Foresight 4 VCT PLC : Half-yearly report
FORESIGHT 4 VCT PLC
Summary
Net asset value per Ordinary Share as at 30 September 2011 fell by 2.1%, represented by a net asset value of 109.6p at 30 September 2011 compared to a net asset value of 112.0p as at 31 March 2011.
The Company made two new and seven follow-on investments totalling £1,972,386.
Proceeds of £681,237 were received from three investments.
The linked offer with Foresight 3 VCT, launched on 7 January 2011, raised gross proceeds of £12.2 million between its launch and30 June 2011 when the offer closed, of which the Company's share was £6.1 million.
An interim dividend of 5.0p per share will be paid on 24 February 2012.
| 6 months ended 30 September 2011 | 13 months ended 31 March 2011 | |
| Ordinary Shares | Ordinary Shares | |
| Net asset value per Ordinary Share | 109.6p | 112.0p |
| Net asset value per Ordinary Share (including all dividends paid) | 196.9p | 199.3p |
| Share price per Ordinary Share | 102.5p | 97.5p |
| Share price total return per Ordinary Share (including all dividends paid) | 189.8p | 184.8p |
Chairman's Statement
Performance and Dividends
The period under review has seen a return of volatile markets and extreme concern about the state of government finances in many parts of Europe. The impact of falling markets and a lack of credit finance available to portfolio companies have impacted the valuations of several investee companies whether, directly, through lower levels of sales orders than expected or, indirectly, through falls in comparative valuation multiples. However, I am pleased to report significant growth in the profitability of several other investments within the portfolio. During the six months ended 30 September 2011, the net asset value of the Ordinary Shares fell by 2.1% to 109.6p per share.
The principal write-downs in the portfolio have related to three of our environmental investments, where manufacturing plants have taken longer to build than originally anticipated and current trading conditions have resulted in customer reluctance to replace existing virgin raw material supplies with recycled, cheaper alternatives. Although we believe that this phenomenon is temporary in most instances and these companies continue to make progress, they are now substantially behind plan and valuation downgrades were considered necessary.
The performances both in terms of revenues and profits of several of the unquoted investments within the portfolio improved materially in the period under review. A significant amount of this improvement can be attributed to export driven growth, as well as benefitting from new sales revenues from the development of new products and markets. Furthermore, the order books of several portfolio companies give the Investment Manager cause for optimism that the recent positive performance of these companies can be maintained.
However, stock market sentiment remains volatile with significant macroeconomic uncertainties remaining combined with difficult trading and credit conditions in many sectors of the economy. Against this background, the Investment Manager continues to adopt a cautious approach to management of the portfolio.
I am pleased to report, following the trend of recent years, that an interim dividend of 5.0p per Ordinary Share for the year ending 31 March 2012 will be paid to Ordinary Shareholders on 24 February 2012. The dividend will have a record date of 10 February 2012 and an exdividend date of 8 February 2012. The Company's policy is to maximise the level of tax-free dividends generated either from income or from capital profits realised on the sale of investments while at the same time providing a maintainable dividend although this will depend on its ability to pay a dividend and continue to fund the underlying portfolio.
Share Issues and Share Buy-backs
The Company launched a linked offer for new Ordinary Shares alongside Foresight 3 VCT plc on 7 January 2011, which raised gross proceeds of £12.2 million between its launch and 30 June 2011 when the offer closed, of which the Company's share was £6.1 million. During this period, 1,110,690 Ordinary Shares were allotted at prices ranging from 115.0p to 119.0p per share.
It continues to be the Board's policy to consider repurchasing shares when they become available in order to provide a degree of liquidity for the Company's shares.
During the period, the Company repurchased 462,708 Ordinary Shares for cancellation at a cost of £468,985 and at a discount to net asset value ranging from 9.6% to 10.2%.
Valuation Policy
Investments held by the Company have been valued in accordance with the International Private Equity and Venture Capital (IPEVC) valuation guidelines (August 2010) developed by the British Venture Capital Association and other organisations. Through these guidelines, investments are valued as defined at 'fair value'. Ordinarily, unquoted investments will be valued at cost for a limited period following the date of acquisition, being the most suitable approximation of fair value unless there is an impairment or significant accretion in value during the period. Listed investments and investments traded on AIM and PLUS (formerly OFEX) are valued at the bid price as at 30 September 2011. The portfolio valuations are prepared by Foresight Group, reviewed and approved by the Board quarterly and subject to review by the auditors annually.
