Annual Financial Report>
Annual Financial Report
(Thomson Reuters ONE) - Albion Protected VCT PLCAs required by the UK Listing Authority's Disclosure and TransparencyRules 4.1 and 6.3, Albion Protected VCT PLC today makes public itsinformation relating to the Annual Report and Financial Statementsfor the year ended 31 March 2009.This announcement was approved by the Board of Directors on 1 July2009.Please click on the following link to view the full Annual Report andFinancial Statements (which have been audited) for the year to 31March 2009. The information contained in this link includesinformation as required by the Disclosure and Transparency Rules,including Rule 4.1.Annual Report and Financial Statements:http://hugin.info/141804/R/1326609/312275.pdfAlternatively you may view the Annual Report and Financial Statementsat: www.albion-ventures.co.uk by clicking on the 'Our Funds' section.Investment ObjectivesAlbion Protected VCT PLC (the "Company") commenced trading in April1997. Within the overall aim of maximising the considerable taxbenefits available to shareholders in a venture capital trust, theCompany's investment strategy was designed to meet the requirementsof investors who seek to protect the capital value of theirinvestment whilst still providing an attractive level of return.Following shareholder approval in 2002 to change the Company'sinvestment policy, the investments made by Albion Protected VCT PLCcurrently fall into the following categories:* Qualifying asset-based investmentsThese comprise investments principally in the hotel, leisure andresidential development sectors, with a mixture of equity and loanstock, with the loan stock normally holding a first charge overfreehold or long leasehold property.* Qualifying AIM investmentsThese comprise new ordinary shares issued by companies quoted on AIM;this portfolio is in the process of being wound down and re-investedin asset-based investments.* Non-qualifying investmentsThe remaining funds are invested in cash and floating rate notes, orsimilar investments, with banks with a Moody's rating of A and above.Financial Calendar+-------------------------------------------------------------------+| Record date for first dividend | 10 July 2009 ||---------------------------------------------------+---------------|| Annual General Meeting | 31 July 2009 ||---------------------------------------------------+---------------|| Payment of first dividend | 7 August 2009 ||---------------------------------------------------+---------------|| Announcement of half-yearly results for the six | || months ended 30 September 2009 | November 2009 ||---------------------------------------------------+---------------|| Payment of second dividend | January 2010 |+-------------------------------------------------------------------+Financial Highlights+-------------------------------------------------------------------+| | Year ended | Year ended || | 31 March 2009 | 31 March 2008 || | (pence per share) | (pence per share) ||---------------------------+-------------------+-------------------|| | | ||---------------------------+-------------------+-------------------|| Dividends paid per share | 4.5 | 5.0 ||---------------------------+-------------------+-------------------|| Revenue return per share | 2.4 | 3.3 ||---------------------------+-------------------+-------------------|| Capital loss per share | (18.5) | (6.8) ||---------------------------+-------------------+-------------------|| Net asset value per share | 72.0 | 92.6 |+-------------------------------------------------------------------+Total shareholder net asset value return to 31 March 2009:+-------------------------------------------------------------------+| Total dividends paid during the year | | || ended | 31 March 1998 | 1.10 ||------------------------------------------+---------------+--------|| | 31 March 1999 | 6.40 ||------------------------------------------+---------------+--------|| | 31 March 2000 | 1.50 ||------------------------------------------+---------------+--------|| | 31 March 2001 | 4.25 ||------------------------------------------+---------------+--------|| | 31 March 2002 | 2.75 ||------------------------------------------+---------------+--------|| | 31 March 2003 | 2.00 ||------------------------------------------+---------------+--------|| | 31 March 2004 | 1.25 ||------------------------------------------+---------------+--------|| | 31 March 2005 | 2.20 ||------------------------------------------+---------------+--------|| | 31 March 2006 | 4.50 ||------------------------------------------+---------------+--------|| | 31 March 2007 | 4.00 ||------------------------------------------+---------------+--------|| | 31 March 2008 | 5.00 ||------------------------------------------+---------------+--------|| | 31 March 2009 | 4.50 ||------------------------------------------+---------------+--------|| | | ||------------------------------------------+---------------+--------|| | | ||------------------------------------------+---------------+--------|| Total dividends paid to 31 March 2009 | | 39.45 ||------------------------------------------+---------------+--------|| Net asset value as at 31 March 2009 | | 72.00 ||------------------------------------------+---------------+--------|| Total return to 31 March 2009 | | 111.45 |+-------------------------------------------------------------------+In addition to the above dividends paid, the Directors have declareda first dividend for the new financial year of 1 penny per Ordinaryshare, payable on 7 August 2009 to shareholders on the register as at10 July 2009.Chairman's StatementIntroductionThe results for the year to 31 March 2009 show the continuing effectsof the recession in the UK. The Company recorded a negative returnof 16.1 pence per share (2008: negative 3.5 pence per share), takingthe net asset value down to 72.0 pence per share (2008: 92.6 penceper share). This was caused principally by a continued decline ininvestment valuations in line with the general trends in the propertysector. In addition, income generated by your Company's investmentportfolio declined during the period, partly as a result of very lowinterest rates available on cash deposits, and partly due to tradingpressures on some of our investee companies. This, in turn, has