Foresight 4 VCT Plc Foresight 4 Vct Plc : Final Results

 
TIDMFTF 
 
   FORESIGHT 4 VCT PLC 
 
   Final Results 
 
   31 July 2017 
 
   Foresight 4 plc, managed by Foresight Group CI Limited, today announces 
the final results for the year ended 31 March 2017. 
 
   These results were approved by the Board of Directors on 31 July 2017. 
 
   You may, in due course, view the Annual Report in full at 
www.foresightgroup.eu. All other statutory information can also be found 
there. 
 
   Financial Summary 
 
   ORDINARY SHARES FUND 
 
   -- Diversified portfolio of 26 actively managed companies 
 
   -- Total net assets GBP42.2 million 
 
   -- Net Asset Value per Ordinary Share increased by 3.1p to 73.5p as at 
31 March 2017 (31 March 2016:70.4p). 
 
   -- The portfolio has seen an uplift in valuation of GBP2.7 million over 
the year 
 
   -- One follow-on investment of GBP0.2 million was made during the year 
 
   -- GBP0.3 million was realised from sales and loan redemptions from 
three portfolio companies, and a further GBP0.5 million of deferred 
consideration 
 
   -- On 22 June 2017 Foresight 4 VCT plc acquired the assets and 
liabilities of Foresight 3 VCT plc. The new larger Company, with 
post-merger assets of GBP77.0 million, will be better positioned to 
increase shareholder value, raise funds and progress the investment 
strategy. 
 
   -- In July 2017 the Company successfully exited its investments in 
Blackstar Amplification and 
 
   The Bunker Secure Hosting, realising a total of GBP6.0 million compared 
to an investment cost of 
 
   GBP2.1 million. 
 
   -- A special dividend of 4.0p per Ordinary Share was paid on 17 July 
2017 based on an ex-dividend date of 29 June 2017 and a record date 30 
June 2017 
 
   Chairman's statement 
 
   During the year, the net asset value per Ordinary Share increased by 
4.4% to 73.5p, driven by the positive performance of investments. The 
Company has now achieved growth in net asset value over several quarters 
and the Board believes that the underlying portfolio of growing 
companies is well positioned to maintain this in future periods. 
 
   MERGER WITH FORESIGHT 3 VCT PLC 
 
   Following the end of the reporting period, the previously proposed 
merger of Foresight 4 VCT plc and Foresight 3 VCT plc became effective 
after it received approval from the Shareholders of both companies on 14 
and 22 June 2017. We anticipate that your new larger Company, with a 
portfolio of 26 companies with carrying values and post-merger assets of 
GBP77.0 million, will be better positioned to increase shareholder value, 
raise further funds, and progress the current successful investment 
strategy. The merger, which has been under discussion since September 
2016, is expected to deliver cost savings and other benefits which the 
Board believes support the strategy to expand the size of the Company. 
The ability to sustain a significantly wider spread of investments will 
facilitate risk management by increasing diversification. In addition, 
the reduced need to maintain liquid assets should allow the enlarged 
Company to consider making additional returns to Shareholders. The 
increased scale of the Company gives it the critical mass to generate 
sufficient income and realisations and expects to meet an attractive 
dividend target, as well as maintaining a regular programme of share 
buybacks aimed at maintaining an initial discount to NAV in the region 
of 10%. Furthermore, a larger company is able to spread the fixed 
elements of running costs across a wider asset base and, as a result, 
can reduce costs as a percentage of net assets. Accordingly, the annual 
management fee will reduce from 2.25% to 2.0% of net assets and the 
annual expenses cap will reduce from 3.5% to 2.95% of net assets.  Full 
details of the merger can be found in the Circular sent to you on 19 May 
2017 which is also available on Foresight's website. 
 
