Half-yearly report
FORESIGHT VCT PLC
Financial Highlights
* Net asset value per Ordinary Share as at 30 June 2011 was 108.8p compared to
100.1p (rebased) as at
31 December 2010.
* Net asset value per Planned Exit Share as at 30 June 2011 was 93.7p compared
to 95.5p as at 31 December 2010.
* Final dividends of 5.0p per Ordinary Share and 3.0p per Planned Exit Share
were paid on 17 June 2011.
* Acquisition of Keydata Income VCT 1 plc and Keydata Income VCT 2 plc.
* Six follow-on investments were made from the Ordinary Shares fund totalling
£835,995: smartFOCUS (£371,319), @Futsal
(£170,988), Closed Loop Recycling (£150,000), Silvigen (£83,336), Land Energy
(£47,367) and SkillsMarket (£12,985).
* Three realisations were made and three loan repayments were received
totalling £6,859,275 in the Ordinary Shares
fund: smartFOCUS (£3,857,282), Actimax (£1,953,215), Ffastfill (£736,278),
Camwood (£166,667), AppDNA
(£83,333) and Trilogy Communications (£62,500).
* One realisation was made from the Planned Exit Share fund: Foresight
Luxembourg Solar 2 (£1,000,000).
Chairman's Statement
Performance and Dividends
I am pleased to be able to report sound progress in the development of our
investment portfolios.
The Company has two classes of shares (Ordinary Shares and Planned Exit Shares)
and each class of share has its own portfolio of investments, the performances
of which are more fully described in the Investment Manager's Report. In
summary, during the period ended 30 June 2011, the net asset value of the
Ordinary Share portfolio increased by 14.4%, after taking account of the 5.0p
dividend paid on 17 June 2011, to 108.8p per share. The majority of the increase
was generated by valuation increases in Autologic Diagnostics, Trilogy
Communications, AppDNA and Alaric Systems. Further information on these
companies can be found in the Investment Manager's Report. The net asset value
of the Planned Exit Share portfolio increased by 1.3%, after taking account of
the 3.0p dividend paid on 17 June 2011, to 93.7p per share.
Notwithstanding these positive signs, stock market sentiment as evidenced
recently is fragile, significant macroeconomic uncertainties remain, and trading
and credit conditions continue to be difficult in many sectors of the economy.
Against this background Foresight Group continues to believe it important to
adopt a cautious approach to managing the portfolio.
The Company's policy is whenever possible to maintain a steady flow of tax-free
dividends, generated from income or from capital profits realised on the sale of
investments. Notwithstanding our awareness of future uncertainty, encouraged by
the flow of recent investment gains and income generated from loan stock, the
Board paid a final dividend of 5.0p per new Ordinary Share for the year ended
31 December 2010 on 17 June 2011 and a final dividend of 3.0p per Planned Exit
Share for the year ended 31 December 2010 on the same day.
Valuation Policy
Investments held by the Company have been valued in accordance with the
International Private Equity and Venture Capital (IPEVC) valuation guidelines
(September 2009) 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 30 June 2011.
The portfolio valuations are prepared by Foresight Group and are subject to
approval by the Board.
Acquisition of Keydata Income VCT 1 plc and Keydata Income VCT 2 plc ('Keydata')
Following shareholder approval, the assets of Keydata (approximately £3.6
million) were acquired by the Company on 28 February 2011. A total of 6,463,504
Ordinary Shares (at a net asset value of 55.44p per Ordinary Share - prior to
the Ordinary Share reconstruction) in Foresight VCT plc were issued as
consideration to the shareholders of Keydata. Following the completion of the
merger there were 54,004,889 Ordinary Shares in issue. Dependent upon the
commercial success of its gasification project in Derby (now known as Clarke
Power Services Limited), for which the Keydata assets were acquired, additional
consideration may be payable to Keydata shareholders up to a maximum amount of
£2.8 million on or shortly after 30 September 2013.
Clarke Power Services' project in Derby (3.0 MW of waste wood gasification) is
progressing well with construction of the plant now largely complete. Testing
and commissioning will be carried out over the next few months with first
electricity output targeted for mid November 2011.
