TIDMFTSV
FORESIGHT SOLAR & INFRASTRUCTURE VCT PLC
Financial Highlights
-- Ordinary Shares Net Assets as at 31 December 2018: GBP42.1m
-- Ordinary Shares Net Asset Value per share as at 31 December 2018: 97.3p
-- Ordinary Shares Dividends paid during the period ended 31 December 2018:
3.0p
Ordinary Shares Fund
-- Total net assets GBP42.1 million.
-- After payment of 3.0p in dividends, Net Asset Value per Ordinary Share at
31 December 2018 was 97.3p (30 June 2018: 93.0p).
-- At 31 December 2018, the fund held positions in 12 UK solar assets, with
a total installed capacity of 74.7MW. During the period the portfolio
generated 34.5 gigawatt hours of clean energy, sufficient to power
approximately 11,000 UK homes for a year.
-- At 31 December 2018, the fund also held positions in three Italian solar
assets with a total installed capacity of 2.3MW.
-- During the period, five UK solar assets (Basin Bridge, Beech Farm, Dove
View, Hurcott & Stables) were acquired, increasing the portfolio's
capacity by 25.8MW.
-- During the period, two Italian solar assets (Avetrana Tre and Manduria
Uno) were acquired through an investment in ForVEI II, increasing the
portfolio capacity by 1.9 MW.
Dividend History
Ordinary Shares Dividend per
share
23 November 2018 3.0p
27 April 2018 3.0p
24 November 2017 3.0p
7 April 2017 3.0p
18 November 2016 3.0p
8 April 2016 3.0p
13 November 2015 3.0p
10 April 2015 3.0p
14 November 2014 3.0p
4 April 2014 3.0p
25 October 2013 3.0p
12 April 2013 2.5p
31 October 2012 2.5p
Total 38.0p
Chairman's Statement
INTRODUCTION
I am pleased to present the Unaudited Half-Yearly Financial Report for
Foresight Solar & Infrastructure VCT Plc for the six months ended 31
December 2018, the first period since the completion of the share class
merger.
PERFORMANCE
The Net Asset Value per Ordinary Share increased to 97.3p at 31 December
2018, compared to 93.0p per share at 30 June 2018, after deducting the
3.0p per Ordinary Share dividend that was paid on 23 November 2018. The
increase in NAV was largely driven by the increase in valuation of the
UK portfolio, with production 7.7% above expectations at 34.5 gigawatt
hours of electricity, sufficient to power approximately 11,000 UK homes
for a year.
The Board also notes that following its long running arbitration case
with the Spanish Government with respect to retrospective changes to
feed-in-tariffs on its previously held Spanish assets, the VCT has been
awarded an amount of GBP2m-GBP2.5m, equivalent to 4.6-5.8p per share.
However, no such awards against the Spanish Government have, as yet,
been settled or collected and there remain significant challenges with
respect to collectability. On that basis, the Board has not assigned any
current value to the claim in the net asset value reported.
DIVIDS
The Board is pleased to announce that the next interim dividend, of 3.0p
per Ordinary Share, will be paid on 26 April 2019. This will be based on
an ex-dividend date of 11 April 2019 and a record date of 12 April 2019.
This will bring the total dividends paid since launch to 41.0p per
Ordinary Share, and a total return of 135.3p per Ordinary Share since
launch.
The Board intends to pay an annual dividend of 5.0p per Ordinary Share
each year, payable bi-annually via interim dividends of 2.5p per
Ordinary Share in April and October. Since the launch of the Company,
this target has been either achieved or exceeded in all years to date.
The level of dividends is not, however, guaranteed.
PORTFOLIO ACTIVITY
During the period, existing portfolio companies completed the
acquisition of five UK solar assets, Basin Bridge, Stables, Dove View,
Beech Farm and Hurcott, adding a total of 25.8MW of capacity to the
portfolio.
Existing portfolio companies also committed an amount into ForVEI II,
the second joint venture partnership between Foresight and VEI Capital.
During the period, ForVEI II successfully completed the acquisition of
two plants totalling 1.9MW, each located in Apulia, Italy.
These additions support the Company's objective of continuing to deliver
its target dividends and maximising long-term future returns for
Shareholders.
