Interim Results
Foresight Technology VCT PLC
23 September 2005
FORESIGHT TECHNOLOGY VCT PLC
PRELIMINARY ANNOUNCEMENT OF RESULTS
CHAIRMAN'S STATEMENT
Introduction
I have pleasure in announcing the Interim Results for the period ended 30th June
2005. The results are set out below.
Overall, the Ordinary Shares fund witnessed a fall in net asset value from 76.6p
per Ordinary Share to 59.45p per Ordinary Share (22.4%) during the six months
under review, predominantly as a result of a fall in the value of YooMedia plc,
which is described in further detail below. The 'C' Shares fund's net asset
value remained stable during the period at 90.37p per 'C' Share on 30 June 2005
compared to 93.91p (restated) per 'C' Share on 31 December 2004. This includes
the reduction in net asset value of 2.1p per 'C' Share as a result of the move
to value quoted stocks at bid price as opposed to mid-market value in accordance
with new accounting standards (FRS 25 and FRS 26). On 20 July 2005 Oxonica plc
listed on the Aim Market, which resulted in a significant uplift to the 'C'
shares portfolio.
As I have previously indicated, a number of the portfolio companies are
benefiting from improved market conditions. We have seen significant increases
in revenues for companies in markets as diverse as anti-blast materials and
environmentally beneficial fuel additives, interactive TV and personal
navigation, IT-systems migration and electron-beam welding.
Partly as a result of these trends, corporate activity has been on the increase
with a revival of enthusiasm for flotations and company mergers and
acquisitions. During the period under review and following the period end a
number of our unquoted holdings have either been the subject of initial public
offerings (IPOs) to the AIM Market or have been the subject of preliminary
approaches from potential purchasers or merger partners.
The five new investments in this period show the characteristic diversity of
Foresight investments across a range of growth markets where technology is
important. It also represents the spread in stage of investment from early stage
to well-established businesses. Typical of the early stage companies is
Nanotecture Group plc, which is just beginning to exploit far-reaching
intellectual property in the nano-scale engineering of materials. Nanotecture's
technology could enable better battery performance for mobile phones and
efficient filtering of viruses from water. At the opposite end of the scale is
Covion Holdings Limited, a successful facilities management business with more
than £10 million in annual revenues. Foresight looks for high-growth markets and
seeks out businesses with the potential to become market leaders. alwaysOn Group
Limited illustrates this philosophy, being at the forefront of the provision of
new telecom services based on 'Voice over Internet Protocol' to UK businesses.
Similarly, TheSkillsMarket Limited is uniquely positioned at the nexus of online
and offline recruitment. It provides an efficient link between candidates,
agencies and jobs by using the internet and word-recognition technology.
Leading technology is often linked to centres of excellence such as the European
aerospace industry which has created an exciting prospect for High Integrity
Solutions Limited. The company has designed and developed a sophisticated
software tool, which improves the productivity of software engineers developing
large software projects and is focused primarily on the aerospace sector.
While we are enthusiastic about the prospects for these new investments and for
other holdings in the portfolio it is important to note that a number of them
are in the early stage of their development and therefore not without risk.
Interim Results
The results for the period from 1st January 2005 to 30th June 2005 are set out
below. The net asset value per Ordinary Share as at 30th June 2005 was 59.45p
(31 December 2004: 76.6p). The total return (after tax) attributable to Ordinary
Shareholders was a loss of 15.13p (31 December 2004 : 51.88p), mainly due to
falls in the share prices of YooMedia plc and Telecom plus plc. YooMedia has
subsequently seen a moderate increase in its share price. With regards to the
holders of 'C' Shares, the net asset value per 'C' Share as at 30th June 2005
was 90.37p (31 December 2004: 93.91p restated) and the attributable return was a
loss of 2.48p per 'C' Share (31December 2004: gain of 26.95p).
Ordinary Shares fund
The last year has seen the transformation of YooMedia, as a result of a number
of acquisitions, from a small business with revenues of less than £1 million to
a major participant in its market with revenues of more than £20 million.
However, following a disappointing trading statement, the share price has
performed poorly falling from 17p as at 31st December 2004 to 6p as at 30th June
2005. This resulted in a net decrease of approximately £2.1 million in the
value of the Ordinary Shares fund.
During the period five new investments were made in TheSkillsMarket Limited
(£300,000), Nanotecture Group plc (£300,000), Covion Holdings Limited
(£300,000), High Integrity Solutions Limited (£225,000) and alwaysON Group
Limited (£300,000).
'C' Shares fund
The Board is pleased with recent progress made within the 'C' Share portfolio
which is driven by the valuations and prospects of several of the investee
companies. Oxonica plc, which engineers the properties of materials at the
nano-scale for application in fuel additives, UV protection and other products,
listed on the AIM market on 20 July 2005. Oxonica, we believe, is the only
European pure-play nanotechnology company listed on AIM. Demand has been
encouraging for the company's products and Stagecoach is now using its fuel
additive product throughout its UK and New Zealand bus fleets. Furthermore,
Boots plc has incorporated Oxonica's UV protection additive into a sunscreen
product, which is currently available in its stores nationwide. The company's
placing on AIM was at an initial price of 95.8p per share and following positive
initial trading the share price (mid-market) at 20 September 2005 was £1.65,
which represents an uplift of £7.0 million on our investment cost.
Additionally, Sarantel Group plc listed on the AIM market on 2nd March 2005
raising a total of £18 million to fund its ongoing expansion. Its miniature
antennae are used in mobile phones and personal digital assistants offering
location based services through navigation satellites. The company saw its sales
quadruple in the year to 30th September 2004 and expects further growth during
the current year. After some initial volatility, both upwards and downwards,
the share price has now settled down following the company's recent announcement
regarding the resolution of its manufacturing capacity issues.
SmartFOCUS Group plc has performed well since listing on the AIM market during
October 2004. In May the company announced a very encouraging trading update,
including a recent contract signing worth in excess of £800,000 and also
reported strong growth in its new managed services offering. This was followed
in July by the announcement of an acquisition and by a profitable trading
statement for the first half of the year which was in line with the company's
expectations. The share price increased by approximately 50% during the period
under review.
Improving trading conditions at both Aquasium Technology Limited and Camwood
Limited have seen a rise in profits at both companies, which has resulted in a
significant improvement in the valuations of both of these portfolio companies.
At the same time we have reduced the valuation of our investments in Broadreach
Networks Limited and Broadreach Train Services Limited. This reflects a more
difficult trading outlook for both businesses.
