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Share Name Share Symbol Market Type Share ISIN Share Description
Foresight Enterprise Vct Plc LSE:FTF London Ordinary Share GB00B07YBS95 ORD 1P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.0% 56.50 55.50 57.50 56.50 56.50 56.50 15,859 01:00:00
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Equity Investment Instruments 3.7 2.5 1.3 43.5 110

Foresight 4 VCT Plc Foresight 4 Vct Plc - Annual Financial Report

23/04/2021 3:29pm

UK Regulatory (RNS & others)


 
TIDMFTF 
 
   FORESIGHT 4 VCT PLC 
 
   Final Results 
 
   23 April 2021 
 
   Foresight 4 VCT plc, managed by Foresight Group LLP, today announces the 
final results for the nine month period to 31 December 2020. 
 
   These results were approved by the Board of Directors on 23 April 2021. 
 
   The Annual Report will shortly be available in full at 
www.foresightgroup.eu. All other statutory information can also be found 
there. 
 
   Summary Financial Highlights 
 
 
   -- During the period, the Company changed its accounting reference date from 
      31 March to 31 December for operational efficiency reasons. The Annual 
      Report and Accounts are for the nine month period from 1 April 2020 to 31 
      December 2020. 
 
   -- Total net assets GBP120.4 million. 
 
   -- Net Asset Value per share increased by 11.3% from 55.8p at 31 March 2020 
      to 62.1p at 31 December 2020. Including the payment of a 2.8p dividend 
      made on 28 August 2020, NAV total return per share at 31 December 2020 
      was 64.9p, representing a positive total return of 16.3%. 
 
   -- The portfolio has seen an increase in valuation of GBP19.7 million during 
      the period. 
 
   -- Three new investments totalling c.GBP4.6 million and three follow-on 
      investments totalling c.GBP1.9 million were made during the period. 
 
   -- The Company exited its investment in The Naked Deli Ltd realising a total 
      of GBP0.1 million. 
 
   -- A dividend of 2.8p per share was paid on 28 August 2020 based on an 
      ex-dividend date of 13 August 2020 and a record date 14 August 2020. 
 
   Chairman's statement 
 
   I am pleased to present the audited Annual Report and Accounts for the 
nine-month period to 31 December 2020. As announced in January 2021 the 
Board and the Manager changed the accounting reference date to 31 
December for operational efficiency reasons. 
 
   MATERIAL EVENTS DURING THE PERIOD 
 
   Before providing other details, I would like to draw attention to a 
material event that occurred during the period being the continuing 
impact of Covid-19 on the Company and its portfolio. 
 
   The Covid-19 virus has presented the Company and the management of every 
one of its portfolio companies with unprecedented challenges which it is 
anticipated will persist for a considerable time to come. The Manager 
continues to work closely with the portfolio companies, attempting to 
minimise any adverse impact and it is a great credit to the quality of 
the management of the portfolio companies that the fallout from the 
pandemic has not been even more significant. Until this virus is brought 
under worldwide control, it is impossible to assess its full impact but 
challenges remain. However, it is already clear that the value of almost 
every business in the Company's portfolio has been materially affected, 
a minority have benefitted but most have not. 
 
   At the end of March 2020 the Company held eight investments, 
representing some 16% by value of its investment portfolio, in 
businesses involved in the travel, retail, entertainment and food and 
drink sectors. To date these sectors are amongst those most hard hit by 
the provisions of the lockdown imposed by the UK Government in response 
to the Covid-19 virus. I am pleased to report that all the Company's 
investments in these sectors are continuing to trade and, with one 
possible exception, they are already pursuing revised business 
strategies which hold the potential for a return to commercial viability 
in the short to medium term. It will, however, be some time before the 
value of most of these businesses is again at or above their pre-Covid 
levels. 
 
   The overall impact of the Covid pandemic could be seen in the material 
fall in the valuation of the Company's portfolio at 31 March 2020. On a 
positive note, I can say that since March the trading position of many 
of these businesses has improved, resulting in a modest increase in 
portfolio value in the period to 31 December 2020. On behalf of the 
Board I would like to thank the Manager for the continued work alongside 
the management teams at each and every one of the companies within the 
portfolio. 
 
   PERFORMANCE AND PORTFOLIO ACTIVITY 
 
   During the period Net Asset Value per share increased by 11.3% from 
55.8p at 31 March 2020 to 62.1p at 31 December 2020. Including the 
payment of a 2.8p dividend made on 28 August 2020, NAV total return per 
share at 31 December 2020 was 64.9p, representing a positive total 
return of 16.3%. This positive movement is a result of the strategy and 
business changes throughout the portfolio alluded to above. 
 
   During the period under review the Manager completed three new 
investments and three follow-on investments costing GBP4.6 million and 
GBP1.9 million respectively. The Board and the Manager are confident 
that a number of new investments can be achieved in the year ahead, 
particularly with the increased investment activity in the three months 
to 31 December 2020, which accounts for all of the new and follow on 
investments noted above. Details of each of these new portfolio 
companies can be found in the Manager's Review. 
 
