TIDMFTV
FORESIGHT VCT PLC
Final Results
31 December 2017
Foresight VCT plc, managed by Foresight Group CI Limited, today
announces the final results for the year ended 31 December 2017.
These results were approved by the Board of Directors on 10 April 2018.
The Annual Report will shortly be available in full at
www.foresightgroup.eu. All other statutory information can also be found
there.
Highlights
Ordinary Shares fund
-- Diversified portfolio of 29 actively managed investments.
-- Total net assets GBP140.4 million.
-- Net Asset Value per Ordinary Share increased by 6.5% from 83.6p (31
December 2016) to 89.0p including dividends. A 5.0p dividend was paid on
3 April 2017 and a 4.0p dividend was paid on 29 September 2017,
resulting in a NAV of 80.0p as at 31 December 2017.
-- The portfolio has seen an uplift in valuation of GBP11.7 million
during the year.
-- Eight new investments, totalling GBP17.6 million and two follow-on
investments totalling GBP0.3 million made during the year.
-- A total of GBP39.9 million raised through the issue of shares and the
offer closed in March 2017, six weeks after launch.
-- In July 2017 the Company successfully sold Blackstar Amplification,
Simulity Labs and The Bunker Secure Hosting, realising a total of
GBP16.9 million compared to an investment cost of GBP8.0 million.
-- The Board is pleased to declare an interim dividend for the year
ending 31 December 2018 of 5.0p per Ordinary Share, to be paid on 4 May
2018.
Planned Exit Shares fund
-- Following the sale of AlwaysON in January 2017 and Industrial
Engineering Plastics in July 2017, the Fund has now realised all its
investments.
-- An interim dividend for the year ended 31 December 2017 of 18.0p per
Planned Exit Share was paid on 13 April 2017.
-- A second interim dividend of 7.71p per Planned Exit Share was paid on
29 December 2017, resulting in a total return for Shareholders of
82.71p.
-- The Planned Exit Shares were removed on 24 January 2018 following a
General Meeting held on 23 January 2018.
Infrastructure Shares fund
-- Following the sale of all 11 infrastructure assets in the portfolio,
the Fund has now realised all its investments.
-- An interim dividend of 93.05p per Infrastructure Share was paid on 29
December 2017, resulting in a total return for Shareholders of 115.05p.
-- The Infrastructure Shares were removed on 24 January 2018 following a
General Meeting held on 23 January 2018.
Chairman's Statement
I am delighted to present the Audited Annual Report for Foresight VCT
plc for the year ended 31 December 2017. The past year has seen some
very significant development of the Company, including the effective
completion of the wind-down of both the Planned Exit and Infrastructure
Share classes. During December 2017, I provided shareholders with
detailed information on the wind-down, which was approved at a General
Meeting. Subsequently both the Planned Exit and Infrastructure Share
classes were removed in January this year. As a consequence, whilst some
final details relating to these share classes are contained later in
this statement, I intend to concentrate on the performance of the
Ordinary Shares Fund, which will form the continuing share class of the
Company.
ORDINARY SHARES FUND
The Directors, together with the Manager, have an agreed long term
strategy for the Fund which includes the following four key objectives:
-- Increasing and then maintaining the net assets significantly above
GBP150 million
-- Paying an annual dividend to shareholders of at least 5.0p per
Ordinary Share and endeavouring to maintain, or increase, NAV per
Ordinary Share year on year
-- Completing a significant number of new and follow on qualifying
investments every year
-- Offering a programme of regular share buy backs at a discount in the
region of 10% to the prevailing NAV.
For this and future statements, I intend to focus on performance in
relation to these key objectives.
NET ASSET VALUE
Following a successful fundraising period at the end of the 2016/17 tax
year, the net assets of the Ordinary Shares Fund increased to GBP140.4
million as at 31 December 2017, from GBP107.0 million as at 31 December
2016. It remains the Board's belief that to support the other key
objectives, it would be beneficial to increase the Fund's net assets
over the coming years. With some GBP61 million of funds currently
available for investment, however, it is not the Board's intention to
raise more money in the near future.
During the year ended 31 December 2017 the net asset value ("NAV") per
Ordinary Share rose by 5.4p, representing an annual increase of 6.5%.
After deducting the dividends of 9.0p per share paid during the year,
NAV per Ordinary Share as at 31 December 2017 was 80.0p compared with
83.6p as at 31 December 2016.
DIVIDS
In line with the objective of paying regular annual dividends of at
least 5p per share, an interim dividend of 5.0p per Ordinary Share was
paid on 3 April 2017 based on an ex-dividend date of 16 March 2017, with
a record date of 17 March 2017.
Following successful sales of several portfolio investments, in
particular Simulity Labs in July 2017, a second interim dividend of 4.0p
per Ordinary Share was paid on 29 September 2017 based on an ex-dividend
date of 14 September 2017, with a record date of 15 September 2017.
The Board is pleased to declare an interim dividend for the year ending
31 December 2018 of 5.0p per Ordinary Share, to be paid on 4 May 2018
based on an ex-dividend date of 19 April 2018, with a record date of 20
April 2018.
The Board notes that the Company has achieved its target of paying an
annual dividend of at least 5p per share for each of the past seven
years. During this period, however, the total return per Ordinary Share
has remained relatively static, rising 5.4% from 207.5p per share on 1
January 2011 to 218.7p per share at 31 December 2017. It is this
performance which the Board wishes to improve in future years.
INVESTMENT PERFORMANCE AND PORTFOLIO ACTIVITY
A detailed analysis of the investment portfolio performance over the
past year is given in the Manager's Review. At the year end, the Fund
held a diversified portfolio of qualifying investments in UK businesses,
across a broad range of sectors.
The Board believes it is important for the long term performance of the
Fund to identify a regular flow of new investments. The Manager
completed eight new investments for the Fund during 2017. These new
investments absorbed GBP17.6 million of funds held for investment and
reflects the Manager's success in sourcing attractive growth capital
investments in qualifying companies. The Board closely monitors the
extent and nature of the pipeline of investment opportunities and
anticipates that the Manager will be able to increase the level of new
investments during 2018.
In July 2017, the Fund successfully sold three investments, generating
total proceeds of GBP16.9 million compared to an original total
investment cost of GBP8.0 million and a combined book value at date of
disposal of GBP11.6 million. The sale of Simulity Labs is particularly
pleasing since, after an investment period of only eight months, it
generated a return of almost three times cost, with disposal proceeds of
GBP11.4 million compared to an original investment cost of GBP4 million.
In addition, following our year end, the deferred consideration for
Simulity was received in full, generating a further GBP0.3m.