ledto a reduction in the dividend payable to shareholders until suchtime as sufficient capital profits are realised from the sale ofinvestments.Investment progress and prospectsDuring the year, some £1.5 million was invested in one new and nineexisting investee companies. These are dealt with in more detail inthe Manager's Report below.The largest contributor to the fall in net asset value was thefurther reduction of the valuation of Kew Green VCT (Stansted)Limited, which owns and operates the "Express by Holiday Inn" hotelat Stansted Airport. Passenger numbers have been decreasing atStansted Airport during the course of the year and the resultingdecline in occupancy, combined with pressure on property values ingeneral, has resulted in a sharp reduction in value. Neverthelessthe hotel remains profitable after interest and is generatingsufficient cash to begin the process of repaying the Company's loanstock investment.The recession has also affected the trading of a variety of our otherinvestee companies, in particular certain of our hotels and pubs.However, despite the negative impact of this on the Company'sresults, the investment portfolio is cash generative and we believethat your Company's policy of ensuring that it has a first chargeover the investee companies' assets continues to help mitigate theadverse affects of the current economic downturn. In addition, weanticipate that the reduction in valuations currently being seen willgive rise to a number of investment opportunities at attractivevaluations.Your Company continued its policy of winding down its portfolio ofAIM-quoted stocks, realising proceeds of £266,000 during the period.In addition, £660,000 was also received from the continuing processof winding down the residential development portfolio.Recovery of historic VATFollowing a period of lobbying by the Association of InvestmentCompanies, the welcome review of the position regarding the exemptionof management fees from VAT by HM Revenue & Customs in July 2008 hasmeant that the Manager is able to reclaim historic VAT that it hadpreviously charged to the Company. A reclaim of historic VAT of£320,000 (before the deduction of tax) has been credited to theaccounts in respect of the repayment. Further details regarding thisclaim, and its disclosure, are shown in note 5 of this announcement.With effect from 1 October 2008, all management and administrationfees are considered exempt from VAT.Risks and uncertaintiesThe strongly negative outlook for the UK economy continues to be thekey risk affecting the Company and, as mentioned above, we are seeingthe effects of this in certain sectors of our portfolio.Nevertheless, our policy for investee companies to have no externalbank borrowings leads us to anticipate that, over the longer term,the current reductions in valuation generally represent valuedeferred rather than value permanently lost, even though valuationsmay still come under further pressure in the short term. Meanwhile,opportunities within our target sectors continue to arise atattractive valuations, including the healthcare sector which will beone of our core areas of concentration going forward. A detailedanalysis of the other risks and uncertainties facing the business areshown in note 12 of this announcement.Shareholder surveyThe Manager recently performed a shareholder survey. Questionnaireswere sent to all shareholders and a 24% response rate (by number ofshareholders) was achieved. Of these shareholders, 83% were satisfiedor very satisfied with the returns on the Company, 68% intended tohold their shares indefinitely, and dividend yield was ranked as themost common feature that investors were looking for in a venturescapital trust. The Board wishes to thank shareholders who took partin the survey and will bear in mind the findings. The full surveyresults will be available to view on the Manager's website atwww.albion-ventures.co.uk under the 'Our Funds' section.Results and dividendsAs at 31 March 2009, the net asset value was £15.1 million or 72.0pence per share, compared to £19.6 million or 92.6 pence per share asat 31 March 2008. The revenue return before taxation was £614,000compared to £812,000 for the year to 31 March 2008. The Company willpay a dividend of 1 penny per share on 7 August 2009 to thoseshareholders on the share register as at 10 July 2009Discount management and share buy-backsIt remains the Board's policy to buy back shares in the market,subject to the overall constraint that such purchases are in theCompany's interest, including the maintenance of sufficient liquidresources for investment in existing and new investee companies andthe continued payment of dividends to shareholders. In order tobalance these different requirements, the Company's buy-back policyhas been amended such that the Company will now limit the sumsavailable for share buy-backs for the period to 30 September 2009 to£100,000. Once this limit has been reached, the Board will reviewits policy in the light of cash available for new investments and fordividends to existing shareholders. Given the high level ofvolatility apparent in all markets, the discount to net asset valueper share at which shares are bought back is likely to continue to bewider than that which applied historically.Change of Manager and name changeThe business of Close Ventures Limited was acquired by AlbionVentures LLP from Close Brothers Group plc on 23 January 2009. AlbionVentures has been formed by the executive directors of Close VenturesLimited; meanwhile Close Brothers Group plc will continue to have aninvestment in the business. The Company's management contract hasbeen novated from Close Ventures to Albion Ventures under exactly thesame terms as the existing agreement. The investment approach ofAlbion Ventures and the investment policy of the Company are alsounchanged, with a continued emphasis on building up a broad portfolioof investee companies normally with no external bank borrowingsand the maintenance of a regular dividend yield. As a result of thischange, the Company Secretary has changed to Albion Ventures LLP.Following the vote in favour of the resolution at the General Meetingon 27 March 2009, the Company has changed its name to AlbionProtected VCT PLC.Changes to the Board of DirectorsI would like to take this opportunity to thank