TIDMCRWN
Crown Place VCT PLC
LEI number: 213800SYIQPA3L3T1Q68
Crown Place VCT PLC (the "Company") today makes public its information
relating to the Half-yearly Financial Report (which is unaudited) for
the six months to 31 December 2019. This announcement was approved by
the Board of Directors on 20 February 2020.
The full Half-yearly Financial Report for the period to 31 December 2019
will shortly be sent to shareholders and will be available on the Albion
Capital Group LLP website by clicking
https://www.globenewswire.com/Tracker?data=4EQENyfAv-ilXByUn09DjObhkaBQYrn4Aa-2xkvkKxFLSTtCr_IwyUojeE6h1Y0Ew_nL5WzXMCj8stNAIxm2qje6nQarFZcfw_NLZlZsHtLnv7ZJLjUXWqnGfwxNzjmP6C-aodv6tzrfe0Lds41GHm36bJqNFOF1WzwdK0hFoA0=
www.albion.capital/funds/CRWN/31Dec19.pdf.
Investment policy
The Company invests in a broad portfolio of smaller, unquoted growth
businesses across a variety of sectors including higher risk technology
companies. Investments take the form of equity or a mixture of equity
and loans.
Whilst allocation of funds is determined by the investment opportunities
which are available, efforts are made to ensure that the portfolio is
diversified both in terms of sector and stage of maturity of investee
businesses. Funds held pending investment or for liquidity purposes are
principally held as cash on deposit.
Risk diversification and maximum exposures
Risk is spread by investing in a number of different businesses within
venture capital trust qualifying industry sectors using a mixture of
securities, as permitted. The maximum amount which the Company will
invest in a single portfolio company is 15 per cent. of the Company's
assets at cost thus ensuring a spread of investment risk. The value of
an individual investment may increase over time as a result of trading
progress and it is possible that it may grow in value to a point where
it represents a significantly higher proportion of total assets prior to
a realisation opportunity being available.
The Company's maximum exposure in relation to gearing is restricted to
the amount of its adjusted share capital and reserves. The Directors do
not have any intention of utilising long-term gearing.
Financial calendar
Record date for second dividend 6 March 2020
Payment of second dividend 31 March 2020
Financial year end 30 June 2020
Financial highlights
Six months ended Six months ended Year ended
31 December 2019 31 December 2018 30 June 2019
(pence per share) (pence per share) (pence per share)
Opening net asset
value 35.29 33.50 33.50
Revenue return 0.21 0.21 0.41
Capital return 0.22 2.53 3.34
----------------- ----------------- -----------------
Total return 0.43 2.74 3.75
Dividends paid (1.00) (1.00) (2.00)
Impact from buy-backs
and issue of share
capital 0.01 0.02 0.04
----------------- ----------------- -----------------
Closing net asset
value 34.73 35.26 35.29
--------------------- ----------------- ----------------- -----------------
Shareholder return and shareholder value (pence per share)
Shareholder return from launch to April 2005:
Total dividends paid to 6 April 2005 (i) 24.93
Decrease in net asset value (56.60)
-------------------------------------------------------- -----------------
Total shareholder return to 6 April 2005 (31.67)
-------------------------------------------------------- -----------------
Shareholder return from April 2005 to 31 December
2019 (period that Albion Capital has been investment
manager):
Total dividends paid 33.80
Decrease in net asset value (8.67)
-------------------------------------------------------- -----------------
Total shareholder return from April 2005 to 31 December
2019 25.13
-------------------------------------------------------- -----------------
Shareholder value since launch:
Total dividends paid to 31 December 2019 (i) 58.73
Net asset value as at 31 December 2019 34.73
-------------------------------------------------------- -----------------
Total shareholder value as at 31 December 2019 93.46
-------------------------------------------------------- -----------------
Notes
(i) Prior to 6 April 1999, venture capital trusts were able
to add 20 per cent. to dividends and figures for the period up until 6
April 1999 are included at the gross equivalent rate actually paid to
shareholders.
31 December 2019
Total shareholder value since launch: (pence per share)
-------------------------------------------------------- ------------------
Total dividends paid during:
the period from launch to 6 April 2005 (prior to change
of manager) 24.93
the year ended 28 February 2006 1.00
the period ended 30 June 2007 3.30
the year ended 30 June 2008 2.50
the year ended 30 June 2009 2.50
the year ended 30 June 2010 2.50
the year ended 30 June 2011 2.50
the year ended 30 June 2012 2.50
the year ended 30 June 2013 2.50
the year ended 30 June 2014 2.50
the year ended 30 June 2015 2.50
the year ended 30 June 2016 2.50
the year ended 30 June 2017 2.00
the year ended 30 June 2018 2.00
the year ended 30 June 2019 2.00
the six months ended 31 December 2019 1.00
Total dividends paid to 31 December 2019 58.73
Net asset value as at 31 December 2019 34.73
------------------
Total shareholder value as at 31 December 2019 93.46
-------------------------------------------------------- ------------------
In addition to the dividends paid above, the Board has declared a second
dividend for the year ending 30 June 2020 of 1 penny per share, to be
paid on 31 March 2020 to shareholders on the register on 6 March 2020.
Current dividend objective:
Pence per share (per annum) 2.00
----
Dividend yield on net asset value as at 31 December
2019 5.8%
----
Interim management report
Results
Crown Place VCT PLC achieved a total return of 0.43 pence per share for
the six month period to 31 December 2019, which is a 1.2% return on
opening net asset value per share.
Following payment of the first dividend for the year of 1 penny per
share on 29 November 2019, the net asset value as at 31 December 2019
was 34.73 pence per share (30 June 2019: 35.29 pence per share).
Portfolio review
During the six month period, the Company deployed GBP2.5 million into
qualifying investments (31 December 2018: GBP1.6 million). Of this
amount, GBP1.5 million was invested in two new portfolio companies, both
of which are likely to require further investment as the companies
continue to grow:
-- GBP779,000 into Cantab Research (trading as Speechmatics), a provider of
low footprint automated speech recognition software across 29 languages
which can be deployed in the cloud, on premise or on device; and
-- GBP724,000 into Elliptic Enterprises, a provider of Anti Money Laundering
technology and services to digital asset institutions.
Further investments were made in existing portfolio companies, most
notably: GBP171,000 into InCrowd Sports to further develop its mobile
apps business for professional sports clubs, GBP163,000 into Oviva to
support their technology enabled service business in medical nutritional
therapy, and GBP138,000 into Koru Kids to expand its current network of
after school care into baby and toddler care.
After the period end, we invested GBP755,000 into Concirrus, a software
provider bringing real-time behavioural data analytics to the marine and
transport insurance industries.