Since the end of the year, the Fund has sold ICA, generating proceeds of
GBP1.3 million compared to an original investment cost of GBP0.9
million.
FUNDRAISING
The Board took the opportunity to raise new funds in the Ordinary Shares
Fund at the start of 2017. In just six weeks, GBP39.9 million of new
capital was raised from new and existing shareholders. On behalf of the
Board and the Manager, I would like to thank shareholders for their
support. We believe that this demonstrates the improving investor
support for the Ordinary Shares Fund and will assist the Fund to achieve
its key objectives.
The Board appreciates that in order for the Fund to be able to achieve
its key objectives, the Manager needs to source and complete attractive
new qualifying investment opportunities. Over the past two calendar
years, new investments have amounted to GBP22.4 million and at 31
December 2017, the Fund held GBP62 million of funds available for
investment. After allowing for a cash margin to meet annual operating
requirements, the Board and the Manager believe that the Fund is well
positioned to take advantage of attractive investments being sourced
across the UK by the Manager for at least the coming 24 months.
BUYBACKS
During the year, the Company repurchased 2 million Ordinary Shares for
cancellation at an average discount of 10.1%. The Board and the Manager
consider that the ability to offer to buy back Ordinary Shares at a
target discount in the region of 10% is fair to both continuing and
selling shareholders, and is an appropriate way to help underpin the
discount to NAV at which the Ordinary Shares trade.
MANAGEMENT CHARGES, CO-INVESTMENT AND INCENTIVE ARRANGEMENTS
The annual management fee on the Ordinary Shares Fund is an amount equal
to 2.0% of net assets, excluding cash balances above GBP20 million which
are charged at a reduced rate of 1.0%. This has produced an ongoing
charges ratio for the year ended 31 December 2017 of 2.2% of net assets,
which is among the lower when compared to competitor VCTs.
The Board believes it to be advantageous to align, as far as may be
practical, the interests of the Manager with those of shareholders. To
that end, new co-investment and incentive arrangements were approved by
shareholders on 8 March 2017. These oblige Foresight Group and
individual members of their private equity team to co-invest alongside
the Ordinary Shares Fund in exchange for entitlement to performance
incentive payments, which are subject to the achievement of 'per
investment' and 'fund as a whole' performance hurdles. Details of these
arrangements can be found in note 14 to the accounts.
Since March 2017, co-investments have totalled GBP0.3 million alongside
the Company's investment of GBP16.5 million. Currently the 'fund as a
whole' threshold has not been achieved and no incentive payment is due.
OUTLOOK
The Board and the Manager intend to continue to build on the progress
achieved during 2017. We believe that the investments currently held
within the Fund should grow further through 2018 and that the current
pipeline will provide worthwhile new investment opportunities in the
months ahead. Provided the current level and quality of new investment
is maintained, the Board believes that the Fund will be well positioned
to meet its key objectives, providing shareholders with regular
dividends and maintained capital growth.
PLANNED EXIT SHARES FUND
Following the full realisation of the Fund's assets, a dividend of 7.71p
per Planned Exit Share was paid on 29 December 2017 based on an
ex-dividend date of 21 December 2017, with a record date of 22 December
2017. This brought the Fund's total return for Shareholders to 82.71p,
which represents a decrease of 0.2% on the total return per Planned Exit
Share as at 31 December 2016 of 82.9p.
The original objective of the Planned Exit Shares Fund was to provide
investors with a return of 110p per share through a combination of
dividends and share buybacks by the sixth anniversary of the closure of
the original offer, due in June 2016. The final outcome for Planned Exit
Shareholders was very far from that anticipated at its inception. The
reasons have been summarised in previous annual reports during the life
of the Fund. Both the Board and the Manager recognise that the final
return represented poor overall performance and regret that this was
significantly behind the original target.
INFRASTRUCTURE SHARES FUND
Following the full realisation of the Fund's assets, a dividend of
93.05p per Infrastructure Share was paid on 29 December 2017 based on an
ex-dividend date of 21 December 2017, with a record date of 22 December
2017. This brought the Fund's total return for Shareholders to 115.05p,
which represents an increase of 10.9% on the total return per
Infrastructure Share as at 31 December 2016 of 103.7p. While behind the
return objectives contained in the original prospectus, the Board
believes the overall performance of the Infrastructure Shares Fund to be
reasonable, particularly when viewed against the background of
significant changes in both market conditions and VCT qualification
rules during the life of the Fund.
This total return is net of a performance incentive fee paid to the
Manager in accordance with the arrangements set out in the prospectus.
Details of these arrangements can be found in note 14 to the accounts.
BOARD COMPOSITION
The Board regularly reviews its own performance and undertakes
succession planning to maintain an appropriate level of independence,
experience and skills in order for it to be in a position to discharge
its responsibilities. Peter Dicks, a founder member of the Board and a
past Chairman, has served the Company with great commitment and
distinction throughout this period. He has, however, decided to retire
at this year's Annual General Meeting.
After commissioning an independent professional search, the Board was
delighted to secure the services of Margaret Littlejohns as a Director
of the Company. Margaret, who was appointed a Non-Executive Director of
the Company in October last year, is an experienced fund director. She
currently sits on the Boards of the Henderson High Income Trust,
JPMorgan Mid Cap Investment Trust and UK Commercial Property Trust. Her
earlier career was largely with Citigroup followed by a period from 2004
during which, with her husband, she set up and ran a self storage
business which she successfully sold in 2016. A short biography of each
of the Directors is contained on pages 32 to 34 of the accounts.
ANNUAL GENERAL MEETING
The Company's Annual General Meeting will take place on 22 May 2018 at
2.00pm. I look forward to welcoming you to the Meeting, which will be
held at the offices of Foresight Group in London. Details can be found
on page 78 of the accounts.
John Gregory
Chairman
Telephone 01296 682751
Email: j.greg@btconnect.com
10 April 2018
Manager's Review
ORDINARY SHARES FUND
Portfolio Summary
As at 31 December 2017 the portfolio of the Ordinary Shares Fund
comprised 36 investments with a total cost of GBP65.6 million and a
valuation of GBP78.0 million. The portfolio is diversified by sector,
transaction type and maturity profile. Details of the ten largest
investments by valuation, including an update on their performance, are
provided on pages 16 to 20 of the accounts.
The main reason for the difference between the cost and value of
investments in the TMT sector is Autologic, with a cost of GBP3.8
million. In July 2017, the sale of Autologic's operating subsidiaries
was agreed with Opus Group AB of Sweden. Although healthy returns were
achieved in the early years of this investment, since a part disposal in
2012 the performance has been disappointing. Following repayment of some
loans during 2017 Autologic is now valued at nil and will be dissolved
in due course.