   Foresight Group LLP, the Company's investment manager, continues to see 
a pipeline of potential investments sourced through its regional 
networks and well-developed relationships with advisors and the SME 
community, however, it is also focused on supporting the existing 
portfolio through the Covid-19 pandemic. Following both the successful 
fundraises launched in May 2017 and June 2018, the Company is in a 
position to fully support the portfolio, where appropriate, and exploit 
potential attractive investment opportunities. 
 
   DIVIDS 
 
   An interim dividend of 2.8p per Share was declared on 6 August 2020 
based on an ex-dividend date of 13 August 2020 and a record date of 14 
August 2020. The dividend was paid on 28 August 2020. 
 
   As noted in the prior Annual Report and Accounts and in light of the 
change in portfolio towards earlier stage, higher risk companies, as 
required by the new VCT rules, the Board felt it prudent to adjust the 
dividend policy towards a targeted annual dividend yield of 5% of NAV 
per annum. The Board and the Manager hope that this may be enhanced by 
additional 'special' dividends as and when particularly successful 
portfolio exits are made. The impact of Covid-19 will be taken into 
consideration when the Board considers dividends in the near term. 
 
   Post period end the Board announced the Company's successful sale of FFX 
Group Limited, one of the UK's largest independent suppliers of 
high-quality power tools, fixings and building supplies. The transaction 
generated proceeds of GBP5.7 million at completion and the Company will 
receive up to GBP0.2 million of deferred consideration after 18 months 
subject to certain conditions, indicating a cash on cash return of 4.3x 
the initial investment of GBP1.4 million made in October 2015. On the 
basis of this successful exit, it is the intention of the Board to 
enhance the interim dividend planned in May 2021, compared to the level 
of dividend paid in 2020. 
 
   SHAREHOLDER COMMUNICATION 
 
   As a result of the travel restrictions imposed due to Covid-19, the 
Manager's popular investor forums have been temporarily put on hold. 
Once it is possible to do so, details of both a London event and 
regional events will be sent to shareholders resident in the locality as 
and when they are organised. The Manager held an investor webinar in 
August 2020 and it is the intention of the Manager to hold further 
webinars in June and October of this year. Details of any future events 
will be communicated to investors. 
 
   BOARD COMPOSITION 
 
   The Board continues to review its own performance and undertakes 
succession planning to maintain an appropriate level of independence, 
experience, diversity and skills in order to be in a position to 
discharge all its responsibilities. As noted in the Half-Year report, 
the Board are delighted to announce that Gaynor Coley was appointed to 
the Board on 10 September 2020 and as Chair of the Audit Committee on 19 
November 2020. 
 
   OUTLOOK 
 
   The persisting uncertainty over the full impact of Covid-19 and the 
ongoing changes related to Brexit create truly exceptional challenges 
for every business. The Company invests primarily in developing 
companies which by their nature benefit from general economic growth and 
the current environment places considerable demands upon them and their 
management teams. The Manager's private equity team is well aware of the 
management and business needs of each of the companies within the 
investment portfolio and is working closely with them to help them 
progress during these testing times. 
 
   Until the pandemic is brought under worldwide control there will 
inevitably be further, mainly unhelpful, implications for many UK based 
businesses. Notwithstanding this, the Board and the Manager have been 
impressed by the resilience shown by the significant majority of the 
Company's investments and are optimistic that the existing portfolio has 
potential to add value once the virus has been successfully contained. 
 
   ANNUAL GENERAL MEETING 
 
   The Company's Annual General Meeting will take place on 7 July 2021 at 
1.00pm. Please refer to the formal notice on page 74 of the Annual 
Report and Accounts for further details in relation to the format of 
this year's meeting and the request to observe social distancing 
guidelines in place. 
 
   Shareholders will note that it is proposed by resolution 11 to adopt new 
articles of association ("New Articles"). The key changes to the New 
Articles are to provide for the ability to hold virtual and hybrid 
general meetings. The Board wishes to note its preference is to hold 
AGMs by way of an open meeting and AGMs will only be held virtually 
where absolutely necessary. 
 
   Raymond Abbott 
 
   Chairman 
 
   23 April 2021 
 
   Manager's Review 
 
   Portfolio Summary 
 
   As at 31 December 2020 the Company's portfolio comprised 36 investments 
with a total cost of GBP58.4 million and a valuation of GBP92.4 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 12 to 16 of the 
Annual Report and Accounts . 
 
   During the period, the value of investments held rose by GBP26.2 million, 
driven by deployment of GBP6.5 million into new and follow-on 
investments and an increase in the value of existing investments of 
GBP19.7 million. After a sharp drop in portfolio value in the quarter to 
March 2020 at the peak of uncertainty around Covid-19, the Company's 
portfolio, in aggregate, has seen a recovery, as many of the portfolio 
companies have successfully navigated the new economic landscape, with 
some performing extremely strongly and some heavily impacted by 
Covid-19. 
 