MANAGEMENT FEES
The annual management fee of the Ordinary Shares fund is calculated as
1.5% of Net Assets and equated to GBP309,000 during the period.
SHARE ISSUES AND BUYBACKS
During the period, 663,597 Ordinary Shares were repurchased for
cancellation. No new Shares were issued.
SHAREHOLDER COMMUNICATIONS
The Board are offering shareholders the opportunity to elect the method
by which they receive shareholder communications. Further details of
this are included in the letter appended to this report. The Board
believes that in addition to further promoting sustainability, a shift
towards electronic communications will result in some cost savings.
BOARD COMPOSITION, OUTLOOK & FUTURE FUND-RAISING
The performance of the Ordinary Shares since the fund was launched in
2010, as a result of the solar investments made, is broadly in line with
the fund's original mandate and the Board is pleased with the success of
those investments to date. As a result of past legislative and
regulatory changes, we can no longer raise new monies to invest in
energy generation activities in general or, specifically, new solar
investments. Therefore, over the next four years or so, until all
Shareholders have reached their minimum 5-year qualifying holding period,
the Board and the Manager will seek to optimise the existing portfolio
in terms of performance and pay dividends through a combination of
income earned and realised gains made, and ultimately seek to offer all
Ordinary Share shareholders a final exit at that point.
In the meantime, we will write to shareholders later this year with
respect to the opportunity to participate in the next tender offer for
shares.
The Board has also been considering the future direction of the VCT and
future fundraising opportunities and, in that regard, intends to seek
Shareholder approval to raise funds for a new VCT share class for the
Company which will invest monies in a number of exciting engineering and
technology based companies. Further details about this proposed change
will be sent to Shareholders in the coming months.
To that end, the Board was delighted to welcome Ernie Richardson as a
Director of the Company. Ernie, who was appointed as a Non-Executive
Director of the Company in January this year, has extensive experience
in the venture capital industry and previously served as the Chief
Executive Officer and Managing Partner of MTI Partners Limited.
CHANGE OF ACCOUNTING YEAR
Following the decision to seek Shareholder approval to raise new funds
for the Company, the Board has decided to change the accounting year end
of the Company to 31 March 2019 (from 30 June 2019) to better align the
Company with the tax year end.
David Hurst-Brown
Chairman
28 March 2019
Investment Manager's Review
PORTFOLIO SUMMARY
During the six months to 31 December 2018, existing portfolio companies
made investments in five operational UK solar assets, with a total
capacity of 25.8MW.
The first four solar projects were acquired in August 2018. Basin Bridge
Solar and Stables Solar are situated in Leicestershire and have a
capacity of 5.0MW and 2.0MW respectively. Dove View and Beech Farm are
both in Staffordshire and have a capacity of 4.5MW and 4.3MW
respectively.
In November 2018 a further investment was completed, acquiring Hurcott
Solar in Somerset, with a total production capacity of 10.0MW.
These five ground-mounted solar projects, which benefit from long-term
ROC subsidy payments, were acquired from other funds managed by
Foresight and were supported by independent valuations from a
third-party valuation expert. Previous Foresight ownership was
beneficial in allowing for a more cost-efficient and lower risk
acquisition process. Additionally, the assets had been in operation for
a minimum period of two years and managed by Foresight Group's Asset
Management team, thereby ensuring the quality of the assets as well as
securing a clear advantage in continuing to manage these assets going
forwards.
Also in July 2018, existing portfolio companies invested into the ForVEI
II platform, which made investments into two ground-mounted solar assets
in the Apulia region of southern Italy, which have been operational
since 2010, and have a total capacity of 1.9MW. The plants receive
long-term subsidies under the Italian Feed-in Tariff regime.
Other existing portfolio companies completed the debt refinancing of the
Laurel Hill site in August 2018, provided by Royal Bank of Scotland. The
refinancing proceeds have been used to repay the majority of the
borrowings originally used to finance the acquisition.
PORTFOLIO PERFORMANCE
Performance of the assets was positive during the period 1 July 2018 to
31 December 2018 with total electricity production 7.7% above
expectations. The UK assets generated a total of 34.5GWh, enough clean
electricity to power more than 11,000 homes. This strong performance
reflects higher than average irradiation levels and good availability of
the solar plants.
