Annual Financial Report
FORESIGHT4 VCT PLC
Summary and Financial Highlights
* Net asset value per Ordinary Share as at 31 March 2011 displayed upward
momentum, increasing by 13.1% to 112.0p compared to 99.0p as at 28 February
2010.
* An interim dividend of 5.0p per share was paid on 4 February 2011.
* The Company made fourteen follow-on investments totalling £4,330,524.
* Cash proceeds of £826,151 were received via loan repayments from four
investments.
* The linked offer with Foresight 3 VCT launched on 7 January 2011, raised
gross proceeds of £11.0 million between its launch and 31 March 2011, of
which the Company's share was £5.5 million.
+---------------------------------------------+---------------+----------------+
|Â |13 months ended| Year ended|
+---------------------------------------------+---------------+----------------+
|Â | 31 March 2011|28 February 2010|
+---------------------------------------------+---------------+----------------+
|Net asset value per Ordinary Share | 112.0p| 99.0p|
+---------------------------------------------+---------------+----------------+
|Net asset value per Ordinary Share (including| 199.3p| 181.3p|
|all dividends paid) | | |
+---------------------------------------------+---------------+----------------+
|Share price per Ordinary Share | 97.5p| 85.0p|
+---------------------------------------------+---------------+----------------+
|Share price total return per Ordinary Share | 184.8p| 167.3p|
|(includes all dividends paid) | | |
+---------------------------------------------+---------------+----------------+
Chairman's Statement
Performance and Dividends
The period under review has seen a continuing modest recovery in sentiment
although markets have been volatile and there is still concern about the state
of government finances in many parts of Europe. However, I am pleased to be able
to report some progress in the development of our investment portfolio. During
the 13 months ended 31 March 2011, the net asset value of the Ordinary Shares
increased by 13.1% to 112.0p per share. The total return during the period
increased to 18.1% after allowing for the 5.0p per share dividend paid in
February.
The performances of several of the unquoted investments within the portfolio
both in terms of revenues and profits generated have improved over the period
under review. A significant amount of this improvement can be attributed to
export driven growth, principally to the US and Europe. Furthermore, the order
books of several portfolio companies give the Investment Manager cause for
optimism that the recent positive portfolio performance can be maintained.
However, stock market sentiment remains relatively fragile with significant
macroeconomic uncertainties remaining combined with difficult trading and credit
conditions in many sectors of the economy. Against this background, the
Investment Manager continues to adopt a cautious approach to management of the
portfolio.
As reported in my statement in the Interim Report in October, an interim
dividend of 5.0p per Ordinary Share for the 13 months ended 31 March 2011 was
paid to the Ordinary Shareholders on 4 February 2011. The Company's policy is to
maximise the level of tax-free dividends generated either from income or from
capital profits realised on the sale of investments.
Share Issues and Share Buy-backs
The Company launched a linked offer for new Ordinary Shares alongside Foresight
3 VCT plc on 7 January 2011, which had raised approximately £11.0 million as at
31 March 2011, of which the Company's share was £5.5 million. As a result,
4,258,053 Ordinary Shares were allotted at prices ranging from 115.0p to 120.0p
per share representing £4.9 million of funds raised at 31 March 2011.
The previous linked offer with Foresight 3 VCT plc, launched on 15 October 2009
finally closed on 4 May 2010 having raised gross proceeds £10.5 million in the
current financial period, of which the Company's share was £5.3 million. As a
result, 5,348,100 Ordinary Shares were allotted at prices ranging from 100.0p to
101.0p per share.
It continues to be the Board's policy to consider repurchasing shares when they
become available in order to provide a degree of liquidity for the sellers of
the Company's shares. During the period, the Company repurchased 711,942
Ordinary Shares for cancellation at a cost of £669,000.
Board
As previously announced, I took over from Peter Dicks as Chairman of the Company
at the end of July 2010 in anticipation of the new, more restrictive UK Listing
Authority regulations that came into effect on 28 September 2010.
Peter also chaired a number of other Foresight managed VCTs which meant that he
was no longer regarded under the new regime as independent. He had been Chairman
since 2004 and has a detailed knowledge of all aspects of the portfolio and I am
therefore delighted that he agreed to remain on the Board so we will continue to
have the benefit of his experience and advice. For related reasons, Bernard
Fairman, the Chairman of our investment manager, Foresight Group, also retired
from the Board in June 2010. We are grateful to him for his contribution to the
Company during his six years as a Director. I am glad that we will also continue
to have access to his advice and experience as he remains involved in the
affairs of Foresight Group.
