Interim Results
Foresight Technology VCT PLC
28 August 2003
Foresight Technology VCT plc
Interim Results for the six months ended 30 June 2003
Chairman's Statement
Introduction
I have pleasure in enclosing the Interim Report for Foresight Technology VCT plc
for the six month period from 1 January 2003 to 30 June 2003. The results are
set out in the following pages.
Although market conditions have continued to be difficult during this period
there are signs of improvement. Activity and share prices have increased in the
AIM market in the first half of this year and, although it might take some time
for similar activity to be seen in the unquoted market our investment advisers,
VCF Partners, and the Board are encouraged by the progress being made by a
number of the companies in both portfolios.
Interim Results
The total return (after tax) attributable to Ordinary Shareholders was a gain of
1.50p per Ordinary Share (30 June 2002: loss of 8.10p). The net asset value as
at 30 June 2003 was 98.59p per Ordinary Share (30 June 2002: 93.15p).
The total return (after tax) attributable to 'C' Shareholders was a loss of
2.23p per 'C' Share (30 June 2002: loss of 4.14p) and the net asset value, after
the interim dividend referred to below, as at 30 June 2003 was 69.60p per 'C'
Share (30 June 2002: 74.71p).
Special Ordinary Share Dividend and Interim 'C' Share Dividend
On 8 July 2003 approximately 40% of the Company's holding in Telecom plus Plc
was sold, realising a profit of £900,000 above the average cost of those shares.
As a result of this sale I am pleased to report that the Company will pay a
capital dividend to Ordinary Shareholders of 8p per Ordinary Share from the
proceeds of the partial disposal of this investment. Payment of this dividend
will be made to Ordinary Shareholders on the register on 5 September 2003 and
should be received on 22 September 2003. No dividend is to be paid on the
Ordinary Shares based on the results for period to 30 June 2003.
As investments are realised the Board hopes to be in a position to pursue a
more regular dividend policy in respect of the Ordinary Shares fund.
The Company will also pay a 0.75p dividend (net) per 'C' Share, based on the
results for the six month period to 30 June 2003, to 'C' Shareholders on the
Register on 5 September 2003. This payment should also be received on 22
September 2003.
Ordinary Shares fund
The Board is particularly pleased with the progress being made by Telecom plus
Plc and Advanced Composites Group Limited. The latter is currently considering
opportunities including a flotation at a valuation of up to £50 million (source:
Financial Times - 16 August 2003). It is also pleasing to see an increase in the
share price of YooMedia Plc in which a further investment was made by Foresight
in May 2003.
'C' Shares fund
The investments in the 'C' Shares fund have been held for a much shorter time
than those in the Ordinary Shares fund and there have, as yet, been no
realisations from this fund. The Board is, however, pleased with the progress of
a number of the investments, particularly Sarantel Limited, Oxonica Limited and
themutual.net plc. With regard to themutual.net plc the share price has
increased significantly following the results for the year to 30 April 2003
having been announced in July 2003.
An investment was made within the period in Broadreach Networks Limited, a
public access Wi-Fi hotspot company. Other investors in the company include
Virgin and British Telecom who are providing valuable strategic input to the
company. In addition, further investments were also made in Sarantel Limited,
Monactive Limited and ANT Limited. A number of new investments for the 'C' Share
fund are also currently under review.
New Offer of 'Ordinary' Shares and 'C' Shares
I am also pleased to report that the Board has decided to raise additional
capital for both funds by way of a new issue of 'Ordinary' Shares and 'C' Shares
representing, respectively, under 10% of the current issued share capital in
each fund. On full subscription, and based on the net asset value of each fund
as at 30 June 2003, approximately £3.5 million (net of issue costs) will be
raised by the issue. The Board believes that raising additional capital should
enable Foresight to:
take advantage of the encouraging investment opportunities currently under
review (which should provide shareholders with a greater spread of risk from a
larger and more diverse portfolio of technology investments in each fund);
spread administrative costs across a larger capital base; and
make second round 'follow on' investments in existing portfolio companies when
attractive opportunities arise.
Investors will be invited to subscribe for packages of shares each comprising
one new Ordinary Share and three new 'C' Shares. Packages of shares will be
allotted at an offer price based on the net asset value of the shares in each
fund as at the end of the latest month prior to an allotment. Existing
Shareholders will be given priority in the offer. Full details of the offer,
including a notice of an Extraordinary General Meeting, are expected to be
posted in September 2003.
Supplemental Investment Advisers Agreement and New Carried Interest Agreement
In connection with the arrangements for the enlarged funds, the Company proposes
to enter into the following new agreements:
a new agreement with VCF Partners, which is supplemental to the existing
Investment Advisers Agreement dated 14 October 1999 ('the Supplemental
Investment Advisers Agreement');
and a new conditional warrant rights agreement ('the New Carried Interest
Agreement') providing for a carried interest incentive to VCF Partners, and
Matrix Securities Limited in respect of the new funds to be raised under the
offer for the 'C' Shares fund and to VCF Partners, Matrix Securities Limited and
Martineau Johnson in respect of the new funds to be raised under the offer for
the Ordinary Shares fund.
Pursuant to the Supplemental Investment Advisers Agreement VCF Partners have
been appointed to advise the Board in respect of the new capital raised for the
Ordinary Shares fund, all of which will all be invested in venture capital
investments, and also in respect of the new capital raised for the 'C' Shares
fund, 80% of which will be invested in venture capital investments with the
remaining 20% being invested in fixed interest securities. The new monies raised
under the offer will be added to the existing net assets of each fund for the
purposes of calculating a continuing annual management fee to VCF Partners for
the duration of their appointment of 2 per cent of the net assets in each fund.
This is the level of fee the Board has agreed to maintain since September 2002
when the fee was due to reduce.
Pursuant to the New Carried Interest Agreement, carried interest arrangements
similar to those previously entered into are to be granted in respect of the
investment of the monies raised under the new offer.
VCF Partners and Matrix Securities will be entitled to be issued with
performance warrants granting the right to subscribe at par for a number of 'C'
Shares (the 'C' Number) representing 15% of the sum of the number of 'C' Shares
allotted pursuant to the offer plus the 'C' Number if:
• before 5 April 2007 cumulative dividends on each 'C' Share now in
issue and issued pursuant to the offer are not less than 80 pence on 5 April
2007 ('the 'C' Hurdle Date'); or
• on the 'C' Hurdle Date cumulative dividends together with net
realisations (after deducting losses) not yet distributed amount to at least 80
pence per share.
If neither of these conditions has been achieved by the 'C' Hurdle Date then VCF
Partners and Matrix Securities will be entitled to be issued with performance
warrants granting the right to subscribe a reduced number of 'C' Shares ('the
Reduced 'C' Number) representing 12.5% of the sum of the number of 'C' Shares
allotted pursuant to the offer plus the Reduced 'C' Number provided cumulative
dividends together with net realisations (after deducting losses) not yet
distributed amount to not less than £1.25 on each 'C' Share now in issue and
issued pursuant to the offer.