There will be variances in performance caused by irradiation or the
efficiency of the plants but this does not require adjustment to the
long term forecasts. Further details on performance of the individual
assets are included on pages 10 to 16.
REGULATORY AND MARKET CHANGES
In December 2018, total installed solar capacity in the UK reached
c.13,096MW across c.976,200 installations, an increase of 2.1% (c.268MW)
since December 2017. This modest growth was predominantly supported by
new domestic rooftop installations and some ground mounted assets in
Northern Ireland. This reduction in growth results from the closure of
the Renewables Obligation ("RO") scheme in April 2017. As anticipated,
there have been no new large-scale solar assets constructed in the UK
following the closure of the RO scheme. We expect this to remain the
case in the foreseeable future, with investment activity in the sector
focused on secondary market acquisitions of operational assets.
The UK solar market continued to experience a period of consolidation
with a significant number of secondary transactions taking place in
2018. The level of activity in the secondary market, associated with the
absence of new construction of large-scale solar assets, resulted in
increased competition for the acquisition of operational assets.
In November 2018, Ofgem released a consultation on the Targeted Charging
Review ("TCR"), which was launched initially in August 2017 as part of a
review into residual network charging arrangements. The update included
a number of proposed reforms, which would likely result in a reduction
in revenues received by UK embedded generation assets which currently
benefit from embedded benefits and could also result in an increase in
network charges. Whilst the exact nature of the proposed changes is
still to be confirmed, if taken forward in their present form they would
be phased in from 2021. It should be noted, embedded benefits revenue
represents c.2.5% of revenues for the portfolio during the period.
Despite limited growth in the solar market, the UK renewables market has
continued to thrive. In September 2018, the capacity of renewable energy
overtook that of fossil fuels in the UK for the first time with 41.9GW
of generation from wind, solar, biomass and hydropower exceeding the
41.2GW of capacity from coal, gas and oil-fired power generation assets.
In the five years to 2018 renewable capacity has tripled while fossil
fuel capacity has fallen by a third due to the decommissioning of fossil
fuel generators.
BREXIT
At the time of going to print, the outcome of Brexit remains unclear.
The Investment Manager does not consider the Company to be particularly
sensitive to the various possible scenarios that the UK Government could
pursue. The energy market in the UK is closely aligned with European
markets and this is not expected to change over the long term. As an
example, the draft political declaration made in November 2018 sets out
a desire to "consider cooperation on carbon pricing by linking a United
Kingdom national greenhouse gas emissions trading system with the EUs
Emissions Trading System".
An exit from the EU would likely cause volatility in the energy markets,
that volatility in itself could lead to slightly higher electricity
prices in the short term. Longer term impacts such as weaker economic
demand and the availability of unskilled labour are not deemed material
to the future operations of the Company.
REVENUES
During the period, 57% of revenue from UK portfolio investments came
from subsidies (predominantly under the ROC scheme) and other green
benefits to an offtaker. These revenues are directly and explicitly
linked to inflation for 20 years from the accreditation date under the
ROC regime and subject to Retail Price Index ("RPI") inflationary
increases applied by Ofgem in April of each year. The majority of the
remaining 43% of revenues derive from electricity sales by our portfolio
companies which are subject to wholesale electricity price movements.
The average power price achieved during the period was GBP55.79 per MWh,
representing an increase on the price achieved in the 12 months to 30
June 2018 (GBP46.77 per MWh.) Electricity spot prices initially
increased during the period, reaching a peak of approximately GBP67/MWh
in September due to increasing commodity prices. From September, prices
stabilised.
During the period 1 July 2018 to 31 December 2018 there was a 3.4%
increase in long term power price forecasts. The Investment Manager uses
forward looking power price assumptions to assess the likely future
income of the portfolio investments for valuation purposes. The
Company's assumptions are formed from a blended average of the forecasts
provided by third party consultants and are updated on a quarterly
basis. The Investment Manager's forecasts continue to assume an increase
in power prices in real terms over the medium to long-term of 0.56% per
annum (30 June 2018: 1.08%), driven by higher gas and carbon prices.
