ordinary share| | | | |
|capital | Â | 457| -| 1,210|
| | | | | |
|Purchase of own shares | Â | (81)| (21)| (164)|
| | | | | |
|Expenses of issue of | | | | |
|ordinary share | | | | |
|Â Â capital | Â | (12)| -| (16)|
| | +-----------------+-----------------+-------------+
|Net cash flow from | | | | |
|financing | Â | 364| (21)| 1,030|
| | +-----------------+-----------------+-------------+
|Â | Â | Â | Â | Â |
| | | | | |
|Cash flow in the period| 9| 337| (2,559)| (5,279)|
+-----------------------+----+-----------------+-----------------+-------------+
Notes to the unaudited summarised Financial Statements
1. Accounting convention
The Financial Statements have been prepared in accordance with the historical
cost convention, modified to include the revaluation of investments, in
accordance with applicable United Kingdom law and accounting standards 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") in January 2009. Accounting policies have been
applied consistently in current and prior periods.
2. Accounting policies
Investments
Fixed and current asset investments
Quoted and unquoted equity investments, debt issued at a discount and
convertible bonds
In accordance with FRS 26 "Financial Instruments Recognition and Measurement",
quoted and unquoted equity, debt issued at a discount and convertible bonds are
designated as fair value through profit or loss ("FVTPL"). Â Investments listed
on recognised exchanges are valued at the closing bid prices at the end of the
accounting period. Â Unquoted investments' fair value is determined by the
Directors in accordance with the September 2009 International Private Equity and
Venture Capital Valuation Guidelines (IPEVCV guidelines).
Desk top reviews are carried out by independent RICS qualified surveyors by
updating previously prepared full valuations for current trading and market
indices. Â Full valuations are prepared by similarly qualified surveyors but in
full compliance with the RICS Red Book.
Fair value movements on equity investments and gains and losses arising on the
disposal of investments are reflected in the capital column of the Income
statement in accordance with the AIC SORP and realised gains or losses on the
sale of investments will be reflected in the realised capital reserve, and
unrealised gains or losses arising from the revaluation of investments will be
reflected in the unrealised capital reserve.
Warrants and unquoted equity derived instruments
Warrants and unquoted equity derived instruments are only valued if their
exercise or contractual conversion terms would allow them to be exercised or
converted as at the balance sheet date, and if there is additional value to the
Company in exercising or converting as at the balance sheet date. Otherwise
these instruments are held at nil value. The valuation techniques used are those
used for the underlying equity investment.
Unquoted loan stock
Unquoted loan stock (excluding convertible bonds and debt issued at a discount)
are classified as loans and receivables as permitted by FRS 26 and carried at
amortised cost using the Effective Interest Rate method less impairment.
Movements in amortised cost relating to interest income are reflected in the
revenue column of the Income statement, and hence are reflected in the revenue
reserve, and movements in respect of capital provisions are reflected in the
capital column of the Income statement and are reflected in the realised capital
reserve following sale, or in the unrealised capital reserve on revaluation.
For all unquoted loan stock, whether fully performing, re-negotiated, past due
or impaired, the Board considers that the fair value is equal to or greater than
the security value of these assets. For unquoted loan stock, the amount of the
impairment is the difference between the asset's cost and the present value of
estimated future cash flows, discounted at the original effective interest rate.
The future cash flows are estimated based on the fair value of the security less
the estimated selling costs.
Floating rate notes
In accordance with FRS 26, floating rate notes are designated as fair value
through profit or loss. Floating rate notes are valued at market bid price at
the balance sheet date. Floating rate notes are classified as current asset
investments as they are investments held for the short term.
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
revenue reserve when a share becomes ex-dividend.
Loan stock accrued interest is recognised in the Balance sheet as part of the
carrying value of the loans and receivables at the end of each reporting period.
It is not the Company's policy to exercise control or significant influence over
portfolio companies. Therefore in accordance with the exemptions under FRS 9
"Associates and joint ventures", those undertakings in which the Company holds
more than 20 per cent. of the equity are not regarded as associated
undertakings.
Investment income
Unquoted 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 on a time
apportionment basis using an effective interest rate over the life of the
financial instrument. Income which is not capable of being received within a
reasonable period of time is reflected in the capital value of the investment.
Bank interest income
Interest income is recognised on an accruals basis using the rate of interest
agreed with the bank.
Floating rate note income
Floating rate note income is recognised on an accruals basis using the interest
rate applicable to the floating rate note at that time.
