Exit: Sale of portfolio company FFX to H2 Equity Partners delivers 4.3x 
   The Board of Foresight VCT Plc ("FVCT" or "the Company") is pleased to 
announce the successful sale of portfolio company FFX Group Limited 
("FFX"), one of the UK's largest independent suppliers of high quality 
power tools, fixings and building supplies, to H2 Equity Partners ("H2") 
on 22 January 2021. 
   The transaction generated proceeds of  GBP11.1 million at completion and 
the Company will receive up to GBP0.3 million of deferred consideration 
after 18 months subject to certain conditions, implying a cash on cash 
return of 4.3x the initial investment of GBP2.7m made in October 2015, 
equivalent to  an IRR of c.32%. The Company's NAV per ordinary share 
stood at 68.8p as at September 2020, to which the exit will add 0.7p, 
giving a pro forma NAV per ordinary share of 69.5p. 
   Since FVCT made its original investment in October 2015, the manager, 
Foresight Group LLP ("Foresight") has taken a proactive approach to 
supporting the senior management team, introducing Chairperson George 
Adams who has extensive experience in the sector, including sixteen 
years at Kingfisher, three of which as Chair of Screwfix. The team was 
further strengthened with experienced, multi-channel retail executive 
CEO Chris Yates joining the business in 2019 and a Group Finance 
Director and eCommerce Director joining in 2020. 
   During the five year investment period, FFX opened a new 60,000 ft2 
distribution centre and a new head office in Kent, while staff numbers 
increased by more than 125. The business updated its brand and launched 
an extensive range of its own products. A direct sales team was 
established in order to expand FFX's customer base to include larger 
contractors and specialist subcontractors and sell direct to site. 
Throughout, FFX has continued to develop its online presence both at 
ffx.co.uk and via eBay. 
   John Gregory, Chairman of Foresight VCT said: "FFX has been a great 
success story for the Company and for our shareholders. We are delighted 
that Foresight has been able to make such a positive contribution to the 
growth of the business which has created over 125 new jobs, and we wish 
FFX every success for the future with H2." 
   For more information contact: 
   Gary Fraser, Foresight Group: 0203 667 8181 

(END) Dow Jones Newswires

January 26, 2021 06:10 ET (11:10 GMT)

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