A similar carried interest arrangement is granted to VCF Partners, Matrix
Securities Limited and Martineau Johnson in respect of the new monies raised for
the Ordinary Shares fund provided however that, as the original Ordinary Shares
fund performance warrant rights have already been exercised by the Ordinary
Shares fund carried interest holders when cumulative dividends exceeding 80p per
share were paid to Ordinary Shareholders in 2000, no entitlement to additional
carried interest will arise in respect of the new monies until a new hurdle
across the whole of the Ordinary Shares fund has been achieved. This new hurdle
requires cumulative dividends of 80 pence per share (or as the case may be of
£1.25 per share) to be paid on each Ordinary Share now in issue and issued
pursuant to the offer disregarding the cumulative dividends paid by the Ordinary
Shares fund to date. I would emphasise that no additional carried interest is
being granted in respect of Ordinary Shares fund monies subscribed for Ordinary
Shares currently in issue but only in respect of the new monies raised for the
Ordinary Shares fund under this new offer. The relevant hurdle date for the
achievement of the new 80 pence hurdle will be the seventh anniversary of the
close of the offer.
The Investments
Set out on the following pages are brief details of the investments within the
Ordinary Shares fund and the 'C' Shares fund. During the six months to 30 June
2003, the Company made one follow-on investment from the Ordinary Shares fund at
a total cost of £375,000 and one new investment and five follow-on investments
from the 'C' Shares fund at a total cost of £1.4 million.
I would like to take this opportunity to thank all shareholders and warrant
holders for their continuing support.
Peter Dicks
Chairman
28 August 2003
ADVISERS' AND MANAGERS' REPORT
THE VENTURE CAPITAL FUNDS
VCF Partners advise the Company in respect of investments made within the
Ordinary Shares fund and the 'C' Shares fund. During the 6 months to 30 June
2003 one follow on investment was made from the Ordinary Shares fund at a cost
of £375,000 and one new investment and four further investments were made from
the 'C' Shares fund at a cost of £1.4 million. The full investment portfolio of
both funds as at 30 June 2003 is detailed below.
ORDINARY SHARES FUND
Sapphire International Limited
Owns the established 'DataEase' family of computer database software products
and has a worldwide base of several hundred thousand users. The Company now
combines a consulting/professional services organisation with the sale of
DataEase software products. As a result of a significant order from the North
American market, the company is trading profitably. Foresight holds 1,803,396
shares in the company.
Results from the latest audited accounts for the year ended 31 December 2001:
profit before tax £113,000, retained loss £3,412,000, net liabilities £799,000.
Amount % of
Invested % Equity/ Ordinary
Dates of (including Voting Loan Investor Shares
Investment Loan Stock) Valuation Rights Stock Director Portfolio
Jul 98, Jun 00, £400,000 Bernard
Oct 00 & Jun 01 £1,150,000 Cost 18.6 10% Fairman 9.32
(Unsecured)
Actimax plc
Supplies digital telecommunications systems to small and medium sized customers.
The company installs complex computer and telephone combined systems using
components from suppliers such as Ascom, Lucent and Intertel. The company won
the Integrated Dealer of the Year Award 2001 and is trading profitably.
The Ordinary Shares fund holds 300,868 shares and 34,615 warrants in the
company.
Results from the latest audited accounts for the period ended 31 December 2002:
profit before tax £35,191, retained loss £1,269,941, net liabilities £488,941.
Amount % of
Invested % Equity/ Ordinary
Dates of (including Voting Loan Investor Shares
Investment Loan Stock) Valuation Rights Stock Director Portfolio
Nov 98, Mar 00 £120,000 Peter
& Jun 03 £600,001* Cost 37.9* (Unsecured) English 4.86
* the Company also holds warrants
DSM Geo-Data Limited ('DSM')/Survey & Development Services Limited ('SDS')
DSM was formed to acquire certain parts of the business of SDS from the
Receivers of that company in August 2002. DSM is a specialist geo-spatial data
software products and services business, serving the growing market for digital
mapping. Foresight was issued 235,208 preference shares in DSM in respect of
their original holding of loan stock in Survey & Development Services Limited.
DSM has been valued on the basis of expected future cash flows to Foresight.
SDS was put into liquidation in 2002 and therefore the Board believes it prudent
to write down the investment by 100%. Foresight continues to hold 170,408 shares
in SDS.
DSM has not produced audited accounts since incorporation on 12 December 2001.
% of
% Equity/ Ordinary
Date of Amount Voting Shares
Investment Invested Valuation Rights Portfolio
Aug 02 £1 £132,911 0.0 1.08
Entraline Limited
Was formed following the Administration of Creature Laboratories Limited in June
2002 and Foresight was issued with 11,765 shares in the new company. Entraline
had a range of entertainment software products under development. The technology
also related to new platforms such as toys, mobile phones and digital
television.
The company was put into liquidation in April 2003 and therefore the Board
believes it prudent to write down the investment by 100%.
The company has not produced audited accounts since incorporation on 2 May 2002.
% of
% Equity/ Ordinary
Date of Amount Voting Shares
Investment Invested Valuation Rights Portfolio
Jun 02 £1,500,000 Nil 0.5 -
Advanced Composites Group Limited
Is a long established manufacturer of high technology carbon fibre composite
material, with factories in Heanor north of Derby, and Tulsa, USA. Successful
markets include F1 racing cars, sports equipment and aerospace applications.
After three years of profits, the company has been valued on an average 12 month
historic PE basis, using an index of comparable companies after applying a 25%
discount. This valuation is in accordance with BVCA guidelines and will change
at the next valuation date in line with revised BVCA guidelines. Foresight holds
3,163,971 shares in the company. The company is currently considering
opportunities including a flotation at a valuation of up to £50 million (source:
The Financial Times: 16 August 2003). Results from the latest consolidated
audited accounts for the year ended 31 August 2002: profit before tax
£2,272,000, retained profit £3,695,000, net assets £8,030,000.
% of
% Equity/ Ordinary
Dates of Amount Voting Investor Shares
Investment Invested Valuation Rights Director Portfolio
Mar 99, Oct 99 Peter
& Jul 00 £1,622,978 £6,565,876 27.5 English 53.21
YooMedia plc (AIM listed)
Operates a portal site which provides an increasing number of facilities
including online games, e-mail, personal home pages and chat available from a
number of platforms. The company was floated on the AIM market in March 2000 at
a valuation of £149.7 million. At that time Foresight sold 6,623,030 shares to
raise £12.4 million net of expenses. The company has signed a contract with Sky
to provide BSkyB's wholly owned channel with a comprehensive enhanced TV chat
solution and also provides interactive content via Telewest.
Foresight made a further investment of £375,000 by way of convertible loan stock
in May 2003 and holds 14,260,000 shares in the company.
Results from the latest audited accounts for the year ended 31 December 2002:
loss before tax £7,037,986, retained loss £13,397,592, net assets £1,766,717.