   The investment team remain focused on supporting an annual dividend to 
shareholders of at least 5% of the NAV per share whilst retaining a 
stable NAV. The Company has made reasonable progress against these 
objectives in the period. 
 
   NEW INVESTMENTS 
 
   The Manager has taken a prudent approach to investing during 2020. 
Repeated lockdowns have made it challenging for the Investment Manager 
to meet prospective companies and their teams face to face, an important 
part of assessing investments and developing relationships with 
management teams. The continued economic uncertainty has also made 
ascertaining the underlying value and progress within a business 
difficult to assess, as many sectors have been affected by the pandemic. 
For much of the period there were fewer opportunities coming to market, 
with management teams focused on steering their businesses through 
economic uncertainty. 
 
   Despite these challenges, the Manager has continued to search for high 
quality businesses that have demonstrated resilience during Covid-19. As 
a result, three new investments were completed in December 2020, IMMJ 
Systems, a document management system serving the NHS and other 
healthcare providers, iMist, a manufacturer of fire suppression systems 
and Titania Group, a cybersecurity software business. Behind these, 
there is a strong pipeline of opportunities that the Manager expects to 
convert during 2021. 
 
   IMMJ SYSTEMS LIMITED 
 
   In December 2020 the Company made a c.GBP1.8 million investment into 
IMMJ Systems Limited, an innovative, electronic document management 
solution for the healthcare sector, serving NHS Trusts and private 
providers. Founded in 2015 by a team experienced in enterprise IT and 
NHS technology distribution, IMMJ developed MediViewer, software that 
addresses the challenge of digitising patient records and providing a 
single, easy access interface for clinical caregivers. The investment 
will enable IMMJ to scale the business through new hires in key 
functions such as operations, technology and account management, to 
support the expanding deployment of MediViewer. 
 
   IMIST LIMITED 
 
   In December 2020 the Company invested c.GBP1.6 million into iMist 
Holdings Limted, a manufacturer and installer of water mist fire 
protection systems for homes and residential buildings. iMist was 
founded in 2015 by Tony Sims who has over 20 years' engineering 
experience. iMist has developed its own range of high-pressure water 
mist fire suppression systems. The proprietary solution offers a number 
of benefits over traditional fire sprinkler and lower pressure water 
mist products including more efficient use of water, ease of 
installation and cost effectiveness. The investment will drive further 
growth and development activities across the UK, on the back of the 
current regulatory opportunity. 
 
   TITANIA LIMITED 
 
   In December 2020, the Company invested c.GBP1.3 million into Titania 
Group Limited, a cybersecurity software business. Founded in 2009, 
Titania has grown substantially due to the success of its first product, 
Nipper, which automates the assessment of network devices to accurately 
identify vulnerabilities. The winner of multiple cybersecurity industry 
awards, Titania has over 1,000 customers globally. The investment will 
also be used to enhance sales and marketing efforts for Titania's 
current suite of products. 
 
   FOLLOW ON INVESTMENTS 
 
   The Manager had expected that more portfolio companies would need 
additional capital to support them through difficult trading conditions 
resulting from the various lockdowns, driving an increase in follow-on 
investment. However the portfolio has remained relatively resilient, 
supported by increased monitoring and guidance to portfolio management 
teams by the Manager. The Manager has made follow-on investments into 
three companies during 2020, totalling GBP1.9 million. 
 
   Many companies used forms of Government support, such as the furlough 
scheme and the Coronavirus Business Interruption Loan Scheme, which 
reduced the need for additional equity injections in the period. However, 
as these schemes unwind and while the economic climate remains depressed, 
The Manager anticipates numerous requirements for follow-on investment 
in the coming months. 
 
   ROXY LEISURE LTD 
 
   During December 2020 the Company made a c.GBP1.0 million follow-on 
investment into Roxy Leisure, an entertainment bar group offering 
customers a variety of games such as pool and bowling. Roxy Leisure was 
performing extremely strongly prior to Covid-19 but has been affected by 
repeated lockdowns. The business will use funds to open new sites once 
restrictions ease, aiming to capitalise on increased consumer demand. 
 
   SPEKTRIX LIMITED 
 
   In December 2020, Spektrix a leading enterprise software solution for 
the UK and US arts sector encompassing ticketing, marketing, fundraising, 
analytics and customer relationship management, received a follow-on 
investment of c.GBP0.6 million from the Company. The investment will 
enable Spektrix to capitalise on new opportunities following the 
reopening of the arts sector. 
 
