| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 56.35 | -15 |
| Intrinsic value (DCF) | 27.78 | -58 |
| Graham-Dodd Method | 1.14 | -98 |
| Graham Formula | 2.34 | -96 |
Albion Technology & General VCT PLC (AATG.L) is a UK-based Venture Capital Trust (VCT) specializing in investments across technology and non-technology sectors. Listed on the London Stock Exchange, the company focuses on early-stage and growth-stage UK businesses, adhering to strict investment criteria, including avoiding property, financial services, and agricultural sectors. Albion allocates 50% of its assets to global quoted technology stocks and the remaining to unquoted UK companies, split between tech (40%) and non-tech (60%) segments. The firm targets companies with gross assets under £15 million pre-investment and £16 million post-investment, ensuring compliance with UK state-aided risk capital schemes. As a VCT, Albion offers tax-efficient returns to investors, making it an attractive option for those seeking exposure to high-growth UK SMEs while benefiting from government-backed incentives. Its diversified approach mitigates sector-specific risks while capitalizing on innovation-driven opportunities.
Albion Technology & General VCT PLC presents a compelling opportunity for tax-advantaged investors seeking exposure to UK small-cap growth companies. The trust's dual focus on technology and non-tech sectors provides diversification, while its strict investment criteria mitigate excessive risk. With a solid net income of £11.4 million (11428000 GBp) and a dividend yield supported by a £3.68 per share payout, the fund appeals to income-focused investors. However, the negative beta (-0.092) suggests low correlation with broader markets, which may limit upside during bull runs. The lack of debt and substantial cash reserves (£47.8 million) indicate financial stability, but the negative operating cash flow (-£1.17 million) warrants monitoring. Given its niche as a VCT, regulatory changes to tax relief schemes pose a key risk.
Albion Technology & General VCT PLC operates in a specialized segment of the UK asset management industry, combining venture capital expertise with tax-efficient VCT structuring. Its competitive edge lies in its disciplined sector allocation, balancing high-growth technology investments with stable non-tech exposure. The £15–16 million asset limit for portfolio companies ensures focus on underserved SME opportunities, avoiding overcrowded late-stage markets. Unlike generalist VCTs, Albion’s tech-heavy global quoted portfolio provides liquidity and diversification, while its unquoted UK investments align with government-backed growth initiatives. However, its reliance on UK SMEs exposes it to regional economic volatility and Brexit-related uncertainties. Competitors often prioritize either pure-tech or diversified non-tech strategies, whereas Albion’s hybrid model offers a unique value proposition. The absence of leverage enhances resilience but may limit scalability compared to leveraged peers. Its tax-efficient structure is a key differentiator, though regulatory dependence on VCT incentives introduces policy risk.