Albion Venture Capital Trust PLC: Annual Financial Report- Correction

    Albion Venture Capital Trust PLC: Annual Financial Report- Correction  Albion Venture Capital Trust PLC  As required by the  UK Listing Authority's  Disclosure and Transparency  Rules  4.1 and  6.3,  Albion  Venture  Capital  Trust  PLC  today  makes  public  its  information relating to  the Annual  Report and Financial  Statements for  the  year ended 31 March 2014.  This announcement was  approved for release  by the Board  of Directors on  25  June 2014.  This announcement has not been audited.  You will shortly be  able to view the  Annual Report and Financial  Statements  for  the   year   to  31   March   2014   (which  have   been   audited)   at:  www.albion-ventures.co.uk by clicking on 'Our Funds' and then 'Albion  Venture  Capital Trust PLC'.The Annual Report and Financial Statements for the year to 31 March  2014 will  be available  as  a PDF  document via  a link  under  the  'Investor Centre'  in  the  'Financial Reports  and  Circulars'  section.  The  information contained  in  the Annual  Report  and Financial  Statements  will  include information  as required  by the  Disclosure and  Transparency  Rules,  including Rule 4.1.  Investment objectives and policy  The investment strategy of Albion Venture Capital Trust PLC (the "Company") is to reduce the risk  normally associated with  investments in smaller  unquoted  companies whilst maintaining an  attractive yield, through allowing  investors  the opportunity  to  participate  in  a  balanced  portfolio  of  asset-backed  businesses. The  Company's investment  portfolio will  thus be  structured  to  provide a balance between income and capital growth for the longer term.  This is achieved as follows:    *qualifying unquoted  investments  are  predominantly  in  specially-formed      companies which provide  a high  level of  asset backing  for the  capital      value of the investment;   *The Company invests alongside selected partners with proven experience  in      the sectors concerned;   *investments are normally structured as a mixture of equity and loan stock.     The loan stock  represents the  majority of  the finance  provided and  is      secured on the assets of the  portfolio company. Funds managed or  advised      by Albion Ventures LLP  typically own 50  per cent. of  the equity of  the      portfolio company;   *other than the  loan stock issued  to funds managed  or advised by  Albion      Ventures  LLP,  portfolio   companies  do  not   normally  have   external      borrowings.  The Company offers tax-paying investors  substantial tax benefits at the  time  of investment, on  payment of dividends  and on the  ultimate disposal of  the  investment.  Background to the Company  The Company is a venture capital trust  which raised a total of £39.7  million  through an issue of Ordinary shares in the spring of 1996 and through an issue of C shares  in the  following year.  The C  shares merged  with the  Ordinary  shares in 2001. The Company has raised a further £8.7 million under the Albion VCTs Top Up Offers since 2011.  On 25  September 2012,  the Company  acquired the  assets and  liabilities  of  Albion Prime VCT PLC ("Prime") in exchange for new shares in the Company ("the Merger").  On  the  same  day  Prime  was  placed  into  members'   voluntary  liquidation pursuant to a  scheme of reconstruction under  Section 110 of  the  Insolvency Act 1986.  All of  the  assets  and  liabilities  of  Prime  totalling  £14,338,000  were  transferred to  the  Company in  exchange  for  the issue  of  19,307,001  new  Ordinary shares in  the capital  of the  Company at  a deemed  issue price  of  74.2638 pence per share. Each Prime shareholder received 0.8801 shares in the Company for each  Prime share  that they  held at the  date of  the Merger  as  describe in note 10.  Financial calendar  Record date for first dividend                                    11 July 2014 Annual General Meeting                                            25 July 2014 Payment of first dividend                                         31 July 2014 Announcement of half-yearly results for the six months  ended   November 2014 30 September 2014 Payment of second dividend (subject to Board approval)        31 December 2014  Financial highlights  2.0p  Basic and diluted total return per share as at 31 March 2014 5.0p  Total tax-free dividend per  share paid during the  year ended 31  March        2014 and 2.5p first tax free dividend per share declared for the year to       31 March 2015 71.3p Net asset value per share as at 31 March 2014 6.2%  Annualised return since launch (without tax relief)  201.1p Net asset value plus dividends since launch to 31 March 2014                                      31 March 2014      31 March 2013                                (pence per share) (pence per share) Dividends paid                               5.00               5.00 Revenue return                               1.70               2.00 Capital return                               0.30                  - Effect of merger (see note 10)                  -             (0.90) Net asset value                             71.30              74.20  Total shareholder net asset value return to 31  March Ordinary shares C shares 2014 Total dividends paid during the year ended : 31 March                                                  1997            2.00        -                                         31 March 1998            5.20     2.00                                         31 March 1999           11.05     8.75                                         31 March 2000            3.00     2.70                                         31 March 2001            8.55     4.80                                         31 March 2002            7.60     7.60                                         31 March 2003            7.70     7.70                                         31 March 2004            8.20     8.20                                         31 March 2005            9.75     9.75                                         31 March 2006           11.75    11.75                                         31 March 2007           10.00    10.00                                         31 March 2008           10.00    10.00                                         31 March 2009           10.00    10.00                                         31 March 2010            5.00     5.00                                         31 March 2011            5.00     5.00                                         31 March 2012            5.00     5.00                                         31 March 2013            5.00     5.00                                         31 March 2014            5.00     5.00 Total dividends paid to 31 March 2014                          129.80   118.25 Net asset value as at 31 March 2014                             71.30    71.30 Total shareholder net asset value return to 31  March  2014                                                           201.10   189.55  The financial summary above is for  the Company, Albion Venture Capital  Trust  PLC only. Details of the financial performance of Albion Prime VCT PLC, which has  been  merged  into  the  Company,  can  be  found  at  the  end  of  this  announcement.  In addition to the dividends summarised above, the Board has declared a  first  dividend for the year ending 31 March 2015 of 2.50 pence per share to be  paid  on 31 July 2014 to shareholders on the register as at 11 July 2014.  Notes  · Dividends paid  before 5  April 1999  were paid  to qualifying  shareholders  inclusive of the associated tax credit. The dividends for the  year to 31 March 1999  were maximised in order to  take advantage of this  tax  credit.  · All dividends paid by the Company are paid free of income tax to  qualifying  shareholders. It  is  an H.M.  Revenue  & Customs  requirement  that  dividend  vouchers indicate the tax element should dividends have been subject to income tax. Investors should ignore  this figure on their  dividend voucher and  need  not disclose any income they receive from a VCT on their tax return.  · 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 found in the Investment Companies - VCTs section of the Financial Times  on  a daily basis. Investors are reminded that it is common for shares in VCTs  to  trade at a discount to their net asset value.  Chairman's statement  Introduction The results for the year to 31 March 2014 are the first to show a full  year's  combined results of Albion Venture Capital Trust PLC and Albion Prime VCT  PLC  since they merged  in September 2012.  The results  show a total  return of  2  pence per share, the same as the  previous year, and net assets of 71.3  pence  per share compared to  74.2 pence per  share at 31  March 2013, following  the  payment of total tax-free dividends of  5 pence per share. The Company  raised  approximately £1.94 million during the year under the Albion VCT Top Up Offers 2012/2013 and approximately  £1.40 million  for the  Albion VCT  Top Up  Offer  2013/2014, with a subsequent £1.90 million after the year end.  It is  disappointing that  the total  return for  the year  remains below  the  Company's target dividend of 5  pence per annum. On  the one hand, the  merger  with Albion Prime VCT PLC has created cost efficiencies, with "other expenses" (excluding the  write  off  of previously  accrued  income)  falling.  Income,  however, is also lower than we would  have hoped for. This was largely due  to  the sales of the strongly cash generative cinema portfolio at the end of  2012  and the Bear Hotel in Hungerford and Nelson House Hospital in March 2013. The total return was affected by the soft performance of our hotels and health and fitness clubs. We address this further below.  Investment performance and progress In general, we continue the task of repositioning the portfolio towards greater emphasis on the healthcare and renewable energy sectors and reduced reliance on sectors that are exposed to the consumer and business cycle. Renewable energy currently accounts for 14 per cent. of the portfolio with a target of 20 per cent., while healthcare accounts for 18 per cent. of the portfolio. Hotels, meanwhile, have declined to below 30 per cent. of the portfolio.  The hotel  sector  continued to  be  challenging, with  market  conditions  at  Stansted  Airport  proving  particularly  difficult,  leading  to  a   further  write-down in the third party valuation of our hotel there. Prospects for  the  current year, however, are more promising with signs of a revival in passenger numbers at the airport leading to  an improvement in the hotel's trading.  The  Crown Hotel in Harrogate experienced a soft year in 2013, but is expecting its current financial year to be a  record year. In addition, the Stanwell  Hotel  is now trading  profitably at an  operating level, with  a strong increase  in  revenue over previous years. In summary, we are more hopeful for this sector's current year prospects.  The health and fitness  clubs also saw an  aggregate reduction in their  third  party professional  valuations,  following previous  underperformance  at  our  Kensington and Weybridge clubs. The management team has now been changed,  and  the new team has had a considerable and positive initial impact on the  units'  performance. We would therefore  hope for a revival  of these clubs'  fortunes  over the next two  years. Our Tower Bridge  club continued to trade  strongly  and enjoyed a pleasing uplift in its third party valuation.  In the healthcare sector, Oakland Care  Centre, which operates a care home  in  Chingford, continued to perform strongly, as did the Taunton Hospital. We  are  reviewing a number of further care home opportunities and we see provision  of  quality residential care for private payers in London and the Home Counties as being an important focus for future investment activity.  Our renewable energy portfolio  continues to grow towards  a target of 20  per  cent. of  the  Company's  total  investment  portfolio.  The  income  that  it  generates is  also  growing, with  a  target of  10  per cent.  per  annum  on  investment  cost  once  all  the   individual  energy  units  are   generating  electricity. During the course of the year we invested £1.6 million in Chonais Holdings, which is constructing  a 2MW run-of-river hydro  unit in North  West  Scotland and  £387,000  in  Green Highland  Renewables  (Ledgowan),  which  is  constructing a hydro unit nearby. In general, the renewable energy units  have  been operating at or above budget, with a particularly strong performance from Dragon Hydro, which owns our first operational hydroelectricity unit, in North Wales.  Radnor House School  continues to perform  well with 350  pupils currently  in  place for September and capacity  for a further 100  pupils over the next  two  years.  Our pub  portfolio is  stable and  cash  generative, with  a small  amount  of  additional investment in Bravo Inns II to purchase and refurbish further units in the North West, taking the combined Bravo Inns and Bravo Inns II  portfolio  to 35 pubs.  Risks and uncertainties The outlook for the UK economy continues to be the key risk affecting your Company. Importantly, however, your Company remains conservatively financed with no bank borrowings. The Company's policy remains that its portfolio companies should not normally have external borrowings, and for the Company to have a first charge over portfolio companies' assets; the Board and Manager see this as an important factor in the control of investment risk. However, on an exceptional basis, certain portfolio companies may take on external borrowings, where the Board considers this will offer a significant benefit to the Company.  