REG-Foresight 4 VCT PLC : Final Results <Origin Href="QuoteRef">FTF.L</Origin>
31/07/2017 16:25
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FORESIGHT 4 VCT PLC
Final Results
31 July 2017
Foresight 4 plc, managed by Foresight Group CI Limited, today announces the
final results for the year ended 31 March 2017.
These results were approved by the Board of Directors on 31 July 2017.
You may, in due course, view the Annual Report in full
at www.foresightgroup.eu. All other statutory information can also be found
there.
Financial Summary
ORDINARY SHARES FUND
· Diversified portfolio of 26 actively managed companies
· Total net assets £42.2 million
· Net Asset Value per Ordinary Share increased by 3.1p to 73.5p as at 31
March 2017 (31 March 2016:70.4p).
· The portfolio has seen an uplift in valuation of £2.7 million over the
year
· One follow-on investment of £0.2 million was made during the year
· £0.3 million was realised from sales and loan redemptions from three
portfolio companies, and a further £0.5 million of deferred consideration
· On 22 June 2017 Foresight 4 VCT plc acquired the assets and liabilities of
Foresight 3 VCT plc. The new larger Company, with post-merger assets of £77.0
million, will be better positioned to increase shareholder value, raise funds
and progress the investment strategy.
· In July 2017 the Company successfully exited its investments in Blackstar
Amplification and
The Bunker Secure Hosting, realising a total of £6.0 million compared to an
investment cost of
£2.1 million.
· A special dividend of 4.0p per Ordinary Share was paid on 17 July 2017
based on an ex-dividend date of 29 June 2017 and a record date 30 June 2017
Chairman's statement
During the year, the net asset value per Ordinary Share increased by 4.4% to
73.5p, driven by the positive performance of investments. The Company
has now achieved growth in net asset value over several quarters and
the Board believes that the underlying portfolio of growing companies
is well positioned to maintain this in future periods.
MERGER WITH FORESIGHT 3 VCT PLC
Following the end of the reporting period, the previously proposed merger of
Foresight 4 VCT plc and Foresight 3 VCT plc became effective after it
received approval from the Shareholders of both companies on 14 and 22 June
2017. We anticipate that your new larger Company, with a portfolio of 26
companies with carrying values and post-merger assets of £77.0 million,
will be better positioned to increase shareholder value, raise
further funds, and progress the current successful investment strategy. The
merger, which has been under discussion since September 2016, is expected to
deliver cost savings and other benefits which the Board believes support
the strategy to expand the size of the Company. The ability to sustain a
significantly wider spread of investments will facilitate risk management by
increasing diversification. In addition, the reduced need to
maintain liquid assets should allow the enlarged Company to consider making
additional returns to Shareholders. The increased scale of the Company gives
it the critical mass to generate sufficient income and realisations and
expects to meet an attractive dividend target, as well as maintaining a
regular programme of share buybacks aimed at maintaining an initial discount
to NAV in the region of 10%. Furthermore, a larger company is able to spread
the fixed elements of running costs across a wider asset base and, as a
result, can reduce costs as a percentage of net assets. Accordingly, the
annual management fee will reduce from 2.25% to 2.0% of net assets and the
annual expenses cap will reduce from 3.5% to 2.95% of net assets. Full
details of the merger can be found in the Circular sent to you on 19 May
2017 which is also available on Foresight's website.
SPECIAL DIVIDEND
It is the Company's policy to provide a flow of tax-free dividends,
generated from income and from capital profits realised on the sale of
investments. However, distributions are inevitably dependent largely on
successful realisations, refinancings and other forms of cash generation,
which have been low during the review period. The Board was therefore not
able to recommend a dividend during the year. The Board is encouraged by
the recent success in generating cash from investments within the
portfolio, notably the sale of The Bunker Secure Hosting and Blackstar
Amplification in July 2017. Enhanced by the increased size of the Company,
this gives the Board confidence that it may be able to initiate future
payments of dividends to Shareholders when prudent to do so. The Board
therefore declared a Special Dividend of 4.0p per share, payable to
shareholders on the register on 30 June 2017. The Special Dividend was paid
on 17 July 2017.