Merger Proposals
The Board intends to send out details during December 2011 of the proposed merger of Foresight 4 with Foresight Clearwater VCT plc, Foresight 5 VCT plc and Acuity VCT 3 plc.
Foresight Clearwater VCT plc is comprised almost entirely of cash (£1.1 million) and will be merged into the existing ordinary shares fund. Foresight 5 and Acuity VCT 3 will be merged into a new 'C' Shares fund within Foresight 4 for a period of up to three years before conversion into ordinary shares. This will have the effect of protecting any latent value in both portfolios and ensuring this accrues to the relevant class of shareholders.
Further details will be provided in the circulars to be sent out in December, but the attractions and cost savings of an enlarged VCT are substantial and I would encourage shareholders to vote in favour of the mergers after reading all of the appropriate documents.
Outlook
In recent months Foresight Group has seen trade buyers returning to the merger & acquisitions market acquiring high growth and high innovation companies and, if this trend continues despite the recent increase in market volatility, we expect to see a number of portfolio realisations in the coming months. Additionally, Foresight Group is seeing its deal flow of new investment opportunities increasing but we remain cautious about the economic outlook and the Manager will aim to invest only in new opportunities which are considered sufficiently robust and attractive. The Board and Investment Manager are hopeful that the current performance of the portfolio will improve and that realisations will, over the medium term, be achieved resulting in further positive net asset value performance and continued distributions to shareholders.
Philip Stephens
Chairman
30 November 2011
Investment Manager's Report
The performance of the portfolio during the period has been affected by a combination of both positive and negative factors, resulting overall in a 2.1% fall in net asset value. The continuing strong trading performance of a number of companies in the portfolio, most notably Autologic Diagnostics and Datapath, and reasonable levels of current mergers & acquisition activity give cause for optimism. Following a successful recapitalisation at Autologic Diagnostics, £586,667 was received during the period with no dilution of Foresight 4's shareholding.
Equities and markets have displayed high levels of volatility and uncertainty during the period, with a consequent impact on the valuations of certain portfolio companies, with lower multiples having to be applied to their earnings despite generally good performance.
With regard to the environmental investments, their plants are generally operating well with consistent and reliable production but the need is now to build market traction and increase sales. Current economic conditions have slowed customer decision making and led to caution in the adoption of new products. In some cases, lack of available finance has delayed investment and expansion plans. Reflecting slower than expected growth in sales at i-plas and Crumb Rubber, further provisions have been made against these investments totalling £452,756. O-Gen UK is experiencing growing demand for its biomass-energy technology as evidenced by its agreement with a major UK outsourcing group to build up to five biomass-energy facilities in South West England, all of which will be fully funded by this major partner and also a separate agreement with Withion Power to build a facility in Derby which is expected to come on stream in early 2012. Despite achieving periods of extended electricity production at O-Gen Acme Trek's Stoke facility, a provision of £2.0 million has been made against the previous carrying value of this investment as a result of a series of technical problems which are being steadily addressed.
Slow growth is expected in the UK economy in 2012 and rising costs and inflation could undermine prospects in the medium term. The current outlook for most companies in the portfolio is considered satisfactory given their international exposure. Although blue chip corporate balance sheets are as strong as ever, we have some concerns that current market volatility could have a negative impact on appetite for smaller companies through mergers and acquisitions.
Against this background, we are only looking at new investment opportunities which are considered particularly robust and attractive in valuation terms.
Portfolio Review
Over the last two years, as a result of tougher trading and credit conditions, the number of follow-on investments made by the VCT has increased. This has reflected the need for additional working capital arising as a result of trading conditions and reduced bank credit lines or overdrafts but has also included funding for growth.
