Albion Prime VCT Albion Prime VCT PLC : Annual -2-
29 June 2012 - 3:24AM
UK Regulatory
be posted to shareholders at the same time as the Annual Report.
Results and dividends
As at 31 March 2012, the net asset value was GBP14.7m or 68.0 pence per share,
compared to GBP14.9m or 70.5 pence per share as at 31 March 2011, after the
payment of tax-free dividends of 3.0 pence per share. The results comprised a
1.8 pence per share revenue return (2011: 2.0 pence per share return) offset by
a 1.7 pence per share capital loss (2011: 0.6 pence per share loss). The revenue
return before taxation was GBP479,000 compared to GBP427,000 for the year to 31
March 2011, though the tax charge was higher than the previous year. The
Company will pay a first dividend of 1.5 pence per share on 31 August 2012 to
those shareholders on the share register on 3 August 2012, which is in line with
the Company's current objective of paying dividends of 3.0 pence per share
annually.
Risks and uncertainties
The outlook for the UK economy continues to be the key risk affecting your
Company, with both the UK and much of Europe returning to recession.
Importantly, however, your Company remains conservatively financed with no bank
borrowings having a prior charge at either corporate or investee company level.
This is in addition to the policy of ensuring that the Company has a first
charge over investee companies' assets.
A detailed analysis of the other risks and uncertainties facing the business is
shown in note 23 to this announcement.
Details of post balance sheet events and related party transactions are set out
in notes 21 and 22 to this announcement.
Share buy-backs
It remains the Board's primary objective to maintain sufficient resources for
investment in existing and new investee companies and for the continued payment
of dividends to shareholders. Thereafter, it is still 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. The Board will limit the sum available for share
buy-backs for the six month period to 30 September 2012 to GBP250,000 in line with
the amount allocated and utilised for the previous six months. Subject to the
constraints referred to above and subject to first purchasing shares held by the
marketmakers, the Board will target such buy-backs to be in the region of a 10%
to 15% discount to net asset value, so far as market conditions and liquidity
permit.
Albion VCTs Linked Top Up Offers
During the year the Company issued 1,163,050 Ordinary shares at a net
consideration of GBP815,000. Details are shown in note 15.
Outlook and prospects
The outlook for the UK economy remains uncertain but despite this, the majority
of our portfolio companies continue to show growth. In the meantime, we are now
concentrating our investment activities in sectors that we see as being of long
term value; in the current investment climate, where there is a general shortage
of finance, we are seeing interesting investment opportunities at attractive
prices. The proposed merger with Albion Venture Capital Trust PLC, if approved,
will provide greater resources to take advantage of these and in due course
enable a greater spread of investments.
Martin Bralsford
Chairman
28 June 2012
Manager's report
Investment portfolio
Over the year, we have made progress in re-balancing the Company's investment
portfolio by increasing the weighting in the healthcare and renewable energy
sectors, which we believe to have less exposure to the consumer and business
cycle, and reducing the weighting in hotels.
Split of portfolio by sector
Please see the end of this announcement for the PDF of the sector split of the
portfolio by valuation as at 31 March 2012.
Investment activity
During the year the Company sold its investment in The Place Sandwich VCT, which
owned the Bell Hotel in Sandwich, realising proceeds of GBP975,000 compared to the
holding value at 31 March 2011 of GBP819,000 and cost of GBP898,000. Including
interest of GBP416,000 over the course of the investment, the total return was
approximately 1.6 times cost. In addition, GBP182,000 of loan stock was repaid by
Kew Green VCT (Stansted). This has led to hotels falling to 42 per cent. of the
Company's portfolio at 31 March 2012 (2011: 52 per cent.).
A total of GBP657,000 was invested in three healthcare companies during the year.
