Half-yearly report
Half-yearly report
Albion Venture Capital Trust PLC
As required by the UK Listing Authority's Disclosure and Transparency
Rule 4.2, Albion Venture Capital Trust PLC today makes public its
information relating to the Half-yearly Financial Report for the six
months to 30 September 2009. This announcement was approved by the
Board of Directors on 24 November 2009. Please click on the
following link to view the full Half-yearly Financial Report (which
is unaudited) for the period to 30 September 2009, which will shortly
be sent to shareholders. The information contained in this link
includes information as required by the Disclosure and Transparency
Rules, including Rule 4.2.
http://hugin.info/141809/R/1356733/329961.pdf
Alternatively you may view the Half-yearly Financial Report at:
www.albion-ventures.co.uk by clicking on the 'Our Funds' section.
Investment objectives
Albion Venture Capital Trust PLC (the "Company") is a venture capital
trust which raised a total of £39.7 million through an issue of
Ordinary Shares in the spring of 1996 and through an issue of C
Shares in the following year. The C Shares merged with the Ordinary
Shares in 2001. The Company offers tax-paying investors substantial
tax benefits at the time of investment, on payment of dividends and
on the ultimate disposal of the investment. Its investment strategy
is to minimise the risk to investors whilst maintaining an attractive
yield. This is achieved as follows:
* qualifying unquoted investments are predominantly in
specially-formed companies which provide a high level of asset
backing for the capital value of the investment;
* Albion Venture Capital Trust PLC invests alongside selected
partners with proven experience in the sectors concerned;
* investments are normally structured as a mixture of equity and
loan stock. The loan stock represents the majority of the finance
provided and is secured on the assets of the investee company.
Funds managed or advised by Albion Ventures LLP typically own 50
per cent. of the equity of the investee company;
* other than the loan stock issued to funds managed or advised by
Albion Ventures LLP, investee companies do not normally have
external borrowings; and
* a clear strategy for the realisation of each qualifying unquoted
investment within five years or shortly thereafter is identified
from the outset.
Financial calendar
Record date for second dividend 4 December 2009
Payment date for second dividend 6 January 2010
Financial year end 31 March 2010
Directors David Watkins MBA (Harvard), Chairman (US citizen)
J M B L Kerr ACMA
J G T Thornton MBA, FCA
J Warren ACCA
Financial highlights
Unaudited
Unaudited six six Audited year
months ended months ended ended
30 September 30 September 31 March
2009 2008 2009
(pence per (pence per (pence per
share) share) share)
Net asset value per Ordinary
share 81.90 100.00 85.30
Dividends paid per Ordinary
share 2.50 5.00 10.00
Revenue return per Ordinary
share 1.13 2.20 3.30
Capital return per Ordinary
share (2.03) (7.20) (18.30)
Ordinary
Total shareholder net asset value return to shares C shares
30 (pence per (pence per
September 2009 share) share)
Total dividends paid during
the year ended: 31 March 1997 2.00 -
31 March 1998 5.20 2.00
31 March 1999 11.05 8.75
31 March 2000 3.00 2.70
31 March 2001 8.55 4.80
31 March 2002 7.60 7.60
31 March 2003 7.70 7.70
31 March 2004 8.20 8.20
31 March 2005 9.75 9.75
31 March 2006 11.75 11.75
31 March 2007 10.00 10.00
31 March 2008 10.00 10.00
31 March 2009 10.00 10.00
Total dividends paid for the 30 September
six months to : 2009 2.50 2.50
Total dividends paid to 30 September 2009 107.30 95.75
Net asset value as at 30 September 2009 81.90 81.90
Total shareholder net asset value return to
30 September 2009 189.20 177.65
In addition to the dividends summarised above, the Board has declared
a second dividend for the year to 31 March 2010, of 2.50 pence per
share to be paid on 6 January 2010 to shareholders on the register as
at 4 December 2009.
Interim management report
Introduction
The results for Albion Venture Capital Trust PLC for the six months
to 30 September 2009 show a small negative total return of 0.90 pence
(taking the Net Asset Value to 81.90 pence per share after the
payment of 2.50 pence per share dividend). Overall, the investment
portfolio is proving resilient in the face of a continued subdued UK
economy and the improved total return performance of the portfolio
over the comparative period in a continuing difficult economic
climate reflects the maturity of the portfolio and the fact that
provisions have been taken in prior periods.
Investment performance and progress
In the hotel sector, The Crown Hotel Harrogate and The Bell at
Sandwich are both showing growth over previous years and an increase
in profitability. Meanwhile the Express by Holiday Inn at Stansted
Airport, whilst continuing to see a decline in revenues in line with
air traffic at Stansted Airport, remains profitable and able to
continue the process of repaying the loan stock due to the Company.
Work progresses on the refurbishment and enlargement of our hotel at
Stanwell, between Terminals 4 and 5 at London Heathrow Airport, and
the fifty-four bed hotel is due to open next Spring.
Our portfolio of cinemas has remained stable and profitable during
the recession with weakness in some units being outweighed by strong
performance in others. Our portfolio of health and fitness clubs, in
the main continues to show a growth in membership and an increase in
profitability, the exception being River Bourne Health Club Limited
which was placed into administration in October 2009. Out of the
total cost of £70,000 the Company will have received back in capital
and interest approximately £35,000. Following a reorganisation of
some of our pub investments, the portfolio as a whole is performing
well and generating profits. This has been further helped by the
investment in Geronimo Inns and the resulting purchase of four
landmark freehold Central London pubs.
The portfolio of residential development companies continues to be
wound down, with all of the units within Prime VCT Limited's final
development in Bristol being sold during this period. The only
company with units unsold is now G&K Smart Developments VCT Limited
which owns three sites in Yorkshire. We would hope that these will be
disposed of during the course of the next twelve to eighteen months.
