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Albion Technology & General VCT PLC: Half-yearly Financial


Albion Know-how & Common VCT PLC
LEI quantity: 213800TKJUY376H3KN16

As required by the UK Itemizing Authority’s Disclosure Steering and Transparency Rule 4.2, Albion Know-how & Common VCT PLC (the “Firm”) at this time makes public its info referring to the Half-yearly Monetary Report (which is unaudited) for the six months to 30 June 2022. This announcement was permitted by the Board of Administrators on 22 September 2022.

The complete Half-yearly Monetary Report (which is unaudited) for the interval to 30 June 2022, will shortly be despatched to shareholders. Copies of the total Half-yearly Monetary Report can be proven through the Albion Capital Group LLP web site by clicking http://www.albion.capital/funds/AATG/30Jun22.pdf.

Funding goal and coverage

The Firm’s funding goal is to offer traders with an everyday and predictable supply of dividend revenue, mixed with the prospect of long-term capital progress, by means of a balanced portfolio of predominantly unquoted progress and know-how companies in a qualifying Enterprise Capital Belief (“VCT”).

Funding coverage

The Firm will put money into a broad portfolio of unquoted progress and know-how companies. Allocation of property can be decided by the funding alternatives which turn into out there, however efforts can be made to make sure that the portfolio is diversified by way of sectors and phases of maturity of portfolio corporations.

VCT qualifying and non-qualifying investments

Software of the funding coverage is designed to make sure that the Firm continues to qualify and is permitted as a VCT by HM Income and Customs (“VCT rules”). The utmost quantity invested in anyone firm is restricted to HMRC annual funding limits. It’s meant that usually at the least 80 per cent. of the Firm’s funds can be invested in VCT qualifying investments. The VCT rules additionally have an effect on the kind of investments and qualifying sectors through which the Firm could make an funding.

Funds held both previous to investing in VCT qualifying property or for liquidity functions can be held as money on deposit, invested in floating fee notes or comparable devices with banks or different monetary establishments with excessive credit score scores or invested in liquid open-ended fairness funds offering revenue and capital fairness publicity (the place it’s thought of financial to take action). Funding in such open-ended fairness funds won’t exceed 7.5 per cent. of the Firm’s property on the time of funding.

Threat diversification and most exposures

Threat is unfold by investing in plenty of totally different companies inside VCT qualifying business sectors utilizing a combination of securities. The utmost the Firm will put money into a single firm is 15 per cent. of the Firm’s property at value on the time of funding. The worth of a person funding is anticipated to extend over time because of buying and selling progress and a steady evaluation is product of investments’ suitability on the market. It’s attainable that particular person holdings might develop in worth to some extent the place they signify a considerably increased proportion of whole property previous to a realisation alternative being out there.

Borrowing powers

The Firm’s most publicity in relation to gearing is restricted to 10 per cent. of the adjusted share capital and reserves. The Administrators do not need any intention of utilising long-term gearing.

Monetary calendar

File date for second dividend for the yr

Cost date for second dividend for the yr

Monetary yr finish

9 December 2022

30 December 2022

31 December 2022

Monetary highlights

  Unaudited
six months ended 30 June 2022
(pence per share)
Unaudited
six months ended 30 June 2021
(pence per share)
Audited
yr ended 31 December 2021
(pence per share)
Opening internet asset worth 80.65 69.35 69.35
Capital (loss)/return (0.10) 11.15 14.93
Income return/(loss) 0.11 (0.11) 0.37
Complete return 0.01 11.04 15.30
Extraordinary dividends paid (2.02) (1.73) (3.68)
Affect from share capital actions 0.05 (0.49) (0.32)
Internet asset worth 78.69 78.17 80.65
Complete shareholder worth for each 100 pence invested on preliminary allotment Extraordinary shares
(pence per share)
Complete dividends paid since inception 121.65
Internet asset worth as at 30 June 2022 78.69
Complete shareholder worth to 30 June 2022 200.34

Along with the dividends paid above, the Board declared a second dividend for the yr ending 31 December 2022 of 1.97 pence per Extraordinary share to be paid on 30 December 2022 to shareholders on the register on 9 December 2022.

Additional particulars concerning the entire shareholder worth for the historic C Shares, Albion Earnings and Development VCT PLC and Extraordinary shares, in addition to the dividend report from inception of the Firm in 2000, will be discovered at http://www.albion.capital/funds/AATG underneath the ‘Monetary Abstract for Earlier Funds’ part.

Notes
The desk above excludes tax advantages.

Interim administration report

Introduction
For the reason that Firm’s yr finish, the financial backdrop has turn into more and more tough, with heightened geopolitical dangers and rising inflation. Total, the Firm has made a small whole achieve for the six months to 30 June 2022 of 0.01 pence per share, which represents a 0.01% return on opening internet asset worth, earlier than dividend funds. I’m happy to report some wonderful outcomes from varied exits throughout the interval, which offset the impact of the more and more unstable market on valuations of ongoing holdings.

Outcomes and dividends
The web asset worth per Extraordinary share as at 30 June 2022 has decreased by 2.4% to 78.69 pence within the six months (30 June 2021: 78.17 pence; 31 December 2021: 80.65 pence); the fee of a 2.02 pence per share dividend on 30 June 2022 greater than offset the return on the portfolio over the six months. There was an uplift in working prices within the interval as a result of enhance in measurement of the fund in addition to accounting for the efficiency incentive provision detailed beneath.

According to our dividend coverage, concentrating on round 5% of NAV each year, the Firm paid a dividend of two.02 pence per share throughout the interval to 30 June 2022 (2021: 1.73 pence per share). The Firm can pay a second dividend for the monetary yr ending 31 December 2022 of 1.97 pence per share on 30 December 2022 to shareholders on the register on 9 December 2022, being 2.5% of the newest reported NAV at 30 June 2022.

This can deliver the entire dividends paid for the yr ending 31 December 2022 to three.99 pence per share, which equates to a 4.95% yield on the opening NAV of 80.65 pence per share at 31 December 2021.