Valuation Policy
Investments held by the Company have been valued in accordance with the
International Private Equity and Venture Capital (IPEVC) valuation guidelines
(August 2010) developed by the British Venture Capital Association and other
organisations. Through these guidelines, investments are valued as defined at
'fair value'. Ordinarily, unquoted investments will be valued at cost for a
limited period following the date of acquisition, being the most suitable
approximation of fair value unless there is an impairment or significant
accretion in value during the period. Quoted investments and investments traded
on AIM and PLUS (formerly OFEX) are valued at the bid price as at 31 March
2011. The portfolio valuations are prepared by Foresight Group, reviewed and
approved by the Board quarterly and subject to review by the auditors annually.
Performance-Related Incentive
As a result of the 5.0p dividend payment per share paid on 4 February 2011 and
the total return remaining in excess of 100p per share, Foresight Group was
entitled to receive a performance fee of 15% of the dividend paid out to
shareholders, equivalent to £259,000. In accordance with the carried interest
agreement, the performance-related incentive payment was made in cash.
Annual General Meeting
The Company's Annual General Meeting will take place on 21 September 2011. I
look forward to welcoming you to the meeting, which will be held in London,
details of which can be found on page 41 of the annual report and accounts.
Outlook
Although there has been very little portfolio activity in terms of realisations
over the last year, we are witnessing potential acquirers slowly returning to
the market following two years of economic fragility. Additionally, Foresight
Group is seeing its dealflow of new investment opportunities increasing but we
remain cautious about the economic outlook and the Investment Manager will aim
to invest only in new opportunities which are considered sufficiently robust and
attractive. The Board and Investment Manager are, therefore, hopeful that the
positive current performance of the portfolio will translate into realisations
that will, over the medium term, be reflected in positive net asset value
performance and further distributions to shareholders.
Philip Stephens
Chairman
20 July 2011
For further information please contact:
Gary Fraser, Foresight Fund Managers Limited Tel: 01732 471800
Investment Manager's Report
As referred to in the Chairman's statement, the recent performance of a number
of companies in the portfolio gives cause for optimism at an individual
investment level. However, equities are only just in positive territory year-to-
date with the fundamentals remaining highly challenging and indicators
inconsistent. We continue to believe that consensus expectations do not fully
reflect a scenario of slowing growth for 2011 and that nascent inflation could
undermine prospects over coming months. Against this background, we are only
looking at opportunities which are considered sufficiently robust and
attractive, particularly in valuation terms.
Portfolio Review
Over the last two years, as a result of tougher trading and credit conditions,
the number of follow-on investments made by the VCT has increased. This has
reflected the need for additional working capital arising as a result of trading
conditions and reduced bank credit lines or overdrafts but has also included
funding for growth.
The Company provided follow-on funding totalling £4,330,524 for fourteen
portfolio companies: O-Gen Acme Trek (£1,778,869), The Bunker Secure Hosting
(£677,040), i-plas Group (£410,848), Closed Loop Recycling (£373,333), Evance
Wind Turbines (£298,707), SkillsMarket (£193,956), @Futsal (£141,977), Land
Energy (£133,519), Silvigen (£74,279), Amberfin Holdings (£71,453), Trilogy
Communications (£62,500), alwaysON Group (£60,020), TFC Europe (£32,577) and
Adeptra (£21,446).
The performance highlights during the period were as follows:
Autologic Diagnostics (formerly Diagnos Holdings) develops and sells
sophisticated automotive diagnostic software and hardware to independent
mechanics and garages to allow them to service and repair vehicles. In the year
ended 31 December 2010, it produced an operating profit of £2.7 million on sales
of £9.3 million. It is continuing to grow sales and profits in its current
financial year.
Datapath is a world leading innovator in the field of computer graphics and
video wall display technology. It produced an operating profit of £3.1 million
on sales of £10.3 million in the year ended 31 March 2011.
TFC Europe, which distributes technical fasteners, reported an operating profit
of £1.3 million on sales of £13.5 million for the year ended 31 March 2011. A
further £32,577 was invested in the company during the period.
