REG-Albion Enterprise VCT PLC: Half-year Financial Report <Origin Href="QuoteRef">AAEV.L</Origin>
04/12/2017 13:20
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Albion Enterprise VCT PLC
LEI Code 213800OVSRDHRJBMO720
As required by the UK Listing Authority's Disclosure and Transparency Rule
4.2, Albion Enterprise VCT PLC today makes public its information relating to
the Half-yearly Financial Report (which is unaudited) for the six months to 30
September 2017. This announcement was approved by the Board of Directors on 4
December 2017.
The full Half-yearly Financial Report (which is unaudited) for the period to
30 September 2017, will shortly be sent to shareholders. Copies of the full
Half-yearly Financial Report will be shown via the Albion Capital Group LLP
website by clicking www.albion.capital/funds/AAEV/30Sep2017.pdf.
Investment objective
The investment objective of Albion Enterprise VCT PLC ("the Company") is to
provide investors with a regular and predictable source of income, combined
with the prospect of longer term capital growth.
The Company's investment portfolio is structured to provide a balance between
income and capital growth for the longer term. Stock specific risk will be
reduced by the Company's policy of holding a diversified portfolio of
Qualifying Investments.
Under its Articles of Association, the Company's maximum exposure in relation
to gearing is restricted to 10 per cent. of its adjusted share capital and
reserves.
The Company can, prior to investing in VCT qualifying assets, invest in cash
deposits, in floating rate notes or similar instruments with banks or other
financial institutions with credit ratings, assigned by international credit
agencies, of A or better (on acquisition) or up to 10 per cent. of its assets,
at the time of investment, in liquid open-ended equity funds providing income
and capital equity exposure (where it is considered economic to do so).
Financial calendar
Record date for second dividend 9 February 2018
Payment date for second dividend 28 February 2018
Financial year end 31 March
Financial highlights
Unaudited six months ended Unaudited six months ended 30 September 2016 Audited year ended 31 March 2017
30 September 2017
(pence per share) (pence per share) (pence per share)
Dividends paid 2.50 2.50 5.00
Revenue return - 0.53 0.64
Capital return 2.34 2.90 10.23
Net asset value 101.62 97.39 101.79
Total shareholder return to 30 September 2017: (pence per share)
Dividends paid during the year ended:
31 March 2008 0.70
31 March 2009 1.65
31 March 2010 2.00
31 March 2011 3.00
31 March 2012 3.00
31 March 2013 3.50
31 March 2014 5.00
31 March 2015 5.00
31 March 2016 5.00
31 March 2017 5.00
Dividends paid in the six months to 30 September 2017 2.50
Total dividends paid to 30 September 2017 36.35
Net asset value as at 30 September 2017 101.62
Total shareholder return to 30 September 2017 137.97
In addition to the dividends summarised above, the Directors have declared a
second dividend of 2.50 pence per share, payable on 28 February 2018 to
shareholders on the register on 9 February 2018.
Notes
* The dividend of 0.70 pence per share paid during the period ended 31 March
2008 and first dividend of 0.40 pence per share paid during the year ended 31
March 2009 were paid to shareholders who subscribed in the 2006/2007 offer
only.
* Dividends paid by the Company are normally free of income tax for
individuals ages 18 or over. Investors should not disclose any income they
received from a VCT on their tax return unless they have acquired more than
£200,000 of VCT shares in a tax year.
* The net asset value of the Company is not its share price as quoted on the
official list of the London Stock Exchange. The share price of the Company can
be accessed via a link on the Company's webpage at
www.albion.capital/funds/AAEV under 'Trust Information'.
* Investors are reminded that it is common for shares in VCTs to trade at a
discount to their net asset value as tax reliefs are only obtainable on new
subscription.
Interim management report
Introduction
I am pleased to report a total return of 2.3 pence per share for the six
months to 30 September 2017 (30 September 2016: 3.4 pence per share). These
results demonstrate continued positive developments within our investment
portfolio.
Investment performance and progress
During the period, some £4.0 million was invested in existing and new
companies, including £950,000 in MPP Global Solutions, which provides a
digital subscription management platform, £545,000 in G.Network
Communications, which is rolling out a fibre optic network in central London,
and £100,000 in Locum's Nest, which provides a technology solution for the
management of locum doctors for the NHS. In addition, £1.2 million was
invested in Egress Software Technologies, to fund further growth, while
£482,000 was invested in Oviva to fund its expansion, particularly in the UK.