TOP-UP SHARE ISSUES AND SHARE BUY-BACKS
During the period under review there were no share buybacks or share
issues. However, following the merger, alongside the Special Dividend, the
Company is also in a position to provide a partial or full exit event for
shareholders by way of a Tender Offer of up £5 million. As announced on 21
July 2017 the offer period will run until 20 September 2017 at a discount
to NAV of 7.5%. Full details of the Tender Offer (including application
forms for participation) can be found in the Circular sent to you on 21
July 2017, which is also available on Foresight's website. In addition to
this tender offer, over time the also Board expects to be in a position to
implement a series of share buybacks to enable the enlarged VCT to achieve
its target of a discount to NAV in the region of 10%. It remains
the Board's intention to provide a potential exit event via a
further Tender Offer in 2018.
FUNDRAISING
The Board is also taking the opportunity to raise up to £50 million
through the issue of new shares in the Company, through an offer for
subscription, launched on 19 May 2017. This will provide Shareholders and
new investors with the opportunity to invest in the Company and benefit from
the tax reliefs available to qualifying investors. The Board believes
that there are attractive opportunities to make further growth
investments in order to generate returns for investors as the
Manager continues to see strong deal flow and is seeing a significant
number of high quality private equity investment opportunities.
Funds raised under the offer will allow the Company to take advantage
of this flow of attractive investment opportunities and further
increase portfolio diversification in line with the ongoing strategy of
the Company. Full details of the offer, which will close on 30 April 2018,
can be found in the Prospectus issued by the Company on 19 May 2017.
BOARD COMPOSITION
Following the resolutions at the Annual General Meeting in September 2016,
and following the merger with Foresight 3 VCT plc, a number of changes
have been made to the Board. Upon the retirement of Philip Stephens from
the Board with effect from 31 March 2017, Simon Jamieson was appointed as
Chairman of Foresight 4 VCT plc. Subsequently I was appointed as Chairman on
22 June 2017. Peter Dicks also indicated his intention to retire from the
Board on the earlier of a corporate action or the Annual General Meeting in
2017. To facilitate this, Michael Gray joined the Board as an independent
Non-Executive Director on 14 February 2017. Further details of the
Board members can be found on page 28-29 of the Annual Report and
Accounts. On behalf of the Board, we would like to wish both Philip and
Peter well for the future and thank them for their valuable
contributions, since the launch of the Company in 1998 in Philip's case and
since 2004 for Peter. Read
PERFORMANCE AND PORTFOLIO ACTIVITY
The Board is generally pleased with the increase in net asset value achieved
during the year under review. At the year end the Company held 26
investments with carrying values in UK based businesses across a wide
range of sectors. The Company has benefited from the solid
overall performance within the portfolio and increased valuations of
several companies, principally Datapath, Procam, Specac and Protean, which
are detailed in the Top Ten Investment section of the Annual Report and
Accounts.
The wider VCT sector has begun to see an increase in investment activity as
it adapts to the changes in regulation set out in the much delayed
publication of HMRC's VCT Guidance Manual in May 2016. However,
with limited liquidity available, no new investments were completed by the
Company during the year and one follow-on investment of £189,000 was made
in molecular diagnostics business Biofortuna. The Investment Manager,
Foresight Group, continues to see a strong pipeline of potential
investments sourced through its regional networks and
well-developed relationships with advisors and the SME community.