The Company made two new investments into Vertal (£650,000) and Crumb Rubber (£150,000) and provided follow-on funding totalling £1,172,386 for seven portfolio companies: @Futsal (£341,977), Closed Loop (£310,000), O-Gen Acme Trek (£270,419), Silvigen (£143,755), Autologic Diagnostics Holdings (£84,805), Amberfin Holdings (£13,332) and Snell Corporation (£8,098).
The performance highlights during the period were as follows:
Autologic Diagnostics (formerly Diagnos Holdings) develops and sells sophisticated automotive diagnostic software and hardware to independent mechanics and garages to allow them to service and repair vehicles. In the year ended 31 December 2010, an operating profit of £2.7 million was achieved on sales of £9.3 million. The company is continuing to grow sales and profits in its current financial year. On 1 July 2011, a recapitalisation was completed which yielded proceeds of £586,667 on the equity shares held by the VCT, against cost of £106,667. The VCT has maintained its equity share in Autologic Diagnostics at an undiluted level. As part of the recapitalisation, £84,805 of loan interest was capitalised.
Datapath is a world leading innovator in the field of computer graphics and video wall display technology. An operating profit of £3.1 million (after an amortisation charge of £0.4 million), was achieved on sales of £10.3 million in the year ended 31 March 2011.
TFC Europe, which distributes technical fasteners, reported an operating profit of £1.3 million (after an amortisation charge of £0.5 million), on sales of £13.5 million for the year ended 31 March 2011.
Closed Loop Recycling continues to make solid operational, commercial and revenue progress with production rates at record levels and significantly improved plant reliability and consistency. An investment of £310,000 was made in the period to further upgrade its conveyor system. Product quality remains high and there is strong demand for all the recycled material produced. The company continues to be affected by raw material quality which restricts throughput and yield, but is able to operate reliably within the consequent capacity constraints. Major investment is planned at the Dagenham site to increase capacity to meet the substantial demand for the cleaned and sorted output, which generate significant contribution and drive profitability. Closed Loop Recycling is currently profitable and generating revenues in excess of £1.3 million per month.
An additional investment in O-Gen Acme Trek of £270,419 was required because of delays in achieving full commissioning of the underlying plant and to provide ongoing working capital. O-Gen Acme Trek is now generating electricity periodically but is making slow progress towards bringing its facility on stream. Nevertheless, the plant continues to be impacted by poor original engineering in key support systems and the company is seeking a funding partner to address these issues. As such, reflecting this slower progress a further provision of £2.0 million has been made against the value of this investment.
For the six months to 30 September 2011, The Bunker Secure Hosting continued to win new orders, grow revenues and is generating substantial profits. For the year to 31 December 2010, an EBITDA of £1.5 million was achieved on sales of £6.2 million. Following the upgrade of the Ash data centre electrical infrastructure in 2010/11, The Bunker has continued to invest heavily in increasing the capacity of its fibre network and in filling out additional space at Ash and Newbury, supporting the company's growth in providing high value managed hosting services.
An investment of £650,000 was made into Vertal during the period to support investments in further processing equipment at its first plant in Mitcham and to cover a working capital requirement. An extensive review of all operational and processing issues has been concluded with the resulting solutions implemented or planned to be implemented in the quarter ended 30 September 2011. Following a number of changes to the senior management team, the company is well positioned to deliver on its new business plan through increasing waste volumes into the plant and additional disposal outlets including processed material being sold as an organic fuel to Anaerobic Digestion facilities. Although volumes processed are now up to 900 tonnes per week, the company is presently still incurring operating losses with a projected operating profit targeted for the first quarter of 2012.
@Futsal have further developed their flagship Birmingham indoor football arena, following a further £341,977 investment from the VCT, and this arena hosted a number of Football Association events over the summer. The education arm of the business is developing with several hundred children now taking sports related courses within @Futsal's arenas. However, sales growth is behind original expectations, with UK consumer spending under pressure, and progress towards profitability has been impacted as a result.
Silvigen received further funding of £143,755 to finance additional capital expenditure for its waste wood processing facility which will enable increased production as well as provide additional working capital as the company builds sales pipeline in the animal bedding market.
Although I-plas successfully increased its production capacity by investing in additional plastic moulding equipment, sales growth has been slower than expected due to the impact of the current economic climate and uncertainties in the construction sector. Reflecting this continuing slow progress, a provision has been made against the cost of this investment.
