Foresight Enterprise VCT plc - Half-year report

FORESIGHT ENTERPRISE VCT PLC

Summary

• Total net assets £123.5 million.
• An interim dividend of 4.2p per share was paid on 18 June 2021, returning £8.1 million to Shareholders.
• The portfolio value has increased by £11.9 million in the last six months.
• Net Asset Value per share increased by 2.7% in the period from 62.1p at 31 December 2020 to 63.8p at 30 June 2021. Including the payment of a 4.2p dividend made on 18 June 2021, NAV total return per share at 30 June 2021 was 68.0p, representing a positive total return of 9.5% in the period.

Chairman’s Statement
I am pleased to present the unaudited Half-Yearly Report for Foresight Enterprise VCT plc for the period ended 30 June 2021.

Material events during the period
Before providing other details, I would like to draw attention to the continuing impact of COVID-19 on the Company and its portfolio.

The COVID-19 virus has presented the Company and the management of every one of its portfolio companies with unprecedented challenges which it is anticipated will persist for a considerable time to come. The Manager continues to work closely with the portfolio companies, attempting to minimise any adverse impact and it is a great credit to the quality of the management of the portfolio companies that the fallout from the pandemic has not been even more significant. Until this virus is brought under worldwide control, it is impossible to assess its full impact and challenges remain.

The overall impact of the COVID-19 pandemic could be seen in the material fall in the valuation of the Company’s portfolio at 31 March 2020. On a positive note, I can say that so far this year the trading position of most of these businesses has significantly improved, resulting in an £11.9 million increase in portfolio value in the six months to 30 June 2021.

The end of the Brexit transition period on 31 December 2020 has created some economic uncertainty. The Manager has engaged with portfolio companies to prepare and advise them as some encounter supply chain challenges and experience staffing issues. Thanks to the diverse nature of the portfolio, with a combination of businesses focused on the domestic UK market and some that export and source worldwide, the Board remains confident that the Company is well-positioned to endure potential volatility.

Performance and portfolio activity
During the period Net Asset Value per share increased by 2.7% from 62.1p at 31 December 2020 to 63.8p at 30 June 2021. Including the payment of a 4.2p dividend made on 18 June 2021, NAV total return per share at 30 June 2021 was 68.0p, representing a positive total return of 9.5%. This positive movement is a result of the strategy and business changes throughout the portfolio alluded to above.

During the period under review the Manager completed three new investments and one follow‑on investment costing £4.1 million and £1.0 million respectively as well as announcing the sale of its investment in FFX Group Limited, generating a return of 4.3x on the original investment. Additionally, after the period end, the Manager completed one new investment and two follow-on investments costing £2.4 million and £0.9 million respectively as well as announcing the sale of its investment in Mologic Ltd, generating a return of 3.1x on the original investment. Also in August 2021 the Company sold its investment in Ixaris Group Holdings Limited. The Board and the Manager are confident that a number of new and follow‑on investments can be achieved in the remainder of the 2021 year, particularly with the increased investment activity noted above. Details of each of these new, existing and former portfolio companies can be found in the Manager’s Review.

Foresight Group LLP, the Company’s investment manager, continues to see a strong pipeline of potential investments sourced through its regional networks and well‑developed relationships with advisers and the SME community, however, it is also focused on supporting the existing portfolio through the COVID-19 pandemic. Following both the successful fundraises launched in May 2017 and June 2018, the Company is in a position to fully support the portfolio, where appropriate, and exploit
potential attractive investment opportunities.

Dividends
An interim dividend of 4.2p per share was declared on 20 May 2021 based on an ex-dividend date of 3 June 2021 and a record date of 4 June 2021. The dividend was paid on 18 June 2021.

As noted in the Annual Report and Accounts and in light of the change in portfolio towards earlier stage, higher risk companies as required by the new VCT rules, the Board felt it prudent to adjust the dividend policy towards a targeted annual dividend yield of 5% of NAV per annum. The Board and the Manager hope that this may be enhanced by additional ‘special’ dividends as and when particularly successful portfolio exits are made. The impact of COVID-19 will be taken into consideration when the Board considers dividends in the near term.

