Half Yearly Report

RNS Number : 0723N

F&C Private Equity Trust PLC

26 August 2011

 



To: Stock Exchange	For immediate release:
	26 August 2011

F&C Private Equity Trust plc

Unaudited results for the half year to 30 June 2011

 

·      Share price total return for the six months of 37.6 per cent for the Ordinary Shares, one of the best performing investments trusts regardless of sector.

·      NAV total return for the six months of 8.3 per cent for the Ordinary Shares.

·      NAV total return for the six months of 12.1 per cent for the Restricted Voting Shares.

Chairman's Statement

At 30 June 2011 the Company's net asset value ('NAV') was £182.6 million. The Ordinary Share Pool NAV was £178.0 million giving a fully diluted NAV per share of 243.2p, an increase over the first half of 7.9 per cent. Taking into account the final dividend of 0.95p per Ordinary Share paid on 10 June 2011 the NAV total return for the first half was 8.3 per cent. The Restricted Voting Pool had a NAV of £4.6 million giving a NAV per share of 6.90p and a NAV total return of 12.1 per cent for the first half. At the end of the period the net debt of the Ordinary Share Pool stood at £6.2 million. Together with the accrued liability for the Zero Dividend Preference Shares of £33.3 million the Ordinary Share Pool's total debt was £39.5 million giving gearing of 18.1 per cent. The total outstanding undrawn commitments at 30 June 2011 were £87.8 million.

The Company's portfolio made good progress in the first half of the year. This was broadly based in its diverse portfolio of predominantly European mid-market assets. The steady improvement in confidence, and therefore in private equity activity, continued into the second quarter. This has been against an economic backdrop that, whilst not technically recessionary, is replete with difficulties. These headwinds have been strengthened since the end of the period by the twin worries over the US fiscal position and concerns over how the Euro currency zone will resolve the imbalances between its constituent member countries. It is probably too early to tell whether these latest difficulties will be sufficiently serious to offset the otherwise well established recovery in the fundamental performance of the underlying companies in the portfolio.

We have long contended that the mid-market private companies backed by the Manager's investment partners across the European continent and further afield are, by virtue of the selection criteria applied to them and the close alignment with management inherent in the private equity model, relative outperformers when compared to the overall economy. We have undertaken some detailed analysis which lends considerable support to this belief. Looking at the largest 50 underlying companies in the portfolio, which account for approximately 42 per cent of the portfolio by value, the aggregate earnings growth has been 18 per cent per annum for the three years from 2008 to 2010 inclusive. These companies are currently valued at just over 7 x 2010 EBITDA. This is evidence of a strong portfolio which is very competitively valued and which should provide a good flow of realisations and accompanying NAV growth.

During the first half of the year, total distributions exceeded £19 million, comfortably ahead of the £14 million of drawdowns and co-investments made and approximately 60 per cent ahead of the same point in 2010. The Ordinary Share Pool has therefore slightly reduced its gearing over the first half. Because the Company's existing portfolio, as a consequence of its maturity, is able to finance the drawdowns of commitments, the Manager has considered it feasible and desirable to make a limited number of small commitments to new funds. To date, all these funds are managed by groups with whom the Manager is very familiar and who have delivered well for the Company over the years. There is, however, some scope for highly selectively backing newer managers in line with a long standing preference for emerging managers. The Manager is also building up the portfolio of co-investments.

Until the recent market correction, the Company's share price had been performing very well. Indeed, in the first half of the year the share price increased 36.8 per cent making your company one of the top performing investment trusts regardless of sector. With the subsequent decrease in share price and increase in asset value there is arguably a striking value opportunity for investors.

Mark Tennant

Chairman

Manager's Review

Introduction

The underlying portfolio consists of around 400 companies. Whilst it is very broad it would be inaccurate to consider that this portfolio of mainly European mid-market private equity backed companies is in some way a fair proxy for the wider European economy or the European stockmarket. The companies included in the portfolio have all exhibited strong profit growth characteristics or potential, and demonstrated the ability to attract high quality management. These attributes have been identified and assessed by experienced private equity investors. Although these features do not guarantee success due to the inescapable risks in private equity, they do give a better than average chance that these businesses will grow faster than the corporate sector of Europe as whole.

