Foresight Enterprise VCT plc - Half-year report
FORESIGHT ENTERPRISE VCT PLC
Summary
- Total net assets £123.5 million.
- An interim dividend of 4.2p per share was paid on 18 June 2021,
returning £8.1 million to Shareholders.
- The portfolio value has increased by £11.9 million in the last
six months.
- Net Asset Value per share increased by 2.7% in the period from
62.1p at 31 December 2020 to 63.8p at 30 June 2021. Including the
payment of a 4.2p dividend made on 18 June 2021, NAV total return
per share at 30 June 2021 was 68.0p, representing a positive total
return of 9.5% in the period.
Chairman’s StatementI am pleased to present the unaudited
Half-Yearly Report for Foresight Enterprise VCT plc for the period
ended 30 June 2021.
Material events during the periodBefore providing other
details, I would like to draw attention to 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 and challenges
remain.
The overall impact of the COVID-19 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 so far this year the
trading position of most of these businesses has significantly
improved, resulting in an £11.9 million increase in portfolio value
in the six months to 30 June 2021.
The end of the Brexit transition period on 31 December 2020 has
created some economic uncertainty. The Manager has engaged with
portfolio companies to prepare and advise them as some encounter
supply chain challenges and experience staffing issues. Thanks to
the diverse nature of the portfolio, with a combination of
businesses focused on the domestic UK market and some that export
and source worldwide, the Board remains confident that the Company
is well-positioned to endure potential volatility.
Performance and portfolio activityDuring the period Net
Asset Value per share increased by 2.7% from 62.1p at 31 December
2020 to 63.8p at 30 June 2021. Including the payment of a 4.2p
dividend made on 18 June 2021, NAV total return per share at 30
June 2021 was 68.0p, representing a positive total return of 9.5%.
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 one follow‑on investment costing £4.1 million and
£1.0 million respectively as well as announcing the sale of its
investment in FFX Group Limited, generating a return of 4.3x on the
original investment. Additionally, after the period end, the
Manager completed one new investment and two follow-on investments
costing £2.4 million and £0.9 million respectively as well as
announcing the sale of its investment in Mologic Ltd, generating a
return of 3.1x on the original investment. Also in August 2021 the
Company sold its investment in Ixaris Group Holdings Limited. The
Board and the Manager are confident that a number of new and
follow‑on investments can be achieved in the remainder of the 2021
year, particularly with the increased investment activity noted
above. Details of each of these new, existing and former portfolio
companies can be found in the Manager’s Review.
Foresight Group LLP, the Company’s investment manager, continues
to see a strong pipeline of potential investments sourced through
its regional networks and well‑developed relationships with
advisers 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 exploitpotential attractive
investment opportunities.
DividendsAn interim dividend of 4.2p per share was
declared on 20 May 2021 based on an ex-dividend date of 3 June 2021
and a record date of 4 June 2021. The dividend was paid on 18 June
2021.
As noted in the 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.
Shareholder communicationWe were disappointed that so far
this year we still have not been able to meet with Shareholders in
person as a result of the travel restrictions imposed due to
COVID-19. As an alternative, we invited Shareholders to our virtual
AGM in July, as well as an online investor forum facilitated by the
Manager in June.
We appreciate how popular such events are with our investors and
will continue to hold similar events remotely until it is
considered safe to meet in person. Details of any such future
events will be communicated to investors.
Board compositionThe 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.
OutlookThe 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.
Raymond AbbottChairman28 September 2021
Investment Manager’s ReviewPortfolio summaryAs at
30 June 2021 the Company’s portfolio comprised 38 investments with
a total cost of £62.1 million and a valuation of £104.3 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 14 to 18.
During the six months to June, the value of the investment
portfolio held rose by £11.9 million. This was driven by £5.1
million of new and follow-on investments and an increase of £12.5
million in the value of existing investments offset by a
realisation of £5.7 million. The Company’s portfolio continues to
recover following the impact of COVID-19 over the past 18 months.