A detailed analysis of the other  risks and uncertainties facing the  business  is set out in the Strategic report.  Share buy-backs It remains the Board's primary objective to maintain sufficient resources for investment in existing and new portfolio 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 criterion that such purchases are in the Company's interest. The Company will limit the sum available for share buy-backs for the six month period to 30 September 2014 to £750,000. This compares to a total value bought in for the previous six months to 31 March 2014 of £487,000. Subject to the constraints referred to above and subject to first purchasing shares held by the market makers, the Board will target 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.  Results and dividends As at 31 March 2014, the net asset value was £42.66 million or 71.3 pence per share, compared to £41.68 million or 74.2 pence per share as at 31 March 2013, after the payment of total tax-free dividends of 5 pence per share. The results comprised 1.7 pence per share revenue return (2013: 2 pence per share) and a 0.3 pence per share capital return after taking into account capitalised expenses (2013: flat). The revenue return before taxation was £1,119,000 compared to £1,114,000 for the year to 31 March 2013. The Company will pay a first dividend of 2.50 pence per share on 31 July 2014 to shareholders on the register on 11 July 2014, which is in line with the Company's current objective of paying a dividend of 5 pence per share annually.  Outlook and prospects Trading at our hotels and health and fitness clubs is improving. After a challenging period for some of our more consumer oriented sectors, we are cautiously optimistic that the brighter outlook for the UK economy, combined with the more balanced nature of the current portfolio, should benefit the Company moving forward.  David Watkins Chairman 25 June 2014  Strategic report  The Directors present the Strategic report  of the Company for the year  ended  31 March 2014 which has been  prepared in accordance with the requirements  of  section 414A of the Companies Act 2006 (the "Act"). The purpose of this report is to  inform Shareholders  and provide  them with  sufficient information  to  enable them to assess the extent  to which the Directors have performed  their  duty to promote the success of the  Company in accordance with section 172  of  the Act.  Investment objective and policy The Company's investment policy is to reduce the risk normally associated with investments in smaller, unquoted companies whilst maintaining an attractive yield, through allowing investors the opportunity to participate in a balanced portfolio of asset-backed businesses. The Company's investment portfolio will thus be structured to provide a balance between income and capital growth for the longer term.  This is achieved as follows:    oqualifying unquoted investments are predominantly in specially-formed     companies which provide a high level of asset backing for the capital     value of the investment;   othe Company invests alongside selected partners with proven experience in     the sectors concerned;   oinvestments are normally structured as a mixture of equity and loan stock.     The loan stock normally represents the majority of the finance provided     and is secured on the assets of the portfolio company. Funds managed or     advised by Albion Ventures LLP typically own 50 per cent. of the equity of     the portfolio company; and   oother than the loan stock issued to funds managed or advised by Albion     Ventures LLP, portfolio companies do not normally have external     borrowings.  Current portfolio sector allocation The pie chart at the end of this announcement shows the split of the portfolio valuation by industrial or commercial sector as at 31 March 2014. Details of the principal investments made by the Company are shown in the Portfolio of investments on pages 16 and 17 of the full Annual Report and Financial Statements.  Direction of portfolio The sector analysis of the VCT's investment portfolio shows that renewable energy now accounts for 14 per cent. of the portfolio compared to 7 per cent. at the end of the previous financial year, with a view to increasing this to the Board's target exposure for the sector of 20 per cent. as new opportunities arise. Healthcare has also risen, now accounting for 18 per cent. of the portfolio compared to 12 per cent. at the end of the previous financial year.  Results and dividend policy                                                               Ordinary shares                                                                     £'000                                                                 Net revenue return for the year ended 31 March 2014                  999 Dividend of 2.50 pence per share paid on 31 July 2013              (1,469) Dividend of 2.50 pence per share paid on 31 December 2013          (1,460) Unclaimed dividends returned to the Company                          27 Transferred from other distributable reserve                       (1,903)                                                                Realised and unrealised capital gain for the year  transferred  to reserves                                                          165                                                                 Net assets as at 31 March 2014                                     42,658                                                                 Net asset value per share as at 31 March 2014                      71.30p  The Company paid dividends  totalling 5.00 pence per  share (2013: 5.00  pence  per share) during the year ended 31 March 2014. The dividend objective of  the  Board is to  provide Shareholders  with a strong,  predictable dividend  flow,  with a dividend target of 5.00 pence per share per year.  As noted in the Chairman's statement, the Board has declared a first  dividend  of 2.50  pence  per share.  This  dividendwill  be paid  on31  July  2014to  shareholders on the register as at11 July 2014.  As shown  in  the  Income  statement,  the  Company's  investment  income  has  increased to £1,718,000  (2013: £1,563,000)  and the total  revenue return  to  equity holders  also increased  to  £999,000 (2013:  £931,000), largely  as  a  result of the merger with Albion Prime VCT PLC. With a larger number of shares in issue following the merger there was a small decrease on revenue return  to  1.70 pence per share (2013: 2.00 pence per share).  The capital gain on  investments for the year  was £626,000 (2013:  £384,000),  offset by management  fees charged  to capital,  net of  the related  taxation  impact, resulting in a capital return of 0.30 pence per share (2013:nil).  The total return was 2.00 pence per share (2013: 2.00 pence per share).  The Balance sheet shows that the net  asset value has decreased over the  last  year to  71.30  pence per  share  (2013:  74.20 pence  per  share),  primarily  reflecting the payment of the 5.00  pence per share dividend during the  year,  offset by the net return for the year of 2.00 pence.  The cash flow for  the Company has  been a net outflow  of £4,391,000 for  the  year (2013: inflow £8,940,000), reflecting dividends paid, new investments  in  the year and the  buyback of shares, offset  by cash inflows from  operations,  disposal proceeds and the issue of  Ordinary shares under the Albion VCTs  Top  Up Offers.  During the year, unclaimed dividends older than twelve years of £27,000 (2013: £33,000) were returned  to the  Company in accordance  with the  terms of  the  Articles of Association.  Review of business and future changes A review of the Company's business during the year and investment performance and progress is contained in the Chairman's statement. The healthcare sector performed particularly well again this year with an increase in valuation of £649,000 (2013: £760,000). The hotel sector continued to be challenging, resulting in a devaluation of £478,000 arising from the independent third party valuations. However prospects for the current year are brighter. In addition, there were increases in valuations in the renewable energy sector and for Radnor House School. Two of the three health and fitness clubs saw reductions during the year, however after a change of manager there are signs of improved performance.  The Company  continues with  its  objective to  invest in  unquoted  companies  throughout the United Kingdom with  particular emphasis on the healthcare  and  renewable energy sectors with  a view to providing  both capital growth and  a  reliable dividend income to shareholders  over the longer term. The  Directors  do not foresee any major changes in the activity undertaken by the Company  in  the current year.  Details of  significant  events which  have  occurred  since the  end  of  the  financial year are listed in note 22. Details of transactions with the Manager are shown in note 5.  Future prospects The Company's  performance  record reflects  the  resilience of  the  strategy  outlined above and has enabled the Company to maintain a predictable stream of dividend payments to  shareholders. The  Board believes that  this model  will  continue to meet  the investment objective  and has the  potential to  deliver  attractive returns  to shareholders  in  the future.  Further details  on  the  Company's outlook and prospects can be found in the Chairman's statement.  Key performance indicators The Directors believe that the following key performance indicators, which are typical for  venture capital  trusts and  used in  its own  assessment of  the  Company, will provide shareholders with  sufficient information to assess  how  effectively the  Company  is  applying  its  investment  policy  to  meet  its  objectives. These are:  Net asset value total return relative to FTSE All Share Index total return The graph on page 4 of the full Annual Report and Financial Statements shows the Company's net asset value total return against the FTSE All-Share Index total return, in both instances with dividends reinvested. Details on the performance of the net asset value and return per share for the year are shown on page 9 of the full Annual Report and Financial Statements.  Net asset value per share and cumulative net asset value total shareholder return Net asset value decreased by 4 per cent. to 71.30 pence per share for the year ended 31 March 2014. Cumulative NAV total shareholder return increased by 1.1 per cent. to 201.10 pence per share for the year ended 31 March 2014.  Dividend distributions Dividends paid in respect of the year ended 31 March 2014 were 5.00 pence per share (2013: 5.00 pence per share), in line with the Board's dividend objective. Cumulative dividends paid since inception amount to 129.80 pence per Ordinary share and 118.25 pence per C share.  Ongoing charges The ongoing charges ratio for the year to 31 March 2014 was 2.5 per cent. (2013: 2.5 per cent.). The ongoing charges ratio has been calculated using the Association of Investment Companies' (AIC) recommended methodology. This figure shows shareholders the total recurring annual running expenses (including investment management fees charged to capital reserve) as a percentage of the average net assets attributable to shareholders. The Directors expect the ongoing charges ratio for the year ahead to be approximately 2.5 per cent.  Maintenance of VCT qualifying status The Company continues to comply with H.M. Revenue & Customs ("HMRC") rules in order to maintain its status under Venture Capital Trust legislation as highlighted below.  VCT Regulation  The investment policy  is designed  to ensure  that the  Company continues  to  qualify and is  approved as a  VCT by HMRC.  In order to  maintain its  status  under Venture Capital  Trust legislation, a  VCT must comply  on a  continuing  basis with  the provisions  of  Section 274  of the  Income  Tax Act  2007  as  follows:  1.The Company's income must be derived wholly or mainly from shares and     securities;      2.At least 70 per cent. of the HMRC value of its investments must have been     represented throughout the year by shares or securities that are     classified as 'qualifying holdings';      3.At least 30 per cent. by HMRC value of its total qualifying holdings must     have been represented throughout the year by holdings of 'eligible     shares'. For funds raised after 5 April 2011 the figure is 70 per cent.;      4.At no time in the year must the Company's holdings in any one company     (other than another VCT) have exceeded 15 per cent. by HMRC value of its     investments;      5.The Company must not have retained greater than 15 per cent. of its income     earned in the year from shares and securities;      6.Eligible shares must comprise at least 10 per cent. by HMRC value of the     total of the shares and securities that the Company holds in any one     portfolio company; and      7.The Company's shares, throughout the year, must have been listed in the     Official List of the Stock Exchange.  These tests drive a spread of investment risk through disallowing holdings  of  more than 15 per cent. in any  portfolio company. The tests have been  carried  out and independently reviewed for the  year ended 31 March 2014. The  Company  has complied with all tests and continues to do so.  'Qualifying holdings' include  shares or  securities (including  loans with  a  five year or greater maturity period) in companies which operate a 'qualifying trade' wholly or mainly  in the United  Kingdom. 