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Foresight VCT PLC : Annual Financial Report

Released 16:38 10-Apr-2018

Foresight VCT PLC : Annual Financial Report

FORESIGHT VCT PLC
Final Results
31 December 2017
Foresight VCT plc, managed by Foresight Group CI Limited, today announces the final results for the year ended 31 December 2017.
These results were approved by the Board of Directors on 10 April 2018.
The Annual Report will shortly be available in full at www.foresightgroup.eu. All other statutory information can also be found there.

Highlights

Ordinary Shares fund
· Diversified portfolio of 29 actively managed investments.
· Total net assets £140.4 million.
· Net Asset Value per Ordinary Share increased by 6.5% from 83.6p (31 December 2016) to 89.0p including dividends. A 5.0p dividend was paid on 3 April 2017 and a 4.0p dividend was paid on 29 September 2017, resulting in a NAV of 80.0p as at 31 December 2017.
· The portfolio has seen an uplift in valuation of £11.7 million during the year.
· Eight new investments, totalling £17.6 million and two follow-on investments totalling £0.3 million made during the year.
· A total of £39.9 million raised through the issue of shares and the offer closed in March 2017, six weeks after launch.
· In July 2017 the Company successfully sold Blackstar Amplification, Simulity Labs and The Bunker Secure Hosting, realising a total of £16.9 million compared to an investment cost of £8.0 million.
· The Board is pleased to declare an interim dividend for the year ending 31 December 2018 of 5.0p per Ordinary Share, to be paid on 4 May 2018.

Planned Exit Shares fund
· Following the sale of AlwaysON in January 2017 and Industrial Engineering Plastics in July 2017, the Fund has now realised all its investments.
· An interim dividend for the year ended 31 December 2017 of 18.0p per Planned Exit Share was paid on 13 April 2017.
· A second interim dividend of 7.71p per Planned Exit Share was paid on 29 December 2017, resulting in a total return for Shareholders of 82.71p.
· The Planned Exit Shares were removed on 24 January 2018 following a General Meeting held on 23 January 2018.

Infrastructure Shares fund
· Following the sale of all 11 infrastructure assets in the portfolio, the Fund has now realised all its investments.
· An interim dividend of 93.05p per Infrastructure Share was paid on 29 December 2017, resulting in a total return for Shareholders of 115.05p.
· The Infrastructure Shares were removed on 24 January 2018 following a General Meeting held on 23 January 2018.


Chairman's Statement

I am delighted to present the Audited Annual Report for Foresight VCT plc for the year ended 31 December 2017. The past year has seen some very significant development of the Company, including the effective completion of the wind-down of both the Planned Exit and Infrastructure Share classes. During December 2017, I provided shareholders with detailed information on the wind-down, which was approved at a General Meeting. Subsequently both the Planned Exit and Infrastructure Share classes were removed in January this year. As a consequence, whilst some final details relating to these share classes are contained later in this statement, I intend to concentrate on the performance of the Ordinary Shares Fund, which will form the continuing share class of the Company.

ORDINARY SHARES FUND
The Directors, together with the Manager, have an agreed long term strategy for the Fund which includes the following four key objectives:
· Increasing and then maintaining the net assets significantly above £150 million
· Paying an annual dividend to shareholders of at least 5.0p per Ordinary Share and endeavouring to maintain, or increase, NAV per Ordinary Share year on year
· Completing a significant number of new and follow on qualifying investments every year
· Offering a programme of regular share buy backs at a discount in the region of 10% to the prevailing NAV.

For this and future statements, I intend to focus on performance in relation to these key objectives.

NET ASSET VALUE
Following a successful fundraising period at the end of the 2016/17 tax year, the net assets of the Ordinary Shares Fund increased to £140.4 million as at 31 December 2017, from £107.0 million as at 31 December 2016. It remains the Board's belief that to support the other key objectives, it would be beneficial to increase the Fund's net assets over the coming years. With some £61 million of funds currently available for investment, however, it is not the Board's intention to raise more money in the near future.