The value of investments in the Industrials & Manufacturing sector is
much greater than cost largely due to Aquasium, which is valued at
GBP4.0 million against a cost of GBP0.3 million and Specac, valued at
GBP3.8 million against a cost of GBP1.3 million.
NEW INVESTMENTS AND FOLLOW-ON FUNDING
It has been an active year for the Ordinary Shares fund, having
completed new investments in eight companies and two follow-on
commitments, totalling GBP17.9 million. During the second half of the
year, the fund added three new portfolio companies: 200 Degrees, an
artisan coffee chain and roasting business; Nano Interactive, a leading
advertising technology business and Powerlinks Media, a realtime trading
platform for advertisements. These new investments are in addition to
those reported at the half year: Poundshop.com; Ollie Quinn; Fresh
Relevance; Cinelabs and Mowgli Street Food. A summary on each is
provided on the next page.
As follow-on investments, in July 2017 a further tranche of GBP224,723
was invested in molecular diagnostics business Biofortuna as part of a
GBP900,000 funding round alongside Foresight 4 VCT plc and co-investors
to further develop its blood typing products. In October 2017, the Fund
committed GBP34,159 of additional growth capital to Idio as part of a
GBP543,000 equity raise from existing investors.
POUNDSHOP.COM
The first investment of 2017 was a GBP1.7 million growth capital
investment in Poundshop.com. Launched in February 2014, Poundshop.com is
an online-only single price retailer, founded and chaired by Steve Smith,
the founder of Poundland. Since investment, sales have increased, the
company has launched a new website and moved to a new, larger warehouse
which has enabled it to increase the number of items stocked.
OLLIE QUINN
In March 2017, a GBP3.0 million investment was completed in Ollie Quinn,
a branded retailer of prescription glasses, sunglasses and
non-prescription polarised sunglasses. Following a period of rapid
growth, follow-on funding of GBP650k was provided in January 2018 to
support the company's working capital and current site optimisation
strategy. Due to slower than projected revenue growth and an earlier
than forecast follow-on funding requirement, a 25% provision has been
made against the cost of this investment at 31 December 2017.
FRESH RELEVANCE
The third investment, of GBP2.1 million, was completed in Fresh
Relevance, a mail marketing and web personalisation platform, in March
2017. Based in Southampton, Fresh Relevance is a high growth, marketing
technology business, providing online retailers with marketing tools
including triggered emails and web personalisation. The capital will be
used to fund increased sales resource, launch a US office and introduce
a higher level of service and consultancy, all of which should help
increase average order values. Progress to date is positive.
MOWGLI STREET FOOD
The Fund also invested GBP1.6 million in Mowgli, a fast-casual chain of
restaurants founded in 2014, serving Indian street food. Since
investment, Mowgli has traded well, opening a new site in Birmingham,
and is planning a fifth branch for Q1 2018. The modern focus on healthy,
light, flavoursome dishes differentiates Mowgli from traditional Indian
restaurants, as does its provision of a wide range of gluten-free,
vegetarian and vegan dishes. This is the first investment alongside the
Foresight Regional Investment LP, a GBP40 million institutional private
equity fund. The LP funded the replacement capital element of the
transaction, which the Fund, under the rules changes introduced in 2015,
was unable to provide.
CINELABS
The Fund has invested GBP2.2 million in Cinelabs, which is the UK's only
full-service film laboratory, offering film processing, scanning,
distribution, digitisation, restoration and archive management to
clients in the media and entertainment industries such as the BFI, ITV
and FIFA. Sales increased during 2017, reflecting good growth of the
underlying client base, and the pipeline for 2018 looks promising.
NANO INTERACTIVE
In October 2017, the Fund invested GBP3.4 million of growth capital in
Nano Interactive. The company, founded in 2014 by two experienced
advertising technology executives, is engaged in search retargeting; a
form of online advertising where relevant adverts are shown to users
based on key words from their recent search history. The company uses
its proprietary data management platform to optimise search campaigns
for its global customer base. The funding will support plans to expand
internationally and invest in sales, marketing and product development,
as well as the roll-out of its INSIST platform.
200 DEGREES
In November 2017, GBP0.9 million was invested in 200 Degrees Holdings to
support its growth plans. 200 Degrees was initially established as a
supplier of coffee beans and machines. The company has since evolved
into a wholesale business and coffee chain, with a Barista School and a
total of six coffee shops across five cities. The investment will
support the management team in opening new stores, while building the
company's wholesale business. Since investment, performance has been
driven by strong trading at a number of stores and operational
improvements at newer sites.
POWERLINKS MEDIA
The final investment of 2017 was a GBP2.7 million investment in
Powerlinks Media, an advertising technology company, in December 2017.
Unlike traditional digital adverts, PowerLinks ads are visually styled
to align with the surrounding webpage or mobile app, delivering a
non-intrusive, "native" user experience. The investment follows a year
of success and expansion, which has seen PowerLinks' market surpass
4,000 advertising campaigns from 140 connected advertisers, driving
revenue growth. The investment is intended to accelerate PowerLinks'
expansion in the US, with planned additions across the sales, client
services and technology teams.
PIPELINE
Foresight Group continues to work hard to develop and deliver attractive
investment opportunities for the Company. Foresight Group's private
equity team has strong connections within the community of businesses,
advisors and professional service firms, which have been further
bolstered through the recent recruitment of Matthew Evans-Young,
previously at Synova Capital and KPMG, as an Origination Manager.
Matthew will lead on the establishment of a dedicated direct origination
practice within Foresight Group's private equity team. By proactively
contacting target companies, this initiative aims to deliver exclusive
access to new deals. Foresight Group's dedicated direct origination
resource is already having a positive impact on the level and
consistency of the teams' origination efforts with an increase in off
market opportunities being seen. Whilst this is a long-term investment
and off market opportunities generally take longer to convert, it is
encouraging to see this strategy begin to produce results.
Foresight Group is firmly established as a key player in the investment
range of GBP1 million to GBP5 million and is acknowledged for its
appetite to transact and support ambitious SME management teams. The
team typically analyses around 100 new investment opportunities each
month, of which only a handful will be deemed of sufficient quality to
require full evaluation for a potential investment.
As at 31 December 2017, the Ordinary Shares Fund had GBP61.9 million in
cash and money market funds. This will be utilised for new and follow-on
investments, as well as buybacks and ongoing running expenses.
REALISATIONS
During the year to 31 December 2017, the Fund generated total proceeds
of GBP18.2 million, principally through the sale of Simulity Labs,
Blackstar Amplification and The Bunker Secure Hosting, which realised
GBP16.9 million compared to a cost of GBP8.0 million.