Amount % of
Invested Valuation % Equity/ Ordinary
Dates of (including (Mid- Voting Loan Investor Shares
Investment Loan Stock) market) Rights Stock Director Portfolio
Mar 99, Nov 02, £375,000 Bernard
& May 03 £717,302 £1,016,700 18.58 (Convertible Fairman 8.24
and Secured)
Telecom plus plc (listed on the London Stock Exchange)
Offers low cost telephone and energy services to private subscribers. The
company's penetration of its telephone subscriber base with energy services is
at 10% and increasing. The share price increased substantially during the
quarter ended 30 June 2003 and Foresight sold 500,000 shares at a price of £2.18
(ex-div) per share compared to an average subscription cost of 38p per share.
Foresight held 1,251,000 shares in the company prior to the sale.
Results from the latest audited accounts for the year ended 31 March 2003:
profit before tax £5,588,000, retained profit £1,760,000, net assets
£10,618,100.
% of
Valuation % Equity/ Ordinary
Dates of Amount (Mid- Voting Shares
Investment Invested market) Rights Portfolio
Jun 99
& Dec 02 £476,519 £2,639,610 2.1 21.39
Clarity Commerce Solutions plc (AIM listed)
Is part of a group of companies that provide EPOS solutions, CRM products and
services to the UK hospitality and leisure markets including the pub market
place and the restaurant and nightclub sector. Foresight holds 400,000 shares in
the company.
The company completed a further round of funding of £750,000 in July 2003.
Results from the latest audited accounts for the year ended 31 March 2003:
profit before tax £315,000, retained loss £1,144,000, net assets £7,749,000.
% of
Valuation % Equity/ Ordinary
Date of Amount (Mid- Voting Shares
Investment Invested market) Rights Portfolio
Jul 00 £500,000 £234,000 4.2 1.90
'C' SHARES FUND
Travelstore.com plc
Sold its business last year to On-line Travel Limited, a company which provides
on-line services for travel arrangements and had synergies with Travelstore's
business. Travelstore currently holds 7.2% of the shares in On-line Travel
Limited, for the benefit of its shareholders, which were subject to a lock-up
that expired in June 2003. Foresight holds 4,265,000 shares in the company.
Results from the latest audited accounts for the year ended 31 March 2002: loss
before tax £3,566,381, retained loss £29,254,676, net assets £2,420,845.
% of
% Equity/ 'C'
Dates of Amount Voting Shares
Investment Invested Valuation Rights Portfolio
Dec 99, Nov 02
& Dec 02 £1,339,000 £59,220 3.5 0.42
KeepAhead Limited
Despatches lifestyle email services (e.g. current affairs, astrology, sport)
which approximately 200,000 registered users receive free of charge. Revenue is
generated from targeted e-mail advertising. The Board believes it prudent to
write down this investment to reflect the current values of companies relying on
the on-line advertising market. Foresight holds 25,248 shares and 7,631 warrants
in the company.
Results from the latest audited accounts for the year ended 31 March 2002: loss
before tax £186,505, retained loss £896,320, net assets £12,251.
% of
% Equity/ 'C'
Date of Amount Voting Shares
Investment Invested Valuation Rights Portfolio
Apr 00 £1,000,000 £50,000 15.0 0.35
UK Directory (Holdings) Limited (OFEX Listed)
Operated an internet based directory of business websites, available on-line and
offline via the publication of a nationally distributed magazine available from
WH Smith. UK Directory (Holdings) Limited's shares were suspended from trading
on OFEX in November 2001 and liquidators were appointed in May 2003. Foresight
holds 2 million shares in the company.
Results from the latest audited accounts for the year ended 31 August 2002: loss
before tax £287,306, retained loss £2,565,537, net assets £201,414.
% of
% Equity/ 'C'
Date of Amount Voting Shares
Investment Invested Valuation Rights Portfolio
Apr 00 £1,000,000 £13,200 10.0 0.09
themutual.net plc (AIM Listed)
Operates a financial information website and sells targeted advertising by email
aimed at their subscriber base. themutual.net's shares were listed on the AIM
market in June 2000. The company's share price has increased by 60% since the
audited accounts for the period ended 30 April 2003 were announced in July 2003.
Foresight holds 342,730,249 shares in the company.
Results from the latest audited accounts for the year ended 30 April 2003:
profit before tax £557,950, retained loss £1,407,935, net assets £1,091,772.
% of
Valuation % Equity/ 'C'
Date of Amount (Mid- Voting Shares
Investment Invested market) Rights Portfolio
Jun 00 £500,000 £411,276 9.3 2.89
FfastFill plc (AIM Listed)
Is a software company that develops sophisticated trading solutions for futures
and options traders, brokers and risk managers. The management team was
strengthened last year and the company recently secured a £1.2m funding package
to help execute its applications services strategy. Foresight holds 914,070
shares in the company.
Results from the latest audited accounts for the year ended 31 March 2003: loss
before tax £4,926,000 retained loss £18,202,000, net assets £189,000.
% of
Valuation % Equity/ 'C'
Date of Amount (Mid- Voting Shares
Investment Invested market) Rights Portfolio
Jul 00 £500,000 £45,704 2.0 0.32
Sarantel Limited
Owns proprietary antenna technology with applications in mobile phone and other
wireless devices. The company's technology delivers major performance benefits
over traditional antennae. Sales of Sarantel's first product, the GPS antenna,
are increasing and the company has launched proto types for Wi-Fi and 3G
applications. Foresight holds 6,999,179 shares in the company.
Results from the latest audited accounts for the year ended 30 September 2002:
loss before tax £2,821,417, retained loss £4,179,590, net assets £3,695,798.
% of
% Equity/ 'C'
Dates of Amount Voting Investor Shares
Investment Invested Valuation Rights Director Portfolio
Sep 00, Apr 01,
Jun 01, Mar 02, £2,213,404 Cost 34.6 Matt 15.57
Aug 02, Sep 02, Taylor
Nov 02 & Feb 03
Mondas plc (AIM Listed)
Has developed e-Business technologies to allow securities and investment houses
to deploy new front and back office applications to facilitate straight through
processing. Customers benefit from improved content management, document
management, business process software and service solutions. Foresight holds
2,289,855 shares in the company.
Results from the latest audited accounts for the year ended 30 April 2003: loss
before tax £2,224,645, retained loss £7,880,966, net liabilities £421,349.
Amount % of
Invested Valuation % Equity/ 'C'
Dates of (including (Mid- Voting Loan Investor Shares
Investment Loan Stock) market) Rights Stock Director Portfolio
Oct 00& £900,000 Bernard
Dec 02 £1,068,116 £976,551 10.9 (Unsecured) Fairman 6.87
Callserve Communications plc
Is a voice over IP telecoms network and service provider which enables telephone
calls to be made from a PC via the internet to any phone worldwide. The company
has grown substantially over the last 18 months. Foresight holds 222,222 shares
in the company.