In addition to several follow-on funding rounds in existing investee companies,
new investments were made, alongside the Ordinary Shares fund, in
TheSkillsMarket Limited (£650,000), Nanotecture Group plc (£700,000), Covion
Holdings Limited (£700,000) and High Integrity Solutions Limited (£525,000).
Venture capital investments now represent 93% of total net assets and for the
time being the 'C' Shares fund is not seeking new investments.
Foresight Venture Partners continue to receive a steady flow of new investment
opportunities and is reviewing a number of potential investments as well as
considering additional commitments to existing portfolio companies. Although
difficult to forecast with any accuracy, we are hopeful that as a result of the
improved stock market conditions and increased corporate activity there may be
further liquidity opportunities within the portfolio during the year.
Details of investments made in the Ordinary and 'C' Share funds during the
period are given below.
Valuation Policy
The investments held by the Company that are not quoted on AIM, OFEX or the
London Stock Exchange have been valued in accordance with the Valuation
Guidelines issued by the British Venture Capital Association ('BVCA') under
which unquoted investments are not normally revalued above cost for at least 12
months after the date of acquisition and thereafter at 'fair value'. Quoted
investments and investments traded on AIM and OFEX are stated at the bid price
as at 30th June 2005. The move from mid-market prices to bid prices, as a result
of the introduction of new accounting standards, has resulted in a reduction in
net assets of approximately £144,000 (0.9p per Ordinary Share) in the Ordinary
Shares fund and £757,000 (2.1p per 'C' Share) in the 'C' Shares fund. The
portfolio valuations are prepared by Foresight Venture Partners and are subject
to approval by the Board.
Dividend Investment Scheme and Share Buybacks
During the period, the Company issued 11,701 'C' Shares under the dividend
investment scheme raising approximately £11,000 in aggregate.
As part of the Company's active buyback programme, 344,534 Ordinary Shares were
purchased for cancellation at an approximate cost of £217,000 and at an
approximate discount to NAV of 10%. Furthermore, 910,000 'C' Shares were
purchased for cancellation at an approximate cost of £810,000, also at an
approximate discount to NAV of 10%.
Peter Dicks, Chairman
THE VENTURE CAPITAL FUNDS
Foresight Venture Partners advise the Company in respect of investments made
within the Ordinary Shares fund and the 'C' Shares fund. During the period ended
30 June 2005 two follow-on investments were made by the Ordinary Shares fund at
a cost of £274,048 and five new investments at a cost of £1,425,000. In addition
five further follow-on investments were made by the 'C' Shares fund at a cost of
£811,527 and four new investments at a cost of £2,575,000. In accordance with
the BVCA guidelines, all investments are held at 'fair value' unless this cannot
be reliably measured, in such cases an explanation has been given in the
individual company narratives. No discounts have been applied to the quoted
investments which are valued at bid price, in line with generally accepted
practice in the venture capital market. The investment portfolio of both funds
as at 30 June 2005 is detailed below.
ORDINARY SHARES FUND
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, Alcatel, Cisco and Intertel. The
company won the Best Small Business, Essex Business Awards 2004. The Ordinary
Shares fund holds 300,868 shares in the company.
Results from the latest audited accounts for the period ended 31 December 2004:
sales £3,020,867, profit before tax £149,588, retained profit £142,893, net
liabilities £123,770.
Dates of Amount Invested Valuation Valuation % Equity/ % of Ordinary
Investment (including Loan Shares Portfolio
Stock) as at 30 June as at 31 December Voting Rights
2005 2004
Nov 98, £480,001 £817,412 £817,412 42.2 15.6
Mar 00
& Jun 03
alwaysON Group Limited
Is a market leading provider of voice over IP (VOIP) services to SMEs.
VOIP service solves the call quality and security issues that have held back
widespread adoption by SMEs to date. The service is delivered using the
company's network and much of the company's own developed software. The Ordinary
Shares fund holds 2,490,008 shares in the company.
Results from the latest accounts for the year ended 31 March 2004: sales
£1,991,000, loss before tax £484,000, retained loss £417,000, net assets
£183,000.
Date of Amount Invested Valuation Valuation % Equity/Voting % of Ordinary
Investment as at 30 June as at 31 December Rights Shares Portfolio
2005 2004
Jun 05 £300,000 £300,000 N/A 3.9 5.7
Aigis Limited
Produces blast protection materials. Applications include containers that can be
used at airports for homeland security purposes, military vehicle and building
cladding. The company is now selling its products on an international basis and
won its biggest contract to date during the year. The Ordinary Shares fund holds
14,253 shares in the company.
Results from the latest accounts for the year ended 30 September 2004: sales
£680,759, loss before tax £20,293, retained loss £6,549, net assets £364,247.
Date of Investment Amount Invested Valuation Valuation % Equity/Voting % of Ordinary
as at 30 June as at 31 December Rights Shares Portfolio
2005 2004
Jul 04, Jun 05 £73,885 £114,024 £32,837 2.0 2.2
Clarity Commerce Solutions plc (AIM listed)
Is part of a group of companies that provide EPOS solutions and ticketing
software and services to the UK hospitality and leisure sectors. Customers
include Odeon and Travelodge. A good set of results were produced for the year
to March 2005, which are summarised below. The Ordinary Shares fund holds
400,000 shares in the company.
Results from the latest accounts for the year ended 31 March 2005: sales
£16,310,000, profit before tax £513,000, retained profit £351,000, net assets
£9,345,000.
Date of Investment Amount Invested Valuation Valuation % Equity/Voting % of Ordinary
as at 30 June 2005 as at 31 December 2004 Rights Shares Portfolio
(Bid price) (Mid-market)
Jul 00 £500,000 £268,000 £270,000 2.5 5.1
Covion Holdings Limited
Provides total facilities management services ('TFM'), or 'Facilities Integrated
Services' (FIS), as it has labelled them, to private sector clients in the
office and industrial sectors. Covion manages all the client's facilities and
subcontracts specific services where necessary. It seeks to form unique and
close partnerships with its clients in the form of joint executive boards to
which its site-based FIS manager reports. Key clients are Logica, Anglian
Windows and Sarah Lee. The Ordinary Shares fund holds 3,605 shares in the
company.
No audited accounts have been produced since incorporation.
