TIDMFTF
FORESIGHT ENTERPRISE VCT PLC
Summary
-- Total net assets GBP123.5 million.
-- An interim dividend of 4.2p per share was paid on 18 June 2021, returning
GBP8.1 million to Shareholders.
-- The portfolio value has increased by GBP11.9 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 Statement
I 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 period
Before 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 GBP11.9 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 activity
During 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 GBP4.1 million
and GBP1.0 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 GBP2.4 million and GBP0.9 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 exploit
potential attractive investment opportunities.
Dividends
An 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 communication
We 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 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.
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.
Raymond Abbott
Chairman
28 September 2021
Investment Manager's Review
Portfolio summary
As at 30 June 2021 the Company's portfolio comprised 38
investments with a total cost of GBP62.1 million and a valuation of
GBP104.3 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 GBP11.9 million. This was driven by GBP5.1
million of new and follow-on investments and an increase of GBP12.5
million in the value of existing investments offset by a
realisation of GBP5.7 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 investments
The 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 EHealth
In June 2021, the Company invested GBP1.5 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 Group
Also in June 2021, the Company invested GBP0.9 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 Technologies
Finally, in June 2021, the Company invested GBP1.7 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 Associates
Post-period end, in August 2021, GBP2.4 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 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 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 GBP1.0
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.
Clubspark
In 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 GBP1.0 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 Services
Post-period end, in July 2021 a follow-on of GBP0.8 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 Focus
In August 2021, post-period end, a GBP0.2 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.
Pipeline
At 30 June 2021, the Company held cash of GBP19.3 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 realisations
The 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 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. This implies a cash on cash return of 4.3x the initial
investment of GBP1.4 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
Accounting cost Realised Valuation at
at date of disposal Proceeds gain 31 December 2020
Company Detail (GBP) (GBP) (GBP) (GBP)
-------- --------- -------------------- ------------ --------- -----------------
FFX
Group Full
Limited Disposal 1,372,002 5,651,756(1) 4,279,754 5,723,459
-------- --------- -------------------- ------------ --------- -----------------
(1) A further GBP71,703 in deferred consideration has been
reflected in the accounts.
Key portfolio developments
In 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 GBP11.9 million
in the six months to June, driven by deployment of GBP5.1 million
and an increase in value of existing investments by GBP12.5 million
offset by a realisation of GBP5.7 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
GBP26.2 million, driven by deployment of GBP6.5 million and an
increase in the value of existing investments of GBP19.7
million.
Material changes in valuation, defined as increasing or
decreasing by GBP1.0 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
Valuation Valuation Change
Company (GBP) (GBP)
-------------------------------- --------- ----------------
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
-------------------------------- --------- ----------------
Outlook
The 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 Healey
on behalf of Foresight Group LLP
Head of Private Equity
Foresight Group LLP
28 September 2021
Unaudited half-yearly results and responsibilities
statements
Principal 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 statement
The 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:
1. The summarised set of financial statements has been prepared in
accordance with FRS 104
2. 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)
3. 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
4. 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 concern
The 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
financial
risk 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 Board
Raymond Abbott
Chairman
28 September 2021
Financial Statements
Unaudited Income Statement
for 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
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'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 Sheet
at 30 June 2021
Registered Number: 03506579
As at As at As at
31
30 June 30 September December
2021 2020 2020
GBP'000 GBP'000 GBP'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' Funds
for the six months ended 30 June 2021
Share Capital Special
Called-up premium redemption distributable Capital Revaluation
share capital account reserve reserve(1) reserve(1) reserve Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'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
(1) Reserve is available for distribution, total distributable
reserves at 30 June 2021 are GBP10,416,000 (31 December 2020:
GBP16,393,000).
Unaudited Cash Flow Statement
for the six months ended 30 June 2021
Six months Six months Nine months
ended ended ended
30 June 30 September 31 December
2021 2020 2020
GBP'000 GBP'000 GBP'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
GBP'000 GBP'000 GBP'000
Cash and cash equivalents 27,862 (8,604) 19,258
Notes to the Unaudited Half-Yearly Results
for the six months ended 30 June 2021
1. 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.
2. 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.
3. 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.
4. 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 GBP123,531,000 193,758,305
30 September
2020 GBP111,927,000 194,420,778
31 December 2020 GBP120,354,000 193,859,213
1. 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.
1. Income
Nine months
Six months ended Six months ended ended
30 June 30 September 31 December
2021 2020 2020
GBP'000 GBP'000 GBP'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
1. Investments held at fair value through profit or loss
GBP'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 proceeds(1) (5,652)
Realised gains 4,280
Investment holding gains(2) 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
(1) The Company received GBP5,651,756 from the disposal of
investments during the period. The book cost of these investments
when they were disposed was GBP1,372,002. 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.
(2) Investment holding gains in the income statement include the
deferred consideration debtor of GBP71,703, relating to FFX Group
Limited.
1. 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.
1. 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 GBP1,161,000 (30 September 2020: GBP1,179,000; 31
December 2020: GBP1,735,000) were purchased by the Company from
Foresight Group LLP.
During the period, administration services of a total cost of
GBP79,000 (30 September 2020: GBP79,000; 31 December 2020:
GBP119,000) were delivered to the Company by Foresight Group LLP,
Company Secretary.
At 30 June 2021, the amount due from Foresight Group LLP was
GBPnil (30 September 2020: GBP452,000; 31 December 2020:
GBPnil).
END
For further information please contact:
Gary Fraser, Foresight Group: 0203 667 8181
(END) Dow Jones Newswires
September 28, 2021 11:40 ET (15:40 GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.
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