   SPECIAL DIVID 
 
   It is the Company's policy to provide a flow of tax-free dividends, 
generated from income and from capital profits realised on the sale of 
investments. However, distributions are inevitably dependent largely on 
successful realisations, refinancings and other forms of cash generation, 
which have been low during the review period. The Board was therefore 
not able to recommend a dividend during the year.  The Board is 
encouraged by the recent success in generating cash from investments 
within the portfolio, notably the sale of The Bunker Secure Hosting and 
Blackstar Amplification in July 2017. Enhanced by the increased size of 
the Company, this gives the Board confidence that it may be able to 
initiate future payments of dividends to Shareholders when prudent to do 
so. The Board therefore declared a Special Dividend of 4.0p per share, 
payable to shareholders on the register on 30 June 2017. The Special 
Dividend was paid on 17 July 2017. 
 
   TOP-UP SHARE ISSUES AND SHARE BUY-BACKS 
 
   During the period under review there were no share buybacks or share 
issues. However, following the merger, alongside the Special Dividend, 
the Company is also in a position to provide a partial or full exit 
event for shareholders by way of a Tender Offer of up GBP5 million. As 
announced on 21 July 2017 the offer period will run until 20 September 
2017 at a discount to NAV of 7.5%. Full details of the Tender Offer 
(including application forms for participation) can be found in the 
Circular sent to you on 21 July 2017, which is also available on 
Foresight's website. In addition to this tender offer, over time the 
also Board expects to be in a position to implement a series of share 
buybacks to enable the enlarged VCT to achieve its target of a discount 
to NAV in the region of 10%. It remains the Board's intention to provide 
a potential exit event via a further Tender Offer in 2018. 
 
   FUNDRAISING 
 
   The Board is also taking the opportunity to raise up to GBP50 million 
through the issue of new shares in the Company, through an offer for 
subscription, launched on 19 May 2017. This will provide Shareholders 
and new investors with the opportunity to invest in the Company and 
benefit from the tax reliefs available to qualifying investors.  The 
Board believes that there are attractive opportunities to make further 
growth investments in order to generate returns for investors as the 
Manager continues to see strong deal flow and is seeing a significant 
number of high quality private equity investment opportunities. Funds 
raised under the offer will allow the Company to take advantage of this 
flow of attractive investment opportunities and further increase 
portfolio diversification in line with the ongoing strategy of the 
Company. Full details of the offer, which will close on 30 April 2018, 
can be found in the Prospectus issued by the Company on 19 May 2017. 
 
   BOARD COMPOSITION 
 
   Following the resolutions at the Annual General Meeting in September 
2016, and following the merger with Foresight 3 VCT plc, a number of 
changes have been made to the Board. Upon the retirement of Philip 
Stephens from the Board with effect from 31 March 2017, Simon Jamieson 
was appointed as Chairman of Foresight 4 VCT plc. Subsequently I was 
appointed as Chairman on 22 June 2017. Peter Dicks also indicated his 
intention to retire from the Board on the earlier of a corporate action 
or the Annual General Meeting in 2017. To facilitate this, Michael Gray 
joined the Board as an independent Non-Executive Director on 14 February 
2017. Further details of the Board members can be found on page 28-29 of 
the Annual Report and Accounts. On behalf of the Board, we would like to 
wish both Philip and Peter well for the future and thank them for their 
valuable contributions, since the launch of the Company in 1998 in 
Philip's case and since 2004 for Peter. Read 
 
   PERFORMANCE AND PORTFOLIO ACTIVITY 
 
   The Board is generally pleased with the increase in net asset value 
achieved during the year under review. At the year end the Company held 
26 investments with carrying values in UK based businesses across a wide 
range of sectors. The Company has benefited from the solid overall 
performance within the portfolio and increased valuations of several 
companies, principally Datapath, Procam, Specac and Protean, which are 
detailed in the Top Ten Investment section of the Annual Report and 
Accounts. 
 
