Annual Financial Report>
Annual Financial Report
(Thomson Reuters ONE) - Albion Enterprise VCT PLCAs required by the UK Listing Authority's Disclosure and TransparencyRules 4.1 and 6.3, Albion Enterprise VCT PLC today makes public itsinformation relating to the Annual Report and Financial Statementsfor the year ended 31 March 2009.This announcement was approved by the Board of Directors on 2 July2009.This announcement has not been audited.Please click on the following link to view the full Annual Report andFinancial Statements (which have been audited) for the year to 31March 2009. The information contained in this link includesinformation as required by the Disclosure and Transparency Rules,including Rule 4.1.http://hugin.info/141807/R/1326934/312492.pdfAlternatively you may view the Annual Report and Financial Statementsat: www.albion-ventures.co.uk by clicking on the 'Our Funds' section.Investment ObjectivesThe aim of Albion Enterprise VCT ("the Company") is to provideinvestors with a regular and predictable source of income, combinedwith the prospect of longer term capital growth. Once fully invested,the Company intends to achieve this by investing up to 50 per cent.of the net funds raised in an asset-based portfolio of lower risk,ungeared businesses, principally operating in the leisure sector andrelated areas (the ''Asset-Based Portfolio''). The balance of the netfunds raised, other than funds retained for liquidity purposes, willbe invested in a portfolio of higher growth businesses across avariety of sectors of the UK economy. These will range from lowerrisk, income producing businesses to higher risk technology companies(the ''Growth Portfolio''). Funds awaiting investment in QualifyingInvestments or retained for liquidity purposes will be held in gilts,on deposit or invested in floating rate notes or similar instruments,in the latter two cases with banks with a Moody's credit rating of'A' or above.The Company's investment portfolio will thus be structured to providea balance between income and capital growth for the longer term. TheAsset-Based Portfolio is designed to provide stability and incomewhilst still maintaining the potential for capital growth. The GrowthPortfolio is intended to provide highly diversified exposure throughits portfolio of investments in unquoted UK companies.Financial Calendar+-------------------------------------------------------------------+| Annual General Meeting | 11 August 2009 || | ||--------------------------------------------------+----------------|| Record date for first dividend | 10 July 2009 || | ||--------------------------------------------------+----------------|| Payment of first dividend | 7 August 2009 || | ||--------------------------------------------------+----------------|| Announcement of interim results for the six | November 2009 || months ended 30 September 2009 | || | ||--------------------------------------------------+----------------|| Payment of second dividend | January 2010 || | |+-------------------------------------------------------------------+Financial Highlights+-------------------------------------------------------------------+| | 31 March 2009 | 31 March 2009 || | (pence per share) | (pence per || | | share) ||-------------------------------+-------------------+---------------|| Dividends paid per Ordinary | 1.65 | 0.70 || share | | ||-------------------------------+-------------------+---------------|| Revenue return per Ordinary | 2.10 | 2.80 || share | | ||-------------------------------+-------------------+---------------|| Capital loss per Ordinary | (5.90) | (2.50) || share | | ||-------------------------------+-------------------+---------------|| Net asset value per Ordinary | 88.80 | 94.00 || share | | |+-------------------------------------------------------------------+Net asset value total return to shareholders since launch:+-------------------------------------------------------------------+| | | 31 March 2009 || | | (pence per share) ||-------------------------------------------+---+-------------------|| | | ||-------------------------------------------+---+-------------------|| Total dividends paid during the period | | || ended 31 March 2008* | | 0.70 ||-------------------------------------------+---+-------------------|| Total dividends paid during the year | | || ended 31 March 2009* | | 1.65 ||-------------------------------------------+---+-------------------|| Total dividends paid to 31 March 2009 | | 2.35 ||-------------------------------------------+---+-------------------|| Net asset value as at 31 March 2009 | | 88.80 ||-------------------------------------------+---+-------------------|| Total net asset value return to 31 March | | || 2009 | | 91.15 |+-------------------------------------------------------------------+* The dividend of 0.7 pence per share paid during the period ended 31March 2008 and first dividend of 0.4 pence per share paid during theyear ended 31 March 2009 were paid to shareholders who subscribed inthe 2006/2007 offer only.In addition to the above dividends, the Company will pay a firstdividend of 1 penny per share on 7 August 2009 to shareholders on theregister as at 10 July 2009.Chairman's statementIntroductionThe results for the Company's second period of operation, being theyear to 31 March 2009, reflect the worsening economic environment.Nevertheless, the Company's total negative return of 3.8 pence pershare (or 4.3 per cent. of net asset value) compares favourably tothe decline in the FTSE All Share Index (including dividends paid) of29.3 per cent. over the same period. This is principally due to thefact that the Company still has high levels of cash available forinvestment.Under the Further Offer for subscription launched in December 2007, atotal of 10,567,738 shares were issued on 4 April 2008 at a price of100 pence each. The net proceeds of the Offer were £9,986,512. Theseshares were admitted to the Official List and to the London StockExchange on 7 April 2008.Investment progress and prospectsA total of £4.3 million was invested in three existing and eight newinvestee companies during the year, taking the total portfolio tosixteen qualifying investments. While trading in many of ourasset-backed, leisure-oriented businesses remains resilient,valuations have fallen in line with the decline generally in thecommercial property market, particularly for those investments madeduring 