ChristopherHoldsworth-Hunt and Giles Pitman, who resigned as Directors on 31December 2008, for their services to the Company. Giles Pitman hadbeen a director since the inception of the Company, serving asChairman of the Audit Committee, and Christopher Holdsworth-Huntsince 31 March 1999 and I am very grateful to them for their wisecounsel. I am very pleased to welcome in their place Ebbe Dinesen,who is the new Chairman of the Audit Committee, and ModwennaRees-Mogg.Martin BralsfordChairman1 July 2009Manager's ReportAlbion Protected VCT PLC's investment portfolio as at 31 March 2009is shown below.Split of portfolio valuation by sector as at 31 March 2009http://hugin.info/141804/R/1326609/312268.pdfSource: Albion Ventures LLPReview of investmentsAlthough all of your Company's hotel investments are showing anoperating profit, the majority have seen a down-turn in trading overthe last year. This is partly been due to specific factors such asthe decline in traffic at Stansted Airport and partly due to otherfactors related to the general slowdown in the business and leisureenvironments. Currently, the exception is the Crown Hotel inHarrogate, where, following the refurbishment of the hotel, tradingcontinues to grow on previous years. Overall, though, these factorshave led to a reduction in income to the Company. In addition, theStanwell Hotel is currently closed pending its refurbishment andreconstruction as a niche airport hotel. Construction has commencedand the hotel is scheduled to re-open in spring 2010.As previously reported, the residential development investments arecurrently being wound down; £660,000 was received from thesecompanies during the year, with a further £450,000 receivedsubsequent to the year end. As regards the AIM portfolio, ourholdings in Financial Objects plc, SSP Holdings plc, Xpertise plc,and Microgen plc were sold during the year, realising proceeds of£266,000. Subsequent to the year end, our holdings in Tepnel LifeSciences plc and Pilat Media Global plc were disposed of for proceedsof £513,000.Meanwhile, trading in our cinemas continues to be strong with apromising trading performance and improved profitability fromprevious years. Membership of our four health and fitness clubscontinues to grow though the valuations have been hit in line withthe general market, while trading in the great majority of our pubsremains profitable at the operating level and robust despite theirfall in value. The holding values of all the Company's investments inthe hotel, cinema, health and fitness and pub sectors are based onrecent valuations of the relevant assets by independent professionalvaluers.New investmentsOverall, the current recession is providing a number of interestinginvestment opportunities at attractive prices. A new investment of£130,000 was made during the year in Bravo Inns II Limited, which hasnow purchased 11 pubs in the North West of England at prices that arecurrently generating a strong return on capital. The principalinvestments in existing investee companies were a scheduledinvestment of £900,000 in The Stanwell Hotel Limited, £209,000 in ThePlace Sandwich Limited and £108,000 in The Crown Hotel HarrogateLimited.Although a number of interesting leisure-related opportunities arebeing looked at, particular attention is being paid to healthcarerelated investments in order to provide a counter balance against theconsumer orientated nature of the great majority of the investmentportfolio. Your Company is actively working with partners in boththe mental health and the care sectors with a variety ofopportunities currently under consideration.Details of related party transactions are shown in note 15 of thisannouncement.Albion Ventures LLPManager1 July 2009Responsibility StatementIn preparing these financial statements for the year to 31 March2009, the Directors of the Company, being Martin Bralsford, EbbeDinesen, Modwenna Rees-Mogg and Patrick Reeve, confirm that to thebest of their knowledge:-summary financial information contained in this announcement and thefull Annual Report and Financial Statements for the year ended 31March 2009 for the Company has been prepared in accordance withUnited Kingdom Generally Accepted Accounting Practice (UK AccountingStandards and applicable law) and give a true and fair view of theassets, liabilities, financial position and profit and loss of theCompany for the year ended 31 March 2009 as required by DTR 4.2.R;-the Chairman's Statement and Manager's Report include a fair reviewof the information required by DTR 4.2.7R (indication of importantevents during the year ended 31 March 2009 and description ofprincipal risks and uncertainties that the Company faces); and-the Chairman's Statement and Manager's Report include a fair reviewof the information required by DTR 4.2.8R (disclosure of relatedparties transactions and changes therein).A detailed "Statement of Directors' responsibilities for thepreparation of the Company's financial statements" is containedwithin the full audited Annual Report and Financial Statements whichis attached to this announcement.By order of the BoardMartin BralsfordChairman1 July 2009Income Statement+-----------------------------------------------------------------------------+| | Year ended | Year ended || |-----------------------+-----------------------|| | 31 March 2009 | 31 March 2008 || |-----------------------+-----------------------|| |Revenue|Capital| Total|Revenue|Capital| Total|| |-------+-------+-------+-------+-------+-------|| | £'000| £'000| £'000| £'000| £'000| £'000||-----------------------------+-------+-------+-------+-------+-------+-------||Losses on investments | -|(3,894)|(3,894)| -|(1,303)|(1,303)||-----------------------------+-------+-------+-------+-------+-------+-------||Investment income | 814| -| 814| 1,176| -| 1,176||-----------------------------+-------+-------+-------+-------+-------+-------||Investment management fees | (84)| (253)| (337)| (114)| (340)| (454)||-----------------------------+-------+-------+-------+-------+-------+-------||Recovery of VAT | 80| 240| 320| -| -| -||-----------------------------+-------+-------+-------+-------+-------+-------||Other expenses | (196)| -| (196)| (250)| -| (250)||-----------------------------+-------+-------+-------+-------+-------+-------||Return/(loss) on ordinary | | | | | | ||activities before tax | 614|(3,907)|(3,293)| 812|(1,643)| (831)||-----------------------------+-------+-------+-------+-------+-------+-------||Tax (charge)/credit on | | | | | | ||ordinary activities | (111)| 4| (107)| (67)| 124| 57||-----------------------------+-------+-------+-------+-------+-------+-------||Return/(loss) attributable to| | | | | | ||shareholders | 503|(3,903)|(3,400)| 745|(1,519)| (774)||-----------------------------+-------+-------+-------+-------+-------+-------||Basic and diluted | | | | | | ||return/(loss) per share | | | | | | ||(pence) * | 2.4| (18.5)| (16.1)| 3.3| (6.8)| (3.5)|+-----------------------------------------------------------------------------+* excluding treasury sharesThe accompanying notes form an integral part of this announcement.The total column of this Income Statement represents the profit andloss account of the Company. The supplementary revenue and capitalcolumns have been prepared in accordance with the Association ofInvestment Companies' Statement of Recommended Practice.All revenue and capital items in the above statement derive fromcontinuing operations.There are no recognised gains or losses other than the results forthe year disclosed above. Accordingly a Statement of Total RecognisedGains and Losses is not required.The difference between the reported loss on ordinary activitiesbefore tax and the historical profit is due to the fair valuemovements on investments. As a result a Note on Historical CostProfit and Losses has not been prepared.Balance Sheet+-------------------------------------------------------------------+| | 31 March 2009 | 31 March 2008 ||-----------------------------------+---------------+---------------|| | £'000 | £'000 ||-----------------------------------+---------------+---------------|| Fixed asset investments | | ||-----------------------------------+---------------+---------------|| Qualifying | 13,766 | 17,589 ||-----------------------------------+---------------+---------------|| Non-qualifying | 195 | 1 ||-----------------------------------+---------------+---------------|| Total fixed asset investments | 13,961 | 17,590 ||-----------------------------------+---------------+---------------|| | | ||-----------------------------------+---------------+---------------|| Current assets | | ||-----------------------------------+---------------+---------------|| Trade and other debtors | 53 | 127 ||-----------------------------------+---------------+---------------|| Cash at bank and in hand | 1,264 | 2,035 ||-----------------------------------+---------------+---------------|| Total current assets | 1,317 | 2,162 ||-----------------------------------+---------------+---------------|| | | ||-----------------------------------+---------------+---------------|| Creditors: amounts falling due | | || within one year | (221) | (178) ||-----------------------------------+---------------+---------------|| | | ||-----------------------------------+---------------+---------------|| Net current assets | 1,096 | 1,984 ||-----------------------------------+---------------+---------------|| | | ||-----------------------------------+---------------+---------------|| Net assets | 15,057 | 19,574 ||-----------------------------------+---------------+---------------|| | | ||-----------------------------------+---------------+---------------|| Capital and reserves | | ||-----------------------------------+---------------+---------------|| Called up share capital | 11,620 | 11,771 ||-----------------------------------+---------------+---------------|| Share premium | 1 | - ||-----------------------------------+---------------+---------------|| Special reserve | 8,631 | 8,886 ||-----------------------------------+---------------+---------------|| Capital redemption reserve | 2,334 | 2,167 ||-----------------------------------+---------------+---------------|| Treasury shares reserve | (2,276) | (2,345) ||-----------------------------------+---------------+---------------|| Realised capital reserve | (1,285) | (139) ||-----------------------------------+---------------+---------------|| Unrealised capital reserve | (4,173) | (1,416) ||-----------------------------------+---------------+---------------|| Revenue reserve | 205 | 650 ||-----------------------------------+---------------+---------------|| Total equity shareholders' funds | 15,057 | 19,574 ||-----------------------------------+---------------+---------------|| | | ||-----------------------------------+---------------+---------------|| Basic and diluted net asset | | || value per share (pence) | 72.0 | 92.6 |+-------------------------------------------------------------------+The accompanying notes form an integral part of this announcement.Reconciliation of Movement in Shareholders' Funds+--------------------------------------------------------------------------------------------------------------------+| |Called-up| | | Capital|Realised|Unrealised|Treasury| | || | share| Share| Special|redemption| capital| capital| shares| Revenue| || | capital|premium|reserve*| reserve|reserve*| reserve*|reserve*|reserve*| Total||--------------------------------+---------+-------+--------+----------+--------+----------+--------+--------+-------|| | £'000| £'000| £'000| £'000| £'000| £'000| £'000| £'000| £'000||--------------------------------+---------+-------+--------+----------+--------+----------+--------+--------+-------||As at 1 April 2008 | 11,771| -| 8,886| 2,167| (139)| (1,416)| (2,345)| 650| 19,574||--------------------------------+---------+-------+--------+----------+--------+----------+--------+--------+-------|| | | | | | | | | | ||Net realised losses on | | | | | | | | | ||investments in the year | -| -| -| -| (1,137)| -| -| -|(1,137)||--------------------------------+---------+-------+--------+----------+--------+----------+--------+--------+-------|| | | | | | | | | | ||Capitalised investment | | | | | | | | | ||management fee | -| -| -| -| (253)| -| -| -| (253)||--------------------------------+---------+-------+--------+----------+--------+----------+--------+--------+-------|| | | | | | | | | | ||Tax relief on costs charged to | | | | | | | | | ||capital | -| -| -| -| 4| -| -| -| 4||--------------------------------+---------+-------+--------+----------+--------+----------+--------+--------+-------|| | | | | | | | | | ||Recoverable