The company completed a further round of fundraising from existing investors in
February and June 2003. The Board believes it is prudent to write down this
investment by 50% to reflect the fact that other financial instruments rank
ahead of Foresight.
Results from the latest audited accounts for the year ended 31 March 2002: loss
before tax £4,885,152, retained loss £12,017,562, net liabilities £363,814.
% of
% Equity/ 'C'
Date of Amount Voting Shares
Investment Invested Valuation Rights Portfolio
Oct 00 £500,000 £224,999 1.27 1.58
iCore Limited
Is an IT management services company, with services that range from strategic IT
reviews, infrastructure design and management, outsourcing procurement, through
to business process management, interim project management, and establishing
project offices. The company is now trading profitably. Foresight holds 201,176
shares in the company.
Results from the latest audited accounts for the year ended 30 June 2002: profit
before tax £542,252, retained loss £197,460, net assets £564,205.
% of
% Equity/ 'C'
Date of Amount Voting Investor Shares
Investment Invested Valuation Rights Director Portfolio
Peter
Dec 00 £750,000 Cost 16.7 English 5.28
Heritage Image Partnership Limited
Is building an online library of high-resolution images from exclusive access to
the content of heritage institutions, principally museums and libraries, and
sells directly to business customers. The investment has been written down
because the business is trading below expectations. Foresight holds 68,898
shares in the company.
Other opportunities are currently being considered to generate value from this
investment including an offer from Sarantel Limited to the shareholders of the
company to purchase all the shares in the company.
Results from the latest audited accounts for the year ended 31 December 2001:
loss before tax £1,697,469, retained loss £3,074,466, net assets £1,256,977.
% of
% Equity/ 'C'
Date of Amount Voting Investor Shares
Investment Invested Valuation Rights Director Portfolio
Matt
Mar 01 £950,000 £300,000 28.0 Taylor 2.11
Monactive Limited
Is a leading provider of Software Licence Information Management solutions with
over 100 customers. The company's software monitors software usage on PC
networks, providing corporates with data for cost reduction and compliance. Its
customers are able to reduce their software licensing costs whilst demonstrating
legal compliance. Foresight holds 474,057 shares in the company following a
further investment of £267,858 by way of a loan and shares in January 2003.
Results from the latest audited accounts for the year ended 31 July 2002: loss
before tax £982,394, retained loss £2,274,425, net liabilities £893,077.
Amount % of
Invested Valuation % Equity/ 'C'
Dates of (including (Mid- Voting Loans Investor Shares
Investment Loans) Market) Rights Director Portfolio
Mar 01 £553,572 Matt
& Jan 03 £1,017,858 Cost 22.2 (Secured) Taylor 7.16
ANT Limited
Provides content rendering software to improve users' interactive communication
with digital television sets and other consumer electronic devices. ANT was set
up in 1993 and first licensed its software to Symbian (one of the leading
software platforms for PDAs) in May 1998. It now has a leading position in the
market for integrated digital TVs, TV over internet protocol and enhanced DVDs.
Foresight holds 21,800 shares in the company and warrants over a further 7% of
the equity. The Board believes it prudent to write down the investment to
£491,590 because the business is trading below expectation.
Results from the latest audited accounts for the year ended 31 December 2002:
loss before tax £2,001,995, retained loss £7,851,080, net liabilities
£5,379,661.
Amount % of
Invested Valuation % Equity/ 'C'
Dates of (including Voting Loans Investor Shares
Investment Loans) Rights Director Portfolio
Jul 01 £981,000 Matt
& Feb 03 £1,090,000 £491,590 0.3 (Secured) Taylor 3.46
Blue Curve Research.net Limited
Is a software company that sells its products and services to investment banks
and fund managers to automate the production and distribution of research
material. Analysis is a key customer retention tool for investment banks but is
also a major cost. The company's software cuts costs which is in demand,
particularly when investment bank spending is under pressure. Foresight holds
367 shares in the company.
Results from the latest audited accounts for the year ended 31 December 2002:
loss before tax £534,058, retained loss £410,658, net liabilities £410,558.
Amount % of
Invested Valuation % Equity/ 'C'
Date of (including (Mid- Voting Loans Investor Shares
Investment Loans) Market) Rights Director Portfolio
£666,667 Peter
Oct 01 £1,000,000 Cost 23.7 (Secured) English 7.03
Aquasium Technology Limited
Is engaged in the design, manufacture and marketing of bespoke electron beam
welding and vacuum furnace equipment. Its products are used in the processes of
a wide range of manufacturing industries including automotive, electronics,
medical, power generation and aerospace. Foresight holds 86,666 shares in the
company and invested further in the company by way of a £200,000 loan in April
2003.
Results from the latest audited accounts for the period from 26 June 2001 to 31
December 2002: loss before tax £1,216,413, retained loss £1,147,035, net
liabilities £574,983.
Amount % of
Invested Valuation % Equity/ 'C'
Dates of (including Voting Loans Investor Shares
Investment Loans) Rights Director Portfolio
Oct 01 £866,667 Donald
& Apr 03 £1,200,000 Cost 33.3 (Secured) Maclennan 8.44
SmartFocus Limited
Provides software to enable accurate targeting and execution of marketing
campaigns. The company is an established solution provider in this area with 300
customers forming a wide customer base spread across financial services, retail,
marketing services and other consumer-driven sectors. The company adds value to
its customers marketing campaigns by linking with multiple databases, returning
query results in seconds and presenting the results in an easily understandable
graphic way. Foresight holds 398,667 shares in the company.
Results from the latest audited accounts for the year ended 31 December 2002:
loss before tax £59,610, retained loss £75,040, net liabilities £461,823.
Amount % of
Invested Valuation % Equity/ 'C'
Date of (including Voting Loans Investor Shares
Investment Loans) Rights Director Portfolio
£666,667 Matt
Dec 01 £1,000,000 Cost 22.5 (Secured) Taylor 7.03
Alaric Systems Limited
Specialises in the development, sale, distribution and support of payment
systems software including systems for electronic payments, authorisation and
e-commerce integration. It is also involved in the use of mathematical modelling
techniques for card payments and other fraud detection. Foresight holds
2,141,075 shares in the company.
Results from the latest audited accounts for the year ended 31 March 2002:
profit before tax £2,120,960, retained loss £2,185,293, net assets £1,626,614.
Amount % of
Invested Valuation % Equity/ 'C'
Dates of (including Voting Investor Shares
Investment Loans) Rights Director Portfolio
Feb 02, Oct 02 Donald
& Dec 02 £1,254,179 Cost 16.8 Maclennan 8.82
Oxonica Limited
Provides design manipulation and engineering of properties of materials at the
nano-scale for application in fuel additives, sunscreen, bio tagging and other
products. The company has made good progress since the investment both in terms
of product development and investor interest. Foresight holds 1,395 shares in
the company and 1,769 warrants.
Results from the latest audited accounts for the year ended 31 December 2002:
loss before tax £2,119,506, retained loss £3,617,773, net assets £73,467.