2007. In addition, there has been slower progress thanexpected in some of our growth investments, which has also resultedin partial write downs. Nevertheless, your Company's policy ofensuring that it has a first charge, wherever possible, over investeecompanies' assets is helping to mitigate the adverse effect of theeconomic down-turn. In addition, your Company has considerable cashresources which will enable it to take advantage of the lowervaluations now becoming apparent.The current very low interest rates available in the market, however,lead us to take a cautious view over the income prospects of theCompany in the current year, though we would currently expect adividend of not less than 2 pence per share to be paid during theyear.Recovery of historic VATFollowing a period of lobbying by the Association of InvestmentCompanies, the welcome review of the position regarding the exemptionof management fees from VAT by H.M. Revenue & Customs in July 2008has meant that the Manager is able to reclaim historic VAT that ithad previously charged to the Company. A reclaim of historic VAT of£38,000 (before the deduction of tax) has been credited to theaccounts in respect of the repayment. Further details regarding thisclaim, and its disclosure, are shown in note 5 of this announcement.With effect from 1 October 2008, all management and administrationfees are considered exempt from VAT.Risks and uncertaintiesThe strongly negative outlook of the UK economy continues to be thekey risk affecting the Company and, as mentioned above, we are seeingthe effects of this in certain sectors of our portfolio.Nevertheless, despite pressures on individual investee companies, theportfolio as a whole remains cash generative and it remains ourpolicy to ensure that investee companies have no external bankborrowings. Meanwhile, investment opportunities continue to arise atattractive valuations in a variety of sectors. Among these is thehealthcare sector, which is one of our core areas of concentration.Detailed analysis of the other risks and uncertainties facing thebusiness is shown in note 12 of this announcement.Results and dividendsThe revenue return after tax was £640,000 enabling total dividends tobe paid of 1.65 pence per share. Net asset value per share at 31March 2009 was 88.8 pence (31 March 2008: 94.0 pence). Your Boardannounces a first dividend for the year of 1 penny per share (2008:0.4 pence per share) which will be paid on 7 August 2009 to thoseshareholders on the register as at 10 July 2009.Discount management and share buy-backsIt remains the Board's policy to buy back shares in the market,subject to the overall constraint that such purchases are in theCompany's interest, including the maintenance of sufficient resourcesfor the investment in existing and new portfolio companies and thecontinued payment of dividends to shareholders. Given the high levelof volatility and the adverse movements apparent in all markets, thediscount to net asset value per share at which shares are bought backwill widen from that which has applied historically.Change of the Manager and name changeThe business of Close Ventures Limited was acquired by AlbionVentures LLP ("Albion Ventures") from Close Brothers Group plc("Close") on 23 January 2009. Albion Ventures has been formed by theexecutive directors of Close Ventures Limited; meanwhile Close willcontinue to have an investment in the business. The Company'smanagement contract has been novated from Close Ventures to AlbionVentures under exactly the same terms as the existing agreement. Theinvestment approach of Albion Ventures and the investment policy ofthe Company are also unchanged, with a continued emphasis on buildingup a broad portfolio of investee companies normally with no externalbank borrowings and the maintenance of a regular dividend yield. Asa result of this change, the Company Secretary has changed to AlbionVentures LLP, and the Company changed its name from Close EnterpriseVCT PLC to Albion Enterprise VCT PLC at a General Meeting on 20 March2009.Patrick ReeveDirector 2 July 2009Manager's reportAn analysis of Albion Enterprise VCT PLC's investment portfolio as at31 March 2009 is shown below.Split of portfolio valuation by sector as at 31 March 2009http://hugin.info/141807/R/1326934/312484.pdfSource: Albion Ventures LLPCare has been taken to create a spread across a broad number ofsectors, with those that are asset-backed and consumer based such aspubs and cinemas, being balanced by higher growth businesses in areassuch as healthcare and environmental sectors.New investmentsNew investments made during the year include the following: £430,000in Dexela Limited, which designs and develops scanners for diagnosingbreast cancer; £457,000 in Prime Care Holdings Limited, whichprovides domiciliary care for the elderly in the south of England;£167,000 in Mirada Medical Limited, which provides software tointegrate medical diagnostics; £555,000 in Forth Photonics Limited,which provides equipment for detection of cervical cancer; £950,000in Bravo Inns II Limited, which is purchasing pubs in the north westof England; £1 million in Droxford Hospital Limited,which is in theprocess of acquiring a site for the development of a mental hospital;and £560,000 in Vibrant Energy Surveys Limited, a provider ofenvironmental efficiency certificates within the property sector.As the above chart shows, emphasis is being placed on investmentsinvolved in the healthcare sector as we believe this is one of thesectors (along with the environmental sector) that is likely to showa level of resilience in growth in the current difficult economicclimate.Portfolio reviewA number of companies in the portfolio are performing strongly, withparticular growth being shown by Opta Sports Data Limited (whichprovides sports analysis for the media sector) and Bravo Inns IILimited (where a number of public houses were bought recently atattractive prices). In addition Prime Care Holdings Limited isshowing promising organic growth since we first invested. Againstthis, Resorthoppa Limited, which provides transfer services fromairports to hotels within the travel sector, was hit both bypressures on the travel sector in general and also by the strength ofthe euro. This led to the company being merged withLowcosttravelgroup Limited, a company in which a number of the otherVCTs managed by Albion Ventures LLP have an investment. In