Date of Amount Valuation Valuation as % Equity/ Loans % of Ordinary
Investment Invested as at 30 June at 31 December Voting Rights Shares
(including 2005 2004 Portfolio
Loans)
May 05 £300,000 £300,000 N/A 3.6 £269,973 5.7
(Secured)
DCG Datapoint Group Limited
Provider of data storage and back-up solutions to corporates either remotely or
at customers' premises. The demand for Datapoint's services is driven by greater
compliance requirements for retention and retrieval of data and the ever growing
volume of electronic data produced by organisations. Revenue grew substantially
in the year to March 2005. The Ordinary Shares fund holds 6,388 shares in the
company.
Results from the latest audited accounts for the year ended 31 March 2004: sales
£2,572,694, loss before tax £394,807, retained loss £394,807, net liabilities
£222,355.
Date of Amount Invested Valuation Valuation % Equity/ Loans % of Ordinary
Investment (including as at 30 June as at 31 Voting Rights Shares
Loans) 2005 December 2004 Portfolio
Mar 04 £175,000 £175,000 £175,000 4.4 £116,725 3.3
(Secured)
High Integrity Solutions Limited
Has developed and markets a sophisticated software framework tool ('VDS') to
improve the efficiency and productivity of software engineers writing complex
software for major projects, protect the integrity of the software and provide
traceability and a full audit trail. The Ordinary Shares fund holds 1,319,850
shares in the company.
Results from the latest accounts for the year ended 30 June 2004: sales £26,000,
loss before tax £1,110,000, retained loss £2,953,000, net assets £32,000.
Date of Amount Invested Valuation Valuation % Equity/Voting % of Ordinary
Investment as at 30 June as at 31 December Rights Shares
2005 2004 Portfolio
May 05 £225,000 £225,000 N/A 4.5 4.3
Nanotecture Group plc
Nanotecture has developed a method for producing nano-materials which improve
the performance and lower the cost of supercapicitors/batteries, filters and
sensors. The unique patented technology gives the company an important lead over
competition and access to markets worth more than $1 billion. The Ordinary
Shares fund holds 296,689 shares in the company.
Results from the latest accounts for the year ended 31 December 2004: sales
£92,000, loss before tax £1,039,000, retained loss £937,000, net assets
£1,008,000.
Date of Amount Invested Valuation Valuation % Equity/Voting % of Ordinary
Investment as at 30 June as at 31 December Rights Shares
2005 2004 Portfolio
Apr 05 £300,000 £300,000 N/A 3.0 5.7
Sarantel Group plc (AIM Listed)
Manufactures miniature antennae for use in mobile phones and personal digital
assistants offering location based services through GPS navigation satellites.
Its sales quadrupled in the year to 30 September 2004 and further growth is
anticipated in 2005. Sarantel listed on the AIM market on 2 March 2005 raising
an additional £18 million to fund the ongoing expansion of the business. The
Ordinary Shares fund holds 504,146 shares in the company.
Results from the latest audited accounts for the year ended 30 September 2004:
sales £839,000, loss before tax £3,956,000, retained loss £3,756,000, net assets
£5,345,000.
Dates of Amount Invested Valuation Valuation % Equity/ % of Ordinary
Investment as at 30 June as at 31 December Voting Rights Shares Portfolio
2005 2004
(Bid price)
Sep 04, Mar 05 £343,000 £317,612 £180,400 1.1 6.1
Telecom plus plc (listed on the London Stock Exchange)
Is the UK's leading multi-utility (gas, electricity, telephony, internet)
company. Customers benefit from low costs and a single bill each month. Services
provided increased by 29% during the year. The Ordinary Shares fund holds
651,000 shares in the company.
Results from the latest audited accounts for the year ended 31 March 2005: sales
£102,467,000, profit before tax £10,052,000, retained profit £63,000, net assets
£13,629,000.
Dates of Amount Invested Valuation Valuation % Equity/Voting % of Ordinary
Investment as at 30 June 2005 as at 31 December Rights Shares Portfolio
(Bid price) 2004
(Mid-market)
Jun 99 & Dec 02 £248,367 £1,028,580 £1,448,475 1.1 19.6
TheSkillsMarket Limited
Manages CV data for recruitment agencies, outsourcing what is an important but
troublesome task. It creates economies of scale because the data it manages for
each agency is common to many others, i.e. one candidate is known to many
agencies. The service is highly automated, using a mix of proprietary and
third-party software. The Ordinary Shares fund holds 150,000 shares in the
company.
Results from the latest accounts for the year ended 31 March 2004: sales
£796,125, loss before tax £233,256, retained loss £233,256, net liabilities
£49,194.
Date of Amount Invested Valuation Valuation % Equity/Voting % of Ordinary
Investment as at 30 June as at 31 December Rights Shares Portfolio
2005 2004
Mar 05 £300,000 £300,000 N/A 7.5 5.7
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 now operates interactive games channels on Sky
and Freeview and also distributes games on Telewest and NTL. In addition the
company provides various other interactive TV solutions such as e-voting. The
Ordinary Shares fund holds 18,810,000 shares in the company.
Results from the latest audited accounts for the year ended 31 December 2004:
sales £21,267,478, loss before tax £24,017,286, retained loss £23,791,065, net
assets £43,211,729.
Dates of Amount Invested Valuation Valuation % Equity/Voting % of Ordinary
Investment as at 30 June 2005 as at 31 December Rights Shares Portfolio
2004
(Bid price) (Mid-market)
Mar 99,
Nov 02, £917,357 £1,034,550 £3,197,700 4.1 19.7
May 03,
Oct 03 & Apr 04
In addition the Ordinary Shares fund has small investments in DSM Geodata
Limited (£67,015) and Sapphire International Limited (£2,500).
'C' SHARES FUND
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, Alcatel, Cisco and Intertel. The
company won the Best Small Business, Essex Business Awards 2004. The 'C' Shares
fund holds 79,440 shares in the company.
Results from the latest audited accounts for the period ended 31 December 2004:
sales £3,020,867, profit before tax £149,588, retained profit £142,893, net
liabilities £123,770.
Date of Amount Invested Valuation Valuation % Equity/ Loans % of 'C' Shares
Investment (including as at 30 June as at 31 Voting Rights Portfolio
Loans) 2005 December 2004
Jun 03 £203,193 £200,000 £200,000 11.7 £133,333 0.7
(Secured)
Aigis Limited
Produces blast protection materials. Applications include containers that can be
used at airports for homeland security purposes, military vehicle and building
cladding. The company is now selling its products on an international basis and
won its biggest contract to date during the year. The 'C' Shares fund holds
47,514 shares in the company.
Results from the latest accounts for the year ended 30 September 2004: sales
£680,759, loss before tax £20,293, retained loss £6,549, net assets £364,247.