Evance has continued to benefit from strong growth in demand for its 5kW turbines and is now making operating profits.
Crumb Rubber continues to successfully manufacture high grade products at its Plymouth facility. Whilst the long-term prospects remain attractive, growth in customer demand remains frustratingly slow due to protracted decision making cycles. Foresight are working with the team to minimise costs and drive new business development and sales but at this stage the business continues to be loss making. The VCT invested £150,000 during the period.
Ixaris has continued to develop Opn, its platform that enables enterprises to develop custom applications for payments. This platform is being used by companies in the affiliate marketing and travel sectors.
Realisations
Foresight 4 sold £48,000 of Zoo Digital loan notes during the period. Simultaneously, Zoo Digital successfully concluded an equity placing in August prior to the downturn in equity markets, to accelerate the roll-out of the company's software in new markets, particularly the creation of eBooks. The fundraising was contingent on the restructuring of Zoo Digital's loan notes, necessitating partial conversion of Foresight 4's loans (£483,750).
Proceeds of £586,667 were received from Autologic Diagnostics through the recapitalisation detailed above. A loan repayment of £23,285 was also received from Trilogy Communications plus a 100% redemption premium.
After detailed negotiation, Foresight 4 received $881,296 of deferred consideration from Advanced Visual Technologies in October 2011 as a result of the partial release of funds held in Escrow.
Outlook
Underlying trading in many of the portfolio companies has benefited, to varying degrees, from the positive export conditions created by a weaker currency and reflects better than expected growth in portfolio companies' target markets, particularly in the Far East. Conversely, many investments in the environmental portfolio are making progress but growth in sales is suffering from operational delays in bringing the various facilities to optimum production, as well as longer lead times for product acceptance for its customers. However, we remain reasonably optimistic about current prospects and the outlook for many portfolio companies, which continue to display good order books and revenue and profit growth. This is tempered by continued challenging economic fundamentals and uncertainties that could lead to a prolonged period of low growth. Across all the portfolio companies, we have, where appropriate, ensured that management are focused on cash conservation and cost reductions in light of the continuing fragile economic recovery.
Foresight is actively pursuing a number of potential portfolio realisations in several market sectors to generate value and distributions for shareholders but M&A activity at the smaller company level is still inconsistent and we remain concerned that a return to the economic volatility of 2008/2009 may lead to a significant fall in M&A activity.
David Hughes
Foresight Group
Chief Investment Officer
30 November 2011
Unaudited Half-Yearly Results and Responsibility Statements
Principal Risks and Uncertainties
The principal risks faced by the Company are as follows:
· Performance;
· Regulatory;
· Operational; and
· Financial.
The Board reported on the principal risks and uncertainties faced by the Company in the Annual Report and Accounts for the year ended 31 March 2011 ('the Annual Report'). A detailed explanation can be found on page 12 of the Annual Report which is available on www.foresightgroup.eu or by writing to Foresight Group at ECA Court, South Park, Sevenoaks, Kent, TN13 1DU.
In the view of the Board, there have not been any changes to the fundamental nature of these risks since the previous report and these principal risks and uncertainties are equally applicable to the remaining six months of the financial year as they were to the six months under review.
Directors' Responsibility Statement:
The Disclosure and Transparency Rules ('DTR') of the UK Listing Authority require the Directors to confirm their responsibilities in relation to the preparation and publication of the Interim Report and financial statements.
The Directors confirm to the best of their knowledge that:
(a) the summarised set of financial statements has been prepared in accordance with the pronouncement on interim reporting issued by the Accounting Standards Board;
(b) the interim management report includes a fair review of the information required by DTR 4.2.7R (indication of important events during the first six months and description of principal risks and uncertainties for the remaining six months of the year);
(c) the summarised set of financial statements give a true and fair view in accordance with UK GAAP of the state of affairs of the Company and of the profit and loss of the Company for that period and comply with UK GAAP and Companies Act 2006; and
(d) the interim management report includes a fair review of the information required by DTR 4.2.8R (disclosure of related parties' transactions and changes therein).