   ACCROSOFT LIMITED 
 
   Also in December 2020, the Company made a GBP0.3 million follow-on 
investment into Accrosoft, a software as a service company with two core 
products focusing on recruitment and parent-teacher-student 
communication. The investment will support the commercialisation of the 
school communications platform, with strong demand seen in the market 
due to the increased role of such technology while schools are closed 
because of Covid-19 restrictions. 
 
   PIPELINE 
 
   At 31 December 2020, the Company had cash in hand of GBP27.9 million, 
which will be used to fund new and follow-on investments, buybacks and 
running expenses. The Manager is seeing a recovery in the pipeline of 
potential investments and has a number of opportunities under 
exclusivity or in due diligence. The Company remains well positioned to 
continue pursuing these potential investment opportunities. 
 
   The onset of Covid-19 and the resulting economic downturn resulted in 
lower new investment activity in 2020. Depending on the length and 
severity of the Covid-19 outbreak and associated restrictions, the 
Manager expects to see a higher proportion of the Company's deployment 
focused on follow-on investments in the short to medium term. 
 
   As the economy recovers from the worst effects of the pandemic, the 
Manager expects demand for funding to increase, driving some 
particularly interesting opportunities for investment. 
 
   EXITS AND REALISATIONS 
 
   Whilst the M&A climate has been challenging in the period, with most 
trade acquirers focused on their core business and private equity 
investors focused on their existing portfolios or on distressed 
acquisitions, the Manager is now seeing acquisition interest returning, 
particularly in the healthcare, technology and ecommerce sectors. 
 
   Fast casual and grab and go eateries have been particularly hard hit 
during the pandemic and to that end with the difficult market outlook as 
well as the remaining uncertainty around the business model, the Company 
realised its position in The Naked Deli, a healthy eating food chain, 
via an initial loan repayment of GBP0.1 million and the subsequent sale 
of share capital and loan note positions for GBP50k to the Company. The 
Naked Deli closed all its stores in line with government guidance in 
March and the outlook for this sector remains extremely challenging. 
There is uncertainty about town centre footfall, particularly for 
lunchtime trade, while employees are still working from home. In 
aggregate, The Naked Deli returned 0.2x money invested to the Company. 
 
   In contrast, post-period end, the Company successfully realised its 
position in FFX Group, one of the UK's largest multi-channel, 
independent suppliers of high-quality power tools, fixings and building 
supplies. The transaction generated proceeds of GBP5.7 million at 
completion and the Company will receive up to GBP0.2 million of deferred 
consideration after 18 months subject to certain conditions, implying a 
cash on cash return of 4.3x the initial investment of GBP1.4 million 
made in October 2015, equivalent to an IRR of c.32%. During the 
investment period, FFX opened a new 60,000 sq ft distribution centre and 
a new head office in Kent. The business updated its brand and launched 
an extensive range of its own products. Since the Company's investment, 
FFX has more than tripled revenues and increased headcount by over 125. 
 
   DISPOSALS IN THE NINE MONTH PERIOD TO 31 DECEMBER 2020 
 
 
 
 
                                 Accounting            Realised   Valuation 
Company              Detail        cost at   Proceeds     loss        at 
                                   date of                         31 March 
                                  disposal     GBP        GBP        2020 
                                    GBP                              GBP 
      The Naked      Full 
       Deli           Disposal      669,000    46,065  (622,935)           - 
         Total disposals            669,000    46,065  (622,935)           - 
 
 
   KEY PORTFOLIO DEVELOPMENTS 
 
   Overall, the value of unquoted investments held rose by GBP26.2 million 
in the period, driven by deployment of GBP6.5 million and an increase in 
value of existing investments by GBP19.7 million. A disciplined approach 
to investment valuations has been maintained in light of Covid-19. In 
the quarter to March 2020, the onset of the Covid-19 pandemic drove 
significant economic uncertainty and the portfolio initially saw a 
substantial decrease in value of GBP20.6 million. In the following 
quarters, as the portfolio adapted to the new economic climate, fair 
values saw a recovery in aggregate. Material changes in valuation, 
defined as increasing or decreasing by GBP1.5 million or more since 31 
March 2020, are detailed below. Updates on these companies are included 
below, or in the Top Ten Investments section on pages 12 to 16 of the 
Annual Report and Accounts. 
 
 
 
 
                                                            Valuation Change 
Company                      Valuation Methodology                (GBP) 
---------------------------  -----------------------------  ---------------- 
Biofortuna limited           Discounted revenue multiple           6,183,364 
---------------------------  -----------------------------  ---------------- 
Innovation Consulting 
 Group Limited               Discounted earnings multiple          2,903,349 
---------------------------  -----------------------------  ---------------- 
FFX Group Limited            Offer proceeds                        2,424,678 
---------------------------  -----------------------------  ---------------- 
Procam Television Holdings 
 Limited                     Discounted earnings multiple          2,314,634 
---------------------------  -----------------------------  ---------------- 
Hospital Services Group 
 Limited                     Discounted earnings multiple          1,666,181 
---------------------------  -----------------------------  ---------------- 
Datapath Group Limited       Discounted earnings multiple          1,546,422 
---------------------------  -----------------------------  ---------------- 
Ixaris Group Holdings 
 Limited                     Discounted revenue multiple         (2,573,874) 
---------------------------  -----------------------------  ---------------- 
 