The Manager continues to review a number of opportunities in the
healthcare sector, and this is expected to be the main area for new
investments over the next twelve months.
During the six months to 30 September 2009, £0.65 million was
invested in two existing companies and two new companies. Meanwhile
£1.43 million of loan stock was repaid to the Company. Cash for
investments has increased to £5.34 million and is held as cash
deposits by the Company totalling £2.82 million and £1.48 million as
a floating rate note. A further £1.04 million is held on deposit in
residential property companies in the portfolio.
Split of portfolio valuation by sector as at 30 September 2009
http://hugin.info/141809/R/1356733/329800.pdf
Related party transactions
Details of material related party transactions for the reporting
period can be found in note 15 to this Half-yearly Financial Report.
Discount and 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, including the maintenance of sufficient resources
for investment in existing and new investee companies, and the
continued payment of dividends to shareholders. Accordingly, the
Company will continue to limit the sums available for share buy-backs
and for the period to 31 March 2010, as with the period to 30
September 2009, this will amount to no more than £150,000. This
compares to a total value bought in for the previous six months of
£70,000. The discount to net asset value with which the shares trade
has now narrowed to 24 per cent. per share and we would hope that
this discount would continue to tighten.
Going concern
The Board's assessment of liquidity risk remains unchanged, and is
detailed on page 29 of the Annual Report & Financial Statements for
the year ended 31 March 2009. The Company has significant cash and
liquid resources. The portfolio of investments is well 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.
Risks and uncertainties
The key risks affecting the Company remain the recession in the UK
and the uncertain outlook for the world economy in general. Because
it is our policy that investee companies do not have external gearing
our portfolio remains relatively well equipped to cope with this
climate. Other risks and uncertainties remain unchanged, and are as
detailed on page 21 of the Annual Report & Financial Statements for
the year ended 31 March 2009.
Outlook
Looking forwards, the key tasks are to improve the income generation
of the existing portfolio and to use the Company's cash resources to
take advantage of the value opportunities currently available. In
particular, we expect to make one or more investments within the
healthcare sector in due course.
Results and dividends
As at 30 September 2009 the net asset value of the Company was £28.6
million or 81.90 pence per share compared to £29.9 million or 85.30
pence per share at 31 March 2009. The revenue return before taxation
was £454,000 compared to £1.05 million for the six months to 30
September 2008. The decline was partly the result of the current low
interest rates available on cash deposits and partly due to the
cessation of income from our residual residential property
development companies. The Company will pay a second dividend of 2.50
pence per share on 6 January 2010 to shareholders on the register as
at 4 December 2009.
D J Watkins
Chairman
24 November 2009
Responsibility statement
The Directors, as listed at the beginning of this announcement, 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 period to
30 September 2009, 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) 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 give 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 2009 and comply with UK GAAP and Companies Act 1985 and
2006 and;
(d) 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 2009.
This Half-yearly Financial Report has not been audited or reviewed by
the auditors.
By order of the Board
D J Watkins
Chairman
24 November 2009
Portfolio of investments
The following is a summary of qualifying fixed asset investments as
at 30 September 2009.
+-------------------------------------------------------------------------+
| | | % voting| | Cumulative| |
| | |rights of|Investment|movement in| Total|
|Qualifying fixed | | AVL*|to date at| carrying/| carrying/|
|asset |% voting| managed| cost| fair value|fair value|
|investments | rights|companies| £'000| £'000| £'000|
|--------------------+--------+---------+----------+-----------+----------|
|Hotels | | | | | |
|--------------------+--------+---------+----------+-----------+----------|
|Kew Green VCT | | | | | |
|(Stansted) | | | | | |
|Limited | 28.2| 50.0| 4,609| 2,003| 6,612|
|--------------------+--------+---------+----------+-----------+----------|
|The Crown Hotel | | | | | |
|Harrogate | | | | | |
|Limited | 15.6| 50.0| 3,100| (913)| 2,187|
|--------------------+--------+---------+----------+-----------+----------|
|The Bear Hungerford | | | | | |
|Limited | 26.1| 50.0| 2,088| (571)| 1,517|
|--------------------+--------+---------+----------+-----------+----------|
|The Stanwell Hotel | | | | | |
|Limited | 18.9| 50.0| 2,000| (628)| 1,372|
|--------------------+--------+---------+----------+-----------+----------|
|The Place Sandwich | | | | | |
|VCT | | | | | |
|Limited | 25.0| 50.0| 1,464| (445)| 1,019|
|--------------------+--------+---------+----------+-----------+----------|
|Total investment in | | | | | |
|the | | | | | |
|hotel sector | | | 13,261| (554)| 12,707|
|-------------------------------------------------------------------------|
| |
|-------------------------------------------------------------------------|
|Pubs | | | | | |
|--------------------+--------+---------+----------+-----------+----------|
|The Charnwood Pub | | | | | |
|Company | | | | | |
|Limited | 8.8| 50.0| 3,086| (1,644)| 1,442|
|--------------------+--------+---------+----------+-----------+----------|
|Bravo Inns II | | | | | |
|Limited | 4.7| 49.6| 505| (17)| 488|
|--------------------+--------+---------+----------+-----------+----------|
|Geronimo Pub VCT I | | | | | |
|Limited | 3.0| 50.0| 270| 4| 274|
|--------------------+--------+---------+----------+-----------+----------|
|Geronimo Pub VCT II | | | | | |
|Limited | 3.0| 50.0| 270| 4| 274|
|--------------------+--------+---------+----------+-----------+----------|
|Bravo Inns Limited | 5.1| 50.0| 450| (209)| 241|
|--------------------+--------+---------+----------+-----------+----------|
|The Dunedin Pub | | | | | |
|Company | | | | | |
|VCT Limited | 4.3| 50.0| 220| (110)| 110|
|--------------------+--------+---------+----------+-----------+----------|