Ordinary Shares Reconstruction
Also with shareholder approval, on 1 March 2011 the Ordinary Shares underwent a
reconstruction such that the underlying net asset value (NAV) of each Ordinary
Share was rebased to 100.0p. The reconstruction resulted in Ordinary
Shareholders' holdings being adjusted by a ratio of 0.554417986 per Ordinary
Share held at the close of business on 1 March 2011 and in 29,941,281 new
Ordinary Shares being issued. The reconstruction of the Ordinary Share capital
of Foresight VCT plc has not impacted the value of Shareholders' holdings.
Enhanced Buy-Back
I am pleased to report that the Company's enhanced buyback scheme proved to be
popular with shareholders with 6,034,893 Ordinary Shares being tendered for the
enhanced buyback at 100.0p per share, with the effect of releasing a further
£1.8 million of income tax relief for shareholders.
As part of the transaction, 5,913,777 new Ordinary Shares were issued at 102.0p
per share.
Other Share Issues and Share Buy-Backs
The Company announced alongside the enhanced buyback a small top-up offer of
Ordinary Shares. The offer was open during March and April 2011 and 234,918
Ordinary Shares were issued at 100.0p per share.
On 20 June 2011 61,188 Ordinary Shares of 1.0 pence each in the Company were
allotted under the Company's Dividend Reinvestment Scheme at 95.85p per share.
All of these share issues were under the new VCT provisions which commenced on
6 April 2006, namely: 30% upfront income tax relief which can be retained by
qualifying investors if the shares are held for the minimum five year holding
period.
As part of the Company's active buy-back programme, during the period,
1,422,000 Ordinary Shares were purchased for cancellation at a cost of
£1,248,000, representing an average discount of approximately 12% to net asset
value.
Directorate change
Following 14 years' service as a Director of Foresight VCT plc, Antony Diment
retired from the Board on 26 May 2011.
I would like to thank Tony for all of his hard work in his role as a Director
and Chairman of the Audit Committee since the Company's launch in 1997.
Outlook
Following two years of economic fragility we are witnessing potential acquirers
slowly returning to the market and this has been reflected in the increase in
portfolio activity in terms of realisations over the last six months.
Additionally, Foresight Group is seeing its deal flow of new investment
opportunities increasing but we remain cautious about the economic outlook and
the Manager will aim to invest only in new opportunities which are considered
sufficiently robust and attractive. The Board and Investment Manager are hopeful
that the positive current performance of the portfolio will translate into
realisations that will, over the medium term, be reflected in further positive
net asset value performance and continued distributions to shareholders.
John Gregory
Chairman
Telephone: 01296 682 751
email: j.greg@btconnect.com
31 August 2011
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. However, equities and
markets are displaying extreme volatility with the fundamentals remaining highly
challenging and indicators broadly inconsistent. We continue to believe that
consensus expectations do not fully reflect a scenario of slow growth for 2011
and that inflation could undermine prospects over coming months. Against this
background, we are only looking at opportunities which are considered robust and
attractive in valuation terms.
Portfolio Review
The performance of a number of portfolio companies continued to improve,
reflecting growing demand and strong sales pipelines, most notably Autologic
Diagnostics, Trilogy Communications, AppDNA and Alaric Systems.
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 generated an operating profit of £2.7 million on
sales of £9.3 million. The company is continuing to grow sales and profits in
its current financial year.
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. An investment of £150,000 was made
from the Ordinary Shares fund in the period to further upgrade its conveyor
system. 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 Recycling is currently profitable and
generating revenues in excess of £1.3 million per month.
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 Communications 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 £62,500 in
March 2011. The outlook for the current year is positive, and the first few
months of financial year 2011/12 have shown record trading results. For the year
to February 2011, the company's audited accounts showed strong sales growth,
with sales of £8.6 million and earnings before interest, tax, depreciation and
amortisation of £1.2 million.
App-DNA has continued to achieve strong growth over the past six months. The
company has set up subsidiaries in France and Australia in addition to its
existing US operation, and is selling its market leading AppTitude software
globally to large enterprises. The company recently won the award for "Best
Desktop Transformation" at the Citrix Synergy event in San Francisco for the
second year in a row. The company was also named by Everything Channel in their
CRN Virtualization top 100 List.
Infrared Integrated Systems is seeing growth for its full range of solutions and
services in North America, Europe and Asia. The company continues to develop
innovative hardware and software solutions for people counting, queue monitoring
and thermal imaging, and is exploring other markets for its products. The
outlook for the current year is positive and the company is trading at record
levels.