VAT capitalised | -| -| -| -| 240| -| -| -| 240||--------------------------------+---------+-------+--------+----------+--------+----------+--------+--------+-------|| | | | | | | | | | ||Purchase of own shares for | | | | | | | | | ||cancellation | (167)| -| (186)| 167| | -| -| -| (186)||--------------------------------+---------+-------+--------+----------+--------+----------+--------+--------+-------|| | | | | | | | | | ||--------------------------------+---------+-------+--------+----------+--------+----------+--------+--------+-------||Cancellation of treasury shares | -| -| (69)| -| -| -| 69| -| -||--------------------------------+---------+-------+--------+----------+--------+----------+--------+--------+-------|| | | | | | | | | | ||Unrealised losses on fixed asset| | | | | | | | | ||investments | -| -| -| -| -| (2,757)| -| -|(2,757)||--------------------------------+---------+-------+--------+----------+--------+----------+--------+--------+-------|| | | | | | | | | | ||Issue of equity (net of costs) | 16| 1| -| -| -| -| -| -| 17||--------------------------------+---------+-------+--------+----------+--------+----------+--------+--------+-------|| | | | | | | | | | ||Revenue return attributable to | | | | | | | | | ||shareholders | -| -| -| -| -| -| -| 503| 503||--------------------------------+---------+-------+--------+----------+--------+----------+--------+--------+-------|| | | | | | | | | | ||Dividends paid | | | | | | | | (948)| (948)||--------------------------------+---------+-------+--------+----------+--------+----------+--------+--------+-------||As at 31 March 2009 | 11,620| 1| 8,631| 2,334| (1,285)| (4,173)| (2,276)| 205| 15,057|+--------------------------------------------------------------------------------------------------------------------++--------------------------------------------------------------------------------------------------------------------+| |Called-up| | | Capital|Realised|Unrealised|Treasury| | || | share| Share| Special|redemption| capital| capital| shares| Revenue| || | Capital|premium|reserve*| reserve|reserve*| reserve*|reserve*|reserve*| Total||--------------------------------+---------+-------+--------+----------+--------+----------+--------+--------+-------|| | £'000| £'000| £'000| £'000| £'000| £'000| £'000| £'000| £'000||--------------------------------+---------+-------+--------+----------+--------+----------+--------+--------+-------||As at 1 April 2007 | 12,116| -| 9,476| 1,822| 101| 515| (250)| 390| 24,170||--------------------------------+---------+-------+--------+----------+--------+----------+--------+--------+-------|| | | | | | | | | | ||Purchase of own shares for | | | | | | | | | ||cancellation | (345)| -| (590)| 345| -| -| 250| -| (340)||--------------------------------+---------+-------+--------+----------+--------+----------+--------+--------+-------|| | | | | | | | | | ||Capitalised investment | | | | | | | | | ||management fees | -| -| -| | (340)| -| -| -| (340)||--------------------------------+---------+-------+--------+----------+--------+----------+--------+--------+-------|| | | | | | | | | | ||Tax relief on costs charged to | | | | | | | | | ||capital | -| -| -| | 123| -| -| -| 123||--------------------------------+---------+-------+--------+----------+--------+----------+--------+--------+-------|| | | | | | | | | | ||Purchase of own treasury shares | -| -| -| -| -| -| (2,345)| -|(2,345)||--------------------------------+---------+-------+--------+----------+--------+----------+--------+--------+-------|| | | | | | | | | | ||Realised gains on investments | -| -| -| -| 628| -| -| -| 628||--------------------------------+---------+-------+--------+----------+--------+----------+--------+--------+-------|| | | | | | | | | | ||Unrealised losses on fixed asset| | | | | | | | | ||investments | -| -| -| -| -| (1,931)| -| -|(1,931)||--------------------------------+---------+-------+--------+----------+--------+----------+--------+--------+-------|| | | | | | | | | | ||Revenue return attributable to | | | | | | | | | ||shareholders | -| -| -| -| -| -| -| 745| 745||--------------------------------+---------+-------+--------+----------+--------+----------+--------+--------+-------|| | | | | | | | | | ||Dividends paid | -| -| -| -| (651)| -| -| (485)|(1,136)||--------------------------------+---------+-------+--------+----------+--------+----------+--------+--------+-------||As at 31 March 2008 | 11,771| -| 8,886| 2,167| (139)| (1,416)| (2,345)| 650| 19,574|+--------------------------------------------------------------------------------------------------------------------+Included within these reserves is an amount of £1,102,000 (2008:£5,636,000) which is considered available for distribution. TheSpecial reserve has been treated as available for distribution indetermining the amounts available for distribution.Cash Flow Statement+-------------------------------------------------------------------+| | Year ended | Year ended || | 31 March | 31 March || | 2009 | 2008 || | £'000 | £'000 ||---------------------------------------+-------------+-------------|| Operating activities | | ||---------------------------------------+-------------+-------------|| Investment income received | 850 | 934 ||---------------------------------------+-------------+-------------|| Deposit interest received | 51 | 160 ||---------------------------------------+-------------+-------------|| Investment management fees paid | (257) | (488) ||---------------------------------------+-------------+-------------|| VAT recovered | 278 | - ||---------------------------------------+-------------+-------------|| Other cash payments | (262) | (237) ||---------------------------------------+-------------+-------------|| Net cash inflow from operating | | || activities | 660 | 369 ||---------------------------------------+-------------+-------------|| | | ||---------------------------------------+-------------+-------------|| Taxation | | ||---------------------------------------+-------------+-------------|| UK corporation tax received/(paid) | 30 | (3) ||---------------------------------------+-------------+-------------|| | | ||---------------------------------------+-------------+-------------|| Capital expenditure and financial | | || investments | | ||---------------------------------------+-------------+-------------|| Purchase of qualifying investments | (1,390) | (1,984) ||---------------------------------------+-------------+-------------|| Purchase of non-qualifying | | || investments | (94) | - ||---------------------------------------+-------------+-------------|| Disposals of qualifying investments | 1,115 | 4,238 ||---------------------------------------+-------------+-------------|| Net cash (outflow)/inflow from | | || investing activities | (369) | 2,254 ||---------------------------------------+-------------+-------------|| | | ||---------------------------------------+-------------+-------------|| Equity dividends paid | | ||---------------------------------------+-------------+-------------|| Dividends paid | (948) | (1,136) ||---------------------------------------+-------------+-------------|| Net cash (outflow)/inflow before | | || financing | (627) | 1,484 ||---------------------------------------+-------------+-------------|| | | ||---------------------------------------+-------------+-------------|| Financing | | ||---------------------------------------+-------------+-------------|| Purchase of own shares | (162) | (2,684) ||---------------------------------------+-------------+-------------|| Issue of share capital (net of costs) | 18 | - ||---------------------------------------+-------------+-------------|| Net cash outflow from financing | (144) | (2,684) ||---------------------------------------+-------------+-------------|| | | ||---------------------------------------+-------------+-------------|| Cash outflow | (771) | (1,200) |+-------------------------------------------------------------------+Notes to the announcement1. Accounting conventionThe financial statements have been prepared in accordance with thehistorical cost convention, modified to include the revaluation ofinvestments, in accordance with applicable United Kingdom law andaccounting standards and with the Statement of Recommended Practice"Financial Statements of Investment Trust Companies" ("SORP") issuedby the Association of Investment Companies ("AIC") in January 2009.Albion Protected VCT PLC has decided to adopt the principles of theJanuary 2009 SORP earlier than the mandatory date. Accountingpolicies have been applied consistently in current and prior periods.The financial statements are prepared under the historical costconvention, modified by the revaluation of certain investments.2. Accounting policiesInvestmentsQuoted and unquoted equity investmentsIn accordance with FRS 26 "Financial Instruments Recognition andMeasurement", quoted and unquoted equity investments are designatedas fair value through profit or loss ("FVTPL"). Investments listed onrecognised exchanges are valued at the closing bid prices at the endof the accounting period. Unquoted investments' fair value isdetermined by the Directors in accordance with the InternationalPrivate Equity and Venture Capital Valuation Guidelines (IPEVCVguidelines).Fair value movements on equity investments and gains and lossesarising on the disposal of investments are reflected in the capitalcolumn of the Income Statement in accordance with the AIC SORP andrealised gains or losses on the sale of investments will be reflectedin the Realised capital reserve, and unrealised gains or lossesarising from the revaluation of investments will be reflected in theUnrealised capital reserve.Unquoted loan stockUnquoted loan stock is classified as loans and receivables inaccordance with FRS 26 and carried at amortised cost using theEffective Interest Rate method ("EIR") less impairment. Movements inthe amortised cost relating to interest income are reflected in therevenue column of the Income Statement, and hence are reflected inthe Revenue reserve, and movements in respect of capital provisionsare reflected in the capital column of the Income Statement and arereflected in the Realised capital reserve following sale, or in theUnrealised capital reserve on revaluation.Loan stocks which are not impaired or past due are considered fullyperforming in terms of contractual interest and capital repaymentsand the Board does not consider that there is a current likelihood ofa shortfall on security cover for these assets. For unquoted loanstock, the amount of the impairment is the difference between theasset's cost and the present value of estimated future cash flows,discounted at the effective interest rate.Investments are recognised as financial assets on legal completion ofthe investment contract and are de-recognised on legal completion ofthe sale of an investment.Dividend income is not recognised as part of the fair value movementof an investment, but is recognised separately as investment incomethrough the Revenue reserve when a share becomes ex-dividend.Loan stock accrued interest is recognised in the Balance Sheet aspart of the carrying value of the loans and receivables at the end ofeach reporting period.It is not the Company's policy to exercise control or significantinfluence over investee companies. Therefore, in accordance with theexemptions under FRS 9 "Associates and joint ventures", thoseundertakings in which the Company holds more than 20 per cent. of theequity are not regarded as associated undertakings.Investment incomeQuoted and unquoted equity incomeDividend income is included in revenue when the investment is quotedex-dividend.Unquoted loan stock incomeThe fixed returns on non-equity shares and debt securities arerecognised on a time apportionment basis using an effective interestrate over the life of the financial instrument. Income which is notcapable of being received within a reasonable period of time isreflected in the capital value of the investment.Bank interest incomeInterest income is recognised on an accruals basis using the rate ofinterest agreed with the bank.Floating rate note incomeFloating rate note income is recognised on an accruals basis usingthe interest rate applicable to the floating rate note at that time.Investment management fees and other expensesAll expenses have been accounted for on an accruals basis. Expensesare charged through the Revenue account except the following whichare charged through the Realised capital reserve: * 75 per cent. of management fees are allocated to the capital