There were four significant disposals in the period. Our investment in
ELE Advanced Technologies was sold for GBP5.0 million, resulting in a
total return of 4.75 times original cost.
As part of a reorganisation of the Radnor House School group, and the
sale of Radnor House Twickenham in November 2019, the Company realised
part of its investment and received proceeds of GBP4.1 million. This
exit resulted in an average Internal Rate of Return of 19.6% per annum
over the past nine years. The Company has retained its stake in Radnor
House Sevenoaks, which has further capacity to grow.
The holding in Process Systems Enterprise was sold to Siemens, for
proceeds of GBP1.4 million, resulting in a 10 times return on the
original investment.
Our investments in the pub sector, Bravo Inns and Bravo Inns II, were
also sold generating proceeds of GBP1.2 million combined. Over the life
of the investment, including interest received, the Company generated a
blended return of 1.7 times cost.
Further details on realisations and loan stock repayments can be found
in the realisations table below.
The Company's unrealised and realised gains amounted to GBP0.8 million
for the six months to 31 December 2019. The key movements in the period
include: a GBP531,000 realised gain on the sale of ELE Advanced
Technologies as referred to above, a GBP237,000 uplift in Oviva and an
uplift of GBP134,000 in G. Network Communications, both following an
external investment at an increased valuation. Against this, Zift
Channel Solutions was written down by GBP183,000 as growth has been
slower than expected.
Investment portfolio by sector
The chart at the end of this announcement illustrates the composition of
the portfolio by industry sector as at 31 December 2019.
Shareholder consultation
As part of the special business of the Annual General Meeting held on 27
November 2019, an ordinary resolution was proposed that increased the
cap for the overall level of Directors' remuneration. Whilst the
majority of shareholders supported the change, with 76.74% of the votes
cast in favour of the resolution, the Board noted that more than 20% of
the shareholder votes were against the resolution.
Following the Meeting, in accordance with provision 4 of the UK
Corporate Governance Code, the Board has completed a consultation
process with shareholders whose shareholdings represented a majority of
votes that voted against the resolution to more fully understand the
reasons for their opposition.
Of the total number of shares that voted against the resolution,
shareholders representing 82% were contacted directly by the Chairman.
Responses were received from a number of shareholders and the Board has
taken time to carefully reflect on this feedback.
From the feedback received, the Board noted that the rationale for the
increase, as detailed on page 34 of the Annual Report and Financial
Statements for the year ended 30 June 2019, was not made sufficiently
clear in the Notice of Annual General Meeting or on the proxy form. The
Board acknowledges that the rationale was not explained as well as it
could have been, and should have been repeated in the Notice of Annual
General Meeting and on the proxy forms.
The Board would like to reassure Shareholders that there was no increase
in Directors' Fees during the year, and that there is no current
intention of increasing Directors' Fees materially in the near term, but
the new level proposed provides extra flexibility, for example, in the
case of an additional Board member being appointed prior to the
retirement of an existing Director.
The Board would like to thank those shareholders who provided feedback
on this matter and would like to emphasise that the Board is committed
to act in the best interests of shareholders, in line with the UK
Corporate Governance Code.
Dividends
In line with the annual dividend target for the Company of 2 pence per
share, the first dividend for the current financial year of 1 penny per
share was paid on 29 November 2019. A second dividend of 1 penny per
share will be paid on 31 March 2020 to shareholders on the register on 6
March 2020. Based on the net asset value as at 31 December 2019, an
annual dividend of 2 pence per share equates to a 5.8% yield.
The Board aims to maintain this level of annualised dividend
distribution going forward, subject to the availability of cash
resources and distributable reserves. At 31 December 2019, the Company
had GBP29.8 million of distributable reserves.
Dividends are paid free of tax to shareholders. Qualifying shareholders
who elect to participate in the Dividend Reinvestment Scheme will be
able, in respect of further dividends, to receive their dividends in the
form of new shares rather than cash, which will entitle them to income
tax relief at the current rate of 30% (new shares have to be held for at
least five years to retain the tax relief). Further details of the
Dividend Reinvestment Scheme can be found on the Company's webpage on
the Manager's website at
https://www.globenewswire.com/Tracker?data=4EQENyfAv-ilXByUn09DjObhkaBQYrn4Aa-2xkvkKxGUfat1Hn6QgYp8exGRMHjpEhcTDaiMSK-7dd_id5vU2ICBNfCBWVxhuQvA071kNmOAH7M6JX5dHAhdtuHMhCLK
www.albion.capital/funds/CRWN.
Risks and uncertainties
The outlook for the UK and global economies, including any disruption
from the departure of the UK from the EU, continues to be the key risk
affecting the Company. Investment risk is mitigated in a number of ways,
including our policy that the portfolio should be balanced across
sectors and stages of investment.
Other risks and uncertainties remain unchanged and are as detailed in
note 13 below.
Share buy-backs
It remains the Board's primary objective to maintain sufficient
resources for investment in existing and new portfolio companies and for
the continued payment of dividends to shareholders. The Board's policy
is to buy back shares in the market, subject to the overall constraint
that such purchases are in the Company's interest, and it is the Board's
intention for such buy-backs to be in the region of a 5% discount to net
asset value, so far as market conditions and liquidity permit.
During the period, the Company bought back and held in treasury
1,421,000 shares at a total cost of GBP469,000, in-line with the share
buy-back policy.
Transactions with the Manager
Details of the transactions that took place with the Manager in the
period can be found in note 5.
Albion VCTs Prospectus Top Up Offers 2019/20
The Board was pleased to announce on 10 December 2019 that the Company
had reached its GBP4 million limit under its offer pursuant to the
Prospectus dated 22 October 2019, and so was closed to further
applications. Due to the successful disposals detailed above, the Board
elected not to exercise the over-allotment facility. The proceeds of the
Offer will be used to provide further resources at a time when a number
of attractive investment opportunities are being seen.
The first allotment under the Offer took place on 31 January 2020.
Details can be found in note 10.
Board composition
As part of the Board's succession planning, and after almost eight years
on the Board including six years as Chairman, I will retire from the
Board in September 2020. Penny Freer, who has been on the Board since
2014, will succeed me as Chair. The Nomination Committee has commenced a
process to recruit a new Non-Executive Director to join the Board ahead
of my retirement.
Fraud warning
We note over recent months an increase in the number of shareholders
being contacted in connection with sophisticated but fraudulent
financial scams. This is often by a phone call or an email which
normally originates from outside of the UK, often claiming or appearing
to come from a corporate finance firm and typically offering to buy your
VCT shares at an inflated price. If you are contacted, we recommend that
you do not respond with any personal information and say you are not
interested.
