Foresight Vct Share Discussion Threads

[damanko] 17/2/2012 12:27

Ditto fellow mug.....!

Though with the special payment next month I'll have received about 30% of my capital outlay 12 years ago. A few more deals like this may drive the share price north, at which point (if it ever does happen) I may just approach the company and see about selling my shares. A pipe-dream, I hear you saying, and you're probably right. Now I'll get back to my knitting.....

[ferrism] 17/2/2012 12:06

Thanks for posting that, damanko. Perhaps we are finally seeing the success we were expecting from the start. I'm not holding my breath, though!

[damanko] 17/2/2012 10:28

Last June's Interim Report stated that £750,000 had been invested in Autologic, and it was valued then at £3,068,256. The RNS below states a return of 3.4 times original capital, so £2,550,000 should be in the company's coffers, which bodes well for dividends.

Plus the special payment of 7.5p will be paid in the next few weeks, following the earlier sale of APP-DNA. Perhaps things really are getting better for Foresight VCT. We'll see.


Foresight Group sells stake in Autologic generating 3.4 times return for investors

02/02/2012

• UK technology success, Autologic Diagnostic Holdings Ltd ('Autologic'), receives a £46m bid from ISIS Equity Partners to implement a secondary MBO
• Leading SME investor Foresight Group's initial investment on behalf of Foresight VCT, Foresight 2 VCT, Foresight 3 VCT and Foresight 4 VCT generates a 3.4 times return
• Foresight retains a minority shareholding and loan position in the company.

Foresight Group has sold just over 50% of its stake in Autologic to a new company funded by ISIS Equity Partners in a secondary management buyout at an enterprise value of £46m.

Foresight invested £3.75m in Autologic in February 2009, on behalf of the Foresight VCT, Foresight 2 VCT, Foresight 3 VCT and Foresight 4 VCT. The secondary buyout by ISIS Equity Partners, together with a recapitalisation of the company completed in July 2011, has returned £12.7m in aggregate to the four funds, representing a return of 3.4 times the original investment. Foresight is retaining a minority shareholding and loan position in the new company

Autologic is one of the fastest growing vehicle diagnostic services companies in the world, with a growth of 125% over the past two years. It supplies independent garages with diagnostic solutions and back-up support to enable them to service and repair leading car brands. Autologic is based in Oxfordshire, with offices in New York and Hong Kong and the management team is led by Kevin Finn and Peter Toland, along with Technical Director Ian Jones.

Donald Maclennan, Partner at Foresight Group, commented: "The Autologic team has done a terrific job in continuing to grow the business in challenging markets. We are delighted to be retaining a shareholding in this dynamic business as the management continues to develop it into the leader in its field. Autologic is typical of the growth capital investments Foresight makes in UK SMEs; an exceptional management team, profitable, high growth, a growing global market and a sustainable competitive advantage."

This transaction highlights the role that VCTs play in funding UK SMEs and in particular in providing growth capital at a time when traditional bank funding is scarce. Foresight is one of the leading investors in UK SMEs.

ENDS

[ferrism] 13/12/2011 20:40

Couldn't have put it better. I don't mind being described as a mug by a fellow sufferer! The only consolation I have is that I did buy Baronsmead VCT2 at the
same time which has paid me back my whole investment in dividends so it's now free income. If only I hadn't bothered with any other VCT's.
It's depressing to think FTV will probably still be under water when I'm under the ground!

[damanko] 13/12/2011 19:16

Quite right ferrism, and I guess between us we have 20+ years holding this. What a pair of mugs.......!

Having said that, have to hope for a few more exits like the recent one. As you know the management group will purchase back shares, which may be the best route to sell.

Note that almost 88,000 shares were traded today, so perhaps volume like this will also drive up the price (in the short term at least).

I too haven't sold any (more fool me), but should the price continue to creep towards what we paid for FTV 'C' all those years ago........ a way to go yet though.

[zutalors] 13/12/2011 14:34

Many thanks ferrism, just what I thought.

[ferrism] 13/12/2011 12:24

Never tried selling, ZUTALORS, but they seem to be very thinly traded and spreads are horrible. The only serious buys are repurchases by the managers.

[zutalors] 13/12/2011 11:44

Looks interesting but how easy are the shares to sell once you've bought them ?

[ferrism] 12/12/2011 09:21

Yes, damanko, we are a quiet bunch. It's probably because those of us who invested in 1999 are now just seeing a half decent dividend. Add to that the fact that we've lost half our capital in the process maybe it's not surprising we don't talk about our investing prowess! Let's hope this is the first of many good sales although I'm somewhat sceptical. Everyone is lucky once!
Thanks for posting the data.