Alaric continues to perform well, enjoying strong demand Worldwide for its
payment system software, principally credit card authorisation ("Authentic") and
card fraud detection ("Fractals") software. Contracts have been won recently in
the US, Mexico, Canada, Australia and New Zealand while a number of other
promising contracts are in prospect, including in the Far East. Capacity to
satisfy these orders is being met through continuing expansion of the office in
Kuala Lumpur. Audited accounts for the year to 31 March 2011 showed significant
growth in PBIT to £540k (NPBT of £419k) on £5.54 million sales, well ahead of
budget. The budget for the current year to March 2012 shows substantial growth
in sales and profitability.
@Futsal is one of the fastest growing indoor sports 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 at which point a further £170,988 was provided
from the Ordinary Shares fund to fund this expansion. Sales growth, however, is
behind original expectations and progress towards profitability has been
impacted as a result.
Silvigen received further funding of £83,336 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.
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 £47,367 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 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 £12,985 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.
Investment Activity
Ordinary Shares Fund - Purchases
Six follow-on investments were made from the Ordinary Shares fund totalling
£835,995. These were smartFOCUS (£371,319), @Futsal (£170,988), Closed Loop
Recycling (£150,000), Silvigen (£83,336), Land Energy (£47,367) and SkillsMarket
(£12,985).
Ordinary Shares Fund - Realisations
There were three realisations and three loan repayments totalling £6,859,275 in
the period.
Foresight VCT's holding in smartFOCUS was sold to Francisco Partners for
proceeds of £3,857,281 against an original cost of 1,076,539 generating a return
of 3.6 times of original cost.
Actimax was sold to Synova Capital in April 2011 for total proceeds of £4.4
million. Foresight VCT's element of this was 1,953,215, a return of 3.6 times
original cost of £546,668. A further payment of £166,048 was received during
August 2011.
We took the opportunity to realise our entire holding in Ffastfill in the first
six months of the year when the shares displayed underlying strength and we were
able to exit at a price that represented a five year high for the business. This
generated proceeds of £736,278.
Loan repayments were received from Camwood (£166,667), AppDNA (£83,333) and
Trilogy Communications (£62,500) during the period.
Planned Exit Shares Fund - Realisations
One realisation was made from the Planned Exit Shares fund during the period.
Foresight Luxembourg Solar 2 was sold to Foresight Solar VCT plc for original
cost of £1,000,000, reflecting an independent third-party valuation.
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.
Foresight is actively pursuing a number of portfolio realisations across several
market sectors to generate value and distributions for 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 across
each of the Company's share classes could be attractive acquisition candidates.
David Hughes
Chief Investment Officer, Foresight Group
Unaudited Half-Yearly Results and Responsibility Statements
Principal Risks and Uncertainties
The principal risks faced by the Company can be divided into various areas as
follows:
* Performance;
* Regulatory;
* Operational; and
* Financial.
The Board reported on the principal risks and uncertainties faced by the Company
in the Annual Report and Accounts for the year ended 31 December 2010. A
detailed explanation can be on found on page 16 of the Annual Report and
Accounts which is available on www.foresightgroup.eu or by writing to Foresight
Group at ECA Court, South Park, Sevenoaks, Kent, TN13 1DU.
In the view of the Board, there have been no changes to the fundamental nature
of these risks, except for currency risk, since the previous report and these
principal risks and uncertainties are equally applicable to the remaining six
months of the financial year as they were to the six months under review.
Directors' Responsibility Statement:
The Disclosure and Transparency Rules ('DTR') of the UK Listing Authority
require the Directors to confirm their responsibilities in relation to the
preparation and publication of the Interim Report and financial statements.
The Directors confirm to the best of their knowledge that:
a) the summarised set of financial statements has been prepared in accordance
with the pronouncement on interim reporting issued by the Accounting Standards
Board;
b) 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);
c) the summarised set of financial statements give a true and fair view of the
assets, liabilities, financial position and profit or loss of the Company as
required by DTR 4.2.4R; and
d) the interim management report includes a fair review of the information
required by DTR 4.2.8R (disclosure of related parties'
transactions and changes therein).