Dates of Amount Invested Valuation Valuation % Equity/Voting % of 'C' Shares
Investment as at 30 June as at 31 December Rights Portfolio
2005 2004
Jul 04, Jun 05 £246,302 £380,112 £109,470 5.5 1.2
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 software based
mathematical modelling techniques for card payments and fraud detection. The 'C'
Shares fund holds 2,177,345 shares in the company.
Results from the latest audited accounts for the year ended 31 March 2004: sales
£2,173,999, loss before tax £844,005, retained loss £512,418, net assets
£198,371.
Dates of Amount Invested Valuation Valuation % Equity/ Loans % of 'C' Shares
Investment (including as at 30 June as at 31 Voting Rights Portfolio
Loans) 2005 December 2004
Feb 02, Oct 02,
Dec 02, Jun 04, £1,340,465 £1,340,465 £1,323,133 16.8 £68,954 4.4
Sep 04 & Jun 05
ANT plc (AIM Listed)
Provides embedded application software and support for the broadband TV,
hospitality and consumer electronics markets. ANT software is used in set-top
boxes and other electronic equipment and has been deployed by customers
throughout the world including Thomson, Pace, Philips, Amino, Samsung and Sagem.
The company listed on AIM in March 2005 raising £11 million. The 'C' Shares fund
holds 1,556,596 shares in the company.
Results from the latest audited accounts for the year ended 31 December 2004:
sales £2,216,729, loss before tax £951,016, retained loss £844,976, net assets
£668,190.
Dates of Amount Invested Valuation Valuation % Equity/ % of 'C' Shares
Investment as at 30 June as at 31 December Voting Rights Portfolio
2005 2004
(Bid price)
Jul 01, Feb 03 £1,097,200 £2,023,575 £1,945,744 6.4 6.7
& Mar 04
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. The 'C' Shares fund holds 86,666 shares
in the company.
Results from the latest audited accounts for the year ended 31 December 2004:
sales £6,317,876, profit before tax £27,488, retained profit £147,454, net
liabilities £946,296.
Dates of Amount Valuation Valuation as % Equity/ Loans % of 'C'
Investment Invested as at 30 June at 31 December Voting Rights Shares
(including 2005 2004 Portfolio
Loans)
Oct 01 & £1,200,000 £3,633,744 £1,200,000 33.3 £866,667 12.0
Apr 03 (Secured)
Blue Curve Research.net Limited
Is a software company that sells products and services to investment banks and
fund managers which automate the production and distribution of research
material. Analytical research and services are a key customer retention tool for
investment banks but are also a major cost. The company's software products
improve the efficiency of research distribution while at the same time reducing
cost. The 'C' Shares fund holds 367 shares in the company.
Results from the latest audited accounts for the year ended 31 December 2004:
sales £972,809, loss before tax £140,729, retained profit £22,373, net
liabilities £821,882.
Date of Amount Valuation Valuation as % Equity/ % of 'C'
Investment Invested at 31 December Voting Loans Shares
(including as at 30 June 2004 Rights Portfolio
Loans) 2005
Oct 01 & Apr £1,133,000 £899,367 £793,334 23.7 £799,667 3.0
05 (Secured)
Broadreach Networks Limited
Provides both fixed line and Wi-Fi hotspot public internet access. Users gain
access from fixed terminals installed at coffee shops, hotels and transport hubs
or by utilising their own portable device. The public Wi-Fi market has not grown
at the rate anticipated, which is reflected in the valuation below. The 'C'
Shares fund holds 4,854,006 shares in the company.
Results from the latest audited accounts for the year ended 31 October 2004:
sales £622,314, loss before tax £1,867,992, retained loss £1,867,992, net
liabilities £2,530,761.
Dates of Amount Valuation Valuation as % Equity/ Loans % of 'C'
Investment Invested at 31 December Shares
(including as at 30 June 2004 Voting Rights Portfolio
Loans) 2005
Feb 03, Oct 03 £1,857,000 £289,192 £1,857,000 22.9 £1,585,600 1.0
& Jun 04 (Secured)
Broadreach Train Services Limited ('BTSL')
Set up to exploit the on-train Wi-Fi opportunity that originated from Broadreach
Networks Limited. Working closely with Virgin Trains, BTSL is aiming to secure a
substantial share of the on-train Wi-Fi market. Users will benefit from
broadband internet connections throughout their journeys. Adoption by the train
operators has been slower than expected which is reflected in the valuation
below.
Results from the latest audited accounts for the period ended 31 October 2004:
sales £Nil, loss before tax £380,657, retained loss £380,657, net assets
£129,206.
Date of Amount Valuation Valuation as % Equity/ Loans % of 'C'
Investment Invested as at 30 at 31 December Shares
(including June 2005 2004 Voting Rights Portfolio
Loans)
Jun 04 £143,000 £21,450 £143,000 0.0 £143,000 0.1
(Secured)
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
sells phonecards to consumers in many jurisdictions, particularly the Middle
East. The competitive landscape has been challenging over the last six months as
companies such as Skype increase their market penetration. The 'C' Shares fund
holds 222,222 shares in the company.
Results from the latest audited accounts for the year ended 31 March 2003: sales
£9,293,066, loss before tax £3,960,176, retained loss £3,960,176, net
liabilities £4,323,990.
Date of Investment Amount Invested Valuation Valuation % Equity/Voting % of 'C' Shares
Rights Portfolio
as at 30 June 2005 as at 31 December
2004
Oct 00 £502,893 £112,499 £224,999 1.27 0.4
Camwood Limited
Provides an 'Enterprise Platform Manager' solution which allows its customers to
assess the effects of the introduction of new operating systems and updates such
as the service Pack 2 update to Microsoft Windows XP. It also provides
monitoring checks to allow customers to ensure compliance with Microsoft best
practices. Sales are made directly and through channel partners to the corporate
sector. The 'C' Shares fund holds 3,623,812 shares in the company.
Results from the latest audited accounts for the year ended 31 March 2004: sales
£2,621,946, loss before tax £830,007, retained loss £631,665, net liabilities
£218,531.
Dates of Amount Valuation Valuation as % Equity/ Loans % of 'C'
Investment Invested at 31 December Shares
(including as at 30 June 2004 Voting Rights Portfolio
Loans) 2005
Sep 03, May 05 £514,090 £786,431 £500,000 15.8 £333,333 2.6
(Secured)
Covion Holdings Limited
Provides total facilities management services ('TFM'), or 'Facilities Integrated
Services' (FIS), as it has labelled them, to private sector clients in the
office and industrial sectors. Covion manages all the client's facilities and
subcontracts specific services where necessary. It seeks to form unique and
close partnerships with its clients in the form of joint executive boards to
which its site-based FIS manager reports. Key clients are Logica, Anglian
Windows and Sarah Lee. The 'C' Shares fund holds 8,411 shares in the company.