Many of the portfolio companies have successfully navigated the new
economic landscape, with some performing extremely strongly while
others continue to adjust.
The Manager remains 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 investmentsThe Manager has taken a prudent approach
to investing since the onset of COVID-19. Repeated lockdowns have
made it challenging for the Private Equity Team to meet prospective
companies and their teams face to face, an important part of
assessing investments and developing relationships with management
teams. However, the Manager and SMEs have adjusted to this new
landscape given companies still wish to grow their businesses
despite the economic uncertainty. The Manager continued to meet new
companies and advisers throughout this period. Relationships are
now forged virtually with deals being introduced and completed
entirely online.
As a result, three new investments were completed in the six
months to 30 June 2021. Further details of each of these are
provided below. Behind these, there is a strong pipeline of
opportunities that the Manager expects to convert during the second
half of 2021.
NorthWest EHealthIn June 2021, the Company invested £1.5
million into NorthWest EHealth, which provides software and
services to the clinical trials market, allowing pharmaceutical
companies and contract research organisations to conduct
feasibility studies, recruit patients and run trials. The
investment will be used to expand the current data network,
enabling the company to support a larger number of trials at a
global level, increase product development and expand the sales and
marketing team to help build long term, strategic
relationships.
Hexarad GroupAlso in June 2021, the Company invested £0.9
million into Hexarad Group, an early stage, high growth healthcare
services company, providing teleradiology services to NHS Trusts
and UK private healthcare customers. Headquartered in London, the
company was founded in 2016 by a group of NHS consultant
radiologists and differentiates itself through its clinical
leadership and technology‑led proposition. The investment into
Hexarad Group will enable the company to support more NHS and
private healthcare customers and further improve customer and
radiologist experience.
Additive Manufacturing TechnologiesFinally, in June 2021,
the Company invested £1.7 million into Additive Manufacturing
Technologies (“AMT”), which manufactures systems that automate the
post-processing of 3D printed parts. AMT originally received seed
funding from Foresight Williams EIS in September 2019. The
additional investment, made alongside further investment from
Foresight Williams, will be used to further commercialise its
products now they have achieved commercial traction.
Callen-Lenz AssociatesPost-period end, in August 2021,
£2.4 million of growth capital was invested into Callen-Lenz
Associates, a provider of innovative technology solutions for
unmanned aerial vehicles, commonly known as drones. Based near
Salisbury, the company develops, designs, and manufactures
vehicles, components, and software for drones globally.
Follow-on investmentsThe 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 the
Manager, which has increased oversight of the portfolio and
provided guidance to portfolio management teams throughout the
pandemic. The Company made one follow-on investment in the period,
totalling £1.0 million, to support further growth opportunities
post‑COVID-19 restrictions lifting. Further details are provided
below.
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, the Manager
anticipates some requirements for follow-on investment in the next
six months.
ClubsparkIn March 2021, Clubspark, a software platform
that provides sports clubs and centres with the ability to manage
operations such as court and equipment booking, received a £1.0
million follow-on investment from the Company. The investment will
be used to expand into other sports and push further into
international markets, such as the US.
Biotherapy ServicesPost-period end, in July 2021 a
follow-on of £0.8 million was also made into Biotherapy Services
(“BTS”), a leading pharmaceutical biotech company. BTS has
developed a wound care treatment for diabetic foot ulcers and the
additional funds will be used to support its clinical trial.
Fertility FocusIn August 2021, post-period end, a £0.2
million follow-on investment was made into Fertility Focus, a
leading fertility monitoring technology company that has developed
registered medical devices that enable women to predict ovulation.
The funding will be used to support a new product launch over the
next 12 months.
PipelineAt 30 June 2021, the Company held cash of £19.3
million, which will be used to fund new and follow-on investments,
buybacks and running expenses and support the Company’s dividend
objectives. 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. As the economy recovers from the worst effects of
COVID-19, the Manager expects demand for funding to increase,
driving some particularly interesting opportunities for
investment.