Assuming the fund raising launched in May 2017 is successful, the
Company expects to be in a position to fully exploit these attractive
investment opportunities. In the year to 31 March 2017, two small
realisations took place and generated total proceeds of £251,000. Trilogy
Communications was sold to a US competitor in the professional intercom
sector, while the Company reduced its position in AIM listed group, ZOO
Digital. Since the end of the period this investment has been fully
realised. Furthermore, Blackstar Amplification and The Bunker Secure Hosting
have also been successfully sold, realising a combined total of £6.0
million. During the year the Manager has supported and worked with
the management teams of the investee companies to maximise value
for shareholders. The Board believes that the re-focused portfolio
now provides a solid platform to deliver growth, underpin future
dividends and enhance Shareholder returns. Further information on
the investment portfolio is included within the Investment Manager's Report
on page 8 of the Annual Report and Accounts.
SHAREHOLDER COMMUNICATION
As part of its ongoing commitment to high quality investor relations, the
Board encourages you to attend one of the popular Investor Forums hosted by
the Investment Manager, Foresight Group. Four of these popular events are
held annually and we will be in touch later this year about the
next opportunity to attend.
ANNUAL GENERAL MEETING
The Company's Annual General Meeting will take place on 28 September 2017 at
10.00am. I look forward to welcoming you to the Meeting, which will be held
at the offices of Foresight Group in London. Prior to the formal business
of the Annual General Meeting, Foresight Group, the investment Manager and
two investee companies will give presentations.
OUTLOOK
Over the last year, the Board believes that the Company has demonstrated the
benefits of the Manager's portfolio management actions, with
improving performance driving Net Asset Value growth. We believe
the Company is now well positioned to build on this momentum. Headway has
been made in reducing the discount in NAV during the period under review,
with the discount dropping to 20%. However, further progress
is required. Facilitated by the merger with Foresight 3 VCT plc and
the liquidity expected to be provided by the issue of new shares,
the Company should be able to capitalise on the strong pipeline
of attractive investment opportunities that the Manager continues to see in
smaller, growth businesses across the UK.
Raymond Abbott
Chairman
31 July 2017
Investment Manager's Review
As at 31 March 2017 the Company's portfolio comprised 26 actively managed
investments with a total cost
of £17.7m million and a valuation of £40.5 million. The portfolio is
diversified by sector, transaction type, and maturity profile. Details of the
ten largest investments by valuation, including an update on their
performance, are provided on page 12 of the Annual Report and Accounts.
NEW INVESTMENTS AND FOLLOW-ON FUNDING
The Company had current cash in hand of £1.6 million at 31 March 2017. This
will be utilised alongside proceeds from the recent realisations and
proceeds from the offer for subscription for new and follow on investments,
buybacks and ongoing running expenses. No new investments were made during
the year to 31 March 2017. In July 2016, a further tranche of £189,000 was
invested in molecular diagnostics business Biofortuna as part of a £1.6
million funding round alongside other Foresight VCTs and coinvestors. This
additional capital was provided to help finance continuing new product
development of its blood group genotyping range. During the year the company
has increased the number of customers using the business for manufacturing,
providing greater visibility of revenues and a platform for positioning the
company for growth next year. I
PIPELINE
Foresight has a focused strategy for generating deal flow across the UK,
combining meetings with advisors and professional service firms,
attending and organizing networking events and approaching businesses
directly. Foresight is deeply connected within the investment community and
its efforts are producing positive results. The team typically analyses
around 100 new investment opportunities each month, of which only a handful
will be deemed of sufficient quality to require full evaluation for
a potential investment. Foresight is firmly established as a key player in
the investment range of £1m to £5m and is acknowledged for its appetite to
transact and support ambitious SME management teams.
EXITS AND REALISATIONS
Total proceeds of £251,000 were generated during the year from the disposal
of two investments. In addition four further investments were exited
without proceeds.
In August 2016, the Company successfully completed the sale of Trilogy
Communications, which provides intercoms solutions to a number of sectors
including defence, broadcast and industrials, to California based Clear-Com
LLC. The Company received £139,000 following completion (compared with
a carrying value of £81,000 at 31 March 2016), with further deferred
consideration payable subject to warranty claims and tax claims. This
contingent asset is recognised as a debtor within the Company's accounts at
31 March 2017. During the year, a total of 1,108,537 ordinary shares in AIM
listed Zoo Digital ("ZOO") were sold, realising £139,000 Further disposals
continued post period end and the investment was fully exited on 5
April 2017. ZOO supplies software and services for authored content (e.g.