addition,a partial provision has been made against the investment in VibrantEnergy Surveys Limited. The company was affected last year by thesevere slow down in residential housing sales and this in turn led tothe restructuring of the company's management.New investment opportunitiesWe are already building up a strong and diversified portfolio ofhealthcare related businesses. In addition, we aim to ensure thatthe environmental sector also forms a sizeable portion of theCompany's investment portfolio. The Company currently hasconsiderable cash balances, and we continue to review a number ofopportunities at attractive valuations in both these and other areassuch as the leisure sector, where a lack of bank financing has led tosome interesting opportunities for cautious purchasers.Details of related party transactions are shown in note 15 of thisannouncement.Albion Ventures LLPInvestment Manager 2 July 2009Responsibility StatementIn preparing these financial statements for the year to 31 March2009, the Directors of the Company, being Maxwell Packe, Lady Balfourof Burleigh, Lord St. John of Bletso and Patrick Reeve, confirm thatto the best of their knowledge:-summary financial information contained in this announcement and thefull Annual Report and Financial Statements for the year ended 31March 2009 for the Company has been prepared in accordance withUnited Kingdom Generally Accepted Accounting Practice (UK AccountingStandards and applicable law) and give a true and fair view of theassets, liabilities, financial position and profit and loss of theCompany for the year ended 31 March 2009 as required by DTR 4.2.R;-the Chairman's Statement and Manager's Report include a fair reviewof the information required by DTR 4.2.7R (indication of importantevents during the year ended 31 March 2009 and description ofprincipal risks and uncertainties that the Company faces); and-the Chairman's Statement and Manager's Report include a fair reviewof the information required by DTR 4.2.8R (disclosure of relatedparties transactions and changes therein).A detailed "Statement of Directors' responsibilities for thepreparation of the Company's financial statements" is containedwithin the full audited Annual Report and Financial Statements whichis attached to this announcement.By order of the BoardPatrick ReeveChairman2 July 2009 Income Statement+----------------------------------------------------------------------------------+| | | Year ended |From 7 November 2006 to||-----------------------------+----+-----------------------+-----------------------|| | | 31 March 2009 | 31 March 2008 ||-----------------------------+----+-----------------------+-----------------------|| | |Revenue|Capital| Total| Revenue| Capital|Total||-----------------------------+----+-------+-------+-------+--------+--------+-----|| |Note| £'000| £'000| £'000| £'000| £'000|£'000||-----------------------------+----+-------+-------+-------+--------+--------+-----|| | | | | | | | ||Losses on investments |3 | -|(1,434)|(1,434)| -| (262)|(262)||-----------------------------+----+-------+-------+-------+--------+--------+-----||Investment income |4 | 1,248| -| 1,248| 1,065| -|1,065||-----------------------------+----+-------+-------+-------+--------+--------+-----||Investment management fees | | (181)| (542)| (723)| (117)| (352)|(469)||-----------------------------+----+-------+-------+-------+--------+--------+-----||Recovery of VAT |5 | 10| 28| 38| -| -| -||-----------------------------+----+-------+-------+-------+--------+--------+-----||Other expenses | | (203)| -| (203)| (175)| -|(175)||-----------------------------+----+-------+-------+-------+--------+--------+-----|| | | | | | | | ||Return/(loss) on ordinary | | | | | | | ||activities before tax | | 874|(1,948)|(1,074)| 773| (614)| 159||-----------------------------+----+-------+-------+-------+--------+--------+-----||Tax (charge)/credit on | | | | | | | ||ordinary activities |6 | (234)| 153| (81)| (214)| 114|(100)||-----------------------------+----+-------+-------+-------+--------+--------+-----||Return/(loss) attributable to| | | | | | | ||shareholders | | 640|(1,795)|(1,155)| 559| (500)| 59||-----------------------------+----+-------+-------+-------+--------+--------+-----||Basic and diluted | | | | | | | ||return/(loss) per share | | | | | | | ||(pence)* |8 | 2.1| (5.9)| (3.8)| 2.8| (2.5)| 0.3|+----------------------------------------------------------------------------------+*(excluding treasury shares)The total column of this Income Statement represents the profit andloss account of the Company. The supplementary revenue and capitalcolumns have been prepared in accordance with the Association ofInvestment Companies' Statement of Recommended Practice.The accompanying notes form an integral part of this announcement.All revenue and capital items in the above statement derive fromcontinuing operations.There are no recognised gains or losses other than the results forthe year disclosed above. Accordingly a statement of total recognisedgains and losses is not required.The difference between the reported loss on ordinary activitiesbefore tax and the historical profit is due to the fair valuemovements on investments. As a result a note on historical costprofit and losses has not been prepared.Balance Sheet+-------------------------------------------------------------------+| | | | ||---------------------------------+------+---------------+----------|| | | | 31 March || | | 31 March 2009 | 2008 ||---------------------------------+------+---------------+----------|| | Note | £'000 | £'000 ||---------------------------------+------+---------------+----------|| | | | ||---------------------------------+------+---------------+----------|| Fixed asset investments | | 5,804 | 2,847 ||---------------------------------+------+---------------+----------|| | | | ||---------------------------------+------+---------------+----------|| Current Assets | | | ||---------------------------------+------+---------------+----------|| Trade and other debtors | | 30 | 141 ||---------------------------------+------+---------------+----------|| Current asset investments | | 12,123 | 1,474 ||---------------------------------+------+---------------+----------|| Cash at bank | | 9,319 | 14,363 ||---------------------------------+------+---------------+----------|| Total current assets | | 21,472 | 15,978 ||---------------------------------+------+---------------+----------|| | | | ||---------------------------------+------+---------------+----------|| Creditors: amounts falling due | | | || within one year | | (348) | (221) ||---------------------------------+------+---------------+----------|| | | | ||---------------------------------+------+---------------+----------|| Net current assets | | 21,124 | 15,757 ||---------------------------------+------+---------------+----------|| | | | ||---------------------------------+------+---------------+----------|| Net assets | | 26,928 | 18,604 ||---------------------------------+------+---------------+----------|| | | | ||---------------------------------+------+---------------+----------|| Capital and reserves | | | ||---------------------------------+------+---------------+----------|| Called up share capital | 9 | 15,180 | 9,897 ||---------------------------------+------+---------------+----------|| Special reserve | | 13,473 | 8,787 ||---------------------------------+------+---------------+----------|| Treasury shares reserve | | (31) | - ||---------------------------------+------+---------------+----------|| Realised capital reserve | | (614) | (238) ||---------------------------------+------+---------------+----------|| Unrealised capital reserve | | (1,681) | (262) ||---------------------------------+------+---------------+----------|| Revenue reserve | | 601 | 420 ||---------------------------------+------+---------------+----------|| Total equity shareholders' | | | || funds | | 26,928 | 18,604 ||---------------------------------+------+---------------+----------|| | | | ||---------------------------------+------+---------------+----------|| Basic and diluted net asset | | | || value per share (pence)* | 10 | 88.8 | 94.0 |+-------------------------------------------------------------------+*(excluding treasury shares)The accompanying notes form an integral part of this announcement.Reconciliation of Movement in Shareholders' Funds+-------------------------------------------------------------------------------------------------------+| |Called-up| | |Treasury|Realised|Unrealised| | || | share| Share| Special| shares| capital| capital| Revenue| || | capital|premium|reserve*|reserve*|reserve*| reserve*|reserve*| Total||------------------------------+---------+-------+--------+--------+--------+----------+--------+-------|| | £'000| £'000| £'000| £'000| £'000| £'000| £'000| £'000||------------------------------+---------+-------+--------+--------+--------+----------+--------+-------||As at 1 April 2008 | 9,897| -| 8,787| -| (238)| (262)| 420| 18,604||------------------------------+---------+-------+--------+--------+--------+----------+--------+-------||Issue of share capital | 5,283| 5,283| -| -| -| -| -| 10,566||------------------------------+---------+-------+--------+--------+--------+----------+--------+-------||Issue costs | -| (580)| -| -| -| -| -| (580)||------------------------------+---------+-------+--------+--------+--------+----------+--------+-------||Cost of cancellation of share | | | | | | | | ||premium account | -| -| (17)| -| -| -| -| (17)||------------------------------+---------+-------+--------+--------+--------+----------+--------+-------||Cancellation of share premium | | | | | | | | ||account | -|(4,703)| 4,703| -| -| -| -| -||------------------------------+---------+-------+--------+--------+--------+----------+--------+-------||Capitalised investment | | | | | | | | ||management fees | -| -| -| -| (542)| -| -| (542)||------------------------------+---------+-------+--------+--------+--------+----------+--------+-------||Recovery of VAT capitalised | -| -| -| -| 28| -| -| 28||------------------------------+---------+-------+--------+--------+--------+----------+--------+-------||Tax relief on costs charged to| | | | | | | | ||capital | -| -| -| -| 153| -| -| 153||------------------------------+---------+-------+--------+--------+--------+----------+--------+-------||Purchase of own treasury | | | | | | | | ||shares | -| -| -| (31)| -| -| -| (31)||------------------------------+---------+-------+--------+--------+--------+----------+--------+-------||Net realised losses on | | | | | | | | ||investments in the year | -| -| -| -| (15)| -| -| (15)||------------------------------+---------+-------+--------+--------+--------+----------+--------+-------||Unrealised losses on | | | | | | | | ||investments | -| -| -| -| -| (1,419)| -|(1,419)||------------------------------+---------+-------+--------+--------+--------+----------+--------+-------||Revenue return attributable to| | | | | | | | ||shareholders | -| -| -| -| -| -| 640| 640||------------------------------+---------+-------+--------+--------+--------+----------+--------+-------||Dividends paid | -| -| -| -| -| -| (459)| (459)||------------------------------+---------+-------+--------+--------+--------+----------+--------+-------||As at 31 March 2009 | 15,180| -| 13,473| (31)| (614)| (1,681)| 601| 26,928|+-------------------------------------------------------------------------------------------------------++-------------------------------------------------------------------------------------------------------+| |Called-up| | |Treasury|Realised|Unrealised| | || | share| Share| Special| shares| capital| capital| Revenue| || | capital|premium|reserve*|reserve*|reserve*| reserve*|reserve*| Total||------------------------------+---------+-------+--------+--------+--------+----------+--------+-------|| | £'000| £'000| £'000| £'000| £'000| £'000| £'000| £'000||------------------------------+---------+-------+--------+--------+--------+----------+--------+-------||As at 7 November 2006 | -| -| -| -| -| -| -| -||------------------------------+---------+-------+--------+--------+--------+----------+--------+-------||Issue of share capital | 9,897| 9,897| -| -| -| -| -| 19,794||------------------------------+---------+-------+--------+--------+--------+----------+--------+-------||Issue costs | -|(1,089)| -| -| -| -| -|(1,089)||------------------------------+---------+-------+--------+--------+--------+----------+--------+-------||Cost of cancellation of share | | | | | | | | ||premium account | -| -| (21)| -| -| -| -| (21)||------------------------------+---------+-------+--------+--------+--------+----------+--------+-------||Cancellation of share premium | | | | | | | | ||account | -|(8,808)| 