Albion Venture Capital Trust PLCThe Company will invest in a broad portfolio of smaller, unquoted growth businesses across a variety of sectors including higher risk technology companies. Investments may take the form of equity or a mixture of equity and loans.Risk is spread by investing in a number of different businesses within venture capital trust qualifying industry sectors. The maximum amount which the Company will invest in a single portfolio company is 15% of the Company’s assets at cost, thus ensuring a spread of investment risk. The value of an individual investment may increase over time as a result of trading progress and it is possible that it may grow in value to a point where it represents a significantly higher proportion of total assets prior to a realisation opportunity being available.The Company’s maximum exposure in relation to gearing is restricted to 10% of the adjusted share capital and reserves.(pence per share)In the six months to 30 September 2023, the Company generated a total loss of 2.15 pence per share, representing a 4.2% decrease on the opening net asset value (“NAV”). Despite the disappointing loss for the period, which reflects the challenging macroeconomic and geopolitical backdrop, the Board is encouraged by the resilience and revenue growth from a number of our portfolio companies.The total loss for the six months to 30 September 2023 was £3.0 million (30 September 2022: gain of £1.0 million; year ended 31 March 2023: gain of £0.1 million). The Company paid a first dividend of 1.27 pence per share during the period to 30 September 2023 (30 September 2022: 1.33 pence per share). As a result, the NAV has decreased to 47.47 pence per share on 30 September 2023 (31 March 2023: 50.88 pence per share).The loss on our portfolio of investments for the six months to 30 September 2023 was £2.9 million (30 September 2022: gain of £1.2 million; year ended 31 March 2023: gain of £0.6 million). The key upward movements in the period include: Ophelos, an investment that was held for only one year, which was sold after the period end for 2 times cost, with an uplift of £0.4 million recognised during the period; and Accelex, a £0.3 million valuation uplift, after an externally led Series A funding round. Loan stock interest and dividend income, predominantly from the renewable energy investments, accounted for £0.5 million of the £0.8 million of income generated by the Company during the period.The pie chart at the end of this announcement shows the different sectors in which the Company’s assets, at carrying value, were invested at 30 September 2023.As announced on 30 October 2023, following a formal and rigorous audit tender process, the Company was pleased to announce the appointment of Johnston Carmichael LLP (“Johnston Carmichael”) as the Company’s Auditor with immediate effect. Johnston Carmichael will conduct the audit of the Annual Report and Financial Statements for the year ended 31 March 2024.It remains the Board’s primary objective to maintain sufficient resources for investment in new and existing portfolio companies and for the continued payment of dividends to shareholders. The Board’s policy is to buy-back shares in the market, subject to the overall constraint that such purchases are in the Company’s interest. It is the Board’s intention for such buy-backs to be in the region of a 5% discount to net asset value, so far as market conditions and liquidity permit. The Board continues to review the use of buy-backs and is satisfied that it is an important means of providing market liquidity for shareholders.The Company faces a number of significant risks including high interest rates, high levels of inflation, the ongoing impact of geopolitical tensions, and an expected period of low economic growth in the UK. The Company’s focus on technology investments may result in greater valuation volatility in the current economic climate. Overall investment risk is mitigated in a number of ways. In particular, the Manager is continually assessing the exposure to these risks for each portfolio company and mitigating actions, where possible, are being implemented.Details of the transactions that took place with the Manager during the period can be found in note 5. Details of related party transactions can be found in note 11.The Board wishes to minimise the environmental impact of how the Company communicates with its shareholders. With this in mind, those shareholders that continue to receive physical copies of the Annual Report and other documentation, will receive a letter alongside this Half-yearly Financial Report explaining the forthcoming move to electronic communications.The Company still faces many uncertainties, with high levels of inflation, elevated interest rates and geopolitical tensions, but the portfolio remains relatively resilient during these challenging times. The portfolio is well diversified, with companies at different stages of maturity and targeted at sectors such as healthcare, data analytics and FinTech. Whilst we are disappointed with the loss for the period, we believe these sectors of focus can provide opportunities for growth, and to yield positive results for the Company and its shareholders over the longer-term.Chairman
14 December 2023£’000£’000** As adjusted for additions and disposals during the period.£’000£’000£’000£’000£’000Chairman
14 December 202330 September 202330 September 202231 March 2023£’000£’000£’000£’000£’000£’000£’000£’000£’00030 September 2023£’00030 September 2022
£’00031 March 2023
£’000Chairman
Company number: 03142609six months ended 30 September 2023£’000six months ended 30 September 2022
£’000year ended 31 March 2023
£’000The condensed Financial Statements have been prepared in accordance with applicable United Kingdom law and accounting standards, including Financial Reporting Standard 102 (“FRS 102”), Financial Reporting Standard 104 – Interim Financial Reporting (“FRS 104”), and with the Statement of Recommended Practice “Financial Statements of Investment Trust Companies and Venture Capital Trusts” (“SORP”) issued by The Association of Investment Companies (“AIC”). The Financial Statements have been prepared on a going concern basis.Fixed asset investmentsThe Company’s business is investing in financial assets with a view to profiting from their total return in the form of income and capital growth. This portfolio of financial assets is managed and its performance evaluated on a fair value basis, in accordance with a documented investment policy, and information about the portfolio is provided internally on that basis to the Board.• Unquoted investments, where there is not an active market, are valued using an appropriate valuation technique in accordance with the IPEV Guidelines. Indicators of fair value are derived using established methodologies including earnings multiples, the level of third party offers received, cost or price of recent investment rounds, net assets and industry valuation benchmarks. Where price of recent investment is used as a starting point for estimating fair value at subsequent measurement dates, this has been benchmarked using an appropriate valuation technique permitted by the IPEV guidelines.