Loan repayments contributed a total of GBP547,748 from Autologic
Diagnostics Group and the final loan repayment of GBP166,667 made by
Aquasium Technology. The Fund continues to hold an equity position in
Aquasium, which manufactures, services and refurbishes electron beam
welding equipment and vacuum furnaces. Proceeds were also received from
the sale of the Fund's remaining shares in AIM-listed ZOO Digital, which
supplies software and services for authored content and subtitling to
media businesses and post-production firms. Deferred consideration was
also received from the sales of O-Gen Acme Trek and Trilogy in 2016, and
Alaric Systems in 2013.
During the year, the Ordinary Shares fund realised losses amounting to
GBP2.3 million, which had already been provided for in full, following
the liquidation of Abacuswood and The Skills Group, and the disposal of
AlwaysOn Group.
SIMULITY
In July 2017 the Manager successfully completed the sale of Simulity
Labs to ARM, the world's leading semiconductor IP company. The
transaction generated proceeds of GBP11.7 million (including deferred
consideration) from an initial GBP4.0 million investment just eight
months previously. Established in 2009, Simulity provides embedded
communications software and related server systems for both SIM cards
and embedded SIMs ('eSIMs'). Since investment in October 2016, Simulity
successfully transitioned to a software licensing business model,
launched its eSIM technology, increased valuable recurring revenue
streams, improved gross margins materially and grew its international
sales presence, making the company an attractive acquisition target.
BLACKSTAR
The Fund originally invested in Blackstar Amplification, an
award-winning Northampton-based designer and manufacturer of innovative
guitar amplifiers, in 2012. The Fund provided growth capital and helped
restructure the company's shareholder base and strengthened its
management team. Blackstar more than doubled turnover over four years,
expanded internationally, establishing itself as the number two
amplifier brand in the UK and USA and broadened its product catalogue.
The sale was implemented by a management buyout, supported by the
company's manufacturing and distribution partners, and nearly doubled
the Fund's original investment.
THE BUNKER
The Fund acquired its investment in The Bunker from Foresight 2 VCT plc
as part of the merger in December 2015. Having first invested in May
2006, the Foresight VCTs have been longstanding shareholders in The
Bunker, which builds, hosts and manages high security, high availability
IT data centres, providing competitive data storage solutions. The
growth capital provided by the Foresight VCTs was used to materially
scale The Bunker's data storage facilities. The business experienced a
compound annual growth rate of over 14% of recurring revenues for the
past three years with annual revenues growing to more than GBP9 million
compared to GBP1.8 million at investment. The Bunker was acquired by
Palatine Private Equity, generating an overall return of 2.44 times over
the life of the investment.
ICA
Post-year end, in February 2018, the Fund realised its position in ICA
Digital ("ICA"), a managed print services business based in Surrey,
realising an overall 2.4 times return, through a trade sale to ASL
Group. During the course of the investment, Foresight Group supported
management to execute a focused sales strategy, in particular developing
high-margin contracted service revenues.
The Manager continues to engage with a range of potential acquirers of
several portfolio companies, with demand for these high growth
businesses demonstrated by both private equity and trade buyers.
DISPOSALS IN THE YEARED 31 DECEMBER 2017
Original Cost/ Take-On Value Proceeds Realised (Loss)/Gain Valuation at 31 December 2016
Company Detail (GBP) (GBP) (GBP) (GBP)
Abacuswood Limited Dissolved Full 478,684 - (478,684)^ -
AlwaysON Group Limited disposal 1,473,271 - (1,473,271)^ -
Aquasium Technology
Limited Loan repayment 166,667 166,667 - 166,667
Autologic Diagnostics Loan repayment 547,748 547,748 - 547,748
Group Limited
Blackstar Amplification Full disposal 2,500,000 3,857,000 1,357,000 3,822,050
Holdings Limited
Simulity Labs Limited Full disposal 4,000,000 11,410,920* 7,410,920 4,000,000
The Bunker Secure
Hosting Full disposal 1,537,348 1,680,684 143,336 1,656,835
Limited
The Skills Group Limited
(formerly AtFutsal) Dissolved 391,301 563 (390,738)^ -
ZOO Digital Group plc Full disposal 40,307 57,675 17,368 53,742
Total disposals 11,135,326 17,721,257 6,585,931 10,247,042
In addition to the above, deferred consideration of GBP199,106 was
received by the Fund from the sale of O-Gen Acme Trek Limited, GBP24,003
was received from the sale of Trilogy and GBP280,499 was received from
the sale of Alaric Systems.
^This loss refers to the transfer on disposal between unrealised and
realised reserves and has no impact on NAV in the current year.
* Does not reflect an additional GBP257,846 deferred consideration
received in February 2018.
POST YEAR DISPOSALS
Valuation
at 31
Realised December
Original Cost/ Take-On Value Proceeds Gain/(Loss) 2016
Company Detail (GBP) (GBP) (GBP) (GBP)
ICA
Group Full
Limited disposal 885,232 1,290,701* 405,469 880,894
*Including deferred consideration due in April 2018.
KEY PORTFOLIO DEVELOPMENTS
The Ordinary Shares Fund has benefitted from strong performance of the
underlying portfolio with a total net valuation change of GBP12.0
million, driven primarily by the agreed sale of Simulity Labs at a value
GBP7.7 million above cost, as detailed above. The valuation of the
Company's largest investment, Datapath, fell by GBP1.6 million but
remains significantly above book cost. The reduction is due to ongoing
investment in the business, as detailed further on page 16 of the
accounts, which we believe will support further a long-term increase in
value. Material changes in valuation, defined as an increase or decrease
of GBP1 million or more since 31 December 2016, are detailed in the
table below. Where these companies do not appear in the Top Ten
Investments section of the report, an update on underlying developments
that have driven changes in value is provided below.
Company Valuation Methodology Valuation Change (GBP)
Simulity Labs Limited Sold 7,410,920
Discounted revenue
Ixaris Systems Limited multiple 2,234,435
Aquasium Technology Discounted earnings
Limited multiple 1,980,168
Thermotech Solutions Discounted earnings
Limited multiple 1,602,958
Aerospace Tooling Holdings Discounted earnings
Limited multiple 1,069,807
Procam Television Holdings Discounted earnings
Limited multiple (1,635,609)
Discounted earnings
Datapath Group Limited multiple (1,628,430)
CoGen Limited Discounted cash flow (1,087,383)
THERMOTECH SOLUTIONS
Thermotech, which designs, installs and maintains customised air
conditioning and fire sprinkler systems, has performed well in the year,
with strong sales and an improvement in EBITDA. This has been
attributable to good performance across the Fire and Mechanical Services
divisions and the synergies that the company is now benefitting from
following the acquisition of Oakwood in 2016. The company has continued
to expand its portfolio of retail clients and won a number of sizeable
new contracts.