|GB Pub Company VCT | | | | | |
|Limited | 5.9| 50.0| 234| (147)| 87|
|--------------------+--------+---------+----------+-----------+----------|
|Total investment in | | | | | |
|the | | | | | |
|pub sector | | | 5,035| (2,119)| 2,916|
|-------------------------------------------------------------------------|
| |
|-------------------------------------------------------------------------|
|Cinemas and other | | | | | |
|leisure | | | | | |
|--------------------+--------+---------+----------+-----------+----------|
|City Screen | | | | | |
|(Cambridge) | | | | | |
|Limited | 50.0| 50.0| 1,110| 464| 1,574|
|--------------------+--------+---------+----------+-----------+----------|
|CS (Greenwich) | | | | | |
|Limited | 18.3| 50.0| 1,005| (184)| 821|
|--------------------+--------+---------+----------+-----------+----------|
|CS (Brixton) Limited| 6.4| 50.0| 250| 28| 278|
|--------------------+--------+---------+----------+-----------+----------|
|City Screen | | | | | |
|(Liverpool) | | | | | |
|Limited | 18.1| 50.0| 200| (61)| 139|
|--------------------+--------+---------+----------+-----------+----------|
|Premier Leisure | | | | | |
|(Suffolk) | | | | | |
|Limited | 4.7| 45.0| 380| (282)| 98|
|--------------------+--------+---------+----------+-----------+----------|
|CS (Exeter) Limited | 6.6| 50.0| 100| (3)| 97|
|--------------------+--------+---------+----------+-----------+----------|
|CS (Norwich) Limited| 3.1| 50.0| 50| (16)| 34|
|--------------------+--------+---------+----------+-----------+----------|
|Total investment in | | | | | |
|the | | | | | |
|cinema and other | | | | | |
|leisure | | | | | |
|sector | | | 3,095| (54)| 3,041|
|-------------------------------------------------------------------------|
| |
|-------------------------------------------------------------------------|
|Health and fitness | | | | | |
|clubs | | | | | |
|--------------------+--------+---------+----------+-----------+----------|
|The Weybridge Club | | | | | |
|Limited | 8.2| 50.0| 1,330| (131)| 1,199|
|--------------------+--------+---------+----------+-----------+----------|
|Kensington Health | | | | | |
|Clubs | | | | | |
|Limited | 5.1| 50.0| 1,124| (483)| 641|
|--------------------+--------+---------+----------+-----------+----------|
|Tower Bridge Health | | | | | |
|Clubs | | | | | |
|Limited | 5.5| 50.0| 344| (32)| 312|
|--------------------+--------+---------+----------+-----------+----------|
|River Bourne Health | | | | | |
|Club | | | | | |
|Limited | 3.5| 50.0| 70| (70)| -|
|--------------------+--------+---------+----------+-----------+----------|
|Total investment in | | | | | |
|the | | | | | |
|health | | | | | |
|and fitness club | | | | | |
|sector | | | 2,868| (716)| 2,152|
|-------------------------------------------------------------------------|
| |
|-------------------------------------------------------------------------|
|Residential property| | | | | |
|development | | | | | |
|--------------------+--------+---------+----------+-----------+----------|
|G&K Smart | | | | | |
|Developments | | | | | |
|VCT Limited | 42.9| 50.0| 3,000| (857)| 2,143|
|--------------------+--------+---------+----------+-----------+----------|
|Chase Midland VCT | | | | | |
|Limited | 38.1| 50.0| 720| (42)| 678|
|--------------------+--------+---------+----------+-----------+----------|
|Prime VCT Limited | 50.0| 50.0| 990| (630)| 360|
|--------------------+--------+---------+----------+-----------+----------|
|Total investment in | | | | | |
|the | | | | | |
|residential property| | | | | |
|development sector | | | 4,710| (1,529)| 3,181|
|-------------------------------------------------------------------------|
| |
|-------------------------------------------------------------------------|
|Total qualifying | | | | | |
|fixed asset | | | | | |
|investments | | | 28,969| (4,972)| 23,997|
+-------------------------------------------------------------------------+
The following is a summary of non-qualifying fixed and current asset
investments as at 30 September 2009.
+----------------------------------------------------------------------------+
| | | % voting| | Cumulative| |
| | |rights of| Investment|movement in| Total|
|Non-qualifying fixed | % | AVL*| to| carrying/| carrying/|
|asset |voting| managed|date at cost| fair value|fair value|
| investments |rights|companies| £'000| £'000| £'000|
|-----------------------+------+---------+------------+-----------+----------|
|Hotels | | | | | |
|-----------------------+------+---------+------------+-----------+----------|
|The Place Sandwich VCT | | | | | |
|Limited | -| -| 175| 235| 410|
|-----------------------+------+---------+------------+-----------+----------|
|Total investment in the| | | | | |
|hotel sector | | | 175| 235| 410|
|-----------------------+------+---------+------------+-----------+----------|
| | | | | | |
|-----------------------+------+---------+------------+-----------+----------|
|Healthcare | | | | | |
|-----------------------+------+---------+------------+-----------+----------|
|Taunton Hospital | | | | | |
|Limited | -| 50.0| 313| -| 313|
|-----------------------+------+---------+------------+-----------+----------|
|Total investment in the| | | | | |
|healthcare sector | | | 313| -| 313|
|-----------------------+------+---------+------------+-----------+----------|
| | | | | | |
|-----------------------+------+---------+------------+-----------+----------|
|Total non-qualifying | | | | | |
|fixed | | | | | |
|asset investments | | | 488| 235| 723|
+----------------------------------------------------------------------------+
*AVL is Albion Ventures LLP
+-------------------------------------------------------------------+
| | | | |
| | Investment | | Total |
| Non-qualifying | to | Cumulative | carrying/ |
| current | date at cost | movement in | fair value |
| asset investment | £'000 | carrying/fair | £'000 |
| | | value £'000 | |
|------------------+--------------+--------------------+------------|
| Nationwide | | | |
| floating rate | | | |
| note 07/06/2010 | 1,500 | (19) | 1,481 |
+-------------------------------------------------------------------+
Summary income statement
+-----------------------------------------------------------------------------------------------------------------+
| | | Unaudited six months | Unaudited six months | Audited year |
| | | ended | ended | ended |
| | | 30 September 2009 | 30 September 2008 | 31 March 2009 |
|-----------------+------+----------------------------+-----------------------------+-----------------------------|
| | | Revenue| Capital| Total| Revenue| Capital| Total| Revenue| Capital| Total|