No audited accounts have been produced since incorporation.
Date of Amount Valuation Valuation as % Equity/ Loans % of 'C'
Investment Invested at 31 December Shares
(including as at 30 June 2004 Voting Rights Portfolio
Loans) 2005
May 05 £700,000 £700,000 N/A 8.4 £629,936 2.3
(Secured)
DCG Datapoint Group Limited
Provider of data storage and back-up solutions to corporates either remotely or
at customers' premises. The demand for Datapoint's services is driven by greater
compliance requirements for retention and retrieval of data and the ever growing
volume of electronic data produced by organisations. Revenue grew substantially
in the year to March 2005. The 'C' Shares fund holds 20,987 shares in the
company.
Results from the latest audited accounts for the year ended 31 March 2004: sales
£2,572,694, loss before tax £394,807, retained loss £394,807, net liabilities
£222,355.
Date of Amount Invested Valuation Valuation % Equity/ Loans % of 'C' Shares
Investment (including as at 30 June as at 31 Voting Rights Portfolio
Loans) 2005 December 2004
Mar 04 £575,000 £575,000 £575,000 14.4 £383,525 1.9
(Secured)
FfastFill plc (AIM Listed)
Is a software company that develops sophisticated trading solutions for futures
and options traders, brokers and risk managers. A £3 million funding round was
completed earlier this year to strengthen the company's balance sheet. New
customers signed include HSBC, Barclays Capital and ABN Amro. The 'C' Shares
fund holds 6,485,498 shares in the company.
Results from the latest audited accounts for the year ended 31 March 2005: sales
£4,327,000, loss before tax £2,879,000, retained loss £2,882,000, net assets
£2,584,000.
Dates of Amount Invested Valuation Valuation % Equity/Voting % of 'C' Shares
Investment as at 30 June as at 31 December Rights Portfolio
2005 2004
(Bid price) (Mid-market)
Jul 00, Jan 04 & £856,339 £372,916 £421,558 2.7 1.2
Apr 04
High Integrity Solutions Limited
Has developed and markets a sophisticated software framework tool ('VDS') to
improve the efficiency and productivity of software engineers writing complex
software for major projects, protect the integrity of the software and provide
traceability and a full audit trail. The 'C' Shares fund holds 3,079,650 shares
in the company.
Results from the latest accounts for the year ended 30 June 2004: sales £26,000,
loss before tax £1,110,000, retained loss £2,953,000, net assets £32,000.
Date of Amount Invested Valuation Valuation % Equity/Voting % of 'C' Shares
Investment Rights Portfolio
as at 30 June as at 31 December
2005 2004
May 05 £525,000 £525,000 N/a 10.5 1.7
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. Although the company is trading profitably, the Board believes
it is prudent to maintain the provision against the cost of this investment to
reflect lower turnover than that anticipated at the time of the initial
investment. The 'C' Shares fund holds 201,176 shares in the company.
Results from the latest audited accounts for the year ended 30 June 2004: sales
£3,144,321, loss before tax £9,877, retained loss £9,531, net assets £554,911.
Date of Amount Invested Valuation Valuation % Equity/Voting % of 'C' Shares
Investment as at 30 June as at 31 Rights Portfolio
2005 December 2004
Dec 00 £750,000 £500,000 £500,000 16.8 1.6
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 software licensing costs whilst demonstrating
legal compliance. The 'C' Shares fund holds 474,057 shares in the company.
Results from the latest audited accounts for the year ended 31 July 2004: sales
£966,442, loss before tax £350,914, retained loss £326,372, net liabilities
£1,911,422.
Dates of Amount Valuation Valuation as % Equity/ Loans % of 'C'
Investment Invested at 31 December Shares
(including as at 30 June 2004 Voting Rights Portfolio
Loans) 2005
Mar 01 & £1,017,858 £656,251 £656,251 22.2 £616,072 2.2
Jan 03 (Secured)
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. The 'C' Shares fund
holds 489,855 shares in the company and £900,000 convertible loan stock.
Results from the latest audited accounts for the year ended 30 April 2004: sales
£3,974,732, loss before tax £1,779,554, retained loss £1,631,806, net
liabilities £617,901.
Dates of Amount Valuation Valuation as at % Equity/ Loan Stock % of 'C'
Investment Invested 31 December Shares
(including as at 30 June 2004 Voting Rights Portfolio
Loan Stock 2005
(Bid price) (Mid-market)
Oct 00 & Dec £1,068,116 £989,768 £1,017,623 1.9 £900,000 (at 3.3
02 cost)
Nanotecture Group plc
Has developed a method for producing nano-materials which improve the
performance and lower the cost of supercapicitors/batteries, filters and
sensors. The unique patented technology gives the company an important lead over
competition and access to markets worth more than $1 billion. The 'C' Shares
fund holds 692,275 shares in the company.
Results from the latest accounts for the year ended 31 December 2004: sales
£92,000, loss before tax £1,039,000, retained loss £937,000, net assets
£1,008,000.
Date of Amount Invested Valuation Valuation % Equity/Voting % of 'C' Shares
Investment as at 30 June as at 31 December Rights Portfolio
2005 2004
Apr 05 £700,000 £700,000 N/A 7.1 2.3
Oxonica plc (Listed on AIM 20 July 2005)
Engineers the properties of materials at the nano-scale for application in fuel
additives, UV protection and other products. Foresight invested a further
£510,000 in shares in a January 2005 rights issue. The Company listed on the AIM
market in July 2005. The 'C' Shares fund now holds 5,683,108 shares in the
company.
Results from the latest audited accounts for the year ended 31 December 2004:
sales £390,525, loss before tax £3,291,938, retained loss £3,161,171, net
liabilities £1,774,471.
Dates of Amount Valuation Valuation as % Equity/ Loans % of 'C'
Investment Invested at 31 December Shares
(including as at 30 June 2004 Voting Rights Portfolio
Loans) 2005
Jun 02, Dec 02 £2,373,710 £5,444,418 £5,746,186 20.5 £524,053 17.9
& Jan 04 (Secured)
Sarantel Group plc (AIM Listed)
Manufactures miniature antennae for use in mobile phones and personal digital
assistants offering location based services through GPS navigation satellites.