During the period our holding in Hilson Moran was sold, realising proceeds of
£1.47 million and resulting in a three times return on the total investment.
Particularly good progress in the year was achieved by Grapeshot, which has
now moved sharply into profit and which is currently growing in excess of 150%
per annum. In addition, the annual professional valuation of Radnor House
School (Holdings) increased, as pupil numbers at our Radnor House Sevenoaks
School continue to grow.
Aridhia Informatics valuation was reduced, following slower than anticipated
growth. The write-down of Egress Software Technologies valuation was technical
in nature, reflecting a slightly lower valuation than anticipated on our
recent investment; the company continues to show strong growth.
Results and dividends
On 30 September 2017, the net asset value was £52.5 million or 101.62 pence
per share compared to £52.5 million or 101.79 pence per share on 31 March
2017. The total return before taxation was £1.2 million compared to £1.6
million for the six months to 30 September 2016. In line with the annual
dividend target of 5 pence per share, the Directors declare a second dividend
for the year of 2.50 pence per share payable on 28 February 2018 to
shareholders on the register on 9 February 2018.
Patient Capital Review
The Patient Capital Review has been completed and the 2017 Autumn Budget has
now been delivered. Whilst being strongly supportive of VCTs, the Budget has
introduced a number of measures designed to re-direct investment towards
higher growth innovative businesses. Whilst not fundamentally changing the way
that we invest, your Board and the Manager are currently reviewing the
implications of these measures, and will reflect on whether your Company's
stated investment policy needs to be amended at next year's Annual General
Meeting.
Risks & uncertainties
The outlook for the UK and global economies continues to be the key risk
affecting the Company, despite continued growth in the UK. 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 principal risks and uncertainties are detailed in note 13 below.
Share buy-backs
It remains the Board's policy to buy back shares in the market, subject to the
overall constraint that such purchases are in the Company's interest,
including the maintenance of sufficient resources for investment in new and
existing portfolio companies and the continued payment of dividends to
shareholders. It is the Board's intention for such buy-backs to be in the
region of a 5 per cent. discount to net asset value so far as market
conditions and liquidity permit.
Transactions with the Manager
Details of the transactions that took place with the Manager during the period
can be found in note 5.
There are no related party transactions or balances that require disclosure.
Albion VCTs Prospectus Top Up Offers 2017/18
Your Board, in conjunction with the boards of other VCTs managed by Albion
Capital Group LLP, launched a prospectus top up offer of new Ordinary shares
on 6 September 2017 with an aim to raise circa £6 million out of a target of
£32 million in aggregate that the Albion VCTs are seeking to raise. The
proceeds will be used to provide further resources at a time when a number of
attractive investment opportunities are being seen. Details of the first
allotment on 17 November 2017 of £3.67 million are shown in note 10.
Outlook
We see the portfolio as being well balanced across a variety of growth sectors
and with a number of businesses having the capability of significant further
increase in value.
Maxwell Packe
Chairman
4 December 2017
Responsibility statement
The Directors, Maxwell Packe, Lady Balfour of Burleigh, Lord St John of Bletso
and Patrick Reeve, are responsible for preparing the Half-yearly Financial
Report. In preparing these condensed Financial Statements for the period to 30
September 2017 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", give 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.