Investment management fees and other expenses
All expenses have been accounted for on an accruals basis. Expenses are charged
through the revenue account except the following which are charged through the
realised capital reserve:
75 per cent. of management fees are allocated to the capital account to the
extent that these relate to an enhancement in the value of the investments. 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.
Performance incentive fee
In the event that a performance incentive fee crystallises, the fee will be
allocated between revenue and realised capital reserves based upon the
proportion to which the calculation of the fee is attributable to revenue and
capital returns.
Taxation
Taxation is applied on a current basis in accordance with FRS 16 "Current tax".
Taxation associated with capital expenses is applied in accordance with the
SORP. In accordance with FRS 19 "Deferred tax", deferred taxation is provided in
full on timing differences that result in an obligation at the balance sheet
date to pay more tax or a right to pay less tax, at a future date, at rates
expected to apply when they crystallise based on current tax rates and law.
Timing differences arise from the inclusion of items of income and expenditure
in taxation computations in periods different from those in which they are
included in the Financial Statements.
Deferred tax assets are recognised to the extent that it is regarded as more
likely than not that they will be recovered.
The Directors have considered the requirements of FRS 19 and do not believe that
any provision for deferred tax  should be made.
Reserves
Unrealised capital reserve
Increases and decreases in the valuation of investments held at the period end
against cost are included in this reserve.
Special reserve
The cancellation of the share premium account has created a special reserve that
can be used to fund market purchases and subsequent cancellation of own shares,
to cover gross realised losses, and for other distributable purposes.
Treasury shares reserve
This reserve accounts for amounts by which the distributable reserves of the
Company are diminished through the repurchase of the Company's own shares for
treasury.
Realised capital reserve
The following are disclosed in this reserve:
* gains and losses compared to cost on the realisation of investments;
* expenses, together with the related taxation effect, charged in accordance
with the above policies; and
* dividends paid to equity holders.
Dividends
In accordance with FRS 21 "Events after the balance sheet date", dividends
declared by the Company are accounted for in the period in which the dividend
has been paid or approved by shareholders in an Annual General Meeting.
3. (Losses)/gains on investments
Unaudited Unaudited Audited
six months ended six months ended year ended
30 September 2011 30 September 2010 31 March 2011
 £'000 £'000 £'000
--------------------------------------------------------------------------------
Unrealised (losses)/gains on
fixed asset
investments held at fair value
through
profit or loss account (173) 340 405
Unrealised
(impairments)/releases of
impairments on investments
held at
amortised cost (39) 24 121
--------------------------------------------------
Unrealised (losses)/gains on
fixed
asset investments (212) 364 526
Unrealised (losses) on current
asset
investments held at fair value
through
profit or loss account - (18) (29)
--------------------------------------------------
Unrealised (losses)/gains sub-
total (212) 346 497
--------------------------------------------------
Realised gains/(losses) on
fixed asset
investments held at fair value
through
profit or loss account 78 (1) 43
Realised gains/(losses) on
fixed asset
investments held at amortised
cost 61 (18) -
Realised (losses)/gains on
current asset
investments held at fair value
through
profit or loss account (7) 47 48
--------------------------------------------------
Realised gains sub-total 132 28 91
--------------------------------------------------
Total (80) 374 588
--------------------------------------------------
Investments valued on amortised cost basis are unquoted loan stock instruments.
4. Investment income
Unaudited Unaudited Audited
six months ended six months ended year ended
30 September 2011 30 September 2010 31 March 2011
 £'000 £'000 £'000
--------------------------------------------------------------------------------
Income recognised on
investments held at
fair value through profit or
loss
Floating rate note and bond
income 13 36 70
Interest on convertible bonds
and debt issued
at a discount 52 - -
--------------------------------------------------
 65 36 70
--------------------------------------------------
Income recognised on
investments held at
amortised cost
Return on loan stock
investments 305 345 618
Bank deposit interest 66 89 164
--------------------------------------------------
 371 434 782
--------------------------------------------------
 436 470 852
--------------------------------------------------
All of the Company's income is derived from operations based in the United
Kingdom.
5. Dividends
Unaudited Unaudited Audited
six months ended six months ended year ended
30 September 2011 30 September 2010 31 March 2011
  £'000  £'000  £'000
--------------------------------------------------------------------------------
Dividend of 1.50p per
share paid on 7 August
2010 Â - Â 454 Â 454
Dividend of 1.50p per
share paid on 28
February 2011 Â - Â - Â 463
Dividend of 1.50p per
share paid on 31 August
2011 Â 480 Â - Â -
------------------------------------------------------
  480  454  917
------------------------------------------------------
In addition to the dividends summarised above, the Board has declared a second
dividend for the year ending 31 March 2012 of 1.50 pence per share to be paid on
29 February 2012 to shareholders on the register on 3 February 2012. This is
expected to amount to approximately £481,000.