| | Note| £'000| £'000| £'000| £'000| £'000| £'000| £'000| £'000| £'000|
|-----------------+------+---------+---------+--------+---------+---------+---------+---------+---------+---------|
|Losses on | | | | | | | | | | |
|investments | 3| -| (571)| (571)| -| (2,584)| (2,584)| -| (6,483)| (6,483)|
|-----------------+------+---------+---------+--------+---------+---------+---------+---------+---------+---------|
|Investment | | | | | | | | | | |
|income | 4| 633| -| 633| 1,148| -| 1,148| 1,761| -| 1,761|
|-----------------+------+---------+---------+--------+---------+---------+---------+---------+---------+---------|
|Investment | | | | | | | | | | |
|management | | | | | | | | | | |
|fees | | (73)| (219)| (292)| (106)| (332)| (438)| (183)| (549)| (732)|
|-----------------+------+---------+---------+--------+---------+---------+---------+---------+---------+---------|
|Recovery of | | | | | | | | | | |
|VAT | 6| 7| 21| 28| 121| 375| 496| 180| 540| 720|
|-----------------+------+---------+---------+--------+---------+---------+---------+---------+---------+---------|
|Other | | | | | | | | | | |
|expenses | | (113)| -| (113)| (114)| -| (114)| (249)| -| (249)|
|-----------------+------+---------+---------+--------+---------+---------+---------+---------+---------+---------|
|Return/(loss) | | | | | | | | | | |
|on ordinary | | | | | | | | | | |
|activities | | | | | | | | | | |
|before tax | | 454| (769)| (315)| 1,049| (2,541)| (1,492)| 1,509| (6,492)| (4,983)|
|-----------------+------+---------+---------+--------+---------+---------+---------+---------+---------+---------|
|Tax | | | | | | | | | | |
|(charge)/credit | | | | | | | | | | |
|on ordinary | | | | | | | | | | |
|activities | | (58)| 55| (3)| (282)| (13)| (295)| (329)| 2| (327)|
|-----------------+------+---------+---------+--------+---------+---------+---------+---------+---------+---------|
|Return/(loss) | | | | | | | | | | |
|attributable | | | | | | | | | | |
|to | | | | | | | | | | |
|shareholders | | 396| (714)| (318)| 767| (2,554)| (1,787)| 1,180| (6,490)| (5,310)|
|-----------------+------+---------+---------+--------+---------+---------+---------+---------+---------+---------|
|Basic and | | | | | | | | | | |
|diluted | | | | | | | | | | |
|return/(loss) | | | | | | | | | | |
|per share | | | | | | | | | | |
|(pence)* | 7| 1.13| (2.03)| (0.90)| 2.20| (7.20)| (5.00)| 3.30| (18.30)| (15.00)|
+-----------------------------------------------------------------------------------------------------------------+
*excluding treasury shares
Comparative figures have been extracted from the unaudited
Half-yearly Financial Report for the six months ended 30 September
2008 and the audited statutory accounts for the year ended 31 March
2009.
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
+-------------------------------------------------------------------+
| | | | Unaudited | Audited |
| | | Unaudited 30 | 30 | 31 |
| | | September | September | March |
| | | 2009 | 2008 | 2009 |
| | Note | £'000 | £'000 | £'000 |
|-----------------------+------+--------------+-----------+---------|
| Fixed asset | | | | |
| investments | | | | |
|-----------------------+------+--------------+-----------+---------|
| Qualifying | | 23,997 | 29,622 | 25,340 |
|-----------------------+------+--------------+-----------+---------|
| Non-qualifying | | 723 | - | 675 |
|-----------------------+------+--------------+-----------+---------|
| Total fixed asset | | | | |
| investments | 8 | 24,720 | 29,622 | 26,015 |
|-----------------------+------+--------------+-----------+---------|
| | | | | |
|-----------------------+------+--------------+-----------+---------|
| Current assets | | | | |
|-----------------------+------+--------------+-----------+---------|
| Trade and other | | | | |
| debtors | | 1 | 590 | 199 |
|-----------------------+------+--------------+-----------+---------|
| Current asset | | | | |
| investments | | 1,481 | 1,476 | 1,463 |
|-----------------------+------+--------------+-----------+---------|
| Cash at bank and in | | | | |
| hand | 12 | 2,821 | 4,202 | 2,498 |
|-----------------------+------+--------------+-----------+---------|
| | | 4,303 | 6,268 | 4,160 |
|-----------------------+------+--------------+-----------+---------|
| | | | | |
|-----------------------+------+--------------+-----------+---------|
| | | | | |
|-----------------------+------+--------------+-----------+---------|
| Creditors: amounts | | | | |
| falling | | | | |
| due within one year | | (386) | (592) | (305) |
|-----------------------+------+--------------+-----------+---------|
| Net current assets | | 3,917 | 5,676 | 3,855 |
|-----------------------+------+--------------+-----------+---------|
| Net assets | | 28,637 | 35,298 | 29,870 |
|-----------------------+------+--------------+-----------+---------|
| | | | | |
|-----------------------+------+--------------+-----------+---------|
| Capital and reserves | | | | |
|-----------------------+------+--------------+-----------+---------|
| Called-up share | | | | |
| capital | 9 | 18,025 | 17,964 | 18,002 |
|-----------------------+------+--------------+-----------+---------|
| Share premium | | 62 | 23 | 53 |
|-----------------------+------+--------------+-----------+---------|
| Capital redemption | | | | |
| reserve | | 1,914 | 1,914 | 1,914 |
|-----------------------+------+--------------+-----------+---------|
| Unrealised capital | | | | |
| reserve | | (4,880) | (410) | (4,309) |
|-----------------------+------+--------------+-----------+---------|
| Special reserve | | 14,110 | 14,110 | 14,110 |
|-----------------------+------+--------------+-----------+---------|
| Own treasury shares | | | | |
| reserve | | (893) | (608) | (823) |
|-----------------------+------+--------------+-----------+---------|
| Realised capital | | | | |
| reserve | | (150) | 200 | (7) |
|-----------------------+------+--------------+-----------+---------|
| Revenue reserve | | 449 | 2,105 | 930 |
|-----------------------+------+--------------+-----------+---------|
| Total equity | | | | |
| shareholders' | | | | |
| funds | | 28,637 | 35,298 | 29,870 |
|-----------------------+------+--------------+-----------+---------|
| Net asset value per | | | | |
| share | | | | |
| (pence)* | | 81.90 | 100.00 | 85.30 |
+-------------------------------------------------------------------+
*excluding treasury shares
Comparative figures have been extracted from the unaudited
Half-yearly Financial Report for the six months ended 30 September
2008 and the audited statutory accounts for the year ended 31 March
2009.