'Qualifying trade'  excludes,  amongst  other  sectors,  dealing  in  property  or  shares  and   securities,  insurance, banking  and agriculture.  Details  of the  sectors in  which  the  Company is  invested  can be  found  in  the pie  chart  at the  end  of  this  announcement.  Portfolio company gross assets must  not exceed £15 million immediately  prior  to the investment and £16 million  immediately thereafter. With effect from  6  April 2012, the legislation has been amended so as to prevent any company from receiving more than £5 million in aggregate from all state-aided providers  of  risk capital, including VCTs, in the 12  month period up to and including  the  most recent such investment.  Gearing As defined by the Articles of  Association, the Company's maximum exposure  in  relation to  gearing is  restricted to  10  per cent.  of the  adjusted  share  capital and reserves.  As at 31  March 2014, the  Company's maximum  permitted  exposure was £4,110,000 (2013: £4,168,000) and its actual short term and  long  term gearing  at  this  date was  £nil  (2013:  £nil). The  Directors  do  not  currently have any intention to utilise long term gearing for the Company.  On an  exceptional basis,  certain portfolio  companies may  take on  external  borrowings, where the Board considers this will offer a significant benefit to the Company.  Operational arrangements The Company has delegated the investment management of the portfolio to Albion Ventures LLP,  which is  authorised  and regulated  by the  Financial  Conduct  Authority. Albion Ventures  LLP also  provides company  secretarial and  other  accounting and administrative support to the Company.  Management agreement Under the Management agreement, the Manager provides investment management, secretarial and administrative services to the Company. The Management agreement can be terminated by either party on 12 months' notice. The Management agreement is subject to earlier termination in the event of certain breaches or on the insolvency of either party. The Manager is paid an annual fee equal to 1.9 per cent. of the net asset value of the Company, and an annual secretarial and administrative fee of £46,539 (2013: £44,883) increased annually by RPI. These fees are payable quarterly in arrears. Total annual normal expenses, including the management fee, are limited to 3.5 per cent. of the net asset value.  In line with common practice, the  Manager is also entitled to an  arrangement  fee, payable by each portfolio company,  of approximately 2 per cent. on  each  investment made and any applicable monitoring fees.  Management performance incentive In order to provide the Manager with an incentive to maximise the return to investors, the Company has entered into a management performance incentive arrangement with the Manager. Under the incentive arrangement, the Company will pay an incentive fee to the Manager of an amount equal to 8 per cent. of the excess total return above 5 per cent. per annum, paid out annually in cash as an addition to the management fee. Any shortfall of the target return will be carried forward into subsequent periods and the incentive fee will only be paid once all previous and current target returns have been met. For the year to 31 March 2014, no incentive fee became due to the Manager (2013: £nil).  No further performance fee  will become due until  the hurdle rate  comprising  net asset value, plus dividends from 31 March 2004, has been reached. As of 31 March 2014 the total  return from 31  March 2004 amounted  to 147.8 pence  per  share which compared to the hurdle of 184.2 pence per share at that date.  Evaluation of the Manager The Board has evaluated the performance of the Manager based on the returns generated by the Company, the continuing achievement of the 70 per cent. investment requirement for Venture Capital Trust status, the long term prospects of current investments, a review of the Management agreement and the services provided therein, and benchmarking the performance of the Manager to other service providers. The Board believes that it is in the interests of shareholders as a whole, and of the Company, to continue the appointment of the Manager for the forthcoming year.  Alternative Investment Fund Managers Directive ("AIFMD") The Board has considered the impact on your Company of the AIFMD, an EU Directive that came into force in July 2013 to regulate the Managers of Alternative Investment Funds. The Board has agreed to appoint Albion Ventures LLP as the Company's AIFM as required by the AIFMD. This will not impact on the day-to-day investment activities.  Social and community issues, employees and human rights The Board recognises the requirement under  section 414C of the Act to  detail  information about social  and community  issues, employees  and human  rights;  including any policies it has in  relation to these matters and  effectiveness  of these  policies.  As  an  externally managed  investment  company  with  no  employees, the Company  has no  policies in these  matters and  as such  these  requirements do not apply.  Further policies The Company has adopted a number of further policies relating to:    oEnvironment   oGlobal greenhouse gas emissions   oAnti-bribery   oDiversity  and these are set out in the Directors'  report on page 21 of the full  Annual  Report and Financial Statements.  Risk management The Board carries out a regular review of the risk environment in which the Company operates. The principal risks and uncertainties of the Company as identified by the Board and how they are managed are as follows:  Risk            Possible consequence            Risk management Economic risk   Changes in economic  conditions, To  reduce   this  risk,   in                  including, for example, interest addition to investing  equity                  rates,   rates   of   inflation, in portfolio  companies,  the                  industry             conditions, Company  often   invests   in                  competition,    political    and secured loan stock and has  a                  diplomatic  events   and   other policy   of   not    normally                  factors could substantially  and permitting any external  bank                  adversely affect  the  Company's borrowings  within  portfolio                  prospects in a number of ways.   companies. Additionally,  the                                                   Manager has been  rebalancing                                                   the sector  exposure  of  the                                                   portfolio  with  a  view   to                                                   reducing reliance on consumer                                                  led sectors. Investment risk This is the  risk of  investment To  reduce  this  risk,   the                  in  poor  quality  assets  which Board  places  reliance  upon                  reduces the  capital and  income the skills  and expertise  of                  returns  to  shareholders,   and the Manager  and  its  strong                  negatively   impacts   on    the track record for investing in                 Company's reputation. By nature, this segment  of the  market.                  smaller   unquoted   businesses, In  addition,   the   Manager                  such as those  that qualify  for operates   a    formal    and                  venture capital trust  purposes, structured         investment                  are more  fragile  than  larger, process,  which  includes  an                  long established businesses.     Investment         Committee,                                                   comprising         investment                                                   professionals    from     the                                                   Manager  and  at  least   one                                                   external           investment                                                   professional.   The   Manager                                                   also   invites   and    takes                                                   account  of   comments   from                                                   non-executive  Directors   of                                                   the  Company  on  investments                                                   discussed at  the  Investment                                                   Committee           meetings.                                                   Investments are actively  and                                                   regularly  monitored  by  the                                                   Manager (investment  managers                                                   normally  sit  on   portfolio                                                   company boards) and the Board                                                  receives detailed reports  on                                                   each investment  as  part  of                                                   the   Manager's   report   at                                                   quarterly board meetings. Valuation risk  The          Company's As described in note 2 of the Financial                 investment   valuation Statements,   the    unquoted    equity                  methodology is reliant investments, convertible loan stock and                 on  the  accuracy  and debt issued at a  discount held by  the                  completeness        of Company are  designated at  fair  value                  information  that   is through profit  or loss  and valued  in                  issued  by   portfolio accordance   with   the   International                  companies.          In Private  Equity  and  Venture   Capital                  particular,        the Valuation Guidelines. These  guidelines                  Directors may  not  be set out  recommendations,  intended  to                  aware of or take  into represent current best practice on  the                  account certain events valuation    of     venture     capital                  or circumstances which investments.  These   investments   are                  occur    after     the valued on the basis of forward  looking                  information issued  by estimates  and   judgments  about   the                  such   companies    is business itself,  its  market  and  the                  reported.              environment  in   which  it   operates,                                         together with the state of the  mergers                                         and acquisitions  market, stock  market                                         conditions and other factors. In making                                        these  judgments  the  valuation  takes                                         into account all  known material  facts                                         up to  the  date  of  approval  of  the                                         Financial Statements by the Board.  All                                         other unquoted loan  stock is  measured                                         at amortised cost. The values of all of                                        the investments are  at cost  (reviewed                                         for  impairment)   or  underpinned   by                                         independent  third  party  professional                                         valuations. VCT    approval The Company's  current To reduce  this  risk,  the  Board  has  risk            approval as a  venture appointed the Manager, which has a team                 capital  trust  allows with significant experience in  venture                  investors   to    take capital  trust   management,  used   to                  advantage    of    tax operating within  the  requirements  of                  reliefs   on   initial the venture capital trust  legislation.                  investment and ongoing In addition, to provide further  formal                  tax free capital gains reassurance, the  Board  has  appointed                  and  dividend  income. PricewaterhouseCoopers   LLP   as   its                  Failure  to  meet  the taxation                       adviser.                  qualifying             PricewaterhouseCoopers   LLP    reports                  requirements     could quarterly to the Board to independently                 result  in   investors confirm  compliance  with  the  venture                  losing the tax  relief capital trust legislation, to highlight                 on initial  investment areas of risk and to inform on  changes                  and loss of tax relief in legislation.  Each investment  in  a                  on any tax-free income new   portfolio    company   is    also                  or    capital    gains pre-cleared   with   H.M.   Revenue   &                  received. In addition, Customs.                 failure  to  meet  the                  qualifying                 requirements     could                  result in  a  loss  of                  listing of the shares. Compliance risk The Company is  listed Board  members  and  the  Manager  have                  on  The  London  Stock experience  of   operating  at   senior                  Exchange    and     is levels  within   or   advising   quoted                  required   to   comply businesses. In addition, the Board  and                  with the rules of  the the Manager receive regular updates  on                  UK Listing  Authority, new  regulation   from   its   auditor,                  as well  as  with  the lawyers and other professional bodies.                 