The Manager maintains a page on their website in relation to fraud
advice at www.albion.capital/investor-centre/fraud-advice.
If you are in any doubt, we recommend that you seek financial advice
before taking any action. You can also call Shareholder Relations on 020
7601 1850, or email info@albion.capital
https://www.globenewswire.com/Tracker?data=1XhzWbyIFC5P5NrgS63R-nrN9X0rMnakb33D-PHGE0H0OGCsKDeFzEoEWHtJeZE_Sw574IQ-y03jzCHcegymYgtUQRYnpOvODOumv1C-yvY=
, if you wish to check whether any claims made are genuine.
Outlook
The Company yielded double digit total returns in each of the last three
financial years. Whilst the portfolio has seen a more modest gain during
the six months to 31 December 2019, the Board is encouraged by the
successful exits of both technology and asset backed investments during
the period. The performance and prospects of a number of companies
within the investment portfolio, as well as the quality of the new
investments being made, gives us cause to be optimistic about the long
term prospects of the Company. Whilst there may be increased volatility
within the portfolio over the coming years, we remain confident in the
fundamentals of the investments within our portfolio to continue to grow
shareholder value over time.
Richard Huntingford
Chairman
20 February 2020
Responsibility statement
The Directors, Richard Huntingford, James Agnew, Penny Freer and Pam
Garside, are responsible for preparing the Half-yearly Financial Report.
In preparing these condensed Financial Statements for the period to 31
December 2019 we, the Directors of the Company, confirm that to the best
of our knowledge:
(a) the condensed set of Financial Statements, which has been prepared
in accordance with Financial Reporting Standard 104 "Interim Financial
Reporting", gives a true and fair view of the assets, liabilities,
financial position and profit and loss of the Company as required by DTR
4.2.4R;
(b) the Interim management report includes a fair review of the
information required by DTR 4.2.7R (indication of important events
during the first six months and description of principal risks and
uncertainties for the remaining six months of the year); and
(c) the Interim management report includes a fair review of the
information required by DTR 4.2.8R (disclosure of related parties'
transactions and changes therein).
This Half-yearly Financial Report has not been audited or reviewed by
the Auditor.
For and on behalf of the Board
Richard Huntingford
Chairman
20 February 2020
Portfolio of investments
As at 31 December 2019 As at 30 June 2019
(unaudited) (audited)
-------------------------------
%
voting Cost Value Cost Value Change in value for the period*
Portfolio company Nature of business rights GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
----------------------------------------------------- --------------------------------------------------------------- ------- ------------- --------- -------------------------------
Owner and operator of a 66 bed care home in Shinfield,
Shinfield Lodge Care Limited Berkshire 11.8 2,140 4,271 2,140 4,216 55
Owner and operator of a 2 MW hydro-power scheme in
Chonais River Hydro Limited the Scottish Highlands 14.0 1,549 3,253 1,549 3,255 (2)
Radnor House School (TopCo) Limited Independent school for children aged 5-18 8.7 1,592 2,778 2,665 6,770 45
Owner and operator of a 75 bed care home in Cumnor
Active Lives Care Limited Hill, Oxfordshire 7.5 1,620 2,767 1,620 2,771 (4)
Proveca Limited Reformulation of paediatric medicines 6.1 974 2,380 974 2,317 63
Owner and operator of a 60 bed care home in Hillingdon,
Ryefield Court Care Limited Middlesex 7.7 1,275 2,258 1,275 2,239 19
Quantexa Limited Network analytics platform to detect financial crime 1.7 438 1,816 438 1,816 -
Owner and operator of a 1 MW hydro-power scheme in
Gharagain River Hydro Limited the Scottish Highlands 15.0 1,116 1,670 1,116 1,650 20
Mirada Medical Limited Developer of medical imaging software 5.8 511 1,531 511 1,531 -
Beddlestead Limited Developer and operator of a dedicated wedding venue 8.2 1,060 1,068 1,060 1,066 2
Ultra-fast fibre optic broadband provider in central
G. Network Communications Limited London 1.8 186 1,009 580 1,269 134
A technology enabled service business in medical nutritional
Oviva AG therapy (MNT) 2.1 598 849 435 449 237
Egress Software Technologies Limited Encrypted email and file transfer service provider 0.9 306 846 306 846 -
Owner and operator of photovoltaic systems on domestic
The Street by Street Solar Programme Limited properties 4.4 461 845 461 812 33
The Evewell (Harley Street) Limited Operator of a women's health centre focusing on fertility 6.2 824 824 778 778 -
Provider of low footprint automated speech recognition
Cantab Research Limited (T/A Speechmatics) software across 29 languages 1.9 779 779 - - -
Provider of Anti Money Laundering services to digital
Elliptic Enterprises Limited asset institutions 0.9 724 724 - - -
Convertr Media Limited Digital lead generation software 4.3 680 695 664 676 3
Generator of renewable energy from roof top solar
Regenerco Renewable Energy Limited installations 3.4 344 582 344 558 24
Owner and operator of community scale wind energy
Alto Prodotto Wind Limited projects 4.1 336 564 345 577 1
MPP Global Solutions Limited Provider of a digital subscription management platform 1.7 550 550 550 550 -
Koru Kids Limited Online marketplace connecting parents and nannies 1.6 338 527 200 389 -
Developer of software to improve decision making through
Avora Limited augmented analytics & machine learning 2.8 510 510 510 510 -
MHS 1 Limited Education 6.9 481 481 481 480 1
Black Swan Data Limited Data analysis that supports corporate decision making 1.3 477 477 454 454 -
Panaseer Limited Provider of cyber security services 1.5 342 471 253 351 31
DySIS Medical Limited Medical devices for the detection of cervical cancer 1.9 1,038 441 1,038 536 (95)
SBD Automotive Limited (previously Secured by Design
Limited) Automotive technology research and consultancy provider 1.5 220 428 220 469 (41)
Provider of a platform for collecting data from pharmaceutical
MyMeds&Me Limited adverse events 4.6 440 416 440 416 -
InCrowd Sports Limited Developer of mobile apps for professional sports clubs 2.5 318 410 147 161 78
Provider of a technology solution for the management
Locum's Nest Limited of locum doctors for the NHS 4.6 400 380 400 424 (44)
Phrasee Limited AI platform that generates optimised marketing campaigns 1.7 356 356 356 356 -
Online community connecting people affected by rare