8,808| -| -| -| -| -||------------------------------+---------+-------+--------+--------+--------+----------+--------+-------||Capitalised investment | | | | | | | | ||management fees | -| -| -| -| (352)| -| -| (352)||------------------------------+---------+-------+--------+--------+--------+----------+--------+-------||Tax relief on costs charged to| | | | | | | | ||capital | -| -| -| -| 114| -| -| 114||------------------------------+---------+-------+--------+--------+--------+----------+--------+-------||Unrealised losses on | | | | | | | | ||investments | -| -| -| -| -| (262)| -| (262)||------------------------------+---------+-------+--------+--------+--------+----------+--------+-------||Revenue return attributable to| | | | | | | | ||shareholders | -| -| -| -| -| -| 559| 559||------------------------------+---------+-------+--------+--------+--------+----------+--------+-------||Dividends paid | -| -| -| -| -| -| (139)| (139)||------------------------------+---------+-------+--------+--------+--------+----------+--------+-------||As at 31 March 2008 | 9,897| -| 8,787| -| (238)| (262)| 420| 18,604|+-------------------------------------------------------------------------------------------------------+Included within these reserves is an amount of £11,748,000 (2008:£8,707,000) which is considered distributable. The Special reservehas been treated as distributable in determining the amountsavailable for distribution.Cash Flow Statement+-------------------------------------------------------------------+| | | | From || | | | 7 November || | | Year ended | 2006 || | | 31 March | To 31 March || | | 2009 | 2008 || | Note | £'000 | £'000 ||--------------------------------+------+-------------+-------------|| Operating activities | | | ||--------------------------------+------+-------------+-------------|| Investment income received | | 776 | 138 ||--------------------------------+------+-------------+-------------|| Deposit interest received | | 311 | 903 ||--------------------------------+------+-------------+-------------|| Investment management fees | | | || paid | | (527) | (408) ||--------------------------------+------+-------------+-------------|| Other cash payments | | (188) | (239) ||--------------------------------+------+-------------+-------------|| Net cash inflow from operating | | | || activities | 11 | 372 | 394 ||--------------------------------+------+-------------+-------------|| | | | ||--------------------------------+------+-------------+-------------|| Taxation | | | ||--------------------------------+------+-------------+-------------|| UK corporation tax paid | | (126) | - ||--------------------------------+------+-------------+-------------|| | | | ||--------------------------------+------+-------------+-------------|| Capital expenditure and | | | || financial investments | | | ||--------------------------------+------+-------------+-------------|| Purchase of investments | | (4,286) | (3,078) ||--------------------------------+------+-------------+-------------|| Net cash outflow from | | | || investing activities | | (4,286) | (3,078) ||--------------------------------+------+-------------+-------------|| | | | ||--------------------------------+------+-------------+-------------|| Management of liquid resources | | | ||--------------------------------+------+-------------+-------------|| Purchase of current asset | | | || investments | | (22,544) | (1,497) ||--------------------------------+------+-------------+-------------|| Disposal of current asset | | | || investments | | 11,933 | - ||--------------------------------+------+-------------+-------------|| Net cash outflow from liquid | | | || resources | | (10,611) | (1,497) ||--------------------------------+------+-------------+-------------|| | | | ||--------------------------------+------+-------------+-------------|| Equity dividends paid | | | ||--------------------------------+------+-------------+-------------|| Dividends paid | 7 | (459) | (139) ||--------------------------------+------+-------------+-------------|| Net cash outflow before | | | || financing | | (15,110) | (4,320) ||--------------------------------+------+-------------+-------------|| | | | ||--------------------------------+------+-------------+-------------|| Financing | | | ||--------------------------------+------+-------------+-------------|| Issue of ordinary share | | | || capital | | 10,568 | 19,794 ||--------------------------------+------+-------------+-------------|| Purchase of own shares | | (24) | - ||--------------------------------+------+-------------+-------------|| Expenses of issue of ordinary | | | || share capital | | (478) | (1,111) ||--------------------------------+------+-------------+-------------|| Net cash inflow from financing | | 10,066 | 18,683 ||--------------------------------+------+-------------+-------------|| | | | ||--------------------------------+------+-------------+-------------|| Cash (outflow)/inflow in the | | | || year | | (5,044) | 14,363 |+-------------------------------------------------------------------+Notes to the announcement1. Accounting conventionThe financial statements have been prepared in accordance with thehistorical cost convention, modified to include the revaluation ofinvestments, in accordance with applicable United Kingdom law andaccounting standards and with the Statement of Recommended Practice"Financial Statements of Investment Companies" ("SORP") issued by theAssociation of Investment Companies ("AIC") in January 2009. AlbionEnterprise VCT PLC has decided to adopt the principles of the January2009 SORP earlier than the mandatory date. Accounting policies havebeen applied consistently in current and prior periods except for theclassification of floating rate notes as explained below.2. Accounting policiesFixed and current asset investmentsUnquoted equity investmentsIn accordance with FRS 26 "Financial Instruments Measurement",unquoted equity investments are designated as fair value throughprofit or loss ("FVTPL"). Unquoted investments' fair value isdetermined by the Directors in accordance with the InternationalPrivate Equity and Venture Capital Valuation Guidelines (IPEVCVguidelines).Fair value movements on equity investments and gains and lossesarising on the disposal of investments are reflected in the capitalcolumn of the Income Statement in accordance with the AIC SORP.Realised gains or losses on the sale of investments