AEROSPACE TOOLING
Aerospace Tooling is an engineering company specialising in the
refurbishment of high-value aerospace and industrial gas turbine
components. The business has made a significant recovery, underlined by
supportive trade from industrial customers. Improvements in operational
performance are beginning to deliver favourable results.
COGEN
CoGen develops, builds, owns and operates waste to energy and combined
heat and power ('CHP') plants. During the year, the company sold its 20%
stake in Ince Park for a proposed consideration of GBP1.75m, however,
construction problems persist at Birmingham Bio Power plant. The plant
continued to experience downtime, reducing electrical output, and the
project company is now preparing for an arbitration process with the
construction contractor. This, together with increased costs on some
projects has led to a reduced valuation.
PROCAM TELEVISION
Procam Television is a leading broadcast hire company, supplying
equipment and crew for location TV production. The reduction in
valuation reflects a disappointing 2017 following a strong performance
in the prior year. Growth from Procam Projects and True Lens Services
failed to offset a softer year in some other divisions. This, together
with a significant investment in staff and equipment and financing
obligations, resulted in the business raising additional funding in
December 2017.
OUTLOOK
While there remains a significant amount of uncertainty as to how the UK
will be affected by its exit from the European Union, Foresight Group
continues to see a strong pipeline of interesting investment
opportunities and expressions of interest from potential acquirers of
portfolio companies.
In the Autumn Budget 2017 the Government announced a plan to unlock over
GBP20 billion of patient capital investment in innovative companies with
the opportunity for growth. The Government's response to the Patient
Capital Review recognises the positive role that VCTs play in providing
long term patient capital. The proposed adjustments to the VCT scheme
rules fall within the Fund's existing investment strategy.
Foresight Group will continue to monitor and adapt to market and
regulatory changes to ensure the Company and its portfolio is
well-placed to deliver returns to its investors.
PLANNED EXIT SHARES FUND
Portfolio Summary
Following the sale of the two final holdings, alwaysOn in January 2017
and Industrial Engineering Plastics in July 2017, the Fund realised all
of its portfolio investments. The Board completed the transfer of the
Trilogy Entitlements, the outstanding entitlement to consideration held
in escrow in respect of the sale of holdings in Trilogy Communications
Holdings Limited, to the Ordinary Shares fund in exchange for GBP265,712
on 6 December 2017. Deferred consideration of GBP57,329 was also
received in relation to the sale of Trilogy in 2016. This resulted in
the assets of the Planned Exit Shares fund being fully realised. The
Board paid a dividend of 7.71p per Planned Exit Share to shareholders on
the register as at 22 December
2017. Ignoring tax reliefs, this dividend payment brought the total
return on a Planned Exit Share to 82.71p.
Following approval of the requisite resolutions at the general meetings
and separate class meetings of the Company held on 23 January 2018 and
24 January 2018 respectively, the Board of the Company completed the
removal of the Planned Exit Shares.
ALWAYSON
alwaysON provides data backup services, connectivity and Microsoft's
Skype for Business collaboration software to SMEs and larger
enterprises. Given the company's cash constraints, a decision was made
to seek an exit rather than fund further losses. Despite challenging
trading conditions the sale was completed in January 2017, generating
proceeds of GBP2.0 million against an investment cost of GBP1.8 million.
INDUSTRIAL ENGINEERING PLASTICS
Industrial Engineering Plastics ("IEP") is a plastics distributor and
fabricator, supplying a wide range of industries with ventilation and
pipe fittings, plastic welding rods, hygienic wall cladding, plastic
tanks and sheets. In light of some of the structural challenges within
IEP's markets, the Manager pursued multiple conversations with potential
trade acquirers. As a result, two acquisition offers were received early
in 2017 before an offer with one of IEP's competitors was agreed at a
price marginally below the most recent valuation, and a loss against the
original investment of GBP1.6 million.
DISPOSALS IN THE YEARED 31 DECEMBER 2017
Original Valuation
Cost/ at 31
Take-On Realised December
Value Proceeds Gain/(Loss) 2016
Company Detail (GBP) (GBP) (GBP) (GBP)
AlwaysON
Group
Limited Full disposal 1,839,970 2,032,608 192,638 2,032,608
Industrial
Engineering
Plastics
Limited Full disposal 1,556,416 492,550 (1,063,866) 508,150
Total disposals 3,396,386 2,525,158 (871,228) 2,540,758
In addition to the above, deferred consideration of GBP323,041 was
received by the Fund from the sale of Trilogy in the year ended 31
December 2016.
INFRASTRUCTURE SHARES FUND
Portfolio Summary
Due to changes in VCT regulations, the Fund could no longer pursue its
investment strategy of investing in infrastructure assets, including
secondary Private Finance Initiatives ("PFI") assets and solar
infrastructure. As such, the Board notified shareholders of its
intention to dispose of the entire Infrastructure shares portfolio on 18
July 2017, shortly after the fifth anniversary of the Fund's closing.
Accordingly, a third party valuation was undertaken and we conducted a
marketing process for the 11 assets held in the Infrastructure Shares
Fund. After offering the assets on the open market, the sale of all
investments was achieved, realising GBP28.1 million against a cost of
GBP22.1 million and a valuation at 30 June 2017 of GBP24.8 million. Five
of the non-solar infrastructure investment assets were sold to funds
managed by Equitix Investment Management Limited. The three solar
investment assets and the remaining three non-solar infrastructure
investment assets were sold to other Foresight funds, on the basis of
the independent valuation.
On 15 December 2017, following the realisation of all the remaining
investments, the Board declared a final dividend of 93.05p per
Infrastructure Share. This was paid on the 29 December 2017, bringing
the total return per Infrastructure Share to 115.05p, after which no
value remained in the Infrastructure Shares.
Following approval of the requisite resolutions at the general meetings
and separate class meetings of the Company held on 23 January 2018 and
24 January 2018 respectively, the Board of the Company completed the
removal of the Infrastructure Shares.