Shareholder communication
We were disappointed that so far this year we still have not been able to meet with Shareholders in person as a result of the travel restrictions imposed due to COVID-19. As an alternative, we invited Shareholders to our virtual AGM in July, as well as an online investor forum facilitated by the Manager in June.

We appreciate how popular such events are with our investors and will continue to hold similar events remotely until it is considered safe to meet in person. Details of any such future events will be communicated to investors.

Board composition
The Board continues to review its own performance and undertakes succession planning to maintain an appropriate level of independence, experience, diversity and skills in order to be in a position to discharge all its responsibilities.

Outlook
The persisting uncertainty over the full impact of COVID-19 and the ongoing changes related to Brexit create truly exceptional challenges for every business. The Company invests primarily in developing companies which by their nature benefit from general economic growth and the current environment places considerable demands upon them and their management teams. The Manager’s Private Equity Team is well aware of the management and business needs of each of the companies within the investment portfolio and is working closely with them to help them progress during these testing times.

Until the pandemic is brought under worldwide control there will inevitably be further, mainly unhelpful, implications for many UK based businesses. Notwithstanding this, the Board and the Manager have been impressed by the resilience shown by the significant majority of the Company’s investments and are optimistic that the existing portfolio has potential to add value once the virus has been successfully contained.

Raymond Abbott
Chairman
28 September 2021

Investment Manager’s Review
Portfolio summary
As at 30 June 2021 the Company’s portfolio comprised 38 investments with a total cost of £62.1 million and a valuation of £104.3 million. The portfolio is diversified by sector, transaction type and maturity profile. Details of the ten largest investments by valuation, including an update on their performance, are provided on pages 14 to 18.

During the six months to June, the value of the investment portfolio held rose by £11.9 million. This was driven by £5.1 million of new and follow-on investments and an increase of £12.5 million in the value of existing investments offset by a realisation of £5.7 million. The Company’s portfolio continues to recover following the impact of COVID-19 over the past 18 months. Many of the portfolio companies have successfully navigated the new economic landscape, with some performing extremely strongly while others continue to adjust.

The Manager remains focused on supporting an annual dividend to Shareholders of at least 5% of the NAV per share whilst retaining a stable NAV. The Company has made reasonable progress against these objectives in the period.

New investments
The Manager has taken a prudent approach to investing since the onset of COVID-19. Repeated lockdowns have made it challenging for the Private Equity Team to meet prospective companies and their teams face to face, an important part of assessing investments and developing relationships with management teams. However, the Manager and SMEs have adjusted to this new landscape given companies still wish to grow their businesses despite the economic uncertainty. The Manager continued to meet new companies and advisers throughout this period. Relationships are now forged virtually with deals being introduced and completed entirely online.

As a result, three new investments were completed in the six months to 30 June 2021. Further details of each of these are provided below. Behind these, there is a strong pipeline of opportunities that the Manager expects to convert during the second half of 2021.

NorthWest EHealth
In June 2021, the Company invested £1.5 million into NorthWest EHealth, which provides software and services to the clinical trials market, allowing pharmaceutical companies and contract research organisations to conduct feasibility studies, recruit patients and run trials. The investment will be used to expand the current data network, enabling the company to support a larger number of trials at a global level, increase product development and expand the sales and marketing team to help build long term, strategic relationships.

Hexarad Group
Also in June 2021, the Company invested £0.9 million into Hexarad Group, an early stage, high growth healthcare services company, providing teleradiology services to NHS Trusts and UK private healthcare customers. Headquartered in London, the company was founded in 2016 by a group of NHS consultant radiologists and differentiates itself through its clinical leadership and technology‑led proposition. The investment into Hexarad Group will enable the company to support more NHS and private healthcare customers and further improve customer and radiologist experience.

Additive Manufacturing Technologies
Finally, in June 2021, the Company invested £1.7 million into Additive Manufacturing Technologies (“AMT”), which manufactures systems that automate the post-processing of 3D printed parts. AMT originally received seed funding from Foresight Williams EIS in September 2019. The additional investment, made alongside further investment from Foresight Williams, will be used to further commercialise its products now they have achieved commercial traction.

Callen-Lenz Associates
Post-period end, in August 2021, £2.4 million of growth capital was invested into Callen-Lenz Associates, a provider of innovative technology solutions for unmanned aerial vehicles, commonly known as drones. Based near Salisbury, the company develops, designs, and manufactures vehicles, components, and software for drones globally.