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 2009 and were signed on its
behalf by
D J Watkins
Chairman
Summary reconciliation of movement in shareholders' funds
+-------------------------------------------------------------------------------------------------------------------+
| |Called-| | | | | Own| | | |
| | up| | Capital| Unrealised| | treasury| Realised| | |
| | share| Share| redemption| capital| Special| shares| capital| Revenue| |
| |capital|premium| reserve| reserve*|reserve*| reserve*| reserve*|reserve*| Total|
|------------------------------+-------+-------+-----------+-----------+--------+---------+---------+--------+------|
| | £'000| £'000| £'000| £'000| £'000| £'000| £'000| £'000| £'000|
|------------------------------+-------+-------+-----------+-----------+--------+---------+---------+--------+------|
|As at 1 April 2009 (audited) | 18,002| 53| 1,914| (4,309)| 14,110| (823)| (7)| 930|29,870|
|------------------------------+-------+-------+-----------+-----------+--------+---------+---------+--------+------|
|Movement in unrealised | | | | | | | | | |
|appreciation | -| -| -| (571)| -| -| -| -| (571)|
|------------------------------+-------+-------+-----------+-----------+--------+---------+---------+--------+------|
|Capitalised investment | | | | | | | | | |
|management fee | -| -| -| -| -| -| (219)| -| (219)|
|------------------------------+-------+-------+-----------+-----------+--------+---------+---------+--------+------|
|Capitalised tax | -| -| -| -| -| -| 55| -| 55|
|------------------------------+-------+-------+-----------+-----------+--------+---------+---------+--------+------|
|Recoverable VAT capitalised | -| -| -| -| -| -| 21| -| 21|
|------------------------------+-------+-------+-----------+-----------+--------+---------+---------+--------+------|
|Purchase of own treasury | | | | | | | | | |
|shares | -| -| -| -| -| (70)| -| -| (70)|
|------------------------------+-------+-------+-----------+-----------+--------+---------+---------+--------+------|
|Issue of equity (net of costs)| 23| 9| -| -| -| -| -| -| 32|
|------------------------------+-------+-------+-----------+-----------+--------+---------+---------+--------+------|
|Revenue return attributable to| | | | | | | | | |
|shareholders | -| -| -| -| -| -| -| 396| 396|
|------------------------------+-------+-------+-----------+-----------+--------+---------+---------+--------+------|
|Dividends | | | | | | | | | |
|paid | -| -| -| -| -| -| -| (877)| (877)|
|------------------------------+-------+-------+-----------+-----------+--------+---------+---------+--------+------|
|As at 30 September 2009 | | | | | | | | | |
|(unaudited) | 18,025| 62| 1,914| (4,880)| 14,110| (893)| (150)| 449|28,637|
+-------------------------------------------------------------------------------------------------------------------+
+------------------------------------------------------------------------------------------------------------------+
| |Called-| | | | | Own| | | |
| | up| | Capital|Unrealised| |treasury|Realised| | |
| | share| Share|redemption| capital| Special| shares| capital| Revenue| |
| |capital|premium| reserve| reserve*|reserve*|reserve*|reserve*|reserve*| Total|
|--------------------------------+-------+-------+----------+----------+--------+--------+--------+--------+-------|
| | £'000| £'000| £'000| £'000| £'000| £'000| £'000| £'000| £'000|
|--------------------------------+-------+-------+----------+----------+--------+--------+--------+--------+-------|
|As at 1 April 2008 (audited) | 17,939| -| 1,914| 2,174| 14,110| (252)| 1,952| 1,338| 39,175|
|--------------------------------+-------+-------+----------+----------+--------+--------+--------+--------+-------|
|Movement in unrealised | | | | | | | | | |
|appreciation | -| -| -| (2,584)| -| -| -| -|(2,584)|
|--------------------------------+-------+-------+----------+----------+--------+--------+--------+--------+-------|
|Capitalised investment | | | | | | | | | |
|management fee | -| -| -| -| -| -| (332)| -| (332)|
|--------------------------------+-------+-------+----------+----------+--------+--------+--------+--------+-------|
|Capitalised tax | -| -| -| -| -| -| (13)| -| (13)|
|--------------------------------+-------+-------+----------+----------+--------+--------+--------+--------+-------|
|Recoverable VAT capitalised | -| -| -| -| -| -| 375| -| 375|
|--------------------------------+-------+-------+----------+----------+--------+--------+--------+--------+-------|
|Purchase of own treasury shares | -| -| -| -| -| (356)| -| -| (356)|
|--------------------------------+-------+-------+----------+----------+--------+--------+--------+--------+-------|
|Issue of equity (net of costs) | 25| 23| -| -| -| -| -| -| 48|
|--------------------------------+-------+-------+----------+----------+--------+--------+--------+--------+-------|
|Revenue return attributable to | | | | | | | | | |
|shareholders | -| -| -| -| -| -| -| 767| 767|
|--------------------------------+-------+-------+----------+----------+--------+--------+--------+--------+-------|
|Dividends paid | -| -| -| -| -| -| (1,782)| -|(1,782)|
|--------------------------------+-------+-------+----------+----------+--------+--------+--------+--------+-------|
|As at 30 September 2008 | | | | | | | | | |
|(unaudited) | 17,964| 23| 1,914| (410)| 14,110| (608)| 200| 2,105| 35,298|
+------------------------------------------------------------------------------------------------------------------+
+------------------------------------------------------------------------------------------------------------------+
| |Called-| | | | | Own| | | |
| | up| | Capital|Unrealised| |treasury|Realised| | |
| | share| Share|redemption| capital| Special| shares| capital| Revenue| |
| |capital|premium| reserve| reserve*|reserve*|reserve*|reserve*|reserve*| Total|
|--------------------------------+-------+-------+----------+----------+--------+--------+--------+--------+-------|