Closed Loop Recycling continues to make solid operational, commercial and
revenue progress with production rates at record levels and significantly
improved plant reliability and consistency. Product quality remains high and
there is strong demand for all the recycled material it produces. The company
continues to be affected by raw material quality which restricts throughput and
yield, but is making progress in addressing this problem. It is also planning
significant investment at the Dagenham site to increase capacity to meet the
substantial demand for the cleaned and sorted output, which should be possible
without adding significantly to its fixed overhead costs. Closed Loop is
currently generating revenues in excess of £1.2 million per month.
An additional investment in O-Gen Acme Trek of £1,778,869 was required because
of delays in achieving full commissioning of the underlying plant and to provide
ongoing working capital. The company is generating electricity periodically and
is making good progress in bringing its facility fully on stream.
Global Immersion, which provides visualisation systems for immersive theatres
and planetariums, generated its first operating profit in its financial year
ended 30 June 2010. Having started the current financial year with a record
order book, it has exceeded budget for this year and it is expected that revenue
for the year ending 30 June 2011 will be approximately double that for 2010.
During the year, Global Immersion provided immersive theatres and related
services to projects in Asia, Africa, North America and Europe. The company also
installed its first two Zorro projection theatres. Zorro is a market leading
technology which enables the projection of unmatched levels of picture quality.
It is expected that the success of these initial installations will bring
additional orders in the coming financial year.
Trilogy Communications is making strong progress, particularly in the defence
sector where it announced a number of contract wins through partners such as
Northrop Grumman and Raytheon. During 2010, Trilogy was awarded the Queen's
Award for Enterprise for International Trade and was also selected by UK Trade
and Investment as an Exporter of the Year. The company is now growing strongly
and repaid loans to the Ordinary Shares fund of £78,125 in March 2011. The
outlook for the coming year is positive, and the first few months of financial
year 2011/12 have shown record trading results.
The Bunker Secure Hosting continues to win new orders, grow its annual revenues
and is generating substantial profits. For the year to 31 December 2010, an
EBITDA of £1.5 million was achieved on sales of £6.2 million, at which date
recurring annual revenues were running at £6.4 million. As part of a £3 million
investment programme, Foresight 4 provided further funds (£677,040) for hardware
infrastructure investment, principally an upgrade of the Ash data centre
electrical infrastructure, to support the company's growth in providing high
value managed hosting services.
A further £62,020 was invested in alwaysON as part of a restructuring which
involved senior management changes. Foresight 4 has significantly increased its
equity holding in the business, which is starting to see signs of recovery in
its underlying core operations.
Evance Wind Turbines (formerly Iskra Wind Turbines) has made progress in
developing its distribution channels and is now selling turbines across Europe.
Foresight 4 provided £298,707 as part of an overall funding round of £1.1
million for additional working capital as the business continues to progress
towards being cash flow positive.
A further investment of £410,848 was made into i-plas Group as part of a £3
million round which enabled the business to double its capacity and increase its
product range, in order to take full advantage of the opportunities available to
it and deliver its sales forecast.
Silvigen received further funding of £74,279 to finance additional capital
expenditure for its wood pellet plant which will enable increased production as
well as provide additional working capital as the company builds its sales
pipeline in the animal bedding and energy markets.
A second tranche (£141,977) of the investment into @Futsal was made in the
period. @Futsal is the fastest growing indoor sport in the world with 30 million
people currently playing this type of indoor football internationally. @Futsal's
Swindon and Cardiff facilities are now fully operational and the third site in
Birmingham has recently opened. Sales growth, however, is behind original
expectations and progress towards profitability has been impacted as a result.
Land Energy has made good progress over the last six months, achieving positive
EBITDA at a plant level for the period of January to March 2011. Demand
continues to exceed supply at its Bridgend (Wales) wood pelleting plant - the
further funding of £133,519 invested into Land Energy has financed capital
expenditure and working capital at Bridgend to increase production as well as
group working capital prior to the proposed merger later this year with
Silvigen. These two businesses both now operate in the same markets. It is
expected that the merger will provide the enlarged group with a strong
geographical footprint in the UK with access to a substantial volume of sales
and waste wood feedstock suppliers.
With signs of increasing sales of Recruiter Account in late 2010, the Company
invested a further £193,956 in SkillsMarket during the period to fund the
operational costs associated with its turnaround strategy. Sales slowed
appreciably however and were well behind budget during early 2011. As
substantial further investment was required, the company's Board decided to
accelerate a sales process. Despite considerable initial interest from a number
of prospective purchasers, no offers were ultimately received and in consequence
administrators were appointed on 18 May 2011.