Efficiency and portfolio replace
The entire achieve on investments for the interval ended 30 June 2022 was £1.6 million (six months ended 30 June 2021: £15.0 million; yr ended 31 December 2021: £21.5 million). The Firm’s achieve is principally attributable to 3 profitable exits:

•    Credit score Kudos generated proceeds of £5.1 million and a return of 5.2 instances value; 
•    Phrasee generated proceeds of £2.4 million and a return of three.5 instances value; and
•    MyMeds&Me generated proceeds of £1.5 million and a return of three.4 instances value. 

Additional particulars of different realisations throughout the interval will be discovered within the realisations desk beneath. 

There have been internet unrealised valuation losses on investments of £0.8 million within the interval; the most important write downs being Oxsensis (£1.9m), and Concirrus (£0.5 million) following tough buying and selling situations. The most important uplifts had been on Cantab Analysis (T/A Speechmatics) (£1.0 million) and The Voucher Market (T/A WeGift) (£0.6 million), each of which have been revalued after additional externally led funding rounds.

Through the interval, a complete of £6.8 million was deployed into portfolio corporations, £2.0 million of this was invested in 4 new portfolio corporations, all of that are anticipated to end in follow-on funding as the businesses show themselves and develop. These are:

  • £0.9 million into PeakData, which gives insights and analytics to pharmaceutical corporations on therapeutic areas;
  • £0.5 million into PerchPeek, a digital relocation platform;
  • £0.5 million into Ophelos, an autonomous and moral debt decision platform; and
  • £0.1 million into Regulatory Genome Improvement, a supplier of machine readable structured regulatory content material.

An extra £4.8 million was invested in current portfolio corporations, together with £1.4 million into Cantab Analysis (T/A Speechmatics); £1.0 million into Black Swan Knowledge; and £0.9 million into TransFICC to assist help them as they proceed to develop.

Our high 3 portfolio corporations now account for 21.6% of the Firm’s NAV (30 June 2021: 25.2%; 31 December 2021: 26.2%). Additional particulars of the portfolio of investments will be discovered beneath.

Present portfolio sector allocation

Set out on the backside of this announcement is the sector diversification of the portfolio of investments as at 30 June 2022.

Common Assembly outcomes and adjustments to the Administration Settlement
The entire resolutions proposed on the Annual Common Assembly and Common Assembly (which particularly lined adjustments to the Administration Settlement) on 26 Could 2022 handed comfortably, together with the particular resolutions. The Board continues to encourage shareholders to take part within the enterprise of the Firm by returning votes for Common Conferences.

The adjustments to the Administration Settlement included: reducing the Administration charge from 2.5 per cent. of NAV to 2.0 per cent. of NAV, backdated to 1 January 2022; introduction of a capped administration charge; and revisions to the efficiency incentive preparations. Full particulars can be found within the Round dated 13 April 2022 which will be discovered on the Supervisor’s web site at www.albion.capital/funds/AATG/circular2022.pdf.

These adjustments have now been enacted and there was a discount to the Firm’s ongoing working prices. Particulars on the methodology and calculation of the efficiency incentive provision will be present in notice 9. For the interval ended 30 June 2022, the entire provision of £562,000 decreases the NAV by 0.35 pence per share.

Board composition and succession planning
As a part of the Boards succession planning, we had been happy to welcome Clive Richardson as a Director with impact from 1 June 2022. Clive has intensive expertise throughout a variety of personal and public worldwide healthcare and know-how centered companies from start-ups to mid-cap corporations; this expertise can be of worth to the Firm.

The Nomination Committee regularly screens and critiques the membership of the Board based mostly on the unfold of expertise and contributions of its members, in addition to succession planning necessities of the Firm. The Firm has made plenty of adjustments to the Board in recent times and continues to evaluate actively Board succession given two members could have served as unbiased non-executive administrators for 9 years throughout the present monetary yr.

Share buy-backs
It stays the Board’s coverage to buy-back shares available in the market, topic to the general constraint that such purchases are within the Firm’s curiosity. This contains the upkeep of adequate money sources for funding in new and current portfolio corporations and the continued fee of dividends to shareholders.

It’s the Board’s intention that such buy-backs must be at round a 5% low cost to NAV, in as far as market situations and liquidity allow. The Firm bought 1,544,872 Extraordinary shares for treasury throughout the interval at a complete value of £1.2 million (30 June 2021: £1.0 million; 31 December 2021: £1.9 million). The Firm continues to conduct energetic buy-backs to assist present good secondary market liquidity for many who need to get rid of all or a part of their shareholdings.

Dangers and uncertainties
The UK is experiencing its highest stage of inflation in many years, in addition to the impact of the uncertainty over the long run course and international impression of Russia’s invasion of Ukraine. Total funding threat is mitigated by means of a wide range of processes, together with our coverage of aiming to attain stability within the portfolio by means of the inclusion of sectors which might be much less uncovered to the enterprise and client cycles and in attempting to determine, and nurture, good particular person funding alternatives. The portfolio continues to have a excessive publicity to the know-how sector. Whereas we’d anticipate valuations to be sturdy inside the tolerance of regular market fluctuations, the potential however unknown scale of any additional antagonistic occasions arising from the present scenario within the UK and all over the world stays a significant threat issue.

In accordance with DTR 4.2.7, the Board confirms that the principal dangers and uncertainties dealing with the Firm haven’t materially modified from these recognized within the Annual Report and Monetary Statements for the yr ended 31 December 2021. There’s heightened uncertainty, however this has not modified the character of the principal dangers. The Board considers that the current processes for mitigating these dangers stay applicable.

The principal dangers confronted by the Firm are:

  • Funding, efficiency and valuation threat;
  • VCT approval threat;
  • Regulatory and compliance threat;
  • Market worth of Extraordinary shares;
  • Operational and inner management threat (together with cyber and knowledge safety); and
  • Financial, political and social threat.

An in depth rationalization of the principal dangers dealing with the Firm will be discovered within the Annual Report and Monetary Statements for the yr ended 31 December 2021 on pages 18 to twenty, copies of which can be found on the Firm’s webpage on the Supervisor’s web site at www.albion.capital/funds/AATG underneath the ‘Monetary Reviews and Circulars’ part.