ePatient Network Limited (T/A Raremark) diseases 2.4 230 310 115 73 122
Provider of a customer service platform powered by
Limitless Technology Limited the crowd and machine learning technology 1.8 280 280 280 280 -
Provider of talent management software to mid market
Clear Review Limited enterprises 1.8 231 231 231 231 -
Development of biopharmaceuticals through the application
Arecor Limited of a formulation technology platform 1.1 210 210 210 210 -
Oxsensis Limited Developer and producer of high temperature sensors 1.7 274 210 274 210 -
Provider of an online platform delivering family centric
Healios Limited psychological care 0.7 203 203 75 75 -
Owner and operator of photovoltaic systems on domestic
AVESI Limited properties 3.8 123 184 123 177 7
Zift Channel Solutions Inc. Business collaboration and communication solutions 0.6 321 183 321 366 (183)
Sandcroft Avenue Limited (T/A Hussle) A provider of flexible access to gyms 0.9 171 169 159 151 6
Software and services for non-interventional clinical
Cisiv Limited trials 3.1 278 160 278 267 (107)
A patient engagement and data capture platform for
uMotif Limited use in research 0.9 210 152 140 98 (16)
OmPrompt Holdings Limited A provider of process automation software 1.6 153 148 153 148 -
Refurbisher and manufacturer of MEMS and semiconductor
memsstar Limited fabrication equipment 3.0 77 126 97 169 (23)
Operator of a Holiday Inn Express hotel at Stansted
Kew Green VCT (Stansted) Limited Airport 2.0 22 121 22 121 -
A secure mobile communication and collaboration platform
Forward Clinical Limited (T/A Pando) in healthcare 1.5 184 108 160 160 (76)
Abcodia Limited Validation and discovery of serum biomarkers 1.7 304 107 304 107 -
Provider of automated software testing and an enhanced
Imandra Inc. learning experience for artificial neural networks 1.1 106 106 106 106 -
Greenenerco Limited Owns & operates a 500kW wind project 1.9 57 100 59 102 -
Innovation Broking Group Limited Commercial insurance broker 2.7 27 60 27 59 1
Aridhia Informatics Limited Healthcare informatics and analysis provider 2.3 442 58 442 94 (36)
A designer and manufacturer of radiation detection
Symetrica Limited equipment 0.2 43 40 43 43 (3)
Mi-Pay Group PLC Provider of mobile payment services 3.0 713 20 713 130 (110)
Palm Tree Technology Limited Software company 0.2 102 12 102 12 -
Avanti Communications Group Limited Supplier of satellite communications 0.1 136 1 136 1 -
Other holdings 486 509 486 507 2
---------------------------------------------------------------------------------------------------------------------- ------- --------- ------------- --------- --------- -------------------------------
Total fixed asset investments 28,366 40,764 27,366 42,589 144
------------------------------------------------------------------------------------------------------------------------------- --------- ------------- --------- --------- -------------------------------
* As adjusted for additions and disposals between the two accounting
periods
The total comparative cost and valuations for 30 June 2019 do not agree
to the Annual Report and Financial Statements for the year ended 30 June
2019 as the above list does not include brought forward investments that
were fully disposed of in the period.
Opening Total Gain/(loss) on
Realisations in carrying Disposal realised opening
the period to 31 Cost value proceeds gain/(loss) value
December 2019 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
---------------- -------- --------- --------- ------------ --------------
Disposals:
---------------- -------- --------- --------- ------------ --------------
ELE Advanced
Technologies
Limited 1,050 4,453 4,984 3,934 531
Radnor House
School (TopCo)
Limited 1,073 4,036 4,116 3,043 80
Process Systems
Enterprise
Limited 138 1,372 1,413 1,275 41
Bravo Inns II
Limited 595 871 920 325 49
Augean PLC 593 407 368 (225) (39)
Bravo Inns
Limited 306 251 235 (71) (16)
Loan stock
repayments and
other:
---------------- -------- --------- --------- ------------ --------------
G. Network
Communications
Limited 394 394 394 - -
Black Swan Data
Limited 128 128 151 23 23
memsstar Limited 20 20 20 - -
Alto Prodotto
Wind Limited 8 14 14 6 -
Greenenerco
Limited 2 3 3 1 -
Escrow
adjustments** - - 29 29 29
Total fixed
asset
investment
realisations 4,307 11,949 12,647 8,340 698
---------------- -------- --------- --------- ------------ --------------
** Fair value movements on deferred consideration from previously
disposed investments.
Total change in value of investments 144
Movement in loan stock accrued interest 2
---
Unrealised gains sub-total 146
Realised gains in current period 698
Total gains on investments as per condensed income
statement 844
------------------------------------------------------- ---
Condensed income statement
Unaudited Unaudited Audited
six months ended six months ended year ended
31 December 2019 31 December 2018 30 June 2019
Revenue Capital Total Revenue Capital Total Revenue Capital Total
Note GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
--------------------------------------------------- ---- ------- ------- ------- ------- ------- ------- ------- ------- -------
Gains on investments 3 - 844 844 - 4,547 4,547 - 6,475 6,475
Investment income 4 699 - 699 637 - 637 1,285 - 1,285
Investment management fees 5 (144) (431) (575) (125) (376) (501) (260) (780) (1,040)
Other expenses (167) - (167) (164) - (164) (328) - (328)
------- ------- ------- ------- ------- ------- ------- ------- -------
Profit on ordinary activities before tax 388 413 801 348 4,171 4,519 697 5,695 6,392
Tax on ordinary activities - - - - - - - - -
------- ------- ------- ------- ------- ------- ------- ------- -------
Profit and total comprehensive income attributable
to shareholders 388 413 801 348 4,171 4,519 697 5,695 6,392
------- ------- ------- ------- ------- ------- ------- ------- -------
Basic and diluted earnings per Ordinary share
(pence)* 7 0.21 0.22 0.43 0.21 2.53 2.74 0.41 3.34 3.75
------- ------- ------- ------- ------- ------- ------- ------- -------
* adjusting for treasury shares
Comparative figures have been extracted from the unaudited Half-yearly
Financial Report for the six months ended 31 December 2018 and the
audited statutory accounts for the year ended 30 June 2019.
The accompanying notes form an integral part of this Half-yearly
Financial Report.
The total column of this condensed income statement represents the
profit and loss account of the Company. The supplementary revenue and
capital columns are prepared under guidance published by The Association
of Investment Companies.