DISPOSALS IN THE YEARED 31 DECEMBER 2017
Original Cost/
Take-On Value Proceeds Realised Gain/(Loss) Valuation at 31 December 2016
Company Detail (GBP) (GBP) (GBP) (GBP)
Criterion
Healthcare
Holdings Full
Limited disposal 4,005,616 5,705,000 1,699,384 4,878,473
FS Hayford Full
Farm Limited disposal 3,660,070 4,613,371 953,301 3,994,205
FS Ford Farm Full
Limited disposal 3,952,524 4,052,195 99,671 3,691,083
Drumglass
HoldCo Full
Limited disposal 2,526,475 3,064,632 538,157 3,025,435
FS Tope Full
Limited disposal 2,561,418 2,812,353 250,935 2,793,924
Stirling
Gateway HC Full
Limited disposal 2,069,978 3,322,000 1,252,022 2,244,070
Wharfedale SPV
(Holdings) Full
Limited disposal 1,314,923 1,537,278 222,355 1,395,225
Lochgilphead
HoldCo Full
Limited disposal 493,186 1,416,772 923,586 637,969
Staffordshire
HoldCo Full
Limited disposal 1,041,077 667,269 (373,808) 454,860
Sandwell
HoldCo Full
Limited disposal 282,646 619,525 336,879 216,332
Stobhill
HoldCo Full
Limited disposal 231,987 337,974 105,987 193,738
Total disposals 22,139,900 28,148,369 6,008,469 23,525,314
Russell Healey
Head of Private Equity
Foresight Group
10 April 2018
Unaudited Non-Statutory Analysis of the Share Classes
Income Statements
for the year ended 31 December 2017
Ordinary Shares Fund Planned Exit Shares Fund Infrastructure Shares Fund
Revenue Capital Total Revenue Capital Total Revenue Capital Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Realised
gains/(losses)
on
investments - 7,090 7,090 - (548) (548) - 6,008 6,008
Investment
holding
gains/(losses) - 4,886 4,886 - 606 606 - (1,385) (1,385)
Income 614 - 614 4 - 4 952 - 952
Investment
management
fees (654) (1,963) (2,617) (7) (22) (29) (68) (1,066)* (1,134)
Other expenses (521) - (521) (42) - (42) (636) - (636)
(Loss)/return
on ordinary
activities
before
taxation (561) 10,013 9,452 (45) 36 (9) 248 3,557 3,805
Taxation - - - - - - - - -
(Loss)/return
on ordinary
activities
after
taxation (561) 10,013 9,452 (45) 36 (9) 248 3,557 3,805
Return per
share (0.3)p 6.0p 5.7p (0.4)p 0.3p (0.1)p 0.8p 10.9p 11.7p
*Includes GBP863,000 paid performance incentive fee.
Balance Sheets
at 31 December 2017
Ordinary Planned Exit Infrastructure
Shares Fund Shares Fund Shares Fund
GBP'000 GBP'000 GBP'000
Fixed assets
Investments held at fair value
through profit or loss 77,963 - -
Current assets
Debtors 887 - -
Money market securities and other
deposits 60,482 - -
Cash 1,388 21 108
62,757 21 108
Creditors
Amounts falling due within one
year (291) (21) (108)
Net current assets 62,466 - -
Net assets 140,429 - -
Capital and reserves
Called-up share capital 1,756 114 324
Share premium account 97,687 - -
Capital redemption reserve 451 3 1
Distributable reserve 26,505 815 (4,151)
Capital reserve 1,357 (932) 3,826
Revaluation reserve 12,673 - -
Equity shareholders' funds 140,429 - -
Number of shares in issue 175,601,977 11,404,314 32,495,246
Net asset value per share 80.0p 0.0p 0.0p
Reconciliations of Movements in Shareholders' Funds
for the year ended 31 December 2017
Called-up Capital
share redemption Distributable
capital Share premium account reserve reserve Capital reserve Revaluation reserve Total
Ordinary Shares Fund GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
As at 1 January 2017 1,280 96,071 431 5,247 (3,770) 7,787 107,046
Share issues in the
year 496 42,110 - - - - 42,606
Expenses in relation to
share issues* - (1,718) - - - - (1,718)
Repurchase of shares (20) - 20 (1,476) - - (1,476)
Cancellation of share
premium - (38,776) - 38,776 - - -
Realised gains on
disposal of
investments - - - - 7,090 - 7,090
Investment holding
gains - - - - - 4,886 4,886
Dividends paid - - - (15,481) - - (15,481)
Management fees charged
to capital - - - - (1,963) - (1,963)
Revenue loss for the
year - - - (561) - - (561)
As at 31 December 2017 1,756 97,687 451 26,505 1,357 12,673 140,429
*Expenses in relation to share issues include advisor fees (GBP686,000)
and promoters fees (GBP958,000) for the 2017 fund raise and trail
commission in relation to prior year fund raises (GBP74,000).
Called-up Capital
share redemption Distributable
Planned Exit capital Share premium account reserve reserve Capital reserve Revaluation reserve Total
Shares Fund GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
As at 1 January
2017 114 2,095 3 1,705 (362) (606) 2,949
Trail
commission in
relation to
prior year
share issues - (8) - - - - (8)
Cancellation of
share premium - (2,087) - 2,087 - - -
Realised losses
on disposal of
investments - - - - (548) - (548)
Investment
holding gains - - - - - 606 606
Dividends paid - - - (2,932) - - (2,932)
Management fees
charged to
capital - - - - (22) - (22)
Revenue loss
for the year - - - (45) - - (45)
As at 31
December 2017 114 - 3 815 (932) - -
Called-up Share Capital
share premium redemption Distributable Capital Revaluation
capital account reserve reserve reserve reserve Total
Infrastructure
Shares Fund GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
As at 1 January
2017 324 14,375 1 11,591 (1,116) 1,385 26,560
Trail
commission in
relation to
prior year
share issues - (33) - (95) - - (128)
Cancellation of
share premium - (14,342) - 14,342 - - -
Realised gains
on disposal of
investments - - - - 6,008 - 6,008
Investment
holding
losses - - - - - (1,385) (1,385)
Dividends paid - - - (30,237) - - (30,237)
Management fees
charged to
capital - - - - (1,066) - (1,066)
Revenue return
for the year - - - 248 - - 248
As at 31
December 2017 324 - 1 (4,151) 3,826 - -
Audited Income Statement
for the year ended 31 December 2017
Year ended Year ended
31 December 2017 31 December 2016
Revenue Capital Total Revenue Capital Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Realised gains/(losses)
on investments - 12,550 12,550 - (3,262) (3,262)
Investment holding
gains - 4,107 4,107 - 8,279 8,279
Income 1,570 - 1,570 2,916 - 2,916
Investment management
fees (729) (3,051)* (3,780) (534) (1,601) (2,135)
Other expenses (1,199) - (1,199) (596) - (596)
(Loss)/return on
ordinary activities
before taxation (358) 13,606 13,248 1,786 3,416 5,202
Taxation - - - (220) 220 -
(Loss)/return on
ordinary activities
after taxation (358) 13,606 13,248 1,566 3,636 5,202
(Loss)/return per
share:
Ordinary Share (0.3)p 6.0p 5.7p 0.4p 2.8p 3.2p
Planned Exit Share (0.4)p 0.3p (0.1)p 0.3p 2.9p 3.2p
Infrastructure Share 0.8p 10.9p 11.7p 3.4p 0.9p 4.3p
*Includes GBP863,000 paid performance incentive fee relating to the
Infrastructure Shares Fund.