There are well documented examples of private equity backed companies regularly featuring in the 'fastest growth companies' league tables. This is not a coincidence, but rather the result of the effective, close and uniquely aligned partnership between management and investors that is the hallmark of private equity. There are commentators who, from time to time, have suggested that, because large quantities of bank debt are no longer readily available for private equity, this model of investing in companies is in some way 'broken'. In our view, based on experience, this is a superficial and profoundly mistaken view. Whilst bank debt is an essential component of private equity backed companies' capital structures, the contribution that gearing has had to private equity returns is often exaggerated. We have analysed the most recent 16 exits from the portfolio, all happening in the last two years, and this has shown that, of the value created, 64 per cent was attributable to profit growth, 24 per cent to gearing, 7 per cent to multiple expansion and 5 per cent to running yield. This analysis supports the view that the mid-market funds typically derive most value from enabling profit growth. This is the type of value creation that is most in control of management and their private equity backers and is therefore considered to be the highest quality growth. It is our view that it is the private equity managers who have been consistently successful and who have clearly demonstrable processes of value creation, mainly through profits growth, who will have the best prospect of building value in future.

New Investments

The first quarter of the year saw no new commitments but in the second quarter and immediately afterwards we made a small number of fresh commitments and one co-investment.

We have committed €3 million to Ciclad V. Our relationship with Ciclad dates back more than 20 years. They are one of the most successful investors in the small buy-out sector in France. Also in France we have committed €4 million to Chequers Capital XVI. Again, this is a longstanding and successful relationship. Chequers Capital is one of the leading mid-market buy-out groups in France. In the UK we have committed £2 million to Piper Private Equity V. Piper Private Equity specialises in investing in private companies with consumer brands. This commitment is the result of a 20 year association where Piper has delivered good returns. Since the end of the period we have committed £2 million to SEP IV, the latest venture capital fund from the Glasgow-based leading venture capitalist. SEP has been successful in what has been a extremely difficult sector but one which is showing signs of improvement. We have invested continuously with SEP since 1996.  Given the economic background, which remains challenging, and the need to deploy capital sparingly, we have triaged opportunities severely with a strong preference for management groups whom we know can deliver returns under a range of different circumstances. We will also continue to consider emerging management groups at an earlier stage in their development.

In May we invested €2 million (£1.75 million) alongside leading Nordic investor, FSN, in the buy-out of HusCompaniet, the market leading standardised single-family residential housebuilder in Denmark. The housing market in Denmark is recovering and the company is trading ahead of budget and has a strong order book. The investment gives us a 2.7 per cent holding in the company.

In addition to these investments, our investment partners have been active in making new investments. In the first half, total drawdowns from funds were £12.7 million. The larger individual investments give an impression of the characteristic breadth of opportunities in the European mid-market. Hutton Collins Capital Partners III invested in noodle restaurant chain Wagamama (£1.4 million, UK), N+I Fund II invested in Europe's third largest tinplate container manufacturer, Mvisa (£0.8 million, Spain), DBAG Fund V invested in packaging machinery company Romaco (£0.7 million, Germany), Procuritas IV invested in private schools company Sonans (£0.7 million, Norway) and Dunedin Buyout Fund II invested in manufacturer and distributor of high-end car bodywork filling and finishing products U-Pol (£0.4 million, UK).

Realisations

As noted in the Chairman's Statement, realisations have been at significantly higher volumes than at the same point last year.

The outstanding success during the period was the sale in early June of Italian Aerospace components manufacturer Micotecnica, which was sold by Stirling Square Capital Partners II to Goodrich Corporation of the US, yielding £5.6 million to the Company. The proceeds were large for an underlying investment from one of the fund portfolios.