Exits and realisationsThe M&A climate has remained
surprisingly buoyant during the last 18 months. At first, most
trade acquirers focused on their core business and private equity
investors focused on their existing portfolios or on distressed
acquisitions.
However, since the second half of last year, the Manager has
seen acquisition interest returning, particularly in the
healthcare, technology and e-commerce sectors, with numerous
investment opportunities being presented for consideration.
In January 2021 the Company successfully sold its investment 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 £5.7 million at
completion and the Company will receive up to £0.2 million of
deferred consideration after 18 months subject to certain
conditions. This implies a cash on cash return of 4.3x the initial
investment of £1.4 million, made in October 2015, which is
equivalent to an IRR of c.32%. During the investment period, FFX
Group 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 Group more than tripled revenues and increased
headcount by over 125.
Post-period end, the Company announced the successful sale of
Mologic, a health diagnostics company providing both contract
research services for clients and developing its own range of
proprietary point-of-care diagnostics products. It was sold to
Global Access Health, a not-for-profit company financed by the
Soros Economic Development Fund, the impact investing arm of the
Open Society Foundations and a group of other philanthropic
organisations and investors. The return multiple of 3.1x includes
deferred consideration, which is equivalent to an IRR of c.38%.
During the investment period, the Mologic team has worked with the
Manager to strengthen the business, advancing the product
portfolio, increasing turnover by over 165% and increasing employee
numbers by over 40%. The business has also developed a presence in
the US, opening an office on the East Coast, and developed a
manufacturing partnership in West Africa.
The Company’s investment in Ixaris Group Holdings was sold in
August 2021 to Nium, a global B2B payments platform
Disposals in the six months to 30 June 2021
Company |
Detail |
Accounting cost at date of disposal(£) |
Proceeds (£) |
Realised gain (£) |
Valuation at 31 December 2020 (£) |
FFX Group Limited |
Full Disposal |
1,372,002 |
5,651,7561 |
4,279,754 |
5,723,459 |
1A further £71,703 in deferred consideration has been reflected
in the accounts.
Key portfolio developmentsIn the first six months of the
year, the portfolio has shown further recovery, which started in
the second half of 2020, as businesses adapt to the new economic
climate combined with the gradual easing of restrictions.
The value of unquoted investments held rose by £11.9 million in
the six months to June, driven by deployment of £5.1 million and an
increase in value of existing investments by £12.5 million offset
by a realisation of £5.7 million. A disciplined approach to
investment valuations has been maintained in light of COVID-19.
During the prior period, the value of investments held rose by
£26.2 million, driven by deployment of £6.5 million and an increase
in the value of existing investments of £19.7 million.
Material changes in valuation, defined as increasing or
decreasing by £1.0 million or more since 31 December 2020, are
detailed below. Updates on these companies are included in the Top
Ten Investments section on pages 14 to 18.
Key valuation changes in the period
Company |
Valuation (£) |
Valuation Change (£) |
Galinette Limited |
3,317,884 |
2,057,468 |
Biofortuna Ltd |
8,559,163 |
1,377,859 |
Aerospace Tooling Corporation Limited |
4,072,294 |
1,075,795 |
Hospital Services Group Limited |
4,294,035 |
1,070,285 |
Mologic Ltd |
3,257,940 |
1,055,793 |
OutlookThe United Kingdom has now lifted most of its
COVID-19 restrictions, marking a milestone as the country moves
into a new phase. However, this newfound freedom has brought with
it a raft of challenges, including a sharp rise in new COVID-19
cases and the consequential increase in the percentage of the
population isolating. This has led to staff shortages across the
country, leading to either reductions in capacity or the temporary
closure of businesses.