In November 2010, as part of a £3 million institutional round, Foresight 4
subscribed £71,453 for new ordinary shares and loans to finance Amberfin's
continuing strong growth. Amberfin is an internet content repurposing business
(converting video for transmission over the internet) which is now building a
diverse customer base across the World.
In October 2010, a small equity warrant was exercised for new shares in Adeptra
by Foresight 4 at a cost of £21,446. Adeptra, the Reading based global leader in
call centre automation, now has more than 60 customers Worldwide, principally
major financial institutions and utility companies, many of which use a range of
its services. Particularly strong growth is currently being experienced in the
Asia Pacific region. Further growth is expected following the recent launch of
the company's Decision Engine technology.
Realisations
Loan repayments totalling £826,151 were received from four investee companies
during the period: Datapath Holdings (£422,727) following continuing good
results and positive cash flow generation; O-Gen Acme trek (£293,199); Trilogy
(£78,125); and SkillsMarket (£32,100). The short-term loan repayments from O-Gen
Acme Trek and SkillsMarket were made following further funding rounds.
Outlook
The recovery in the underlying trading of many portfolio companies has
benefited, to varying degrees, from the positive export conditions created by a
weaker currency and reflects better than expected growth in portfolio companies'
target markets. We remain reasonably optimistic about the current prospects and
outlook for many portfolio companies, which continue to display strong order
books and revenue and profit growth. This is tempered by continued challenging
fundamentals and uncertainties that could lead to a prolonged period of low
growth.
Furthermore, across all the portfolio companies, we have, where appropriate,
ensured that management are focused on cash conservation and cost reductions in
light of the continuing fragile economic recovery.
Foresight is actively pursuing a number of portfolio realisations across several
market sectors to realise value and enable distributions to be made to
shareholders but M&A activity at the smaller company level is still limited. As
the M&A market develops more momentum, we are confident that several portfolio
companies could be attractive acquisition candidates.
David Hughes
Chief Investment Officer
Foresight Group
20 July 2011
The Disclosure and Transparency Rules ("DTR") of the UK Listing Authority
require certain disclosures in relation to the annual financial report, as
follows:
Principal risks, risk management and regulatory environment
The Board believes that the principal risks faced by the Company are:
* Economic risk - events such as an economic recession and movement in
interest rates could affect smaller companies' performance and valuations.
* Loss of approval as a Venture Capital Trust - the Company must comply with
Section 274 of the Income Tax Act 2007 which allows it to be exempted from
capital gains tax on investment gains. Any breach of these rules may lead
to: the Company losing its approval as a VCT; qualifying shareholders who
have not held their shares for the designated holding period having to repay
the income tax relief they obtained; and future dividends paid by the
Company becoming subject to tax. The Company would also lose its exemption
from corporation tax on capital gains.
* Investment and strategic - inappropriate strategy, poor asset allocation or
consistent weak stock selection might lead to under performance and poor
returns to shareholders.
* Regulatory - the Company is required to comply with the Companies Act 2006,
the rules of the UK Listing Authority and United Kingdom Accounting
Standards. Breach of any of these might lead to suspension of the Company's
Stock Exchange listing, financial penalties or a qualified audit report.
* Reputational - inadequate or failed controls might result in breaches of
regulations or loss of shareholder trust.
* Operational - failure of the Manager's or Company Secretary's accounting
systems or disruption to its business might lead to an inability to provide
accurate reporting and monitoring.
* Financial - inadequate controls might lead to misappropriation of assets.
Inappropriate accounting policies might lead to misreporting or breaches of
regulations. Additional financial risks, including interest rate, credit,
market price and currency, are detailed in note 15 to the accounts.
* Market risk - investment in AIM traded, PLUS traded and unquoted companies
by its nature involves a higher degree of risk than investment in companies
traded on the main market. In particular, smaller companies often have
limited product lines, markets or financial resources and may be dependent
for their management on a smaller number of key individuals. In addition,
the market for stock in smaller companies is often less liquid than that for
stock in larger companies, bringing with it potential difficulties in
acquiring, valuing and disposing of such stock.
* Liquidity risk - the Company's investments, both unquoted and quoted, may be
difficult to realise. Furthermore, the fact that a share is traded on AIM or
PLUS Markets does not guarantee its liquidity. The spread between the buying
and selling price of such shares may be wide and thus the price used for
valuation may not be achievable.
