Foresight 5 VCT PLC : Interim Management Statement
22 December 2011 - 6:00PM
UK Regulatory
TIDMFRF
Foresight 5 VCT plc
Interim Management Statement for the Quarter Ended 30 September 2011
Foresight 5 VCT plc presents its interim management statement for the quarter
ended 30 September 2011. This constitutes the company's third interim
management statement for the financial period ending 30 November 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 17.4p (30 June 2011: 19.1p), the NAV per C Share as at 30 June 2011 was
60.7p (30 June 2011: 71.3p). 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 other than as shown below.
Portfolio Review
The unaudited results for the quarter to 30 September 2011 show a decrease of
8.9% in net asset value (NAV) per Ordinary Share to 17.4p per Share as at 30
September 2011 from 19.1p per Share as at 30 June 2011 (31 March 2011: 19.5p per
Share). The overall performance of the portfolio over the quarter has been
stable, with improving performances from Factory Media Limited and The Fin
Machine Company Limited resulting in increased valuations, counterbalanced by a
disappointing performance by Connect2 Media Limited, resulting in a reduced
valuation for this investment.
The decrease in NAV reflects the need, as part of the agreed merger with Acuity
VCT 3 and Foresight 4, to provide fully for the remaining costs of terminating
the appointment of Iona Capital Limited (previously Acuity Capital Management
Limited), the Company's previous investment manager. Without this provision,
which is equivalent to 1.6p per share, the net asset value would have remained
unchanged. As a result of this provision in the merger NAV, Foresight 5
shareholders will effectively pay no management fees until 24 August 2012.
The net asset value per C Share as at 30 September 2011 has decreased by 14.9%
to 60.7p per C Share from 71.3p per C Share as at 30 June 2011 (31 March
2011: 70.8p per C Share). The C Share class only holds one investment; Connect2
Media. This decrease reflects the impact of both of the above provision and a
reduction in the valuation of the investment in Connect2 Media.
As the Board believed the Company was cash constrained and, if so required, was
unable to contribute to the potential funding requirements of several of its
investee companies, an Offer to shareholders was announced on 22 July 2011 on
the basis of one new ordinary share at a price of 14p per share for every ten
existing shares then held. The Board and Foresight were pleased that this was
oversubscribed, raising the maximum GBP761,000 and thereby creating an element of
investment flexibility.
Since June, when the results for the Half Year to 31 March 2011 were announced,
the overall performance of the portfolio has been relatively stable. The
performances of several investee companies have improved or remained steady.
Factory Media continues to trade well, which is reflected in an increased
valuation of GBP885,005. The new management team at The Fin Machine have made
good progress in turning round this substantial engineering business, which is
similarly reflected by an increased valuation of GBP571,740. However, relatively
poor performances by Financial News Publishing and Connect2 Media have resulted
in reductions in valuations of GBP324,380 and GBP685,658 respectively since 30 June
2011. A net provision of GBP138,623 has been made for Foresight 5's share of the
costs of the proposed merger with Acuity VCT 3, Foresight Clearwater and
Foresight 4 VCT.
A loan repayment of GBP280,000 was received from Hallmarq which also continues to
trade well. As a result of poor trading conditions and so failing to meet its
banking covenants, Red Reef Media was placed into administration in September
with no prospect of any recovery. This investment was previously valued at zero
as at 30 June 2011. The investment in AIM listed Zamano, the only remaining AIM
listed investment, was sold in October 2011 realising GBP31,250 which compares to
its carrying value of GBP73,125 as at 30 June 2011.
In July 2011, a further GBP120,000 was invested in Financial News Publishing
Limited and GBP250,000 invested in The Fin Machine in October 2011.
Share Capital
At 30 September 2011, there were 59,789,406 Ordinary Shares in issue. There were
5,439,493 issues of shares during the three months ended 30 September 2011.
During the period, no shares were repurchased by the company for cancellation.
At 30 September 2011, there were 777,589 C Shares in issue. There were no issues
of shares during the three months ended 30 June 2011. During the period, no
shares were repurchased by the company for cancellation.
The net assets of the Ordinary Shares at 30 September 2011 comprised the
following:
GBP'000 % of Net Assets
Unquoted Investments at fair value as determined by the
Directors 10,174 98.0
Quoted investments at bid price 31 0.3
-------- ----------------
Total venture capital investments 10,205 98.3
Net Current Assets 175 1.7
-------- ----------------
Net Assets 10,380 100.0
-------- ----------------
The net assets of the C Shares at 30 September 2011 comprised the following:
GBP'000 % of Net Assets
Unquoted Investments at fair value as determined by the
Directors 35 7.4
Quoted investments at bid price 0 0.0
------- ----------------
Total venture capital investments 35 7.4
Net Current Assets 437 92.6
------- ----------------
Net Assets 472 100.0
------- ----------------
Quoted investments are stated at bid price as at 30 September 2011. Unquoted
investments are stated 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:
Ordinary Shares Portfolio
Follow-on investments:
+-------------------------+--------------------------+---------------------+
|Name of Company |Business Activity |Amount Invested GBP'000|
+-------------------------+--------------------------+---------------------+
|Financial News Publishing|Marketing service provider|120 |
+-------------------------+--------------------------+---------------------+
Investment disposals:
+---------------------------+---------------------------+-------------+--------+
|Name of Company |Business Activity |Original Cost|Proceeds|
| | | GBP'000 | |
| | | | GBP'000 |
+---------------------------+---------------------------+-------------+--------+
|Hallmarq Veterinary Imaging|MRI veterinary service|280 |280* |
|Limited |provider | | |
+---------------------------+---------------------------+-------------+--------+
*Repayment of loan stock.
C Shares Portfolio
Follow-on investments:
There were no investments or disposals in the quarter.
For further information please contact:
Gary Fraser, Foresight Group: 01732 471 800
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Foresight 5 VCT PLC via Thomson Reuters ONE
[HUG#1573300]
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