Foresight VCT PLC Foresight Vct Plc: Sale Of Ffx Group Limited
January 26 2021 - 05:10AM
UK Regulatory
TIDMFTV
Exit: Sale of portfolio company FFX to H2 Equity Partners delivers 4.3x
return
The Board of Foresight VCT Plc ("FVCT" or "the Company") is pleased to
announce the successful sale of portfolio company FFX Group Limited
("FFX"), one of the UK's largest independent suppliers of high quality
power tools, fixings and building supplies, to H2 Equity Partners ("H2")
on 22 January 2021.
The transaction generated proceeds of GBP11.1 million at completion and
the Company will receive up to GBP0.3 million of deferred consideration
after 18 months subject to certain conditions, implying a cash on cash
return of 4.3x the initial investment of GBP2.7m made in October 2015,
equivalent to an IRR of c.32%. The Company's NAV per ordinary share
stood at 68.8p as at September 2020, to which the exit will add 0.7p,
giving a pro forma NAV per ordinary share of 69.5p.
Since FVCT made its original investment in October 2015, the manager,
Foresight Group LLP ("Foresight") has taken a proactive approach to
supporting the senior management team, introducing Chairperson George
Adams who has extensive experience in the sector, including sixteen
years at Kingfisher, three of which as Chair of Screwfix. The team was
further strengthened with experienced, multi-channel retail executive
CEO Chris Yates joining the business in 2019 and a Group Finance
Director and eCommerce Director joining in 2020.
During the five year investment period, FFX opened a new 60,000 ft2
distribution centre and a new head office in Kent, while staff numbers
increased by more than 125. The business updated its brand and launched
an extensive range of its own products. A direct sales team was
established in order to expand FFX's customer base to include larger
contractors and specialist subcontractors and sell direct to site.
Throughout, FFX has continued to develop its online presence both at
ffx.co.uk and via eBay.
John Gregory, Chairman of Foresight VCT said: "FFX has been a great
success story for the Company and for our shareholders. We are delighted
that Foresight has been able to make such a positive contribution to the
growth of the business which has created over 125 new jobs, and we wish
FFX every success for the future with H2."
ENDS
For more information contact:
Gary Fraser, Foresight Group: 0203 667 8181
(END) Dow Jones Newswires
January 26, 2021 06:10 ET (11:10 GMT)
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