   PROCAM TELEVISION HOLDINGS LIMITED 
 
   Procam is a broadcast hire company, supplying equipment and crew for 
location TV and film production and also has a division (True Lens 
Services) focused on the manufacture and maintenance of camera lenses. 
During Covid-19, Procam's rental business had to largely close due to 
the halting of television and film production. Conversely, its True Lens 
Services division continued to trade positively, back to pre-Covid-19 
levels. As challenging trading conditions continued, Procam required a 
formal restructuring and the Company supported a sale of the trade and 
assets of Procam's rental division and spun out its True Lens Service 
division into a separate company, supporting a substantial recovery in 
value. The basis of the Procam valuation reflects the loan note value 
and accrued interest attributable to the Company. 
 
   IXARIS GROUP HOLDINGS LIMITED 
 
   Ixaris is a payments platform enabling efficient global payments, 
targeted in particular at the travel sector. The business has seen a 
severe downturn in trading due to the collapse of the travel sector in 
the wake of the pandemic. There remains significant uncertainty about 
when worldwide travel might resume. The Manager has engaged a new chair 
with extensive industry experience who has made a material contribution 
to improving the company's prospects since joining in December. 
 
   Outlook 
 
   On 22 February 2021, Prime Minister Boris Johnson outlined the planned 
route out of lockdown for businesses in England, culminating in the 
lifting of all social restrictions on 21 June 2021 if circumstances 
allow. Businesses of all sizes have faced a very testing 12 months, not 
least with the stop-start dynamic of multiple lockdowns, therefore the 
Prime Minister's political commitment to an 'irreversible' ending of 
lockdown is welcomed, along with the extended support of the Coronavirus 
Job Retention Scheme. It is vital that SMEs are supported through the 
full reopening of UK's economy in order to rebuild consumer and business 
confidence and to enable our retail, hospitality, cultural, leisure and 
tourism sectors to get back to business. Most businesses had fully 
reopened after the first lockdown by September 2020, with the Manager 
supporting its portfolio through a transition to the 'new normal'. 
During the November and current lockdowns, the Manager acted quickly to 
administer the same 'toolbox' of support for the portfolio companies as 
in the first lockdown, to guide and prepare them for a prolonged period 
of uncertainty. The Investment Manager has also been working with 
companies to revise business plans and budgets to manage creditor 
stretch and debt build-up, and to prepare them for a reduction of 
Government support. The Manager is ensuring that finance directors at 
the portfolio companies continue to tightly manage overheads, reduce 
capital expenditure and work through longer-term cost reduction plans 
given the uncertain macro environment. It is important that management 
teams and investors are well prepared for a sustained period of weaker 
consumer and business demand as consumers and businesses adapt to the 
'new normal'. 
 
   While Covid-19 has brought unprecedented disruption, it has also 
prompted many organisations to reassess their business models and take 
action to adapt to a new economic landscape. A number of the Manager's 
portfolio companies have used this as an opportunity to review their 
overall strategy, venture into a new market or launch a new product or 
service. For example, to supplement lost revenues from their core 
business some portfolio companies have procured and provided PPE or 
other protective equipment, such as hand sanitising stations or screens. 
Healthcare and life science investments have also contributed to 
national efforts to defeat the virus by manufacturing Covid-19 testing 
kits. An example of this is portfolio company Mologic, which received a 
grant of c.GBP1m to fund Covid related lateral flow diagnostics 
development. Fellow portfolio company Biofortuna, another diagnostics 
company, has successfully won contracts to manufacture millions of 
Covid-19 PCR testing kits for others. 
 
   Some of the portfolio companies used this time as an opportunity to 
improve online activity and have seen an uptick in revenues as a 
consequence. With the trend towards ecommerce accelerating during 
Covid-19, retail businesses will need to continue embracing this channel 
fully and make it a core part of the overall growth strategy. The 
Manager is working closely with portfolio companies to ensure they are 
well-positioned to capitalise on this opportunity. 
 
   A proportion of the portfolio companies are particularly at risk due to 
the sectors they operate in, such as travel, hospitality and leisure. 
Many of these businesses are now stuck in a prolonged period of closures 
with anticipated re-opening in the next few months. The Manager is 
working closely with these businesses, paying particular attention to 
managing creditors and cash preservation. It is important to highlight 
that some of the Company's leisure investments demonstrated market 
leading site metrics pre- Covid and will have the ability to weather 
this temporary period of reduced trading. Once reopened, even with 
capacity limitations, the Manager expects several of these leisure 
businesses to return to profit and cash generation, thanks to a loyal 
customer base and favourable customer demographic. 
 