Companies         Act,                  Accounting   Standards                  and other legislation.                 Failure to comply with                 these      regulations                  could  result   in   a                  delisting    of    the                  Company's  shares,  or                  other penalties  under                  the Companies  Act  or                  from         financial                  reporting    oversight                  bodies. Internal        Failures    in     key The  Audit  Committee  meets  with  the  control risk    controls,  within  the Manager's   Internal    Auditor,    PKF                  Board  or  within  the Littlejohn    LLP,    when    required,                  Manager's    business, receiving a report  regarding the  last                  could  put  assets  of formal internal audit performed on  the                  the Company at risk or Manager, and providing the  opportunity                  result in  reduced  or for the Audit Committee to ask specific                 inaccurate information and detailed questions.  John Kerr,  as                  being  passed  to  the Chairman of  the Audit  Committee,  met                  Board      or       to with the internal audit Partner of  PKF                  shareholders.          Littlejohn  LLP  in  January  2014   to                                         discuss the most recent Internal  Audit                                         Report on the Manager. The Manager  has                                         a  comprehensive  business   continuity                                         plan  in  place   in  the  event   that                                         operational continuity  is  threatened.                                         Further details  regarding the  Board's                                         management and review of the  Company's                                         internal    controls    through     the                                         implementation of the Turnbull guidance                                        are detailed  on page  27 of  the  full                                         Annual Report and Financial Statements.                                         Measures  are  in  place  to   mitigate                                         information risk in order to ensure the                                        integrity,       availability       and                                         confidentiality  of  information   used                                         within the business. Reliance   upon The Company is reliant There   are   provisions   within   the  third   parties upon the  services  of management agreement for the change  of  risk            Albion  Ventures   LLP Manager  under  certain   circumstances                  for the  provision  of (for further detail, see the management                 investment  management agreement paragraph on  page 11 of  the                  and     administrative full  Annual   Report   and   Financial                  functions.             Statements). In  addition, the  Manager                                         has  demonstrated  to  the  Board  that                                         there is no undue reliance placed  upon                                         any  one   individual   within   Albion                                         Ventures LLP. Financial risk  By its  nature,  as  a The  Company's  policies  for  managing                  venture capital trust, these   risks    and   its    financial                  the Company is exposed instruments are  outlined  in  full  in                  to   investment   risk note 20 to the Financial Statements.                 (which       comprises                  investment price  risk All  of   the  Company's   income   and                  and cash flow interest expenditure is denominated in  sterling                  rate   risk),   credit and hence  the Company  has no  foreign                  risk   and   liquidity currency risk. The Company is  financed                  risk.                  through equity  and does  not have  any                                         borrowings. The  Company does  not  use                                         derivative  financial  instruments  for                                         speculative purposes.  On behalf of the Board,  David Watkins Chairman 25 June 2014  Responsibility Statement In preparing the financial statements for the year to 31 March 2014, the Directors of the Company, being David Watkins, John Kerr, Jeff Warren and Ebbe Dinesen, 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 2014  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 2014 as required by DTR 4.1.12.R;  - the Chairman's statement and Strategic report includes a fair review of the information required by DTR 4.2.7R (indication of important events during  the  year ended 31 March 2014 and description of principal risks and  uncertainties  that the Company faces); and  - the Chairman's statement  and Strategic Report includes  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  David Watkins Chairman 25 June 2014  Income statement                               Year ended 31 March 2014 Year ended 31 March 2013                               Revenue  Capital  Total  Revenue  Capital  Total                         Note    £'000    £'000  £'000    £'000    £'000  £'000 Gains on investments    3           -      626    626        -      384    384 Investment income       4       1,718        -  1,718    1,563        -  1,563 Investment   management  fees                    5       (201)    (601)  (802)    (171)    (514)  (685) Other expenses          6       (398)        -  (398)    (278)        -  (278) Return/(loss)        on  ordinary     activities  before tax                      1,119       25  1,144    1,114    (130)    984 Tax (charge)/credit  on  ordinary activities     8       (120)      140     20    (183)      129   (54) Return/(loss) attributable         to  shareholders                      999      165  1,164      931      (1)    930 Basic    and    diluted  return    per     share  (pence)*                11       1.70     0.30   2.00     2.00        -   2.00  * excluding treasury shares  The accompanying notes form an integral part of these Financial Statements.  The total  column of  this 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.  All revenue  and  capital  items  in  the  above  statement  derive  from  the  continuing operations.  There are no recognised gains  or losses other than  the results for the  year  disclosed above. Accordingly a statement of total recognised gains and  losses  is not required.  The difference  between  the  reported return/(loss)  on  ordinary  activities  before tax and the historical profit/(loss) is due to the fair value movements on investments. As a result  a note on historical  cost profit and losses  has  not been prepared.  Balance sheet                                                     31 March 2014 31 March 2013                                               Note         £'000         £'000 Fixed asset investments                         12        35,580        30,198 Current assets Trade and other debtors                         14            48            24 Current asset investments                       14             -            50 Cash at bank and in hand                        18         7,505        11,896                                                            7,553        11,970 Creditors: amounts  falling  due  within  one  year                                            15         (475)         (487) Net current assets                                         7,078        11,483 Net assets                                                42,658        41,681 Capital and reserves Called up share capital                         16           645           603 Share premium                                              3,525             8 Capital redemption reserve                                     7             - Unrealised capital reserve                               (3,343)       (4,890) Realised capital reserve                                  10,527        11,909 Other distributable reserve                               31,297        34,051 Total equity shareholders' funds                          42,658        41,681 Basic and diluted net  asset value per  share  (pence)*                                        17         71.30         74.20  * excluding treasury shares  The accompanying notes form an integral part of these Financial Statements.  These Financial  Statements  were  approved  by the  Board  of  Directors  and  authorised for issue on 25 June 2014, and were signed on its behalf by  David Watkins Chairman Company number: 03142609  Reconciliation of movements in shareholders' funds                Called-up            Capital Unrealised Realised         Other                   share   Share redemption    capital  capital distributable                 capital premium    reserve   reserve* reserve*      reserve*   Total                   £'000   £'000      £'000      £'000    £'000         £'000   £'000 As at 1 April 2013                603       8          -    (4,890)   11,909        34,051  41,681 Return/(loss) for the year          -       -          -        576    (411)           999   1,164 Transfer   of  previously unrealised gains      on  realisations of investments           -       -          -        971    (971)             -       - Purchase   of  treasury shares                -       -          -          -        -         (364)   (364) Issue      of  equity   (net  of costs)            49   3,517          -          -        -             -   3,566 Purchase   of  shares    for  cancellation        (7)       -          7          -        -         (487)   (487) Net dividends paid (note 9)         -       -          -          -        -       (2,902) (2,902) As   at    31  March 2014          645   3,525          7    (3,343)   10,527        31,297  42,658                Called-up            Capital Unrealised Realised         Other                   share   Share redemption    capital  capital distributable                 capital premium    reserve   reserve* reserve*      reserve*   Total                   £'000   £'000      £'000      £'000    £'000         £'000   £'000 As at 1 April 2012             19,733   1,005      1,914    (3,067)   10,087       (1,286)  28,386 (Loss)/return for the year          -       -          -      (694)      693           931     930 Transfer   of  previously unrealised gains      on  disposal   of  investments           -       -          -    (1,129)    1,129             -       - Purchase   of  treasury shares                -       -          -          -        -         (720)   (720) Issue      of  equity   (net  of costs)           772     383          -          -        -             -   1,155 Reduction  in  share capital and cancellation of    capital  redemption and     share  premium reserves**     (29,556) (5,955)    (1,914)          -        -        37,425       - Shares issued to    acquire  net assets of Albion  Prime  VCT PLC  (net  of     merger  costs) ***        9,654   4,575          -          -        -             -  14,229 Net dividends paid (note 9)         -       -          -          -        -       (2,299) (2,299) As   at    31  March 2013          603       8          -    (4,890)   11,909        34,051  41,681  * Included within the aggregate of these reserves is an amount of £38,481,000 (2012: £41,070,000) which is considered distributable. ** The reduction in the nominal value of shares from 50 pence to 1 penny, the cancellation of capital redemption and share premium reserves (as approved by shareholders at the General Meeting held on 17 September 2012 and by order of the Court dated 30 January 2013) has increased the value of the other distributable reserve. ***The assets and liabilities transferred through the acquisition of Albion Prime VCT PLC are shown in note 10. In addition, £109,000 of the merger costs attributable to Albion Venture Capital Trust PLC has been deducted from the share premium account in so far as they relate to the issue of new shares.  Cash flow statement                                                        Year ended    Year ended                                                    31 March 2014 31 March 2013                                               Note         £'000         £'000 Operating activities Loan stock income received                                 1,534         1,416 Deposit interest received                                    131            66 Dividend income received                                      22             - Investment management fees paid                            (817)         (629) Other cash payments                                        (289)         (281) Net cash flow from operating activities         19           581           572 Taxation UK corporation tax (paid)/received                          (99)         (161) Capital expenditure and financial investments Purchase of fixed asset investments                      (5,182)         (420) Disposal of fixed asset investments                          550         9,624 Net cash flow from investing activities                  (4,632)         9,204 Equity  dividends  paid  (net  of  costs   of  issuing    shares    under    the    Dividend  Reinvestment Scheme and unclaimed dividends)             (2,719)       (2,210) Net cash flow before financing                           (6,869)         7,405 Financing Issue of share capital (net of costs)                      3,359         1,033 Purchase of own shares (including costs)                   (876)         (695) Cash acquired from Albion Prime VCT PLC         10             -         1,450 Cost of Merger (paid on behalf of the Company and Albion Prime VCT PLC)                                    (5)         (253) Net cash flow from financing                               2,478         1,535 Cash flow in the year                           18       (4,391)         8,940  Notes to the Financial Statements  1. Accounting convention The 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 and with the Statement of Recommended Practice "Financial Statements of Investment Trust Companies and Venture Capital Trusts" ("SORP") issued by The Association of Investment Companies ("AIC") in January 2009. Accounting policies have been applied consistently in current and prior periods.  