account to the extent that these relate to an enhancement in the value of the investments 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; and * expenses which are incidental to the purchase or disposal of an investment are charged through the Realised capital reserve.Performance incentive feeIn the event that a performance incentive fee crystallises, the feewill be allocated between Revenue and Realised capital reservesbased upon the proportion to which the calculation of the fee isattributable to revenue and capital returns.TaxationTaxation is applied on a current basis in accordance with FRS 16"Current tax". Taxation associated with capital expenses is appliedin accordance with the SORP. In accordance with FRS 19 "Deferredtax", deferred taxation is provided in full on timing differencesthat result in an obligation at the balance sheet date to pay moretax or a right to pay less tax, at a future date, at rates expectedto apply when they crystallise based on current tax rates and law.Timing differences arise from the inclusion of items of income andexpenditure in taxation computations in periods different from thosein which they are included in the financial statements. Deferred taxassets are recognised to the extent that it is regarded as morelikely than not that they will be recovered.The specific nature of taxation of venture capital trusts means thatit is unlikely that any deferred tax will arise. The Directors haveconsidered the requirements of FRS 19 and do not believe that anyprovision should be made.ReservesShare premium accountThis reserve accounts for the difference between the price paid forshares and the nominal value of the shares, less issue costs andtransfers to the Special reserve.Special reserveThe cancellation of the share premium account has created a Specialreserve that can be used to fund market purchases and subsequentcancellation of own shares, to cover gross realised losses, and forother distributable purposes.Capital redemption reserveThis reserve accounts for amounts by which the issued share capitalis diminished through the repurchase and cancellation of theCompany's own shares.Treasury shares reserveThis reserve accounts for amounts by which the distributable reservesof the Company are diminished through the repurchase of the Company'sown shares for treasury.Realised capital reserveThe following are disclosed in this reserve: * gains and losses compared to cost on the realisation of investments; * expenses, together with the related taxation effect, charged in accordance with the above policies; and * dividends paid to equity holders.Unrealised capital reserveIncreases and decreases in the valuation of investments against cost,are disclosed in this reserve.DividendsIn accordance with FRS 21 "Events after the balance sheet date",dividends declared by the Company are accounted for in the period inwhich the dividend has been paid or approved by shareholders in anAnnual General Meeting3. Losses on investments+-------------------------------------------------------------------+| | Year ended | Year ended || | 31 March | 31 March || | 2009 | 2008 ||-----------------------------------------+------------+------------|| | £'000 | £'000 ||-----------------------------------------+------------+------------|| Unrealised losses on fixed asset | | || investments held at fair value through | | || profit or loss account | (1,950) | (1,922) ||-----------------------------------------+------------+------------|| Movement in loan stock capitalised | | || accrued interest | 24 | - ||-----------------------------------------+------------+------------|| Unrealised impairments on fixed asset | | || investments held at amortised cost | (831) | (9) ||-----------------------------------------+------------+------------|| Unrealised losses on fixed asset | | || investments | (2,757) | (1,931) ||-----------------------------------------+------------+------------|| | | ||-----------------------------------------+------------+------------|| | | ||-----------------------------------------+------------+------------|| Realised (losses)/gains on investments | | || held at fair value through profit or | | || loss account | (1,137) | 628 ||-----------------------------------------+------------+------------|| Realised (losses)/gains sub total | (1,137) | 628 ||-----------------------------------------+------------+------------|| | | ||-----------------------------------------+------------+------------|| Total | (3,894) | (1,303) |+-------------------------------------------------------------------+Investments valued on amortised cost basis are unquoted loan stockinvestments.4. Investment income and deposit interest+-------------------------------------------------------------------+| | Year ended | Year ended || | 31 March | 31 March || | 2009 | 2008 ||-----------------------------------------+------------+------------|| | £'000 | £'000 ||-----------------------------------------+------------+------------|| Income recognised on investments held | | || at fair value through profit or loss | | ||-----------------------------------------+------------+------------|| UK dividend income | 20 | 18 ||-----------------------------------------+------------+------------|| Management fees received from equity | | || investments | 18 | 63 ||-----------------------------------------+------------+------------|| Floating rate note interest | - | 22 ||-----------------------------------------+------------+------------|| Bank deposit interest | 46 | 132 ||-----------------------------------------+------------+------------|| | | ||-----------------------------------------+------------+------------|| | 84 | 235 ||-----------------------------------------+------------+------------|| Income recognised on investments held | | || at amortised cost | | ||-----------------------------------------+------------+------------|| Return on loan stock investments | 730 | 941 ||-----------------------------------------+------------+------------|| | 814 | 1,176 |+-------------------------------------------------------------------+Interest income earned on impaired investments at 31 March 2009amounted to £133,000 (2008: £2,000). These investments are all heldat amortised cost.5. Recovery of Value Added TaxHMRC issued a business briefing on 24 July 2008 which