Its sales quadrupled in the year to 30 September 2004 and further growth is
anticipated in 2005. Sarantel listed on the AIM market on 2 March 2005 raising
an additional £18 million to fund the ongoing expansion of the business. The 'C'
Shares fund holds 8,268,974 shares in the company.
Results from the latest audited accounts for the year ended 30 September 2004:
sales £839,000, loss before tax £3,956,000, retained loss £3,756,000, net assets
£5,345,000.
Dates of Amount Invested Valuation Valuation % Equity/ % of 'C' Shares
Investment as at 30 June as at 31 Voting Rights Portfolio
2005 December
(Bid price) 2004
Sep 00, Apr 01, £2,853,166 £5,209,454 £6,780,112 16.6 17.1
Jun 01, Mar 02,
Aug 02, Sep 02,
Nov 02, Feb 03,
Jun 04 & Sep 04
SmartFOCUS Group PLC (AIM Listed)
Provides software to enable accurate targeting and execution of marketing
campaigns. The company is an established solution provider in this area with
approximately 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 whilst presenting the results in
an easily understandable graphic manner. The company was profitable in the first
half of 2005 and in July announced an acquisition expected to be earnings
enhancing in 2006. The 'C' Shares fund holds 19,892,985 shares in the company.
Results from the latest audited accounts for the year ended 31 December 2004:
sales £2,850,101, loss before tax £324,052, retained loss £179,448, net
liabilities £239,409.
Dates of Amount Invested Valuation Valuation % Equity/ Loans % of 'C' Shares
Investment (including as at 30 June as at 31 Voting Rights Portfolio
Loans) 2005 December 2004
(Bid price) (Mid-market)
Dec 01 & Oct 04 £1,666,667 £3,053,741 £2,480,843 27.0 £666,667 10.0
(Secured)
themutual.net plc (AIM Listed)
Sells targeted advertising by email aimed to its 1.25 million loyalty based
online shoppers. Good results were announced for the year to April 2005 as
summarised below. The 'C' Shares fund holds 3,427,302 shares in the company.
Results from the latest accounts for the year ended 30 April 2005: sales
£3,079,352, profit before tax £778,165, retained profit £489,385, net assets
£2,099,903.
Date of Investment Amount Invested Valuation Valuation % Equity/Voting % of 'C' Shares
as at 30 June as at 31 Rights Portfolio
2005 December 2004
(Bid price)
Jun 00 £502,938 £822,552 £976,781 8.5 2.7
TheSkillsMarket Limited
Manages CV data for recruitment agencies, outsourcing what is an important but
troublesome task. It creates economies of scale because the data it manages for
each agency is common to many others, i.e. one candidate is known to many
agencies. The service is highly automated, using a mix of proprietary and
third-party software. The 'C' Shares fund holds 325,000 shares in the company.
Results from the latest accounts for the year ended 31 March 2004: sales
£796,125, loss before tax £233,256, retained loss £233,256, net liabilities
£49,194.
Date of Amount Invested Valuation Valuation % Equity/Voting % of 'C' Shares
Investment as at 30 June as at 31 December Rights Portfolio
2005 2004
Mar 05 £650,000 £650,000 N/A 16.2 2.1
Wire-e Limited
Provides voice and text broadcast services to corporates and small and medium
enterprises. The business is now making an operating profit as sales continue
to grow. The 'C' Shares fund holds 6,666,666 shares in the company.
Results from the latest audited accounts for the year ended 30 June 2004: sales
£897,661, loss before tax £381,079, retained loss £356,692, net liabilities
£1,313,574.
Date of Amount Valuation Valuation as % Equity/ Loans % of 'C'
Investment Invested as at 30 June at 31 December Voting Shares
(including 2005 2004 Rights Portfolio
Loans)
Sep 02, Apr 03 £1,000,000 £500,000 £500,000 26.9 £900,000 (at 1.6
cost)
(Secured)
Unaudited Non-Statutory Analysis between the Ordinary Shares and C Shares funds
Unaudited Statement of Total Return for the six months ended 30 June 2005
Ordinary Shares 'C' Shares
fund fund
Revenue Capital Total Revenue Capital £ Total
£ £ £ £ £
Unrealised gains and losses on - (2,379,125) (2,379,125) - (733,781) (733,781)
investments
Realised gains on investments - - - - 25,412 25,412
Cost of investment transactions - - - - (90) (90)
Income 199,430 - 199,430 327,106 - 327,106
Investment Management Fees (37,802) (113,407) (151,209) (91,402) (274,206) (365,608)
Other Expenses (47,580) - (47,580) (164,518) - (164,518)
Profit before income tax 114,048 (2,492,532) (2,378,484) 71,186 (982,665) (911,479)
Income Tax expense (8,447) 8,447 - (13,525) 13,525 -
Profit for the year 105,601 (2,484,085) (2,378,484) 57,661 (969,140) (911,479)
Return per share 0.67p (15.80)p (15.13)p 0.16p (2.64)p (2.48)p
Unaudited Balance Sheets
as at 30 June 2005
Ordinary 'C' Shares fund
shares fund
£ £ £ £
Non-current assets
Assets held at fair value 5,249,693 30,385,935
through profit and loss -
investments
Current assets
Debtors and prepayments 208,185 687,567
Current investments 3,827,168 1,750,563
Cash at bank 2,495 40,016
4,037,848 2,478,146
Current Liabilities
Corporation tax - -
Proposed dividends - 31
Other creditors 9,336 68,209
Accruals 78,170 121,374
(87,506) (189,614)
Net current assets 3,950,342 2,288,532
Net assets 9,200,035 32,674,467
Capital
Called up share capital 154,743 361,561
Reserves
Share premium account 4,046,967 2,953,685
Cancelled share premium account 4,538,974 23,740,452
Revaluation reserve (762,478) 5,425,136
Profit and loss account 1,221,829 193,633
9,200,035 32,674,467
No of shares in issue 15,474,292 36,156,091
Net asset value per 1p share: 59.45p 90.37p
Unaudited Income Statement
For the period ended 30 June 2005
Six months Six months Year to
to 30 June to 30 June 31
2005 2004 December
Restated 2004
(unaudited) (unaudited) Restated
Revenue Capital Total Revenue Capital Total Revenue Capital Total
£ £ £ £ £ £ £ £ £
Unrealised gains - (3,112,906) (3,112,906) - (4,221,551) (4,221,551) - 2,576,905 2,576,905
and losses on
investments
Realised gains/ - 25,412 25,412 - 40,339 40,339 - (14,261) (14,261)
(losses) on
investments
Costs of - (90) (90) - - - - - -
investment
transactions
Income 526,536 - 526,536 604,799 - 604,799 1,174,057 - 1,174,057
Investment (129,204) (387,613) (516,817) (138,549) (415,644) (554,193) (271,331) (813,995) (1,085,326)
management fees
Other expenses (212,098) - (212,098) (281,701) - (281,701) (560,690) - (560,690)
Profit before
income tax 185,234 (3,475,197) (3,289,963) 184,549 (4,596,856) (4,412,307) 342,036 1,748,649 2,090,685
Income tax expense (21,972) 21,972 - (40,027) 40,027 - (69,349) 69,349 -
Profit for the
year 163,262 (3,453,225) (3,289,963)144,522 (4,556,829) (4,412,307) 272,687 1,817,998 2,090,685
Earnings per share
Ordinary Shares 15.13)p (47.58)p (51.88)p
'C' Shares (2.48)p 6.25p 26.95p
The are no other gains or losses other than those stated in the Unaudited Income
Statement for the six month period ended 30 June 2005 (31 December 2004:same, 30
June 2004:same).