Going Concern
The Company's business activities, together with the factors likely to affect its future development, performance and position are set out in the Business Review in the 31 March 2011 annual report. The financial position of the Company, its cash flows, liquidity position and borrowing facilities are described in the Chairman's Statement, Business Review and Notes to the Accounts of the 31 March 2011 annual report. In addition, the annual report includes the Company's objectives, policies and processes for managing its capital; its financial risk management objectives; details of its financial instruments and hedging activities; and its exposures to credit risk and liquidity risk.
The Company has considerable financial resources together with investments and income generated therefrom across a variety of industries and sectors. As a consequence, the Directors believe that the Company is well placed to manage its business risks successfully despite the current uncertain economic outlook.
The Directors have reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the annual financial statements.
The half-yearly Financial Report has not been audited or reviewed by the auditors.
By order of the Board
Philip Stephens
Chairman
30 November 2011
Unaudited Income Statement
for the six months ended 30 September 2011
| 6 months ended | 6 months ended | 13 months ended | ||||||||||
| 30 September 2011 | 31 August 2010 | 31 March 2011 | ||||||||||
| (unaudited) | (unaudited) | (audited) | ||||||||||
| Revenue | Capital | Total | Revenue | Capital | Total | Revenue | Capital | Total | ||||
| £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | ||||
| Realised gains on investments | - | 712 | 712 | - | 10 | 10 | - | 30 | 30 | |||
| Investment holding (losses)/gains | - | (1,130) | (1,130) | - | 1,930 | 1,930 | - | 6,637 | 6,637 | |||
| Income | 177 | - | 177 | 476 | - | 476 | 1,025 | - | 1,025 | |||
| Investment management fees | (100) | (300) | (400) | (99) | (298) | (397) | (259) | (1,036) | (1,295) | |||
| Other expenses | (175) | - | (175) | (160) | - | (160) | (358) | - | (358) | |||
| (Loss)/return on ordinary activities before taxation | (98) | (718) | (816) | 217 | 1,642 | 1,859 | 408 | 5,631 | 6,039 | |||
| Taxation | - | - | - | - | - | - | (93) | 93 | - | |||
| (Loss)/return on ordinary activities after taxation | (98) | (718) | (816) | 217 | 1,642 | 1,859 | 315 | 5,724 | 6,039 | |||
| (Loss)/return per Ordinary Share | (0.3)p | (1.9)p | (2.2)p | 0.7p | 5.2p | 5.9p | 1.0p | 17.8p | 18.8p | |||
The total column of this statement is the profit and loss account of the Company and the revenue and capital columns represent supplementary information.
All revenue and capital items in the above Income Statement are derived from continuing operations. No operations were acquired or discontinued in the year.
The Company has no recognised gains or losses other than those shown above; therefore, no separate statement of total recognised gains and losses has been presented.
Unaudited Balance Sheet
at 30 September 2011
Registered Number: 03506579
| As at | As at | As at | |
| 30 September 2011 | 31 August 2010 | 31 March 2011 | |
| (unaudited) | (unaudited) | (audited) | |
| £'000 | £'000 | £'000 | |
| Non-current assets | |||
| Investments held at fair value through profit or loss | 33,077 | 24,889 | 32,306 |
| Current assets | |||
| Debtors | 2,720 | 2,430 | 2,502 |
| Money market securities and other deposits | 3,379 | 6,452 | 3,368 |
| Cash | 1,642 | 69 | 3,401 |
| 7,741 | 8,951 | 9,271 | |
| Creditors | |||
| Amounts falling due within one year | (812) | (459) | (1,414) |
| Net current assets | 6,929 | 8,492 | 7,857 |
| Net Assets | 40,006 | 33,381 | 40,163 |
| Capital and reserves | |||
| Called-up share capital | 365 | 321 | 359 |
| Share premium | 26,260 | 20,411 | 25,137 |