will be reflectedin the Realised capital reserve, and unrealised gains or lossesarising from the revaluation of investments will be reflected in theUnrealised capital reserve.Warrants, convertibles and unquoted equity derived instrumentsWarrants, convertibles and unquoted equity derived instruments areonly valued if their exercise or contractual conversion terms wouldallow them to be exercised or converted as at the balance sheet date,and if there is additional value to the Company in exercising orconverting as at the balance sheet date. Otherwise these instrumentsare held at nil value. The valuation techniques used are those usedfor the underlying equity investment.Unquoted loan stock and Euro commercial paperUnquoted loan stock and Euro commercial paper are classified as loansand receivables in accordance with FRS 26 and carried at amortisedcost using the Effective Interest Rate method ("EIR") lessimpairment. Movements in the amortised cost relating to interestincome are reflected in the revenue column of the Income Statement,and hence are reflected in the Revenue reserve, and movements inrespect of capital provisions are reflected in the capital column ofthe Income Statement and are reflected in the Realised capitalreserve following sale, or in the Unrealised capital reserve onrevaluation.Loan stocks which are not impaired or past due are considered fullyperforming in terms of contractual interest and capital repaymentsand the Board does not consider that there is a current likelihood ofa shortfall on security cover for these assets. For unquoted loanstock, the amount of the impairment is the difference between theasset's cost and the present value of estimated future cash flows,discounted at the effective interest rate.Unquoted loan stocks are classified as fixed asset investments in thebalance sheet.Floating rate notesIn accordance with FRS 26, floating rate notes are designated asFVTPL. Floating rate notes are valued at market bid price at thebalance sheet date.Floating rate notes and Euro commercial paper are classified ascurrent asset investments as they are investments held for the shortterm and comparative classification in the Balance Sheet has beenrestated accordingly.Investments are recognised as financial assets on legal completion ofthe investment contract and are de-recognised on legal completion ofthe sale of an investment.Loan stock accrued interest is recognised in the Balance Sheet aspart of the carrying value of the loans and receivables at the end ofeach reporting period.It is not the Company's policy to exercise control or significantinfluence over investee companies. Therefore in accordance with theexemptions under FRS 9 "Associates and joint ventures", thoseundertakings in which the Company holds more than 20 per cent. of theequity are not regarded as associated undertakings.Investment incomeUnquoted equity incomeDividend income is not recognised as part of the fair value movementof an investment, but is recognised separately as investment incomethrough the Revenue reserve when a share becomes ex-dividend.Unquoted loan stock, Euro commercial paper income and otherpreferred incomeThe returns on non-equity shares and debt securities are recognisedon a time apportionment basis using an effective interest rate overthe life of the financial instrument. Income which is not capable ofbeing received within a reasonable period of time is reflected in thecapital value of the investment.Bank interest incomeInterest income is recognised on an accrual basis using the rate ofinterest agreed with the bank.Floating rate note incomeFloating rate note income is recognised on an accruals basis usingthe interest rate applicable to the floating rate note at that time.Treasury gilt edged stock incomeTreasury gilt income is recognised on an accruals basis using theinterest rate applicable to the treasury gilt.Investment management fees and expensesAll expenses have been accounted for on an accruals basis. Expensesare charged through the Revenue account except the following whichare charged through the Realised capital reserve: * 75 per cent. of Management fees are allocated to the capital account to the extent that these relate to an enhancement in the value of the investments. This is in line with the Board's expectation that over the long term 75 per cent. of the Company's investment returns will be in the form of capital gains; and * expenses which are incidental to the purchase or disposal of an investment are charged through the Realised capital reserve.Under the terms of the Management Agreement, total expenses includingmanagement fees and excluding performance fees will not exceed 3.5per cent. of net asset value per annum.TaxationTaxation is applied on a current basis in accordance with FRS 16"Current tax". Taxation associated with capital expenses is appliedin accordance with the SORP. In accordance with FRS 19 "Deferredtax", deferred taxation is provided in full on timing differencesthat result in an obligation at the balance sheet date to pay moretax or a right to pay less tax, at a future date, at rates expectedto apply when they crystallise based on current tax rates and law.Timing differences arise from the inclusion of items of income andexpenditure in taxation computations in periods different from thosein which they are included in the financial statements.Deferred tax assets are recognised to the extent that it is regardedas more likely than not that they will be recovered.The specific nature of taxation of venture capital trusts means thatit is unlikely that any deferred tax will arise. The Directors haveconsidered the requirements of FRS 19 and do not believe that anyprovision should be made.Performance incentive feeIn the event that a performance incentive fee crystallises, the feewill be allocated between Revenue and Realised capital reserves basedupon the proportion to which the calculation of the fee isattributable to revenue and capital returns.ReservesRealised capital reservesThe following are disclosed in this reserve: * gains and losses compared to cost on the realisation of investments; and * expenses, together with the related taxation effect, charged in accordance with the above policies.Unrealised capital reservesIncreases and decreases in the valuation of investments held at theyear end, against cost are disclosed in this reserve.Special reserveThis reserve was created