   The wider VCT sector has begun to see an increase in investment activity 
as it adapts to the changes in regulation set out in the much delayed 
publication of HMRC's VCT Guidance Manual in May 2016. However, with 
limited liquidity available, no new investments were completed by the 
Company during the year and one follow-on investment of GBP189,000 was 
made in molecular diagnostics business Biofortuna. The Investment 
Manager, Foresight Group, continues to see a strong pipeline of 
potential investments sourced through its regional networks and 
well-developed relationships with advisors and the SME community. 
Assuming the fund raising launched in May 2017 is successful, the 
Company expects to be in a position to fully exploit these attractive 
investment opportunities. In the year to 31 March 2017, two small 
realisations took place and generated total proceeds of GBP251,000. 
Trilogy Communications was sold to a US competitor in the professional 
intercom sector, while the Company reduced its position in AIM listed 
group, ZOO Digital. Since the end of the period this investment has been 
fully realised. Furthermore, Blackstar Amplification and The Bunker 
Secure Hosting have also been successfully sold, realising a combined 
total of GBP6.0 million. During the year the Manager has supported and 
worked with the management teams of the investee companies to maximise 
value for shareholders. The Board believes that the re-focused portfolio 
now provides a solid platform to deliver growth, underpin future 
dividends and enhance Shareholder returns. Further information on the 
investment portfolio is included within the Investment Manager's Report 
on page 8 of the Annual Report and Accounts. 
 
   SHAREHOLDER COMMUNICATION 
 

   As part of its ongoing commitment to high quality investor relations, 
the Board encourages you to attend one of the popular Investor Forums 
hosted by the Investment Manager, Foresight Group. Four of these popular 
events are held annually and we will be in touch later this year about 
the next opportunity to attend. 
 
   ANNUAL GENERAL MEETING 
 
   The Company's Annual General Meeting will take place on 28 September 
2017 at 10.00am. I look forward to welcoming you to the Meeting, which 
will be held at the offices of Foresight Group in London. Prior to the 
formal business of the Annual General Meeting, Foresight Group, the 
investment Manager and two investee companies will give presentations. 
 
   OUTLOOK 
 
   Over the last year, the Board believes that the Company has demonstrated 
the benefits of the Manager's portfolio management actions, with 
improving performance driving Net Asset Value growth. We believe the 
Company is now well positioned to build on this momentum.  Headway has 
been made in reducing the discount in NAV during the period under review, 
with the discount dropping to 20%. However, further progress is 
required. Facilitated by the merger with Foresight 3 VCT plc and the 
liquidity expected to be provided by the issue of new shares, the 
Company should be able to capitalise on the strong pipeline of 
attractive investment opportunities that the Manager continues to see in 
smaller, growth businesses across the UK. 
 
   Raymond Abbott 
 
   Chairman 
 
   31 July 2017 
 
   Investment Manager's Review 
 
   As at 31 March 2017 the Company's portfolio comprised 26 actively 
managed investments with a total cost 
 
   of GBP17.7m million and a valuation of GBP40.5 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 page 12 of the Annual Report and 
Accounts. 
 
   NEW INVESTMENTS AND FOLLOW-ON FUNDING 
 
   The Company had current cash in hand of GBP1.6 million at 31 March 2017. 
This will be utilised alongside proceeds from the recent realisations 
and proceeds from the offer for subscription for new and follow on 
investments, buybacks and ongoing running expenses. No new investments 
were made during the year to 31 March 2017. In July 2016, a further 
tranche of GBP189,000 was invested in molecular diagnostics business 
Biofortuna as part of a GBP1.6 million funding round alongside other 
Foresight VCTs and coinvestors. This additional capital was provided to 
help finance continuing new product development of its blood group 
genotyping range. During the year the company has increased the number 
of customers using the business for manufacturing, providing greater 
visibility of revenues and a platform for positioning the company for 
growth next year. I 
 
   PIPELINE 
 
   Foresight has a focused strategy for generating deal flow across the UK, 
combining meetings with advisors and professional service firms, 
attending and organizing networking events and approaching businesses 
directly. Foresight is deeply connected within the investment community 
and its efforts are producing positive results. 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. Foresight is firmly established 
as a key player in the investment range of GBP1m to GBP5m and is 
acknowledged for its appetite to transact and support ambitious SME 
management teams. 
 