The rules are changing constantly, and it is clear that COVID-19
will still continue to impact trading in the medium term and
businesses must remain cautious through this transition to the ‘new
normal’. The Manager will continue to provide added support to its
portfolio companies and, if the situation worsens, will be on
standby to administer the same ‘toolbox’ of support as in prior
lockdowns.
On a positive note, the International Monetary Fund believes
that the UK economy will grow faster than previously expected this
year, upgrading the UK’s forecast to 7% growth. Despite this, the
Manager has taken a prudent view, encouraging companies to revise
budgets to manage creditor stretch and debt build-up, particularly
due to the reduction of Government support. The Manager is ensuring
that finance directors at the portfolio companies continue to
tightly manage overheads and critically assess capital expenditure
given the uncertain macro environment.
Whilst 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 Company’s portfolio 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.
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 e-commerce 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.
Beyond COVID-19, the end of the Brexit transition period on 31
December 2020 has also created some economic uncertainty. The
Manager has worked closely with portfolio companies to prepare them
to the best extent possible as some of them encounter supply chain
challenges and experience staffing issues. Thanks to the diverse
nature of the portfolio, with a combination of businesses focused
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 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
government measures for supporting businesses during COVID-19.
Despite the 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 Healeyon behalf of Foresight Group LLPHead of Private
EquityForesight Group LLP28 September 2021
Unaudited half-yearly results and responsibilities
statementsPrincipal risks and Uncertainties
The principal risks faced by the Company are as follows:
- Performance
- Regulatory
- Economic (external shocks)
- Operational
- Financial
The Board reported on the principal risks and uncertainties
faced by the Company in the Annual Report and Accounts for the
period ended 31 December 2020. A detailed explanation can be found
on page 27 of the Annual Report and Accounts which is available on
Foresight Enterprise VCT’s website www.foresightenterprisevct.com
or by writing to Foresight Group LLP at The Shard, 32 London Bridge
Street, London, SE1 9SG. The Board considers that these principal
risks and uncertainties are equally applicable to the remaining six
months of the financial year as they were to the six months under
review.
In the view of the Board, there has been a further change to the
fundamental nature of these risks since the previous report. As the
Brexit transition period ended on 31 December 2020, a number of
portfolio companies have recently experienced increased economic
uncertainty including supply chain challenges and staffing
shortages. The Board and the Manager continue to follow Brexit
developments closely with a view to identifying where changes
affect the areas of the market in which portfolio companies
operate. This enables the Manager to work closely with portfolio
companies, preparing them to the best extent possible to ensure
they are well‑positioned to endure potential volatility.
Directors’ responsibility statementThe Disclosure and
Transparency Rules (‘DTR’) of the UK Listing Authority require the
Directors to confirm their responsibilities in relation to the
preparation and publication of the Half-Yearly Financial Report and
financial statements.
The Directors confirm to the best of their knowledge that:
- The summarised set of financial statements has been prepared in
accordance with FRS 104
- The interim management report includes a fair review of the
information required by DTR 4.2.7R (indication of important events
during the first six months and description of principal risks and
uncertainties for the remaining six months of the year)
- The summarised set of financial statements gives a true and
fair view of the assets, liabilities, financial position and profit
or loss of the Company as required by DTR 4.2.4R
- The interim management report includes a fair review of the
information required by DTR 4.2.8R (disclosure of related parties’
transactions and changes therein)
Going concernThe Company’s business activities, together
with the factors likely to affect its future development,
performance and position, are set out in the Strategic Report of
the Annual Report. The financial position of the Company, its cash
flows, liquidity position and borrowing facilities are described in
the Chairman’s Statement, Strategic Report and Notes to the
Accounts of the 31 December 2020 Annual Report.
In addition, the Annual Report includes the Company’s
objectives, policies and processes for managing its capital; its
financialrisk management objectives; details of its financial
instruments; and its exposures to credit risk and liquidity
risk.
The Company has considerable financial resources together with
investments and income generated therefrom across a variety of
industries and sectors. As a consequence, the Directors believe
that the Company is well placed to manage its business risks
successfully.