Amount % of
Invested Valuation % Equity/ 'C'
Dates of (including Voting Loans Investor Shares
Investment Loans) Rights Director Portfolio
Jun 02 & £524,000 Bernard
Dec 02 £999,999 Cost 10.0 (Secured) Fairman 7.03
Wire-e Limited
Provides directory messaging services to corporates and SMEs. The service
enables users on the move to access phone numbers, send emails, text messages
and voice broadcasts to multiple contacts from a mobile phone or desktop
browser. The audited accounts information shown below is pre-investment and not
indicative of expected future performance. Foresight holds 6,666,666 shares in
the company.
Results from the latest audited accounts for the year ended 30 June 2002: loss
before tax £837,031, retained loss £1,670,086, net liabilities £520,172.
Amount % of
Invested Valuation % Equity/ 'C'
Date of (including Voting Loans Investor Shares
Investment Loans) Rights Director Portfolio
£900,000 Jamie
Sep 02 £1,000,000 Cost 28.0 (Secured) Richards 7.03
Actimax plc
Supplies digital telecommunications systems to small and medium sized customers.
The company installs complex computer and telephone combined systems using
components from suppliers such as Ascom, Lucent and Intertel. The company won
the Integrated Dealer of the Year Award 2001 and is trading profitably. The
company repaid the £1 million loan made to the company in December 2002.
Foresight also invested a further £200,000 by way of loans and shares in June
2003.
The 'C' Shares fund holds 79,440 shares in the company.
Results from the latest audited accounts for the period ended 31 December 2002:
profit before tax £35,191, retained loss £1,269,941, net liabilities £488,941.
Amount % of
Invested Valuation % Equity/ 'C'
Date of (including Voting Loans Investor Shares
Investment Loans) Rights Director Portfolio
£133,333 Peter
Jun 03 £200,000 Cost 10.0 (Secured) English 1.41
Broadreach Networks Limited
Provides both fixed line and Wi-Fi hotspot public internet access outside the
home or office. Users gain access from fixed terminals installed at coffee
shops, hotels and transport hubs or via the user's own portable device. Other
investors include Virgin, Intel and British Telecom who add considerable
strategic value.
Results for the year ended 31 October 2002: loss before tax £163,810, retained
loss £331,140, net assets £2,208.
Amount % of
Invested Valuation % Equity/ 'C'
Date of (including Voting Loans Investor Shares
Investment Loans) Rights Director Portfolio
£400,000 Jamie
Feb 03 £500,000 Cost 21.1 (Secured) Richards 3.52
VCF PARTNERS
VCF Partners LLP, trading as VCF Partners, are regulated by the Financial
Services Authority and the team includes four partners, Bernard Fairman, Peter
English, Donald Maclennan and Matt Taylor, an investment manager, Jamie
Richards, and an associate, Hazel Gross. The Investor Director detailed in the
above report refers to the team member at VCF Partners who has been appointed as
a director of the investee company for the purposes of monitoring the investment
and providing 'hands on' assistance to the company.
THE FIXED INTEREST FUNDS
The Ordinary Shares fixed interest portfolio and the 'C' Shares fixed interest
portfolio constitute the balance of the net proceeds from the issues of Ordinary
Shares and 'C' Shares. These funds have been invested in fixed interest
securities and cash deposits by Cazenove Fund Management Limited and the
Ordinary Shares and 'C' Shares portfolio percentage invested in the company
detailed in the above tables excludes funds held in cash deposits. Since the end
of the 6 month period ended 30 June 2003, the Board has decided to invest these
funds in money market funds managed by Meryll Lynch Investment Managers and the
Royal Bank of Scotland to try and provide a more attractive return.
ASSOCIATED FUNDS
VCF Partners also advise TriVest VCT plc in respect of investments. As at 30
June 2003 TriVest had invested the following amounts in companies where
Foresight is also an investor: Heritage Image Partnership Limited (£300,000),
Monactive Limited (£339,286), ANT Limited (£1,090,000), Blue Curve Research.net
Limited (£500,000), Aquasium Technology Limited (£600,000), SmartFocus Limited
(£500,000), Alaric Systems Limited (£557,413), Sarantel Limited (£1,175,405),
Oxonica Limited (900,033), Wire-e Limited (£500,000), and Broadreach Networks
Limited (£250,000).
UNAUDITED NON-STATUTORY ANALYSIS BETWEEN THE ORDINARY SHARES AND 'C' SHARES
FUNDS
Statements of Total Return for the six month period ended 30 June 2003
Ordinary Shares fund 'C' Shares fund
Revenue Capital Total Revenue Capital Total
£ £ £ £ £ £
Gains and losses on investments - 306,389 306,389 - (741,610) (741,610)
Income 83,133 - 83,133 462,312 - 462,312
Investment management fees (37,639) (112,919) (150,558) (73,862) (221,586) (295,448)
Other expenses (46,062) - (46,062) (162,808) - (162,808)
----------- ----------- ----------- ----------- ----------- -----------
Return on ordinary activities
before taxation (568) 193,470 192,902 225,642 (963,196) (737,554)
Tax on ordinary activities 206 565 771 (42,872) 42,101 (771
----------- ----------- ----------- ----------- ----------- -----------
Return attributable to equity
shareholders (362) 194,035 193,673 182,770 (921,095) (738,325)
Dividends in respect of equity
shares 801 - 801 (247,107) - (247,107)
----------- ----------- ----------- ----------- ----------- -----------
Transfer to/(from) reserves 439 194,035 194,474 (64,337) (921,095) (985,432)
----------- ----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- ----------- -----------
Return per share 0.00p 1.50p 1.50p 0.55p (2.78)p (2.23)p
----------- ----------- ----------- ----------- ----------- -----------
Balance Sheets as at 30 June 2003
Ordinary Shares fund 'C' Shares fund
Revenue Capital Total Revenue Capital Total
£ £ £ £ £ £
Fixed assets
Investments 12,339,097 14,217,231
Current assets
Debtors and prepayments 372,185 1,121,266
Cash at bank 7,787 8,189,560
----------- -----------
379,972 9,310,826
Creditors: amounts falling due
within one year (39,102) (497,489)
----------- -----------
Net current assets 340,870 8,813,337
----------- -----------
Net assets 12,679,967 23,030,568
----------- -----------
Capital and Reserves
Called up share capital 128,614 330,894
Cancelled share premium account 7,230,628 28,525,725
Revaluation reserve 5,069,587 (5,869,073)
Profit and loss account 251,138 43,022
----------- -----------
Equity Shareholders' funds 12,679,967 23,030,568
----------- -----------
Number of shares in issue: 12,861,379 33,089,386
Net asset value per share 98.59p 69.60p
Unaudited Profit and Loss Account for the six month period ended 30 June 2003
Six months to 30 June 2003
(unaudited)
Revenue Capital Total
£ £ £
(Losses)/gains on realisation of investments - (156,628) (156,628)
Income 545,445 - 545,445
Investment management fees (111,501) (334,505) (446,006)
Other expenses (208,870) - (208,870
----------- ----------- -----------
Profit/(loss) on ordinary activities before 255,074 (491,133) (266,059)
taxation
Tax on ordinary activities (42,666) 42,666 -
----------- ----------- -----------
Profit/(loss) on ordinary activities after 182,408 (448,467) (266,059)
taxation
Dividends (246,306) - (246,306)
----------- ----------- -----------
Retained profit/(loss) for the period
transferred to
/(from) reserves (63,898) (448,467) (512,365)
----------- ----------- -----------
----------- ----------- -----------
Earnings per share:
Ordinary Shares (0.87)p
'C' Shares (0.46)p
Six months to 30 June 2002
(unaudited)
Revenue Capital Total
£ £ £
(Losses)/gains on realisation of investments - (16,813) (16,813)
Income 655,756 - 655,756