Sundown Clause
The present tax concessions out there to traders subscribing for brand new shares in a VCT have an finish date of 6 April 2025. The Supervisor is actively working, as a part of the VCT business, on submissions to the Authorities to increase these concessions. At this stage, whereas the result stays unsure, the Board expects the Authorities to offer ongoing help.

Albion VCTs Prime Up Provides
The 2021/22 Provides had been totally subscribed and closed having raised £24 million for the Firm. The Board was happy to see the excessive stage of demand for the Firm’s shares from current and new shareholders. As just lately introduced, the Firm intends to take part within the Albion VCTs Prime Up Provides 2022/23. Full particulars of the Provides can be contained in a prospectus that’s anticipated to be revealed in October 2022 and can be out there on the Albion Capital web site (www.albion.capital).

The proceeds of the Provides are getting used to offer help to our current portfolio corporations and to allow us to benefit from new funding alternatives as they come up, a number of of that are famous above. Particulars on the share allotments throughout the interval will be present in notice 8.

Transactions with the Supervisor
Particulars of the transactions that befell with the Supervisor within the interval will be present in notice 5. Particulars of associated social gathering transactions will be present in notice 12.

Shareholder seminar
The Board is happy to report that the Supervisor, Albion Capital, will host a shareholder seminar this yr on 23 November 2022 on the Royal School of Surgeons. The Board considers this an essential a part of shareholder communication because it gives a chance for an interactive occasion; shareholders are inspired to attend. Locations are restricted and to order a spot please e-mail info@albion.capital with topic heading “Shareholders Seminar” and embody your full identify. You’ll obtain an e-mail affirmation of your house, topic to availability.

Outlook
Regardless of the comparatively muted efficiency for the interval, the Board believes the portfolio stays resilient, being each diversified by way of corporations at totally different phases of maturity and throughout a wide range of totally different sectors. We stay assured that our portfolio corporations are well-positioned to develop over the long term, regardless of the market uncertainties, and that our Supervisor is well-positioned to search out new alternatives for us, in addition to to handle our current investments. Nevertheless, with heightened dangers by means of elevated inflation and uncertainty concerning the financial outlook, it’s tough to be completely constructive about what lies forward when there are such important points outdoors the Firm’s management.

Robin Archibald
Chairman
22 September 2022

Duty statement

The Administrators, Robin Archibald, Mary Anne Cordeiro, Margaret Payn, Patrick Reeve and Clive Richardson, are chargeable for making ready the Half-yearly Monetary Report. In making ready these condensed Monetary Statements for the interval to 30 June 2022 we, the Administrators of the Firm, affirm that to the perfect of our data:(a) the condensed set of Monetary Statements, which has been ready in accordance with Monetary Reporting Commonplace 104 “Interim Monetary Reporting”, offers a real and honest view of the property, liabilities, monetary place and revenue and lack of the Firm as required by DTR 4.2.4R;

(b) the Interim administration report features a honest evaluate of the knowledge required by DTR 4.2.7R (indication of essential occasions throughout the first six months and outline of principal dangers and uncertainties for the remaining six months of the yr); and

(c) the Interim administration report features a honest evaluate of the knowledge required by DTR 4.2.8R (disclosure of associated events’ transactions and adjustments therein).

This Half-yearly Monetary Report has not been audited or reviewed by the Auditor.

For and on behalf of the Board

Robin Archibald
Chairman
22 September 2022

Portfolio of investments

    As at 30 June 2022    
Portfolio firm % voting rights Value
£’000
Cumulative motion in worth
£’000
Value
£’000
  Change in worth for the interval*
£’000
Quantexa Restricted 2.9 2,740 14,193 16,933  
Radnor Home Faculty (TopCo) Restricted 14.8 2,710 2,619 5,329   (380)
Oviva AG 2.9 2,694 2,392 5,086   (307)
Proveca Restricted 7.2 1,184 3,445 4,629   (190)
Cantab Analysis Restricted (T/A Speechmatics) 3.4 2,901 1,720 4,621   985
Chonais River Hydro Restricted 15.7 2,169 2,007 4,176   381
Black Swan Knowledge Restricted 7.8 4,221 (376) 3,845   (11)
The Evewell Group Restricted 6.4 1,547 1,542 3,089   19
Elliptic Enterprises Restricted 1.6 2,156 804 2,960  
Egress Software program Applied sciences Restricted 2.2 765 1,990 2,755   (270)
Gharagain River Hydro Restricted 18.5 1,526 855 2,381   236
Oxsensis Restricted 18.2 3,484 (1,164) 2,320   (1,917)
Panaseer Restricted 3.1 1,122 534 1,656  
TransFICC Restricted 3.7 1,275 377 1,652  
The Voucher Market Restricted (T/A WeGift) 2.2 1,020 591 1,611   591
The Road by Road Photo voltaic Programme Restricted 8.1 895 614 1,509   16
Locum’s Nest Restricted 6.9 813 565 1,378   525
Beddlestead Restricted 9.8 1,200 151 1,351   117
MHS 1 Restricted 22.5 1,565 (258) 1,307   (1)
Regenerco Renewable Power Restricted 7.9 822 483 1,305   11
Aridhia Informatics Restricted 4.9 950 207 1,157   (83)
Convertr Media Restricted 6.9 1,105 50 1,155   5
Gravitee Topco Restricted (T/A Gravitee.io) 3.6 920 235 1,155   235
Healios Restricted 2.5 633 417 1,050  
Threadneedle Software program Holdings Restricted (T/A Solidatus) 1.7 1,014 1,014  
Cisiv Restricted 7.5 695 309 1,004   (22)
uMotif Restricted 3.6 1,121 (134) 987   (65)
PeakData AG 2.1 943 34 977   34
InCrowd Sports activities Restricted 5.0 636 266 902   47
NuvoAir Holdings Inc. 1.4 564 266 830   80
Arecor Therapeutics PLC 0.9 304 492 796   (140)
Alto Prodotto Wind Restricted 6.9 550 245 795   54
The Q Backyard Firm Restricted 33.4 934 (150) 784  
Seldon Applied sciences Restricted 1.4 694 694  
Koru Children Restricted 1.6 430 192 622  
DySIS Medical Restricted 3.5 2,589 (2,029) 560   (114)
PerchPeek Restricted 1.7 546 546  
Ophelos Restricted 1.9 492 492  
memsstar Restricted 30.1 515 (57) 458   (120)
Premier Leisure (Suffolk) Restricted 454 (26) 428  
Erin Photo voltaic Restricted 15.7 440 (85) 355  
Accelex Know-how Restricted 2.0 353 353  
AVESI Restricted 8.0 259 83 342  
Imandra Inc. 1.6 215 114 329   (210)
Brytlyt Restricted 1.9 322 322  
Limitless Know-how Restricted 2.1 560 (239) 321   (239)
Zift Channel Options Inc. 1.6 881 (583) 298   (50)
Harvest AD Restricted 210 (1) 209  
Mirada Medical Restricted 4.6 1,321 (1,125) 196   196
Greenenerco Restricted 3.1 84 57 141   8
Regulatory Genome Improvement Restricted 0.7 107 107  
uMedeor Restricted (T/A uMed) 0.9 100 100  
Symetrica Restricted 0.3 79 (16) 63  
Concirrus Restricted 3.4 1,795 (1,732) 63   (508)
Palm Tree Know-how Restricted 0.5 320 (304) 16  
Ahead Scientific Restricted (T/A Pando) 1.6 196 (193) 3   (3)
Abcodia Restricted 3.2 568 (566) 2  
Avora Restricted 2.2 400 (400)   (9)
Components Software program Restricted 3.3 19 (19)  
Complete mounted asset investments   61,127 28,392 89,519   (1,099)