   Beyond Covid-19, another factor providing economic uncertainty was 
Brexit, with the Brexit transition period coming to an end on 31 
December 2020. The Manager has worked closely with portfolio companies 
to prepare them to the extent possible. Thanks to the diverse nature of 
businesses in the portfolio, with a combination of businesses which 
really focus on the domestic UK market and some that export and source 
worldwide, the Manager remains confident that the Company is 
well-positioned to endure potential volatility. 
 
   Notwithstanding this uncertain economic backdrop, the Manager continues 
to see encouraging levels of activity from smaller UK companies seeking 
growth capital. The Investment Manager expects this to increase as 
companies begin to recover from the impact of Covid-19, with 
requirements for permanent funding to working capital. VCTs are still 
viewed by many entrepreneurs as an attractive source of capital that 
provide scale-up funding to businesses at an early stage of their growth, 
when other sources of funding may not be readily available or alongside 
other sources of capital, including the government measures for 
supporting businesses during Covid-19. Despite the current challenges of 
Covid-19 in the medium and long term, the UK remains an excellent place 
to start, scale and sell a business, with broad pools of talent and an 
entrepreneurial culture. 
 
   Russell Healey 
 
   Partner and Head of Private Equity 
 
   Foresight Group LLP 
 
   23 April 2021 
 
 
 
 
 
   Audited Income Statement 
 
   for the nine months ended 31 December 2020 
 
 
 
 
                                   Nine months ended      Year ended 
                                   31 December 2020       31 March 2020 
                               Revenue  Capital   Total   Revenue  Capital    Total 
                               GBP'000  GBP'000  GBP'000  GBP'000  GBP'000   GBP'000 
 
Investment holding gains/ 
 (losses)                            -   20,372   20,372        -  (11,081)  (11,081) 
Realised losses on 
 investments                              (623)    (623)            (5,251)   (5,251) 
Income                              67        -       67    3,673         -     3,673 
Investment management fees       (434)  (1,301)  (1,735)    (545)   (1,633)   (2,178) 
Other expenses                   (490)        -    (490)    (594)         -     (594) 
 
(Loss)/ profit on ordinary 
 activities before taxation      (857)   18,448   17,591    2,534  (17,965)  (15,431) 
Taxation                             -        -        -        -         -         - 
(Loss)/ profit on ordinary 
 activities after taxation       (857)   18,448   17,591    2,534  (17,965)  (15,431) 
 
(Loss)/ profit per share:       (0.4)p     9.5p     9.1p     1.3p    (9.2)p    (7.9)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 period. 
 
   The Company has no recognised gains or losses other than those shown 
above, therefore no separate statement of total comprehensive income has 
been presented. 
 
   The Company has only one class of business and one reportable segment, 
the results of which are set out in the Income Statement and Balance 
Sheet. 
 
   There are no potentially dilutive capital instruments in issue and, 
therefore, no diluted earnings per share figures are relevant. The basic 
and diluted earnings per share are, therefore, identical. 
 
   The notes on pages 58 to 73 of the Annual Report and Accounts form part 
of these financial statements. 
 
   Audited Reconciliation of Movements in Shareholders' Funds 
 
 
 
 
                           Called-up   Share      Capital       Special 
                             share     premium   redemption   distributable   Capital   Revaluation 
  Nine months ended         capital    account    reserve       Reserve^      reserve^    reserve     Total 
  31 December 2020          GBP'000    GBP'000    GBP'000        GBP'000      GBP'000     GBP'000     GBP'000 
As at 1 April 2020             1,948    79,443          503          63,127   (49,990)       13,669   108,700 
Share issues in the 
 period*                          11       578            -               -          -            -       589 
Expenses in relation 
 to share issues**                 -      (28)            -               -          -            -      (28) 
Repurchase of shares            (20)         -           20         (1,085)          -            -   (1,085) 
Cancellation of share 
 premium                           -  (12,535)            -          12,535          -            -         - 
Realised losses on 
 disposal of investments           -         -            -               -      (623)            -     (623) 
Investment holding 
 gains                             -         -            -               -          -       20,372    20,372 
Dividends paid                     -         -            -         (5,413)          -            -   (5,413) 
Management fees charged 
 to capital                        -         -            -               -    (1,301)            -   (1,301) 
Revenue loss for 
 the period                        -         -            -           (857)          -            -     (857) 
As at 31 December 
 2020                          1,939    67,458          523          68,307   (51,914)       34,041   120,354 
 
   *relating to the dividend investment scheme. 
 
   ** Expenses in relation to share issues relate to trail commission for 
prior years' fund raising. 
 
   ^Reserve is available for distribution, total distributable reserves at 
31 December 2020 are GBP16,393,000 (31 March 2020: GBP13,137,000). 
 