   EXITS AND REALISATIONS 
 
   Total proceeds of GBP251,000 were generated during the year from the 
disposal of two investments. In addition four further investments were 
exited without proceeds. 
 
   In August 2016, the Company successfully completed the sale of Trilogy 
Communications, which provides intercoms solutions to a number of 
sectors including defence, broadcast and industrials, to California 
based Clear-Com LLC. The Company received GBP139,000 following 
completion (compared with a carrying value of GBP81,000 at 31 March 
2016), with further deferred consideration payable subject to warranty 
claims and tax claims. This contingent asset is recognised as a debtor 
within the Company's accounts at 31 March 2017. During the year, a total 
of 1,108,537 ordinary shares in AIM listed Zoo Digital ("ZOO") were sold, 
realising GBP139,000 Further disposals continued post period end and the 
investment was fully exited on 5 April 2017. ZOO supplies software and 
services for authored content (e.g. DVD, Blu-ray, iTunes media) to media 
businesses and post-production firms. 
 
   The current environment is supportive of further exits across the 
portfolio. While exchange rates currently favour international buyers, 
we continue to witness strong appetite to acquire high quality UK 
companies from both domestic and international parties. 
 
   Following the end of the reporting year, the Company's positions in 
Blackstar Amplification and The Bunker Secure Hosting were successfully 
realised, generating total proceeds of GBP6.0 million compared to an 
investment cost of GBP2.1 million. The sale of Autologic's operating 
subsidiaries was also agreed with Opus Group AB, a Swedish company which 
provides vehicle environmental and safety testing services globally. 
Although the value of this realisation was in line with the recently 
reduced valuation, this sale takes total the overall returns on this 
investment to 4.6x initial cost, including the partial sale of the 
investment to a mid-market private equity firm in 2012. 
 
   Blackstar Amplification 
 
   The Company originally invested in Blackstar Amplification, an 
award-winning Northamptonbased designer and manufacturer of innovative 
guitar amplifiers, in 2012. The funding provided growth capital and 
helped restructure the company's shareholder base. In addition, 
Foresight introduced Keith Pacey, former Executive Chairman and CEO of 
Maplin Electronics, as Chairman. Blackstar has expanded internationally 
and more than doubled turnover over the last four years, established 
itself as the number two amplifier brand in the UK and USA and broadened 
its product catalogue. The exit was facilitated by a management buyout, 
supported by the company's manufacturing and distribution partners, and 
generated return of c.2x money. 
 
   The Bunker Secure Hosting 
 
   Having first invested in May 2006, the Company has been a longstanding 
shareholder 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 Company was used to scale 
The Bunker's data storage facilities materially. The business has 
experienced a compound annual growth rate of over 14% of recurring 
revenues for the past three years with annual revenues growing to in 
excess of GBP9 million compared to GBP1.8m at investment, having built 
an expert reputation in the specialist FinTech space. The Bunker was 
acquired by Palatine Private Equity, generating an overall return of 
2.44x over the life of the investment. 
 