T/A – buying and selling as
* As adjusted for additions and disposals throughout the interval.

Funding realisations within the interval to 30 June 2022 Value
£’000
Opening carrying worth
£’000
Disposal proceeds
£’000
Complete realised achieve/(loss)
£’000
Gain/(loss) on opening worth
£’000
Disposals:          
Credit score Kudos Restricted 979 4,050 5,065 4,086 1,015
Phrasee Restricted 680 2,018 2,384 1,704 366
MyMeds&Me Restricted 439 666 1,476 1,037 810
           
Mortgage inventory repayments and different:          
Alto Prodotto Wind Restricted 19 28 28 9
Greenenerco Restricted 3 4 4 1
Oxsensis Restricted 1,420 1,598 1,598 178
Sandcroft Avenue Restricted (T/A Hussle)** 427 5 (427) (5)
Escrow changes and different*** 52 52 52
Complete 3,967 8,369 10,607 6,640 2,238

** in administration
*** These comprise honest worth actions on deferred consideration on beforehand disposed investments and bills that are incidental to the acquisition or disposal of an funding

Complete change in worth of investments for the yr           (1,099)
Motion in mortgage inventory accrued curiosity           261
Unrealised losses on mounted asset investments           (838)
Realised good points on mounted asset investments                 2,238
Finance revenue from the unwinding of low cost on deferred consideration         179
Complete good points on investments as per Earnings assertion         1,579

Condensed revenue assertion

    Unaudited
six months ended
30 June 2022
Unaudited
six months ended
30 June 2021
Audited
yr ended
31 December 2021
  Observe Income
£’000
Capital
£’000
Complete
£’000
Income
£’000
Capital
£’000
Complete
£’000
Income
£’000
Capital
£’000
Complete
£’000
Positive aspects on investments 3 1,579 1,579 14,966 14,966 21,527 21,527
Funding revenue 4 619 619 330 330 1,077 1,077
Funding Supervisor’s charges* 5 (129) (1,725) (1,854) (270) (807) (1,077) (235) (2,115) (2,350)
Different bills   (327) (327) (193) (193) (366) (366)
Profit/(loss) on bizarre actions earlier than tax   163 (146) 17 (133) 14,159 14,026 476 19,412 19,888
Tax cost on bizarre actions  
Profit/(loss) and whole complete revenue attributable to shareholders   163 (146) 17 (133) 14,159 14,026 476 19,412 19,888
Primary and diluted return/(loss) per share (pence)** 7 0.11 (0.10) 0.01 (0.11) 11.15 11.04 0.37 14.93 15.30

* For extra info on the allocation between income and capital please see notice 2 within the accounting insurance policies beneath
** adjusted for treasury shares

Comparative figures have been extracted from the unaudited Half-yearly Monetary Report for the six months ended 30 June 2021 and the audited statutory accounts for the yr ended 31 December 2021.

The accompanying notes kind an integral a part of this Half-yearly Monetary Report.

The entire column of this Condensed revenue assertion represents the revenue and loss account of the Firm. The supplementary income and capital columns have been ready in accordance with The Affiliation of Funding Firms’ Assertion of Really useful Apply.
Condensed balance sheet

  Observe Unaudited
30 June 2022
£’000
Unaudited
30 June 2021
£’000
Audited
31 December 2021
£’000
Fastened asset investments   89,519 83,076 90,535
         
Present property        
Commerce and different receivables   3,221 2,133 2,878
Money and money equivalents   35,518 19,957 14,361
    38,739 22,090 17,239

Complete property

  128,258 105,166 107,774

Payables: quantities falling due inside one yr
Commerce and different payables

  (1,145) (947) (780)
Complete property much less present liabilities   127,113 104,219 106,994

Provisions falling due after one yr

  (562)
Internet property   126,551 104,219 106,994
Fairness attributable to fairness holders        
Referred to as up share capital 8 1,833 1,530 1,536
Share premium   76,358 52,293 52,687
Capital redemption reserve   48 48 48
Unrealised capital reserve   28,229 27,619 33,469
Realised capital reserve   23,353 23,752 18,259
Different distributable reserve   (3,270) (1,023) 995
Complete fairness shareholders’ funds   126,551 104,219 106,994
         
Primary and diluted internet asset worth per share (pence)*   78.69 78.17 80.65

* excluding treasury shares

Comparative figures have been extracted from the unaudited Half-yearly Monetary Report for the six months ended 30 June 2021 and the audited statutory accounts for the yr ended 31 December 2021.

