kings arms yard vct plc

Kings Arms Yard VCT PLCResults for the year to 31 December 2020

1. Financial highlights

2. Covid-19 impact

3. Track record

4. Highlights in the year

5. Investment portfolio

6. Realisations

7. Investment strategy

8. ESG & responsible investing

9. Prospects

10. Fraud Warning

AGENDAAGENDA

AGM JUNE 2021 2KINGS ARMS YARD VCT PLC

AGENDA1. Financial highlights - year to 31 December 2020


21.84p

0.91p

4.2%

1.11p

0.60p

Net asset value per share as at 31 December 2020

Total return per share for the year

Total shareholder return on opening net asset value

Tax-free dividends per share paid during the year

First tax-free dividend per share for the year to 31 December 2021 (paid 30 April 2021)

AGENDA2. Covid-19 impact


• Impact of Covid-19 on portfolio is now better understood.

• A number of companies in the portfolio are thriving.

• But the extent of the economic impact of Covid-19 is still uncertain.

• New investment activity targeting digital health, data analytics, automation, fintech and digital security.

• Shareholder engagement:

• Positive response from Shareholders to virtual meetings - an average audience increase of around 150%.

• The automated and digital fundraising process efficiently raised record funds in record time.

AGENDA3. Track record


December 2020 (%)

March 2021 (%)

12 month 4.2 18.3

5 Year 36.0 39.3

10 Year 92.9 96.9

AGENDA4. Highlights in the year


Year ending 31 December 2019 2020

Fundraising £9.6m £14.6m2019/20 fundraise & 2020/21 fundraise both fully subscribed

Exits £5.0m £1.8m Including G.Network and Clear Review

Investment rate £5.6m £4.0m£1.6m in 6 new and £2.4m in existing portfolio

Share buybacks £1.4m £1.1m

Dividends £4.0m £4.2m

AGENDA4.1 Highlights in the year


Key value drivers in year are 2020

Proveca £2.4m Uplift in valuation due to positive trading

OmPrompt Holdings £1.7m Sold in Q1 2021

Quantexa £1.6m Revalued after successful further funding round

Elateral (£1.2m) Write down

Perpetuum (£1.8m) Write down

Other – write ups £4.0m

Other – write downs (£3.4)m

Total £3.3m

AGENDA5. Investment portfolio


Portfolio of 66 companies employing over 3,200 people predominantly in the United Kingdom

Portfolio analysis by sector

AGENDA5.1 Investment portfolio


Portfolio analysis by stage of investment Portfolio analysis by number of employees

10

European specialist pharmaceutical company focussed on children’s medicines

Investment date

Employee Growth

Cost Book Value

Revenue Growth

2012

2014

2017

£2.3m

£1.6m

£1.3m £4.3m

£5.4m

£8.2m

>10x

30 to 336

23 to 240

4 to 45

£5.2m £17.9m

The top three investments* account for 21.9% of the net asset value at 31 December 2020

5.2 Investments – Top 3 investments*


Invested pre-revenue, now >£10m

Uses the latest advances in big data analytics and artificial intelligence to help its banking, insurance and government customers detect financial crime

>20x

Is the leading cloud encryption platform ensuring data security for email, data transfer and collaboration environments

(*excluding care homes which were sold in March 2021)

Seldon is a software company that enables enterprises to deploy machine learning models in production.

• Albion VCTS invested £2.8m into Seldon (KAY: £418,000).

• The funding will be used to accelerate R&D and drive commercial expansion.

• Seldon plans to more than double the size of the team over the next 18 months, and make several strategic hires in data science research and engineering.

AGENDA5.3 Investments – Seldon new


AGENDA5.4 Investments – WeGift new


• Albion VCTs invested £4m as part of a £6.7m investment round in WeGift (KAY: £361,000).

• The investment will help WeGift deliver on its vision of creating the world’s first real-time infrastructure for digital rewards and incentives.

• Their open API technology platform allows businesses to automate sending digital incentives in real-time.

WeGift is a cloud platform that enables corporates to purchase digital gift cards and distribute them to employees and customers.

AGENDA5.5 Investment strategy - new investments


Credit Kudos is a challenger credit bureau helping lenders optimise and automate their affordability and risk assessments.

uMed is a middleware technology platform that enables life science organisations to conduct medical research programmes.

TransFICC is a provider of a connectivity solutions, connecting financial institutions with trading venues via a single API.

Concirrus is a software provider bringing real-time behavioural data analytics to the marine and commercial motor insurance industry.

AGENDA5.6 Investments – £2.4 million follow-ons including:


Black Swan is a predictive analytics platform which uses internal and external data to provide consumer insight to the world's leading brands.

Phrasee is a marketing technology platform that uses AI, namely Natural Language Generation, and ML to generate optimised marketing campaigns.

Quantexa uses big data analytics and AI to help its banking, insurance and government customers detect financial crime.