permitted therecovery of historic VAT that had been charged on management fees,and which made these fees exempt from VAT with effect from 1 October2008.The Manager, Albion Ventures LLP has made a claim for the historicVAT that Albion Protected VCT PLC has paid on management fees. A sumof £320,000 has been recognised as a separate item in the IncomeStatement, allocated between revenue and capital return in the sameproportion as that which the original VAT has been charged. Anadditional tax charge of £89,000 is payable on this recovery ofhistoric VAT and this is reflected within the total tax charge shownin the Income Statement.It is possible that further amounts may be recoverable in due course;however the Directors are at this stage unable to quantify theamounts involved.6. Tax charge/(credit) on ordinary activities+----------------------------------------------------------------------+| | Year ended | Year ended || | 31 March 2009 | 31 March 2008 ||--------------------------+---------------------+---------------------|| | | | | | | || |Revenue|Capital|Total|Revenue|Capital|Total|| | £'000| £'000|£'000| £'000| £'000|£'000||--------------------------+-------+-------+-----+-------+-------+-----||UK corporation tax in | | | | | | ||respect of current year | 152| (4)| 148| 117| (21)| 96||--------------------------+-------+-------+-----+-------+-------+-----||Adjustment in respect of | | | | | | ||prior periods | (41)| -| (41)| (153)| -|(153)||--------------------------+-------+-------+-----+-------+-------+-----||Tax attributable to | | | | | | ||capital expenses | -| -| -| 103| (103)| -||--------------------------+-------+-------+-----+-------+-------+-----|| | | | | | | ||--------------------------+-------+-------+-----+-------+-------+-----||Total | 111| (4)| 107| 67| (124)| (57)|+----------------------------------------------------------------------+The UK government changed the rate of UK corporation tax from 30 percent. to 28 per cent. with effect from 1 April 2008. The tax chargefor the year shown in the Income Statement is lower than the standardrate of corporation tax in the UK of 28 per cent. (2008: 30 percent.). The differences are explained below:Factors affecting the tax charge:+-------------------------------------------------------------------+| | Year ended | Year ended || | 31 March | 31 March || | 2009 | 2008 ||-----------------------------------------+------------+------------|| | Total | Total || | £'000 | £'000 ||-----------------------------------------+------------+------------|| Loss on ordinary activities before | | || taxation | (3,293) | (831) ||-----------------------------------------+------------+------------|| | | ||-----------------------------------------+------------+------------|| Tax on profit at the standard rate | (921) | (249) ||-----------------------------------------+------------+------------|| | | ||-----------------------------------------+------------+------------|| | | ||-----------------------------------------+------------+------------|| Factors affecting the charge: | | ||-----------------------------------------+------------+------------|| Adjustment in respect of prior years | 21 | - ||-----------------------------------------+------------+------------|| Tax refund in respect of prior years | - | (13) ||-----------------------------------------+------------+------------|| Consortium relief in respect of prior | | || years | (62) | (153) ||-----------------------------------------+------------+------------|| Capital losses not subject to taxation | 1,090 | 390 ||-----------------------------------------+------------+------------|| Non-taxable income | (6) | (6) ||-----------------------------------------+------------+------------|| Marginal relief | (15) | (26) ||-----------------------------------------+------------+------------|| | 107 | (57) ||-----------------------------------------+------------+------------|| | | |+-------------------------------------------------------------------+Of the total tax charge of £107,000, a sum of £89,000 relates to thetaxation effect of the recovery of VAT as described in note 5.Notes(i) Venture Capital Trusts are not subject to corporation tax oncapital gains.(ii) Tax relief on expenses charged to capital has been determined byallocating tax relief to expenses by reference to the applicablecorporation tax rate of 28 per cent. (2008: 30 per cent.) andallocating the relief between revenue and capital in accordance withthe SORP.(iii) No deferred tax asset or liability has arisen in the year.7. Dividends+-------------------------------------------------------------------+| | Year ended | Year ended || | 31 March 2009 | 31 March 2008 ||-----------+---------------------------+---------------------------|| | | | | | | || | Revenue | Capital | Total | Revenue | Capital | Total || | £'000 | £'000 | £'000 | £'000 | £'000 | £'000 ||-----------+---------+---------+-------+---------+---------+-------|| | | | | | | ||-----------+---------+---------+-------+---------+---------+-------|| | | | | | | ||-----------+---------+---------+-------+---------+---------+-------|| First | | | | | | || dividend | | | | | | || paid on | | | | | | || 10 August | | | | | | || 2007- | | | | | | || 2.5 pence | | | | | | || per share | - | - | - | 335 | 263 | 598 ||-----------+---------+---------+-------+---------+---------+-------|| Second | | | | | | || dividend | | | | | | || paid on 4 | | | | | | || January | | | | | | || 2008 - | | | | | | || 2.5 pence | | | | | | || per share | - | - | - | 150 | 388 | 538 ||-----------+---------+---------+-------+---------+---------+-------|| First | | | | | | || dividend | | | | | | || paid on | | | | | | || 22 August | | | | | | || 2008 - | | | | | | || 2.5 pence | | | | | | || per share | 529 | - | 529 | - | - | - ||-----------+---------+---------+-------+---------+---------+-------|| Second | | | | | | || dividend | | | | | | || paid on 9 | | | | | | || January | | | | | | || 2009 - | | | | | | || 2.0 pence | | | | | | || per share | 419 | - | 419 | - | - | - ||-----------+---------+---------+-------+---------+---------+-------|| | 948 | - | 948 | 485 | 651 | 1,136 |+------------------------------
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Datum: 01.07.2009 - 12:42 Uhr
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