The accompanying notes kind an integral a part of this Half-yearly Monetary Report.

These Monetary Statements had been permitted by the Board of Administrators and authorised for challenge on 22 September 2022 and had been signed on its behalf by

Robin Archibald
Chairman
Firm quantity: 04114310
Condensed assertion of adjustments in fairness

  Referred to as up share
capital
Share premium Capital redemption reserve Unrealised capital reserve Realised capital reserve* Different distributable reserve* Complete
  £’000 £’000 £’000 £’000 £’000 £’000 £’000
As at 1 January 2022 1,536 52,687 48 33,469 18,259 995 106,994
Revenue/(loss) and whole complete revenue for the interval (838) 692 163 17
Switch of beforehand unrealised good points on disposal of investments (4,402) 4,402
Buy of personal shares for treasury (1,188) (1,188)
Situation of fairness 297 24,273 24,570
Value of challenge of fairness (602) (602)
Dividends paid (3,240) (3,240)
As at 30 June 2022 1,833 76,358 48 28,229 23,353 (3,270) 126,551
As at 1 January 2021 1,307 37,036 48 13,595 23,617 2,425 78,028
Revenue/(loss) and whole complete revenue for the interval 14,702 (543) (133) 14,026
Switch of beforehand unrealised good points on disposal of investments (678) 678
Buy of personal shares for treasury (1,009) (1,009)
Situation of fairness 223 15,643 15,866
Value of challenge of fairness (386) (386)
Dividends paid (2,306) (2,306)
As at 30 June 2021 1,530 52,293 48 27,619 23,752 (1,023) 104,219
As at 1 January 2021 1,307 37,036 48 13,595 23,617 2,425 78,028
Revenue/(loss) and whole complete revenue for the yr 20,761 (1,349) 476 19,888
Switch of beforehand unrealised good points on disposal of investments (887) 887
Buy of shares for treasury (1,906) (1,906)
Situation of fairness 229 16,056 16,285
Value of challenge of fairness (405) (405)
Dividends paid (4,896) (4,896)
As at 31 December 2021 1,536 52,687 48 33,469 18,259 995 106,994

*Included inside these reserves are quantities of £17,686,000 (30 June 2021: £22,729,000; 31 December 2021: £17,035,000) that are thought of distributable at 30 June 2022. The ultimate listening to for the cancellation and reclassification of share premium and capital redemption reserves to different distributable reserve, totalling £76,406,000, was held on 2 August 2022. Of this reclassified quantity, £26,004,000 is instantly distributable underneath VCT rules, and £50,402,000 will turn into distributable over time.

Condensed assertion of cash flows

  Unaudited
six months ended 30 June 2022
£’000
Unaudited
six months ended 30 June 2021
£’000
Audited
yr ended
31 December 2021
£’000
Money movement from working actions      
Mortgage inventory revenue obtained 767 315 674
Dividend revenue obtained 80 15 15
Deposit curiosity obtained 18 1 1
Funding administration charge paid (1,196) (871) (2,166)
Different money funds (302) (231) (373)
Company tax paid
Internet money movement from working actions (633) (771) (1,849)
       
       
Money movement from investing actions      
Buy of mounted asset investments (6,308) (4,634) (8,229)
Disposal of mounted asset investments 8,337 1,587 3,910
Internet money movement from investing actions 2,029 (3,047) (4,319)
       
       
Money movement from financing actions      
Situation of share capital 23,413 15,120 15,120
Value of challenge of fairness (18) (19) (37)
Dividends paid (2,671) (1,932) (4,099)
Buy of personal shares (together with prices) (963) (845) (1,906)
Internet money movement from financing actions 19,761 12,324 9,078
       
Improve in money and money equivalents 21,157 8,506 2,910
Money and money equivalents at begin of interval 14,361 11,451 11,451
Money and money equivalents at finish of interval 35,518 19,957 14,361

Notes to the condensed Monetary Statements

1. Foundation of preparation
The condensed Monetary Statements have been ready in accordance with relevant United Kingdom regulation and accounting requirements, together with Monetary Reporting Commonplace 102 (“FRS 102”), and with the Assertion of Really useful Apply “Monetary Statements of Funding Belief Firms and Enterprise Capital Trusts” (“SORP”) issued by The Affiliation of Funding Firms (“AIC”). The Monetary Statements have been ready on a going concern foundation.

The preparation of the Monetary Statements requires administration to make judgements and estimates that have an effect on the appliance of insurance policies and reported quantities of property, liabilities, revenue and bills. Essentially the most important estimates and judgements relate to the dedication of carrying worth of investments at honest worth by means of revenue and loss (“FVTPL”) in accordance with FRS 102 sections 11 and 12. The Firm values investments by following the Worldwide Personal Fairness and Enterprise Capital Valuation (“IPEV”) Tips as up to date in 2018 and additional element on the valuation strategies used are outlined in notice 2 beneath.
Firm info will be discovered on web page 2 of the Half-yearly Monetary Report.

2. Accounting insurance policies
Fastened and present asset investments
The Firm’s enterprise is investing in monetary property with a view to benefiting from their whole return within the type of revenue and capital progress. This portfolio of monetary property is managed, and its efficiency evaluated on a good worth foundation, in accordance with a documented funding coverage, and details about the portfolio is offered internally on that foundation to the Board.

In accordance with the necessities of FRS 102, these undertakings through which the Firm holds greater than 20 per cent. of the fairness as a part of an funding portfolio are usually not accounted for utilizing the fairness methodology. In these circumstances the funding is measured at FVTPL.

Upon preliminary recognition (utilizing commerce date accounting) investments, together with mortgage inventory, are labeled by the Firm as FVTPL and are included at their preliminary honest worth, which is value (excluding bills incidental to the acquisition that are written off to the Earnings assertion).