Follow-on investments
The Manager had expected that more portfolio companies would need additional capital to support them through difficult trading conditions resulting from the various lockdowns, driving an increase in follow-on investment. However, the portfolio has remained relatively resilient, supported by the Manager, which has increased oversight of the portfolio and provided guidance to portfolio management teams throughout the pandemic. The Company made one follow-on investment in the period, totalling £1.0 million, to support further growth opportunities post‑COVID-19 restrictions lifting. Further details are provided below.

Many companies used forms of Government support, such as the furlough scheme and the Coronavirus Business Interruption Loan Scheme, which reduced the need for additional equity injections in the period. However, as these schemes unwind, the Manager anticipates some requirements for follow-on investment in the next six months.

Clubspark
In March 2021, Clubspark, a software platform that provides sports clubs and centres with the ability to manage operations such as court and equipment booking, received a £1.0 million follow-on investment from the Company. The investment will be used to expand into other sports and push further into international markets, such as the US.

Biotherapy Services
Post-period end, in July 2021 a follow-on of £0.8 million was also made into Biotherapy Services (“BTS”), a leading pharmaceutical biotech company. BTS has developed a wound care treatment for diabetic foot ulcers and the additional funds will be used to support its clinical trial.

Fertility Focus
In August 2021, post-period end, a £0.2 million follow-on investment was made into Fertility Focus, a leading fertility monitoring technology company that has developed registered medical devices that enable women to predict ovulation. The funding will be used to support a new product launch over the next 12 months.

Pipeline
At 30 June 2021, the Company held cash of £19.3 million, which will be used to fund new and follow-on investments, buybacks and running expenses and support the Company’s dividend objectives. The Manager is seeing a recovery in the pipeline of potential investments and has a number of opportunities under exclusivity or in due diligence. The Company remains well-positioned to continue pursuing these potential investment opportunities. As the economy recovers from the worst effects of COVID-19, the Manager expects demand for funding to increase, driving some particularly interesting opportunities for investment.

Exits and realisations
The M&A climate has remained surprisingly buoyant during the last 18 months. At first, most trade acquirers focused on their core business and private equity investors focused on their existing portfolios or on distressed acquisitions.

However, since the second half of last year, the Manager has seen acquisition interest returning, particularly in the healthcare, technology and e-commerce sectors, with numerous investment opportunities being presented for consideration.

In January 2021 the Company successfully sold its investment in FFX Group, one of the UK’s largest multi-channel, independent suppliers of high-quality power tools, fixings and building supplies. The transaction generated proceeds of £5.7 million at completion and the Company will receive up to £0.2 million of deferred consideration after 18 months subject to certain conditions. This implies a cash on cash return of 4.3x the initial investment of £1.4 million, made in October 2015, which is equivalent to an IRR of c.32%. During the investment period, FFX Group opened a new 60,000 sq ft distribution centre and a new head office in Kent. The business updated its brand and launched an extensive range of its own products. Since the Company’s investment, FFX Group more than tripled revenues and increased headcount by over 125.

Post-period end, the Company announced the successful sale of Mologic, a health diagnostics company providing both contract research services for clients and developing its own range of proprietary point-of-care diagnostics products. It was sold to Global Access Health, a not-for-profit company financed by the Soros Economic Development Fund, the impact investing arm of the Open Society Foundations and a group of other philanthropic organisations and investors. The return multiple of 3.1x includes deferred consideration, which is equivalent to an IRR of c.38%. During the investment period, the Mologic team has worked with the Manager to strengthen the business, advancing the product portfolio, increasing turnover by over 165% and increasing employee numbers by over 40%. The business has also developed a presence in the US, opening an office on the East Coast, and developed a manufacturing partnership in West Africa.

The Company’s investment in Ixaris Group Holdings was sold in August 2021 to Nium, a global B2B payments platform

Disposals in the six months to 30 June 2021

Company	Detail	Accounting cost at date of disposal (£)	Proceeds   (£)	Realised gain (£)	Valuation at 31 December 2020 (£)
FFX Group Limited	Full Disposal	1,372,002	5,651,7561	4,279,754	5,723,459

¹A further £71,703 in deferred consideration has been reflected in the accounts.