The Board seeks to mitigate the internal risks by setting policy, regular review
of performance, enforcement of contractual obligations and monitoring progress
and compliance. In the mitigation and management of these risks, the Board
applies the principles detailed in the Combined Code. Details of the Company's
internal controls are contained in the Corporate Governance and Internal Control
sections.
Statement of Directors' Responsibilities
The Directors are responsible for preparing the Directors' Report and the
financial statements, in accordance with applicable United Kingdom law and
United Kingdom Generally Accepted Accounting Practice.
Company law requires the Directors to prepare financial statements for each
financial year. Under that law the Directors have elected to prepare the
financial statements in accordance with United Kingdom Generally Accepted
Accounting Practice (United Kingdom Accounting Standards and applicable law).
Under company law the Directors must not approve the financial statements unless
they are satisfied that they give a true and fair view of the state of affairs
of the Company and of the profit or loss of the Company for that period.
In preparing these financial statements, the Directors are required to:
- select suitable accounting policies and then apply them consistently;
- make judgements and estimates that are reasonable and prudent; and
- state whether applicable accounting standards have been followed, subject to
any material departures disclosed and explained in the financial statements.
The Directors are responsible for keeping adequate accounting records that
disclose with reasonable accuracy at any time the financial position of the
Company and enable them to ensure that its financial statements comply with the
Companies Act 2006. They have general responsibility for taking such steps as
are reasonably open to them to safeguard the assets of the Company and to
prevent and detect fraud and other irregularities.
Under applicable law and regulations, the Directors are also responsible for
preparing a Directors' Report (including Business Review), Directors'
Remuneration Report and Corporate Governance Statement that comply with that law
and those regulations.
The Directors are responsible for the maintenance and integrity of the corporate
and financial information included on the Company's website,
www.foresightgroup.eu. Visitors to the website should be aware that legislation
in the UK governing the preparation and dissemination of financial statements
may differ from legislation in other jurisdictions.
Responsibility Statement of the Directors in respect of the Annual Financial
Report
We confirm that to the best of our knowledge:
- the financial statements, prepared in accordance with the applicable set of
accounting standards, give a true and fair view of the assets, liabilities,
financial position and profit or loss of the Company; and
- the Directors' Report includes a fair review of the development and
performance of the business and the position of the Company together with a
description of the principal risks and uncertainties that it faces.
On behalf of the Board
Philip Stephens
Chairman
20 July 2011
Audited Income Statement
for the 13 months ended 31 March 2011
 13 months ended  Year ended
 31 March 2011  28 February 2010
 Revenue Capital Total  Revenue Capital Total
 £'000 £'000 £'000  £'000 £'000 £'000
Investment holding gains - Â 6,637 6,637 Â - Â 6,300 6,300
Realised gains/(losses) on - Â 30 30 Â - Â (4,181) (4,181)
investments
Income 1,025 - Â 1,025 Â 697 - Â 697
Investment management fees (259) (1,036) (1,295) Â (155) (467) (622)
Other expenses (358) - Â (358) Â (279) - Â (279)
------------------------- -------------------------
Return on ordinary 408 5,631 6,039 Â 263 1,652 1,915
activities before taxation
Tax on ordinary activities (93) 93 - Â Â (74) 74 -
------------------------- -------------------------
Return on ordinary 315 5,724 6,039 Â 189 1,726 1,915
activities after taxation
------------------------- -------------------------
Return per share 1.0p 17.8p 18.8p  0.8p 6.9p 7.7p
------------------------- -------------------------
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 year.
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.