The total column of this statement is the profit and loss account of the
Company and the revenue and capital columns represent supplementary
information.
All revenue and capital items in the above Income Statement are derived
from continuing operations. No operations were acquired or discontinued
in the year.
The Company has no recognised gains or losses other than those shown
above, therefore no separate statement of total comprehensive income has
been presented.
Audited Reconciliation of Movements in Shareholders' Funds
Capital
Year ended 31 Called-up redemption Distributable
December share capital Share premium account reserve reserve Capital reserve Revaluation reserve Total
2017 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
As at 1
January
2017 1,718 112,541 435 18,543 (5,248) 8,566 136,555
Share issues
in the year 496 42,110 - - - - 42,606
Expenses in
relation to
share
issues* - (1,759) - (95) - - (1,854)
Repurchase of
shares (20) - 20 (1,476) - - (1,476)
Cancellation
of share
premium - (55,205) - 55,205 - - -
Realised
gains on
disposal of
investments - - - - 12,550 - 12,550
Investment
holding
gains - - - - - 4,107 4,107
Dividends
paid - - - (48,650) - - (48,650)
Management
fees charged
to capital - - - - (3,051) - (3,051)
Revenue loss
for the
year - - - (358) - - (358)
As at 31
December
2017 2,194 97,687 455 23,169** 4,251** 12,673 140,429
* Expenses in relation to share issues include advisor
fees (GBP686,000) and promoters fees (GBP958,000)
for the 2017 Ordinary Shares Fund raise and trail
commission in relation to prior year fund raises (GBP115,000).
** Total distributable reserves at 31 December 2017
total GBP27,420,000 (2016: GBP13,295,000).
Capital
Year ended 31 Called-up redemption Distributable
December share capital Share premium account reserve reserve Capital reserve Revaluation reserve Total
2016 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
As at 1
January
2016 1,305 77,016 421 31,654 (605) 287 110,078
Share issues
in the year 427 37,312 - - - - 37,739
Expenses in
relation to
share
issues - (1,787) - - - - (1,787)
Repurchase of
shares (14) - 14 (991) - - (991)
Realised
losses on
disposal of
investments - - - - (3,262) - (3,262)
Investment
holding
gains - - - - - 8,279 8,279
Dividends - - - (13,686) - - (13,686)
Management
fees charged
to capital - - - - (1,601) - (1,601)
Tax credited
to capital - - - - 220 - 220
Revenue
return for
the year - - - 1,566 - - 1,566
As at 31
December
2016 1,718 112,541 435 18,543 (5,248) 8,566 136,555
Audited Balance Sheet
at 31 December 2017
Registered Number: 03421340
As at As at
31 December 31 December
2017 2016
GBP'000 GBP'000
Fixed assets
Investments held at fair value through profit or loss 77,963 92,217
Current assets
Debtors 887 2,193
Money market securities and other deposits 60,482 30,976
Cash 1,517 11,361
62,886 44,530
Creditors
Amounts falling due within one year (420) (192)
Net current assets 62,466 44,338
Net assets 140,429 136,555
Capital and reserves
Called-up share capital 2,194 1,718
Share premium account 97,687 112,541
Capital redemption reserve 455 435
Distributable reserve 23,169 18,543
Capital reserve 4,251 (5,248)
Revaluation reserve 12,673 8,566
Equity Shareholders' funds 140,429 136,555
Net asset value per share:
Ordinary Share 80.0p 83.6p
Planned Exit Share 0.0p 25.9p
Infrastructure Share 0.0p 81.7p
The financial statements on pages 56 to 77 of the Annual Report and
Accounts were approved by the Board of Directors and authorised for
issue on 10 April 2018 and were signed on its behalf by:
John Gregory
Chairman
Audited Cash Flow Statement
for the year ended 31 December 2017
Year Year
ended ended
31 December 31 December
2017 2016
GBP'000 GBP'000
Cash flow from operating activities
Investment income received 2,457 2,768
Deposit and similar interest received 113 98
Investment management fees paid (3,797) (2,118)
Secretarial fees paid (113) (110)
Other cash payments (902) (848)
Net cash outflow from operating activities (2,242) (210)
Returns on investing activities
Purchase of investments (17,869) (4,877)
Net proceeds on sale of investments 48,394 9,287
Net proceeds on deferred consideration 561 64
Return of cash held on behalf of investee companies - (548)
Net cash inflow from investing activities 31,086 3,926
Financing
Proceeds of fund raising 39,384 36,028
Expenses of fund raising (1,247) (886)
Repurchase of own shares (1,336) (1,329)
Equity dividends paid (45,983) (12,961)
Movement in money market funds (29,506) (16,088)
Net cash (outflow)/inflow from financing activities (38,688) 4,764
Net (outflow)/inflow of cash in the year (9,844) 8,480
Reconciliation of net cash flow to movement in net
funds
(Decrease)/increase in cash and cash equivalents for
the year (9,844) 8,480
Net cash and cash equivalents at start of year 11,361 2,881
Net cash and cash equivalents at end of year 1,517 11,361
Analysis of changes in net
debt At 1 January 2017 Cashflow At 31 December 2017
GBP'000 GBP'000 GBP'000
Cash and cash equivalents 11,361 (9,844) 1,517
Notes
1. These are not statutory accounts in accordance with S436 of the
Companies Act 2006. The full audited accounts for the year ended 31
December 2017, which were unqualified and did not contain statements
under S498(2) of the Companies Act 2006 or S498(3) of the Companies Act
2006, will be lodged with the Registrar of Companies. Statutory accounts
for the year ended 31 December 2017 including an unqualified audit
report and containing no statements under the Companies Act 2006 will be
delivered to the Registrar of Companies in due course.
2. The audited Annual Financial Report has been prepared on the basis of
accounting policies set out in the statutory accounts of the Company for
the year ended 31 December 2017. All investments held by the Company are
classified as 'fair value through the profit and loss'. Unquoted
investments have been valued in accordance with IPEVC guidelines. Quoted
investments are stated at bid prices in accordance with the IPEVC
guidelines and Generally Accepted Accounting Practice.