During the year ended 31 December 2017 the net asset value ("NAV") per Ordinary Share rose by 5.4p, representing an annual increase of 6.5%. After deducting the dividends of 9.0p per share paid during the year, NAV per Ordinary Share as at 31 December 2017 was 80.0p compared with 83.6p as at 31 December 2016.

DIVIDENDS
In line with the objective of paying regular annual dividends of at least 5p per share, an interim dividend of 5.0p per Ordinary Share was paid on 3 April 2017 based on an ex-dividend date of 16 March 2017, with a record date of 17 March 2017.

Following successful sales of several portfolio investments, in particular Simulity Labs in July 2017, a second interim dividend of 4.0p per Ordinary Share was paid on 29 September 2017 based on an ex-dividend date of 14 September 2017, with a record date of 15 September 2017.

The Board is pleased to declare an interim dividend for the year ending 31 December 2018 of 5.0p per Ordinary Share, to be paid on 4 May 2018 based on an ex-dividend date of 19 April 2018, with a record date of 20 April 2018.

The Board notes that the Company has achieved its target of paying an annual dividend of at least 5p per share for each of the past seven years. During this period, however, the total return per Ordinary Share has remained relatively static, rising 5.4% from 207.5p per share on 1 January 2011 to 218.7p per share at 31 December 2017. It is this performance which the Board wishes to improve in future years.

INVESTMENT PERFORMANCE AND PORTFOLIO ACTIVITY
A detailed analysis of the investment portfolio performance over the past year is given in the Manager's Review. At the year end, the Fund held a diversified portfolio of qualifying investments in UK businesses, across a broad range of sectors.

The Board believes it is important for the long term performance of the Fund to identify a regular flow of new investments. The Manager completed eight new investments for the Fund during 2017. These new investments absorbed £17.6 million of funds held for investment and reflects the Manager's success in sourcing attractive growth capital investments in qualifying companies. The Board closely monitors the extent and nature of the pipeline of investment opportunities and anticipates that the Manager will be able to increase the level of new investments during 2018.

In July 2017, the Fund successfully sold three investments, generating total proceeds of £16.9 million compared to an original total investment cost of £8.0 million and a combined book value at date of disposal of £11.6 million. The sale of Simulity Labs is particularly pleasing since, after an investment period of only eight months, it generated a return of almost three times cost, with disposal proceeds of £11.4 million compared to an original investment cost of £4 million. In addition, following our year end, the deferred consideration for Simulity was received in full, generating a further £0.3m.

Since the end of the year, the Fund has sold ICA, generating proceeds of £1.3 million compared to an original investment cost of £0.9 million.

FUNDRAISING
The Board took the opportunity to raise new funds in the Ordinary Shares Fund at the start of 2017. In just six weeks, £39.9 million of new capital was raised from new and existing shareholders. On behalf of the Board and the Manager, I would like to thank shareholders for their support. We believe that this demonstrates the improving investor support for the Ordinary Shares Fund and will assist the Fund to achieve its key objectives.

The Board appreciates that in order for the Fund to be able to achieve its key objectives, the Manager needs to source and complete attractive new qualifying investment opportunities. Over the past two calendar years, new investments have amounted to £22.4 million and at 31 December 2017, the Fund held £62 million of funds available for investment. After allowing for a cash margin to meet annual operating requirements, the Board and the Manager believe that the Fund is well positioned to take advantage of attractive investments being sourced across the UK by the Manager for at least the coming 24 months.

BUYBACKS
During the year, the Company repurchased 2 million Ordinary Shares for cancellation at an average discount of 10.1%. The Board and the Manager consider that the ability to offer to buy back Ordinary Shares at a target discount in the region of 10% is fair to both continuing and selling shareholders, and is an appropriate way to help underpin the discount to NAV at which the Ordinary Shares trade.

MANAGEMENT CHARGES, CO-INVESTMENT AND INCENTIVE ARRANGEMENTS
The annual management fee on the Ordinary Shares Fund is an amount equal to 2.0% of net assets, excluding cash balances above £20 million which are charged at a reduced rate of 1.0%. This has produced an ongoing charges ratio for the year ended 31 December 2017 of 2.2% of net assets, which is among the lower when compared to competitor VCTs.