DVD, Blu-ray, iTunes media) to media businesses and post-production firms.
The current environment is supportive of further exits across the portfolio.
While exchange rates currently favour international buyers, we continue to
witness strong appetite to acquire high quality UK companies from both
domestic and international parties.
Following the end of the reporting year, the Company's positions in Blackstar
Amplification and The Bunker Secure Hosting were successfully realised,
generating total proceeds of £6.0 million compared to an investment cost of
£2.1 million. The sale of Autologic's operating subsidiaries was
also agreed with Opus Group AB, a Swedish company which provides vehicle
environmental and safety testing services globally. Although the value of
this realisation was in line with the recently reduced valuation, this sale
takes total the overall returns on this investment to 4.6x initial cost,
including the partial sale of the investment to a mid-market private equity
firm in 2012.
Blackstar Amplification
The Company originally invested in Blackstar Amplification, an award-winning
Northamptonbased designer and manufacturer of innovative guitar amplifiers,
in 2012. The funding provided growth capital and helped restructure the
company's shareholder base. In addition, Foresight introduced Keith Pacey,
former Executive Chairman and CEO of Maplin Electronics, as Chairman.
Blackstar has expanded internationally and more than doubled turnover over
the last four years, established itself as the number two amplifier brand in
the UK and USA and broadened its product catalogue. The exit was facilitated
by a management buyout, supported by the company's manufacturing and
distribution partners, and generated return of c.2x money.
The Bunker Secure Hosting
Having first invested in May 2006, the Company has been a longstanding
shareholder in The Bunker, which builds, hosts and manages high security,
high availability IT data centres, providing competitive data storage
solutions. The growth capital provided by the Company was used to scale The
Bunker's data storage facilities materially. The business has experienced a
compound annual growth rate of over 14% of recurring revenues for the past
three years with annual revenues growing to in excess of £9 million
compared to £1.8m at investment, having built an expert reputation in the
specialist FinTech space. The Bunker was acquired by Palatine Private
Equity, generating an overall return of 2.44x over the life of the
investment.
DISPOSALS IN THE YEAR ENDED 31 MARCH 2017
Company Detail Original Cost/ Take-On Value £'000 Proceeds £'000 Gain/(loss) £'000 Exit Multiple Valuation at 31 March 2016 £'000
Trilogy Communications Holdings Limited Full disposal 776 138 (638) 0.2 81
Zoo Digital Group plc Part disposal 377 112 (265) 0.3 108
The Skills Group Limited Dissolved 789 1 (788) 0.0 -
Abacuswood Limited Part disposal 224 - (224) 0.0 -
Always On Group Limited Full disposal 680 - (680) 0.0 85
Thermotech Solutions Limited** Part disposal 800 - (800) 0.0 800
The Fin Machine Company Limited Dissolved 3,037 - (3,037) 0.0 -
Total disposals 6,683 251 (6,432)* 0.00 1,074
In addition to the above, deferred consideration of £509,000 was received by
the fund from the sale of Amberfin Holdings Limited, O-Gen Acme Limited and
DeFaqto Group Limited.
* Of this figure, £5,608,000 of the loss had been recognised in previous
years and as such had no impact on the NAV in the current year.
** This investment was restructured in the year.
POST PERIOD END DISPOSALS
Company Detail Original Cost/ Take-On Value £'000* Proceeds on exit £'000* Gain/(loss) £'000* Exit Multiple** Valuation at 31 March 2017 £'000*
Blackstar Amplification Holdings Limited Full disposal 1,000 1,543 543 1.5 1,535
The Bunker Secure Hosting Limited Full disposal 3,260 4,431 1,171 1.4 4,425
Autologic Diagnostics Group Limited Full disposal 2,000 600 (1,400) 0.3 600
Zoo Digital Group plc Full disposal 1,053 297 (756) 0.3 306
* Based on Foresight 3 VCT plc and Foresight 4 VCT plc merged figures.