   DISPOSALS IN THE YEARED 31 MARCH 2017 
 
 
 
 
                             Original 
                              Cost/ 
                             Take-On 
                              Value    Proceeds  Gain/(loss)    Exit    Valuation at 31 March 2016 
Company          Detail      GBP'000   GBP'000     GBP'000    Multiple            GBP'000 
Trilogy 
 Communications 
 Holdings        Full 
 Limited          disposal        776       138        (638)       0.2                          81 
Zoo Digital      Part 
 Group plc        disposal        377       112        (265)       0.3                         108 
The Skills 
 Group Limited   Dissolved        789         1        (788)       0.0                           - 
Abacuswood       Part 
 Limited          disposal        224         -        (224)       0.0                           - 
Always On Group  Full 
 Limited          disposal        680         -        (680)       0.0                          85 
Thermotech 
 Solutions       Part 
 Limited**        disposal        800         -        (800)       0.0                         800 
The Fin Machine 
 Company 
 Limited         Dissolved      3,037         -      (3,037)       0.0                           - 
Total disposals                 6,683       251     (6,432)*      0.00                       1,074 
 
 
   In addition to the above, deferred consideration of GBP509,000 was 
received by the fund from the sale of Amberfin Holdings Limited, O-Gen 
Acme Limited and DeFaqto Group Limited. 
 
   * Of this figure, GBP5,608,000 of the loss had been recognised in 
previous years and as such had no impact on the NAV in the current year. 
 
   ** This investment was restructured in the year. 
 
   POST PERIOD DISPOSALS 
 
 
 
 
                           Original 
                            Cost/ 
                           Take-On   Proceeds 
                            Value    on exit   Gain/(loss)     Exit     Valuation at 31 March 2017 
Company         Detail     GBP'000*  GBP'000*   GBP'000*    Multiple**           GBP'000* 
Blackstar 
 Amplification 
 Holdings       Full 
 Limited         disposal     1,000     1,543          543         1.5                       1,535 
The Bunker 
 Secure 
 Hosting        Full 
 Limited         disposal     3,260     4,431        1,171         1.4                       4,425 
Autologic 
 Diagnostics 
 Group          Full 
 Limited         disposal     2,000       600      (1,400)         0.3                         600 
Zoo Digital     Full 
 Group plc       disposal     1,053       297        (756)         0.3                         306 
 
   * Based on Foresight 3 VCT plc and Foresight 4 VCT plc merged figures. 
 
   ** Compares original cost to proceeds on exit. Excludes interest income, 
loan repayments and recapitalisations in previous periods. 
 
   Key Portfolio Developments 
 

   The Company has benefitted from solid performance of the underlying 
portfolio, with a net valuation change of GBP2.7 million in total. 
Material changes in valuation, defined as increasing or decreasing by 
GBP500,000 or more since 31 March 2016, are detailed below. Each of 
these companies are detailed in the Top Ten Investments section on the 
next page, with the exception of Autologic. 
 
   Autologic Diagnostics Group provides advanced aftermarket automotive 
diagnostic services. A switch in strategy towards a recurring revenue 
model for its software-based diagnostic tools incurred some exceptional 
costs. Trading has continued to deteriorate recently and the valuation 
of the company has been reduced accordingly. The investment was 
subsequently sold after the end of the reporting period in June 2017. 
The sale takes total overall returns on this investment to 4.6x initial 
cost. 
 
 
 
 
Company                     Valuation Methodology       Valuation Change (GBP) 
                            Discounted earnings 
Datapath Group Limited       multiple                                2,312,171 
                            Discounted earnings 
Procam Television Holdings   multiple                                  797,015 
Specac International        Discounted earnings 
 Limited                     multiple                                  686,194 
                            Discounted earnings 
Protean Software Limited     multiple                                  590,457 
CoGen/Ogen UK Limited       Discounted cash flow                     (566,663) 
Thermotech Solutions        Discounted earnings 
 Limited                     multiple                                (629,219) 
Autologic Diagnostics       Discounted earnings 
 Group Limited               multiple                              (1,891,350) 
 
 
   Outlook 
 
   Although the recent UK election has introduced further uncertainty, 
Foresight believes the outlook for the UK's SME sector remains positive. 
Foresight continues to see increasing dealflow and a high level of 
activity with a growing pipeline of suitable investment opportunities. 
Formal Brexit negotiations have now commenced with details of the 
initial framework for the UK's exit from the European Union likely to 
take shape over the coming months. Foresight remains of the view that 
this will ultimately create new opportunities for well-managed, 
entrepreneurial SMEs, which will require financing to support their 
future growth. Furthermore, we expect to see the solid interest from 
numerous potential acquirers of businesses in the portfolio crystallise 
into further realisations in the year ahead. 
 