The Board believes it to be advantageous to align, as far as may be practical, the interests of the Manager with those of shareholders. To that end, new co-investment and incentive arrangements were approved by shareholders on 8 March 2017. These oblige Foresight Group and individual members of their private equity team to co-invest alongside the Ordinary Shares Fund in exchange for entitlement to performance incentive payments, which are subject to the achievement of 'per investment' and 'fund as a whole' performance hurdles. Details of these arrangements can be found in note 14 to the accounts.

Since March 2017, co-investments have totalled £0.3 million alongside the Company's investment of £16.5 million. Currently the 'fund as a whole' threshold has not been achieved and no incentive payment is due.

OUTLOOK
The Board and the Manager intend to continue to build on the progress achieved during 2017. We believe that the investments currently held within the Fund should grow further through 2018 and that the current pipeline will provide worthwhile new investment opportunities in the months ahead. Provided the current level and quality of new investment is maintained, the Board believes that the Fund will be well positioned to meet its key objectives, providing shareholders with regular dividends and maintained capital growth.

PLANNED EXIT SHARES FUND
Following the full realisation of the Fund's assets, a dividend of 7.71p per Planned Exit Share was paid on 29 December 2017 based on an ex-dividend date of 21 December 2017, with a record date of 22 December 2017. This brought the Fund's total return for Shareholders to 82.71p, which represents a decrease of 0.2% on the total return per Planned Exit Share as at 31 December 2016 of 82.9p.

The original objective of the Planned Exit Shares Fund was to provide investors with a return of 110p per share through a combination of dividends and share buybacks by the sixth anniversary of the closure of the original offer, due in June 2016. The final outcome for Planned Exit Shareholders was very far from that anticipated at its inception. The reasons have been summarised in previous annual reports during the life of the Fund. Both the Board and the Manager recognise that the final return represented poor overall performance and regret that this was significantly behind the original target.

INFRASTRUCTURE SHARES FUND
Following the full realisation of the Fund's assets, a dividend of 93.05p per Infrastructure Share was paid on 29 December 2017 based on an ex-dividend date of 21 December 2017, with a record date of 22 December 2017. This brought the Fund's total return for Shareholders to 115.05p, which represents an increase of 10.9% on the total return per Infrastructure Share as at 31 December 2016 of 103.7p. While behind the return objectives contained in the original prospectus, the Board believes the overall performance of the Infrastructure Shares Fund to be reasonable, particularly when viewed against the background of significant changes in both market conditions and VCT qualification rules during the life of the Fund.

This total return is net of a performance incentive fee paid to the Manager in accordance with the arrangements set out in the prospectus. Details of these arrangements can be found in note 14 to the accounts.

BOARD COMPOSITION
The Board regularly reviews its own performance and undertakes succession planning to maintain an appropriate level of independence, experience and skills in order for it to be in a position to discharge its responsibilities. Peter Dicks, a founder member of the Board and a past Chairman, has served the Company with great commitment and distinction throughout this period. He has, however, decided to retire at this year's Annual General Meeting.

After commissioning an independent professional search, the Board was delighted to secure the services of Margaret Littlejohns as a Director of the Company. Margaret, who was appointed a Non-Executive Director of the Company in October last year, is an experienced fund director. She currently sits on the Boards of the Henderson High Income Trust, JPMorgan Mid Cap Investment Trust and UK Commercial Property Trust. Her earlier career was largely with Citigroup followed by a period from 2004 during which, with her husband, she set up and ran a self storage business which she successfully sold in 2016. A short biography of each of the Directors is contained on pages 32 to 34 of the accounts.

ANNUAL GENERAL MEETING
The Company's Annual General Meeting will take place on 22 May 2018 at 2.00pm. I look forward to welcoming you to the Meeting, which will be held at the offices of Foresight Group in London. Details can be found on page 78 of the accounts.

John Gregory
Chairman
Telephone 01296 682751
Email: j.greg@btconnect.com
10 April 2018


Manager's Review

ORDINARY SHARES FUND

Portfolio Summary
As at 31 December 2017 the portfolio of the Ordinary Shares Fund comprised 36 investments with a total cost of £65.6 million and a valuation of £78.0 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 pages 16 to 20 of the accounts.