Another significant sale was made by US mid-market specialist Blue Point Capital II. £2.2 million was returned, representing 6 x cost and an internal rate of return ('IRR') of 54 per cent when PSSI, a provider of outsourced cleaning services to the food processing industry, was sold. Piper Private Equity IV sold soft drinks company Bottlegreen to Irish drinks company SHS, achieving proceeds of £1.4 million, an investment multiple of 4.7 x cost and an IRR of 44 per cent. Growth Capital Partners Fund IIB sold gas distribution company A Gas to Lloyds Development Capital, yielding £1.3 million for the Company and making an investment multiple of 2.3 x cost and an IRR of 24 per cent, an excellent return for an integrated finance transaction. In the portfolio of mezzanine funds, a notable performer has been Mezzanine Management Fund IV which had two realisations in the period; WSH, the catering company yielded £0.7 million making an investment multiple of 2.2 x cost and an IRR of 27 per cent, and their New York State based on-course betting business, Yonkers Racing Corporation, returned £1.0 million representing a 1.8 x cost investment multiple and an IRR of 21 per cent. Finally, after a number of difficult years we have seen some encouraging realisations in the venture capital sector, most notably two major exits for SEP III. January saw the sale of Edinburgh-based fabless semiconductor company Gigle to Broadcom, making at least 2.2 x cost and returning £0.6 million, and in March, Biovex, the anti-cancer company was sold to Amgen for 2.5 x cost (potentially rising to 6.5 x cost) with an initial return to the Company of £0.4 million.

In the first half of the year, the total of realisations has been very healthy, and notably this is without any augmentation from the sale of any of the co-investments, which are relatively larger investments and therefore have the potential to deliver significant proceeds. A number of co-investments are in sale processes and we expect that some of these will be completed successfully by the year end.

Valuation Changes

The valuation changes over the first half have been well distributed throughout the portfolio. The largest individual movement has been for Stirling Square Capital Partners II where the £2.1 million uplift, mainly accounted for by the sale of Microtecnica, represented slightly more than 1 per cent of the total portfolio. August Equity Partners I was uplifted by £1.1 million reflecting uplifts of three underlying companies. SEP II was uplifted by £1.1 million benefiting from the sale of Biovex and the sale, announced after the period end, of software developer Zeus. Other funds benefiting from exits included Piper Private Equity IV where Bottlegreen was the major contributor to a £0.8 million uplift. In the co-investment portfolio, Bartec, the German based explosion protection equipment manufacturer, has traded strongly and has been uplifted by £0.9 million. This has in turn contributed to an uplift to Capvis Equity III, in which it is held, of £0.8 million.

There have also been downgrades. Our longstanding investment in venture capital fund Alta Berkeley VI has had some portfolio reverses and it is down by £0.6 million. Iberian funds Nmas1 Private Equity and N+1 Fund II have been impacted by the difficult economic situation in their region and are each down by £0.5 million.

Financing

At 30 June 2011 the Company had an unused borrowing facility of nearly £31 million. We are in discussions with the Company's  lenders about replacing or rolling over the facility before it expires next April. The principle that much of the Company's drawdowns can be met by realisations from a maturing portfolio has been supported in the first half, with realisations exceeding drawdowns, excluding co-investments, by £6 million. The outstanding undrawn commitments total at £87.8 million is increasingly composed of commitments that will not be drawn or can only be drawn under limited circumstances. It remains at the lowest level in the Company's history relative to net assets. It is not realistic for the commitments level to tail off very dramatically, nor desirable, as this will have consequences for the efficient deployment of the realisation proceeds of mature investments.

Outlook

The recent market correction has been precipitated by worries over the progress of the Euro zone and its institutions in resolving the sovereign debt problems of a small number of its member states. A number of solutions have been proposed although most of these are complex and not compatible with swift or effective implementation. These difficulties are therefore likely to take some time to resolve. Our concern is whether the problems of these countries will lead to an environment which is persistently hostile for business and for the capital markets.