Investment management fees (121,915) (365,745) (487,660)
Other expenses (214,986) - (214,986)
----------- ----------- -----------
Profit/(loss) on ordinary activities before 318,855 (382,558) (63,703)
taxation
Tax on ordinary activities (46,629) 46,629 -
----------- ----------- -----------
Profit/(loss) on ordinary activities after 272,226 (335,558) (63,703)
taxation
Dividends (332,862) - (332,862)
----------- ----------- -----------
Retained profit/(loss) for the period
transferred to/(from) reserves (60,636) (335,929) (396,565)
----------- ----------- -----------
----------- ----------- -----------
Earnings per share:
Ordinary Shares (1.49)p
'C' Shares 0.40p
Three months to 31 December 2002
(audited)
Revenue Capital Total
£ £ £
(Losses)/gains on realisation of investments - 3,800 3,800
Income 535,282 - 535,282
Investment management fees (55,641) (166,925) (222,566)
Other expenses (144,326) - (144,326)
----------- ----------- -----------
Profit/(loss) on ordinary activities before 365,315 (163,125) 202,190
taxation
Tax on ordinary activities (28,458) 28,458 -
----------- ----------- -----------
Profit/(loss) on ordinary activities after 336,857 (134,667) 202,190
taxation
Dividends (313,450) - (313,450)
----------- ----------- -----------
Retained profit/(loss) for the period
transferred to/(from) reserves 23,407 (134,667) (111,260)
----------- ----------- -----------
----------- ----------- -----------
Earnings per share:
Ordinary Shares 1.22p
'C' Shares 0.13p
Statement of Total Recognised Gains and Losses for the six month period ended 30
June 2003
Six months to 30 June 2003
(unaudited)
Revenue Capital Total
£ £ £
Profit/(loss) for the period 182,408 (448,467) (226,059)
Unrealised gains/(losses) on revaluation of
investments - (278,593) (278,593)
----------- ----------- -----------
Total recognised gains and losses during the
period 182,408 (727,060) (544,652)
----------- ----------- -----------
Return per share:
Ordinary Shares 0.00p 1.50p 1.50p
'C' Shares 0.55p (2.78)p (2.23)p
Six months to 30 June 2002
(unaudited)
Revenue Capital Total
£ £ £
Profit/(loss) for the period 272,226 (335,929) (63,703)
Unrealised gains/(losses) on revaluation of
investments - (2,393,373) (2,393,373)
----------- ----------- -----------
Total recognised gains and losses during the
period 272,226 (2,729,302) (2,457,076)
----------- ----------- -----------
Return per share:
Ordinary Shares (0.61)p (7.49)p (8.01)p
'C' Shares 1.06p (5.20)p (4.14)p
Three months to 31 December 2002
(audited)
Revenue Capital Total
£ £ £
Profit/(loss) for the period 336,857 (134,667) 202,190
Unrealised gains/(losses) on revaluation of
investments - (488,306) (488,306)
----------- ----------- -----------
Total recognised gains and losses during the
period 336,857 (662,973) (286,116)
----------- ----------- -----------
Return per share:
Ordinary Shares 1.56p (2.52)p (0.96)p
'C' Shares 0.40p (0.88)p (0.48)p
Note on Historical Cost Profits and Losses for the six month period ended 30
June 2003
Six months to Six months to Three months to
30 June 2003 30 June 2002 31 December 2002
(unaudited) (unaudited) (audited)
£ £ £
(Loss)/profit on ordinary activities before
taxation (266,059) (63,703) 202,190
Realisation of revaluation (losses)/gains of
previous years (349,050) (66,050) (45,240)
----------- ----------- -----------
Historical cost (loss)/profit on ordinary
activities before taxation (615,109) (129,753) 156,950
----------- ----------- -----------
----------- ----------- -----------
Historical cost loss for the period after
taxation and dividends (861,415) (462,615) (156,500)
----------- ----------- -----------
Unaudited Balance Sheet as at 30 June 2003
30 June 2003
(unaudited)
£ £ £
Fixed assets
Investments 26,556,328
Current assets
Debtors and prepayments 1,293,521
Cash at bank 8,197,347
----------- 9,490,868
Creditors: amounts falling due within one
year
Corporation tax 1,727
Proposed dividend 247,870
Other creditors 30,062
Accurals 57,002
-----------
(336,661)
-----------
Net current assets 9,154,207
-----------
Net assets 35,710,535
-----------
Capital and reserves
Called up share capital 459,508
Share premium account -
Cancelled share premium account 35,756,353
(distribitable)
Capital reserve - unrealised (799,486)
Revenue reserves 294,160
-----------
Equity shareholders' funds 35,710,535
-----------
Net asset value per share:
Ordinary Shares 98.59p
'C' Shares 69.60p
30 June 2002
(unaudited)
£ £ £
Fixed assets
Investments 32,941,077
Current assets
Debtors and prepayments 625,376
Cash at bank 3,807,246
----------- 4,432,622
Creditors: amounts falling due within one
year
Corporation tax 62,147
Proposed dividend -
Other creditors 44,029
Accurals 91,647
-----------
(197,823)
-----------
Net current assets 4,234,799
-----------
Net assets 37,175,876
-----------
Capital and reserves
Called up share capital 465,012
Share premium account 31,518,276
Cancelled share premium account 5,862,241
(distributable)
Capital reserve - unrealised (864,382)
Revenue reserves 194,729
-----------
Equity shareholders' funds 37,175,876
-----------
Net asset value per share:
Ordinary Shares 93.15p
'C' Shares 74.71p
31 December 2002
(audited)
£ £ £
Fixed assets
Investments 34,435,175
Current assets
Debtors and prepayments 626,721
Cash at bank 2,432,997
----------- 3,059,718
Creditors: amounts falling due within one
year
Corporation tax 1,727
Proposed dividend 562,384
Other creditors 19,545
Accurals 158,788
-----------
(742,444)
-----------
Net current assets 2,317,274
-----------
Net assets 36,752,449
-----------
Capital and reserves
Called up share capital 463,396
Share premium account -
Cancelled share premium account 36,800,938
(distributable)
Capital reserve - unrealised (869,943)
Revenue reserves 358,058
-----------
Equity shareholders' funds 36,752,449
-----------
Net asset value per share:
Ordinary Shares 96.48p
'C' Shares 72.5p
Unaudited Cashflow Statement for the period ended 30 June 2003
Six months to Six months to Three months to
30 June 2003 30 June 2002 31 December 2002
(unaudited) (unaudited) (audited)
£ £ £ £ £ £
Operating activities
Dividends received - - 189,838
Deposit and similar
interest 590,267 724,793 473,349
Other cash receipts - - 35,704
Investment management
fees paid (436,612) (481,317) (227,205)
Other cash payments (306,184) (260,374) (74,901)
----------- ----------- -----------
Net cash inflow from
operating activities (152,529) (16,898) 396,785
Taxation
Corporation tax
refunded/(paid) 9,012 66,960 (7,693)
Investing activities
Purchase of fixed
income investments - (1,995,240) -
Purchase of other
investments (1,518,753) (1,569,126) (2,095,617)
Sale of fixed income
investments 8,507,250 2,558,700 2,445,307
Sale of other
investments - 2,837 42,800
----------- ----------- -----------
Net cash outflow from
investing activities 6,988,497 (1,002,829) 392,490
Equity dividends
Equity dividends paid (561,816) (1,166,533) -
----------- ----------- -----------
Net cash outflow before
financing and liquid
resource management 6,283,164 (2,119,300) 781,582
Management of liquid
resources
Movement in money
held on escrow (267,858) 2,271,235 -
Financing
Purchase of own shares (253,956) (149,504) -
Issue of shares 3,000 29,000 -
----------- ----------- -----------
(250,956) (117,504) -
----------- ----------- -----------
Net increase in cash 5,764,350 34,431 781,582
----------- ----------- -----------
The company holds gilts and bonds primarily as investments and not as liquid
resources. Accordingly, movements in the holdings of these investments are
shown within investing activities in the Cashflow Statement rather than within
management of liquid resources.