By order of the Board
Maxwell Packe
Chairman
4 December 2017
Portfolio of investments
The following is a summary of investments as at 30 September 2017:
Portfolio company % voting rights Cost Cumulative movement Value Change in
£'000 in value £'000 value for the period (*)
£'000 £'000
Radnor House School (Holdings) Limited 9.8 3,128 3,467 6,595 668
Egress Software Technologies Limited 10.9 2,052 2,588 4,640 (481)
Grapeshot Limited 5.1 1,026 2,130 3,156 990
Bravo Inns II Limited 13.1 2,150 372 2,522 90
Mirada Medical Limited 15.1 1,055 1,253 2,308 (9)
Proveca Limited 9.6 905 1,018 1,923 24
Regenerco Renewable Energy Limited 12.5 1,261 611 1,872 111
Earnside Energy Limited 8.7 1,394 273 1,667 (27)
Alto Prodotto Wind Limited 11.1 987 544 1,531 5
The Street by Street Solar Programme Limited 8.6 891 560 1,451 68
Greenenerco Limited 28.6 942 482 1,424 12
Process Systems Enterprise Limited 4.1 406 954 1,360 9
DySIS Medical Limited 10.0 2,509 (1,350) 1,159 (11)
Zift Channel Solutions Inc. 2.5 1,053 14 1,067 14
MPP Global Solutions Limited 3.2 950 - 950 -
Oviva AG 3.7 642 160 802 161
memsstar Limited 8.8 373 326 699 264
Convertr Media Limited 6.3 700 (46) 654 (46)
MyMeds&Me Limited 3.4 418 219 637 13
Aridhia Informatics Limited 6.6 1,090 (536) 554 (394)
G.Network Communications Limited 9.1 545 - 545 -
Black Swan Data Limited 1.6 538 - 538 -
OmPrompt Holdings Limited 7.4 682 (151) 531 (1)
Bravo Inns Limited 8.4 755 (263) 492 26
Oxsensis Limited 3.3 625 (253) 372 110
Mi-Pay Group plc 6.3 1,504 (1,162) 342 (26)
Cisiv Limited 8.6 663 (322) 341 1
Abcodia Limited 5.6 764 (450) 314 (44)
Quantexa Limited 2.7 303 - 303 -
Secured by Design Limited 1.9 280 1 281 1
AVESI Limited 5.5 180 73 253 14
Panaseer Limited 2.0 180 47 227 -
Sandcroft Avenue Limited (PayAsUGym.com) 1.8 160 (21) 139 -
Dickson Financial Services Limited 8.4 84 34 118 (4)
Locum's Nest Limited 2.2 100 - 100 -
MHS 1 Limited 1.2 83 (1) 82 -
InCrowd Sports Limited 1.5 66 - 66 -
Beddlestead Limited 10.0 20 - 20 -
Total fixed asset investments 31,464 10,571 42,035 1,538
*As adjusted for additions and disposals during the period.
Total change in value of investments for the period 1,538
Movement in loan stock accrued interest (3)
Unrealised gains sub-total 1,535
Realised gains in current period 259
Total gains on investments as per Income statement 1,794
Fixed asset realisations Cost Opening Disposal Total Gain/(loss) on
£'000 carrying proceeds realised opening
value £'000 gain/(loss) value
£'000 £'000 £'000
Disposals:
Hilson Moran Holdings Limited 201 1,079 1,471 1,270 392
Relayware Limited (merger with Zift Channel Solutions Inc.) 913 911 901 (12) (10)
Loan stock repayments/restructuring:
Oxsensis Limited (conversion of loan stock to equity) 85 117 122 37 5
memsstar Limited 11 189 100 89 (89)
Greenenerco Limited 17 25 25 8 -
Alto Prodotto Wind Limited 2 2 2 - -
Escrow adjustment - - (39) (39) (39)
Total realisations 1,229 2,323 2,582 1,353 259
Condensed income statement
Unaudited Unaudited six months ended 30 September 2016 Audited year ended 31 March 2017
six months ended
30 September 2017
Note Revenue £'000 Capital £'000 Total £'000 Revenue £'000 Capital £'000 Total £'000 Revenue £'000 Capital £'000 Total £'000
Gains on investments 3 - 1,794 1,794 - 1,697 1,697 - 5,790 5,790
Investment income 4 316 - 316 560 - 560 939 - 939
Investment management fees 5 (164) (492) (656) (139) (419) (558) (292) (875) (1,167)
Performance incentive fee 5 (31) (93) (124) - - - (64) (191) (255)
Other expenses (120) - (120) (116) - (116) (227) - (227)
Return on 1 1,209 1,210 305 1,278 1,583 356 4,724 5,080
ordinary activities before taxation
Tax (charge)/credit on ordinary activities - - - (59) 59 - (57) 57 -
Return and total comprehensive income attributable to shareholders 1 1,209 1,210 246 1,337 1,583 299 4,781 5,080
Basic and diluted return per share (pence)* 7 - 2.34 2.34 0.53 2.90 3.43 0.64 10.23 10.87
* excluding treasury shares
Comparative figures have been extracted from the unaudited Half-yearly
Financial Report for the six months ended 30 September 2016 and the audited
statutory accounts for the year ended 31 March 2017.
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
have been prepared in accordance with The Association of Investment Companies'
Statement of Recommended Practice.