Growth projections for the remainder of this year have been downgraded in most economies, although all but a few are expecting some economic expansion, and most forecasters expect an acceleration of growth next year. Most companies in the Company's portfolio cut costs aggressively in 2008 and 2009 and few have budgeted on much help from the economic background since then. Provided we do not return to a deep or prolonged recession, it is reasonable to expect that medium and longer term value growth in the portfolio will continue. In the short term the valuation of the portfolio will depend on the balance between realisations above valuation and the potential downward adjustments reflecting the recent market sell-off. The evidence of the portfolio's inherent strengths gives us confidence that further progress will made made in  the remainder of 2011.

Hamish Mair

Investment Manager

F&C Investment Business Limited

F&C Private Equity Trust plc

Consolidated Statement of Comprehensive Income for the

half year ended 30 June 2011

	Unaudited
	Revenue £'000	Capital £'000	Total £'000
Capital gains on investments
Gains on investments held at fair value	-	16,964	16,964
Currency losses	-	(62)	(62)
	-	16,902	16,902
Revenue
Investment income	1,374	-	1,374
Other income	30	-	30
Total income	1,404	16,902	18,306
Expenditure
Investment management fee	(231)	(1,322)	(1,553)
Other expenses	(380)	-	(380)
Total expenditure	(611)	(1,322)	(1,933)
Profit before finance costs and taxation	793	15,580	16,373
Finance costs	(101)	(1,781)	(1,882)
Profit before taxation	692	13,799	14,491
Taxation	(176)	176	-
Profit for period/total comprehensive income	516	13,975	14,491
Return per Ordinary Share - Basic	0.62p	18.58p	19.20p
Return per Ordinary Share - Fully diluted	0.61p	18.09p	18.70p
Return per Restricted Voting Share - Basic	0.09p	0.82p	0.91p

F&C Private Equity Trust plc

Consolidated Statement of Comprehensive Income for the

half year ended 30 June 2010

	Unaudited
	Revenue £'000	Capital £'000	Total £'000
Capital losses on investments
Losses on investments held at fair value	-	(633)	(633)
Currency gains	-	340	340
	-	(293)	(293)
Revenue
Investment income	1,743	-	1,743
Other income	30	-	30
Total income	1,773	(293)	1,480
Expenditure
Investment management fee	(205)	(615)	(820)
Other expenses	(381)	-	(381)
Total expenditure	(586)	(615)	(1,201)
Profit/(loss) before finance costs and taxation	1,187	(908)	279
Finance costs	(72)	(1,564)	(1,636)
Profit/(loss) before taxation	1,115	(2,472)	(1,357)
Taxation	(315)	315	-
Profit/(loss) for period/total comprehensive income	800	(2,157)	(1,357)
Return/(loss) per Ordinary Share - Basic and Fully Diluted	1.12p	(3.50)p	(2.38)p
Return/(loss) per Restricted Voting Share - Basic	(0.02)p	0.56p	0.54p

F&C Private Equity Trust plc

Consolidated Statement of Comprehensive Income for the

year ended 31 December 2010

	Audited
	Revenue £'000	Capital £'000	Total £'000
Capital gains on investments
Gains on investments held at fair value	-	18,938	18,938
Currency gains	-	1,000	1,000
	-	19,938	19,938
Revenue
Investment income	2,170	-	2,170
Other income	41	-	41
Total income	2,211	19,938	22,149
Expenditure
Investment management fee	(420)	(1,262)	(1,682)
Other expenses	(693)	-	(693)
Total expenditure	(1,113)	(1,262)	(2,375)
Profit before finance costs and taxation	1,098	18,676	19,774
Finance costs	(160)	(3,263)	(3,423)
Profit before taxation	938	15,413	16,351
Taxation	(239)	268	29
Profit for year/total comprehensive income	699	15,681	16,380
Return per Ordinary Share - Basic and Fully diluted	0.96p	21.02p	21.98p
Return per Restricted Voting Share - Basic	0.00p	0.73p	0.73p