Going Concern
The Company's business activities, together with the factors likely to affect
its future development, performance and position, are set out in the Business
Review in the 31 December 2010 annual report. The financial position of the
Company, its cash flows, liquidity position and borrowing facilities are
described in the Chairman's Statement, Business Review and Notes to the Accounts
of the 31 December 2010 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
hedging activities; and its exposures to credit risk and liquidity risk.
The Company has considerable financial resources together with investments and
income generated there from 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 despite the current uncertain economic outlook.
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 or reviewed by the
auditors.
On behalf of the Board
John Gregory
Chairman
31 August 2011
Unaudited Non-Statutory Analysis between the
Ordinary Shares and Planned Exit Shares Funds
Income Statements
for the six months ended 30 June 2011
Planned Exit Shares
 Ordinary Shares Fund Fund
 Revenue Capital Total Revenue Capital Total
 £'000 £'000 £'000 £'000 £'000 £'000
Realised gains on investments - 4,145 4,145 - - -
Investment holding gains - (23) (23) - 55 55
Realised loss on the value of - - - - (35) (35)
derivatives
Income 183 - 183 113 - 113
Investment management fees (68) (204) (272) (7) (22) (29)
Other expenses (208) - (208) Â (31) - (31)
-------------------------------------------------
Return/(loss) on ordinary (93) 3,918 3,825 75 (2) 73
activities before taxation
Taxation 3 - 3 (7) 4 (3)
-------------------------------------------------
Return/(loss) on ordinary     (90) 3,918 3,828 68 2 70
activities after taxation
-------------------------------------------------
Return/(loss) per share (0.3)p 11.0p 10.7p 1.1p 0.0p 1.1p
-------------------------------------------------
Balance Sheets
at 30 June 2011
 Ordinary Shares Fund Planned Exit Shares Fund
 £'000 £'000
Non-current assets
Investments held at fair value 26,519 2,801
through profit or loss
----------------------------------------------
Current assets
Debtors 1,028 306
Derivative financial instruments - 12
Money market securities and other 103 1,701
deposits
Cash 3,694 968
----------------------------------------------
 4,825 2,987
Creditors
Amounts falling due within one (126) (1)
year
----------------------------------------------
Net current assets 4,699 2,986
----------------------------------------------
Net assets 31,218 5,787
----------------------------------------------
Capital and reserves
Called-up share capital 287 62
Share premium account 21,552 5,784
Special distributable reserve 10,583 (54)
Capital redemption reserve 344 -
Revenue reserve (262) 160
Capital reserve 1,031 (175)
Revaluation reserve (2,317) 10
----------------------------------------------
Equity shareholders' funds 31,218 5,787
----------------------------------------------
Number of shares in issue 28,694,271 6,179,833
Net asset value per share 108.8p 93.7p
----------------------------------------------
Reconciliation of Movements in Shareholders' Funds
for the six months ended 30 June 2011
Called-
up Share Special Capital
Ordinary share premium distributable redemption Revenue Capital Revaluation
Shares capital account reserve reserve reserve reserve reserve Total
 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
As at 1 475 11,893 18,070 29 (172) (1,611) (2,294) 26,390
January 2011
Share (241) - - 241 - - - -
reconstruction
Share issues 127 9,785 - - - - - 9,912
in the period
Expenses in
relation to - (126) - - - - - (126)
share issues
Repurchase of (74) - (7,283) 74 - - - (7,283)
shares
Net realised
gain on - - - - - 4,145 - 4,145
disposal of
investments
Investment - - - - - - (23) (23)
holding losses
Dividends - - - - - (1,503) - (1,503)
Management
fees charged - - (204) - - - - (204)
to capital
Revenue loss - - - - (90) - - (90)
for the period
-----------------------------------------------------------------------------
As at 30 June 287 21,552 10,583 344 (262) 1,031 (2,317) 31,218