• In situations where cost or price of recent investment is used, consideration is given to the circumstances of the portfolio company since that date in determining fair value. This includes consideration of whether there is any evidence of deterioration or strong definable evidence of an increase in value. In the absence of these indicators, the investment in question is valued at the amount reported at the previous reporting date. Examples of events or changes that could indicate a diminution include:
o the performance and/or prospects of the underlying business are significantly below the expectations on which the investment was based;
o a significant adverse change either in the portfolio company’s business or in the technological, market, economic, legal or regulatory environment in which the business operates; or
o market conditions have deteriorated, which may be indicated by a fall in the share prices of quoted businesses operating in the same or related sectors.Receivables (including debtors due after more than one year), payables and cash are carried at amortised cost, in accordance with FRS 102. Deferred consideration meets the definition of a financing transaction held at amortised cost, and interest will be recognised through capital over the credit period using the effective interest method. There are no financial liabilities other than payables.Dividend incomeDividend income is included in revenue when the investment is quoted ex-dividend.Fixed returns on non-equity shares and debt securities are recognised when the Company’s right to receive payment and expect settlement is established. Where interest is rolled up and/or payable at redemption then it is recognised as income unless there is reasonable doubt as to its receipt.Funds income is recognised on an accruals basis using the agreed rate of interest.Interest income is recognised on an accruals basis using the rate of interest agreed with the bank.All expenses have been accounted for on an accruals basis. Expenses are charged through the other distributable reserve except the following which are charged through the realised capital reserve:Taxation is applied on a current basis in accordance with FRS 102. Current tax is tax payable (refundable) in respect of the taxable profit (tax loss) for the current period or past reporting periods using the tax rates and laws that have been enacted or substantively enacted at the financial reporting date. Taxation associated with capital expenses is applied in accordance with the SORP.Called-up share capitalThis reserve accounts for the nominal value of the shares.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 other distributable 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.Increases and decreases in the valuation of investments held at the period end against cost are included in this reserve.The following are disclosed in this reserve:The special reserve, treasury share reserve and the revenue reserve were combined in 2012 to form a single reserve named other distributable reserve.Dividends by the Company are accounted for in the period in which the dividend is paid or approved at the Annual General Meeting.The Directors are of the opinion that the Company is engaged in a single operating segment of business, being investment in smaller companies principally based in the UK.six months ended 30 September 2023£’000six months ended 30 September 2022
£’000year ended 31 March 2023
£’000six months ended £’000six months ended 30 September 2022
£’000year ended 31 March 2023
£’000six months ended 30 September 2023£’000six months ended 30 September 2022
£’000year ended 31 March 2023
£’000six months ended30 September 2023£’000six months ended
30 September 2022
£’000year ended
31 March 2023
£’000The Directors have declared a second dividend for the year ending 31 March 2024 of 1.19 pence per share (total approximately £1,660,000), payable on 31 January 2024 to shareholders on the register on 5 January 2024.six months ended30 September 2023six months ended
30 September 2022year ended
31 March 202330 September 202330 September 202231 March 2023(£’000)(pence per share)(£’000)(pence per share)
(GlobeNewsWire)