[damanko] 10/12/2011 11:45

Sorry, behind the curve on this one, dividend of 7.5p being paid in March 2012. So a nailed on yield of seven and a half percent for any new investors, which is starting to show in the price.

TIDMFTV

Foresight VCT plc
Interim Management Statement for the Quarter Ended 30 September 2011

Foresight VCT plc presents its interim management statement for the quarter
ended 30 September 2011. This constitutes the company's second interim
management statement for the financial year ending 31 December 2011, as required
by the UK Listing Authority's Disclosure and Transparency Rule 4.3.

The unaudited net asset value (NAV) per Ordinary Share as at 30 September 2011
was 123.8p (30 June 2011: 108.8p). The principal reason underlying the uplift
in the NAV was the sale of the investment in App-DNA Group Limited to Citrix
Systems Inc on 26 October 2011. Citrix Systems Inc acquired all of the equity in
App-DNA Group Ltd for a total consideration of $92m and Foresight VCT plc
received initial consideration of GBP7.3m, compared to a last reported carrying
value of GBP4.55m. This equates to a return of approximately 32 times the original
cost of investment. In addition a further GBP0.9 million of escrow amounts,
subject to various warranties, could be receivable by the ordinary shares of
Foresight VCT over the next four years.

The unaudited net asset value (NAV) per Planned Exit Share as at 30 September
2011 was 89.8p (30 June 2011: 93.7p). The Board is not aware of any significant
events or transactions between the date of the NAV and the date of publication
of this Interim Management Statement.

The number of Ordinary Shares in issue at 30 September 2011 was 28,694,271.
During the three months ended 30 September 2011 no shares were issued or re-
purchased by the company for cancellation.

The number of Planned Exit Shares in issue at 30 September 2011 was 6,179,833.
During the three months ended 30 June 2011 no shares were issued or re-
purchased by the company for cancellation.


Net assets of the Ordinary Shares fund at 30 September 2011 comprised the
following:
+-------------------------------------------------------+------+---------------+
| | GBP'000 |% of Net Assets|
+-------------------------------------------------------+------+---------------+
|Unquoted Investments at fair value as determined by the| | |
|Directors |28,622| 80.5|
+-------------------------------------------------------+------+---------------+
|Quoted investments at bid price | 1,061| 3.0|
+-------------------------------------------------------+------+---------------+
|Total venture capital investments |29,683| 83.5|
+-------------------------------------------------------+------+---------------+
|Net Current Assets | 5,847| 16.5|
+-------------------------------------------------------+------+---------------+
| | | |
|Net Assets |35,530| 100.0|
+-------------------------------------------------------+------+---------------+


Net assets of the Planned Exit Shares fund at 30 September 2011 comprised the
following:
+--------------------------------------------------------+-----+---------------+
| | GBP'000|% of Net Assets|
+--------------------------------------------------------+-----+---------------+
|Unquoted Investments at fair value as determined by the| | |
|Directors |3,212| 57.9|
+--------------------------------------------------------+-----+---------------+
|Quoted investments at bid price | 0| 0.0|
+--------------------------------------------------------+-----+---------------+
|Total venture capital investments |3,212| 57.9|
+--------------------------------------------------------+-----+---------------+
|Net Current Assets |2,336| 42.1|
+--------------------------------------------------------+-----+---------------+
| | | |
|Net Assets |5,548| 100.0|
+--------------------------------------------------------+-----+---------------+

Quoted investments are carried at bid price as at 30 September 2011. Unquoted
investments are carried at fair value as at 30 September 2011 as determined by
the directors.

During the three months ended 30 September 2011 the following significant
investment transactions took place (all companies unquoted except where
otherwise indicated):


Ordinary Shares Portfolio

Follow-on investments:

+-----------------+-----------------------------------+-----------------------+
| Name of Company | Business Activity | Amount Invested GBP'000 |
+-----------------+-----------------------------------+-----------------------+
| Silvigen | Integrated biomass fuel solutions | 94 |
+-----------------+-----------------------------------+-----------------------+

Investment disposals:

+---------------------------+---------------------------+-------------+--------+
|Name of Company |Business Activity |Original Cost|Proceeds|
| | | GBP'000 | |
| | | | GBP'000 |
+---------------------------+---------------------------+-------------+--------+
|Autologic Diagnostics |Automotive diagnostic|0 |376 |
| |equipment | | |
+---------------------------+---------------------------+-------------+--------+
|Clarity Commerce Solutions|Hospitality, leisure and|675 |159 |
|(AIM listed) |customer engagement| | |
| |software | | |
+---------------------------+---------------------------+-------------+--------+
|AppDNA |Application migration|83 |83 |
| |software | | |
+---------------------------+---------------------------+-------------+--------+
|Trilogy Communications |Broadcast and defence|23 |23 |
| |communications | | |
+---------------------------+---------------------------+-------------+--------+
|Rivington Street Holdings |Network security software |17 |16 |
+---------------------------+---------------------------+-------------+--------+
|Sarantel (AIM listed) |Antennas for mobile phones |556 |15 |
+---------------------------+---------------------------+-------------+--------+


Planned Exit Shares Portfolio

New investment:

+-------------------+----------------------------+-----------------------+
| Name of Company | Business Activity | Amount Invested GBP'000 |
+-------------------+----------------------------+-----------------------+
| Porchester Equity | Investment Holding Company | 625 |
+-------------------+----------------------------+-----------------------+

Investment disposals:

None

[damanko] 10/12/2011 11:35

To any holders still left out there.... (and what a quiet bunch we are...). Note the recent hike in the share price, presumably due to the following:

Foresight Group sells APP-DNA for US$92m - Generating 32x return for its its investors
26/10/2011
•UK software success, App-DNA, attracts a US$92m bid from NASDAQ-listed Citrix Systems
•Leading SME investor Foresight Group's investment of £750k on behalf of Foresight VCT and Income & Growth VCT to generate up to £25m
•Foresight VCT to achieve stellar returns for investors (32x, representing a 240% IRR) on sale of its portfolio company App-DNA to Citrix Systems
Foresight Group has reached conditional agreement for the sale of App-DNA Group Limited (App-DNA) to Citrix Systems Inc. (NASDAQ: CTXS), which is acquiring all of the equity in App-DNA for a total consideration of $92m (£57.6m), subject to completion adjustments. It is expected that completion will occur during November 2011, once certain administrative conditions have been fulfilled.

Foresight invested £771k in the company, on behalf of the Foresight VCT and The Income & Growth VCT. The acquisition by Citrix will return up to £25m in aggregate to the two funds, representing a return of 32x the original investment.

App-DNA, which was spun out of Foresight portfolio company Camwood in 2010, has become the leading specialist in Application Migration and Compatibility Software including App-DNA™ and AppTitude™ which it distributes to blue chip companies around the world. The company has created 80 jobs since the investment by Foresight and has offices in London, Chicago, Sydney and Paris.

Russell Healey, a Partner at Foresight Group, commented: "The App-DNA team has done an incredible job in taking the company from its spin-out from Camwood and developing it into the global leader in its field. App-DNA is typical of the growth capital investments Foresight makes in UK SMEs; an exceptional management team, profitable, high growth, a large global market and a sustainable competitive advantage."

"This transaction highlights the role that VCTs play in funding UK SMEs, and in particular in providing growth capital at a time when traditional bank funding is scarce. Foresight is one of the leading investors in UK SMEs, with an investment team of eight professionals and investments in over 50 companies across a wide range of sectors thoughout the UK."

App-DNA was one of four companies in the Foresight portfolio that were recently profiled in the Sunday Times Tech Track 100 supplement.

Have contacted the group regarding the possibility of a special dividend being paid. Anyone interested still out there? Latest accounts (before the sale of APP DNA to Citrix Systems) shows APP DNA on the books at a cost of £173,212.00 and a valuation of £4,554,321.00. This was dated 30th June 2011.

[a0469514] 13/4/2011 18:06

Do the new Foresight VCT shares have a different symbol or are they still LSE:FTV? Since they almost halved the number of shares which I hold in the reconstruction you would think that the price per share should have almost doubled. It has gone up a bit but not as much as it should.

Xylos

[damanko] 28/3/2011 12:46

linhur,

No, I won't. In fact the rebasing of the NAV to £1.00 & the consolidation of the old shares into new - actually seems to have enhanced the monetary vale of my holdings by a few thousand pounds.

As an original buyer / holder of Foresight VCT "C" shares of 11 years vintage, I'm still several thousand pounds down on my investment.

I won't be selling - as - you never know, there may be some value in some of the older investee companies to be had.....