Power Purchase Agreements ("PPAs") are entered into between each
portfolio company and offtakers in the UK electricity supply market.
Under the PPAs, each portfolio company will sell the entirety of the
generated electricity and ROCs to the designated offtaker. Under the
terms of a PPA, electricity can be supplied at a fixed price for an
agreed duration, or at a variable rate.
The PPA strategy adopted by our portfolio companies seeks to optimise
their revenues from the power generated, while keeping the flexibility
to manage their solar assets appropriately. The Boards of our portfolio
companies, with assistance from Foresight, constantly assess conditions
in the electricity market and set their pricing strategy on the basis of
likely future movements.
As at 31 December 2018, 42% of the UK solar portfolio had fixed power
price arrangements in place, offering a premium over the long-term power
price forecasts providing good visibility over future revenues. Our
portfolio companies retain the option to fix the PPAs of their portfolio
assets at any time. Power prices for c.31MW of the UK portfolio capacity
have been fixed until 31 December 2019, thereby reducing the exposure to
power price volatility. As part of the ongoing efforts by our portfolio
companies to maximise the commercial performance of their businesses, a
PPA tendering process has been undertaken across all assets, which has
seen a significant reduction in fees charged to them by the offtakers.
SUSTAINABLE INVESTING
Sustainability lies at the heart of the Manager's approach, and the
Manager believes that investing responsibly, seeking to make a positive
social and environmental impact, is critical to its long-term success.
These factors have been integrated into the investment process, and are
actively supported by all involved, regardless of seniority.
Over the course of 2018, Foresight has been seeking to refine its
sustainability tracking to further improve its investment processes,
enhance the sustainability performance of existing assets and
demonstrate more comprehensively the environmental benefits and social
contribution of the Company's activities, implementing Foresight Group's
Sustainable Investing in Infrastructure Strategy. This strategy focuses
on ensuring all assets are evaluated prior to acquisition and throughout
their ownership, in accordance with Foresight Group's Sustainability
Evaluation Criteria.
There are five central themes to the Criteria, which cover the key areas
of sustainability.
The five criteria are:
1. Sustainable Development Contribution: The development of affordable
and clean energy and improved resource and energy efficiency.
2. Environmental Footprint: Assessing potential environmental impact
such as emissions to air, land and water, effects on biodiversity and
noise and light pollution
3. Social Engagement: Engagement and consultation with local
stakeholders. Ensuring a positive local economic and social impact,
community engagement and the health and wellbeing of stakeholders.
4. Governance: Compliance with relevant laws and regulations and
ensuring best practice is followed.
5. Third Party Interactions: Third party due diligence is conducted on
key counterparties to ensure adherence to the aforementioned criteria
where relevant.
LAND MANAGEMENT
Foresight Group remains a working partner of the Solar Trade
Association's Large Scale Asset Management Working Group. Foresight is a
signatory to the Solar Farm Land Management Charter and seeks to ensure
that the solar farms operated by all of our portfolio companies are
managed in a manner that maximises the agricultural, landscaping,
biodiversity and wildlife potential, which can also contribute to
lowering maintenance costs and enhancing security. As such, Foresight
Group regularly inspects sites and advises portfolio companies to
develop site specific land management and biodiversity enhancement plans
to secure long term gains for wildlife and ensure that the land and
environment are maintained to a high standard.
This includes:
-- Management of grassland areas within the security fencing to promote
wildflower meadows and sustainable sheep grazing;
-- Planting and management of hedgerows and associated hedge banks;
-- Management of field boundaries between security fencing and
hedgerows;
-- Sustainable land drainage and pond restoration;
-- Installation of insect hotels and reptile hibernacula;
-- Installation of boxes for bats, owls and kestrels; and
-- Installation of beehives by local beekeepers.
Most solar parks are designed to enable sheep grazing and the remaining
plants are investigated for alterations to ensure that the farmland on
which the solar assets are located can remain useful in agricultural
production, which is a frequent desire of local communities.
