Kings Arms Yard VCT PLC Interim Management Statement

LEI Code 213800DK8H27QY3J5R45

 Introduction

I am pleased to present Kings Arms Yard VCT PLC (the "Company")'s interim management statement for the period from 1 January 2018 to 31 March 2018.

Performance and dividends

The Company's unaudited net asset value (NAV) as at 31 March 2018 was £67.01 million or 22.69 pence per share (excluding treasury shares), an increase of 1.09 pence per share (5.0 per cent.) since 31 December 2017.

After accounting for the dividend paid of 0.60 pence per share on 30 April 2018 to shareholders on the register on 13 April 2018, the NAV is 22.09 pence per share.

Albion VCTs Prospectus Top Up Offers 2017/18

During the period from 1 January 2018 to 31 March 2018, the Company issued new Ordinary shares under the Albion VCTs Prospectus Top Up Offers 2017/18: 

Date Number of shares issued Aggregate nominal value of shares £000 Issue price per share (including costs of issue) Net proceeds £'000
31 January 2018 5,979,493 60 21.9p 1,277

The Board announced on 5 March 2018 that the Company had reached its £8 million limit under its offer pursuant to the Prospectus dated 6 September 2017, and so was closed.

The proceeds of the Offer are being used to provide further resources to the Company at a time when a number of attractive new investment opportunities are being seen.

Share buy-backs

During the period from 1 January 2018 to 31 March 2018, there were no share buybacks undertaken by the Company.

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 existing and new portfolio companies and the continued payment of dividends to shareholders.

It is the Board's intention for such buy-backs to be at around a 5 per cent. discount to net asset value, so far as market conditions and liquidity permit.

Portfolio

The following investments have been made during the period from 1 January 2018 to 31 March 2018:

New qualifying investments £000s Activity
Koru Kids Limited 204 Online marketplace connecting parents and nannies
Total new qualifying investments 204  

 

Follow on investments into existing portfolio companies £000s Activity
Panaseer Limited 141 Provider of cyber security services
Elateral Group Limited 125 Provider of digital marketing software
Convertr Media Limited 85 Digital lead generation software
Total follow on investments 351  

 

 Top ten holdings as at 31 March 2018: 

Portfolio company Carrying value

£000s
% of net asset value Activity
Active Lives Care Limited 6,826 10.2 Owns and operates a 75 bed care home in Cumnor Hill, Oxfordshire
Ryefield Court Care Limited 5,191 7.7 Owns and operates a 60 bed care home in Hillingdon, Middlesex
Grapeshot Limited 3,956 5.9 Provider of digital marketing software
Chonais River Hydro Limited 3,377 5.0 Owns and operates a 2 MW hydro-power scheme in the Scottish Highlands
Proveca Limited 2,983 4.5 Reformulation of paediatric medicines
Elateral Group Limited 2,761 4.1 Provider of digital marketing software
Antenova Limited 2,625 3.9 Supplier of integrated antennas and RF solutions
Egress Software Technologies Limited 2,267 3.4 Encrypted email and file transfer service provider
Anthropics Technology Limited 1,775 2.6 Provider of digital picture enhancement software
The Street by Street Solar Programme Limited 1,757 2.6 Owns and operates photovoltaic systems on domestic properties in the UK

A full breakdown of the Company's portfolio can be found on the Company's webpage on the Manager's website at www.albion.capital/funds/KAY, by following the 'Portfolio of Investments' link under the 'Fund reports' section.

Material events and transactions after the period end

Portfolio

After the period end, the Company had the following material investment transactions: 

  • An investment of £189,000 in an existing portfolio company, Black Swan Data Limited, which provides data analysis that supports corporate decision making;
  • An investment of £145,000 in an existing portfolio company, Abcodia Limited, which focuses on the validation and discovery of serum biomarkers;
  • An investment of £90,000 in an existing portfolio company, InCrowd Sports Limited, which is a developer of mobile apps for professional sports clubs; and
  • As announced on 24 April 2018, contracts were exchanged for the sale of Grapeshot Limited which subsequently completed on 15 May 2018. The valuation of the holding as at 31 March 2018 includes discounts to the total estimated consideration to reflect completion and other risks.

Albion VCTs prospectus Top Up Offers

The following new Ordinary shares of nominal value 1 penny per share were allotted under the Albion VCTs prospectus Top Up Offers 2017/18 after 31 March 2018: 

Date Number of shares issued Aggregate nominal value of shares £000 Issue price per share (including costs of issue) Net proceeds £'000
5 April 2018 9,261,391 93 22.2p 2,005
11 April 2018 2,514,181 25 22.0p to 22.2p 544


There have been no further significant events or transactions that the Board is aware of which would have a material impact on the financial position of the Company between 1 April 2018 to 16 May 2018.

Further information

The Company continues to offer a dividend reinvestment scheme to existing shareholders.  Details of this Scheme can be found at www.albion.capital/funds/KAY.

Further information regarding historic and current financial performance and other useful shareholder information can be found on the Company's webpage on the Manager's website under www.albion.capital/funds/KAY.

 

 

Robin Field, Chairman

16 May 2018

 

For further information please contact:

Patrick Reeve, Albion Capital Group LLP - Tel: 020 7601 1850