AGENDA6. Realisations – G.Network


G.Network Exit

Central London full fibre broadband

£0.63m Invested

3.8x Cash on cash multiple

31% pa Internal rate on return (including interest received)

£2.39m Total proceeds expected with majority of proceeds

deferred for three years.

Fibre broadband installed grew to pass 160,000 premises.

Sold to funds controlled by the Universities Superannuation

Scheme (USS) and Cube Infrastructure Managers.

AGENDA6.1 Realisations – Clear Review


Cloud-based performance management system

Clear Review Exit

£0.2m Invested


73% pa Internal rate of return

£0.42m Proceeds realised

Revenues doubled during the 15 months following investment by the Albion VCTs.

Sold to Advanced Computer Software Group.

AGENDA6.2 Realisations – Following the year end


In March 2021 the Company completed the sale of Active

Lives Care, Ryefield Court Care and Shinfield Lodge Care.

£8.0m Invested


20% pa Internal rate on return (including interest received)


The first investments in the homes were made over 5 years

ago and the homes were trading at mature occupancy levels.

AGENDA6.3 Realisations – Following the year end


In March 2021 the Company also completed the sale

of OmPrompt Holdings

£1.4m Invested


17% pa Internal rate of return (including interest received)


OmPrompt helps companies digitise and control the flow of

order management information to and from their customers,

third party providers and suppliers (acquired by Elemica).

• Stage - from Seed to Series B

• Backing long term trends

• Key sectors o Enterprise software (cyber security, digital marketing, data analytics, fintech)

o Healthcare technologies (healthcare IT, specialist pharma, diagnostic devices)

o Other (automotive technologies, sensors, process automation)

• Focus on Business-to-Business software and technology enabled services

• Low exposure to consumer facing businesses

AGENDA7. Investment strategy


AGENDA8.0 ESG & Responsible Investing

AGM June 2021 20KINGS ARMS YARD VCT PLC

Our commitment:

• Albion is a signatory of United Nations Principles for Responsible Investments (UNPRI) and we incorporate environmental, social and governance (ESG) considerations into our investment decisions.

• To create an appropriate risk-return profile for our investments, deliver value to our investors, and develop sustainable long-term strategies for our portfolio companies.

Our process:

• To integrate ESG principles at the pre-investment, investment and exit stages. Measuring the sustainability and societal impact of our investments.

AGENDA8.1 ESG for investment process overview


AGENDA8.2 ESG - Charitable Activities


Our charities:

• Whizz-Kidz is the UK’s leading charity for young wheelchair users. They transform the lives of disabled children across the UK, supporting them to become confident and independent young adults.

• Generating Genius works to ensure that talented and able students from disadvantaged backgrounds are positioned to excel in STEM careers.

In Q1 Albion raised £5,000 from a combination of:

• Our commitment to donate £1 for every shareholder who signed up for electronic communications and online applications.

• The Spring Challenge – we set a goal and challenged the Albion team to get walking, cycling and running to hit the target.

• Portfolio focused on long term growth trends

• healthcare

• software technologies and data proliferation

• education and skills

• sustainable energy generation

• Low exposure to discretionary consumer facing sectors

AGENDA9.0 Prospects


• The on-going economic impact of Covid-19 is unknown however, the portfolio is well balanced across sectors and risk

• A number of companies in the portfolio including Quantexa, Egress and Proveca are thriving despite Covid-19 which have the potential for further valuation uplifts

• Pipeline of new investments and further investments in existing portfolio companies

• First dividend of 0.60p per share paid on 30 April 2021

• 31 March 2021 NAV of 22.30p has just been announced representing a 2.1% quarterly uplift on NAV

AGENDA10.2 Prospects


AGENDA10. Fraud Warning


Please be aware that shareholders are sometimes contacted in connection with increasingly sophisticatedbut fraudulent financial scams. Shareholders are contacted by a phone call or an email which normallyoriginates from outside of the UK, often claiming or appearing to come from a corporate finance firm. Thecaller or emailer may sound professional and will typically offer to buy your VCT shares at an inflated pricein connection with a possible take-over of that VCT and ask you to sign a non-disclosure agreement.

Websites referred to in documents or emails appear, at first glance, to belong to credible corporate financefirms. The claims made are false and are invariably an attempt to obtain more information from you with aview to extracting money. If you are contacted, we recommend that you do not respond with any personalinformation and say you are not interested. Your contact information has not been passed on by us. Wemaintain a page on our website in relation to fraud advice: www.albion.capital/investor-centre/fraud-advice

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 Kings Arms Yard VCT PLC. Any person considering an investment should seek

advice from an authorised financial advisor.

Albion Capital Group LLP does not offer investment advice or make investment recommendations, nor offer tax advice and nothing in this presentation should be considered investment or tax advice.

Past performance is not necessarily a guide to the future. The value of an investment and any income can go down as well as up and the amount originally invested may not be returned.

This presentation has been approved and issued by Albion Capital Group LLP, which is authorised and regulated by the Financial Conduct Authority.


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