F&C Private Equity Trust plc

Amounts Recognised as Dividends

	Six months to 30 June 2011 (unaudited) £'000	Six months to 30 June 2010 (unaudited) £'000	Year to 31 December 2010 (audited) £'000
Interim Ordinary Share dividend of 0.80p for the year ended 31 December 2009	-	578	578
Final Ordinary Share dividend of 0.95p for the year ended 31 December 2010	687	-	-
	687	578	578

On 7 May 2010 a special dividend of 1.00p per Restricted Voting Share was paid. The total amount paid was £671,000.

On 7 January 2011 a special dividend of 1.30p per Restricted Voting Share was paid. The total amount paid was £872,000.

F&C Private Equity Trust plc

Consolidated Balance Sheet

	As at 30 June 2011 (unaudited)	As at 30 June 2010 (unaudited)	As at 31 December 2010 (audited)
	£'000	£'000	£'000
Non-current assets
Investments at fair value through profit or loss	223,172	179,449	210,914
Current assets
Other receivables	17	149	19
Cash and short-term deposits	3,105	6,873	2,681
	3,122	7,022	2,700
Current liabilities
Other payables	(9,775)	(4,158)	(12,130)
Net current (liabilities)/assets	(6,653)	2,864	(9,430)
Total assets less current liabilities	216,519	182,313	201,484
Non-current liabilities
Investment management fee	(626)	-	-
Zero dividend preference shares	(33,251)	(30,340)	(31,774)
	(33,877)	(30,340)	(31,774)
Net assets	182,642	151,973	169,710
Equity
Called-up ordinary share capital	1,394	1,394	1,394
Special distributable capital reserve	15,679	15,679	15,679
Special distributable revenue reserve	35,814	36,686	36,686
Capital redemption reserve	664	664	664
Capital reserve	128,470	96,657	114,495
Revenue reserve	621	893	792
Shareholders' funds	182,642	151,973	169,710
Net asset value per Ordinary Share - Basic	246.27p	203.66p	228.02p
Net asset value per Ordinary Share - Fully Diluted	243.20p	203.66p	228.02p
Net asset value per Restricted Voting Share - Basic	6.90p	7.11p	7.29p

F&C Private Equity Trust plc

Consolidated Statement of Changes in Equity

For the six months ended 30 June 2011 (unaudited)
Net assets at 1 January 2011		1,394	15,679	36,686		664		114,495		792	169,710
Profit for the period/total comprehensive income		-	-	-		-		13,975		516	14,491
Dividends paid		-	-	(872)		-		-		(687)	(1,559)
Net assets at 30 June 2011		1,394	15,679	35,814		664		128,470		621	182,642
For the six months ended 30 June 2010 (unaudited)
Net assets at 1 January 2010		1,394	15,679	37,357		664		98,814		671	154,579
(Loss)/profit for the period/total comprehensive income		-	-	-		-		(2,157)		800	(1,357)
Dividends paid		-	-	(671)		-		-		(578)	(1,249)
Net assets at 30 June 2010		1,394	15,679	36,686		664		96,657		893	151,973
For the year ended 31 December 2010 (audited)
Net assets at 1 January 2010	1,394		15,679		37,357		664		98,814	671	154,579
Profit for the year/total comprehensive income	-		-		-		-		15,681	699	16,380
Dividends paid	-		-		(671)		-		-	(578)	(1,249)
Net assets at 31 December 2010	1,394		15,679		36,686		664		114,495	792	169,710