Key portfolio developments
In the first six months of the year, the portfolio has shown further recovery, which started in the second half of 2020, as businesses adapt to the new economic climate combined with the gradual easing of restrictions.

The value of unquoted investments held rose by £11.9 million in the six months to June, driven by deployment of £5.1 million and an increase in value of existing investments by £12.5 million offset by a realisation of £5.7 million. A disciplined approach to investment valuations has been maintained in light of COVID-19. During the prior period, the value of investments held rose by £26.2 million, driven by deployment of £6.5 million and an increase in the value of existing investments of £19.7 million.

Material changes in valuation, defined as increasing or decreasing by £1.0 million or more since 31 December 2020, are detailed below. Updates on these companies are included in the Top Ten Investments section on pages 14 to 18.

Key valuation changes in the period

Company	Valuation (£)	Valuation Change (£)
Galinette Limited	3,317,884	2,057,468
Biofortuna Ltd	8,559,163	1,377,859
Aerospace Tooling Corporation Limited	4,072,294	1,075,795
Hospital Services Group Limited	4,294,035	1,070,285
Mologic Ltd	3,257,940	1,055,793

Outlook
The United Kingdom has now lifted most of its COVID-19 restrictions, marking a milestone as the country moves into a new phase. However, this newfound freedom has brought with it a raft of challenges, including a sharp rise in new COVID-19 cases and the consequential increase in the percentage of the population isolating. This has led to staff shortages across the country, leading to either reductions in capacity or the temporary closure of businesses.

The rules are changing constantly, and it is clear that COVID-19 will still continue to impact trading in the medium term and businesses must remain cautious through this transition to the ‘new normal’. The Manager will continue to provide added support to its portfolio companies and, if the situation worsens, will be on standby to administer the same ‘toolbox’ of support as in prior lockdowns.

On a positive note, the International Monetary Fund believes that the UK economy will grow faster than previously expected this year, upgrading the UK’s forecast to 7% growth. Despite this, the Manager has taken a prudent view, encouraging companies to revise budgets to manage creditor stretch and debt build-up, particularly due to the reduction of Government support. The Manager is ensuring that finance directors at the portfolio companies continue to tightly manage overheads and critically assess capital expenditure given the uncertain macro environment.

Whilst COVID-19 has brought unprecedented disruption, it has also prompted many organisations to reassess their business models and take action to adapt to a new economic landscape. A number of the Company’s portfolio have used this as an opportunity to review their overall strategy, venture into a new market or launch a new product or service.

For example, to supplement lost revenues from their core business some portfolio companies have procured and provided PPE or other protective equipment, such as hand sanitising stations or screens. Healthcare and life science investments have also contributed to national efforts to defeat the virus by manufacturing COVID-19 testing kits.

Some of the portfolio companies used this time as an opportunity to improve online activity and have seen an uptick in revenues as a consequence. With the trend towards e-commerce accelerating during COVID-19, retail businesses will need to continue embracing this channel fully and make it a core part of the overall growth strategy.

The Manager is working closely with portfolio companies to ensure they are well-positioned to capitalise on this opportunity.

Beyond COVID-19, the end of the Brexit transition period on 31 December 2020 has also created some economic uncertainty. The Manager has worked closely with portfolio companies to prepare them to the best extent possible as some of them encounter supply chain challenges and experience staffing issues. Thanks to the diverse nature of the portfolio, with a combination of businesses focused on the domestic UK market and some that export and source worldwide, the Manager remains confident that the Company is well-positioned to endure potential volatility.

Notwithstanding this uncertain economic backdrop, the Manager continues to see encouraging levels of activity from smaller UK companies seeking growth capital. The Manager expects this to increase as companies begin to recover from the impact of COVID-19, with requirements for permanent funding to working capital. VCTs are still viewed by many entrepreneurs as an attractive source of capital that provide scale‑up funding to businesses at an early stage of their growth, when other sources of funding may not be readily available or alongside other sources of capital, including government measures for supporting businesses during COVID-19.

Despite the challenges of COVID-19 in the medium and long term, the UK remains an excellent place to start, scale and sell a business, with broad pools of talent and an entrepreneurial culture.

