Transcript 2013 - Albion Ventures

The Review
Patrick Reeve
Managing Partner
Agenda
1. Overall Themes
2. Financial Record
3. Portfolio & Balance
4. Specific Investment Themes
5. Allocation of resources for the future
Overall Themes
•
Backing change and growth where result in value
•
Achieving balance and stability in a changing world
•
Bias towards positive social outcomes
•
Tax efficiency
2. Financial Record (1)
5 year record – latest published total NAV return (assuming dividends reinvested)
Kings Arms Yard VCT
Albion Enterprise VCT
Albion Development VCT
Crown Place VCT
Albion VCT
Albion T&G VCT
FTSE All share – Sept 10 – Sept 15
0%
10%
20%
30%
40%
50%
2. Financial Record (2)
VCT Performance since Launch or Transfer of Management
Annual return (before tax
breaks and issue costs)
Kings Arms Yard VCT
2011
8.4%
Albion Venture Capital Trust
1996
6.6%
Albion Technology & General VCT*
2001
5.0%
Albion Development VCT
1999
3.9%
Albion Enterprise VCT
2008
3.2%
Crown Place VCT
2005
3.1%
Top up Offers:
2010/2011
2011/2012
2012/2013
2013/2014
*Merged into T&G (ords)
5.0%
6.0%
6.7%
7.2%
Albion Income & Growth – 2005 – (0.5%)
Albion Technology & General (Cs) – 2006 – (1.0%)
3. Portfolio Balance (1)
3. Portfolio Balance (2)
£’ million
2012
30
2014
2013
2015
20
Investments
10
0
-10
Exits
-20
-30
-40
Renewables
Healthcare (incl. Med tech)
IT/Tech
Leisure & Consumer
Other
Education
3. Portfolio Balance (3) – Specific Investment Themes
£’m
Affluent country with shrinking public resources: Elderly care
Education
25.0
27.0
Healthcare - Diagnosis to Patient Management:
35.0
IT - Strategic Security Risks:
32.0
Clean Energy Supply in a Dirty World:
54.0
173.0
Other:
Total unquoted investments:
62.0
235.0
4. Specific Investment Themes (1)
Affluent country with shrinking public resources: Elderly Care
– total cost when built £25m
Active Lives Care
Cumnor Hill, Oxford
Total cost - £9.4m
75 beds
Ryefield Court
Hillingdon, London
Total cost - £7.1m
60 beds
Shinfield Lodge
Reading
Total cost £8.5m
66 beds
4. Specific Investment Themes (2)
Affluent country with shrinking public resources: Education –
value - £27m
Radnor House School

Independent fee-paying day school in
Twickenham – started 2010

Freehold site on Thames

2nd year of GCSE results – 95% A* - C

390 pupils
Combe Bank School

Recent purchase long established feepaying school in Sevenoaks – 220 pupils

Freehold, Grade 1 Listed property by
M25, with 30 acres
4. Specific Investment Themes (3)
Healthcare: Diagnosis to Patient Management – value £35.0m
£’m
Drug Development
7.5
Cancer Diagnosis
12.5
Drug Distribution
3.0
Healthcare IT
12.0
4. Specific Investment Themes (4)
IT – Strategic Security Risks – value £32.0m
£’m
Cyber Security
8.0
Supply chain
and customer
relationships
19.0
Managing future
risk
5.0
4. Specific Investment Themes (5)
Clean Energy Supply in a Dirty World – value £54m
Hydro
3 schemes –
Snowdonia/North Central
Scotland
£20.5m
Solar
Domestic rooftop –
Cambridgeshire/ Berkshire
£17.5m
Wind
4 wind turbines in South
Wales
£10.5m
Biogas
Waste food biogas plant in
Perth, Scotland
£5.5m
5. Prospects (1)
Direction of the portfolio – Anticipated activity 2016
Investments
40
Other
30
IT
Renewables
20
Healthcare
10
0
Exits
10
20
30
Leisure & Consumer
IT
Healthcare
5. Prospects (2)
•
New VCT rules annoying rather than problematic
•
Refinement of investment scope leading to closer
monitoring portfolio levels of trading profitability
•
Plenty of scope for both profit and positive social
outcomes in a changing world
•
Plenty of exit and investment opportunities