2011
-----------------------------------------------------------------------------
Called-
up Share Special Capital
Planned Exit share premium distributable redemption Revenue Capital Revaluation
Shares capital account reserve reserve reserve reserve reserve Total
 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
As at 1 62 5,784 (32) - 92 6 (10) 5,902
January 2011
Investment - - - - - - 55 55
holding gains
Unrealised
loss on the - - - - - - (35) (35)
value of
derivatives
Dividends - - - - - (185) - (185)
Management -
fees charged - - (22) - - - (22)
to capital
Tax credited   - - - 4 - 4
to capital
Revenue return - - - - 68 - - 68
for the period
-----------------------------------------------------------------------------
As at 30 June 62 5,784 (54) - 160 (175) 10 5,787
2011
-----------------------------------------------------------------------------
Unaudited Income Statement
for the six months ended 30 June 2011
Six months ended Six months ended Year ended
 30 June 2011 30 June 2010 31 December 2010
 Revenue Capital Total Revenue Capital Total Revenue Capital Total
 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Realised
gains/(losses) - 4,145 4,145 - (1,293) (1,293) - Â (1,112) (1,112)
on investments
Investment - 32 32 - 4,950 4,950 - 8,748 8,748
holding gains
Realised loss
on the value - (35) (35) - - - - 25 25
of derivatives
Income 296 - 296 303 - 303 665 - 665
Investment
management (75) (226) (301) (50) (149) (199) Â (113) Â (339) (452)
fees
Other expenses (239) - (239) (200) - (200) Â (355) - (355)
-----------------------------------------------------------------------
(Loss)/return
on ordinary
activities (18) 3,916 3,898 53 3,508 3,561 197 7,322 7,519
before
taxation
Taxation (4) 4 - - - - - - -
-----------------------------------------------------------------------
(Loss)/return
on ordinary (22) 3,920 3,898 53 3,508 3,561 197 7,322 7,519
activities
after taxation
-----------------------------------------------------------------------
Return per
share:
Ordinary Share (0.3)p 11.0p 10.7p 0.1p 13.2p 13.3p 0.4p 27.7p 28.1p
-----------------------------------------------------------------------
Planned Exit 1.1p 0.0p 1.1p 0.7p (0.1)p 0.6p 1.7p (0.7)p 1.0p
Share
-----------------------------------------------------------------------
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 other than the acquisitions
of Keydata Income VCT 1 plc and Keydata Income VCT 2 plc. No operations were
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.
Unaudited Balance Sheet
at 30 June 2011
 As at As at As at
 30 June 2011 30 June 2010 31 December 2010
 (unaudited) (unaudited) (audited)
 £'000 £'000 £'000
Non-current assets
Investments held at fair value
through profit and loss 29,320 22,663 28,304
-------------------------------------------
Current assets
Debtors 1,238 2,075 1,383
Derivative financial instruments 12 85 47
Money market securities and other
deposits 1,804 3,622 1,998
Cash 4,662 211 670
-------------------------------------------
 7,716 5,993 4,098
Creditors
Amounts falling due within one year (31) (198) (110)
-------------------------------------------
Net current assets 7,685 5,795 3,988
-------------------------------------------
Net assets 37,005 28,458 32,292
-------------------------------------------
Capital and reserves
Called-up share capital 349 539 537
Share premium account 27,336 17,715 17,677
Special distributable reserve 10,529 18,314 18,038
Capital redemption reserve 344 27 29
Revenue reserve (102) (224) (80)
Capital reserve  856 (1,786) (1,605)
Revaluation reserve (2,307) (6,127) (2,304)
-------------------------------------------
Equity shareholders' funds 37,005 28,458 32,292
-------------------------------------------
Net asset value per
share:
Ordinary Share 108.8p 85.3 p* 100.1 p*
------------------------------------------------------------
Planned Exit Share 93.7p 95 0 p 95.5 p
------------------------------------------------------------
* Rebased due to Ordinary Shares reconstruction on 1 March 2011 using conversion
ratio of 0.554417986.