   Russell Healey 
 
   Partner and Head of Private Equity 
 
   Foresight Group 
 
   31 July 2017 
 
   Income Statement 
 
   for the year ended 31 March 2017 
 
 
 
 
                             Year ended                  Year ended 
                            31 March 2017               31 March 2016 
                      Revenue  Capital   Total   Revenue  Capital    Total 
                      GBP'000  GBP'000  GBP'000  GBP'000  GBP'000   GBP'000 
 
Investment holding 
 gains                      -    8,728    8,728        -     3,931     3,931 
Realised losses on 
 investments                -  (5,941)  (5,941)        -  (10,434)  (10,434) 
Income                    383        -      383    2,570         -     2,570 
Investment 
 management fees        (229)    (686)    (915)    (279)     (839)   (1,118) 
Other expenses          (424)        -    (424)    (499)         -     (499) 
 
(Loss)/return on 
 ordinary activities 
 before taxation        (270)    2,101    1,831    1,792   (7,342)   (5,550) 
 
Taxation                    -        -        -        -         -         - 
 
(Loss)/return on 
 ordinary activities 
 after taxation         (270)    2,101    1,831    1,792   (7,342)   (5,550) 
 
Return per share: 
Ordinary Share         (0.6)p   (3.7)p   (3.1)p     3.1p   (12.7)p    (9.6)p 
 
   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 recognised gains and losses has been presented. 
 
   Reconciliation of Movements in Shareholders' Funds 
 
 
 
 
                Called-up       Share        Capital      Profit and 
                  share        premium      redemption       loss 
                 capital       account       reserve       account      Total 
Year ended 31 
March 2017       GBP'000       GBP'000       GBP'000       GBP'000     GBP'000 
As at 1 April 
 2016                   574         5,147           265        34,379   40,365 
Expenses in 
 relation to 
 previous 
 share 
 issues*                  -          (35)             -             -     (35) 
Transaction 
 costs                    -             -             -           (2)      (2) 
Loss for the 
 year                     -             -             -         1,831    1,831 
As at 31 
 March 2017             574         5,112           265      36,208**   42,159 
 
 
 
 
                Called-up       Share        Capital      Profit and 
                  share        premium      redemption       loss 
                 capital       account       reserve       account      Total 
Year ended 31 
March 2016       GBP'000       GBP'000       GBP'000       GBP'000     GBP'000 
As at 1 April 
 2015                   570         4,847           261        47,165   52,843 
Share issues 
 in the year              8           347             -             -      355 
Expenses in 
 relation to 
 previous 
 share 
 issues*                  -          (47)             -             -     (47) 
Repurchase of 
 shares                 (4)             -             4         (266)    (266) 
Dividends                 -             -             -       (6,970)  (6,970) 
Loss for the 
 year                     -             -             -       (5,550)  (5,550) 
As at 31 
 March 2016             574         5,147           265      34,379**   40,365 
 
   * Trail commission payable to financial advisors in the year. 
 
   ** Of this amount GBP14,049,000 (2016: GBP20,949,000) is realised and 
distributable. 
 
   Balance Sheet 
 
   at 31 March 2017 
 
 
 
 
 
 
                                                As at          As at 
                                            31 March 2017  31 March 2016 
                                               GBP'000        GBP'000 
 
Fixed assets 
Investments held at fair value through 
 profit or loss                                    40,463         37,738 
 
Current assets 
Debtors                                               151            959 
Money market securities and other deposits            838          1,773 
Cash                                                  790             62 
                                                    1,779          2,794 
 