The Directors have reasonable expectation that the Company has
adequate resources to continue in operational existence for the
foreseeable future. Thus they continue to adopt the going concern
basis of accounting in preparing the annual financial
statements.
The Half-Yearly Financial Report has not been audited nor
reviewed by the auditors.
On behalf of the BoardRaymond AbbottChairman28 September
2021
Financial StatementsUnaudited Income
Statementfor the six months ended 30 June 2021
|
Six months ended |
Six
months ended |
Nine
months ended |
|
30
June 2021 |
30
September 2020 |
31
December 2020 |
|
(Unaudited) |
(Unaudited) |
(Audited) |
|
Revenue |
Capital |
Total |
Revenue |
Capital |
Total |
Revenue |
Capital |
Total |
|
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
Investment holding gains |
- |
8,253 |
8,253 |
- |
9,990 |
9,990 |
- |
20,372 |
20,372 |
Realised gains/(losses) on
investments |
- |
4,280 |
4,280 |
- |
- |
- |
- |
(623) |
(623) |
Income |
190 |
- |
190 |
324 |
- |
324 |
67 |
- |
67 |
Investment management fees |
(290) |
(871) |
(1,161) |
(295) |
(884) |
(1,179) |
(434) |
(1,301) |
(1,735) |
Other
expenses |
(291) |
- |
(291) |
(270) |
- |
(270) |
(490) |
- |
(490) |
(Loss)/return on ordinary activities
before taxation |
(391) |
11,662 |
11,271 |
(241) |
9,106 |
(8,865) |
(857) |
18,448 |
17,591 |
Taxation |
- |
- |
- |
- |
- |
- |
- |
- |
- |
(Loss)/return on ordinary activities after taxation |
(391) |
11,662 |
11,271 |
(241) |
9,106 |
(8,865) |
(857) |
18,448 |
17,591 |
(Loss)/return per share: |
(0.2)p |
6.0p |
5.8p |
(0.1)p |
4.7p |
4.6p |
(0.4)p |
9.5p |
9.1p |
During the period, the Company shortened its accounting period
from 31 March 2021 to 31 December 2020. Given this change, the
latest half-yearly and annual comparative results shown in this
report are for the six months ending 30 September 2020 and the nine
months ending 31 December 2020.
The total columns of this statement are 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 recognised
gains and losses 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.
Unaudited Balance Sheetat 30 June 2021Registered
Number: 03506579
|
As
at |
As
at |
As at |
|
30
June |
30
September |
31 December |
|
2021 |
2020 |
2020 |
|
£'000 |
£'000 |
£'000 |
|
(Unaudited) |
(Unaudited) |
(Audited) |
Fixed assets |
|
|
|
Investments held at fair value through profit or loss |
104,338 |
76,196 |
92,441 |
Current assets |
|
|
|
Debtors |
149 |
971 |
162 |
Cash
and cash equivalents |
19,258 |
34,884 |
27,862 |
Total current assets |
19,407 |
35,855 |
28,024 |
Creditors |
|
|
|
Amounts
falling due within one year |
(214) |
(124) |
(111) |
Net
current assets |
19,193 |
35,731 |
27,913 |
Net
assets |
123,531 |
111,927 |
120,354 |
Capital and reserves |
|
|
|
Called-up share capital |
1,938 |
1,944 |
1,939 |
Share premium account |
68,344 |
80,002 |
67,458 |
Capital redemption reserve |
539 |
518 |
523 |
Special distributable reserve |
58,921 |
56,678 |
68,307 |
Capital reserve |
(48,505) |
(50,874) |
(51,914) |
Revaluation reserve |
42,294 |
23,659 |
34,041 |
Equity Shareholders' funds |
123,531 |
111,927 |
120,354 |
Net
Asset Value per share: |
63.8p |
57.6p |
62.1p |