Unaudited Notes to the Interim Report
1. All revenue and capital items in the Profit and Loss account
derive from continuing operations.
2. In accordance with the policy statement published under '
Management Administration' in the Company's prospectuses dated 1 October 1997
and 14 October 1999, the Directors have charged 75% of the investment management
expenses to the capital reserve.
3. Earnings for the six months should not be taken as a guide to the
results for the full year.
4. The Ordinary Shareholders, or the 'C' Shareholders will be
entitled to receive any dividends paid out of the net income from the net assets
attributable to the Ordinary Shares, or the 'C' Shares respectively.
5. The Company revoked its status as an investment company in March
2000 so that, under the Articles of Association, it can regard capital reserves
as profits of the Company available for distribution. The Company has not
re-applied for investment company status. The Company's financial statements are
drawn up in accordance with Schedule 4 of the Companies Act.
6. The Ordinary Shares fixed interest portfolio and the 'C' Shares
fixed interest portfolio represent the balance of the net proceeds from the
issues of Ordinary Shares and 'C' Shares. These funds have been invested in
fixed interest securities and cash deposits by Cazenove Fund Management Limited
during the period. The Board agreed to terminate the appointment of Cazenove
Fund Management Limited and, following the maturity in June 2003 of Treasury
Stock, the funds were transferred for investment in four Dublin based OEIC money
market funds managed by Merrill Lynch Investment Managers and Royal Bank of
Scotland in July 2003.
7. Total earnings after taxation for the period showed a loss of
£266,059 (30 June 2002: £634,703) comprising a loss on the Ordinary Shares fund
after taxation of £112,716 (30 June 2002: loss of £198,024) and a loss after
taxation on the 'C' Shares fund of £153,343 (30 June 2002: profit of £134,231).
The basic earnings per Ordinary Share is based on the net loss from Ordinary
Shares fund activities and on 12,593,009 Ordinary Shares (30 June 2002:
13,299,238), being the weighted average number of Ordinary Shares in issue
during the period. There is no difference between the basic earnings per share
and diluted earnings per share as the Ordinary Warrants are not considered to be
dilutive. The basic earnings per 'C' Share is based on the net loss from 'C'
Shares fund activities and on 33,106,097 'C' Shares (30 June 2002: 33,297,269),
being the weighted average number of 'C' Shares in issue during the period.
There is no difference between the basic earnings per share and diluted earnings
per share as the 'C' Warrants are not considered to be dilutive.
The revenue return per Ordinary Share is based on the net loss from Ordinary
Shares fund activities after taxation of £362 (30 June 2002: £80,531) and on
12,953,009 Ordinary Shares (30 June 2002: 13,299,238), being the weighted
average number of Ordinary Shares in issue during the period. The revenue return
per 'C' Share is based on the net revenue from 'C' Shares fund activities after
taxation of £182,770 (30 June 2002: £352,757) and on 33,106,097 'C' Shares (30
June 2002: 33,297,269), being the weighted average number of 'C' Shares in issue
during the period.
The capital return per Ordinary Share is based on the net realised capital loss
of £112,919 (30 June 2002: losses of £117,493), on net unrealised capital gains
of £306,389 (30 June 2002: losses of £878,735) on the Ordinary Shares fund and
on 12,953,009 Ordinary Shares (30 June 2002: 13,299,238). The capital return per
'C' Share is based on the net realised capital losses of £156,628 (30 June 2002:
£218,436), on net unrealised capital losses of £584,952 (30 June 2002: losses of
£1,514,638) on the 'C' Shares fund and on 33,106,097 'C' Shares (30 June 2002:
32,297,369).
8. The net asset value per share for both the Ordinary Shares and
the 'C' Shares has been calculated on the appropriate allocation of the
Company's assets and liabilities. Other than expenses specifically attributable
to one fund or the other, one quarter of costs incurred since 1 January 2003 has
been allocated to the Ordinary Shares fund.
9. The financial information for the six months ended 30 June 2003
and 30 June 2002 has not been audited or previously published and are now
published due to the change in the Company's year-end at the end of 2002. The
information for the quarter ended 31 December 2002 does not comprise full
financial statements within the meaning of section 240 of the Companies Act
1985. The financial statements for the quarter ended 31 December 2002 have been
filed with the Registrars of Companies. The auditors have reported on those
financial statements and the report was unqualified and did not contain a
statement under section 237(2) of the Companies Act 1985.
10. Dividends
Six months to Six months to Three months to
30 June 2003 30 June 2002 31 December 2002
(unaudited) (unaudited) (audited)
£ £ £
Ordinary Shares
Interim dividend proposed/paid - - -
Final dividend paid - - 65,107
Over-accrued in previous period (801) - -
----------- ----------- -----------
(801) 65,107
'C' Shares
Interim dividend proposed/paid 247,870 332,862 -
Final dividend paid - - 248,343
Over-accrued in previous period (764) - -
----------- ----------- -----------
247,107 332,862 248,343
Total dividends for period 246,306 332,862 313,450
----------- ----------- -----------
An interim dividend of 0.75p per 'C' Share will be payable on 22 September 2003
to 'C' Shareholders on the register on 5 September 2003 from the revenue
reserves of the 'C' shares fund. No dividend is payable on the Ordinary Shares
for the interim period. A special dividend will be payable on 22 September 2003
to Ordinary Shareholders on the register on 5 September from the proceeds of the
partial realisation of the investment in Telecom plus Plc after 30 June 2003.