on the cancellation of the Company's sharepremium account, is distributable and amongst other purposes can beused for making market purchases and effecting tender offers ofOrdinary shares, offsetting of losses to enable the Company to paydividends, or can be used for the same purposes that the Companycould use a Share premium account.Treasury shares reserveThis reserve accounts for amounts by which the distributable reservesof the Company are diminished through the repurchase of the Company'sown shares for treasury.DividendsIn accordance with FRS 21 "Events after the balance sheet date",dividends declared by the Company are accounted for in the period inwhich the dividend has been paid or approved by shareholders in anAnnual General Meeting.3. Losses on investments+-------------------------------------------------------------------+| | | | | From || | | | | 7 November || | | | Year ended | 2006 || | | | 31 March | to 31 March || | | | 2009 | 2008 ||------------------+-----------------+---+------------+-------------|| | | | £'000 | £'000 ||------------------------------------+---+------------+-------------|| Unrealised losses on fixed | | | | || asset investments held at fair | | | | || value through profit or loss | | | | || account | | | (1,251) | (240) ||--------------------------------+---+---+------------+-------------|| | | | | ||--------------------------------+---+---+------------+-------------|| Unrealised losses on | | | | || investments held at amortised | | | | || cost | | | (108) | - ||--------------------------------+---+---+------------+-------------|| Unrealised losses on fixed | | | | || asset investments | | | (1,359) | (240) ||--------------------------------+---+---+------------+-------------|| | | | | ||--------------------------------+---+---+------------+-------------|| Unrealised losses on current | | | | || asset investments held at fair | | | | || value through profit or loss | | | | || account | | | (60) | (22) ||--------------------------------+---+---+------------+-------------|| Unrealised losses sub total | | | (1,419) | (262) ||--------------------------------+---+---+------------+-------------|| Realised losses on current | | | | || asset investments held at fair | | | | || value through profit or loss | | | | || account | | | (15) | - ||--------------------------------+---+---+------------+-------------|| Realised losses sub total | | | (15) | - ||--------------------------------+---+---+------------+-------------|| | | | | ||--------------------------------+---+---+------------+-------------|| Total | | | (1,434) | (262) |+-------------------------------------------------------------------+Investments valued on amortised cost basis are unquoted loan stockinvestments as described in note 2.4. Investment income+-------------------------------------------------------------------+| | | From || | Year ended | 7 November 2006 || | 31 March | to 31 March || | 2009 | 2008 ||------------------------------------+------------+-----------------|| | £'000 | £'000 ||------------------------------------+------------+-----------------|| Income recognised on investments | | || held at fair value through profit | | || or loss | | ||------------------------------------+------------+-----------------|| Floating rate note interest | 317 | 61 ||------------------------------------+------------+-----------------|| Bank deposit interest | 312 | 913 ||------------------------------------+------------+-----------------|| Treasury gilt edged stock interest | 348 | - ||------------------------------------+------------+-----------------|| | 977 | 974 ||------------------------------------+------------+-----------------|| Income recognised on investments | | || held at amortised cost | | ||------------------------------------+------------+-----------------|| Return on loan stock investments | 159 | 91 ||------------------------------------+------------+-----------------|| Euro commercial paper interest | 112 | - ||------------------------------------+------------+-----------------|| | 1,248 | 1,065 |+-------------------------------------------------------------------+Interest income earned on impaired investments at 31 March 2009amounted to £41,000 (2008: nil). These investments are held atamortised cost.5. Recovery of VATHMRC issued a business briefing on 24 July 2008 which permitted therecovery of historic VAT that had been charged on management fees,and which made these fees exempt from VAT with effect from 1 October2008.The Manager, Albion Ventures LLP has made a claim for the historicVAT that Albion Enterprise VCT PLC has paid on management fees.During the year, the Company received a historic VAT payment of£94,000 (before the deduction of tax) prior to off-setting anincrease in management fees of £56,000 due as a result of theincrease in the net asset value for the respective periods andresultant recovery of fees subject to an expense cap.A net sum of £38,000 has been recognised as a separate item in theIncome Statement, allocated between revenue and capital return in thesame proportion as that which the original VAT has been charged. Anadditional tax charge of £11,000 is payable on this recovery ofhistoric VAT and this is reflected in the tax charge shown in theIncome Statement.It is possible that further amounts may be recoverable in due course;however, the Directors are at this stage unable to quantify theamounts involved.6. Tax charge/(credit) on ordinary activities+---------------------------------------------------------------------+| | |From 7 November 2006 to|| |Year ended 31 March 2009| 31 March 2008 ||--------------------+------------------------+-----------------------|| | Revenue| Capital| Total| Revenue| Capital|Total|| | £'000| £'000| £'000| £'000| £'000|£'000||--------------------+--------+--------+------+--------+--------+-----||UK corporation tax | | | | | | ||in respect of the | | | | | | ||current year | 234| (153)| 81| 214| (114)| 100||--------------------+--------+--------+------+--------+--------+-----|| | | | | | | |+---------------------------------------------------------------------+The UK government changed the rate of UK corporation tax rate from 30per cent. to 28 per cent. with effect from 1 April 2008. The taxcharge for the year is lower than the standard rate of corporationtax of 28 per cent. (2008: 30 per cent.). The differences areexplained below.