Unaudited Reconciliation of Movements in Shareholders' Funds
for the six months ended 30 June 2011
Called-
up Share Special Capital
share premium distributable redemption Revenue Capital Revaluation
Company capital account reserve reserve reserve reserve reserve Total
 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
As at 1 537 17,677 18,038 29 (80) (1,605) (2,304) 32,292
January 2011
Share (241) - - 241 - - - -
reconstruction
Share issues 127 9,785 - - - - - 9,912
in the period
Expenses in
relation to - (126) - - - - - (126)
share issues
Repurchase of (74) - (7,283) 74 - - - (7,283)
shares
Net realised
gain on - - - - - 4,145 - 4,145
disposal of
investment
Investment - - - - - - 32 32
holding gain
Unrealised
loss on the       (35) (35)
value of
derivatives
Dividends      (1,688)  (1,688)
Management
fees charged   (226)     (226)
to capital
Tax credited - - - - - 4 - 4
to capital
Revenue loss - - - - (22) - - (22)
for the period
-----------------------------------------------------------------------------
As at 30 June 349 27,336 10,529 344 (102) 856 (2,307) 37,005
2011
-----------------------------------------------------------------------------
Unaudited Cash Flow Statement
for the six months ended 30 June 2011
 Six months ended Six months ended Year ended
 30 June 2011 30 June 2010 31 December
(unaudited) (unaudited) 2010 (audited)
 £'000 £'000 £'000
Cash flow from operating
activities
Investment income received 261 102 374
Deposit and similar 7 2 12
interest received
Investment management fees (293) (98) (480)
paid
Secretarial fees paid (41) (59) (118)
Other cash payments (540) (152) (334)
------------------------------------------------------
Net cash outflow from
operating activities and (606) (205) (546)
returns on investment
Taxation - Â - -
------------------------------------------------------
Returns on investment and
servicing of finance
Purchase of investments (837) (2,035) (4,350)
Net proceeds on sale of 7,875 20 775
investments
Net proceeds from deferred - Â 19 20
consideration
------------------------------------------------------
Net capital
inflow/(outflow) from 7,038 (1,996) (3,555)
financial investment
Equity dividends (1,629) 11 Â 11
(paid)/received
------------------------------------------------------
Management of liquid
resources
Subscription to money - (3,201) (3,200)
markets
Redemption in money market 194 149 1,772
------------------------------------------------------
 194 (3,052) (1,428)
Financing
Proceeds of fund raising 235 5,633 6,520
Expenses of fund raising 8 - Â -
Dividends reinvested - Â (273) Â (339)
Repurchase of own shares (1,248) (140) (226)
------------------------------------------------------
 (1,005) 5,220 5,955
------------------------------------------------------
Increase/(decrease) in 3,992 (22) 437
cash
------------------------------------------------------
Notes to the Unaudited Half-Yearly Results
1. The unaudited half-yearly results have been prepared on the basis of the
accounting policies set out in the statutory accounts of the Company for the
year ended 31 December 2011. 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. These are not statutory accounts in accordance with S434 of the Companies
Act 2006 and the financial information for the six months ended 30 June
2011 and 30 June 2010 have been neither audited nor reviewed. Statutory
accounts in respect of the period to 31 December 2010 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 2010
have been reported on by the Company's auditors or delivered to the
Registrar of Companies.
3. Copies of the interim 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.
4. Acquisition of Keydata Income VCT 1 plc and Keydata Income VCT 2 plc
('Keydata')
Following shareholder approval, the assets of Keydata (approximately £3.6
million) were acquired by the Company on 28 February 2011 A total of
6,463,504 Ordinary Shares (at an NAV of 55.44p per Ordinary Share - prior to
the Ordinary Share reconstruction) in Foresight VCT plc were issued as
consideration to the shareholders of Keydata. Following the completion of
the merger there were 54,004,889 Ordinary Shares in issue. Dependent upon
the commercial success of its gasification project in Derby, for which the
Keydata assets were acquired, additional consideration may be payable to
Keydata shareholders up to a maximum amount of £2.8 million on or shortly
after 30 September 2013.
5. 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.
 Ordinary Shares Fund Planned Exit Shares Fund
 Number of
Net Assets Number of shares Net Assets shares
 £'000 in issue £'000 in issue
30 June 2011 31,218 28,694,271 5,787 6,179,833
30 June 2010 22,585 47,741,385* 5,873 6,179,833
30 December 2010 26,390 47,541,385* 5,902 6,179,833
-----------------------------------------------------------
*The net asset values per share on page 12 have been rebased due to the Ordinary
Shares reconstruction.
6. Return per share
The weighted average number of shares for the Ordinary Shares and Planned Exit
Shares funds used to calculate the respective returns are shown in the table
below.
 Ordinary Shares Fund Planned Exit Shares Fund
 (shares) (shares)
Six months ended 30 June 2011 35,674,443 6,179,833
Six months ended 30 June 2010 26,611,808* 4,213,657
Year ended 31 December 2010 26,528,417* 5,407,639
----------------------------
*The weighted average number of shares has been adjusted to take account of the
Ordinary Shares reconstruction.