6. Basic and diluted return/(loss) per share
+-------------+----------------------+---------------------+---------------------+
| Â | Unaudited | Unaudited | Audited |
| | six months ended | six months ended | year ended |
| | 30 September 2011 | 30 September 2010 | 31 March 2011 |
+-------------+-------+-------+------+-------+-------+-----+-------+-------+-----+
| Â |Revenue|Capital| Total|Revenue|Capital|Total|Revenue|Capital|Total|
+-------------+-------+-------+------+-------+-------+-----+-------+-------+-----+
|Â | Â | Â | Â | Â | Â | Â | Â | Â | Â |
+-------------+-------+-------+------+-------+-------+-----+-------+-------+-----+
|Return/(loss)| | | | | | | | | |
|attributable | | | | | | | | | |
|to equity | | | | | | | | | |
|shares | | | | | | | | | |
|(£'000) | 197| (277)| (80)| 217| 189| 406| 373| 204| 577|
+-------------+-------+-------+------+-------+-------+-----+-------+-------+-----+
|Weighted | | | |
|average | | | |
|shares in | | | |
|issue | Â | Â | Â |
|(excluding | Â | Â | Â |
|treasury | Â | Â | Â |
|shares) | 32,051,434 | 30,320,927 | 30,462,927 |
+-------------+-------+-------+------+----+----+-----------+-------+-------+-----+
|Return/(loss)| | | | | | | | | |
|attributable | | | | | | | | | |
|per | | | | | | | | | |
|Ordinary | | | | | | | | | |
|share | | | | | | | | | |
|(pence) | | | | | | | | | |
|(basic and | | | | | | | | | |
|diluted) | 0.62| (0.87)|(0.25)|0.72|0.62| 1.34| 1.23| 0.67| 1.90|
+-------------+-------+-------+------+----+----+-----------+-------+-------+-----+
There are no convertible instruments, derivatives or contingent share agreements
in issue for Albion Enterprise VCT PLC hence there are no dilution effects to
the return per share. The basic return per share is therefore the same as the
diluted return per share.
The Company's policy is to sell treasury shares at a price greater than the
purchase price hence the net asset value per share on a diluted basis would be
equal to or greater than the basic net asset value per share, depending on the
actual price achieved for selling the treasury shares.
7. Called up share capital
Unaudited Unaudited Audited
30 September 30 September 31 March
2011 2010 2011
 £'000 £'000 £'000
--------------------------------------------------------------------------------
Authorised
50,000,000 Ordinary shares of 50p each
(30 September 2010 and 31 March 2011:
50,000,000) 25,000 25,000 25,000
-----------------------------------
Allotted, called up and fully paid
32,425,893 Ordinary shares of 50p each
(30 September 2010: 30,408,962; 31 March
2011: 31,873,247) 16,213 15,204 15,937
-----------------------------------
Voting rights
32,052,883 shares of 50p each (net of treasury shares) (30 September
2010: 30,321,151; 31 March 2011: 31,599,237).
Under the terms of the Dividend Reinvestment Scheme Circular dated 26 November
2009, the following Ordinary shares of nominal value 50 pence were allotted in
the six months to 30 September 2011:
Net Mid-market
Number of Issue price  Consideration price per share
 shares (pence per  received  on allotment date
Date of allotment  allotted  share) (£'000) (pence per share)
-------------------------------------------------------------------------
31 August 2011 42,409 86.04 35 75.75
During the period from 1 April to 30 September 2011, the Company issued the
following New Ordinary shares of nominal value 50 pence under the Albion VCTs
Linked Top Up Offer:
Net Mid-market
Number of Issue price Consideration price per share
 Shares (pence per  received  on allotment date
Date of allotment  allotted  share) (£'000) (pence per share)
------------------------------------------------------------------------
5 April 2011 470,928 90.67 405 77.25
16 May 2011 39,309 92.30 Â 34 77.25
----------- ---------------
 510,237  439
----------- ---------------
During the period to 30 September 2011, the Company purchased 99,000 Ordinary
shares to be held in treasury at a cost of £77,000, representing 0.3 per cent.