+-------------------------------------------------------------------+| | | From || | Year ended | 7 November 2006 to || | 31 March | 31 March || | 2009 | 2008 || | £'000 | £'000 ||---------------------------------+------------+--------------------|| (Loss)/return on ordinary | (1,074) | 159 || activities before tax | | ||---------------------------------+------------+--------------------|| Tax on (loss)/profit at the | (300) | 48 || standard rate | | ||---------------------------------+------------+--------------------|| Factors affecting the charge: | | ||---------------------------------+------------+--------------------|| Capital losses not subject to | | || taxation | 401 | 79 ||---------------------------------+------------+--------------------|| Marginal relief | (20) | (27) ||---------------------------------+------------+--------------------|| | 81 | 100 |+-------------------------------------------------------------------+Notes(i) Venture Capital Trusts are not subject to corporationtax on capital gains.(ii) Tax relief on expenses charged to capital has beendetermined by allocating tax relief to expenses by reference to theapplicable corporation tax rate of 28 per cent. and allocating therelief between revenue and capital in accordance with the SORP.(iii) No deferred tax asset or liability has arisen in theyear.7. Dividends+-------------------------------------------------------------------+| | | From 7 November 2006 to || | Year ended 31 March 2009 | 31 March 2008 ||-----------+---------------------------+---------------------------|| | Revenue | Capital | Total | Revenue | Capital | Total || | £'000 | £'000 | £'000 | £'000 | £'000 | £'000 ||-----------+---------+---------+-------+---------+---------+-------|| Dividend | | | | | | || of 0.7p | | | | | | || per share | | | | | | || paid on | | | | | | || 28 | | | | | | || December | | | | | | || 2007 | - | - | - | 139 | - | 139 ||-----------+---------+---------+-------+---------+---------+-------|| Dividend | | | | | | || of 0.4p | | | | | | || per share | | | | | | || paid on | | | | | | || 15 August | | | | | | || 2008 | 79 | - | 79 | - | - | - ||-----------+---------+---------+-------+---------+---------+-------|| Dividend | | | | | | || of 1.25p | | | | | | || per share | | | | | | || paid on 9 | | | | | | || January | | | | | | || 2009 | 380 | - | 380 | - | - | - ||-----------+---------+---------+-------+---------+---------+-------|| | 459 | - | 459 | 139 | - | 139 |+-------------------------------------------------------------------+In addition to the dividends summarised above, the Directors havedeclared a first revenue dividend for the year ending 31 March 2010of 1 penny per share to be paid on 7 August 2009 to shareholders onthe register as at 10 July 2009.8. Basic and diluted return/(loss) per share+-------------------------------------------------------------------------+| | |From 7 November 2006 to|| |Year ended 31 March 2009| 31 March 2008 ||------------------------+------------------------+-----------------------|| | Revenue|Capital| Total| Revenue| Capital|Total||------------------------+--------+-------+-------+--------+--------+-----||Return/(loss) | | | | | | ||attributable to equity | | | | | | ||shares (£'000) | 640|(1,795)|(1,155)| 559| (500)| 59||------------------------+--------+-------+-------+--------+--------+-----||Return/(loss) | | | | | | ||attributable per | | | | | | ||Ordinary share (pence) | | | | | | ||(basic and diluted) | 2.1| (5.9)| (3.8)| 2.8| (2.5)| 0.3|+-------------------------------------------------------------------------+Return per share has been calculated on 30,266,779 shares (2008:19,793,147), being the weighted average number of shares in issue forthe year, excluding treasury shares of 43,300 (2008: nil).There are no convertible instruments, derivatives or contingent shareagreements in issue for Albion Enterprise VCT PLC hence there are nodilution affects to the return per share. The basic return per shareis therefore the same as the diluted return per share.9. Called up share capital+-------------------------------------------------------------------+| | 31 March | 31 March || | 2009 | 2008 || | £'000 | £'000 ||---------------------------------------------+----------+----------|| Authorised | | ||---------------------------------------------+----------+----------|| 50,000,000 shares of 50p each (2008: | | || 50,000,000) | 25,000 | 25,000 ||---------------------------------------------+----------+----------|| | | || Allotted, called up and fully paid | | ||---------------------------------------------+----------+----------|| 30,360,885 shares of 50p each (2008: | | || 19,793,147) | 15,180 | 9,897 ||---------------------------------------------+----------+----------|| | | || Allotted, called up and fully paid | | || excluding treasury shares | | ||---------------------------------------------+----------+----------|| 30,317,585 shares of 50p each (2008: | | || 19,793,147) | 15,159 | 9,897 |+-------------------------------------------------------------------+The Company purchased 43,300 shares (2008: nil) to be held intreasury at a cost of £31,000 (2008: £nil) representing 0.1 per cent.of the shares in issue (excluding treasury shares) as at 1 April2008. The shares purchased for treasury were funded from the Treasuryshares reserve. The Company holds a total of 43,300 sharesrepresenting 0.1 per cent. of the shares in issue (excluding treasuryshares) as at 31 March 2009.At the Extraordinary General Meeting on 19 December 2007, an Ordinaryresolution was approved to increase the Company's authorised sharecapital from £20,000,000 to £25,000,000 by the creation of 10,000,000Ordinary shares of 50p each. These shares were used for the FurtherOffer for Subscription which closed on 4 April 2008.On 4 April 2008, 10,567,738 shares with a nominal value of 50 penceeach, (total nominal value of £5,283,869) were allotted in accordancewith the terms of the Offer for Subscription dated 23 November 2007.These were issued at a total value of 100 pence each. These shareswere admitted to the Official List of the UK Listing Authority on 7April 2008.+-------------------------------------------------------------------+| Date of | Number of | Aggregate | Consideration | Opening || allotment | shares | nominal | receive
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Datum: 02.07.2009 - 18:45 Uhr
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