The main reason for the difference between the cost and value of investments in the TMT sector is Autologic, with a cost of £3.8 million. In July 2017, the sale of Autologic's operating subsidiaries was agreed with Opus Group AB of Sweden. Although healthy returns were achieved in the early years of this investment, since a part disposal in 2012 the performance has been disappointing. Following repayment of some loans during 2017 Autologic is now valued at nil and will be dissolved in due course.

The value of investments in the Industrials & Manufacturing sector is much greater than cost largely due to Aquasium, which is valued at £4.0 million against a cost of £0.3 million and Specac, valued at £3.8 million against a cost of £1.3 million.

NEW INVESTMENTS AND FOLLOW-ON FUNDING
It has been an active year for the Ordinary Shares fund, having completed new investments in eight companies and two follow-on commitments, totalling £17.9 million. During the second half of the year, the fund added three new portfolio companies: 200 Degrees, an artisan coffee chain and roasting business; Nano Interactive, a leading advertising technology business and Powerlinks Media, a realtime trading platform for advertisements. These new investments are in addition to those reported at the half year: Poundshop.com; Ollie Quinn; Fresh Relevance; Cinelabs and Mowgli Street Food. A summary on each is provided on the next page.

As follow-on investments, in July 2017 a further tranche of £224,723 was invested in molecular diagnostics business Biofortuna as part of a £900,000 funding round alongside Foresight 4 VCT plc and co-investors to further develop its blood typing products. In October 2017, the Fund committed £34,159 of additional growth capital to Idio as part of a £543,000 equity raise from existing investors.

POUNDSHOP.COM
The first investment of 2017 was a £1.7 million growth capital investment in Poundshop.com. Launched in February 2014, Poundshop.com is an online-only single price retailer, founded and chaired by Steve Smith, the founder of Poundland. Since investment, sales have increased, the company has launched a new website and moved to a new, larger warehouse which has enabled it to increase the number of items stocked.

OLLIE QUINN
In March 2017, a £3.0 million investment was completed in Ollie Quinn, a branded retailer of prescription glasses, sunglasses and non-prescription polarised sunglasses. Following a period of rapid growth, follow-on funding of £650k was provided in January 2018 to support the company's working capital and current site optimisation strategy. Due to slower than projected revenue growth and an earlier than forecast follow-on funding requirement, a 25% provision has been made against the cost of this investment at 31 December 2017.

FRESH RELEVANCE
The third investment, of £2.1 million, was completed in Fresh Relevance, a mail marketing and web personalisation platform, in March 2017. Based in Southampton, Fresh Relevance is a high growth, marketing technology business, providing online retailers with marketing tools including triggered emails and web personalisation. The capital will be used to fund increased sales resource, launch a US office and introduce a higher level of service and consultancy, all of which should help increase average order values. Progress to date is positive.

MOWGLI STREET FOOD
The Fund also invested £1.6 million in Mowgli, a fast-casual chain of restaurants founded in 2014, serving Indian street food. Since investment, Mowgli has traded well, opening a new site in Birmingham, and is planning a fifth branch for Q1 2018. The modern focus on healthy, light, flavoursome dishes differentiates Mowgli from traditional Indian restaurants, as does its provision of a wide range of gluten-free, vegetarian and vegan dishes. This is the first investment alongside the Foresight Regional Investment LP, a £40 million institutional private equity fund. The LP funded the replacement capital element of the transaction, which the Fund, under the rules changes introduced in 2015, was unable to provide.

CINELABS
The Fund has invested £2.2 million in Cinelabs, which is the UK's only full-service film laboratory, offering film processing, scanning, distribution, digitisation, restoration and archive management to clients in the media and entertainment industries such as the BFI, ITV and FIFA. Sales increased during 2017, reflecting good growth of the underlying client base, and the pipeline for 2018 looks promising.