Of its issued share capital as at 1 April 2011. The shares purchased for
treasury were funded from the treasury shares reserve. The total number of
Ordinary shares held in treasury as at 30 September 2011 was 373,010 (30
September 2010: 87,811; 31 March 2011: 274,010) representing 1.2 per cent. of
share capital as at 30 September 2011.
8. Reconciliation of revenue return on ordinary activities before taxation to
net cash flow from operating activities
Unaudited Unaudited Audited
six months ended six months ended year ended
30 September 2011 30 September 2010 31 March 2011
 £'000 £'000 £'000
--------------------------------------------------------------------------------
Revenue return on ordinary
activities before
taxation 257 290 494
Investment management fee
charged to
capital (257) (249) (505)
Movement in accrued amortised
loan stock
interest (23) (74) 79
(Decrease)/increase in
operating debtors (21) 3 (16)
Increase in operating
creditors 175 184 25
--------------------------------------------------
Net cash flow from operating
activities 131 154 77
--------------------------------------------------
9. Analysis of change in cash during the period
Unaudited Unaudited Audited
six months ended six months ended year ended
30 September 2011 30 September 2010 31 March 2011
 £'000 £'000 £'000
-------------------------------------------------------------------------------
Opening cash balances 7,002 12,281 12,281
Net cash flow 337 (2,559) (5,279)
--------------------------------------------------------
Closing cash balances 7,339 9,722 7,002
--------------------------------------------------------
10. Commitments and contingencies
As at 30 September 2001, the Company was committed to making a further
investment of £244,000 in Nelson House Hospital Limited (30 September 2010:
£nil, 31 March 2011: £853,000).
There are no contingent liabilities or guarantees given by the Company as at 30
September 2011 (30 September 2010: £nil, 31 March 2011: £nil).
11. Post balance sheet events
Since 30 September 2011, the Company has completed the following material
transactions:
* Investment of £192,000 in DySIS Medical Limited
On 1 November 2011 the Company announced the launch of the Albion VCTs Linked
Top Up Offer 2011/2012. Â In aggregate, the Albion VCTs will be aiming to raise
up to £15 million across seven of the VCTs managed by Albion Ventures LLP, of
which Albion Enterprise VCT PLC's share will be approximately £2.25 million.
 The maximum amount raised by each of the Albion VCTs will be 10 per cent. of
its issued share capital (over any one 12 months period, including any shares
issued under Dividend Reinvestment Schemes), being the amount that they may
issue under the Prospectus Rules without the publication of a full prospectus.
The proceeds of the Offer will be used to provide further resources to the
Albion VCTs at a time when a number of attractive new investment opportunities
are being seen. Â An Investor Guide and Offer Document have been sent to
shareholders.
12. Related party transactions
The Manager, Albion Ventures LLP, is considered to be a related party by virtue
of the fact that Patrick Reeve, a Director of the Company, is also Managing
Partner of the Manager. The Manager is party to a management agreement from the
Company (details disclosed on page 19 of the Annual Report and Financial
Statements for the year ended 31 March 2011).
During the period, services of a total value of £343,000 (30 September 2010:
£332,000; 31 March 2011: £673,000) were purchased by the Company from Albion
Ventures LLP. At the financial period end, the amount due to Albion Ventures LLP
disclosed as accruals and deferred income was £171,000 (30 September 2010:
£165,000; 31 March 2011: £5,000).
During the period, the Company was charged £10,000 including VAT (30 September
2010: £10,000; 31 March 2011: £21,000) by Albion Ventures LLP in respect of
Patrick Reeve's services as a Director. At the financial period end, the amount
due to Albion Ventures LLP in respect of these services disclosed as accruals
and deferred income was £5,000 (30 September 2010: £5,000; 31 March 2011:
£4,000).
13. Going concern
The Board's assessment of liquidity risk remains unchanged since the last Annual
Report and Financial Statements for the year ended 31 March 2011, and is
detailed on page 44 of those accounts. The Company has significant cash and
liquid resources. The portfolio of investments is diversified in terms of
sector, and the major cash outflows of the Company (namely investments, buy-
backs and dividends) are within the Company's control. Accordingly, after making
reasonable enquiries, the Directors have a reasonable expectation that the
Company has adequate 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 'Going Concern and Liquidity Risk: Guidance for Directors of UK
Companies 2009' published by the Financial Reporting Council.