Condensed balance sheet
Unaudited Unaudited Audited
31 December 2019 31 December 2018 30 June 2019
Note GBP'000 GBP'000 GBP'000
---------------------- ---- ---------------- ---------------- ------------
Fixed asset
investments 40,764 48,601 49,943
Current assets
Trade and other
receivables less than
one year 164 249 359
Cash and cash
equivalents 24,183 9,596 16,083
---------------- ---------------- ------------
24,347 9,845 16,442
Total assets 65,111 58,446 66,385
Payables: amounts
falling due within one
year
Trade and other
payables less than
one year (360) (327) (390)
Total assets less
current liabilities 64,751 58,119 65,995
---------------- ---------------- ------------
Equity attributable to
equity holders
Called up share
capital 8 2,080 1,837 2,072
Share premium 9,338 1,230 9,061
Unrealised capital
reserve 12,260 17,357 19,756
Realised capital
reserve 6,052 (982) (1,857)
Other distributable
reserve 35,021 38,677 36,963
---------------- ---------------- ------------
Total equity
shareholders' funds 64,751 58,119 65,995
---------------- ---------------- ------------
Basic and diluted net
asset value per share
(pence)* 34.73 35.26 35.29
---------------- ---------------- ------------
* excluding treasury shares
Comparative figures have been extracted from the unaudited Half-yearly
Financial Report for the six months ended 31 December 2018 and the
audited statutory accounts for the year ended 30 June 2019.
The accompanying notes form an integral part of this Half-yearly
Financial Report.
These Financial Statements were approved by the Board of Directors, and
authorised for issue on 20 February 2020 and were signed on its behalf
by
Richard Huntingford
Chairman
Company number 03495287
Condensed statement of changes in equity
Unrealised Realised
Ordinary Share capital capital Other distributable
share capital premium reserve reserve* reserve* Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
-----------------------------------------------------
As at 1 July 2019 2,072 9,061 19,756 (1,857) 36,963 65,995
Profit and total comprehensive income - - 146 267 388 801
Transfer of previously unrealised gains on disposals
of investments - - (7,642) 7,642 - -
Dividends paid - - - - (1,861) (1,861)
Purchase of shares for treasury (including costs) - - - - (469) (469)
Issue of equity 9 292 - - - 301
Cost of issue of equity - (16) - - - (16)
-------------- --------- ---------- --------- ------------------- --------
As at 31 December 2019 2,080 9,338 12,260 6,052 35,021 64,751
----------------------------------------------------- -------------- --------- ---------- --------- ------------------- --------
As at 1 July 2018 1,829 974 12,973 (769) 40,407 55,414
Profit/(loss) and total comprehensive income - - 4,520 (349) 348 4,519
Transfer of previously unrealised gains on disposals
of investments - - (136) 136 - -
Dividends paid - - - - (1,649) (1,649)
Purchase of shares for treasury (including costs) - - - - (429) (429)
Issue of equity 8 258 - - - 266
Cost of issue of equity - (2) - - - (2)
-------------- --------- ---------- --------- ------------------- --------
As at 31 December 2018 1,837 1,230 17,357 (982) 38,677 58,119
-------------- --------- ---------- --------- ------------------- --------
As at 1 July 2018 1,829 974 12,973 (769) 40,407 55,414
Profit/(loss) and total comprehensive income - - 5,929 (234) 697 6,392
Transfer of previously unrealised losses on disposal
of investments - - 854 (854) - -
Dividends paid - - - - (3,280) (3,280)
Purchase of shares for treasury (including costs) - - - - (861) (861)
Issue of equity 243 8,277 - - - 8,520
Cost of issue of equity - (190) - - - (190)
As at 30 June 2019 2,072 9,061 19,756 (1,857) 36,963 65,995
----------------------------------------------------- -------------- --------- ---------- --------- ------------------- --------
* Included within these reserves is an amount of GBP29,836,000 (31
December 2018: GBP19,712,000; 30 June 2019: GBP17,123,000) which is
considered distributable. In time, a further GBP11,237,000 will become
distributable.
Condensed statement of cash flows
Unaudited Audited
six months ended Unaudited year ended
31 December six months ended 30 June
2019 31 December 2018 2019
GBP'000 GBP'000 GBP'000
------------------------
Cash flow from operating
activities
Loan stock income
received 646 619 1,378
Deposit interest received 45 19 45
Dividend income received 9 15 61
Investment management
fees paid (578) (486) (993)
Other cash payments (194) (181) (316)
Corporation tax paid - - -
----------------- ----------------- -----------
Net cash flow from
operating activities (72) (14) 175
----------------- ----------------- -----------
Cash flow from investing
activities
Purchase of fixed asset
investments (2,475) (1,590) (3,536)
Disposal of fixed asset
investments 12,676 430 2,686
Net cash flow from
investing activities 10,201 (1,160) (850)
----------------- ----------------- -----------
Cash flow from financing
activities
Issue of share capital - - 7,802
Cost of issue of equity (15) - (3)
Equity dividends paid (1,545) (1,369) (2,749)
Purchase of own shares
for treasury (including
costs) (469) (465) (896)
Net cash flow from
financing activities (2,029) (1,834) 4,154
Increase/(decrease) in
cash and cash
equivalents 8,100 (3,008) 3,479
Cash and cash equivalents
at the start of the
period 16,083 12,604 12,604
----------------- ----------------- -----------
Cash and cash equivalents
at the end of the
period 24,183 9,596 16,083
----------------- ----------------- -----------
Cash and cash
equivalents comprise:
Cash at bank 24,183 9,596 16,083
Cash equivalents - - -
----------------- ----------------- -----------
Total cash and cash
equivalents 24,183 9,596 16,083
----------------- ----------------- -----------
Notes to the unaudited condensed Financial Statements
1. Basis of preparation
The condensed Financial Statements have been prepared in accordance with
the historical cost convention, modified to include the revaluation of
investments, in accordance with applicable United Kingdom law and
accounting standards, including Financial Reporting Standard 102 ("FRS
102"), Financial Reporting Standard 104 -- Interim Financial Reporting
("FRS 104"), and with the Statement of Recommended Practice "Financial
Statements of Investment Trust Companies and Venture Capital Trusts"
("SORP") issued by The Association of Investment Companies ("AIC").
The preparation of the Financial Statements requires management to make
judgements and estimates that affect the application of policies and
reported amounts of assets, liabilities, income and expenses. The most
critical estimates and judgements relate to the determination of
carrying value of investments at fair value through profit and loss
("FVTPL"). The Company values investments by following the International
Private Equity and Venture Capital Valuation ("IPEV") Guidelines and
further detail on the valuation techniques used are outlined in note 2
below.
The Half-yearly Financial Report has not been audited, nor has it been
reviewed by the auditor pursuant to the FRC's guidance on Review of
interim financial information.
Company information can be found on page 2 of the full Half-yearly
Financial Report.
2. Accounting policies
Fixed asset investments
The Company's business is investing in financial assets with a view to
profiting from their total return in the form of income and capital
growth. This portfolio of financial assets is managed and its
performance evaluated on a fair value basis, in accordance with a
documented investment policy, and information about the portfolio is
provided internally on that basis to the Board.
In accordance with the requirements of FRS 102, those undertakings in
which the Company holds more than 20 per cent. of the equity as part of
an investment portfolio are not accounted for using the equity method.