Unaudited Reconciliation of Movements in Shareholders’
Fundsfor the six months ended 30 June 2021
|
Called-up share capital |
Share premium account |
Capital redemption reserve |
Special distributable reserve1 |
Capital reserve1 |
Revaluation reserve |
Total |
|
£’000 |
£’000 |
£’000 |
£’000 |
£’000 |
£’000 |
£’000 |
As at 1 January 2021 |
1,939 |
67,458 |
523 |
68,307 |
(51,914) |
34,041 |
120,354 |
Share issues in the
period |
15 |
918 |
- |
- |
- |
- |
933 |
Expenses in relation
to share issues |
- |
(32) |
- |
- |
- |
- |
(32) |
Repurchase of
shares |
(16) |
- |
16 |
(909) |
- |
- |
(909) |
Realised gains on
disposals of investments |
- |
- |
- |
- |
4,280 |
- |
4,280 |
Investment holding
gains |
- |
- |
- |
- |
- |
8,253 |
8,253 |
Dividends paid |
- |
- |
- |
(8,086) |
- |
- |
(8,086) |
Management fees
charges to capital |
- |
- |
- |
- |
(871) |
- |
(871) |
Revenue loss for the period |
- |
- |
- |
(391) |
- |
- |
(391) |
As at 30 June 2021 |
1,938 |
68,344 |
539 |
58,921 |
(48,505) |
42,294 |
123,531 |
1Reserve is available for distribution, total distributable
reserves at 30 June 2021 are £10,416,000 (31 December 2020:
£16,393,000).
Unaudited Cash Flow Statementfor the six months ended
30 June 2021
|
Six months ended |
Six months ended |
Nine months ended |
|
30 June 2021 |
30 September 2020 |
31 December 2020 |
|
£'000 |
£'000 |
£'000 |
|
(Unaudited) |
(Unaudited) |
(Audited) |
Cash flow from
operating activities |
|
|
|
Loan interest
received on investments |
205 |
29 |
136 |
Dividends
received from investments |
21 |
- |
- |
Deposit and
similar interest received |
1 |
26 |
28 |
Investment
management fees paid |
(1,161) |
(1,179) |
(1,283) |
Secretarial fees
paid |
(79) |
(79) |
(119) |
Other cash payments |
(216) |
(147) |
(349) |
Net cash
outflow from operating activities |
(1,229) |
(1,350) |
(1,587) |
|
|
|
|
Cash flow from
investing activities |
|
|
|
Purchase of
investments |
(5,087) |
- |
(6,532) |
Net proceeds on sale of investments |
5,652 |
- |
46 |
Net cash
inflow/(outflow) from investing activities |
565 |
- |
(6,532) |
|
|
|
|
Cash flow from
financing activities |
|
|
|
Expenses of fund
raising |
(32) |
(19) |
(28) |
Repurchase of own
shares |
(756) |
(795) |
(1,085) |
Equity dividends paid |
(7,152) |
(4,824) |
(4,824) |
Net cash
outflow from financing activities |
(7,940) |
(5,638) |
(5,937) |
|
|
|
|
Net outflow in cash in the period |
(8,604) |
(6,988) |
(14,010) |
|
|
|
|
Reconciliation of net cash flow to movement in net
funds |
|
|
|
Decrease in cash
and cash equivalents for the period |
(8,604) |
(6,998) |
(14,010) |
Net cash and cash equivalents at start of period |
27,862 |
41,872 |
41,872 |
Net cash and cash equivalents at end of period |
19,258 |
34,884 |
27,862 |
Analysis of changes in net debt
|
At 1 January 2021 |
Cash Flow |
At 30 June 2021 |
|
£’000 |
£’000 |
£’000 |
Cash and cash equivalents |
27,862 |
(8,604) |
19,258 |
Notes to the Unaudited Half-Yearly Resultsfor the six
months ended 30 June 2021
- The Unaudited Half-Yearly Financial Report has been prepared on
the basis of the accounting policies set out in the statutory
accounts of the Company for the nine months ended 31 December 2020.