2. Accounting policies Investments Unquoted equity investments, debt issued at a discount and convertible bonds In accordance with FRS 26 "Financial Instruments Recognition and Measurement", unquoted equity, debt issued at a discount and convertible bonds are designated as fair value through profit or loss ("FVTPL"). Fair value is determined by the Directors in accordance with the International Private Equity and Venture Capital Valuation Guidelines (IPEVCV guidelines).  Fair value  movements  and  gains  and  losses  arising  on  the  disposal  of  investments are reflected  in the capital  column of the  Income statement  in  accordance with  the  AIC  SORP. Realised  gains  or  losses on  the  sale  of  investments will be reflected in the realised capital reserve, and  unrealised  gains or losses arising from the revaluation of investments will be  reflected  in the unrealised capital reserve.  Unquoted equity derived instruments Unquoted equity derived instruments are only valued if there is additional value to the Company in exercising or converting as at the balance sheet date. Otherwise these instruments are held at nil value. The valuation techniques used are those used for the underlying equity investment.  Unquoted loan stock Unquoted loan stock (excluding convertible bonds and debt issued at a discount) are classified as loans and receivables as permitted by FRS 26 and measured at amortised cost using the Effective Interest Rate method ("EIR") less impairment. Movements in the amortised cost relating to interest income are reflected in the revenue column of the Income statement, and hence are reflected in the other distributable reserve, and movements in respect of capital provisions are reflected in the capital column of the Income statement and are reflected in the realised capital reserve following sale, or in the unrealised capital reserve on movements arising from revaluations of the fair value of the security.  For all unquoted loan stock, whether  fully performing, past due or  impaired,  the Board  considers that  the fair  value is  equal to  or greater  than  the  security value of  these assets. For  unquoted loan stock,  the amount of  the  impairment is the difference between the asset's cost and the present value of estimated future cash  flows, discounted  at the  original effective  interest  rate. The future  cash flows  are estimated  based on  the fair  value of  the  security held less estimated selling costs.  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  revenue reserve when a share becomes ex-dividend.  Loan stock accrued interest is recognised in the Balance sheet as part of  the  carrying value  of the  loans and  receivables at  the end  of each  reporting  period.  In accordance with the exemptions under FRS 9 "Associates and joint ventures", 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  accounted  for  according to FRS 26 "  Financial instruments Recognition and Measurement"  and  measured at fair value through profit and loss  Current asset investments Contractual future contingent receipts on the disposal of fixed asset investments are designated at fair value through profit or loss and are subsequently measured at fair value.  Investment income Unquoted 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 on a time apportionment basis using the effective interest rate over the life of the financial instrument. Income which is not capable of being received within a reasonable period of time is reflected in the capital value of the investment.  Bank interest income Interest income is recognised on an accrual 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 revenue account except the following which are charged through the realised capital reserve:    o75 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   oexpenses which are incidental to the purchase or disposal of an     investment.  Performance incentive fee In the event that a performance incentive fee crystallises, the fee will be allocated between revenue 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 16  "Current  tax". Taxation associated with capital expenses is applied in accordance  with  the SORP.  In accordance  with FRS  19 "Deferred  tax", deferred  taxation  is  provided in full  on timing differences  that result in  an obligation at  the  balance sheet date to  pay more tax or  a right to pay  less tax, at a  future  date, at rates expected  to apply when they  crystallise based on current  tax  rates and law. Timing differences arise from the inclusion of items of  income  and expenditure in taxation  computations in periods  different from those  in  which they are included in the  Financial Statements. Deferred tax assets  are  recognised to the extent that it is regarded as more likely than not that they will be recovered.  The Directors have considered  the requirements of FRS  19 and do not  believe  that any provision for deferred tax should be made.  Reserves  Share premium account This reserve accounts for the difference between the price paid for shares and the nominal value of the shares, less issue costs and transfers to the other distributable reserve.  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:    ogains and losses compared to cost on the realisation of investments, or     permanent diminutions in value;   oexpenses, together with the related taxation effect, charged in accordance     with the above policies; and   odividends paid to equity holders.  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 In accordance with FRS 21 "Events after the balance sheet date", dividends  by  the Company are accounted for in the period in which the dividend is declared.  3. Gains on investments                                                        Year ended    Year ended                                                    31 March 2014 31 March 2013                                                            £'000         £'000 Unrealised gains on  fixed asset investments  held  at fair value through profit or loss                       1,113           293 Impairments on  fixed  asset investments  held  at  amortised cost                                             (537)         (987) Unrealised gains/(losses) sub-total                          576         (694) Realised gains on fixed asset investments held  at  fair value through profit or loss                             40         1,133 Realised gains/(losses) on fixed asset investments held at amortised cost                                        10         (105) Realised  gains   on   fixed   asset   investments  sub-total                                                     50         1,028 Realised gains on  current asset investments  held  at fair value through profit or loss                           -            50 Realised gains sub-total                                      50         1,078                                                              626           384  Investments measured at amortised cost are unquoted loan stock investments  as  described in note 2.  4. Investment income                                                        Year ended    Year ended                                                    31 March 2014 31 March 2013                                                            £'000         £'000 Income recognised  on  investments  held  at  fair  value through profit or loss Dividend income                                               27             - Income from convertible bonds and discounted debt            203           112                                                              230           112 Income recognised on investments held at amortised cost Return on loan stock investments                           1,369         1,379 Bank deposit interest                                        119            72                                                            1,488         1,451                                                            1,718         1,563  Interest income earned on  impaired investments at 31  March 2014 amounted  to  £294,000 (2013: £311,000). These investments are all held at amortised cost.  5. Investment management fees                                                  Year ended    Year ended                                              31 March 2014 31 March 2013                                                      £'000         £'000 Investment management fee charged to revenue           201           171 Investment management fee charged to capital           601           514                                                        802           685  Further details  of  the  Management  agreement  under  which  the  investment  management fee is paid are given in the Strategic report  During the year, services of a total value of £849,000 (2013: £730,000),  were  purchased by  the Company  from Albion  Ventures LLP;  this includes  £802,000  (2013: £685,000)  of investment  management fee  and £47,000  (2013:  £45,000)  administration fee.  At the  financial  year end,  the  amount due  to  Albion  Ventures LLP  in  respect of  these  services disclosed  within  accruals  and  deferred income was £214,000 (2013: £201,000).  Albion Ventures LLP  is, from time  to time, eligible  to receive  transaction  fees and Directors' fees from portfolio  companies. During the year ended  31  March 2014, fees of  £167,000 attributable to the  investments of the  Company  were received pursuant to these arrangements (2013: £87,000).  Albion Ventures LLP, the Manager, holds  2,534 Ordinary shares as a result  of  fractional entitlements arising from the merger  of Albion Prime VCT PLC  into  Albion Venture Capital Trust  PLC on 25 September  2012. These shares will  be  sold and the proceeds retained for the benefit of the Company.  During the year the Company  raised new funds through  the Albion VCTs Top  Up  Offers 2012/2013 and Albion VCTs Top  Up Offers 2013/2014 as detailed in  note  16. The total cost of the issue of these shares was 3.0 per cent. of the  sums  subscribed. Of these costs, an amount of £5,450 (2013: £3,854) was paid to the Manager, Albion Ventures  LLP in  respect of receiving  agent services.  There  were no sums outstanding  in respect of receiving  agent services at the  year  end.  6. Other expenses                                                        Year ended    Year ended                                                    31 March 2014 31 March 2013                                                            £'000         £'000 Directors' fees (including NIC)                               87            87 Secretarial and administration fee                            47            45 Other administrative expenses                                 88           105 Impairment of accrued interest                               139             - Tax services                                                  12            15 Auditor's   remuneration   for   statutory   audit  services (exc. VAT)                                           25            26                                                              398           278  7. Directors' fees The amounts paid to and on behalf of Directors during the year are as follows:                        Year ended    Year ended                    31 March 2014 31 March 2013                            £'000         £'000 Directors' fees               80            80 National insurance             7             7                               87            87  Further information  regarding Directors'  remuneration can  be found  in  the  Directors' remuneration  report on  page  29 of  the  full Annual  Report  and  Financial Statements.  8. Tax (charge)/credit on ordinary activities                               Year ended 31 March 2014 Year ended 31 March 2013                               Revenue  Capital  Total  Revenue  Capital  Total                                 £'000    £'000  £'000    £'000    £'000  £'000 UK   corporation   tax    in  respect of current year         (246)      140  (106)    (264)      129  (135) UK   corporation   tax    in  respect of prior year             126        -    126       81        -     81 Total                           (120)      140     20    (183)      129   (54)  Factors affecting the tax charge:                                                        Year ended    Year ended                                                    31 March 2014 31 March 2013                                                            £'000         £'000 Return on ordinary activities before taxation              1,144           984 Tax on profit at the  standard rate of 23%  (2013:  24%)                                                       (263)         (236) Factors affecting the charge: Non-taxable gains                                            144            92 Income not taxable                                             6             - Consortium relief in respect of prior years                  126            81 Marginal relief                                                7             9                                                               20          (54)  The tax charge for the  year shown in the Income  statement is lower than  the  standard rate of  corporation tax  in the  UK of 23  per cent.  (2013: 24  per  cent.). The differences are explained above.  Consortium relief is  recognised in the  accounts in the  period in which  the  claim is submitted to HMRC and is shown as tax in respect of prior year.  Notes  (i)   Venture Capital  Trusts are  not subject  to corporation  tax  on  capital gains.  (ii)  Tax relief on expenses charged to capital has been determined  by  allocating tax relief to expenses  by reference to the applicable  corporation  tax rate and allocating the relief  between revenue and capital in  accordance  with the SORP.  (iii)  No deferred tax asset or liability has arisen in the year.  9. Dividends                                                        Year ended    Year ended                                                    31 March 2014 31 March 2013                                                            £'000         £'000 First dividend paid  31 July 2012  - 2.50  pence  per share                                                      -           928 Second dividend  paid 31  December 2012  -  2.50  pence per share                                                -         1,404 First dividend paid on 31 July 2013 - 2.50 pence per share                                                  1,469             - Second dividend paid on 31 December 2013 -  2.50  pence per share                                            1,460             - Unclaimed dividends                                         (27)          (33)                                                            2,902         2,299  In addition to the dividends summarised above, the Board has declared a  first  dividend for the  year ending  31 March  2015 of  2.50 pence  per share.  This  dividend will be paid on 31 July 2014 to shareholders on the register as at 11 July 2014. The total dividend will be approximately £1,562,000.  During the year, unclaimed dividends older than twelve years of £27,000 (2013: £33,000) were returned  to the  Company in accordance  with the  terms of  the  Articles of Association.  10. Acquisition of the assets and liabilities of Albion Prime VCT PLC  On 25 September 2012, the following assets and liabilities of Albion Prime VCT PLC ("Prime") were  transferred to the  Company in exchange  for the issue  to  Prime shareholders of 19,307,001 shares in  the Company, at an issue price  of  74.2638 pence per share:                             £'000 Fixed asset investments   13,123 Debtors                       16 Cash at bank and in hand   1,450 Creditors                  (162) Merger costs                (89)                           14,338  Shareholders should note that under  accounting standards, the calculation  of  the net asset value per  share uses the total  shares in issue (less  treasury  shares), whereas the calculation of the total return uses the weighted average shares in issue during  the period. Due  to the amount  of shares issued  last  year as a  result of  the merger  with Albion  Prime VCT  PLC, the  difference  between the total  shares in  issue (less  treasury shares)  and the  weighted  average share in  issue during that  period resulted in  the total return  per  share being higher than if the shares in issue (less treasury shares) had been applied to the movement in the Balance sheet since merger.  On 25 September  2012, Prime  was placed into  members' voluntary  liquidation  pursuant to a scheme of reconstruction under section 110 of the Insolvency Act 1986.  The net asset values ("NAVs") per share of each fund used for the purposes  of  conversion at the calculation date of 24 September 2012 were 74.2638 pence per share and 65.3663 pence per share for the Company and Prime respectively. The conversion ratio for each Prime share was 0.8801 Albion Venture Capital  Trust  PLC share for each Prime share.  11. Basic and diluted return per share                               Year ended 31 March 2014 Year ended 31 March 2013                              Revenue    Capital Total Revenue    Capital Total The  return  per  share  has  been based on the  following  figures: Return/(loss)   attributable  to equity shares (£'000)         999        165 1,164     931        (1)   930 Weighted average  shares  in  issue  (excluding   treasury  shares)                              58,689,669               46,973,203 Return   attributable    per  equity share (pence)            1.70       0.30  2.00    2.00          -  2.00  The weighted average number of shares is calculated excluding treasury  shares  of 4,695,440 (2013: 4,152,440).  There  are  no  convertible  instruments,  derivatives  or  contingent   share  agreements in issue, and therefore no dilution affecting the return per share. The basic return per  share is therefore  the same as  the diluted return  per  share.  12. Fixed asset investments                                                31 March 2014 31 March 2013                                                             £'000         £'000 Investments held at fair  value through profit  or  loss  Unquoted equity                                           11,093         8,489 Unquoted debt issued at a discount and convertible bonds                                                      5,790         2,231                                                           16,883        10,720 Investments held at amortised cost Unquoted loan stock                                       18,697        19,478                                                           35,580        30,198                                                                           £'000 Opening valuation                                                       30,198 Purchases at cost                                                        5,218 Disposal proceeds                                                        (359) Realised gains                                                              50 Movement in loan stock accrued income                                    (103) Unrealised gains                                                           576 Closing valuation                                                       35,580 Movement in loan stock accrued income Opening accumulated movement in loan stock accrued income                  268 Movement in loan stock accrued income                                    (103) Closing accumulated movement in loan stock accrued income                  165 Movement in unrealised losses Opening accumulated unrealised losses                                  (4,890) Transfer of  previously unrealised  gains to  realised reserve  on  realisations of investments                                                971 Unrealised gains                                                           576 Closing accumulated unrealised losses                                  (3,343) Historic cost basis Opening book cost                                                       34,821 Purchases at cost                                                        5,218 Sales at cost*                                                         (1,280) Closing book cost                                                       38,759  *Includes an  amount  of £1,074,000  written  off  in respect  of  G&K  Smarts  Developments VCT Limited which is still held at the Balance sheet date.  The Directors  believe that  the  carrying value  of  loan stock  measured  at  amortised cost is not materially different to fair value.  The Company  does not  hold  any assets  as a  result  of the  enforcement  of  security during the  period, and believes  that the carrying  values for  both  impaired and past due  assets are covered  by the value  of security held  for  these loan stock investments.  Unquoted equity investments and convertible and discounted debts are valued in accordance with the IPEVCV guidelines as follows:                                                     31 March 2014 31 March 2013 Valuation methodology                                      £'000         £'000 Cost (reviewed for impairment)                             4,633           506 Net  asset  value  supported  by  third  party  or  desktop valuation                                         12,250        10,214                                                           16,883        10,720  Full valuations are prepared by  independent RICS qualified surveyors in  full  compliance with  the  RICS  Red  Book. Desktop  reviews  are  carried  out  by  similarly RICS  qualified  surveyors  by  updating  previously  prepared  full  valuations for current trading and market indices.  Fair value investments had the following movements between valuation methodologies between 31 March 2013 and 31 March 2014:                                              Value as at Change in  valuationmethodology (2013  to 31 March 2014 2014)                                             £'000       Explanatory note Cost (reviewed  for  impairment)  to  net  asset  value  supported  by  third  party                          More recent valuation                                           246  information available  The valuation method used will  be the most appropriate valuation  methodology  for an investment within  its market, with regard  to the financial health  of  the investment and the September 2009 IPEVCV Guidelines. The Directors believe that, within these parameters, there are  no other methods of valuation  which  would be reasonable as at 31 March 2014.  The amended FRS 29 'Financial  Instruments: Disclosures' requires the  Company  to disclose the valuation methods applied to its investments measured at  fair  value through  profit or  loss in  a  fair value  hierarchy according  to  the  following definitions:  Fair value hierarchy Definition of valuation method Level 1              Unadjusted quoted (bid) prices applied Level 2              Inputs to valuation are  from observable sources and  are                       directly or indirectly derived from prices Level 3              Inputs to valuations not based on observable market data.  All of the company's  fixed asset investments  as at 31  March 2014 which  are  valued at fair value through profit or loss, are all valued according to Level 3 methods.  Investments held  at fair  value through  profit  or loss  (level 3)  had  the  following movements in the year to 31 March 2014:                             31 March 2014                 31 March 2013                           Convertible and                   Convertible                               discounted                and discounted                   Equity           bonds  Total  Equity          bonds   Total                    £'000           £'000  £'000   £'000          £'000   £'000 Opening balance    8,489           2,231 10,720   8,490          1,315   9,805 Additions            415           4,638  5,053   3,187            913   4,100 Debt/equity swap               1,257         (1,257)      -       -              -       - Disposal proceeds            (40)               -   (40) (4,662)              - (4,662) Accrued    loan  stock interest         -             (3)    (3)       -              -       - Realised gains        40               -     40   1,184              -   1,184 Unrealised gains                932             181  1,113     290              3     293 Closing balance   11,093           5,790 16,883   8,489          2,231  10,720  FRS 29 requires the Directors to consider  the impact of changing one or  more  of the inputs  used as part  of the valuation  process to reasonable  possible  alternative assumptions. After due consideration and noting that the valuation methodology applied to 100 per cent. of the level 3 investments (by valuation) is based on cost or independent third party market information, the  Directors  do not believe that changes to reasonable possible alternative assumptions for the valuation of the portfolio as a  whole would lead to a significant  change  in the fair value of the portfolio.  13. Significant interests  The principal activity of  the Company is  to select and  hold a portfolio  of  investments in unquoted securities. Although the Company, through the Manager, will, in some cases, be represented on the board of the portfolio company,  it  will not take a controlling interest or become involved in the management. The size and structure  of the companies  with unquoted securities  may result  in  certain holdings  in  the  portfolio  representing  a  participating  interest  without there being  any partnership, joint  venture or management  consortium  agreement. The  Company has  interests of  greater than  20 per  cent. of  the  nominal value of any class of  the allotted shares in the portfolio  companies  as at 31 March 2014 as described below:                               Country of                            % class and Company                      incorporation  Principal activity   voting rights G&K Smart  Developments  VCT Great Britain  Residential         42.9% Ordinary Limited                                     property developer          shares Green  Highland   Renewables Great Britain  Hydroelectric power 20.8% Ordinary (Ledgowan) Limited                          generator                   shares Kew  Green  VCT   (Stansted) Great Britain  Hotel   owner   and 45.2% Ordinary Limited                                     operator                    shares Oakland Care Centre Limited  Great Britain  Care home           31.6% Ordinary                                                                         shares The  Crown  Hotel  Harrogate Great Britain  Hotel   owner   and 24.1% Ordinary Limited                                     operator                    shares The Stanwell Hotel Limited   Great Britain  Hotel   owner   and 39.2% Ordinary                                             operator                    shares  The investments listed above are held as part of an investment portfolio,  and  therefore, as permitted  by FRS 9,  they are  measured at fair  value and  not  accounted for using the equity method.  