14. Principal risks and uncertainties
The Board considers that the Company faces the following major risks and
uncertainties:
Investment risk
This is the risk of investment in poor quality assets which reduces the capital
and income returns to shareholders, and negatively impacts on the Company's
reputation. Â By nature, smaller unquoted businesses, such as those that qualify
for venture capital trust purposes, are more fragile than larger, long
established businesses.
To reduce this risk, the Board places reliance upon the skills and expertise of
the Manager and its strong track record for investing in this segment of the
market. Â In addition, the Manager operates a formal and structured investment
process, which includes an Investment Committee, comprising investment
professionals from the Manager and at least one external investment
professional. Â The Manager also invites comments from all non-executive
Directors on investments discussed at the Investment Committee meetings.
 Investments are actively and regularly monitored by the Manager (investment
managers normally sit on investee company boards) and the Board receives
detailed reports on each investment as part of the Manager's report at quarterly
board meetings.
Venture Capital Trust approval risk
The Company's current approval as a venture capital trust allows investors to
take advantage of tax reliefs on initial investment and ongoing tax free capital
gains and dividend income. Â Failure to meet the qualifying requirements could
result in investors losing the tax relief on initial investment and loss of tax
relief on any tax-free income or capital gains received. Â In addition, failure
to meet the qualifying requirements could result in a loss of listing of the
shares.
To reduce this risk, the Board has appointed the Manager, who has a team with
significant experience in venture capital trust management, and is used to
operating within the requirements of the venture capital trust legislation. Â In
addition, to provide further formal reassurance, the Board has appointed
PricewaterhouseCoopers LLP as its taxation advisors. Â PricewaterhouseCoopers LLP
report quarterly to the Board to independently confirm compliance with the
venture capital trust legislation, to highlight areas of risk and to inform on
changes in legislation.
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. Â 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 quoted businesses. Â In addition, the Board and the Manager receive
regular updates on new regulation from the auditor, lawyers and other
professional bodies.
Internal control risk
Failures in key controls, within the Board or within the Manager's business,
could put assets of the Company at risk or result in reduced or inaccurate
information being passed to the Board or to shareholders. Â The Audit Committee
meets with the Manager's internal auditor, Littlejohn LLP, at least once a year,
receiving a report regarding the last formal internal audit performed on the
Manager, and providing the opportunity for the Audit Committee to ask specific
and detailed questions. Â During the year the Audit Committee met with the
partner of Littlejohn LLP responsible for the internal audit of Albion Ventures
LLP to discuss the most recent Internal Audit Report completed on the Manager.
 The Manager has a comprehensive business continuity plan in place in the event
that operational continuity is threatened. Â Further details regarding the
Board's management and review of the Company's internal controls through the
implementation of the Turnbull guidance are detailed on pages 25 and 26 of the
Financial Statements for the year ended 31 March 2011. Â Measures are in place to
mitigate information risk in order to ensure the integrity, availability and
confidentiality of information used within the business.
Reliance upon third parties risk
The Company is reliant upon the services of Albion Ventures LLP for the
provision of investment management and administrative functions. There are
provisions within the management agreement for the change of Manager under
certain circumstances (for more detail, see the management agreement paragraph
on page 19 of the Financial Statements for the year ended 31 March 2011). Â In
addition, the Manager has demonstrated to the Board that there is no undue
reliance placed upon any one individual within Albion Ventures LLP.
Financial risks
By its nature, as a venture capital trust, the Company is exposed to investment
risk (which comprises investment price risk and cash flow interest rate risk),
credit risk and liquidity risk. Â The Company's policies for managing these risks
and its financial instruments are outlined in full in note 19 to the Financial
Statements for the year ended 31 March 2011.
All of the Company's income and expenditure is denominated in sterling and hence
the Company has no foreign currency risk. The Company is financed through equity
and does not have any borrowings. The Company does not use derivative financial
instruments for speculative purposes.
15. 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 September 2011 and 30 September
2010, and is unaudited. The information for the year ended 31 March 2011 does
not constitute statutory accounts within the terms of section 434 of the
Companies Act 2006 and is derived from the statutory accounts for the financial
year, which have been delivered to the Registrar of Companies. The auditors
reported on these accounts; their reports were unqualified and did not contain
statements under s498 (2) or (3) of the Companies Act 2006.
16. 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-ventures.co.uk under the 'Our Funds' section.
Pie Charts 30 September 2011:
http://hugin.info/141807/R/1566680/486539.pdf
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Albion Enterprise VCT PLC via Thomson Reuters ONE
[HUG#1566680]
Wednesday, 15th May 2024
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