In these circumstances the investment is measured at FVTPL.
Upon initial recognition (using trade date accounting) investments,
including loan stock, are classified by the Company as FVTPL and are
included at their initial fair value, which is cost (excluding expenses
incidental to the acquisition which are written off to the income
statement).
Subsequently, the investments are valued at 'fair value', which is
measured as follows:
-- Investments listed on recognised exchanges are valued at their bid prices
at the end of the accounting period or otherwise at fair value based on
published price quotations;
-- Unquoted investments, where there is not an active market, are valued
using an appropriate valuation technique in accordance with the IPEV
Guidelines. Indicators of fair value are derived using established
methodologies including earnings multiples, revenue multiples, the level
of third party offers received, cost or prices of recent investment
rounds, net assets and industry valuation benchmarks. Where price of
recent investment is used as a starting point for estimating fair value
at subsequent measurement dates, this has been benchmarked using an
appropriate valuation technique permitted by the IPEV guidelines.
-- In situations where cost or price of recent investment is used,
consideration is given to the circumstances of the portfolio company
since that date in determining fair value. This includes consideration of
whether there is any evidence of deterioration or strong definable
evidence of an increase in value. In the absence of these indicators, the
investment in question is valued at the amount reported at the previous
reporting date. Examples of events or changes that could indicate a
diminution include:
-- the performance and/or prospects of the underlying business are
significantly below the expectations on which the investment was
based;
-- a significant adverse change either in the portfolio company's
business or in the technological, market, economic, legal or
regulatory environment in which the business operates; or
-- market conditions have deteriorated, which may be indicated by a
fall in the share prices of quoted businesses operating in the
same or related sectors.
Investments are recognised as financial assets on legal completion of
the investment contract and are de-recognised on legal completion of the
sale of an investment.
Dividend income is not recognised as part of the fair value movement of
an investment, but is recognised separately as investment income through
the other distributable reserve when a share becomes ex-dividend.
Current assets and payables
Receivables, payables and cash are carried at amortised cost, in
accordance with FRS 102. There are no financial liabilities other than
payables.
Investment income
Equity income
Dividend income is included in revenue when the investment is quoted
ex-dividend.
Unquoted loan stock income
Fixed returns on non-equity shares and debt securities are recognised
when the Company's right to receive payment and expect settlement is
established. Where interest is rolled up and/or payable at redemption
then it is recognised as income unless there is reasonable doubt as to
its receipt.
Bank interest income
Interest income is recognised on an accruals basis using the rate of
interest agreed with the bank.
Investment management fees, performance incentive fees and other
expenses
All expenses have been accounted for on an accruals basis. Expenses are
charged through the revenue column of the condensed income statement,
except for management fees and performance incentive fees which are
allocated in part to the capital column of the Income statement, to the
extent that these relate to the maintenance or enhancement in the value
of the investments and in line with the Board's expectation that over
the long term 75 per cent. of the Company's investment returns will be
in the form of capital gains.
Taxation
Taxation is applied on a current basis in accordance with FRS 102.
Current tax is tax payable (refundable) in respect of the taxable profit
(tax loss) for the current period or past reporting periods using the
tax rates and laws that have been enacted or substantively enacted at
the financial reporting date. Taxation associated with capital expenses
is applied in accordance with the SORP.
Deferred tax is provided in full on all timing differences at the
reporting date. Timing differences are differences between taxable
profits and total comprehensive income as stated in the Financial
Statements that arise from the inclusion of income and expenses in tax
assessments in periods different from those in which they are recognised
in the Financial Statements. As a VCT the Company has an exemption from
tax on capital gains. The Company intends to continue meeting the
conditions required to obtain approval as a VCT in the foreseeable
future. The Company therefore, should have no material deferred tax
timing differences arising in respect of the revaluation or disposal of
investments and the Company has not provided for any deferred tax.
Reserves
Share premium
This reserve accounts for the difference between the price paid for
shares and the nominal value of the shares, less issue costs.
Capital redemption reserve
This reserve accounts for amounts by which the issued share capital is
diminished through the repurchase and cancellation of the Company's own
shares.
Unrealised capital reserve
Increases and decreases in the valuation of investments held at the year
end against cost, are included in this reserve.
Realised capital reserve
The following are disclosed in this reserve:
-- gains and losses compared to cost on the realisation of investments, or
permanent diminution in value;
-- expenses, together with the related taxation effect, charged in
accordance with the above policies; and
-- dividends paid to equity holders where paid out by capital.
Other distributable reserve
The special reserve, treasury share reserve and the revenue reserve were
combined in 2012 to form a single reserve named other distributable
reserve.
This reserve accounts for movements from the revenue column of the
Income statement, the payment of dividends, the buy-back of shares and
other non-capital realised movements.
Dividends
Dividends by the Company are accounted for in the period in which the
dividend is paid or approved at the Annual General Meeting.
Segmental reporting
The Directors are of the opinion that the Company is engaged in a single
operating segment of business, being investment in smaller companies
principally based in the UK.
3. Gains on investments
Unaudited Unaudited Audited
six months ended six months ended year ended
31 December 2019 31 December 2018 30 June 2019
GBP'000 GBP'000 GBP'000
-------------------------
Unrealised gains on fixed
asset investments 146 4,520 5,929
Realised gains on fixed
asset investments 698 27 546
----------------- ----------------- -------------
844 4,547 6,475
----------------- ----------------- -------------
4. Investment income
Unaudited Unaudited Audited
six months ended six months ended year ended
31 December 2019 31 December 2018 30 June 2019
GBP'000 GBP'000 GBP'000
-------------------------
Loan stock interest and
other fixed returns 644 602 1,179
UK dividend income 9 15 61
Bank deposit interest 46 20 45
----------------- ----------------- -------------
699 637 1,285
----------------- ----------------- -------------
5. Investment management fees
Unaudited Unaudited Audited
six months ended six months ended year ended
31 December 2019 31 December 2018 30 June 2019
Revenue Capital Total Revenue Capital Total Revenue Capital Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
----------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Investment
management
fee 144 431 575 125 376 501 260 780 1,040
-------- -------- -------- -------- -------- -------- -------- -------- --------
Further details of the management agreement under which the investment
management fee is paid are given on page 13 of the Strategic report in
the Annual Report and Financial Statements for the year ended 30 June
2019.
During the period, services of a total value of GBP600,000 (31 December
2018: GBP526,000; 30 June 2019: GBP1,090,000) were purchased by the
Company from Albion Capital Group LLP; comprising GBP575,000 management
fee and GBP25,000 administration fee. At the financial period end, the
amount due to Albion Capital Group LLP disclosed as payables was
GBP297,000 (administration fee accrual GBP12,500, management fee accrual
GBP284,500) (31 December 2018: GBP269,000; 30 June 2019: GBP300,500).