| | £'000| £'000| £'000| £'000| £'000| £'000| £'000| £'000| £'000|
|--------------------------------+-------+-------+----------+----------+--------+--------+--------+--------+-------|
|As at 1 April 2008 (audited) | 17,939| -| 1,914| 2,174| 14,110| (252)| 1,952| 1,338| 39,175|
|--------------------------------+-------+-------+----------+----------+--------+--------+--------+--------+-------|
|Movement in unrealised | | | | | | | | | |
|appreciation | -| -| -| (6,483)| -| -| -| -|(6,483)|
|--------------------------------+-------+-------+----------+----------+--------+--------+--------+--------+-------|
|Capitalised investment | | | | | | | | | |
|management fee | -| -| -| -| -| -| (549)| -| (549)|
|--------------------------------+-------+-------+----------+----------+--------+--------+--------+--------+-------|
|Capitalised tax | -| -| -| -| -| -| 2| -| 2|
|--------------------------------+-------+-------+----------+----------+--------+--------+--------+--------+-------|
|Recoverable VAT capitalised | -| -| -| -| -| -| 540| -| 540|
|--------------------------------+-------+-------+----------+----------+--------+--------+--------+--------+-------|
|Purchase of own treasury shares | -| -| -| -| -| (571)| -| -| (571)|
|--------------------------------+-------+-------+----------+----------+--------+--------+--------+--------+-------|
|Issue of equity (net of costs) | 63| 53| -| -| -| -| -| -| 116|
|--------------------------------+-------+-------+----------+----------+--------+--------+--------+--------+-------|
|Revenue return attributable to | | | | | | | | | |
|shareholders | -| -| -| -| -| -| -| 1,180| 1,180|
|--------------------------------+-------+-------+----------+----------+--------+--------+--------+--------+-------|
|Dividends paid | -| -| -| -| -| -| (1,952)| (1,588)|(3,540)|
|--------------------------------+-------+-------+----------+----------+--------+--------+--------+--------+-------|
|As at 31 March 2009 (audited) | 18,002| 53| 1,914| (4,309)| 14,110| (823)| (7)| 930| 29,870|
+------------------------------------------------------------------------------------------------------------------+
*Included within these reserves is an amount of £8,636,000 (30
September 2008: £15,397,000: 31 March 2009: £9,901,000) which is
considered distributable. The Special reserve has been treated as
distributable in determining the amounts available for distribution.
Summary cash flow statement
+-------------------------------------------------------------------+
| | | Unaudited | Unaudited | |
| | | six | six | Audited |
| | | months | months | year |
| | | ended 30 | ended 30 | ended 31 |
| | | September | September | March |
| | | 2009 | 2008 | 2009 |
| | Note | £'000 | £'000 | £'000 |
|-------------------------+------+-----------+-----------+----------|
| Operating activities | | | | |
|-------------------------+------+-----------+-----------+----------|
| Investment income | | | | |
| received | | 548 | 1,077 | 1,648 |
|-------------------------+------+-----------+-----------+----------|
| Deposit interest | | | | |
| received | | 24 | 111 | 235 |
|-------------------------+------+-----------+-----------+----------|
| Dividend income | | | | |
| received | | 43 | - | - |
|-------------------------+------+-----------+-----------+----------|
| Other income received | | - | 56 | 88 |
|-------------------------+------+-----------+-----------+----------|
| Investment management | | | | |
| fees paid (net of VAT | | | | |
| refund) | | (102) | (460) | (251) |
|-------------------------+------+-----------+-----------+----------|
| Administrative expenses | | | | |
| paid | | (145) | (137) | (262) |
|-------------------------+------+-----------+-----------+----------|
| Net cash inflow from | | | | |
| operating activities | 11 | 368 | 647 | 1,458 |
|-------------------------+------+-----------+-----------+----------|
| | | | | |
|-------------------------+------+-----------+-----------+----------|
| Taxation | | | | |
|-------------------------+------+-----------+-----------+----------|
| UK corporation tax | | | | |
| received/(paid) | | 81 | (15) | (271) |
|-------------------------+------+-----------+-----------+----------|
| VAT paid | | - | (1) | - |
|-------------------------+------+-----------+-----------+----------|
| | | | | |
|-------------------------+------+-----------+-----------+----------|
| Capital expenditure and | | | | |
| financial investments | | | | |
|-------------------------+------+-----------+-----------+----------|
| Purchase of investments | | (650) | (2,093) | (2,503) |
|-------------------------+------+-----------+-----------+----------|
| Disposal of investments | | 1,431 | 2,340 | 2,394 |
|-------------------------+------+-----------+-----------+----------|
| Net cash | | | | |
| inflow/(outflow) from | | | | |
| investing activities | | 781 | 247 | (109) |
|-------------------------+------+-----------+-----------+----------|
| | | | | |
|-------------------------+------+-----------+-----------+----------|
| Equity dividends paid | | | | |
|-------------------------+------+-----------+-----------+----------|
| Dividends paid | 5 | (877) | (1,782) | (3,540) |
|-------------------------+------+-----------+-----------+----------|
| Net cash | | | | |
| inflow/(outflow) before | | | | |
| financing | | 353 | (904) | (2,462) |
|-------------------------+------+-----------+-----------+----------|
| | | | | |
|-------------------------+------+-----------+-----------+----------|
| Financing | | | | |
|-------------------------+------+-----------+-----------+----------|
| Purchase of own shares | | (70) | (356) | (571) |
|-------------------------+------+-----------+-----------+----------|
| Equity issued | | 40 | 53 | 122 |
|-------------------------+------+-----------+-----------+----------|
| Net cash outflow from | | | | |
| financing | | (30) | (303) | (449) |
