Albion Dev VCT Albion Development Vct Plc: Interim Management Statement

 
TIDMAADV 
 
 
   Albion Development VCT PLC 
 
   Interim Management Statement 
 
   LEI Code 213800FDDMBD9QLHLB38 
 
   Introduction 
 
   I present Albion Development VCT PLC (the "Company")'s interim 
management statement for the period from 1 January 2020 to 31 March 
2020. 
 
   Impact of coronavirus (Covid-19) and Net asset value 
 
   The Board has been monitoring the ongoing disruption caused by the 
coronavirus (Covid-19) pandemic and its current impact on portfolio 
companies. These are unprecedented times with major uncertainty as to 
the ongoing economic and societal impact of the coronavirus (Covid-19) 
pandemic, the extent of which is still unknown. 
 
   In light of this, the Company announces its unaudited net asset value 
(NAV) as at 31 March 2020 of GBP71.85 million or 77.66 pence per share 
(excluding treasury shares), which represents a decrease of 5.81 pence 
per share (7.0 per cent.) since 31 December 2019. This reflects 
reductions across the portfolio, which is carried at fair value, as a 
result of market conditions arising from the healthcare pandemic. The 
Board has reassessed the carrying values of all companies within the 
portfolio and has reduced those which are affected by the current 
situation. The portfolio is well diversified and has weightings in 
sectors that are less badly affected by coronavirus (Covid-19) and many 
companies within the portfolio are well suited to operating in a remote 
environment. 
 
   The Company will pay a dividend of 2.25 pence per share on 29 May 2020 
to shareholders on the register on 11 May 2020. After accounting for the 
dividend the NAV will be 75.41 pence per share. 
 
   Fundraising and share issues 
 
   During the period from 1 January 2020 to 31 March 2020, the Company 
issued the following new Ordinary shares of nominal value 1 penny per 
share under the Albion VCTs Prospectus Top Up Offers 2019/20: 
 
 
 
 
                                          Issue price per share 
                     Number of shares      (including costs of    Net proceeds 
Date                      issued                  issue)             GBP'000 
----------------  ----------------------  ----------------------  ------------ 
31 January 2020                9,034,377          84.8p to 85.7p         7,549 
----------------  ----------------------  ----------------------  ------------ 
 
 
   Share buy-backs 
 
   Given the uncertainty on valuations caused by coronavirus (Covid-19) and 
its impact on financial markets in recent times, the Board agreed to 
suspend the Company's buy back operation on 18 March 2020 until such 
time as the Company could provide an updated valuation as at 31 March 
2020 of the portfolio and the Company's NAV. 
 
   With this announcement of the NAV of the Company at 31 March 2020, the 
Board is pleased to announce the resumption of its share buy-back policy, 
subject to the overall constraint that such purchases are in the 
Company's interest, including the maintenance of sufficient resources 
for investment in existing and new portfolio companies and the continued 
payment of dividends to shareholders. However, the level of share 
buybacks until the announcement of the Company's interim results, 
expected during September 2020 shall be limited to GBP500,000. 
 
   It is the Board's intention for such buy-backs to be at around a 5 per 
cent. discount to net asset value, so far as market conditions and 
liquidity permit. 
 
   Portfolio 
 
   The following investments have been made during the period from 1 
January 2020 to 31 March 2020: 
 
 
 
 
New 
investment     GBP000s                         Activity 
-------------  -------  ------------------------------------------------------ 
                          A software provider bringing real-time behavioural 
Concirrus                data analytics to the marine and transport insurance 
Limited          575                          industries 
-------------  -------  ------------------------------------------------------ 
Credit Kudos              Challenger credit bureau helping lenders optimise 
Limited          287     and automate their affordability and risk assessments 
-------------  -------  ------------------------------------------------------ 
Total new 
 investments       862 
-------------  ------- 
 
 
   Top ten holdings as at 31 March 2020: 
 
 
 
 
                                 % of 
                                  net 
                 Carrying value  asset 
Investment           GBP'000     value                         Activity 
---------------  --------------  -----  ------------------------------------------------------ 
Egress Software 
Technologies 
Limited               6,447      9.0%      Encrypted email & file transfer service provider 
---------------  --------------  -----  ------------------------------------------------------ 
Proveca Limited           4,600   6.4%                   Reformulation of paediatric medicines 
---------------  --------------  -----  ------------------------------------------------------ 
Quantexa              3,010      4.2%   Network analytics platform to detect financial crime 
 Limited 
---------------  --------------  -----  ------------------------------------------------------ 
Radnor House          2,547      3.5%   Independent school for children aged 5-18 
 School (TopCo) 
 Limited 
---------------  --------------  -----  ------------------------------------------------------ 
Chonais River         2,339      3.3%   Owner and operator of a 2 MW hydro-power scheme in 
 Hydro Limited                           the Scottish Highlands 
---------------  --------------  -----  ------------------------------------------------------ 
The Street by         2,327      3.2%   Owns and operates photovoltaic systems on domestic 
 Street Solar                            properties in the UK 
 Programme 
 Limited 
---------------  --------------  -----  ------------------------------------------------------ 
Regenerco             1,894      2.6%   Generator of renewable energy from roof top solar 
 Renewable                               installations 
 Energy 
 Limited 
---------------  --------------  -----  ------------------------------------------------------ 
Mirada Medical        1,544      2.1%   Developer of medical imaging software using Deep 
 Limited                                Learning 
---------------  --------------  -----  ------------------------------------------------------ 
G.Network             1,479      2.1%   Ultra-fast fibre optic broadband provider in central 
 Communications                          London 
 Limited 
---------------  --------------  -----  ------------------------------------------------------ 
Alto Prodotto        1,242       1.7%   Owns and operates community scale wind energy projects 
 Wind Limited                            on brownfield sites in the UK 
---------------  --------------  -----  ------------------------------------------------------ 
 
 
   Material events and transactions after the period end 
 
   There have been no further significant events or transactions between 1 
April 2020 and 22 April 2020 that the Board is aware of which would have 
had a material impact on the financial position of the Company. 
 
   Further information 
 
   The Company continues to offer a Dividend Reinvestment Scheme to 
existing shareholders. Details of this Scheme can be found on the 
Company's webpage on the Manager's website at 
www.albion.capital/funds/AADV. 
 
   Further information regarding historic and current financial performance 
and other useful shareholder information can be found on the Company's 
webpage on the Manager's website under www.albion.capital/funds/AADV. 
 
 
   Ben Larkin, Chairman 
 
   22 April 2020 
 
   For further information please contact: 
 
   Albion Capital Group LLP -- Tel: 020 7601 1850
(END) Dow Jones Newswires
April 22, 2020 12:30 ET (16:30 GMT)
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