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.
Foresight Enterprise Vct (LSE:FTF)
Historical Stock Chart
From Apr 2024 to May 2024
Foresight Enterprise Vct (LSE:FTF)
Historical Stock Chart
From May 2023 to May 2024