|-------------------------+------+-----------+-----------+----------|
| Cash inflow/(outflow) | | | | |
| in the period | 12 | 323 | (1,207) | (2,911) |
+-------------------------------------------------------------------+
Notes to the summarised financial statements for the six months ended
30 September 2009
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
Unquoted equity investments
In accordance with FRS 26 "Financial Instruments Recognition and
Measurement", unquoted equity investments are designated as fair
value through profit or loss ("FVTPL"). Unquoted investments' fair
value is determined by the Directors in accordance with the
International Private Equity and Venture Capital Valuation Guidelines
(IPEVCV guidelines).
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.
Unquoted loan stock
Unquoted loan stock is classified as loans and receivables in
accordance with FRS 26 and carried at amortised cost using the
Effective Interest Rate method ("EIR") less impairment. 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, fully performing, renegotiated, past due
and 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 effective interest
rate.
Warrants, convertibles and unquoted equity derived instruments
Warrants, convertibles 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.
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.
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.
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 investee 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 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.
Unquoted loan stock income
Fixed returns on non-equity shares and debt securities are recognised
on a time apportionment basis using the 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 accrual 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 and in line with the Board's expectation
that over the long term 75 per cent. of the Company's investment
returns will be in the form of capital gains; and
* expenses which are incidental to the purchase or disposal of an
investment are charged through the Realised capital reserve.
Performance incentive fee
In the event that a performance incentive fee crystallises, the fee
will be allocated between Revenue and Realised capital reserves (net
of corporation tax) 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 specific nature of taxation of venture capital trusts means that
it is unlikely that any deferred tax will arise. The Directors have
considered the requirements of FRS 19 and do not believe that any
provision should be made.
Reserves
Share premium
This reserve accounts for the difference between the price paid for
shares and the nominal value of the shares, less issue costs and
transfers to the Special reserve.
Capital redemption reserve
This reserve accounts for amounts by which the issued share capital
is diminished through the repurchase and cancellation of the
Company's own shares.
Unrealised capital reserve
Increases and decreases in the valuation of investments held at the
year end against cost, are included in this reserve.
Special reserve
The cancellation of the Share premium 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.
Own 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
* capital 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 on investments
Unaudited six Unaudited six
months months Audited year
ended 30 ended 30 ended 31
September September March
2009 2008 2009
£'000 £'000 £'000
Unrealised losses on fixed
asset
investments held at fair
value
through profit or loss
account (374) (2,462) (5,355)
Unrealised losses on fixed
asset
investments held at
amortised cost (215) (124) (1,142)
(589) (2,586) (6,497)
Movement in loan stock
capitalised
accrued interest - - 24
Unrealised losses on fixed
asset
investments (589) (2,586) (6,473)
Unrealised gains/(losses) on
current
asset investments held at
fair value
through profit or loss
account 18 2 (10)
(571) (2,584) (6,483)
Unquoted loan stock investments are valued on an amortised cost
basis.
4. Investment
Unaudited six Unaudited six
months months Audited year
ended 30 ended 30 ended 31
September September March
2009 2008 2009
£'000 £'000 £'000
Income recognised on
investments held at fair
value
through profit or loss
Floating rate note interest 12 43 76
Bank deposit interest 11 111 150
Dividend income 43 - -
Other income - 52 54
66 206 280
Income recognised on
investments held at
amortised
cost
Return on loan stock
investments 567 942 1,481
633 1,148 1,761
All of the Company's income is derived from operations based in the
United Kingdom.
5. Dividends
Unaudited Unaudited Audited
six months six months year
ended ended ended
30 September 30 September 31 March
2009 2008 2009
£'000 £'000 £'000
First dividend paid on 15
August 2008 - 5.00 pence per
share - 1,776 1,776
Second dividend paid on 9
January 2009 - 5.00 pence
per share - - 1,764
First dividend paid on 31
July 2009 - 2.50 pence per
share 877 - -
877 1,776 3,540
In addition to the dividends paid above, the Board has declared a
dividend of 2.50 pence per share to be paid on 6 January 2010 to
shareholders on the register on 4 December 2009. The total cost will
be approximately £874,000.
6. Recovery of VAT
Following the HMRC business briefing permitting the recovery of
historic VAT that had been charged on management fees, in the six
months to 30 September 2009, the Company has recognised and received
a further £28,000 which is net of provisions for historic management
and performance fees of £16,000. This is in addition to the £720,000
that was recognised in the Income statement for the year to 31 March
2009.
7. Basic and diluted return per share
Return per share has been calculated on 35,017,904 Ordinary shares
excluding treasury shares (30 September 2008: 35,546,947; 31 March
2009: 35,364,875) being the weighted number of shares in issue for
the period.