Condensed balance sheet
Note Unaudited Unaudited 30 September 2016 £'000 Audited 31 March 2017 £'000
30 September 2017
£'000
Fixed asset investments 42,035 35,719 37,775
Current assets
Trade and other receivables less than one year 1,673 855 232
Cash and cash equivalents 9,385 8,629 15,121
11,058 9,484 15,353
Total assets 53,093 45,203 53,128
Payables: amounts falling due within one year
Trade and other payables less than one year (545) (341) (670)
Total assets less current liabilities 52,548 44,862 52,458
Equity attributable to equity holders
Called up share capital 8 585 521 580
Share premium 23,706 17,564 23,225
Capital redemption reserve 104 104 104
Unrealised capital reserve 10,351 8,070 9,910
Realised capital reserve 2,052 (320) 1,284
Other distributable reserve 15,750 18,923 17,355
Total equity shareholders' funds 52,548 44,862 52,458
Basic and diluted net asset value per share (pence)* 101.62 97.39 101.79
* excluding treasury shares
Comparative figures have been extracted from the unaudited Half-yearly
Financial Report for the six months ended 30 September 2016 and the audited
statutory accounts for the year ended 31 March 2017.
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 4 December 2017 and were signed on its behalf by
Maxwell Packe
Chairman
Company number: 05990732
Condensed statement of changes in equity
Called up Share Capital redemption reserve Unrealised Realised Other distributable Total
share premium £'000 capital capital reserve* £'000
capital £'000 reserve reserve* £'000
£'000 £'000 £'000
As at 1 April 2017 580 23,225 104 9,910 1,284 17,355 52,458
Return/(loss) and total comprehensive income for the period - - - 1,535 (326) 1 1,210
Transfer of previously unrealised gains on disposal of investments - - - (1,094) 1,094 - -
Issue of equity 5 491 - - - - 496
Cost of issue of equity - (10) - - - - (10)
Purchase of shares for treasury - - - - - (312) (312)
Dividends paid - - - - - (1,294) (1,294)
As at 30 September 2017 585 23,706 104 10,351 2,052 15,750 52,548
As at 1 April 2016 518 17,285 104 6,389 24 20,150 44,470
Return/(loss) and total comprehensive income for the period - - - 1,702 (365) 246 1,583
Transfer of previously unrealised gains on disposal of investments - - - (21) 21 - -
Issue of equity 3 283 - - - - 286
Cost of issue of equity - (4) - - - - (4)
Purchase of shares for treasury - - - - - (317) (317)
Dividends paid - - - - - (1,156) (1,156)
As at 30 September 2016 521 17,564 104 8,070 (320) 18,923 44,862
As at 1 April 2016 518 17,285 104 6,389 24 20,150 44,470
Return/(loss) and total comprehensive income for the year
- - - 5,016 (235) 299 5,080
Transfer of previously unrealised gains on disposal of investments - - - (1,495) 1,495 - -
Issue of equity 62 6,106 - - - - 6,168
Cost of issue of equity - (166) - - - - (166)
Purchase of shares for treasury - - - - - (689) (689)
Dividends paid - - - - - (2,405) (2,405)
As at 31 March 2017 580 23,225 104 9,910 1,284 17,355 52,458
* These reserves amount to £17,802,000 (30 September 2016: £18,603,000; 31
March 2017: £18,639,000) which is considered distributable.
Condensed statement of cash flows
Unaudited Unaudited six months ended 30 September 2016 £'000 Audited year ended 31 March 2017 £'000
six months ended
30 September 2017
£'000
Cash flow from operating activities
Investment income received 283 442 733
Dividend income received 28 10 70
Deposit interest received 2 50 76
Investment management fees paid (655) (556) (1,117)
Performance incentive fee paid (255) - -
Other cash payments (147) (128) (226)
Corporation tax paid - - (11)
Net cash flow from operating (744) (182) (475)
activities
Cash flow from investing activities
Purchase of fixed asset investments (4,023) (2,135) (3,375)
Disposal of fixed asset investments 128 526 4,424
Net cash flow from investing (3,895) (1,609) 1,049
activities
Cash flow from financing activities
Issue of share capital 287 2,743 8,271
Cost of issue of equity (2) (5) (1)
Dividends paid (1,094) (981) (2,037)
Purchase of own shares (including costs) (288) (317) (666)
Net cash flow from financing activities (1,097) 1,440 5,567
(Decrease)/increase in cash and cash equivalents (5,736) (351) 6,141
Cash and cash equivalents at start of period 15,121 8,980 8,980
Cash and cash equivalents at end of period 9,385 8,629 15,121
Cash and cash equivalents comprise
Cash at bank and in hand 9,385 8,629 15,121
Cash equivalents - - -
Total cash and cash equivalents 9,385 8,629 15,121
Notes to the 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
2014 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 IPEVCV 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.
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 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 IPEVCV Guidelines.