Subsequently, the investments are valued at ‘honest worth’, which is measured as follows:

  • Investments listed on recognised exchanges are valued at their bid costs on the finish of the accounting interval or in any other case at honest worth based mostly on revealed value quotations.
  • Unquoted investments, the place there is no such thing as a energetic market, are valued utilizing an applicable valuation method in accordance with the IPEV Tips. Indicators of honest worth are derived utilizing established methodologies together with earnings multiples, income multiples, the extent of third social gathering affords obtained, value or costs of current funding rounds, internet property and business valuation benchmarks. The place the worth of current funding is used as a place to begin for estimating honest worth at subsequent measurement dates, this has been benchmarked utilizing an applicable valuation method permitted by the IPEV tips.
  • In conditions the place the associated fee or value of current funding is used, consideration is given to the circumstances of the portfolio firm since that date in figuring out honest worth. This contains consideration of whether or not there’s any proof of decay or robust definable proof of a rise in worth. Within the absence of those indicators, the funding in query is valued on the quantity reported on the earlier reporting date. Examples of occasions or adjustments that might point out a diminution embody:
    • the efficiency and/or prospects of the underlying enterprise are considerably beneath the expectations on which the funding was based mostly; or
    • a major antagonistic change both within the portfolio firm’s enterprise or within the technological, market, financial, authorized or regulatory atmosphere through which the enterprise operates; or
    • market situations have deteriorated, which can be indicated by a fall within the share costs of quoted companies working in the identical or associated sectors.

Investments are recognised as monetary property on authorized completion of the funding contract and are de-recognised on authorized completion of the sale of an funding.

Dividend revenue is just not recognised as a part of the honest worth motion of an funding however is recognised individually as funding revenue by means of the opposite distributable reserve when a share turns into ex-dividend.

Present property and payables
Receivables (together with debtors due after multiple yr), payables and money are carried at amortised value, in accordance with FRS 102. Debtors due after multiple yr meet the definition of a financing transaction and are held at amortised value, and curiosity can be recognised by means of capital over the credit score interval utilizing the efficient curiosity methodology. There are not any monetary liabilities aside from payables.

Provisions falling due after one yr
Provisions falling due after one yr relate to the efficiency incentive charge payable to the Supervisor. The supply is the perfect estimate of the possible quantities payable in respect of the five-year efficiency measurement interval for the efficiency incentive charge. Essentially the most important assumption when calculating this quantity, is that of future efficiency. This has been calculated by reference to the Firm’s 5 yr rolling historic returns and has been corroborated by a portfolio return evaluation utilizing applicable benchmarks.

Funding revenue
Equity revenue
Dividend revenue is included in income when the funding is quoted ex-dividend.

Unquoted mortgage inventory and different most well-liked revenue
Fastened returns on non-equity shares and debt securities are recognised when the Firm’s rights to obtain fee and anticipated settlement are established. The place curiosity is rolled up and/or payable at redemption then it’s recognised as revenue except there’s cheap doubt as to its receipt.

Financial institution curiosity revenue
Curiosity revenue is recognised on an accruals foundation utilizing the speed of curiosity agreed with the financial institution.

Funding administration charge, efficiency incentive charge and bills
All bills have been accounted for on an accruals foundation. Bills are charged by means of the opposite distributable reserve besides the next that are charged by means of the realised capital reserve:

  • 90% of administration charges and 100% of efficiency incentive charges, if any, are allotted to the realised capital reserve. This modified from 75% for each administration charges and efficiency incentive charges from the yr ended 31 December 2021, to higher align with the Board’s expectation that over the long run nearly all of the Firm’s funding returns can be within the type of capital good points. This can be a change in accounting estimate and doesn’t require prior interval adjustment.
  • bills that are incidental to the acquisition or disposal of an funding are charged by means of the realised capital reserve.

Taxation
Taxation is utilized on a present foundation in accordance with FRS 102. Present tax is tax payable or refundable in respect of the taxable revenue or tax loss for the present interval or previous reporting intervals utilizing the tax charges and legal guidelines which were enacted or substantively enacted on the monetary reporting date. Taxation related to capital bills is utilized in accordance with the SORP.

Deferred tax is offered in full on all timing variations on the reporting date. Timing variations are variations between taxable earnings and whole complete revenue as acknowledged within the Monetary Statements that come up from the inclusion of revenue and bills in tax assessments in intervals totally different from these through which they’re recognised within the Monetary Statements. As a VCT the Firm has an exemption from tax on capital good points. The Firm intends to proceed assembly the situations required to acquire approval as a VCT for the foreseeable future. The Firm, subsequently, shouldn’t have any materials deferred tax timing variations arising in respect of the revaluation or disposal of investments and the Firm has not offered for any deferred tax.

Share capital and reserves
Referred to as-up share capital
This accounts for the nominal worth of the shares.

Share premium
This accounts for the distinction between the worth paid for the Firm’s shares and the nominal worth of these shares, much less challenge prices.

Capital redemption reserve
This reserve accounts for quantities by which the issued share capital is diminished by means of the repurchase and cancellation of the Firm’s personal shares.

Unrealised capital reserve
Will increase and reduces within the valuation of investments held on the interval finish towards value are included on this reserve.

Realised capital reserve
The next are disclosed on this reserve:

  • good points and losses in comparison with value on the realisation of investments, or everlasting diminutions in worth (together with good points recognised on the realisation of investments the place consideration is deferred that aren’t distributable as a matter of regulation);
  • finance revenue in respect of the unwinding of the low cost on deferred consideration that’s not distributable as a matter of regulation;
  • bills, along with the associated taxation impact, charged in accordance with the above insurance policies; and
  • dividends paid to fairness holders the place paid out by capital.

Different distributable reserve
The particular reserve, treasury share reserve and the income reserve had been mixed in 2012 to kind a single reserve named different distributable reserve.

This reserve accounts for actions from the income column of the Earnings assertion, the fee of dividends, the buy-back of shares and different non-capital realised actions.

Dividends
Dividends by the Firm are accounted for within the interval through which the legal responsibility to make the fee has been established or permitted on the Annual Common Assembly.