Albion Capital Group LLP is, from time to time, eligible to receive
arrangement fees and monitoring fees from portfolio companies. During
the period to 31 December 2019, fees of GBP74,000 attributable to the
investments of the Company were received pursuant to these arrangements
(31 December 2018: GBP72,000; 30 June 2019: GBP167,000).
Albion Capital Group LLP, its partners and staff hold 1,090,631 Ordinary
shares in the Company.
6. Dividends
Unaudited Unaudited Audited
six months ended six months ended year ended
31 December 2019 31 December 2018 30 June 2019
GBP'000 GBP'000 GBP'000
--------------------------------------------------------
First dividend of 1 penny per share paid on 30 November
2018 - 1,649 1,649
Second dividend of 1 penny per share paid on 29 March
2019 - - 1,646
First dividend of 1 penny per share paid on 29 November
2019 1,861 - -
Unclaimed dividends - - (15)
----------------- ----------------- -------------
1,861 1,649 3,280
----------------- ----------------- -------------
In addition, the Board has declared a second dividend of 1 penny per
share for the year ending 30 June 2020. This will be paid on 31 March
2020 to shareholders on the register on 6 March 2020. This is expected
to amount to approximately GBP1,971,000.
7. Basic and diluted return per share
Unaudited Unaudited Audited
six months ended six months ended year ended
31 December 2019 31 December 2018 30 June 2019
Revenue Capital Total Revenue Capital Total Revenue Capital Total
------------------------------------------------------ ------- ------- ----- ------- ------- ----- ------- ------- -----
Return attributable to equity shares (GBP'000) 388 413 801 348 4,171 4,519 697 5,695 6,392
------- ------- ----- ------- ------- ----- ------- ------- -----
Weighted average
shares in issue
(adjusting for treasury
shares) 186,644,811 165,106,141 170,478,118
----------------------- ----------------------- -----------------------
Return attributable per Ordinary share (pence) (basic
and diluted) 0.21 0.22 0.43 0.21 2.53 2.74 0.41 3.34 3.75
------- ------- ----- ------- ------- ----- ------- ------- -----
The return per share has been calculated after adjusting for treasury
shares of 21,589,410 (31 December 2018: 18,840,410; 30 June 2019:
20,168,410).
There are no convertible instruments, derivatives or contingent share
agreements in issue, and therefore no dilution affecting the return per
share. The basic return per share is therefore the same as the diluted
return per share.
8. Ordinary share capital
Allotted, called up and fully paid Ordinary shares Unaudited Unaudited Audited
of 1 penny each 31 December 2019 31 December 2018 30 June 2019
---------------------------------------------------
Number of shares 208,035,211 183,657,792 207,170,647
Nominal value of allotted shares (GBP'000) 2,080 1,837 2,072
Voting rights (number of shares net of treasury
shares) 186,445,801 164,817,382 187,002,237
During the period to 31 December 2019 the Company purchased 1,421,000
Ordinary shares (nominal value GBP14,000) for treasury at a cost of
GBP469,000. The total number of Ordinary shares held in treasury as at
31 December 2019 was 21,589,410 (31 December 2018: 18,840,410; 30 June
2019: 20,168,410) representing 10.4 per cent. of the Ordinary shares in
issue as at 31 December 2019.
Under the terms of the Dividend Reinvestment Scheme Circular dated 26
February 2009, the following new Ordinary shares of nominal value 1
penny per share were allotted during the period:
Number
of
Allotment shares Aggregate nominal value of shares Issue price Net invested Opening market price on allotment date
date allotted (GBP'000) (pence per share) (GBP'000) (pence per share)
29 November
2019 864,564 9 34.82 285 32.70
9. Contingencies and guarantees
As at 31 December 2019 the Company had no financial commitments in
respect of investments (31 December 2018: GBPnil; 30 June 2019: GBPnil).
There are no external contingencies or guarantees of the Company as at
31 December 2019 (31 December 2018: GBPnil; 30 June 2019: GBPnil).
10. Post balance sheet events
Since 31 December 2019, the Company has completed the following material
transaction:
--Investment of GBP755,000 in a new portfolio company, Concirrus Limited,
a software provider bringing real-time behavioural data analytics to
the marine and transport insurance industries.
The following new Ordinary shares of nominal value 1 penny each were
allotted under the Albion VCTs Prospectus Top Up Offers 2019/20 after 31
December 2019:
Aggregate Issue
Number of nominal price Net Opening market
Date of shares value of (pence consideration price on
allotment allotted shares per received allotment date
GBP'000 share) GBP'000 (pence per share)
---------- ---------- --------- ---------- ------------- -----------------
31 January
2020 4,051,167 41 35.40 1,413 32.70
31 January
2020 904,613 9 35.60 316 32.70
31 January
2020 5,684,033 57 35.80 1,983 32.70
10,639,813 3,712
---------- -------------
11. Related party transactions
Other than transactions with the Manager as disclosed in note 5, there
are no other related party transactions requiring disclosure.
12. Going concern
The Board's assessment of liquidity risk remains unchanged since the
last Annual Report and Financial Statements for the year ended 30 June
2019 and is detailed on page 67 of those accounts. The Company has
adequate cash and liquid resources. The portfolio of investments is
diversified in terms of sector, and the major cash outflows of the
Company (namely investments, dividends and share buy-backs) are within
the Company's control. Accordingly, after making diligent enquiries, the
Directors have a reasonable expectation that the Company has adequate
resources to continue in operational existence for the foreseeable
future. For this reason, the Directors have adopted the going concern
basis in preparing this Half-yearly Financial Report and this is in
accordance with the Guidance on Risk Management, Internal Control and
Related Financial and Business Reporting issued by the Financial
Reporting Council.
13. Risks and uncertainties
The Board considers that the Company faces the following principal risks
and uncertainties:
1. Investment, performance and valuation risk
The risk of investment in poor quality businesses, which could reduce
the returns to shareholders, and could negatively impact on the
Company's current and future valuations. By nature, smaller unquoted
businesses, such as those that qualify for venture capital trust
purposes, are more volatile than larger, long established businesses.
The Company's investment valuation methodology is reliant on the
accuracy and completeness of information that is issued by portfolio
companies. In particular, the Directors may not be aware of or take into
account certain events or circumstances which occur after the
information issued by such companies is reported.