SOCIAL AND COMMUNITY ENGAGEMENT
Foresight Group actively seeks to engage with the local communities
around the solar assets operated by our portfolio companies and
regularly attends parish meetings to encourage community engagement and
promote the benefits of their solar assets.
HEALTH AND SAFETY
There were no reportable health and safety incidents during the period.
Safety, Health, Environment and Quality ("SHEQ") performance and risk
management are a top priority at all levels for Foresight Group. To
further improve the management of SHEQ risks, reinforce best practice
and ensure non-compliance with regulations is avoided, Foresight Group
has appointed an independent health and safety consultant who regularly
visits the portfolio assets operated by our portfolio companies to
ensure they not only meet, but exceed, industry and legal standards. The
consultant has confirmed that all sites are in compliance with
applicable regulations. Recommendations have been implemented to help
raise standards further, including improvements to security arrangements
for two of the plants.
OUTLOOK
It has been another positive period for the Company with a number of
attractive acquisitions completed by portfolio companies and strong
performance from both new and existing assets. Plant optimisation will
continue to be a core objective both from an operational perspective and
in respect of their ability to support a sustainable level of debt to
enhance returns to the fund. During 2019, the Company will focus on
embedding the recently acquired UK and Italian assets and continuing to
deliver strong operational performance across the portfolio.
Foresight Group CI Limited
Investment Manager
28 March 2019
Unaudited Half-Yearly Financial Report and Responsibilities Statements
Principal Risks and Uncertainties
The principal risks faced by the Company can be divided into various
areas as follows:
-- Performance
-- Regulatory
-- Operational; and
-- Financial
The Board reported on the principal risks and uncertainties faced by the
Company in the Annual Report and Accounts for the year ended 30 June
2018. A detailed explanation can be on found on page 20 of the Annual
Report and Accounts which is available on Foresight Group's website
www.foresightgroup.eu or by writing to Foresight Group at The Shard, 32
London Bridge Street, London, SE1 9SG.
In the view of the Board, there have been no changes to the fundamental
nature of these risks since the previous report and 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.
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 Unaudited Half-
Yearly Financial Report for the six months ended 31 December 2018.
The Directors confirm to the best of their knowledge that:
(a) the summarised set of financial statements has been prepared in
accordance with FRS 104;
(b) the Unaudited Half-Yearly Financial Report for the six months ended
31 December 2018 includes a fair review of the information required by
DTR 4.2.7R (indication of important events during the first six months
of the year and a description of principal risks and uncertainties that
the Company faces for the remaining six months of the year);
(c) the summarised set of financial statements give 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; and
(d) 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 in the 30 June 2018 Annual Report and Accounts. 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 30 June 2018 Annual
Report and Accounts. In addition, the Annual Report and Accounts
includes the Company's objectives, policies and processes for managing
its capital; its financial risk management objectives; details of its
financial instruments and hedging activities; and its exposures to
credit risk and liquidity risk. The Company has considerable financial
resources together with investments and income generated therefrom,
which benefit from Renewable Obligation Certificates guaranteed by the
UK Government. As a consequence, the Directors believe that the Company
is well placed to manage its business risks successfully despite the
current uncertain economic outlook.
Cash flow projections have been reviewed and show that the Company has
sufficient funds to meet both its contracted expenditure and its
discretionary cash outflows in the form of the share buy-back programme
and dividend policy. The Company has no external loan finance in place
and therefore is not exposed to any gearing covenants.
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 for the six months ended 31 December
2018 has not been audited or reviewed by the auditors.
On behalf of the Board
David Hurst-Brown
Chairman
28 March 2019
Unaudited Income Statement for the six months ended 31 December 2018
Six months ended Six months ended Year ended
31 December 2018 31 December 2017* 30 June 2018
(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 -- 3,794 3,794 -- 2,808 2,808 -- 835 835
Realised losses on
investments -- (197) (197) -- -- -- -- -- --
Income 368 -- 368 374 -- 374 1,543 -- 1,543
Investment management
fees (77) (232) (309) (88) (496) (584) (173) (649) (822)
Loan interest payable (208) -- (208) (200) -- (200) (371) -- (371)
Other expenses (235) -- (235) (299) -- (299) (647) -- (647)
(Loss)/profit on
ordinary activities
before taxation (152) 3,365 3,213 (213) 2,312 2,099 352 186 538
Taxation -- -- -- -- -- -- -- -- --
(Loss)/profit on
ordinary activities
after taxation (152) 3,365 3,213 (213) 2,312 2,099 352 186 538
(Loss)/profit per
share:
Ordinary Share (0.3)p 7.7p 7.4p (0.6)p 7.5p 6.9p 0.8p 0.4p 1.2p
*Company Income Statement includes C and D Shares.
