Albion Development VCT — Shareholder Meeting (May 2022)
23 slides from Albion Development VCT's shareholder meeting presentation, May 2022
Slide 1: Albion Development VCT PLC – Results for the year to December 2021
Albion Development VCT PLC Results for the year to 31 December 2021 AGM May 2022 Albion Development VCT PLC – AGM May 2022
Slide 2: Agenda
Agenda • Financial highlights • Background • Track record • Highlights in the year • Investment portfolio • Realisations • Investment strategy • ESG & responsible investing • Prospects, Q1 results and shareholder events Albion Development VCT PLC – AGM May 2022 2
Slide 3: Financial highlights to Dec 2021
Financial highlights to Dec 2021 94.98p Net asset value (NAV) per share as at 31 December 2021 17.20p Return per share for the year 20.5% Movement in shareholder value in the year 4.37p Tax-free dividends per share paid during the year 5.3% Tax-free dividend yield on opening NAV, in line with target
Slide 4: Background
Background • Continued impact of Covid-19 during • Strong return across the portfolio despite the year headwinds, led by investments in healthcare and software • Further uncertainty due to the invasion of Ukraine, resulting in increased • Portfolio focus on mission critical products geopolitical ris
Slide 5: Track record
Track record Albion Development VCT Ordinary Shares Performance Data – Dec 2021 12 month performance 20.5% 5 year performance 64.2% 10 year performance 86.9% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% 100.0% Albion Development VCT PLC – AGM May 2022 5
Slide 6: Highlights in the year
Highlights in the year 2020 2021 Notes Fundraising £10.0m £21m 2020/21 fundraise & 2021/22 fundraise Including OmPrompt, MPP & Innovation Exits £3.2m £6m Broking £2.6m in 5 new companies and £4.4m into Investment rate £5.2m £7.0m existing portfolio Share buybacks £1.2m £1.7m Dividends £3.9m £4.5m Pe
Slide 7: Key value drivers in the year
Key value drivers in the year 2021 Notes Quantexa £7.9m Valuation uplift - external fundraising Oviva £2.3m Valuation uplift - external fundraising Egress £1.6m Valuation uplift - trading strongly Mirada (£0.5m) Covid-19 impact Other – write ups £12.3m Including: Proveca, Phrasee, Credit Kudos and A
Slide 8: Portfolio analysis
Portfolio analysis Sector breakdown Portfolio of 57 companies employing over 3,500 people predominantly in the UK 8 Comparatives for 31 December 2020 are in brackets. Albion AlbionDevelopment DevelopmentVCT VCTPLC PLC––AGM AGMMay May2022 2022
Slide 9: Portfolio analysis
Portfolio analysis Stage of investment No. of employees * Renewable energy investments have no employees 9 Comparatives for 31 December 2020 are in brackets. Albion Development VCT PLC – AGM May 2022
Slide 10: The top investments account for 32.7% of the NAV at Dec 2021
The top 3 investments account for 32.7% of the NAV at 31 Dec 2021 Investment Cost Book value Revenue Employee date £000 £000 growth growth Uses the latest advances in big data analytics and artificial intelligence to help 2017 2,101 14,911 30.0x 30 to 481 its financial services and government custom
Slide 11: New investments
New investments Threadneedle Gravitee TopCo NuvoAir Holdings Brytlyt uses Accelex provides Software Holdings (trading as is a patented software data extraction and (trading as Solidatus) Gravitee.io) is an provider of digital and AI, to derive analytics is a provider of data application therapeutics
Slide 12: New investment: Gravitee
New investment: Gravitee • APIs are the railways of the digital world with every company now a software company and likely to need an API management solution in the future Gravitee TopCo (trading as Gravitee.io) is an application programming interface (API) • Gravitee.io is the most open source and
Slide 13: New investment: NuvoAir
New investment: NuvoAir • NuvoAir had a record 500% growth in Q1 2021 in the wake of Covid • A trend set to continue as more hospitals and patients further A provider of digital therapeutics and embrace technology decentralised clinical trials for respiratory conditions • Albion VCTs invested £3.6m
Slide 14: £4.4m follow-ons
£4.4m follow-ons Digital health business that A SaaS company that uses A digital therapy company for provides diet and lifestyle social data to accurately mental health that combines coaching to people who deal predict consumer behaviour the use of technology with with diet-related health specialise
Slide 15: Realisations: OmPrompt
Realisations: OmPrompt Sold to Elemica, a US-quartered, global digital supply network A leader in supply chain digitisation and £3.7m Invested by Albion VCTs automation, helping companies with complex supply chains bridge gaps by eliminating the need for human 2.3x Cash on cash multiple workarounds
Slide 16: Realisations: Innovation Broking
Realisations: Innovation Broking Sold to Goldman Sachs-backed Aston Lark £1.3m Invested by Albion VCTs A commercial insurance broker and employee benefits adviser for SME, mid-market and larger companies in 10.3x Cash on cash multiple and 75% IRR the UK £0.9m Albion Development VCT proceeds Albion A
Slide 17: Investment strategy
Investment strategy From Seed Backing Focus on • Software to Series B Long-term Business-to-Business • Healthcare (early stage trends (B2B) to growth) • Other (automotive technologies, sensors) Albion Development VCT PLC – AGM May 2022 17
Slide 18: ESG & responsible investing
ESG & responsible investing Our commitment • Devise an appropriate risk-return profile for our investments • Deliver value to our investors • Develop sustainable long-term strategies for our portfolio companies Our process • Integrates ESG principles at all stages of investment • Measures the sustai
Slide 19: ESG in investment process
ESG in investment process 1. 2. Due 3. 4. 5. Screening diligence Monitoring Follow-ons Exits • Check company • ESG Due Diligence • Leverage portfolio • Reassess ESG risks and • Support the company activity with exclusion completed pre- company board to opportunities at each in demonstrating to list
Slide 20: ESG within our business
ESG within our business • Monitoring carbon footprint • Future VC, a paid internship offered • Updated ESG approach as part of our investment • Net zero carbon emissions • Fair HQ, working with expert process strategy designed consultancy to establish diverse and inclusive practices • Regular ESG up
Slide 21: Prospects
Prospects • Ongoing uncertainty with potential challenging times ahead • Well-balanced portfolio by sector and stage of maturity • Portfolio focus on mission critical products and services, particularly software and healthcare, designed to provide resilience • Limited exposure to discretionary consu
Slide 22: Q1 results and shareholder events
Q1 results and shareholder events Shareholder seminar details • NAV at 31 March 2022 of 97.15p 23 November 2022 • An increase of 2.28% for the quarter Royal College of Surgeons • Virtual AGMs Lincoln's Inn Fields, London • Physical annual shareholder seminar To reserve a place, email info@albion.cap
Slide 23: Thank you
Thank you This presentation is for information purposes only and is not to be regarded as an offer to buy or sell, or the solicitation to buy or sell shares in Albion Development VCT PLC. Any person considering an investment should seek advice from an authorised financial advisor. Albion Capital Gro
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