To reduce this risk, the Board places reliance upon the skills and
expertise of the Manager and its track record over many years of making
successful investments in this segment of the market. In addition, the
Manager operates a formal and structured investment appraisal and review
process, which includes an Investment Committee, comprising investment
professionals from the Manager and at least one external investment
professional. The Manager also invites and takes account of comments
from non-executive Directors of the Company on matters discussed at the
Investment Committee meetings. Investments are actively and regularly
monitored by the Manager (investment managers normally sit on portfolio
company boards), including the level of diversification in the portfolio,
and the Board receives detailed reports on each investment as part of
the Manager's report at quarterly board meetings.
The unquoted investments held by the Company are designated at fair
value through profit or loss and valued in accordance with the
International Private Equity and Venture Capital Valuation Guidelines.
These guidelines set out recommendations, intended to represent current
best practice on the valuation of venture capital investments. The
valuation takes into account all known material facts up to the date of
approval of the Financial Statements by the Board.
2. VCT approval risk
The Company must comply with section 274 of the Income Tax Act 2007
which enables its investors to take advantage of tax relief on their
investment and on future returns. Breach of any of the rules enabling
the Company to hold VCT status could result in the loss of that status.
To reduce this risk, the Board has appointed the Manager, which has a
team with significant experience in venture capital trust management,
and are used to operating within the requirements of the venture capital
trust legislation. In addition, to provide further formal reassurance,
the Board has appointed Philip Hare & Associates LLP as its taxation
adviser, who report quarterly to the Board to independently confirm
compliance with the venture capital trust legislation, to highlight
areas of risk and to inform on changes in legislation. Each investment
in a new portfolio company is also pre-cleared with our professional
advisers or H.M. Revenue & Customs.
3. Regulatory and compliance risk
The Company is listed on The London Stock Exchange and is required to
comply with the rules of the UK Listing Authority, as well as with the
Companies Act, Accounting Standards and other legislation. Failure to
comply with these regulations could result in a delisting of the
Company's shares, or other penalties under the Companies Act or from
financial reporting oversight bodies.
Board members and the Manager have experience of operating at senior
levels within or advising quoted companies. In addition, the Board and
the Manager receive regular updates on new regulation, including
legislation on the management of the Company, from its auditor, lawyers
and other professional bodies. The Company is subject to compliance
checks through the Manager's compliance officer, and any issues arising
from compliance or regulation are reported to its own board on a monthly
basis. These controls are also reviewed as part of the quarterly Board
meetings, and also as part of the review work undertaken by the
Manager's compliance officer. The report on controls is also evaluated
by the internal auditors.
4. Operational and internal control risk
The Company relies on a number of third parties, in particular the
Manager, for the provision of investment management and administrative
functions. Failures in key systems and controls within the Manager's
business could place assets of the Company at risk or result in reduced
or inaccurate information being passed to the Board or to shareholders.
The Company and its operations are subject to a series of rigorous
internal controls and review procedures exercised throughout the year,
and receives reports from the Manager on internal controls and risk
management, including on matters relating to cyber security. The Audit
and Risk Committee reviews the Internal Audit Reports prepared by the
Manager's internal auditor, PKF Littlejohn LLP and has access to the
internal audit partner of PKF Littlejohn LLP to provide an opportunity
to ask specific detailed questions in order to satisfy itself that the
Manager has strong systems and controls in place including those in
relation to business continuity and cyber security.
From 1 October 2018, Ocorian (UK) Limited was appointed as Depositary to
oversee the custody and cash arrangements and provide other AIFMD
duties. The Board reviews the quarterly reports prepared by Ocorian (UK)
Limited to ensure that Albion Capital is adhering to its policies and
procedures as required by the AIFMD.
In addition, the Board regularly reviews the performance of its key
service providers, particularly the Manager, to ensure they continue to
have the necessary expertise and resources to deliver the Company's
investment objective and policies. The Manager and other service
providers have also demonstrated to the Board that there is no undue
reliance placed upon any one individual.
5. Economic and political risk
Changes in economic conditions, including, for example, interest rates,
rates of inflation, industry conditions, competition, political and
diplomatic events and other factors could substantially and adversely
affect the Company's prospects in a number of ways.
The Company invests in a diversified portfolio of companies across a
number of industry sectors and in addition often invests in a mixture of
instruments in portfolio companies and has a policy of minimising any
external bank borrowings within portfolio companies. At any given time,
the Company has sufficient cash resources to meet its operating
requirements, including share buy-backs and follow on investments.
6. Market value of Ordinary shares
The market value of Ordinary shares can fluctuate. The market value of
an Ordinary share, as well as being affected by its net asset value and
prospective net asset value, also takes into account its dividend yield
and prevailing interest rates. As such, the market value of an Ordinary
share may vary considerably from its underlying net asset value. The
market prices of shares in quoted investment companies can, therefore,
be at a discount or premium to the net asset value at different times,
depending on supply and demand, market conditions, general investor
sentiment and other factors. Accordingly, the market price of the
Ordinary shares may not fully reflect their underlying net asset value.
The Company operates a share buy-back policy, which is designed to limit
the discount at which the Ordinary shares trade to around 5 per cent. to
net asset value, by providing a purchaser through the Company in absence
of market purchasers. From time to time buy-backs cannot be applied,
for example when the Company is subject to a close period, or if it were
to exhaust any buy-back authorities. New Ordinary shares are issued at
sufficient premium to net asset value to cover the costs of issue and to
avoid asset value dilution to existing investors.
14. Other information
The information set out in the Half-yearly Financial Report does not
constitute the Company's statutory accounts within the terms of section
434 of the Companies Act 2006 for the periods ended 31 December 2019 and
31 December 2018 and is unaudited. The financial information for the
year ended 30 June 2019 does not constitute statutory accounts within
the terms of section 434 of the Companies Act 2006 and is derived from
the statutory accounts for the financial year, which have been delivered
to the Registrar of Companies. The Auditor's report on those accounts
was unqualified and did not contain statements under s498 (2) or (3) of
the Companies Act 2006.
15. Publication
This Half-yearly Financial Report is being sent to shareholders and
copies will be made available to the public at the registered office of
the Company, Companies House, the National Storage Mechanism and also
electronically at
https://www.globenewswire.com/Tracker?data=4EQENyfAv-ilXByUn09DjObhkaBQYrn4Aa-2xkvkKxHmJpCLyB1WsnYKoCTFy6fy8aLYhKwrP82-AlEirwe9MZD8I_E-QoTAId65_7tOgn6TBZE93Z5tgInc2BRRtmIl
www.albion.capital/funds/CRWN.
Attachment
-- Investment portfolio by sector as at 31 December 2019
https://ml-eu.globenewswire.com/Resource/Download/df136f26-bb32-4074-95f2-4e0473ebbc18
(END) Dow Jones Newswires
February 20, 2020 07:05 ET (12:05 GMT)
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