** Compares original cost to proceeds on exit. Excludes interest income, loan
repayments and recapitalisations in previous periods.
Key Portfolio Developments
The Company has benefitted from solid performance of the underlying
portfolio, with a net valuation change of £2.7 million in total. Material
changes in valuation, defined as increasing or decreasing by £500,000 or
more since 31 March 2016, are detailed below. Each of these companies are
detailed in the Top Ten Investments section on the next page, with the
exception of Autologic.
Autologic Diagnostics Group provides advanced aftermarket automotive
diagnostic services. A switch in strategy towards a recurring revenue
model for its software-based diagnostic tools incurred some exceptional
costs. Trading has continued to deteriorate recently and the valuation of the
company has been reduced accordingly. The investment was subsequently sold
after the end of the reporting period in June 2017. The sale takes total
overall returns on this investment to 4.6x initial cost.
Company Valuation Methodology Valuation Change (£)
Datapath Group Limited Discounted earnings multiple 2,312,171
Procam Television Holdings Discounted earnings multiple 797,015
Specac International Limited Discounted earnings multiple 686,194
Protean Software Limited Discounted earnings multiple 590,457
CoGen/Ogen UK Limited Discounted cash flow (566,663)
Thermotech Solutions Limited Discounted earnings multiple (629,219)
Autologic Diagnostics Group Limited Discounted earnings multiple (1,891,350)
Outlook
Although the recent UK election has introduced further uncertainty, Foresight
believes the outlook for the UK's SME sector remains positive.
Foresight continues to see increasing dealflow and a high level of activity
with a growing pipeline of suitable investment opportunities. Formal Brexit
negotiations have now commenced with details of the initial framework for
the UK's exit from the European Union likely to take shape over the coming
months. Foresight remains of the view that this will ultimately create new
opportunities for well-managed, entrepreneurial SMEs, which will require
financing to support their future growth. Furthermore, we expect to see the
solid interest from numerous potential acquirers of businesses in the
portfolio crystallise into further realisations in the year ahead.
Russell Healey
Partner and Head of Private Equity
Foresight Group
31 July 2017
Income Statement
for the year ended 31 March 2017
Year ended Year ended
31 March 2017 31 March 2016
Revenue Capital Total Revenue Capital Total
£'000 £'000 £'000 £'000 £'000 £'000
Investment holding gains - 8,728 8,728 - 3,931 3,931
Realised losses on investments - (5,941) (5,941) - (10,434) (10,434)
Income 383 - 383 2,570 - 2,570
Investment management fees (229) (686) (915) (279) (839) (1,118)
Other expenses (424) - (424) (499) - (499)
(Loss)/return on ordinary activities before taxation (270) 2,101 1,831 1,792 (7,342) (5,550)
Taxation - - - - - -
(Loss)/return on ordinary activities after taxation (270) 2,101 1,831 1,792 (7,342) (5,550)
Return per share:
Ordinary Share (0.6)p (3.7)p (3.1)p 3.1p (12.7)p (9.6)p
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.
Reconciliation of Movements in Shareholders' Funds
Called-up share capital Share premium account Capital redemption reserve Profit and loss account Total
Year ended 31 March 2017 £'000 £'000 £'000 £'000 £'000
As at 1 April 2016 574 5,147 265 34,379 40,365
Expenses in relation to previous share issues* - (35) - - (35)
Transaction costs - - - (2) (2)
Loss for the year - - - 1,831 1,831
As at 31 March 2017 574 5,112 265 36,208** 42,159
Called-up share capital Share premium account Capital redemption reserve Profit and loss account Total
Year ended 31 March 2016 £'000 £'000 £'000 £'000 £'000
As at 1 April 2015 570 4,847 261 47,165 52,843
Share issues in the year 8 347 - - 355
Expenses in relation to previous share issues* - (47) - - (47)
Repurchase of shares (4) - 4 (266) (266)
Dividends - - - (6,970) (6,970)
Loss for the year - - - (5,550) (5,550)
As at 31 March 2016 574 5,147 265 34,379** 40,365
* Trail commission payable to financial advisors in the year.