Russell Healey
on behalf of Foresight Group LLP
Head of Private Equity
Foresight Group LLP
28 September 2021

Unaudited half-yearly results and responsibilities statements
Principal risks and Uncertainties

The principal risks faced by the Company are as follows:

• Performance
• Regulatory
• Economic (external shocks)
• Operational
• Financial

The Board reported on the principal risks and uncertainties faced by the Company in the Annual Report and Accounts for the period ended 31 December 2020. A detailed explanation can be found on page 27 of the Annual Report and Accounts which is available on Foresight Enterprise VCT’s website www.foresightenterprisevct.com or by writing to Foresight Group LLP at The Shard, 32 London Bridge Street, London, SE1 9SG. The Board considers that these principal risks and uncertainties are equally applicable to the remaining six months of the financial year as they were to the six months under review.

In the view of the Board, there has been a further change to the fundamental nature of these risks since the previous report. As the Brexit transition period ended on 31 December 2020, a number of portfolio companies have recently experienced increased economic uncertainty including supply chain challenges and staffing shortages. The Board and the Manager continue to follow Brexit developments closely with a view to identifying where changes affect the areas of the market in which portfolio companies operate. This enables the Manager to work closely with portfolio companies, preparing them to the best extent possible to ensure they are well‑positioned to endure potential volatility.

Directors’ responsibility statement
The Disclosure and Transparency Rules (‘DTR’) of the UK Listing Authority require the Directors to confirm their responsibilities in relation to the preparation and publication of the Half-Yearly Financial Report and financial statements.

The Directors confirm to the best of their knowledge that:

1. The summarised set of financial statements has been prepared in accordance with FRS 104
2. The interim management report includes a fair review of the information required by DTR 4.2.7R (indication of important events during the first six months and description of principal risks and uncertainties for the remaining six months of the year)
3. The summarised set of financial statements gives a true and fair view of the assets, liabilities, financial position and profit or loss of the Company as required by DTR 4.2.4R
4. The interim management report includes a fair review of the information required by DTR 4.2.8R (disclosure of related parties’ transactions and changes therein)

Going concern
The Company’s business activities, together with the factors likely to affect its future development, performance and position, are set out in the Strategic Report of the Annual Report. The financial position of the Company, its cash flows, liquidity position and borrowing facilities are described in the Chairman’s Statement, Strategic Report and Notes to the Accounts of the 31 December 2020 Annual Report.

In addition, the Annual Report includes the Company’s objectives, policies and processes for managing its capital; its financial
risk management objectives; details of its financial instruments; and its exposures to credit risk and liquidity risk.

The Company has considerable financial resources together with investments and income generated therefrom across a variety of industries and sectors. As a consequence, the Directors believe that the Company is well placed to manage its business risks successfully.

The Directors have reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the annual financial statements.

The Half-Yearly Financial Report has not been audited nor reviewed by the auditors.

On behalf of the Board
Raymond Abbott
Chairman
28 September 2021

Financial Statements
Unaudited Income Statement
for the six months ended 30 June 2021

	Six months ended			Six months ended			Nine months ended
	30 June 2021			30 September 2020			31 December 2020
	(Unaudited)			(Unaudited)			(Audited)
	Revenue	Capital	Total	Revenue	Capital	Total	Revenue	Capital	Total
	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000
Investment holding gains	-	8,253	8,253	-	9,990	9,990	-	20,372	20,372
Realised gains/(losses) on investments	-	4,280	4,280	-	-	-	-	(623)	(623)
Income	190	-	190	324	-	324	67	-	67
Investment management fees	(290)	(871)	(1,161)	(295)	(884)	(1,179)	(434)	(1,301)	(1,735)
Other expenses	(291)	-	(291)	(270)	-	(270)	(490)	-	(490)
(Loss)/return on ordinary activities before taxation	(391)	11,662	11,271	(241)	9,106	(8,865)	(857)	18,448	17,591
Taxation	-	-	-	-	-	-	-	-	-
(Loss)/return on ordinary activities after taxation	(391)	11,662	11,271	(241)	9,106	(8,865)	(857)	18,448	17,591
(Loss)/return per share:	(0.2)p	6.0p	5.8p	(0.1)p	4.7p	4.6p	(0.4)p	9.5p	9.1p

During the period, the Company shortened its accounting period from 31 March 2021 to 31 December 2020. Given this change, the latest half-yearly and annual comparative results shown in this report are for the six months ending 30 September 2020 and the nine months ending 31 December 2020.