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 recognised gains and
losses has been presented.
Unaudited Balance Sheet at 31 December 2018
As at As at As at
31 December 31 December 2017* 30 June 2018
2018 (unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
Fixed assets
Investments held at fair
value through profit or
loss 56,949 55,697 53,352
Current assets
Debtors 948 312 465
Money market securities
and other deposits 9 9 9
Cash 2,093 4,616 4,844
3,050 4,937 5,318
Creditors
Amounts falling due within
one year (2,898) (2,120) (2,852)
Net current assets 152 2,817 2,466
Creditors
Amounts falling due greater
than one year (15,000) (15,000) (15,000)
Net assets 42,101 43,514 40,818
Capital and reserves
Called-up share capital 432 451 439
Share premium 7,037 7,050 7,050
Capital redemption reserve 122 115 115
Profit and loss account 34,510 35,898 33,214
Equity shareholders' funds 42,101 43,514 40,818
Net asset value per share
Ordinary Share 97.3p 99.6p 93.0p
*Company Balance Sheet includes C and D Shares.
Unaudited Reconciliation of Movements in Shareholders' Funds for the six
months ended 31 December 2018
Capital
Called-up Share premium redemption Profit and
share capital account reserve loss account Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
As at 1 July 2018 439 7,050 115 33,214 40,818
Expenses in relation to
prior year share issues -- (13) -- -- (13)
Repurchase of shares (7) -- 7 (613) (613)
Dividends -- -- -- (1,304) (1,304)
Return for the period -- -- -- 3,213 3,213
As at 31 December 2018 432 7,037 122 34,510 42,101
Unaudited Cash Flow Statement for the six months ended 31 December 2018
Six months Year
Six months ended ended
ended 31 December 30 June
31 December 2017 2018
2018 (unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
Cash flow from operating activities
Deposit and similar interest
received 6 2 8
Investment management fees paid (301) (462) (791)
Performance incentive fee paid (131) -- --
Secretarial fees paid (66) (177) (269)
Other cash (payments)/receipts (538) (513) 107
Net cash outflow from operating
activities (1,030) (1,150) (945)
----------------------------------- ----------------- ------------ ----------
Cash flow from investing activities
Purchase of investments -- (149) (97)
Net proceeds on sale of investments -- 1,012 1,332
Investment income received -- 484 1,515
----------
Net cash inflow from investing
activities -- 1,347 2,750
----------
Cash flow from financing activities
Expenses of fund raising (13) (67) (80)
Repurchase of own shares (404) (78) (322)
Equity dividends paid (1,304) (1,130) (2,253)
----------
Net cash outflow from financing
activities (1,721) (1,275) (2,655)
----------
Net outflow of cash in the period (2,751) (1,078) (850)
----------
Reconciliation of net cash flow to
movement in net funds
Decrease in cash for the period (2,751) (1,078) (850)
Net cash at start of period 4,853 5,703 5,703
----------
Net cash at end of period 2,102 4,625 4,853
Analysis of changes in net debt
At 1 At 31
July December
2018 Cash flow 2018
GBP'000 GBP'000 GBP'000
Cash and cash equivalents* 4,853 (2,751) 2,102
* Including money market securities and other deposits
Notes to the Unaudited Half-Yearly Financial Report for the six months
ended 31 December 2018
1 The Unaudited Half-Yearly results have been prepared on the basis of
accounting policies set out in the statutory accounts of the Company for
the year ended 30 June 2018. Unquoted investments have been valued in
accordance with International Private Equity and Venture Capital
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 31 December 2018 and 31 December 2017 has been neither audited nor
reviewed. Statutory accounts in respect of the year to 30 June 2018 have
been audited and reported on by the Company's auditor and delivered to
the Registrar of Companies and included the report of the auditor 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 30 June 2018 have been reported on by the Company's auditor
or delivered to the Registrar of Companies.