** Of this amount £14,049,000 (2016: £20,949,000) is realised and
distributable.
Balance Sheet
at 31 March 2017
As at As at
31 March 2017 31 March 2016
£'000 £'000
Fixed assets
Investments held at fair value through profit or loss 40,463 37,738
Current assets
Debtors 151 959
Money market securities and other deposits 838 1,773
Cash 790 62
1,779 2,794
Creditors
Amounts falling due within one year (83) (167)
Net current assets 1,696 2,627
Net assets 42,159 40,365
Capital and reserves
Called-up share capital 574 574
Share premium account 5,112 5,147
Capital redemption reserve 265 265
Profit and loss account 36,208 34,379
Equity shareholders' funds 42,159 40,365
Net asset value per share:
Ordinary Share 73.5p 70.4p
Cash Flow Statement
for the year ended 31 March 2017
Year ended Year ended
31 March 2017 31 March 2016
£'000 £'000
Cash flow from operating activities
Investment income received 553 563
Dividends received from investments 10 2,117
Deposit and similar interest received 4 24
Investment management fees paid (915) (1,118)
Secretarial fees paid (157) (157)
Other cash payments (284) (379)
Net cash (outflow)/(inflow from operating activities and returns on investment (789) 1,050
Returns on investment and servicing of finance
Purchase of unquoted investments (189)) (7,256)
Net proceeds on sale of investments 357 717
Net proceeds on deferred consideration 509 7
Net proceeds on liquidation of investments - 58
Net capital inflow/(outflow) from financial investment 677 (6,474)
Equity dividends paid - (6,970)
Management of liquid resources
Movement in money market funds 935 2,627
935 2,627
Financing
Proceeds of fund raising - 355
Expenses of fund raising for previous years (35) (47)
Repurchase of own shares (60) (111)
Net cash (outflow)/inflow/inflow from financing activities (95) 197
Net inflow /(outflow) of cash for the year 728) (9,570)
Reconciliation of net cash flow to movement in net funds
Increase /(decrease) in cash for the year 728 (9,570)
Net cash at start of year 62 9,632
Net cash at end of year 790 62
Analysis of changes in net debt
At 1 April 2016 Cash flow At 31 March 2017
£'000 £'000 £'000
Cash and cash equivalents 62 728 790
Notes to the accounts
1. These are not statutory accounts in accordance with S436 of the
Companies Act 2006. The full audited accounts for the year ended 31 March
2017, which were unmodified and did not contain any statements under S498(2)
of Companies Act 2006 or S498(3) of Companies Act 2006, will be lodged with
the Registrar of Companies. Statutory accounts for the year ended 31 March
2017 including an unmodified audit report and containing no statements under
the Companies Act 2006 will be delivered to the Registrar of Companies in due
course.
2. The disclosures in this announcement have been prepared on the basis
of accounting policies set out in the statutory accounts of the Company for
the year ended 31 March 2017. All investments held by the Company are
classified as 'fair value through the profit and loss'. Unquoted investments
have been valued in accordance with IPEVC guidelines. Quoted investments are
stated at bid prices in accordance with the IPEVC guidelines and Generally
Accepted Accounting Practice.
3. Copies of the Annual Report will be sent to shareholders and will be
available for inspection at the Registered Office of the Company at The Shard,
32 London Bridge Street, London, SE1 9SG and can be accessed on the following
website: www.foresightgroup.eu
4. Net asset value per share
Net asset value per Ordinary Share is based on net assets at the year end of
£42,159,000 (2016: £40,365,000) and on 57,375,499 (2016: 57,375,499)
Ordinary Shares, being the number of Ordinary Shares in issue at that date.