3. Copies of the Annual Report will be sent to shareholders and will be
available for inspection at the Registered Office of the Company at The
Shard, 32 London Bridge Street, London, SE1 9SG and can be accessed on
the following website: www.foresightgroup.eu.
4.
Net asset value per share
The net asset value per share is based on net assets at the end of the
year and on the number of shares in issue at that date.
31 December 2017 31 December 2016
Ordinary Planned Infrastructure Ordinary Planned Infrastructure
Shares Exit Shares Shares Shares Exit Shares Shares
Fund Fund Fund Fund Fund Fund
Net
assets GBP140,429,000 GBPnil GBPnil GBP107,046,000 GBP2,949,000 GBP26,560,000
No. of
shares
at year
end 175,601,977 11,404,314 32,495,246 127,985,288 11,404,314 32,495,246
Net asset 80.0p 0.0p 0.0p 83.6p 25.9p 81.7p
value
per
share
5. Return per share
Year ended 31 December 2017 Year ended 31 December 2016
Planned
Ordinary Planned Infrastructure Ordinary Exit Infrastructure
Share Exit Share Share Share Share Share
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Total return after taxation 9,452 (9) 3,805 3,442 367 1,393
Total return per share (note a) 5.7p (0.1)p 11.7p 3.2p 3.2p 4.3p
Revenue return from ordinary activities after
taxation (561) (45) 248 423 32 1,111
Revenue return per share (note b) (0.3)p (0.4)p 0.8p 0.4p 0.3p 3.4p
Capital return from ordinary shares after taxation 10,013 36 3,557 3,019 335 282
Capital return per share (note c) 6.0p 0.3p 10.9p 2.8p 2.9p 0.9p
Weighted average number of shares in issue in the
year 165,748,167 11,404,314 32,495,246 109,561,757 11,488,663 32,502,653
Notes:
a) Total return per share is total return after taxation divided by the
weighted average number of shares in issue during the year.
b) Revenue return per share is revenue return after taxation divided by
the weighted average number of shares in issue during the year.
c) Capital return per share is capital return after taxation divided by
the weighted average number of shares in issue during the year.
6. Annual General Meeting
The Annual General Meeting will be held at 2.00pm on 22 May 2018 at the
offices of Foresight Group LLP, The Shard, 32 London Bridge Street,
London, SE1 9SG.
7. Income
Year ended Year ended
31 December 31 December
2017 2016
GBP'000 GBP'000
Loan stock interest 820 2,133
Dividends receivable 637 685
Overseas based Open Ended Investments Companies ("OEICs") 113 98
1,570 2,916
8. Investments
2017 2016
Company GBP'000 GBP'000
Quoted investments - 54
Unquoted investments 77,963 92,163
77,963 92,217
Quoted Unquoted Total
Company GBP'000 GBP'000 GBP'000
Book cost as at 1 January 2017 40 84,373 84,413
Investment holding gains 14 7,790 7,804
Valuation at 1 January 2017 54 92,163 92,217
Movements in the year:
Purchases at cost - 17,869 17,869
Disposal proceeds (57) (48,337) (48,394)
Realised gains* 17 11,706 11,723
Investment holding (losses)/gains* (14) 4,562 4,548
Valuation at 31 December 2017 - 77,963 77,963
Book cost at 31 December 2017 - 65,611 65,611
Investment holding gains - 12,352 12,352
Valuation at 31 December 2017 - 77,963 77,963
*Refer to Ordinary Shares Fund and Planned Exit Shares
Fund footnotes for detail.
Quoted Unquoted Total
Ordinary Shares Fund GBP'000 GBP'000 GBP'000
Book cost as at 1 January 2017 40 58,837 58,877
Investment holding gains 14 7,260 7,274
Valuation at 1 January 2017 54 66,097 66,151
Movements in the year:
Purchases at cost - 17,869 17,869
Disposal proceeds (57) (17,664) (17,721)
Realised gains* 17 6,569 6,586
Investment holding (losses)/gains** (14) 5,092 5,078
Valuation at 31 December 2017 - 77,963 77,963
Book cost at 31 December 2017 - 65,611 65,611
Investment holding gains - 12,352 12,352
Valuation at 31 December 2017 - 77,963 77,963
*Deferred consideration of GBP504,000 was received by the Ordinary
Shares fund in the year and is included within realised gains in the
income statement.
** The above receipt was offset by a decrease in the deferred
consideration debtor of GBP450,000. A further GBP258,000 of deferred
consideration was recognised in the year and is included in investment
holding gains in the income statement.
Quoted Unquoted Total
Planned Exit Shares Fund GBP'000 GBP'000 GBP'000
Book cost as at 1 January 2017 - 3,396 3,396
Investment holding losses - (855) (855)
Valuation at 1 January 2017 - 2,541 2,541
Movements in the year:
Disposal proceeds - (2,525) (2,525)
Realised losses* - (871) (871)
Investment holding gains** - 855 855
Valuation at 31 December 2017 - - -
Book cost at 31 December 2017 - - -
Investment holding gains - - -
Valuation at 31 December 2017 - - -
*Deferred consideration of GBP323,000 was received by the Planned Exit
Shares fund in the year and is included within realised losses in the
income statement.
** The above receipt was offset by a decrease in the deferred
consideration debtor of GBP249,000.
Quoted Unquoted Total
Infrastructure Shares Fund GBP'000 GBP'000 GBP'000
Book cost as at 1 January 2017 - 22,140 22,140
Investment holding gains - 1,385 1,385
Valuation at 1 January 2017 - 23,525 23,525
Movements in the year:
Disposal proceeds - (28,148) (28,148)
Realised gains - 6,008 6,008
Investment holding losses - (1,385) (1,385)
Valuation at 31 December 2017 - - -
Book cost at 31 December 2017 - - -
Investment holding gains - - -
Valuation at 31 December 2017 - - -
9. Related party transactions
No Director has an interest in any contract to which the Company is a
party.
10. Transactions with the manager
Foresight Group CI Limited, which acts as manager to the Company in
respect of its investments, earned fees of GBP3,780,000 (including an
GBP863,000 performance incentive fee) during the year (2016:
GBP2,135,000).
Foresight Fund Managers Limited, Company Secretary until November 2017,
received fees of GBP113,000 (2016: GBP110,000) during the year.
At the balance sheet date there was GBPnil (2016: GBP17,000) due to
Foresight Group CI Limited and GBPnil (2016: GBPnil) due to Foresight
Fund Managers Limited. No amounts have been written off in the year in
respect of debts due to or from the related parties.
END
This announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the information
contained therein.
Source: Foresight VCT PLC via Globenewswire
http://www.foresightgroup.eu/
(END) Dow Jones Newswires
April 10, 2018 11:38 ET (15:38 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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