Creditors 
Amounts falling due within one year                  (83)          (167) 
 
Net current assets                                  1,696          2,627 
Net assets                                         42,159         40,365 
 
Capital and reserves 
Called-up share capital                               574            574 
Share premium account                               5,112          5,147 
Capital redemption reserve                            265            265 
Profit and loss account                            36,208         34,379 
 
 
Equity shareholders' funds                         42,159         40,365 
 
 
Net asset value per share: 
Ordinary Share                                      73.5p          70.4p 
 
 
 
   Cash Flow Statement 
 
   for the year ended 31 March 2017 
 
 
 
 
                                                       Year ended  Year ended 
                                                        31 March    31 March 
                                                          2017        2016 
                                                        GBP'000      GBP'000 
Cash flow from operating activities 
Investment income received                                    553          563 
Dividends received from investments                            10        2,117 
Deposit and similar interest received                           4           24 
Investment management fees paid                             (915)      (1,118) 
Secretarial fees paid                                       (157)        (157) 
Other cash payments                                         (284)        (379) 
 
Net cash (outflow)/(inflow from operating activities 
 and returns on investment                                  (789)        1,050 
 
Returns on investment and servicing of finance 
Purchase of unquoted investments                           (189))      (7,256) 
Net proceeds on sale of investments                           357          717 
Net proceeds on deferred consideration                        509            7 
Net proceeds on liquidation of investments                      -           58 
Net capital inflow/(outflow) from financial 
 investment                                                   677      (6,474) 
 
Equity dividends paid                                           -      (6,970) 
 
Management of liquid resources 
Movement in money market funds                                935        2,627 
                                                              935        2,627 
Financing 
Proceeds of fund raising                                        -          355 
Expenses of fund raising for previous years                  (35)         (47) 
Repurchase of own shares                                     (60)        (111) 
Net cash (outflow)/inflow/inflow from financing 
 activities                                                  (95)          197 

Net inflow /(outflow) of cash for the year                   728)      (9,570) 
 
Reconciliation of net cash flow to movement in net 
 funds 
Increase /(decrease) in cash for the year                     728      (9,570) 
Net cash at start of year                                      62        9,632 
Net cash at end of year                                       790           62 
 
 
 
 
Analysis of changes in net 
debt 
                              At 1 April 2016  Cash flow  At 31 March 2017 
                                  GBP'000       GBP'000            GBP'000 
 
Cash and cash equivalents                  62        728               790 
 
 
   Notes to the accounts 
 
   1.     These are not statutory accounts in accordance with S436 of the 
Companies Act 2006. The full audited accounts for the year ended 31 
March 2017, which were unmodified and did not contain any statements 
under S498(2) of Companies Act 2006 or S498(3) of Companies Act 2006, 
will be lodged with the Registrar of Companies. Statutory accounts for 
the year ended 31 March 2017 including an unmodified audit report and 
containing no statements under the Companies Act 2006 will be delivered 
to the Registrar of Companies in due course. 
 
   2.    The disclosures in this announcement have been prepared on the 
basis of accounting policies set out in the statutory accounts of the 
Company for the year ended 31 March 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 
 
   Net asset value per Ordinary Share is based on net assets at the year 
end of GBP42,159,000 (2016: GBP40,365,000) and on 57,375,499 (2016: 
57,375,499) Ordinary Shares, being the number of Ordinary Shares in 
issue at that date. 
 
   5.    Return per share 
 
 
 
 
                                                         Year ended      Year ended 
                                                        31 March 2017   31 March 2016 
                                                          Ordinary        Ordinary 
                                                           Shares          Shares 
                                                          GBP'000         GBP'000 
 
Total return/(loss) after taxation                              1,831         (5,550) 
Total return/(loss) per share (note a)                           3.1p          (9.6)p 
 
Revenue (loss)/return from ordinary activities after 
 taxation                                                       (270)           1,792 
Revenue (loss)/return per share (note b)                       (0.6)p            3.1p 
 
Capital return/(loss) from ordinary activities after 
 taxation                                                       2,101         (7,342) 
Capital return/(loss) per share (note c)                         3.7p         (12.7)p 
 
Weighted average number of shares in issue in the 
 year*                                                     57,375,499      57,567,321 
 
   * The weighted average number of shares in 2016 has been adjusted to 
take account of the O and C Share fund merger on 10 August 2015. 
 