Earnings for the period should not be taken as a guide to the results for the
full year.
7. Income
 Six months ended Six months ended Year ended
 30 June 2011 30 June 2010 31 December 2010
(Unaudited) (unaudited) (audited)
 £'000 £'000 £'000
Loan stock interest 285 300 Â 652
Overseas based Open
Ended Investment 11 Â 3 13
Companies ("OEICs")
Bank deposits - - -
Other - - -
-------------------------------------------------------------
 296 303 665
-------------------------------------------------------------
8. Investments held at fair value through profit or loss
Company Quoted Unquoted Total
 £'000 £'000 £'000
Book cost as at 1 January 2011 9,095 21,478 30,573
Investment holding (losses)/gains (4,592) 2,323 (2,269)
--------------------------
Valuation at 1 January 2011 4,503 23,801 28,304
Movements in the period:
Cost of investments acquired - 12,453 12,453
Investment holding losses of investments acquired - (8,493) (8,493)
Purchases at costs 371 466 837
Disposal proceeds (4,594) (3,281) (7,875)
Realised gains 2,640 1,422 4,062
Investment holding (losses)/gains (1,602) 1,634 32
--------------------------
Valuation at 30 June 2011 1,318 28,002 29,320
--------------------------
Book cost at 30 June 2011 7,512 32,538 40,050
Investment holding (losses)/gains (6,194) (4,536) (10,730)
--------------------------
Valuation at 30 June 2011 1,318 28,002 29,320
--------------------------
Ordinary Shares Quoted Unquoted Total
 £'000 £'000 £'000
Book cost as at 1 January 2011 9,095 17,697 26,792
Investment holding (losses)/gains (4,592) 2,358 (2,234)
--------------------------
Valuation at 1 January 2011 4,503 20,055 24,558
Movements in the period:
Cost of investments acquired - 12,453 12,453
Investment holding losses of investments acquired - (8,493) (8,493)
Purchases at costs 371 466 837
Disposal proceeds (4,594) (2,281) (6,875)
Realised gains 2,640 1,422 4,062
Investment holding (losses)/gains (1,602) 1,579 (23)
--------------------------
Valuation at 30 June 2011 1,318 25,201 26,519
--------------------------
Book cost at 30 June 2011 7,512 29,757 37,269
Investment holding (losses)/gains (6,194) (4,556) (10,750)
--------------------------
Valuation at 30 June 2011 1,318 25,201 26,519
--------------------------
Planned Exit Shares Quoted Unquoted Total
 £'000 £'000 £'000
Book cost as at 1 January 2011 - 3,781 3,781
Investment holding gains - (35) (35)
--------------------------
Valuation at 1 January 2011 - 3,746 3,746
Movements in the period:
Disposal proceeds - (1,000) (1,000)
Investment holding gains - 55 55
--------------------------
Valuation at 30 June 2011 - 2,801 2,801
--------------------------
Book cost at 30 June 2011 - 2,781 2,781
Investment holding losses - 20 20
--------------------------
Valuation at 30 June 2011 - 2,801 2,801
--------------------------
9. Related Parties
Foresight Group, as Investment Manager of the Company, is considered to be a
related party by virtue of its management contract with the Company. During the
period, services of a total value of £301,000 (30 June 2010: £199,000; 31
December 2010: £452,000) were purchased by the company from Foresight Group. At
30 June 2011, the amount due from Foresight Group was £5,000.
Foresight Fund Managers Limited, as Secretary of the Company and as a subsidiary
of Foresight Group, is also considered to be a related party of the Company.
During the period, services of a total value of £50,000 excluding VAT (30 June
2010: £50,000; 31 December 2010: £100,000) were purchased by the Company from
Foresight Fund Managers Limited. At 30 June 2011, the amount due to Foresight
Fund Managers Limited included within creditors was £3,000 (excluding VAT)
 No Director has, or during the period had, a contract of service with the
Company. No Director was party to, or had an interest in, any contract or
arrangement (with exception of Directors' fees) with the Company at any time
during the period under review or as at the date of this report.
s that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Foresight VCT PLC via Thomson Reuters ONE
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