| Capital redemption reserve | 1,849 | 1,840 | 1,844 |
| Profit and loss account | 11,532 | 10,809 | 12,823 |
| Equity shareholders' funds | 40,006 | 33,381 | 40,163 |
| Net asset value per Ordinary Share | 109.6 p | 104.1 p | 112.0 p |
Unaudited Reconciliation of Movements in Shareholders' Funds
for the six months ended 30 September 2011
| Called-up share capital | Share premium account | Capital redemption reserve | Profit and loss account | Total | |
| £'000 | £'000 | £'000 | £'000 | £'000 | |
| Book cost as at 1 April 2011 | 359 | 25,137 | 1,844 | 12,823 | 40,163 |
| Share issues in the period | 11 | 1,250 | - | - | 1,261 |
| Expenses in relation to share issues | - | (127) | - | - | (127) |
| Repurchase of shares | (5) | - | 5 | (475) | (475) |
| Loss for the period | - | - | - | (816) | (816) |
| As at 30 September 2011 | 365 | 26,260 | 1,849 | 11,532 | 40,006 |
Unaudited Summary Cash Flow Statement
for the six months ended 30 September 2011
| 6 months ended | 6 months ended | 13 months ended | |
| 30 September 2011 | 31 August 2010 | 31 March 2011 | |
| (unaudited) | (unaudited) | (audited) | |
| £'000 | £'000 | £'000 | |
| Cash flow from operating activities | |||
| Investment income received | 163 | 181 | 354 |
| Deposit and similar interest received | 2 | 23 | 39 |
| Investment management fees paid | (359) | (388) | (1,326) |
| Secretarial fees paid | - | (62) | (119) |
| Other cash payments | (100) | (133) | (293) |
| Net cash outflow from operating activities and returns on investment | (294) | (379) | (1,345) |
| Taxation | - | - | - |
| Returns on investment and servicing of finance | |||
| Purchase of unquoted investments and investments quoted on AIM | (1,888) | (1,143) | (4,290) |
| Net proceeds on sale of investments | 681 | 373 | 826 |
| Net proceeds from deferred consideration | 31 | 10 | 148 |
| Net capital outflow from financial investment | (1,176) | (760) | (3,316) |
| Equity dividends paid | - | - | (1,728) |
| Management of liquid resources | |||
| Subscription to money market | (11) | (4,512) | (4,500) |
| Redemption from money market | - | - | 3,072 |
| (11) | (4,512) | (1,428) | |
| Financing | |||
| Proceeds of fund raising | 283 | 4,298 | 10,040 |
| Expenses of fund raising | (127) | (179) | (145) |
| Repurchase of own shares | (434) | (450) | (728) |
| (278) | 3,669 | 9,167 | |
| (Decrease)/increase in cash | (1,759) | (1,982) | 1,350 |
Notes to the Unaudited Half-Yearly Financial Report
The unaudited half-yearly results have been prepared on the basis of accounting policies set out in the statutory accounts of the Company for the period ended 31 March 2011. Unquoted investments have been valued in accordance with IPEVC guidelines. Quoted investments are stated at bid prices in accordance with UK Generally Accepted Accounting Practice.
These are not statutory accounts in accordance with S436 of the Companies Act 2006 and the financial information for the six months ended 30 September 2011 and 31 August 2010 has been neither audited nor reviewed. Statutory accounts in respect of the period to 31 March 2011 have been audited and reported on by the Company's auditors and delivered to the Registrar of Companies and included the report of the auditors which was unqualified and did not contain a statement under S498(2) or S498(3) of the Companies Act 2006. No statutory accounts in respect of any period after 31 March 2011 have been reported on by the Company's auditors or delivered to the Registrar of Companies.
Copies of the Half-yearly Financial Report have been sent to shareholders and are available for inspection at the Registered Office of the Company at ECA Court, South Park, Sevenoaks, Kent, TN13 1DU.
Copies of the Half-yearly Financial Report are also available electronically at www.foresightgroup.eu.