F&C Private Equity Trust plc

Consolidated Cash Flow Statement

	Six months ended 30 June 2011 (unaudited)	Six months ended 30 June 2010 (unaudited)	Year ended 31 December 2010 (audited)
	£000	£000	£000
Operating activities
Profit/(loss) before taxation	14,491	(1,357)	16,351
Gains on disposals of investments	(60)	(5,112)	(7,373)
(Decrease)/increase in holding losses	(16,904)	5,745	(11,565)
Exchange differences	62	(340)	(1,000)
Finance costs	1,882	1,636	3,423
Corporation tax refunded	-	-	137
(Increase)/decrease in other receivables	(6)	8	1
Increase in other payables	171	459	488
Net cash (outflow)/inflow from operating activities	(364)	1,039	462
Investing activities
Purchases of investments	(14,400)	(21,042)	(43,593)
Sales of investments	19,106	11,973	22,628
Exchange differences on investment transactions	-	-	956
Net cash inflow/(outflow) from investing activities	4,706	(9,069)	(20,009)
Financing Activities
Repayment of bank loans	(5,031)	-	-
Draw down of bank loans	3,000	3,000	11,000
Interest paid	(329)	(180)	(559)
ZDP share issue costs paid	-	(517)	(517)
Equity dividends paid	(1,559)	(1,249)	(1,249)
Net cash (outflow)/inflow from financing activities	(3,919)	1,054	8,675
Net increase/(decrease) in cash and cash equivalents	423	(6,976)	(10,872)
Currency gains	1	340	44
Net increase/(decrease) in cash and cash equivalents	424	(6,636)	(10,828)
Opening cash and cash equivalents	2,681	13,509	13,509
Closing cash and cash equivalents	3,105	6,873	2,681

Principal Risks and Uncertainties

The Directors believe that the principal risks and uncertainties faced by the Company include investment and strategic, external, regulatory, operational, financial and funding risks.  These risks, and the way in which they are managed, are described in more detail under the heading Principal Risks and Uncertainties and Risk Management within the Business Review in the Company's Annual Report for the year ended 31 December 2010.  The Company's principal risks and uncertainties have not changed materially since the date of that report and are not expected to change materially for the remaining six months of the Company's financial year.

Statement of Directors' Responsibilities in Respect of the Half Year Report

We confirm that to the best of our knowledge:

·      the condensed set of financial statements have been prepared in accordance with IAS 34 'Interim Financial Reporting' and give a true and fair view of the assets, liabilities, financial position and profit of the Company;

·      the Chairman's Statement and Manager's Review (together constituting the Interim Management Report) include a fair review of the information required by the Disclosure and Transparency Rules ('DTR') 4.2.7R, being an indication of important events that have occurred during the first six months of the financial year and their impact on the financial statements;

·      the Statement of Principal Risks and Uncertainties shown above is a fair review of the information required by DTR 4.2.7R; and

·      the condensed set of financial statements include a fair review of the information required by DTR 4.2.8R, being related party transactions that have taken place in the first six months of the financial year and that have materially affected the financial position or performance of the Company during the period, and any changes in the related party transactions described in the last Annual Report that could do so.

On behalf of the Board

Mark Tennant

Chairman

Notes (unaudited)

1.   The unaudited half-year results have been prepared on the basis of the accounting policies set out in the statutory accounts of the Group for the year ended 31 December 2010 and in accordance with International Accounting Standard ('IAS') 34.

2.   Earnings for the six months to 30 June 2011 should not be taken as a guide to the results for the year to 31 December 2011.

3.   Investment management fee:

	Six months to 30 June 2011			Six months to 30 June 2010			Year ended 31 December 2010
	Revenue £'000	Capital £'000	Total £'000	Revenue £'000	Capital £'000	Total £'000	Revenue £'000	Capital £'000	Total £'000
Investment management fee	231	696	927	205	615	820	420	1,262	1,682
Incentive fee	-	626	626	-	-	-	-	-	-
	231	1,322	1,533	205	615	820	420	1,262	1,682

4.   Finance costs:

	Six months to 30 June 2011			Six months to 30 June 2010			Year ended 31 December 2010
	Revenue £'000	Capital £'000	Total £'000	Revenue £'000	Capital £'000	Total £'000	Revenue £'000	Capital £'000	Total £'000
Interest payable on bank loans and overdrafts	101	304	405	72	217	289	160	481	641
Finance costs attributable to ZDP Shares	-	1,477	1,477	-	1,347	1,347	-	2,782	2,782
	101	1,781	1,882	72	1,564	1,636	160	3,263	3,423