Audited Reconciliation of Movements in Shareholders' Funds
for the 13 months ended 31 March 2011
 Share Capital
Called-up premium redemption Profit and
 share capital account reserve loss account Total
 £'000 £'000 £'000 £'000 £'000
As at 1 March 234 11,252 1,830 9,235 22,551
2009
Share issues in 43 4,366 - Â - Â 4,409
the year
Expenses on - Â (193) - Â - Â (193)
share issues
Repurchase of (7) - Â 7 (627) (627)
shares
Return for the - Â - Â - Â 1,915 1,915
year
Dividend - Â - Â - Â (1,342) (1,342)
----------------------------------------------------------------
As at 28 270 15,425 1,837 9,181 26,713
February 2010
----------------------------------------------------------------
 Share Capital
Called-up premium redemption Profit and
 share capital account reserve loss account Total
 £'000 £'000 £'000 £'000 £'000
As at 1 March 270 15,425 1,837 9,181 26,713
2010
Share issues in 96 10,056 - Â - Â 10,152
the period
Expenses on - Â (344) - Â - Â (344)
share issues
Repurchase of (7) - Â 7 (669) (669)
shares
Return for the - Â - Â - Â 6,039 6,039
period
Dividend - Â - Â - Â (1,728) (1,728)
----------------------------------------------------------------
As at 31 March 359 25,137 1,844 12,823 40,163
2011
----------------------------------------------------------------
Audited Balance Sheet
at 31 March 2011
Registered Number:
 03506579
 As at As at
 31 March 28 February
 2011 2010
 £'000 £'000
Non-current assets
Investments held at fair value through profit or loss 32,306 22,148
--------------------------
Current assets
Debtors 2,502 2,255
Money market and other deposits 3,368 1,940
Cash 3,401 2,051
--------------------------
 9,271 6,246
Creditors: Amounts falling due within one year (1,414) (1,681)
--------------------------
Net current assets 7,857 4,565
--------------------------
Net assets 40,163 26,713
--------------------------
Capital and reserves
Called-up share capital 359 270
Share premium account 25,137 15,425
Capital redemption reserve 1,844 1,837
Profit and loss account 12,823 9,181
--------------------------
Equity shareholders' funds 40,163 26,713
--------------------------
Net asset value per Ordinary Share 112.0p 99.0p
--------------------------
Audited Cash Flow Statement
for the year ended 31 March 2011
  13 months ended Year ended
  31 March 2011 28 February 2010
 £'000 £'000
Cashflow from operating activities
Investment income received  354 182
Deposit and similar interest received  39 14
Investment management fees paid  (1,326) (614)
Secretarial fees paid  (119) (85)
Other cash payments  (293) (216)
---------------------------------
Net cash outflow from operating activities (1,345) (719)
and returns on investment
---------------------------------
Taxation  -  -
---------------------------------
Investing activities
Purchase of unquoted investments and (4,290) (2,980)
investments quoted on AIM
Net proceeds on sale of unquoted investments  826 1,373
Net proceeds on deferred consideration  148 620
---------------------------------
Net capital outflow from investing activities  (3,316) (987)
Equity dividends paid  (1,728) (1,342)
---------------------------------
Net cash outflow before financing and liquid (6,389) (3,048)
resource management
---------------------------------
Management of liquid resources
Subscription to money market  (4,500) (500)
Redemption from money market  3,072 209
---------------------------------
  (1,428) (291)
Financing
Proceeds of fund-raising  10,040 5,580
Expenses of fund-raising  (145) (85)
Repurchase of own shares  (728) (284)
---------------------------------
Net cash inflow from financing activities  9,167 5,211
---------------------------------
Increase in cash  1,350 1,872
---------------------------------
Reconciliation of net cash flow to movement
in net cash
Increase in cash for the year  1,350 1,872
Net cash at start of year  2,051 179
---------------------------------
Net cash at end of year  3,401 2,051
---------------------------------
Reconciliation of net income to net cash flow
from operating activities
Total return before taxation  6,039 1,915
Investment holding gains  (6,637) (6,300)
Realised (gains)/losses  (30) 4,181
Increase in debtors  (523) (694)
(Decrease)/increase in creditors  (194) 179
---------------------------------
Net cash outflow from operating activities  (1,345) (719)
---------------------------------
  -
Analysis of changes in net debt
 At 1 March 2010 Cash flow At 31 March 2011
 £'000 £'000 £'000
Cash and cash 2,051 1,350 3,401
equivalents
--------------------------------------------------------
Notes
1. Â Â The audited Annual Financial Report has been prepared on the basis of
accounting policies set out in the statutory accounts of the Company for the 13
months ended 31 March 2011. Â All investments held by the Company are classified
as 'fair value through the profit and loss'. Unquoted investments have been
valued in accordance with IPEVC guidelines. Quoted investments are stated at bid
prices in accordance with the IPEVC guidelines and Generally Accepted Accounting
Practice.
2. Â Â These are not statutory accounts in accordance with S436 of the Companies
Act 2006. The full audited accounts for the 13 months ended 31 March 2011, which
were unqualified and did not contain and statements under S498(2) of Companies
Act 2006 or S498(3) of Companies Act 2006, will be lodged with the Registrar of
Companies. Statutory accounts for the 13 months ended 31 March 2011 including an
unqualified audit report and containing no statements under the Companies Act
2006 will be delivered to the Registrar of Companies in due course.
