| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 179.86 | 350 |
| Intrinsic value (DCF) | 17.28 | -57 |
| Graham-Dodd Method | n/a | |
| Graham Formula | 22.64 | -43 |
Albion Venture Capital Trust PLC (AAVC.L) is a UK-based venture capital trust (VCT) listed on the London Stock Exchange, specializing in early-stage investments in healthcare and environmental sectors. The company operates under strict investment criteria, avoiding property, financial services, and agricultural sectors, while focusing on small and medium-sized enterprises (SMEs) with gross assets under £16 million. AAVC structures its investments as a mix of equity and loan stock, typically holding a 50% stake in portfolio companies and maintaining a five-year investment horizon. The trust collaborates with sector-experienced partners and avoids external borrowings in its portfolio companies, except for its own loan stock. As part of the UK's VCT scheme, Albion Venture Capital Trust PLC offers tax-efficient investment opportunities, targeting long-term capital growth and income through dividends, making it an attractive option for investors seeking exposure to innovative UK SMEs in high-growth sectors.
Albion Venture Capital Trust PLC presents a niche investment opportunity within the UK's venture capital landscape, appealing to investors seeking tax-efficient returns and exposure to early-stage healthcare and environmental companies. The trust's focus on SMEs with limited external borrowings and structured loan-equity investments mitigates some risk, but its concentrated sector exposure and reliance on the UK's VCT tax incentives introduce regulatory and market-specific risks. Recent financials show negative revenue and net income, reflecting the inherent volatility of venture capital investments. However, a dividend yield of 1.12 GBp per share and a cash reserve of £15.8 million provide some income stability. The trust's low beta (-0.086) suggests low correlation with broader markets, potentially offering diversification benefits, but investors should weigh the illiquidity and long-term nature of its portfolio against their investment horizon.
Albion Venture Capital Trust PLC competes in the UK's venture capital trust market, differentiating itself through a strict sector focus (healthcare and environmental) and a structured investment approach combining equity and loan stock. Its competitive advantage lies in its adherence to the VCT scheme's tax benefits, attracting investors seeking tax-efficient returns. The trust's hands-on investment strategy, including partnerships with sector experts and majority loan stock positions, provides control over portfolio companies while limiting external debt risks. However, its narrow sector focus and SME-centric mandate limit diversification compared to broader VCTs or private equity funds. The absence of external borrowings in portfolio companies reduces financial risk but may constrain growth potential. AAVC's £53.66 million market cap positions it as a mid-sized player in the VCT space, where scale often correlates with diversification and resource access. Its performance is highly dependent on the success of UK SMEs in healthcare and environmental sectors, making it vulnerable to sector-specific downturns or regulatory changes affecting VCT tax incentives.