5.   The basic return per Ordinary Share is based on a net return on ordinary activities after taxation of £13,878,000 (30 June 2010 - £(1,721,000); 31 December 2010 - £15,889,000) and on 72,282,273 (30 June 2010 - 72,282,273; 31 December 2010 - 72,282,273) shares, being the weighted average number of Ordinary Shares in issue during the period.

The fully diluted return per Ordinary Share is based on a net return on ordinary activities after taxation of £13,878,000 (30 June 2010 - £(1,721,000); 31 December 2010 - £15,889,000) and on 74,241,429 (30 June 2010 - 72,282,273; 31 December 2010 - 72,282,273) shares, being the weighted average number of Ordinary Shares in issue during the period after conversion of the Ordinary Share warrants.

The basic return per Restricted Voting Share is based on a net return on ordinary activities after taxation of £613,000 (30 June 2010 - £364,000; 31 December 2010 - £491,000) and on 67,084,807 (30 June 2010 - 67,084,807; 31 December 2010 - 67,084,807) shares, being the weighted average number of Restricted Voting Shares in issue during the period.

6.  On 30 April 2007 the Company entered into a five year £40 million multi-currency revolving credit facility. £9,031,000 was drawn down at 30 June 2011 (30 June 2010 - £3,000,000; 31 December 2010 - £11,000,000).

7.  Zero Dividend Preference Shares

The Zero Dividend Preference Shares ('ZDP Shares') of F&C Private Equity Zeros plc were issued on 14 December 2010 at 100 pence per share and redeem on 15 December 2014 at 152.14 pence per share, an effective rate of 8.75 per cent per annum.

The fair value of the ZDP Shares at 30 June 2011 was £38,400,000 based on the quoted fair price of 128.00p per ZDP Share.

	Number of ZDP Shares	Amount due to ZDP shareholders £'000
As at 31 December 2010	30,000,000	31,774
ZDP Shares finance costs	-	1,477
As at 30 June 2011	30,000,000	33,251

8. The basic net asset value per Ordinary Share is based on net assets at the period end of £178,010,000 (30 June 2010 - £147,207,000; 31 December 2010 - £164,818,000) and on 72,282,273 (30 June 2010 - 72,282,273; 31 December 2010 - 72,282,273) shares, being the number of Ordinary Shares in issue at the period end.

The fully diluted net asset value per Ordinary Share is based on net assets at the period end of £180,555,000 (30 June 2010 - £147,207,000; 31 December 2010 - £164,818,000) and on 74,241,429 (30 June 2010 - 72,282,273; 31 December 2010 - 72,282,273) shares, being the number of Ordinary Shares in issue at the period end after conversion of the Ordinary Share warrants.

The basic net asset value per Restricted Voting Share is based on net assets at the period end of £4,632,000 (30 June 2010 - £4,766,000; 31 December 2010 - £4,892,000) and on 67,084,807 (30 June 2010 - 67,084,807; 31 December 2010 - 67,084,807) shares, being the number of Restricted Voting Shares in issue at the period end.

9.   These are not statutory accounts in terms of Section 434 of the Companies Act 2006 and have not been audited or reviewed by the Company's auditors. The information for the year ended 31 December 2010 has been extracted from the latest published financial statements which received an unqualified audit report and have been filed with the Registrar of Companies. No statutory accounts in respect of any period after 31 December 2010 have been reported on by the Company's Auditors or delivered to the Registrar of Companies. The Half-Year Report is available at the Company's website address, www.fcpet.co.uk.

For more information, please contact:

Hamish Mair (Fund Manager)	0131 718 1184 [e-mail]
Gordon Hay Smith (Company Secretary)	0131 718 1018 [e-mail]

 

END

 

 

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