Segmental reporting
The Administrators are of the opinion that the Firm is engaged in a single working section of enterprise, being funding in smaller early stage corporations principally based mostly within the UK.

3.        Gains on investments

  Unaudited
six months ended 30 June 2022
£’000
Unaudited
six months ended 30 June 2021
£’000
Audited
yr ended
31 December 2021
£’000
Unrealised (losses)/good points on mounted asset investments (838) 14,702 20,761
Realised good points on mounted asset investments 2,238 111 448
Unwinding of low cost on deferred consideration 179 153 318
  1,579 14,966 21,527

4.        Funding revenue

  Unaudited
six months ended
30 June 2022
£’000
Unaudited
six months ended
30 June 2021
£’000
Audited
yr ended
31 December 2021
£’000
Mortgage inventory curiosity 505 314 1,060
Dividend revenue 96 15 15
Financial institution deposit curiosity 18 1 2
  619 330 1,077
       

5.        Funding Manager’s charge

  Unaudited

six months ended

30 June 2022

£’000

Unaudited

six months ended

30 June 2021

£’000

Audited

yr ended

31 December 2021

£’000

Funding administration charge charged to income 129 270 235
Funding administration charge charged to capital 1,163 807 2,115
Complete funding administration charge 1,292 1,077 2,350
       
Motion in provision for efficiency incentive charge charged to capital 562
  1,854 1,077 2,350

Additional particulars of the Administration settlement underneath which the funding administration charge is paid are given within the Chairmans Assertion on web page 8 of the Annual Report and Monetary Statements for the yr ended 31 December 2021 and within the Round dated 13 April 2022 which will be discovered on the Supervisor’s web site at www.albion.capital/funds/AATG/circular2022.pdf.

Through the interval, companies for a complete worth of £1,392,000 (30 June 2021: £1,077,000; 31 December 2021: £2,350,000) had been bought by the Firm from Albion Capital Group LLP (“Albion Capital”) comprising £1,292,000 of administration charges (30 June 2021: £1,077,000; 31 December 2021: £2,350,000) and £100,000 of administration charges (30 June 2021 and 31 December 2021: £nil). On the monetary interval finish, the quantity as a result of Albion Capital in respect of those companies disclosed as accruals was £807,000 (administration charge accrual: £50,000, administration charge accrual £758,000) (30 June 2021: £683,000; 31 December 2021: £660,000).

Presently a finest estimate provision of £562,000 has been calculated and included in relation to potential efficiency incentive charges which come up from efficiency to 30 June 2022, which might turn into payable over the intervals to 31 December 2026. The primary fee will solely turn into payable after the adoption of the accounts on the 2024 AGM based mostly on precise yr finish efficiency, in relation to the five-year interval ending 31 December 2023. Additional particulars will be present in notice 9.

Through the interval, the Firm was not charged by Albion Capital in respect of Patrick Reeve’s companies as a Director (30 June 2021 and 31 December 2021: £nil).

Albion Capital, its companions and employees (together with Patrick Reeve), held 1,476,467 Extraordinary shares within the Firm as at 30 June 2022.

Albion Capital is, sometimes, eligible to obtain association charges and monitoring charges from portfolio corporations. Through the interval to 30 June 2022, charges of £132,000 attributable to the investments of the Firm had been obtained by Albion Capital pursuant to those preparations (30 June 2021: £145,000; 31 December 2021: £207,000).

The Firm entered into a suggestion settlement referring to the Provides with the Firm’s funding supervisor Albion Capital, pursuant to which Albion Capital would obtain a charge of two.5% of the gross proceeds of the Provides and out of which Albion Capital would pay the prices of the Provides, as detailed within the Prospectus.

6.        Dividends Unaudited Unaudited Audited
  six months ended
30 June 2022
£’000
six months ended
30 June 2021
£’000
yr ended
31 December 2021
£’000
First interim dividend of two.02p per share paid on 30 June 2022 (30 June 2021: 1.73p per share) 3,240 2,306 2,306
Second interim dividend of 1.95p per share paid on 31 December 2021 2,590
  3,240 2,306 4,896

The Administrators have declared a dividend of 1.97 pence per Extraordinary share (whole roughly £3,168,000) payable on 30 December 2022, to shareholders on the register on 9 December 2022.

7.        Primary and diluted return/(loss) per share

  Unaudited
six months ended
30 June 2022
Unaudited
six months ended
30 June 2021
Audited
yr ended
31 December 2021
  Income Capital Income Capital Income Capital
Revenue/(loss) attributable to fairness shares (£’000) 163 (146) (133) 14,159 476 19,412
Weighted common shares in challenge (adjusted for treasury shares) 149,501,675 127,004,453 130,014,383
Return/(loss) attributable per fairness share (pence) 0.11 (0.10) (0.11) 11.15 0.37 14.93

The weighted common variety of shares is calculated after adjusting for treasury shares of twenty-two,449,076 (30 June 2021: 19,710,942; 31 December 2021: 20,904,204).

There are not any convertible devices, derivatives or contingent share agreements in challenge, and subsequently no dilution affecting the return/(loss) per share. The fundamental return/(loss) per share is subsequently the identical because the diluted (loss)/return per share.

8.         Share capital

Allotted, known as up and totally paid shares of 1 penny every Unaudited
30 June 2022
Unaudited
30 June 2021
Audited
31 December 2021
Variety of shares 183,280,301 153,035,258 153,563,297
Nominal worth of allotted shares (£’000) 1,833 1,530 1,536
Voting rights (variety of shares internet of treasury shares) 160,831,225 133,324,316 132,659,093

Through the interval to 30 June 2022 the Firm bought 1,544,872 Extraordinary shares (nominal worth £15,449) for treasury at a price of £1,188,000. The entire variety of Extraordinary shares held in treasury as at 30 June 2022 was 22,449,076 (30 June 2021: 19,710,942; 31 December 2021: 20,904,204) representing 12.2 per cent. of the Extraordinary shares in challenge as at 30 June 2022.