Unquoted investments have been valued in accordance with IPEV
Valuation Guidelines.
- These are not statutory accounts in accordance with S436 of the
Companies Act 2006 and the financial information for the six months
ended 30 June 2021 and 30 September 2020 has been neither audited
nor formally reviewed. Statutory accounts in respect of the nine
months ended 31 December 2020 have been audited and reported on by
the Company’s auditors and delivered to the Registrar of Companies
and included the report of the auditors which was unqualified and
did not contain a statement under S498(2) or S498(3) of the
Companies Act 2006. No statutory accounts in respect of any period
after 31 December 2020 have been reported on by the Company’s
auditors or delivered to the Registrar of Companies.
- Copies of the Unaudited Half-Yearly Financial Report will be
sent to Shareholders via their chosen method and will be available
for inspection at the Registered Office of the Company at The
Shard, 32 London Bridge Street, London, SE1 9SG.
- Net Asset Value per share
The Net Asset Value per share is based on net assets at the end
of the period and on the number of shares in issue at the date.
|
Net Assets |
Shares in Issue |
30 June 2021 |
£123,531,000 |
193,758,305 |
30 September 2020 |
£111,927,000 |
194,420,778 |
31
December 2020 |
£120,354,000 |
193,859,213 |
- Return per share
The weighted average number of shares used to calculate the
respective returns are shown in the table below.
|
Shares |
Six months ended 30 June
2021 |
193,660,150 |
Six months ended 30 September 2020 |
194,054,492 |
Nine
months ended 31 December 2020 |
194,099,123 |
Earnings for the period should not be taken as a guide to the
results for the full year.
- Income
|
Six months ended |
Six months ended |
Nine
months ended |
|
30 June2021 |
30 September 2020 |
31
December 2020 |
|
£'000 |
£'000 |
£'000 |
Loan stock interest |
168 |
278 |
19 |
Dividends |
21 |
- |
- |
Deposit and similar interest
received |
1 |
26 |
28 |
Other
income |
- |
20 |
20 |
Total income |
190 |
324 |
67 |
- Investments held at fair value through profit or
loss
|
£'000 |
Book cost as at 1 January 2021 |
58,400 |
Investment holding gains |
34,041 |
Valuation at 1 January 2021 |
92,441 |
Movements in the period: |
|
Purchases |
5,087 |
Disposal proceeds1 |
(5,652) |
Realised gains |
4,280 |
Investment holding gains2 |
8,182 |
Valuation at 30 June 2021 |
104,338 |
Book cost at 30 June 2021 |
62,115 |
Investment holding gains |
42,223 |
Valuation at 30 June 2021 |
104,338 |
1The Company received £5,651,756 from the disposal of
investments during the period. The book cost of these investments
when they were disposed was £1,372,002. These investments have been
revalued over time and until they were sold any unrealised gains or
losses were included in the fair value of the investments.
2Investment holding gains in the income statement include the
deferred consideration debtor of £71,703, relating to FFX Group
Limited.
- Related party transactions
No Director has an interest in any contract to which the Company
is a party other than their appointment and payment as
Directors.
- Transactions with the manager
Foresight Group LLP acts as manager to the Company and was
appointed on 27 January 2020. During the period, services of a
total cost of £1,161,000 (30 September 2020: £1,179,000; 31
December 2020: £1,735,000) were purchased by the Company from
Foresight Group LLP.
During the period, administration services of a total cost of
£79,000 (30 September 2020: £79,000; 31 December 2020: £119,000)
were delivered to the Company by Foresight Group LLP, Company
Secretary.
At 30 June 2021, the amount due from Foresight Group LLP was
£nil (30 September 2020: £452,000; 31 December 2020: £nil).
END
For further information please contact:Gary Fraser, Foresight
Group: 0203 667 8181
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