 
 
 
                           Called-up   Share      Capital       Special 
                             share     premium   redemption   distributable   Capital   Revaluation 
  Year ended 31 March       capital    account    reserve       Reserve^      reserve^    reserve     Total 
  2020                      GBP'000    GBP'000    GBP'000        GBP'000      GBP'000     GBP'000     GBP'000 
As at 1 April 2019             1,736    63,676          475          70,094   (43,106)       24,750   117,625 
Share issues in the 
 year                            240    16,481            -               -          -            -    16,721 
Expenses in relation 
 to share issues                   -     (714)            -               -          -            -     (714) 
Repurchase of shares            (28)         -           28         (1,674)          -            -   (1,674) 
Realised losses on 
 disposal of investments           -         -            -               -    (5,251)            -   (5,251) 
Investment holding 
 losses                            -         -            -               -          -     (11,081)  (11,081) 
Dividends paid                     -         -            -         (7,827)          -            -   (7,827) 
Management fees charged 
 to capital                        -         -            -               -    (1,633)            -   (1,633) 
Revenue loss for 
 the year                          -         -            -           2,534          -            -     2,534 
As at 31 March 2020            1,948    79,443          503          63,127   (49,990)       13,669   108,700 
 
 
   The notes on pages 58 to 73 of the Annual Report and Accounts form part 
of these financial statements. 
 
   Audited Balance Sheet 
 
   at 31 December 2020                                                                                        Registered number: 03506579 
 
 
 
 
 
 
 
 
 
                                  As at 31 December  As at 31 March 
                                     2020 GBP'000     2020 GBP'000 
Fixed assets 
Investments held at fair value 
 through profit or loss                      92,441          66,206 
Current assets 
Debtors                                         162             726 
Cash and cash equivalents                    27,862          41,872 
                                             28,024          42,598 
Creditors 
Amounts falling due within one 
 year                                         (111)           (104) 
Net current assets                           27,913          42,494 
Net assets                                  120,354         108,700 
Capital and reserves 
Called-up share capital                       1,939           1,948 
Share premium account                        67,458          79,443 
Capital redemption reserve                      523             503 
Special distributable reserve                68,307          63,127 
Capital reserve                            (51,914)        (49,990) 
Revaluation reserve                          34,041          13,669 
Equity shareholders' funds                  120,354         108,700 
Net asset value per share: 
                                  62.1p              55.8p 
 
 
   The financial statements were approved by the Board of Directors and 
authorised for issue on 23 April 2021 and were signed on its behalf by: 
 
   Raymond Abbott 
 
   Chairman 
 
   23 April 2021 
 
   The notes on pages 58 to 73 of the Annual Report and Accounts form part 
of these financial statements. 
 
   Audited Cash Flow Statement 
 
   for the nine months ended 31 December 2020 
 
 
 
 
                                              Nine months ended   Year ended 
                                              31 December 2020   31 March 2020 
                                                   GBP'000          GBP'000 
Cash flow from operating activities 
Loan interest received on investments                       136            559 
Dividends received from investments                           -          2,835 
Deposit and similar interest received                        28            238 
Investment management fees paid                         (1,283)        (2,579) 
Secretarial fees paid                                     (119)          (169) 
Other cash payments                                       (349)          (418) 
 
Net cash (outflow)/ inflow from operating 
 activities                                             (1,587)            466 
 
Cash flow from investing activities 
Purchase of investments                                 (6,532)        (8,361) 
Net proceeds on sale of investments                          46            434 
Net proceeds on deferred consideration                        -             31 
Net cash outflow from investing activities              (6,486)        (7,896) 
 
Cash flow from financing activities 
Proceeds of fund raising                                      -         25,586 
Expenses of fund raising                                   (28)          (336) 
Repurchase of own shares                                (1,085)        (2,067) 
Equity dividends paid                                   (4,824)        (7,066) 
Net cash (outflow)/ inflow from financing 
 activities                                             (5,937)         16,117 
--------------------------------------------  -----------------  ------------- 
Net (outflow)/ inflow of cash for the 
 year                                                  (14,010)          8,687 
Reconciliation of net cash flow to movement 
 in net funds 
(Decrease)/ Increase in cash and cash 
 equivalents for the year                              (14,010)          8,687 
Net cash and cash equivalents at start 
 of year                                                 41,872         33,185 
Net cash and cash equivalents at end of 
 year                                                    27,862         41,872 
 
 
 
 
 
 
 
 
 
                                    At 1 April                 At 31 December 
                                       2020       Cash flow         2020 
Analysis of changes in net debt      GBP'000       GBP'000        GBP'000 
Cash and cash equivalents               41,872     (14,010)            27,862 
 
 
   The notes on pages 58 to 73 of the Annual Report and Accounts form part 
of these financial statements. 
 