The total columns of this statement are the profit and loss account of the Company and the revenue and capital columns represent supplementary information.

All revenue and capital items in the above Income Statement are derived from continuing operations. No operations were acquired or discontinued in the period.

The Company has no recognised gains or losses other than those shown above, therefore no separate statement of total recognised gains and losses has been presented.

The Company has only one class of business and one reportable segment, the results of which are set out in the Income Statement and Balance Sheet.

There are no potentially dilutive capital instruments in issue and, therefore, no diluted earnings per share figures are relevant. The basic and diluted earnings per share are, therefore, identical.

Unaudited Balance Sheet
at 30 June 2021
Registered Number: 03506579

	As at	As at	As at
	30 June	30 September	31 December
	2021	2020	2020
	£'000	£'000	£'000
	(Unaudited)	(Unaudited)	(Audited)
Fixed assets
Investments held at fair value through profit or loss	104,338	76,196	92,441
Current assets
Debtors	149	971	162
Cash and cash equivalents	19,258	34,884	27,862
Total current assets	19,407	35,855	28,024
Creditors
Amounts falling due within one year	(214)	(124)	(111)
Net current assets	19,193	35,731	27,913
Net assets	123,531	111,927	120,354
Capital and reserves
Called-up share capital	1,938	1,944	1,939
Share premium account	68,344	80,002	67,458
Capital redemption reserve	539	518	523
Special distributable reserve	58,921	56,678	68,307
Capital reserve	(48,505)	(50,874)	(51,914)
Revaluation reserve	42,294	23,659	34,041
Equity Shareholders' funds	123,531	111,927	120,354
Net Asset Value per share:	63.8p	57.6p	62.1p

Unaudited Reconciliation of Movements in Shareholders’ Funds
for the six months ended 30 June 2021

	Called-up share capital	Share premium account	Capital redemption reserve	Special distributable reserve1	Capital reserve1	Revaluation reserve	Total
	£’000	£’000	£’000	£’000	£’000	£’000	£’000
As at 1 January 2021	1,939	67,458	523	68,307	(51,914)	34,041	120,354
Share issues in the period	15	918	-	-	-	-	933
Expenses in relation to share issues	-	(32)	-	-	-	-	(32)
Repurchase of shares	(16)	-	16	(909)	-	-	(909)
Realised gains on disposals of investments	-	-	-	-	4,280	-	4,280
Investment holding gains	-	-	-	-	-	8,253	8,253
Dividends paid	-	-	-	(8,086)	-	-	(8,086)
Management fees charges to capital	-	-	-	-	(871)	-	(871)
Revenue loss for the period	-	-	-	(391)	-	-	(391)
As at 30 June 2021	1,938	68,344	539	58,921	(48,505)	42,294	123,531

¹Reserve is available for distribution, total distributable reserves at 30 June 2021 are £10,416,000 (31 December 2020: £16,393,000).

Unaudited Cash Flow Statement
for the six months ended 30 June 2021

	Six months ended	Six months ended	Nine months ended
	30 June 2021	30 September 2020	31 December 2020
	£'000	£'000	£'000
	(Unaudited)	(Unaudited)	(Audited)
Cash flow from operating activities
Loan interest received on investments	205	29	136
Dividends received from investments	21	-	-
Deposit and similar interest received	1	26	28
Investment management fees paid	(1,161)	(1,179)	(1,283)
Secretarial fees paid	(79)	(79)	(119)
Other cash payments	(216)	(147)	(349)
Net cash outflow from operating activities	(1,229)	(1,350)	(1,587)
Cash flow from investing activities
Purchase of investments	(5,087)	-	(6,532)
Net proceeds on sale of investments	5,652	-	46
Net cash inflow/(outflow) from investing activities	565	-	(6,532)
Cash flow from financing activities
Expenses of fund raising	(32)	(19)	(28)
Repurchase of own shares	(756)	(795)	(1,085)
Equity dividends paid	(7,152)	(4,824)	(4,824)
Net cash outflow from financing activities	(7,940)	(5,638)	(5,937)
Net outflow in cash in the period	(8,604)	(6,988)	(14,010)
Reconciliation of net cash flow to movement in net funds
Decrease in cash and cash equivalents for the period	(8,604)	(6,998)	(14,010)
Net cash and cash equivalents at start of period	27,862	41,872	41,872
Net cash and cash equivalents at end of period	19,258	34,884	27,862