Below the phrases of the Dividend Reinvestment Scheme, the next new Extraordinary shares of nominal worth 1 penny every had been allotted throughout the interval to 30 June 2022:

Date of allotment Variety of
shares allotted
Mixture
nominal worth
of shares
(£’000)
Situation value
(pence per share)
Internet
invested
(£’000)
Opening market value on allotment date (pence per share)
30 June 2022 715,031 7 80.03 554 76.50

Below the phrases of the Albion VCTs Prospectus Prime Up Provides 2021/22, the next new Extraordinary shares, of nominal worth 1 penny every, had been allotted throughout the interval to 30 June 2022:

Date of allotment Variety of shares allotted Mixture nominal worth of shares (£’000) Situation value (pence per share) Internet consideration obtained (£’000) Opening market value on allotment date (pence per share)
25 February 2022 1,308,032 13 81.90 1,055 77.00
25 February 2022 443,854 4 82.30 358 77.00
25 February 2022 12,172,712 122 82.80 9,828 77.00
31 March 2022 14,154,989 142 82.80 11,428 77.00
11 April 2022 170,608 2 81.90 138 77.00
11 April 2022 13,972 82.30 11 77.00
11 April 2022 737,806 7 82.80 596 77.00
  29,001,973 290   23,414  

9.         Provisions and important estimates

In accordance with the AIC SORP and FRS102, a provision for a efficiency incentive charge (“PIF”) is required to be estimated and accounted for within the monetary statements. The PIF is calculated on a five-year rolling common efficiency foundation, with a 5 per cent. hurdle utilized to the opening internet asset worth annually, which is in keeping with our present dividend goal. The primary 5 yr efficiency interval will bear in mind the audited outcomes of the 5 years ending 31 December 2023.

Any PIF will solely be paid on precise yr finish audited outcomes, and this provision is the Board’s finest estimate of the potential obligation referring to the inclusion of realised efficiency from 1 January 2019 to 30 June 2022 in any future five-year rolling intervals.

Essentially the most important assumption when calculating this quantity, is that of future efficiency. Audited monetary outcomes for the interval from 1 January 2019 to 31 December 2021 are included within the calculation; a forecast has been used for present yr efficiency and future years assume efficiency is achieved in keeping with the 5 yr historic rolling common. The supply included within the monetary statements has been calculated on this foundation and has been corroborated by a portfolio return evaluation utilizing applicable benchmarks.

The common return each year over every rolling 5 yr interval because the Firm’s inception in 2000 has been 5.85%. This smooths the efficiency by means of the varied financial occasions and cycles seen since inception. This has resulted in a provision of £562,000 at 30 June 2022.

10.      Commitments and contingencies
        As at 30 June 2022, the Firm had no monetary commitments in respect of investments (30 June 2021 and 31 December 2021: £nil).

There are not any contingencies or ensures of the Firm as at 30 June 2022 (30 June 2021 and 31 December 2021: £nil).

11.      Publish stability sheet occasions
Since 30 June 2022, the Firm has accomplished the next materials transactions:

  • Funding of £1,400,000 into a brand new portfolio firm, a Software program as a Service (SaaS) based mostly international monetary orchestration platform;
  • Funding of £846,000 into a brand new portfolio firm, who develop single-cell sequencing options;
  • Funding of £687,000 into a brand new portfolio firm, a SaaS platform to measure and handle human threat for enterprises; and
  • Funding of £590,000 into a brand new portfolio firm, a platform offering digital neurorehabilitation.

The Firm obtained authority to cancel the quantity standing to the credit score of its share premium and capital redemption reserves on the Common Assembly on 26 Could 2022. The aim of the proposal was to extend the distributable reserves out there to the Firm for the fee of dividends, the buyback of shares, and for different company functions. The proposal obtained the consent of the Court docket on 2 August 2022, and the adjustments have been registered at Firms Home. Over time, it will create further distributable reserves of £76.4 million.

12.        Associated social gathering transactions
Aside from transactions with the Supervisor as disclosed in notice 5, there are not any different associated social gathering transactions requiring disclosure.

13.         Going concern
The Board has performed an in depth evaluation of the Firm’s capability to satisfy its liabilities as they fall due. Money movement forecasts are up to date and mentioned quarterly at Board conferences and have been stress examined to permit for the forecast impression of the present financial local weather and more and more unstable geopolitical backdrop. The Board has revisited and up to date its evaluation of liquidity threat and concluded that it stays unchanged because the final Annual Report and Monetary Statements. Additional particulars will be discovered on web page 74 of these accounts.

The portfolio of investments is diversified by way of sector and the main money outflows of the Firm (specifically investments, dividends and share buy-backs) are inside the Firm’s management. Accordingly, after making diligent enquiries, the Administrators have an affordable expectation that the Firm has satisfactory money and liquid sources to proceed in operational existence for the foreseeable future. Because of this, the Administrators have adopted the going concern foundation in making ready this Half-yearly Monetary Report and that is in accordance with the Steering on Threat Administration, Inner Management and Associated Monetary and Enterprise Reporting issued by the Monetary Reporting Council in September 2014, and the following up to date Going concern, threat and viability steerage issued by the FRC as a result of Covid-19 in 2020.

14.        Different info
The knowledge set out on this Half-yearly Monetary Report doesn’t represent the Firm’s statutory accounts inside the phrases of part 434 of the Firms Act 2006 for the intervals ended 30 June 2022 and 30 June 2021 and is unaudited. The knowledge for the yr ended 31 December 2021 doesn’t represent statutory accounts inside the phrases of part 434 of the Firms Act 2006 and is derived from the statutory accounts for that monetary yr, which have been delivered to the Registrar of Firms. The Auditor reported on these accounts; their report was unqualified and didn’t comprise a press release underneath s498 (2) or (3) of the Firms Act 2006.

15.        Publication
This Half-yearly Monetary Report is being despatched to shareholders and copies can be made out there to the general public on the registered workplace of the Firm, Firms Home, the Nationwide Storage Mechanism and likewise electronically at www.albion.capital/funds/AATG, the place the Report will be accessed from the ‘Monetary Reviews and Circulars’ part.



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