Indicators of fair value are derived using established methodologies including
earnings multiples, the level of third party offers received, prices of recent
investment rounds, net assets and industry valuation benchmarks. Where the
Company has an investment in an early stage enterprise, the price of a recent
investment round is often the most appropriate approach to determining fair
value. In situations where a period of time has elapsed since the date of the
most recent transaction, 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.
Receivables and 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 and other preferred income
Fixed returns on non-equity shares and debt securities are recognised when the
Company's right to receive payment and expected 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 and other expenses
All expenses have been accounted for on an accruals basis. Expenses are
charged through the other distributable reserve except the following which are
charged through the realised capital reserve:
* 75 per cent. of management fees are allocated to realised capital reserve.
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.
Performance incentive fee
Any performance incentive fee will be allocated between other distributable
and realised capital reserves based upon the proportion to which the
calculation of the fee is attributable to revenue and capital returns.
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 share, 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 diminutions 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 2013 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 buyback 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 equity or debt. The Company
invests in smaller companies principally based in the UK.
3. Gains on investments
Unaudited Unaudited six months ended 30 September 2016 £'000 Audited year ended 31 March 2017 £'000
six months ended
30 September 2017
£'000
Unrealised gains on fixed asset investments 1,535 1,702 5,016
Realised gains/(losses) on fixed asset investments 259 (5) 774
1,794 1,697 5,790
4. Investment income
Unaudited Unaudited six months ended 30 September 2016 £'000 Audited year ended 31 March 2017 £'000
six months ended
30 September 2017
£'000
Income recognised on investments
Interest from loans to portfolio companies 286 499 800
Dividends 28 10 70
Bank deposit interest 2 51 69
316 560 939
All of the Company's income is derived from operations based in the United
Kingdom.
5. Investment management fees
Unaudited Unaudited six months ended 30 September 2016 £'000 Audited year ended 31 March 2017 £'000
six months ended
30 September 2017
£'000
Investment management fee charged to revenue 164 139 292
Investment management fee charged to capital 492 419 875
Performance incentive fee charged to revenue 31 - 64
Performance incentive fee charged to capital 93 - 191
780 558 1,422
Further details of the Management agreement under which the investment
management fee and performance incentive fee are paid is given in the
Strategic report on pages 11 and 12 of the Annual Report and Financial
Statements for the year ended 31 March 2017.
During the period, services of a total value of £656,000 (30 September 2016:
£558,000; 31 March 2017: £1,167,000) were purchased by the Company from
Albion Capital Group LLP. At the financial period end, the amount due to
Albion Capital Group LLP in respect of these services disclosed within
payables was £328,000 (30 September 2016: £280,000; 31 March 2017:
£328,000). For the period to 30 September 2017, a provisional performance
incentive fee of £124,000 has been accrued, however any performance incentive
fee is calculated and only payable based on year end results (30 September
2016: nil: 31 March 2017: £255,000).
Patrick Reeve is the Managing Partner of the Manager, Albion Capital Group
LLP. During the period, the Company was charged £12,000 including VAT (30
September 2016: £12,000; 31 March 2017: £24,000) by Albion Capital Group LLP
in respect of Patrick Reeve's services as a Director. At the financial period
end, the amount due to Albion Capital Group LLP in respect of these services
disclosed as payables was £6,000 (30 September 2016: £6,000; 31 March 2017:
£6,000).
Albion Capital Group LLP is, from time to time, eligible to receive
transaction fees and monitoring fees from portfolio companies. During the
period to 30 September 2017, fees of £135,000 attributable to the investments
of the Company were received pursuant to these arrangements (30 September
2016: £84,000; 31 March 2017: £167,000).
6. Dividends
Unaudited Unaudited six months ended 30 September 2016 £'000 Audited year ended 31 March 2017 £'000
six months ended
30 September 2017
£'000
Dividend of 2.50p per share paid on 31 August 2016 - 1,156 1,156
Dividend of 2.50p per share paid on 28 February 2017 - - 1,249
Dividend of 2.50p per share paid on 31 August 2017 1,294 - -
1,294 1,156 2,405
In addition to the dividends summarised above, the Board has declared a second
dividend for the year ending 31 March 2018 of 2.50 pence per share which will
be paid on 28 February 2018 to shareholders on the register on 9 February
2018. This is expected to amount to approximately £1,386,000.
7. Basic and diluted return per share
Unaudited Unaudited six months ended 30 September 2016 Audited year ended 31 March 2017
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