Unaudited Balance Sheets
as at 30 June 2005 30 June 2005 30 June 31 December 2004
2004
(unaudited) Restated Restated
(unaudited)
£ £ £ £ £ £
Non-Current Assets
Assets held at fair
value through profit and
loss - Investments 35,635,628 26,237,426 34,212,249
Current Assets
Debtors and prepayments 841,395 699,016 710,375
Current investments 5,577,731 11,539,238 12,207,011
Cash at bank 42,511 9,945,344 53,544
6,461,637 22,183,598 12,970,930
Current Liabilities
Corporation tax - - -
Proposed dividend 31 - -
Other creditors 23,188 58,653 117,589
Accruals 199,544 135,451 150,058
(222,763) (192,004) (267,647)
Net current assets 6,238,874 21,991,594 12,703,283
Net assets 41,874,502 48,229,020 46,915,532
Capital and reserves
Called up share capital 516,304 524,999 528,732
Share premium account 7,000,652 6,291,041 6,989,978
Distributable reserve 28,279,426 34,133,730 29,675,485
Capital reserve -
unrealised 4,662,658 (2,234,678) 8,309,277
Profit & loss account 1,415,462 9,513,928 1,412,060
Equity shareholders'
funds 41,874,502 48,229,020 46,915,532
Net asset value per
share of 1 pence each:
Ordinary Shares 59.45p 135.35p 76.60p
'C' Shares 90.37p 73.88p 93.91p
Unaudited Cashflow Statement for the six months ended 30 June 2005
Six months to Six months to Year to 31
30 June 2005 30 June 2004 December 2004
(unaudited) (unaudited) (audited)
£ £ £
Operating activities
Dividends received - - 69,600
Deposit and similar interest 423,140 502,686 932,914
Other cash receipts - - 13,248
Investment management fees paid (562,801) (581,770) (1,093,543)
Other cash payments (170,478) (222,085) (469,979)
Net cash outflow from operating activities (310,139) (301,169) (547,760)
Taxation
Income taxes refunded/(paid) - 7,259 7,259
Investing activities
Purchase of non-current investments (5,085,575) (2,218,025) (4,448,992)
Sale of non-current investments 25,412 10,565,821 10,565,821
Net cash (outflow)/inflow from investing activities (5,060,163) 8,347,796 6,116,829
Equity dividends
Equity dividends paid (185,241) - (8,171,595)
Net cash (outflow)/inflow before financing and liquid (5,555,543) 8,053,886 (2,595,267)
resource management
Management of liquid resources
Movement in money held on escrow - (1,000,000) -
Increase in current investments 6,629,280 (1,116,286) (1,784,059)
6,629,280 (2,116,286) (1,784,059)
Financing
Purchase of own shares (1,095,561) (96,938) 4,701,670
Issue of shares 10,791 3,994,235 (379,247)
(1,084,770) 3,897,297 4,322,423
Net (decrease)/increase in cash (11,033) 9,834,897 (56,903)
Unaudited Notes to the Financial Statements
1. All revenue and capital items in the income statement derive from continuing
operations.
2. In accordance with the policy statement published under 'Management and
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 dividend 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 it can regard capital reserves as profits of the Company available for
distribution. The Company has not reapplied and does not intend to re-apply
for investment company status.
6. The Ordinary Shares fund current investments and the 'C' Shares fund current
investments represent the balance of the net proceeds from the issues of
Ordinary Shares and 'C' Shares. These funds are invested in several Dublin
based OEIC money market funds managed by Merrill Lynch Investment Managers,
Royal Bank of Scotland plc and HBOS plc.
7. Total earnings after taxation for the period showed a loss of £3,289,963 (30
June 2004: loss of £4,412,307) comprising a loss on the Ordinary Shares fund
after taxation of £2,378,484 (30 June 2004: loss of £6,656,214) and a loss
after taxation on the 'C' Shares fund of £911,479 (30 June 2004: profit of
£2,243,907) . The basic earnings per Ordinary Share is based on the net loss
from Ordinary Shares fund activities and on 15,724,816 Ordinary Shares (30
June 2004: 13,990,381) , being the weighted average number of Ordinary
Shares in issue during the period. The basic earnings per 'C' Share is based
on the net loss from 'C' Shares fund activities and is based on 36,722,361 '
C' Shares (30 June 2004: 35,892,588), being the weighted average number of '
C' Shares in issue during the period.
The revenue return per Ordinary Share is based on the net loss from Ordinary
Shares fund activities after taxation of £105,601 (30 June 2004: loss of
£26,122) and on 15,724,816 Ordinary Shares (30 June 2004: 13,990,381) , 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 £57,661 (30 June 2004: £170,644) and on 36,722,361
'C' Shares (30 June 2004: 35,892,588), 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
losses of £nil (30 June 2004: losses of £6,281), on net unrealised capital
losses of £2,379,125 (30 June 2004: losses of £6,422,758) on the Ordinary Shares
fund and on 15,724,816 Ordinary Shares (30 June 2004: 13,990,381) being the
weighted average number of Ordinary Shares in issue during the period . The
capital return per 'C' Share is based on the net realised capital gains of
£25,322 (30 June 2004: gains of £46,620), on net unrealised capital losses of
£733,781 (30 June 2004: gains of £2,201,207) on the 'C' Shares fund and on
36,722,361 'C' Shares (30 June 2004: 35,892,588) being the weighted average
number of 'C' Shares in issue during the period.