I've read quite a few press articles about Closed Loop Recycling, which now deals with materials in London that were formerly sent to China. I imagine if their success continues they will seek a listing, or be sold via the trade route. As you'll know Foresight VCT (both the ordinary & "C" class shares) - was originally a technology VCT, but the dot com bust put paid to much of that, and they've reinvented themselves as some sort of green VCT. Have to hope lots of Guardian readers invest in the open offer..............

Regards
damanko

[linhur] 28/3/2011 12:35

damanko

are you taking part in the enhanced buy back opportunity?

I would appear to be caught as my current shares were purchased in April 2007 and there will be a HMRC drag back of the VCT relief on sale.

Thank you for keeping this thread going.

The Keydata merger seems neutral and Foresight management still have it all to do in providing shareholder returns rather than management fees and incentives!

kind regards
linhur

[timbo003] 02/3/2011 18:12

I do not think it will make a lot of difference, other than it may make it easier to raise new funds in the future.

[damanko] 02/3/2011 17:54

Just in case there is anyone still out there....................:

Today's RNS atated that the consolidation is on the ratio of one (old) FTV share x 0.554417986 = 1 new FTV share, which will (apparently) have a NAV of £1.00.

So, (say) a holding 10,000 old shares will now be: 5544 shares.

Any comments................?

[damanko] 28/1/2011 10:41

And in a nutshell:

StockMarketWire.com - The boards of Foresight VCT, Keydata 1 and Keydata 2 have reached agreement on recommended proposals for a merger.

They say the merger should result in an enlarged company having net assets of over £30m with the strategic benefit of increasing Foresight VCT's footprint in the environmental infrastructure sector.

The merger is expected to cut annual running costs by £208,000

The merger will be effected by Keydata 1 and Keydata 2 being placed into members' voluntary liquidation.

The scheme is conditional upon the approval by the shareholders of Foresight VCT and Keydata 1 and Keydata 2.

[damanko] 28/1/2011 10:40

From today's RNS (28/01/2011) - if anyone is still interested in this VCT / thread.......:

Ordinary Share Reconstruction

Following the issue of New Shares to Keydata VCTs Shareholders pursuant to the Scheme Foresight VCT intends to reconstruct its Ordinary Share capital so that the net asset value per Ordinary Share will be, as nearly as practicable, 100 pence per share. This will be done by the ratable redesignation of a proportion of the Ordinary Shares then in issue as nominally valued Deferred Shares and their subsequent off-market repurchase by Foresight VCT for a nominal consideration of one pence in aggregate. The purpose of the Ordinary Share Reconstruction is to make the Ordinary Shares more attractive to potential new investors should Foresight VCT decide to raise further capital in the future by the issue of new Ordinary Shares. A copy of the contract for this off-market purchase of Deferred Shares may be inspected at the registered office of Foresight VCT for the period of 15 days prior to the Foresight EGM and at the meeting itself.



The Deferred Shares will only have a nominal value because, as a class, the Deferred Shares will have restricted dividend rights, will not carry any rights to receive notice of, or to attend or vote at EGMss, will on a winding up be entitled only to 1p for every 1,000,000 Deferred Shares (with no further right to participate in any surplus assets of Foresight VCT), and will be capable of being purchased by Foresight VCT at any time for an aggregate consideration of 1p. If resolution number 2 to be proposed at the Foresight EGM is passed the Directors will be authorised to enter into an off-market contract to purchase all the issued Deferred Shares for an aggregate amount of 1p for all of the Deferred Shares and Foresight VCT's net asset value will increase to 100p per Ordinary Share. Shareholders do not need to take any action following the Foresight EGM.

[damanko] 16/11/2010 13:56

Up 15% in a day, and not a comment...... guess old(er) holders lost faith in this bunch long ago. The last report I read - of investee companies contained within the FTV stable, inspired little.

A collection of private outfits showing not too much promise (with most written down in carrying value)- and, even worse - a few quoted companies with problems of one sort of another, share prices bumping along the bottom.

Still, 15% may mean something is going on, other than just the merger stuff with Keydata VCT's 1 and 2.

[damanko] 01/9/2010 09:47

This comment on the proposed "Merger" from Citywire:

Investors in the Keydata Income VCTs 1 and 2 will initially receive shares in Foresight VCT worth less than their original holdings under the terms of the merger between the three funds.

The boards of the three VCTs have agreed terms for the merger that will see Keydata investors receiving shares in Foresight based only on the physical valuation of the funds' renewable energy assets, mainly equipment held in storage and cash.

'As a consequence of the exclusion of the future operational value of these assets, this physical valuation will be significantly lower than the last announced net asset value (NAV) of the shares of the Keydata VCTs,' read a statement issued by the VCTs.