Active Lives Ltd whose holding is in excess of 50 per cent. of that  company's  equity, is excluded from consolidation as the interest in Active Lives Ltd  is  only being temporarily controlled and is not material to the view given by the Financial Statements.  14. Current assets                                 31 March 2014 31 March 2013 Trade and other debtors                £'000         £'000 Prepayments and accrued income            17            24 Other debtors                             12             - UK corporation tax receivable             19             -                                           48            24  The Directors consider that the carrying  amount of debtors is not  materially  different to their fair value.                                                     31 March 2014 31 March 2013 Current asset investments                                  £'000         £'000 Contingent future  receipts from  the disposal  of  fixed asset investments                                        -            50                                                                -            50  The fair value hierarchy applied to contingent future receipts on disposal  of  fixed asset investments is Level 3.  15. Creditors: amounts falling due within one year                               31 March 2014 31 March 2013                                      £'000         £'000 Trade creditors                         13            40 UK Corporation tax payable               -           100 Other creditors                        192             - Accruals and deferred income           270           347                                        475           487  The Directors consider that the carrying amount of creditors is not materially different to their fair value.  Other creditors include an  amount of £118,000 held  on behalf of a  portfolio  company.  16. Called up share capital                                                     31 March 2014 31 March 2013                                                            £'000         £'000 Allotted, called up and fully paid 64,490,852  Ordinary   shares   of  1p   each   (2013:  60,317,650)                                               645              603 Voting rights 59,795,412 Ordinary shares of 1p each (net of treasury shares) (2013: 56,165,210)  The Company purchased 543,000 Ordinary shares (2013: 1,073,067) to be held  in  treasury at a cost of £364,000 (2013: £720,000) representing 0.8 per cent.  of  its issued  share  capital as  at  31 March  2014.  The shares  purchased  for  treasury were funded from other distributable reserve.  During  the  period  the  Company   purchased  729,000  Ordinary  shares   for  cancellation (2013: nil)  at a cost  of £487,000 including  stamp duty  (2013:  nil), representing 1.1 per cent.  of its issued share  capital as at 31  March  2014. The  shares  purchased  for  cancellation were  funded  from  the  other  distributable reserve.  The Company holds a total of  4,695,440 shares (2013: 4,152,440) in  treasury,  representing 7.3 per cent. of the issued Ordinary share capital as at 31 March 2014.  Under the terms  of the Dividend  Reinvestment Scheme Circular  dated 10  July  2008, the following Ordinary shares were allotted during the year:                                                       Issue              Number of     Aggregate           Net price      Opening market      Date of    shares nominal value consideration  (pence  price per share on    allotment  allotted     of shares      received     per      allotment date                                £'000         £'000  share)   (pence per share) 31 July 2013   144,173             1           100   71.70               67.50  31 December         2013   150,017             2           105   70.50               67.25                294,190             3           205  During the year the following Ordinary  shares were allotted under the  Albion  VCT's Top Up Offers 2012/2013 and the Albion VCT's Top Up Offers 2013/2014:                        Aggregate             Number of   nominal           Net        Issue      Opening market    Date of     shares  value of consideration price  price per share on  allotment   allotted    shares      received   (pence per      allotment date                           £'000         £'000       share)   (pence per share)    5 April       2013  2,505,191        25         1,872        76.80               68.50    12 June       2013     99,020         1            74        76.80               67.50 31 January       2014  1,123,737        11           794        72.00               67.25 31 January       2014    859,027         9           606        72.40               67.25 31 January       2014     21,037         -            15        71.30               67.25             4,608,012        46         3,361  17. Basic and diluted net asset values per share                                                     31 March 2014 31 March 2013 Basic and  diluted  net  asset  values  per  share  (pence)                                                    71.30         74.20  The basic  and  diluted  net asset  values  per  share at  the  year  end  are  calculated in accordance with the Articles  of Association and are based  upon  total shares in  issue (less  treasury shares) of  59,795,412 Ordinary  shares  (2013: 56,165,210).  There  are  no  convertible  instruments,  derivatives  or  contingent   share  agreements in issue.  18. Analysis of changes in cash during the year                           Year ended    Year ended                       31 March 2014 31 March 2013                               £'000         £'000 Opening cash balances        11,896         2,956 Net cash flow               (4,391)         8,940 Closing cash balances         7,505        11,896  19. Reconciliation of net return on ordinary activities before taxation to net cash flow from operating activities                                                        Year ended    Year ended                                                    31 March 2014 31 March 2013                                                            £'000         £'000 Revenue  return  on  ordinary  activities   before  taxation                                                   1,119         1,114 Investment management fee charged to capital               (601)         (514) Movement in accrued amortised loan stock interest            103          (70) Increase in debtors                                          (8)          (13) Increase/(decrease) in creditors                            (32)            55 Net cash flow from operating activities                      581           572  20. Capital and financial instruments risk management  The Company's capital comprises Ordinary shares  as described in note 16.  The  Company is permitted to buy-back its  own shares for cancellation or  treasury  purposes, and this is described in more detail in the Chairman's statement.  The Company's financial instruments comprise equity and loan stock investments in unquoted  companies,  contingent  receipts  on  disposal  of  fixed  assets  investments, cash balances and  short term debtors  and creditors which  arise  from its operations.  The main purpose  of these financial  instruments is  to  generate cashflow  and  revenue and  capital  appreciation for  the  Company's  operations. The Company has  no gearing or  other financial liabilities  apart  from short term creditors.  The Company does not  use any derivatives for  the  management of its balance sheet.  The principal risks arising from the Company's operations are:    oInvestment (or market) risk (which comprises investment price and cash     flow interest rate risk);   ocredit risk; and   oliquidity risk.  The Board regularly  reviews and agrees  policies for managing  each of  these  risks. There have been no changes in the nature of the risks that the  Company  has faced during the past year and,  apart from where noted below, there  have  been no changes in  the objectives, policies or  processes for managing  risks  during the past year. The key risks are summarised below.  Investment risk As a venture capital trust, it is the Company's specific nature to evaluate and control the investment risk of its portfolio in unquoted investments, details of which are shown on pages 16 and 17 of the full Annual Report and Financial Statements. Investment risk is the exposure of the Company to the revaluation and devaluation of investments. The main driver of investment risk is the operational and financial performance of the portfolio company and the dynamics of market quoted comparators. The Manager receives management accounts from portfolio companies, and members of the investment management team often sit on the boards of portfolio companies; this enables the close identification, monitoring and management of investment risk.  The Manager  and the  Board formally  review investment  risk (which  includes  market price risk), both  at the time of  initial investment and at  quarterly  Board meetings.  The Board monitors the prices at which sales of investments are made to ensure that profits to the Company are maximised, and that valuations of  investments  retained within  the  portfolio  appear  sufficiently  prudent  and  realistic  compared to  prices  being  achieved  in the  market  for  sales  of  unquoted  investments.  The maximum investment risk as at the  balance sheet date is the value of  the  fixed investment portfolio  which is £35,580,000  (2013: £30,198,000).  Fixed  asset investments form 83 per cent. of the net asset value as at 31 March 2014 (2013: 72.5 per cent.).  More details regarding the classification of fixed asset investments are shown in note 12.  Investment price risk Investment price risk is the risk that the fair value of future investment cash flows will fluctuate due to factors specific to an investment instrument or to a market in similar instruments. To mitigate the investment price risk for the Company as a whole, the strategy of the Company is to invest in a broad spread of industries with approximately two-thirds of the unquoted investments comprising debt securities, which, owing to the structure of their yield and the fact that they are usually secured, have a lower level of price volatility than equity. Details of the industries in which investments have been made are contained in the Portfolio of investments section on pages 16 and 17 of the full Annual Report and Financial Statements.  Valuations are  based on  the most  appropriate valuation  methodology for  an  investment within its market, with regard to the financial  health of the investment and the IPEVCV Guidelines.  As required under FRS  29 "Financial Instruments:  Disclosures", the Board  is  required to illustrate by way of a sensitivity analysis the degree of exposure to market  risk.  The  Board considers  that  the  value of  the  fixed  asset  investment portfolio  is sensitive  to a  10  per cent.  change based  on  the  current economic  climate.  The impact  of  a 10  per  cent. change  has  been  selected  as  this  is  considered  reasonable  given  the  current  level  of  volatility observed both on a historical basis and future expectations.  The sensitivity of a 10 per cent. increase or decrease in the valuation of the fixed and current  asset investments  (keeping all  other variables  constant)  would increase or  decrease the net  asset value  and return for  the year  by  £3,558,000 (2013: £3,025,000).  Cash flow interest rate risk It is the Company's policy to accept a degree of interest rate risk on its financial assets through the effect of interest rate changes. On the basis of the Company's analysis, it is estimated that a rise of one percentage point in all interest rates would have increased total return before tax for the year by approximately £80,000 (2013: £55,000). Furthermore, it is considered that a fall of interest rates below current levels during the year would have been very unlikely.  The weighted average interest rate applied to the Company's fixed rate  assets  during the year was approximately 5.80  per cent. (2013: 6.30 per cent.).  The  weighted average period to maturity for the fixed rate assets is approximately 3.34 years (2013: 3.16 years).  