Kings Arms Yard VCT PLC: Interim Management Statement
Kings Arms Yard VCT PLC Interim Management Statement
LEI Code 213800DK8H27QY3J5R45
Introduction
I present Kings Arms Yard VCT PLC’s (the “Company”) interim management statement for the period from 1 January 2020 to 31 March 2020.Impact of coronavirus (Covid-19) and Net asset value
Since the year ended 31 December 2019, the Board has been monitoring the ongoing disruption caused by the coronavirus (Covid-19) pandemic and its current and potential impact on portfolio companies. The full extent of the damage that will be inflicted on the global economies is still uncertain.In light of this, the Company announces its unaudited net asset value (NAV) as at 31 March 2020 of £74.4 million or 19.79 pence per share (excluding treasury shares), which represents a decrease of 2.23 pence per share (10.1 per cent.) since 31 December 2019. This reflects reductions across the portfolio, which is carried at fair value, as a result of market conditions arising from the healthcare pandemic. The Board has reassessed the carrying values of all companies within the portfolio and has reduced those which are affected by the current situation. The portfolio is well diversified and has weightings in sectors that may be less badly affected by the pandemic such as renewable energy. Many companies within the portfolio are well suited to operating in a remote environment but this may not entirely insulate them from the failure of clients due to recession.After accounting for the dividend of 0.60 pence per share payable on 30 April 2020 to shareholders on the register on 14 April 2020, the NAV will be 19.19 pence per share.Fundraising and share issues
During the period from 1 January 2020 to 31 March 2020, the Company issued the following new Ordinary shares of nominal value 1 penny per share under the Albion VCTs Prospectus Top Up Offers 2019/20:Share buy-backs
Given the uncertainty on valuations caused by coronavirus (Covid-19) and its impact on financial markets in recent times, the Board agreed to suspend the Company’s buy back operation on 18 March 2020 until such time as the Company could provide an updated valuation as at 31 March 2020 of the portfolio and the Company’s NAV.With this announcement of the NAV of the Company at 31 March 2020, the Board is pleased to announce the resumption of its share buy-back policy, subject to the overall constraint that such purchases are in the Company’s interest, including the maintenance of sufficient resources for investment in existing and new portfolio companies and the continued payment of dividends to shareholders. However, the level of share buybacks until the announcement of the Company’s interim results, expected during August 2020, shall be limited to £500,000.It is the Board’s intention for such buy-backs to be at around a 5 per cent. discount to net asset value, so far as market conditions and liquidity permit.PortfolioThe following investments have been made during the period from 1 January 2020 to 31 March 2020:Top ten holdings as at 31 March 2020:Board composition
Since the Company’s year end, the Board has been engaged in discussions with regards to succession planning and an announcement will be made later on this year.Material events and transactions after the period endAfter the period end, the Company had no material transactions.Further information
The Company continues to offer a dividend reinvestment scheme to existing shareholders. Details of this scheme can be found at www.albion.capital/funds/KAY.Further information regarding historic and current financial performance and other useful shareholder information can be found on the Company’s webpage on the Manager’s website under www.albion.capital/funds/KAY.Robin Field, Chairman
22 April 2020For further information please contact:
KAYchair@albion.capital
Albion Capital Group LLP – Tel: 020 7601 1850
LEI Code 213800DK8H27QY3J5R45
Introduction
I present Kings Arms Yard VCT PLC’s (the “Company”) interim management statement for the period from 1 January 2020 to 31 March 2020.Impact of coronavirus (Covid-19) and Net asset value
Since the year ended 31 December 2019, the Board has been monitoring the ongoing disruption caused by the coronavirus (Covid-19) pandemic and its current and potential impact on portfolio companies. The full extent of the damage that will be inflicted on the global economies is still uncertain.In light of this, the Company announces its unaudited net asset value (NAV) as at 31 March 2020 of £74.4 million or 19.79 pence per share (excluding treasury shares), which represents a decrease of 2.23 pence per share (10.1 per cent.) since 31 December 2019. This reflects reductions across the portfolio, which is carried at fair value, as a result of market conditions arising from the healthcare pandemic. The Board has reassessed the carrying values of all companies within the portfolio and has reduced those which are affected by the current situation. The portfolio is well diversified and has weightings in sectors that may be less badly affected by the pandemic such as renewable energy. Many companies within the portfolio are well suited to operating in a remote environment but this may not entirely insulate them from the failure of clients due to recession.After accounting for the dividend of 0.60 pence per share payable on 30 April 2020 to shareholders on the register on 14 April 2020, the NAV will be 19.19 pence per share.Fundraising and share issues
During the period from 1 January 2020 to 31 March 2020, the Company issued the following new Ordinary shares of nominal value 1 penny per share under the Albion VCTs Prospectus Top Up Offers 2019/20:Share buy-backs
Given the uncertainty on valuations caused by coronavirus (Covid-19) and its impact on financial markets in recent times, the Board agreed to suspend the Company’s buy back operation on 18 March 2020 until such time as the Company could provide an updated valuation as at 31 March 2020 of the portfolio and the Company’s NAV.With this announcement of the NAV of the Company at 31 March 2020, the Board is pleased to announce the resumption of its share buy-back policy, subject to the overall constraint that such purchases are in the Company’s interest, including the maintenance of sufficient resources for investment in existing and new portfolio companies and the continued payment of dividends to shareholders. However, the level of share buybacks until the announcement of the Company’s interim results, expected during August 2020, shall be limited to £500,000.It is the Board’s intention for such buy-backs to be at around a 5 per cent. discount to net asset value, so far as market conditions and liquidity permit.PortfolioThe following investments have been made during the period from 1 January 2020 to 31 March 2020:Top ten holdings as at 31 March 2020:Board composition
Since the Company’s year end, the Board has been engaged in discussions with regards to succession planning and an announcement will be made later on this year.Material events and transactions after the period endAfter the period end, the Company had no material transactions.Further information
The Company continues to offer a dividend reinvestment scheme to existing shareholders. Details of this scheme can be found at www.albion.capital/funds/KAY.Further information regarding historic and current financial performance and other useful shareholder information can be found on the Company’s webpage on the Manager’s website under www.albion.capital/funds/KAY.Robin Field, Chairman
22 April 2020For further information please contact:
KAYchair@albion.capital
Albion Capital Group LLP – Tel: 020 7601 1850