There are no convertible instruments, derivatives or contingent share
agreements in issue. 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.
8. Investments
Fixed asset investments held at fair value through profit or loss
total £6,877,000 (30 September 2008: £10,340,000; 31 March 2009:
£7,576,000). Fixed asset investments held at amortised cost total
£17,843,000 (30 September 2008: £19,282,000; 31 March 2009:
£18,439,000).
Current asset investments held at fair value through profit or loss
total £1,481,000 (30 September 2008: £1,476,000; 31 March 2009:
£1,463,000).
In addition to the current asset investment above, the Company's
total cash resources as at 30 September 2009 are made up of £2.82
million in cash deposits held by the Company (30 September 2008:
£4,202,000; 31 March 2009: £2,498,000) and £1.04 million in cash held
on deposits by residential property development companies in the
portfolio (30 September 2008: £0.65 million; 31 March 2009: £0.67
million).
9. Share capital
Unaudited six Unaudited six Audited
months ended months ended year ended
30 September 30 September 31 March
2009 2008 2009
£'000 £'000 £'000
Authorised
68,000,000 Ordinary
shares of 50p each (30
September 2008 and 31
March 2009:
68,000,000) 34,000 34,000 34,000
Allotted, called up and
fully paid
36,051,050 Ordinary
shares of 50p each (30
September 2008:
35,928,061; 31 March
2009: 36,003,835) 18,025 17,964 18,002
Allotted, called up and
fully paid
excluding treasury
shares
34,954,371 Ordinary
shares of 50p each (30
September 2008:
35,284,007; 31 March
2009: 35,028,249) 17,477 17,642 17,514
Under the terms of the Dividend Reinvestment Scheme Circular dated 10
July 2008, the following Ordinary shares of nominal value 50 pence
were allotted during the period:
Opening
Aggregate Consideration market
Number of nominal received price
Shares value on
allotted of shares Issue price allotment
Allotment pence per £'000 pence per
date £'000 share share
31 July 2009 47,215 23 82.80 39 57.50
10. Treasury shares
During the period to 30 September 2009 the Company purchased 121,093
Ordinary shares to be held in treasury at a cost of £70,000,
representing 0.3 per cent. of its issued share capital as at 1 April
2009. The shares purchased for treasury were funded from the Own
treasury shares reserve. The total number of Ordinary shares held in
treasury as at 30 September 2009 was 1,096,679 (30 September 2008:
644,054; 31 March 2009: 975,586) representing 3.0 per cent. of the
issued share capital as at 1 April 2009.
11. Reconciliation of revenue return on ordinary activities
before taxation to net cash inflow from operating activities
Unaudited Unaudited Audited
six months six months year
ended ended ended
30 September 30 September 31 March
2009 2008 2009
£'000 £'000 £'000
Revenue return on
ordinary
activities before
tax 454 1,049 1,509
Investment
management fee
charged to capital (219) (332) (549)
Recoverable VAT
capitalised 21 375 540
Movement in accrued
amortised
loan stock interest (18) 95 167
Decrease/(increase)
in operating
debtors 197 (548) (151)
(Decrease)/increase
in operating
creditors (67) 8 (58)
Net cash inflow from
operating activities 368 647 1,458
12. Analysis of change in cash during the period
Unaudited
Unaudited six Audited
six months months year
ended ended ended
30 30 31
September September March
2009 2008 2009
£'000 £'000 £'000
Beginning of the 5,409
period 2,498 5,409
Net cash (2,911)
inflow/(outflow) 323 (1,207)
End of the period
2,821 4,202 2,498
13. Contingencies, guarantees and financial commitments
The Company has no contingencies, guarantees or
financial commitments.
14. Post balance sheet events
Since 30 September 2009, the Company has completed
the following investment transactions:
* November 2009: Investment in The Stanwell Hotel Limited of £1
million;
* November 2009: Investment in City Screen (Liverpool) Limited of
£42,000;
* November 2009: Investment in CS (Greenwich) Limited of £93,000;
* November 2009: Investment in CS (Brixton) Limited of £24,000;
* November 2009: Investment in CS (Exeter) Limited of £8,000;
* November 2009: Disposal of the Nationwide floating rate note
(maturity date 7 June 2010) of £1,500,000.
15. Related party transactions
The Manager, Albion Ventures LLP, is considered to be a related party
by virtue of the fact that it is party to a management agreement with
the Company. During the period, services of a total value of £293,000
in management fees and £20,000 in administration fees (30 September
2008: £438,000; 31 March 2009: £771,000), were purchased by the
Company from Albion Ventures LLP. At the financial period end, the
amount due to Albion Ventures LLP in respect of these services was
£159,000 (30 September 2008: £257,000; 31 March 2009: £185,000).
Albion Ventures LLP has reclaimed VAT from HMRC as described in note
6. A net sum of £28,000 has been recognized in the Income statement
for the period which is net of historic management and performance
fees of £16,000 to be paid to Albion Ventures LLP.
16. Other information
The Board's assessment of liquidity risk remains unchanged, and is
detailed on page 29 of the Annual Report & Financial Statements for
the year ended 31 March 2009. 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, buybacks 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 the accounts in accordance with Going Concern and Liquidity
Risk: Guidance for Directors of UK Companies 2009, published by the
Financial Reporting Council.
17. 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 2009 and 30 September 2008, and is unaudited. The
information for the year ended 31 March 2009 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 those accounts; their report was unqualified and
did not contain a statement under s498 (2) or (3) of the Companies
Act 2006.
18. 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 FSA viewing facility and also
electronically at www.albion-ventures.co.uk under the 'Our Funds'
section.
24 November 2009
For further information, please contact:
Patrick Reeve of Albion Ventures LLP
Tel: 020 7601 1850
---END OF MESSAGE---
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