The Company's  financial assets  and liabilities,  all denominated  in  pounds  sterling, consist of the following:                          31 March 2014                       31 March 2013               Fixed Floating Non-interest         Fixed Floating Non-interest                rate     rate      bearing  Total   rate     rate      bearing  Total               £'000    £'000        £'000  £'000  £'000    £'000        £'000  £'000 Unquoted equity            -        -       11,093 11,093      -        -        8,489  8,489 Convertible and discounted bonds         3,378      279        2,133  5,790  1,866        -          365  2,231 Unquoted loan stock   18,697        -            - 18,697 19,478        -            - 19,478 Current asset investments       -        -            -      -      -        -           50     50 Debtors *         -        -           24     24      -        -           20     20 Current liabilities*      -        -        (475)  (475)      -        -        (387)  (387) Cash              -    7,505            -  7,505 11,217      679            - 11,896 Total    net  assets       22,075    7,784       12,775 42,634 32,561      679        8,537 41,777  * The debtors and current liabilities do not reconcile to the balance sheet as prepayments and tax receivable/(payable) are not included in the above table.  Credit risk Credit risk is the risk that the counterparty to a financial instrument will fail to discharge an obligation or commitment that it has entered into with the Company. The Company is exposed to credit risk through its debtors, investment in unquoted loan stock, and through the holding of cash on deposit with banks.  The Manager evaluates credit  risk on loan stock  prior to investment, and  as  part of its ongoing  monitoring of investments. In  doing this, it takes  into  account the extent  and quality  of any  security held.  Typically loan  stock  instruments have a first fixed charge or a fixed and floating charge over  the  assets of the portfolio  company in order to  mitigate the gross credit  risk.  The Manager receives management accounts from portfolio companies, and members of the  investment  management team  often  sit  on the  boards  of  portfolio  companies; this enables the close identification, monitoring and management of investment specific credit risk.  The Manager and the Board formally review credit risk (including debtors)  and  other risks, both  at the time  of initial investment  and at quarterly  Board  meetings.  The Company's total  gross credit  risk as  at 31  March 2014  was limited  to  £24,487,000 (2013: £21,709,000)  of unquoted  loan stock  instruments (all  of  which is secured on the assets  of the portfolio company) and £7,505,000  cash  deposits with banks (2013: £11,896,000).  The credit profile  of the unquoted  loan stock is  described under  liquidity  risk below.  The cost,  impairment and  carrying  value of  impaired  loan stocks  held  at  amortised cost at 31 March 2014 and 31 March 2013 are as follows:                           31 March 2014                  31 March 2013                                        Carrying                       Carrying                   Cost Impairment         value   Cost Impairment        value                  £'000      £'000         £'000  £'000      £'000        £'000 Impaired   loan  stock           13,750    (3,601)        10,149 11,907    (3,021)        8,886  Impaired loan  stock instruments  have a  first fixed  charge or  a fixed  and  floating charge  over  the assets  of  the  portfolio company  and  the  Board  consider the security value to be the carrying value.  As at the balance sheet date, the cash held by the Company is held with Lloyds Bank plc, Scottish Widows  Bank plc (part of  Lloyds Banking Group),  Barclays  Bank plc and National Westminster Bank  plc. Credit risk on cash  transactions  is mitigated by  transacting with counterparties  that are regulated  entities  subject to  prudential  supervision,  with high  credit  ratings  assigned  by  international credit-rating agencies.  The Company  has  an informal  policy  of limiting  counterparty  banking  and  floating rate note exposure to  a maximum of 20 per  cent. of net asset  value  for any one counterparty.  Liquidity risk Liquid assets are held as cash on current, deposit or short term money market accounts. Under the terms of its Articles, the Company has the ability to borrow up to 10 per cent. of its adjusted capital and reserves of the latest published audited balance sheet, which amounts to £4,110,000 as at 31 March 2014 (2013: £4,168,000).  The Company has no committed borrowing  facilities as at 31 March 2014  (2013:  £nil) and had cash balances of  £7,505,000 (2013: £11,896,000). The main  cash  outflows are for new  investments, buy-back of  shares and dividend  payments,  which are within the control of the Company. The Manager formally reviews  the  cash requirements  of the  Company on  a monthly  basis, and  the Board  on  a  quarterly basis as part  of its review of  management accounts and  forecasts.  All the Company's  financial liabilities are  short term in  nature and  total  £475,000 for the year to 31 March 2014 (2013: £487,000).  The carrying value of loan stock investments  at 31 March 2014 as analysed  at  each year end by expected maturity dates is as follows:                        Fully performing Impaired Past due  Total Redemption date                  £'000    £'000    £'000  £'000 Less than one year                 443    1,716      375  2,534 1-2 years                        2,355      604    3,862  6,821 2-3 years                        1,375    7,829       65  9,269 3-5 years                        3,061        -        -  3,061 Greater than 5 years             2,376        -      426  2,802 Total                            9,610   10,149    4,728 24,487  Loan stock categorised as past due includes:    oLoan stock with a carrying value of £3,778,000 has interest overdue for 4     months, yielded 11.92 per cent. on cost;   oLoan stock with a carrying value of £524,000 has loan stock interest past     due of 12 months (through not paying all of its contractual interest).     This investment has yielded 6.7 per cent. on cost during the year;   oLoan stock with a carrying value of £426,000 had loan stock interest     reduced for the last 12 months, yielded 5.57 per cent. on cost.  The carrying value  of loan  stock investments held  at amortised  cost at  31  March 2013 as analysed by expected maturity dates is as follows:                       Fully performing Impaired Past due  Total Redemption date                 £'000    £'000    £'000  £'000 Less than one year                355        -      471    826 1-2 years                         109    2,241    3,846  6,196 2-3 years                       2,345        -      296  2,641 3-5 years                       1,904    6,645    2,164 10,713 Greater than 5 years            1,103        -      230  1,333 Total                           5,816    8,886    7,007 21,709  In view of  the information  shown, the Board  considers that  the Company  is  subject to low liquidity risk.  Fair values of financial assets and financial liabilities All the Company's financial assets and liabilities as at 31 March 2014 are stated at fair value as determined by the Directors, with the exception of loans and receivables included within investments, cash, debtors and creditors which are carried at amortised cost, as permitted by FRS 26. The Directors believe that the current carrying value of loan stock is not materially different to the fair value. There are no financial liabilities other than creditors. The Company's financial liabilities are all non-interest bearing. It is the Directors' opinion that the book value of the financial liabilities is not materially different to the fair value and all are payable within one year.  21. Commitments and contingencies The company had the following financial commitment in respect of the following investments:    oChonais Holdings Limited, £1,385,000   oGreen Highland Renewables (Ledgowan) Limited, £591,000   oDragon Hydro Limited, £3,000  There are no contingent liabilities or  guarantees given by the Company as  at  31 March 2014 (31 March 2013: nil).  22. Post balance sheet events Since 31 March 2014 the Company has had the following post balance sheet events:  Shares issued under the Albion VCTs Top Up Offers 2013/2014:                                                                         Opening                                                                         market                     Aggregate                                        price per           Number of   nominal           Net Issue price incl. issue   share on   Date of    shares  value of consideration   costs (pence  allotment allotment  allotted    shares      received                     per       date                                                                     (pence per                         £'000         £'000                  share)     share)   5 April      2014   748,273         7           531                   73.10      67.25   5 April      2014    18,621         -            13                   72.80      67.25   5 April      2014    17,201         -            12                   72.40      67.25  Shares issued under the Albion VCTs Prospectus Offers 2013/2014:                                                                         Opening                                                                         market                      Aggregate                                       price per            Number of   nominal           Net      Issue price incl.   share on   Date of     shares  value of consideration   issue costs  allotment allotment   allotted    shares      received             (pence per       date                                                                     (pence per                          £'000         £'000                 share)     share)   5 April      2014  1,899,867        19         1,347                  73.10      67.25    oInvestment of £992,000 in Albion Small Company Growth Limited   oInvestment of £183,150 in Taunton Hospital Limited   oInvestment of £312,098 in Green Highland Renewables (Ledgowan) Limited  23. Related party transactions There are no related party transactions or balances requiring disclosure.  24. Other information The information set out in this announcement does not constitute the Company's statutory accounts within the terms of section 434 of the Companies Act 2006 for the years ended 31 March 2014 and 31 March 2013, and is derivedfrom thestatutory accounts for those financial years, which have been, or in the case of the accounts for the year ended 31 March 2014, which will be, delivered to the Registrar of Companies. The Auditor reported on those accounts; the reports were unqualified and did not contain a statement under s498 (2) or (3) of the Companies Act 2006.  The Company'sAnnual General Meeting will be held at The City of London  Club,  19 Old Broad Street, London, EC2N 1DS on 25 July 2014 at 11.00am.  25. Publication The full audited Annual Report and Financial Statementsare being sent to shareholders and copies will be made available to the public at the registered office of the Company, Companies House, the National Storage Mechanism and also electronically atwww.albion-ventures.co.ukunder the 'Our Funds' section, by clicking on 'Albion Venture Capital Trust PLC', where the Report can be accessed as a PDF document via a link under the 'Investor Centre' in the 'Financial Reports and Circulars' section.  Dividend history  for Albion  Prime VCT  PLC now  merged with  Albion  Venture  Capital Trust PLC (unaudited)                                                                   Proforma^(i)                                                                   Albion Prime                                                                        VCT PLC Total shareholder net asset value return to 31 March 2014    (pence per share) Total  dividends  paid  during  the  year  ended                                          31 March 1998              1.10                                            31 March 1999(ii)              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                                                31 March 2010              2.00                                                31 March 2011              3.00                                                31 March 2012              3.00                                                31 March 2013              3.70                                                31 March 2014              4.40 Total dividends paid to 31 March 2014                                    55.55 Proforma net asset value as at 31  March  2014                                                                     62.75 Total proforma  shareholder net  asset value  return to  31  March 2014                                                              118.30  Notes  i.The proforma shareholder returns presented above are based on the dividends    paid to shareholders before the merger and the pro-rata net asset value per    share and pro-rata dividends per share paid to 31 March 2014. Albion Prime    VCT PLC was merged with Albion Venture Capital Trust PLC on 25^th September    2012. This pro-forma is based upon 0.8801 Albion Venture Capital Trust PLC    shares for every Albion Prime VCT PLC share which merged with Albion    Venture Capital Trust PLC on 25 September 2012.     ii.Dividends paid before 5 April 1999 were paid to qualifying shareholders     inclusive of the associated tax credit. The dividends for the year to 31     March 1999 were maximised in order to take advantage of this tax credit.      iii.The above table excludes the tax benefits investors received upon      subscription for shares in the Company.  Albion Venture Capital Trust pie chart for announcement 31 Mar 14  ------------------------------------------------------------------------------  This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients. The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein. Source: Albion Venture Capital Trust PLC via Globenewswire HUG#1804796  
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