Net asset value per share
The net asset value per share is based on net assets at the end of the period and on the number of Ordinary Shares in issue at that date.
| Net Assets | Number of Shares | ||
| £'000 | in Issue | ||
| 30 September 2011 | 40,006 | 36,512,963 | |
| 30 August 2010 | 33,381 | 32,060,833 | |
| 31 March 2011 | 40,163 | 35,864,981 | |
Return per share
| 6 months ended | 6 months ended | 13 months ended | |
| 30 September 2011 | 31 August 2010 | 31 March 2011 | |
| (unaudited) | (unaudited) | (audited) | |
| £'000 | £'000 | £'000 | |
| Total (loss)/return after taxation | (816) | 1,859 | 6,039 |
| Total (loss)/return per Ordinary Share (note a) | (2.2)p | 5.9p | 18.8p |
| Revenue (loss)/return from rdinary activities after taxation | (98) | 217 | 315 |
| Revenue (loss)/return per Ordinary Share (note b) | (0.3)p | 0.7p | 1.0p |
| Capital (loss)/return from rdinary activities after taxation | (718) | 1,642 | 5,724 |
| Capital (loss)/return per Ordinary Share (note c) | (1.9)p | 5.2p | 17.8p |
| Weighted average number of shares in issue in the period | 36,690,332 | 31,463,140 | 32,204,092 |
Notes:
a) Total return per Ordinary Share is total return after taxation divided by the weighted average number of shares in issue during the period.
b) Revenue return per Ordinary Share is revenue return after taxation divided by the weighted average number of shares in issue during the period.
c) Capital return per Ordinary Share is capital return after taxation divided by the weighted average number of shares in issue during the period.
Income
| 6 months ended | 6 months ended | 13 months ended | |
| 30 September 2011 | 31 August 2010 | 31 March 2011 | |
| (unaudited) | (unaudited) | (audited) | |
| Notes | £'000 | £'000 | £'000 |
| Loan stock interest | 164 | 451 | 985 |
| Overseas based Open Ended Investments Companies ("OEICs") | 11 | 13 | 28 |
| Bank deposits | 2 | 12 | 12 |
| 177 | 476 | 1,025 |
Investments at fair value through profit or loss
| Quoted | Unquoted | Total | ||
| £'000 | £'000 | £'000 | ||
| Book cost as at 1 April 2011 | 1,600 | 22,747 | 24,347 | |
| Investment holding gains | 212 | 7,747 | 7,959 | |
| Valuation at 1 April 2011 | 1,812 | 30,494 | 32,306 | |
| Movements in the period: | ||||
| Purchases at cost | - | 1,972 | 1,972 | |
| Disposal proceeds | (48) | (633) | (681) | |
| Realised gains | - | 610 | 610 | |
| Investment holding losses | (204) | (926) | (1,130) | |
| Valuation at 30 September 2011 | 1,560 | 31,517 | 33,077 | |
| Book cost at 30 September 2011 | 1,552 | 24,696 | 26,248 | |
| Investment holding gains | 8 | 6,821 | 6,829 | |
| Valuation at 30 September 2011 | 1,560 | 31,517 | 33,077 | |
Related party transactions
Foresight Group, as Investment Manager of the Company, is considered to be a related party by virtue of its management contract with the Company. During the period, services of a total value of £400,000 (31 August 2010: £397,000; 31 March 2011: £1,036,000) were purchased by the Company from Foresight Group. At 30 September 2011, the amount due to Foresight Group was £nil. Additionally, a fee of £259,000 was paid to Foresight Group under the performance incentive arrangements during March 2011.
If the 5.0p per Ordinary Share dividend payable on 24 February 2012 results in the payment of a performance incentive fee of 15% of the dividend paid, this would amount to a payment of £273,847 for the year ending 31 March 2012. On a strict pro-rata basis £136,924 would relate to the six months ended 30 September 2011 but no such accrual has been incorporated in the interim accounts.
Foresight Fund Managers Limited, as Secretary of the Company and as a subsidiary of Foresight Group, is also considered to be a related party of the Company. During the period, services of a total value of £57,000 excluding VAT (31 August 2010: £35,000; 31 March 2011: £86,000) were purchased by the Company from Foresight Fund Managers Limited. At 30 September 2011, the amount due to Foresight Fund Managers was £nil.
No Director has, or during the period had, a contract of service with the Company. No Director was party to, or had an interest in, any contract or arrangement (with the exception of Directors' fees) with the Company at any time during the period under review or as at the date of this report.
END
The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of the
information contained therein.
Source: Foresight 4 VCT PLC via Thomson Reuters ONE
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