3 Copies of the Unaudited Half-Yearly Financial Report for the six
months ended 31 December 2018 have been sent to shareholders and are
available for inspection at the Registered Office of the Company at The
Shard, 32 London Bridge Street, London, SE1 9SG. Copies are also
available electronically at www.foresightgroup.eu.
4 Net asset value per share
The net asset value per share is based on net assets attributable to the
Ordinary Shares fund at the end of the period and on the number of
Ordinary Shares in issue at that date.
Number of
Net assets Shares in
GBP'000 issue
31 December
2018 42,101 43,247,592
31 December
2017 26,929 27,026,216
30 June 2018 40,818 43,911,189
5 Return per share
The weighted average number of shares for the Ordinary Shares fund used
to calculate the respective returns are shown in the table below:
Number of Shares
---------------------------------- ----------------
Six months ended 31 December 2018 43,474,464
Six months ended 31 December 2017 27,324,838*
Year ended 30 June 2018 45,273,865
---------------------------------- ----------------
* Note the weighted average number of shares have not been adjusted to
take account of the O, C and D share class merger on 29 June 2018.
6 Income
Six months
Six months ended ended 31 Year ended
31 December December 30 June 2018
2018 (unaudited) 2017 (unaudited) (audited)
GBP'000 GBP'000 GBP'000
Loan stock interest 362 300 572
Dividends receivable -- 72 963
Bank interest 6 2 8
368 374 1,543
7 Investments held at fair value through profit or loss
Total
GBP'000
Book cost as at 1 July
2018 31,444
Investment holding gains 21,908
Valuation at 1 July 2018 53,352
Movements in the period:
Purchases at cost --
Disposal proceeds --
Realised losses* (197)
Investment holding gains 3,794
Valuation at 31 December
2018 56,949
Book cost at 31 December
2018 31,247
Investment holding gains 25,702
Valuation at 31 December
2018 56,949
*Realised losses at cost represents the removal of legal costs incurred
in relation to the disposal of the FiT assets and refinancing of
Turweston assets.
8 Transactions with the manager
Details of arrangements of the Company with the Manager are given in the
Annual Report and Accounts for the year ended 30 June 2018, in the
Directors' Report and Notes 3 and 13. All arrangements and transactions
were on an arms length basis.
The Company's Investment Manager earned fees of GBP309,000 in the six
months ended 31 December 2018 (31 December 2017: GBP350,000; 30 June
2018: GBP692,000). At the period end date, management fees due to the
Manager amounted to GBP6,000 (31 December 2017: GBP19,000 due from the
manager; 30 June 2018: GBP2,000 due from the Manager). The Manager also
earned performance incentive fees of GBPnil during the period (31
December 2017: GBP234,000; 30 June 2018: GBP130,000). The amount accrued
in respect of performance incentive fees as at 30 June 2018 was paid to
the Manager during the period.
Foresight Group LLP, to whom the Manager delegated the function of
Company Secretary from November 2017, earned fees amounting to GBP64,000
in the six months ended 31 December 2018 (31 December 2017: GBPnil; 30
June 2018: GBP102,000), of which GBPnil remained payable at the period
end date (31 December 2017: GBPnil; 30 June 2018: GBP2,000).
Foresight Fund Managers Limited, the delegated Company Secretary until
November 2017, earned fees of GBPnil during the period (31 December
2017: GBP99,000; 30 June 2018: GBP100,000). No amounts were due to
Foresight Fund Managers Limited at the period end date (31 December
2017: GBP16,000 due from Foresight Fund Managers Limited; 30 June 2018:
GBPnil).
The Manager recharged fund expenses incurred on behalf of the Company of
which GBP18,000 (31 December 2017: GBP127,000; 30 June 2018: GBP158,000)
remained payable at the year end date.
9 Related party transactions
There were no related party transactions in the period.
END
(END) Dow Jones Newswires
March 28, 2019 12:03 ET (16:03 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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