5. Return per share
Year ended 31 March 2017 Year ended 31 March 2016
Ordinary Ordinary Shares
Shares
£'000 £'000
Total return/(loss) after taxation 1,831 (5,550)
Total return/(loss) per share (note a) 3.1p (9.6)p
Revenue (loss)/return from ordinary activities after taxation (270) 1,792
Revenue (loss)/return per share (note b) (0.6)p 3.1p
Capital return/(loss) from ordinary activities after taxation 2,101 (7,342)
Capital return/(loss) per share (note c) 3.7p (12.7)p
Weighted average number of shares in issue in the year* 57,375,499 57,567,321
* The weighted average number of shares in 2016 has been adjusted to take
account of the O and C Share fund merger on 10 August 2015.
Notes:
a) Total return/(loss) per share is total return after taxation divided by
the weighted average number of shares in issue during the year.
b) Revenue (loss)/return per share is revenue return after taxation divided
by the weighted average number of shares in issue during the year.
c) Capital return/(loss) per share is capital return after taxation divided
by the weighted average number of shares in issue during the year.
6. Annual General Meeting
The Company's Annual General Meeting will take place on 28 September 2017 at
10.00am at the offices of Foresight Group in London. Details can be found on
page 66 of the Annual Report and Accounts.
Prior to the formal business of the Annual General Meeting, Foresight Group,
the investment Manager and two investee companies will give presentations
between 10.00am and 10.30am.
7. Income
Year ended 31 March 2017 Year ended 31 March 2016
£'000 £'000
Loan stock interest 368 428
Dividends receivable 11 2,117
Overseas based Open Ended Investment Companies ("OEICS") 4 24
Bank deposits - 1
383 2,570
8. Investments held at fair value through profit or loss
Year ended 31 March 2017 Year ended 31 March 2016
£'000 £'000
Quoted investments 143 282
Unquoted investments 40,320 37,456
40,463 37,738
Quoted Unquoted Total
£'000 £'000 £'000
Book cost at 1 April 2016 827 27,438 28,265
Investment holding (losses)/gains (545) 10,018 9,473
Valuation at 1 April 2016 282 37,456 37,738
Movements in the year:
Purchases at cost - 189 189
Disposal proceeds ** (112) (139) (251)
Realised losses* (264) (6,168) (6,432)
Investment holding gains * 237 8,982 9,219
Valuation at 31 March 2017 143 40,320 40,463
Book cost at 31 March 2017 451 21,320 21,771
Investment holding (losses)/gains (308) 19,000 18,692
Valuation at 31 March 2017 143 40,320 40,463
* Realised losses in the income statement includes £509,000 realised gains in
relation to deferred consideration received during the year, and £18,000
realised loss in relation to deferred consideration which was written off
during the year. Both were recognised within investment holding gains in the
income statement up until the point of receipt / write off.
** Net proceeds in the cash flow statement includes £106,000 received during
the current year which was recognised as a debtor in 2016
9. Transactions with the Manager
Foresight Group, which acts as investment manager to the Company in respect of
its investments earned fees of £915,000 during the year (2016: £1,118,000).
Foresight Fund Managers Limited, Company Secretary, received fees of £157,000
(2016: £157,000) during the year. The annual secretarial fee (which is
payable together with any applicable VAT) is adjusted annually in line with
the UK Retail Prices Index.
At the balance sheet date there was £3,000 due to (2016: £1,000 due from)
Foresight Group and £nil (2016: £nil) due to Foresight Fund Managers
Limited. No amounts have been written off in the year in
respect of debts due to or from related parties.
This announcement is distributed by Nasdaq Corporate Solutions on behalf of
Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for
the content, accuracy and originality of the information contained therein.
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