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 2005 has been
allocated to the Ordinary Shares fund.
9. The financial information for the six months ended 30 June 2005 has not been
audited or previously published and the 30 June 2004 information has not
been audited. The information for the year ended 31 December 2004 does not
comprise full financial statements within the meaning of Section 240 of the
Companies Act 1985. The financial statements for the year ended 31 December
2004 (before the restatements in these accounts) have been filed with the
Registrar of Companies. The auditors have reported on these financial
statements and that report was unqualified and did not contain a statement
under Section 237(2) of the Companies Act 1985. The audited accounts to 31
December 2004 have been restated in this publication, where appropriate, to
reflect the changes in presentation following the introduction of FRS 21.
10. Impact of the introduction of FRS 21
Restatement of opening balances at 31 December 2003
At 1 January 2005 the Company adopted Financial Reporting Standard 21.
The following is a reconciliation of the figures at 31 December 2003 previously reported under the applicable UK
Accounting
Standards and the
Statement of Recommended Practice.
Previously Restated
reported
31 December 2003 Adjustments 31 December 2003
£ £ £
Non-current assets 37,766,434 37,766,434
Current assets 11,101,774 11,101,774
Creditors: amounts falling due within one
year (343,947) 181,237 (162,710)
Net assets 48,524,261 181,237 48,705,498
Capital and reserves
Called up share capital 483,606 483,606
Share Premium Account 2,339,207 2,339,207
Distributable Reserve 34,578,917 34,578,917
Capital reserve - unrealised 10,731,225 10,731,225
Profit and Loss Account 391,306 181,237 572,543
Equity shareholders' funds 48,524,261 181,237 48,705,498
Basic and Diluted Net asset value per share Basic Diluted Basic Diluted
Ordinary Shares 186.85p 176.85p 186.85p 176.85p
'C' Shares 67.18p 67.18p 67.70p 67.70p
Note to reconciliation
Under FRS 21 the proposed dividend is not recognised until it is declared and approved by the shareholders. Therefore
£181,237 has been added to the profit and loss account and other creditors.
Restatement of opening balances at 30 June 2004
At 1 January 2005 the Company adopted Financial Reporting Standard 21.
The following is a reconciliation of the figures at 30 June 2004 previously reported under the applicable UK Accounting
Standards and the Statement
of Recommended Practice.
Previously Restated
reported
30 June 2004 Adjustments 30 June 2004
£ £ £
Non-current assets 26,237,426 26,237,426
Current assets 22,183,598 22,183,598
Creditors: amounts falling due within one (8,362,087) 8,170,083 (192,004)
year
Net assets 40,058,937 8,170,083 48,229,020
Capital and reserves
Called up share capital 524,999 524,999
Share Premium Account 6,291,041 6,291,041
Distributable Reserve 34,133,730 34,133,730
Capital reserve - unrealised -2,234,678 (2,234,678)
Profit and Loss Account 1,343,845 8,170,083 9,513,928
Equity shareholders' funds 40,058,937 8,170,083 48,229,020
Net asset value per share (basic and diluted)
Ordinary Shares 83.33p 135.35p
'C' Shares 73.40p 73.88p
Note to reconciliation
Under FRS 21 proposed dividends are not recognised until they are declared and approved by the shareholders. Therefore
£8,170,083 has been added
to the profit and loss account and other creditors.
Restatement of opening balances at 31 December 2004
At 1 January 2005 the Company adopted Financial Reporting Standard 21
The following is a reconciliation of the figures at 31 December 2004 previously reported under the applicable UK
Accounting
Standards and the
Statement of Recommended Practice.
Previously Restated
reported
31 December 2004 Adjustments 31 December 2004
£ £ £
Non-current assets 34,212,249 34,212,249
Current assets 12,970,930 12,970,930
Creditors: amounts falling due within one (452,919) 185,272 (267,647)
year
Net assets 46,730,260 185,272 46,915,532
Capital and reserves
Called up share capital 528,732 528,732
Share Premium Account 6,989,978 6,989,978
Distributable Reserve 29,675,485 29,675,485
Capital reserve - unrealised 8,309,277 8,309,277
Profit and Loss 1,226,788 185,272 1,412,060
Equity shareholders' funds 46,730,260 185,272 46,915,532
Net asset value per share (basic and diluted)
Ordinary Shares 76.60p 76.60p
'C' Shares 93.41p 93.91p
Note to reconciliation
Under FRS 21 the proposed dividend is not recognised until it is declared and approved by the shareholders. Therefore
£185,272
has been added
to the profit and loss account and other creditors.
11. Impact of the introduction of FRS 25 and FRS 26
The financial information for the six months ended 30 June 2005 has been prepared in accordance with Financial
Reporting Standards 25 and 26. The introduction of these new standards has had the following impacts:
Valuation:
The assets held at fair value through the profit and loss by the company are valued at bid price rather than
mid-market price as in prior periods.
Six months to Year to
30 June 2005 31 December 2004
(unaudited) (audited)
£ £
Valuation at bid price 35,635,628 33,662,959
Valuation at mid-market price 36,536,620 34,212,249
Difference (900,992) (549,290)
Transaction costs:
Transaction costs incurred when purchasing or selling assets are now written off to the capital column of the
Income Statement in the period they occur.
Investment costs at 1 January 2005 included transaction costs of £15,577. In the restated opening balances as
at 1 January 2005 these costs have been expensed to the distributable reserve.
12. Movement in Reserves
for the period ended 30 June 2005
Profit &
Called up Share Distributable loss Revaluation
share premium account
capital account reserve reserve reserve Total
£ £ £ £ £ £
At 31 December 2004 (restated) 528,732 6,989,978 29,675,485 1,412,060 8,309,277 46,915,532
Effect of changes in accounting policy
arising from the introduction of FRS 25
and FRS 26
- valuation - - - - (549,290) (549,290)
- transaction costs - - (15,577) - 15,577 -
At 1 January 2005 (restated) 528,732 6,989,978 29,659,908 1,412,060 7,775,564 46,366,242
Shares issued/(bought back) (12,428) 10,674 (1,014,751) - - (1,016,505)
Write off to distributable reserve - - (365,731) 365,731 - -
Realised gains - - - 25,322 - 25,322
Profit for the year - - - (202,379) (3,112,906) (3,315,285)
Dividend - final for year ended 31 - - - (185,272) - (185,272)
December 2004
At 30 June 2005 516,304 7,000,652 28,279,426 1,415,462 4,662,658 41,874,502
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