However, investors will be entitled to a deferred consideration in three years' time that could take account of the future value of the assets produced when they are generating electricity.

'It is anticipated that, if the plant is operationally successful, the value of the deferred consideration will compensate Keydata shareholders for the difference between the physical valuation of the assets at the time of merger and the NAV of their shares in Keydata VCTs at the time (minus costs).'

Asset manager Foresight Group has secured £3 million to fund the development of the Keydata VCT assets.

The boards of the Keydata VCTs 1 and 2 announced in May that they were to merge with the Foresight VCT.

The Keydata VCTs are separate legal entities to Keydata Investment Services and so were not hit by its administration last year.

[damanko] 01/9/2010 09:45

The guts of today's RNS:

Foresight VCT plc

Merger Update

The Boards of Foresight VCT plc and Keydata Income VCT 1 plc and Keydata Income VCT 2 plc (together "the Companies") today announce that, following the merger talks announcement on 19 May 2010, terms for the merger of the Companies have been agreed between their respective Boards.

The merger requires the approval of the Companies' shareholders and HMRC and would be effected pursuant to a scheme of reconstruction under s.110 of the Insolvency Act 1986 whereby the assets and liabilities of Keydata Income VCT 1 plc and Keydata Income VCT 2 plc (the Keydata VCTs) would be transferred to Foresight VCT plc in consideration for the issue of Foresight VCT plc ordinary shares directly to the shareholders of the Keydata VCTs. A merger effected on this basis would be outside the City Code on Takeovers and Mergers.

For the purposes of the merger the underlying value of the assets owned by the Keydata VCTs is considered to be made up of two component parts: the physical valuation of the assets (mainly engines and gasification equipment in storage and cash at bank) and the future operational value of the assets once they are generating electricity and potentially inputting to the National Grid.

In recognition of both the current physical valuation and future operational value of these assets, it is proposed that the proceeds of the merger for the Keydata VCTs' shareholders should be satisfied in two tranches:

Initially, on the date of the merger, ordinary shares in Foresight VCT plc will be issued to Keydata VCT shareholders based on a physical valuation of the Keydata VCTs assets at that time; and

Further entitlement to additional ordinary shares in Foresight VCT plc shares will be granted as deferred consideration to Keydata VCTs' shareholders. This deferred consideration will be issued after 30 September 2013 giving sufficient time for the plant to be built and the assets to achieve necessary performance milestones, on which the deferred consideration payment is dependant.

The Board of Foresight VCT believe that the above structure recognises the execution risks that Foresight VCT plc will be assuming as a consequence of the proposed merger and the current and potential value of the assets of the Keydata VCTs.

Foresight Group, the Companies' investment manager, has secured commitments from Foresight VCT plc and other funds managed by Foresight Group to invest a further £3 million in the project which reflects their confidence that a successful outcome can be achieved.

The Companies expect to convene general meetings to vote on the proposals during October 2010 and full details of the terms of the proposed merger will be published in the coming weeks.



John Gregory
Chairman
Telephone: [phone]
Email: [e-mail]
1 September 2010

Any Keydata shareholders out there care to comment? I'm not familiar with the plant mentioned, nor the possible revenue stream to come from National Grid, presumably when gas/electricity is sold back to the utility. Will do some digging.......

[damanko] 18/5/2010 12:56

Any holders of FTV still active and alive? If so, the above RNS merits interest. I confess to having no knowledge of Keydata's 2 VCT's, but will do some research and post soon. Any Keydata shareholders out there, please give us your thoughts.

[damanko] 16/5/2008 13:41

Glyn, I'll hunt it out over the weekend and email it to you. Will be up to date bid price wise, however the 5p dividend will have been paid out of the reserves.

Still a reasonably interesting mix of unquoted in the portfolio.

Regards

[glyn celyn] 16/5/2008 13:24

damanko
If you're out there still your holdings spread sheet would be much appreciated
Many thanks
Glyn

[damanko] 04/3/2008 19:34

tim,

the whacky thing is that a week/ten days ago one could have bought FTV at 43p, received a 5p dividend this week, then just hung on until the ex-dividend price (as well as the uplift in NAV which will come, you only have to look at the figures) - sorts itself out. As it will.

Although I have been a holder for 8 years, I am not a huge fan of the management. However, looking at the figures (which you now have...), it seems pretty obvious.

Either I am missing something, or it is as I write. I'll get back in, say, 3 or 4 months (an absolute second in the life of a VCT...), and we'll see how this has panned out.