These comprised GBP494,000 as a scheduled follow-on investment in Oakland Care
Centre, which opened a 46 bedroom care home for the elderly in Chingford in
October 2011; GBP132,000 in Nelson House Hospital, which opened a psychiatric
hospital in Gosport, Hampshire in April 2012; and GBP31,000 in Orchard Portman
Hospital, which opened a psychiatric hospital near Taunton, Somerset in May
2011. The occupancies of all three units are building up steadily.
In the renewable energy sector, GBP732,000 was invested in six companies. These
comprised GBP238,000 in Alto Prodotto Wind, which is erecting single unit wind
turbines on industrial sites in Wales; GBP220,000 in The Street by Street Solar
Programme which has been installing photovoltaic panels on residential buildings
in the Thames Valley; GBP166,000 in Regenerco Renewable Energy which has been
installing photovoltaic panels on a number of commercial buildings on the South
Coast and in Birmingham and domestic buildings in Cambridgeshire; GBP60,000 in
AVESI; and GBP45,000 in Greenenerco. These last two are also to fund wind projects
on industrial and brownfield sites. Finally, an additional GBP3,000 was invested
in TEG Biogas (Perth) whose anaerobic digestion plant in Scotland, converting
food waste to energy, is now operational.
Portfolio review
In the hotel portfolio, revenue at the Holiday Inn Express at Stansted Airport
marginally increased over the year, but profits were lower and the independent
valuation reduced. The Crown Hotel in Harrogate also experienced lower
profitability and a decrease in valuation, but prospects for the current year
are more encouraging. The Stanwell Hotel, in the village of Stanwell near
Heathrow's Terminal 5, continued to disappoint. The valuation of the Stanwell
Hotel was sharply lower, leading to a decision to change our operating partner.
Meanwhile the Bear Hotel in Hungerford saw its valuation remain steady.
The cinema portfolio had another good year, leading to a further uplift in
valuations, especially the Greenwich Picturehouse which repaid GBP15,000 loan
stock, while CS (Brixton) retained cash for refurbishment. The Picturehouse at
FACT in Liverpool, the Exeter Picturehouse and Cinema City in Norwich also saw
strong increases in profitability.
In the health and fitness portfolio, the 37(o) health and fitness club near
Tower Bridge continued to experience strong trading and repaid GBP19,000 loan
stock to the Company and independent valuations of it and the Weybridge Club led
to a small increase in the Company's holding values. The 37(o) health and
fitness club in Kensington meanwhile saw a slight decline in valuation. All
these clubs, however, continue to experience growth in membership.
In the pub portfolio, The Charnwood Pub Company, which operates food-led pubs in
central England, repaid GBP96,000 loan stock; and GB Pub Company VCT sold one of
its two remaining pubs and repaid GBP14,000. Trading grew in the wet-led Bravo
Inns pubs in the North-West, leading to an increase in valuations, but a write
down in the value of GB's remaining pub and a small decline in Charnwood's
portfolio, led to the portfolio as a whole remaining stable.
One of the highlights of the year was the successful opening of Radnor House
School in Twickenham in September 2011 with twice the budgeted level of pupils.
This led to a pleasing uplift in valuation. We were also delighted that it has
recently been rated "outstanding" in an OFSTED inspection.
Albion Ventures LLP
Manager
28 June 2012
Responsibility Statement
In preparing these financial statements for the year to 31 March 2012, the
Directors of the Company, being Martin Bralsford, Ebbe Dinesen, Modwenna Rees-
Mogg and Patrick Reeve, confirm that to the best of their knowledge:
- summary financial information contained in this announcement and the full
Annual Report and Financial Statements for the year ended 31 March 2012 for the
Company has been prepared in accordance with United Kingdom Generally Accepted
Accounting Practice (UK Accounting Standards and applicable law) and give a true
and fair view of the assets, liabilities, financial position and profit and loss
of the Company for the year ended 31 March 2012 as required by DTR 4.1.12.R;
-the Chairman's statement and Manager's report include a fair review of the
information required by DTR 4.2.7R (indication of important events during the
year ended 31 March 2012 and description of principal risks and uncertainties
that the Company faces); and
-the Chairman's statement and Manager's report include a fair review of the
information required by DTR 4.2.8R (disclosure of related parties transactions
and changes therein).
A detailed "Statement of Directors' responsibilities for the preparation of the
Company's financial statements" is contained within the full audited Annual
Report and Financial Statements.
By order of the Board
Martin Bralsford
Chairman
Income statement
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| | | Year ended | Year ended |
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