   Notes: 
 
   a) Total return/(loss) per share is total return after taxation divided 
by the weighted average number of shares in issue during the year. 
 
   b) Revenue (loss)/return per share is revenue return after taxation 
divided by the weighted average number of shares in issue during the 
year. 
 
   c) Capital return/(loss) 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 Company's Annual General Meeting will take place on 28 September 
2017 at 10.00am at the offices of Foresight Group in London. Details can 
be found on page 66 of the Annual Report and Accounts. 
 
   Prior to the formal business of the Annual General Meeting, Foresight 
Group, the investment Manager and two investee companies will give 
presentations between 10.00am and 10.30am. 
 
   7.    Income 
 
 
 
 
                                                Year ended      Year ended 
                                               31 March 2017   31 March 2016 
                                                 GBP'000         GBP'000 
 
Loan stock interest                                      368             428 
Dividends receivable                                      11           2,117 
Overseas based Open Ended Investment 
 Companies ("OEICS")                                       4              24 
Bank deposits                                              -               1 
                                                         383           2,570 
 
 
   8.    Investments held at fair value through profit or loss 
 
 
 
 
                          Year ended      Year ended 
                         31 March 2017   31 March 2016 
                           GBP'000         GBP'000 
 
Quoted investments                 143             282 
Unquoted investments            40,320          37,456 
                                40,463          37,738 
 
 
 
 
                                    Quoted   Unquoted   Total 
                                    GBP'000  GBP'000   GBP'000 
Book cost at 1 April 2016               827    27,438   28,265 
Investment holding (losses)/gains     (545)    10,018    9,473 
Valuation at 1 April 2016               282    37,456   37,738 
 
Movements in the year: 
Purchases at cost                         -       189      189 
Disposal proceeds **                  (112)     (139)    (251) 
Realised losses*                      (264)   (6,168)  (6,432) 
Investment holding gains *              237     8,982    9,219 
Valuation at 31 March 2017              143    40,320   40,463 
 
Book cost at 31 March 2017              451    21,320   21,771 
Investment holding (losses)/gains     (308)    19,000   18,692 
Valuation at 31 March 2017              143    40,320   40,463 
 
   * Realised losses in the income statement includes GBP509,000 realised 
gains in relation to deferred consideration received during the year, 
and GBP18,000 realised loss in relation to deferred consideration which 
was written off during the year. Both were recognised within investment 
holding gains in the income statement up until the point of receipt / 
write off. 
 
   ** Net proceeds in the cash flow statement includes GBP106,000 received 
during the current year which was recognised as a debtor in 2016 
 
   9.    Transactions with the Manager 
 
   Foresight Group, which acts as investment manager to the Company in 
respect of its investments earned fees of GBP915,000 during the year 
(2016: GBP1,118,000). 
 
   Foresight Fund Managers Limited, Company Secretary, received fees of 
GBP157,000 (2016: GBP157,000) during the year. The annual secretarial 
fee (which is payable together with any applicable VAT) is adjusted 
annually in line with the UK Retail Prices Index. 
 
   At the balance sheet date there was GBP3,000 due to (2016: GBP1,000 due 
from) Foresight Group 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 related parties. 
 
   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 4 VCT PLC via Globenewswire 
 
 
  http://www.foresightgroup.eu/ 
 

(END) Dow Jones Newswires

July 31, 2017 11:21 ET (15:21 GMT)

Copyright (c) 2017 Dow Jones & Company, Inc.