11. Capital and reserves
Called Cancelled
up share
share premium Revaluation Revenue
capital account reserve Reserve Total
£ £ £ £ £
Total
At 1 January 2003 463,398 36,800,938 (869,943) 358,058 36,752,499
Shares issued/
(bought back) (3,888) (247,068) - - (250,956)
Write off to
cancelled share
premium account - (797,517) - 797,517 -
Realisation of
previously
unrealised
appreciation - - 349,050 (349,050) -
Net capital
reduction in the
period - - (278,593) - (278,593)
Proposed
dividends - - - (247,870) (247,870)
Retained net
revenue for the
period - - - (264,495) (264,495)
----------- ----------- ----------- ----------- -----------
At 30 June 2003 459,508 35,756,353 (799,486) 294,160 35,710,535
----------- ----------- ----------- ----------- -----------
Ordinary Shares
fund
At 1 January 2003 131,484 7,539,740 4,763,198 250,699 12,685,121
Shares issued/
(bought back) (2,870) (196,758) - - (199,628)
Write off to
Cancelled share
premium account - (112,354) - 112,354 -
Realisation of
previously
unrealised
appreciation - - - - -
Net capital
increase in the
period - - 306,389 - 306,389
Proposed
dividends - - - - -
Retained net
revenue for the
period - - - (111,915) (111,915)
----------- ----------- ----------- ----------- -----------
At 30 June 2003 128,614 7,230,628 5,069,587 251,138 12,679,967
----------- ----------- ----------- ----------- -----------
'C' Shares fund
At 1 January 2003 331,912 29,261,198 (5,633,141) 107,359 24,067,328
Shares issued/
(bought back) (1,018) (50,310) - - (51,328)
Write off to
Cancelled share
premium account - (685,163) - 685,163 -
Realisation of
previously
unrealised
appreciation - - 349,050 (349,050) -
Net capital
reduction in the
period - - (584,982) - (584,982)
Proposed
dividends - - - (247,870) (247,870)
Retained net
revenue for the
period - - - (152,580) (152,580)
----------- ----------- ----------- ----------- -----------
At 30 June 2003 330,894 28,525,725 (5,869,073) 43,022 23,030,568
----------- ----------- ----------- ----------- -----------
12. Summary of investments during the period
Unlisted
Listed Traded or traded Qualifying
investments on Aim on OFEX loans Total
£ £ £ £ £
Company
Cost/valuation at
31 December
2002 11,128,915 1,601,084 12,979,045 8,726,131 34,435,175
Purchases at cost - - 2,215,026 1,436,883 3,651,909
Disposals at cost/
2002 valuations (8,657,400) - - (2,594,763) (11,252,163)
Increase/(decrease)
in unrealised
gains/(losses) 677,345 (101,853) (368,169) (485,916) (278,593)
----------- ----------- ----------- ----------- -----------
Cost/valuation at
30 June 2003 3,148,860 1,499,231 14,825,902 7,082,335 26,556,328
----------- ----------- ----------- ----------- -----------
Book cost at
30 June 2003 964,877 2,019,525 16,121,953 8,249,459 27,355,814
Unrealised gains/
(losses) at 30
June 2003 21,183,983 (520,294) (1,296,051) (1,167,124) (799,486)
----------- ----------- ----------- ----------- -----------
3,148,860 1,499,231 14,825,902 7,082,335 26,556,328
----------- ----------- ----------- ----------- -----------
Summary of
Investments
during the period
Ordinary Shares
fund
Cost/valuation at
31 December
2002 1,957,815 1,133,600 7,928,500 637,792 11,657,707
Purchases at cost - - 1 375,000 375,001
Disposals at cost/
2002 valuations - - - - -
Increase/(decrease)
in unrealised
gains/(losses) 681,795 (257,900) (113,090) (4,416) 306,389
----------- ----------- ----------- ----------- -----------
Cost/valuation at
30 June 2003 2,639,610 875,700 7,815,411 1,008,376 12,339,097
----------- ----------- ----------- ----------- -----------
Book cost at
30 June 2003 477,277 842,357 4,354,876 1,595,000 7,269,510
Unrealised gains/
(losses) at 30
June 2003 2,162,333 33,343 3,460,535 (586,624) 5,069,587
----------- ----------- ----------- ----------- -----------
2,639,610 875,700 7,815,411 1,008,376 12,339,097
----------- ----------- ----------- ----------- -----------
Summary of
Investments
during the period
'C' Shares
fund
Cost/valuation at
31 December
2002 9,171,100 467,484 5,050,545 8,088,339 22,777,468
Purchases at cost - - 2,215,025 1,061,883 3,276,908
Disposals at cost/
2002 valuations (8,657,400) - (2,594,763) (11,252,163)
Increase/(decrease)
in unrealised
gains/(losses) (4,450) 156,047 (255,079) (481,500) (584,982)
----------- ----------- ----------- ----------- -----------
Cost/valuation at
30 June 2003 509,250 623,531 7,010,491 6,073,959 14,217,231
----------- ----------- ----------- ----------- -----------
Book cost at
30 June 2003 487,600 1,177,168 11,767,077 6,654,459 20,086,304
Unrealised gains/
(losses) at 30
June 2003 21,650 (553,637) (4,756,586) (580,500) (5,869,073)
----------- ----------- ----------- ----------- -----------
509,250 623,531 7,010,491 6,073,959 14,217,231
----------- ----------- ----------- ----------- -----------
13. Reconciliation of movements in equity shareholders' funds
Six months to Six months to Three months to
30 June 2003 30 June 2002 31 December 2002
(unaudited) (unaudited) (audited)
£ £ £
(Loss)/profit for the period (266,059) (63,703) 202,190
Dividends on equity shares (246,306) (332,862) (313,450)
----------- ----------- -----------
(512,365) (396,565) (111,260)
Other recognised gains and losses (278,593) (2,393,373) (488,306)
New share capital subscribed (net) (250,956) (92,110) -
----------- ----------- -----------
Net (reduction in)/addition to
shareholders' funds (1,041,914) (2,882,048) (599,566)
Total net assets attributable to
equity shareholders at beginning of the
period 36,752,449 40,057,924 37,352,015
----------- ----------- -----------
Total net assets attributable to
equity shareholders at end of period 35,710,535 37,175,876 36,752,449
----------- ----------- -----------
14. A copy of this interim results will be sent to all shareholders in
September and copies can be obtained from the Company's registered address free of charge
This information is provided by RNS
The company news service from the London Stock Exchange
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