3. Â Â Copies of the Annual Report will be sent to shareholders and will be
available for inspection at the Registered Office of the Company at ECA Court,
South Park, Sevenoaks, Kent TN13 1DU and can be accessed on the following
website:www.foresightgroup.eu
4. Â Â Net asset value per Ordinary Share
Net asset value per Ordinary Share is based on net assets at the year end of
£40,163,000 (2010: £26,713,000) and on 35,864,981 (2010: 26,970,770) Ordinary
Shares, being the number of Ordinary Shares in issue at that date.
5. Â Â Return per share
 13 months ended Year ended
 31 March 28 February
 2011 2010
 £'000 £'000
Total return after taxation 6,039 1,915
Basic return per share (note a) 18.8p 7.7p
----------------------------
Revenue return from ordinary activities after 315 189
taxation
Revenue return per share (note b) 1.0p 0.8p
----------------------------
Capital return from ordinary activities after 5,724 1,726
taxation
Capital return per share (note c) 17.8p 6.9p
----------------------------
Weighted average number of shares in issue during 32,204,092 24,879,997
the year
Notes:
a) Total return per share is total return after taxation divided by the weighted
average number of shares in issue during the period.
b) Revenue return per share is revenue return after taxation divided by the
weighted average number of shares in issue during the period.
c) Capital return per share is capital return after taxation divided by the
weighted average number of shares in issue during the period.
6. Â Â The Annual General Meeting will be held at 12.00pm on 21 September 2011 at
the offices of Martineau, 35 New Bridge Street, London EC4V 6BW.
7. Â Â Income
  13 months ended Year ended
  31 March 28 February
  2011 2010
  £'000 £'000
Loan stock interest  985 685
Overseas based Open Ended Invertment Companies 28 10
("OEIC(s)")
Bank deposits  12 2
----------------------------
  1,025 697
----------------------------
8. Â Â Investments held at fair value through profit or loss
   2011 2010
   £'000 £'000
Quoted investments   1,812 1,221
Unquoted investments   30,494 20,927
--------------------
   32,306 22,148
--------------------
  Quoted Unquoted Total
  £'000 £'000 £'000
Book cost as at 1 March 2010 Â 1,600 19,226 20,826
Investment holding (losses)/gains  (379) 1,701 1,322
-----------------------------
Valuation at 1 March 2010 Â 1,221 20,927 22,148
Movements in the year:
  Purchases at cost  -  4,331 4,331
  Disposal proceeds  -  (826) (826)
  Realised gains  -  16 16
  Investment holding gains  591 6,046 6,637
-----------------------------
Valuation at 31 March 2011 Â 1,812 30,494 32,306
-----------------------------
Book cost at 31 March 2011 Â 1,600 22,747 24,347
Investment holding gains  212 7,747 7,959
-----------------------------
Valuation at 31 March 2011 Â 1,812 30,494 32,306
-----------------------------
Deferred consideration of £14,000 was recognised and £134,000 was received
during the period.
9. Â Â Related party transactions
Foresight Group LLP and Foresight Fund Managers Limited are considered to be
related parties of the Company. Details of arrangements with these parties are
given in the Directors' Report and Note 3 within the Annual Report and Accounts.
Foresight Group, which acts as investment manager to the Company in respect of
its venture capital investments earned fees of £1,295,000 during the period,
(2010: £622,000) including carried interest of £259,000 (2010: £nil).
Foresight Fund Managers Limited is the Secretary of the Company and received
fees, of £86,294 (2010: £69,579) during the period. The annual secretarial fee
(which is payable together with any applicable VAT) is adjusted annually in line
with the UK Retail Prices Index.
At the balance sheet date there was £nil (2010: £6,718) due to or from Foresight
Group and £nil (2010: £nil) due to or from Foresight Fund Managers Limited. No
amounts have been written off in the period in respect of debts due to or from
related parties.
Foresight Group are responsible for external costs such as legal and accounting
fees, incurred on transactions that do not proceed to completion ('abort
expenses'). In line with common practice, Foresight Group retain the right to
charge arrangement and syndication fees and Directors' or monitoring fees ('deal
fees') to companies in which the Company invests.
Foresight Group is also a party to the performance incentive agreement described
in note 13 within the Annual Report and Accounts.
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Foresight 4 VCT PLC via Thomson Reuters ONE
[HUG#1532752]
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