Analysis of changes in net debt

	At 1 January 2021	Cash Flow	At 30 June 2021
	£’000	£’000	£’000
Cash and cash equivalents	27,862	(8,604)	19,258

Notes to the Unaudited Half-Yearly Results
for the six months ended 30 June 2021

1. The Unaudited Half-Yearly Financial Report has been prepared on the basis of the accounting policies set out in the statutory accounts of the Company for the nine months ended 31 December 2020. Unquoted investments have been valued in accordance with IPEV Valuation Guidelines.
2. These are not statutory accounts in accordance with S436 of the Companies Act 2006 and the financial information for the six months ended 30 June 2021 and 30 September 2020 has been neither audited nor formally reviewed. Statutory accounts in respect of the nine months ended 31 December 2020 have been audited and reported on by the Company’s auditors and delivered to the Registrar of Companies and included the report of the auditors which was unqualified and did not contain a statement under S498(2) or S498(3) of the Companies Act 2006. No statutory accounts in respect of any period after 31 December 2020 have been reported on by the Company’s auditors or delivered to the Registrar of Companies.
3. Copies of the Unaudited Half-Yearly Financial Report will be sent to Shareholders via their chosen method and will be available for inspection at the Registered Office of the Company at The Shard, 32 London Bridge Street, London, SE1 9SG.
4. Net Asset Value per share

The Net Asset Value per share is based on net assets at the end of the period and on the number of shares in issue at the date.

	Net Assets	Shares in Issue
30 June 2021	£123,531,000	193,758,305
30 September 2020	£111,927,000	194,420,778
31 December 2020	£120,354,000	193,859,213

5. Return per share

The weighted average number of shares used to calculate the respective returns are shown in the table below.

	Shares
Six months ended 30 June 2021	193,660,150
Six months ended 30 September 2020	194,054,492
Nine months ended 31 December 2020	194,099,123

Earnings for the period should not be taken as a guide to the results for the full year.

6. Income

	Six months ended	Six months ended	Nine months ended
	30 June 2021	30 September 2020	31 December 2020
	£'000	£'000	£'000
Loan stock interest	168	278	19
Dividends	21	-	-
Deposit and similar interest received	1	26	28
Other income	-	20	20
Total income	190	324	67

7. Investments held at fair value through profit or loss

	£'000
Book cost as at 1 January 2021	58,400
Investment holding gains	34,041
Valuation at 1 January 2021	92,441
Movements in the period:
Purchases	5,087
Disposal proceeds1	(5,652)
Realised gains	4,280
Investment holding gains2	8,182
Valuation at 30 June 2021	104,338
Book cost at 30 June 2021	62,115
Investment holding gains	42,223
Valuation at 30 June 2021	104,338

¹The Company received £5,651,756 from the disposal of investments during the period. The book cost of these investments when they were disposed was £1,372,002. These investments have been revalued over time and until they were sold any unrealised gains or losses were included in the fair value of the investments.

²Investment holding gains in the income statement include the deferred consideration debtor of £71,703, relating to FFX Group Limited.

8. Related party transactions

No Director has an interest in any contract to which the Company is a party other than their appointment and payment as Directors.

9. Transactions with the manager

Foresight Group LLP acts as manager to the Company and was appointed on 27 January 2020. During the period, services of a total cost of £1,161,000 (30 September 2020: £1,179,000; 31 December 2020: £1,735,000) were purchased by the Company from Foresight Group LLP.

During the period, administration services of a total cost of £79,000 (30 September 2020: £79,000; 31 December 2020: £119,000) were delivered to the Company by Foresight Group LLP, Company Secretary.

At 30 June 2021, the amount due from Foresight Group LLP was £nil (30 September 2020: £452,000; 31 December 2020: £nil).

END

For further information please contact:
Gary Fraser, Foresight Group: 0203 667 8181