   Notes 
 
 
   1. These are not statutory accounts in accordance with S436 of the Companies 
      Act 2006. The full audited accounts for the nine months ended 31 December 
      2020, 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 nine 
      month period ended 31 December 2020 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 nine months ended 31 December 2020.  All investments held by the 
      Company are classified as 'fair value through the profit and loss'. 
      Unquoted investments have been valued in accordance with IPEV guidelines. 
      Quoted investments are stated at bid prices in accordance with the IPEV 
      guidelines and Generally Accepted Accounting Practice. 
 
   3. Copies of the Annual Report will be sent to shareholders and can be 
      accessed on the following website: www.foresightgroup.eu. 
 
   4. Net asset value per share Net asset value per share is based on net 
      assets at the period end of GBP120,354,000 (31 March 2020: 
      GBP108,700,000) and on 193,859,213 (31 March 2020: 194,826,224) shares, 
      being the number of shares in issue at that date. 
 
   5.   Return per share 
 
 
 
 
                                      Nine months ended    Year ended 
                                       31 December 2020   31 March 2020 
                                           GBP'000           GBP'000 
Total profit/ (loss) after taxation              17,591        (15,431) 
Total profit/ (loss) per share 
 (note a)                                          9.1p          (7.9)p 
Revenue (loss)/profit from ordinary 
 activities after taxation                        (857)           2,534 
Revenue (loss)/profit per share 
 (note b)                                        (0.4)p            1.3p 
Capital profit/ (loss) from 
 ordinary activities after taxation              18,448        (17,965) 
Capital profit/ (loss) per share 
 (note c)                                          9.5p          (9.2)p 
Weighted average number of shares 
 in issue in the year                   194,099,123        195,581,908 
 
   Notes: 
 
 
   1. Total profit/(loss) per share is total profit/(loss) after taxation 
      divided by the weighted average number of shares in issue during the 
      period. 
 
   2. Revenue (loss)/profit per share is revenue (loss)/profit after taxation 
      divided by the weighted average number of shares in issue during the 
      period. 
 
   3. Capital profit/(loss) per share is capital profit/(loss) after taxation 
      divided by the weighted average number of shares in issue during the 
      period. 
 
 
   1. Annual General Meeting 
 
 
   The Company's Annual General Meeting will take place on 7 July 2021 at 
1:00pm. In light of the continuing Covid-19 situation, the meeting will 
be held by way of a closed meeting and shareholders will not be 
permitted to attend. Shareholders will, however, be able to attend 
virtually, but will not be able to vote on the resolutions at the Annual 
General Meeting. Please refer to the formal notice on page 74 of the 
Annual Report and Accounts for further details in relation to the format 
of this year's meeting and the request to observe social distancing and 
travel restrictions in place 
 
 
   1. Income 
 
 
 
 
                                        Nine Months 
                                            ended     Year ended 
                                         31 December   31 March 
                                            2020         2020 
                                           GBP'000      GBP'000 
Loan stock interest                               19         597 
Dividends receivable                               -       2,835 
Deposit and similar interest received             28         241 
Other Income                                      20           - 
                                                  67       3,673 
 
 
 
 
 
 
   1. Investments held at fair value through profit or loss 
 
 
 
 
                        31 December  31 March 
                            2020       2020 
                          GBP'000     GBP'000 
Unquoted investments         92,441    66,206 
                             92,441    66,206 
 
 
 
 
 
 
 
 
 
                                  GBP'000 
Book cost as at 1 April 2020       52,537 
Investment holding gains           13,669 
Valuation at 1 April 2020          66,206 
Movements in the period: 
Purchases at cost                   6,532 
Disposal proceeds                    (46) 
Realised losses                     (623) 
Investment holding gains           20,372 
Valuation at 31 December 2020      92,441 
Book cost at 31 December 2020      58,400 
Investment holding gains           34,041 
Valuation at 31 December 2020      92,441 
 
 
   9.    Related party transactions 
 
   No Director has an interest in any contract to which the Company is a 
party, other than their appointment as directors. 
 
   10.  Transactions with the manager 
 
   Foresight Group LLP earned fees of GBP1,735,000 in the nine month period 
to 31 December 2020 (31 March 2020: GBP3,000. Prior to this Foresight 
Group CI Limited acted as investment manager until 27 January 2020: 
GBP2,175,000). No performance fee was paid or accrued for the period (31 
March 2020: nil). 
 
   Foresight Group LLP is the Company Secretary (appointed in November 
2017) and received, directly and indirectly, for accounting and company 
secretarial services fees of GBP119,000 (31 March 2020: GBP169,000) 
during the period. 
 
   At the balance sheet date there was GBPnil due to or from Foresight 
Group LLP (31 March 2020: GBP452,000 due from Foresight Group LLP). No 
amounts have been written off in the period in respect of debts due to 
or from related parties. 
 
   END 
 
 
 
 

(END) Dow Jones Newswires

April 23, 2021 10:29 ET (14:29 GMT)

Copyright (c) 2021 Dow Jones & Company, Inc.

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