NANO INTERACTIVE
In October 2017, the Fund invested £3.4 million of growth capital in Nano Interactive. The company, founded in 2014 by two experienced advertising technology executives, is engaged in search retargeting; a form of online advertising where relevant adverts are shown to users based on key words from their recent search history. The company uses its proprietary data management platform to optimise search campaigns for its global customer base. The funding will support plans to expand internationally and invest in sales, marketing and product development, as well as the roll-out of its INSIST platform.

200 DEGREES
In November 2017, £0.9 million was invested in 200 Degrees Holdings to support its growth plans. 200 Degrees was initially established as a supplier of coffee beans and machines. The company has since evolved into a wholesale business and coffee chain, with a Barista School and a total of six coffee shops across five cities. The investment will support the management team in opening new stores, while building the company's wholesale business. Since investment, performance has been driven by strong trading at a number of stores and operational improvements at newer sites.

POWERLINKS MEDIA
The final investment of 2017 was a £2.7 million investment in Powerlinks Media, an advertising technology company, in December 2017. Unlike traditional digital adverts, PowerLinks ads are visually styled to align with the surrounding webpage or mobile app, delivering a non-intrusive, "native" user experience. The investment follows a year of success and expansion, which has seen PowerLinks' market surpass 4,000 advertising campaigns from 140 connected advertisers, driving revenue growth. The investment is intended to accelerate PowerLinks' expansion in the US, with planned additions across the sales, client services and technology teams.

PIPELINE
Foresight Group continues to work hard to develop and deliver attractive investment opportunities for the Company. Foresight Group's private equity team has strong connections within the community of businesses, advisors and professional service firms, which have been further bolstered through the recent recruitment of Matthew Evans-Young, previously at Synova Capital and KPMG, as an Origination Manager. Matthew will lead on the establishment of a dedicated direct origination practice within Foresight Group's private equity team. By proactively contacting target companies, this initiative aims to deliver exclusive access to new deals. Foresight Group's dedicated direct origination resource is already having a positive impact on the level and consistency of the teams' origination efforts with an increase in off market opportunities being seen. Whilst this is a long-term investment and off market opportunities generally take longer to convert, it is encouraging to see this strategy begin to produce results.

Foresight Group is firmly established as a key player in the investment range of £1 million to £5 million and is acknowledged for its appetite to transact and support ambitious SME management teams. 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.

As at 31 December 2017, the Ordinary Shares Fund had £61.9 million in cash and money market funds. This will be utilised for new and follow-on investments, as well as buybacks and ongoing running expenses.

REALISATIONS
During the year to 31 December 2017, the Fund generated total proceeds of £18.2 million, principally through the sale of Simulity Labs, Blackstar Amplification and The Bunker Secure Hosting, which realised £16.9 million compared to a cost of £8.0 million.

Loan repayments contributed a total of £547,748 from Autologic Diagnostics Group and the final loan repayment of £166,667 made by Aquasium Technology. The Fund continues to hold an equity position in Aquasium, which manufactures, services and refurbishes electron beam welding equipment and vacuum furnaces. Proceeds were also received from the sale of the Fund's remaining shares in AIM-listed ZOO Digital, which supplies software and services for authored content and subtitling to media businesses and post-production firms. Deferred consideration was also received from the sales of O-Gen Acme Trek and Trilogy in 2016, and Alaric Systems in 2013.

During the year, the Ordinary Shares fund realised losses amounting to £2.3 million, which had already been provided for in full, following the liquidation of Abacuswood and The Skills Group, and the disposal of AlwaysOn Group.

SIMULITY
In July 2017 the Manager successfully completed the sale of Simulity Labs to ARM, the world's leading semiconductor IP company. The transaction generated proceeds of £11.7 million (including deferred consideration) from an initial £4.0 million investment just eight months previously. Established in 2009, Simulity provides embedded communications software and related server systems for both SIM cards and embedded SIMs ('eSIMs'). Since investment in October 2016, Simulity successfully transitioned to a software licensing business model, launched its eSIM technology, increased valuable recurring revenue streams, improved gross margins materially and grew its international sales presence, making the company an attractive acquisition target.

BLACKSTAR
The Fund originally invested in Blackstar Amplification, an award-winning Northampton-based designer and manufacturer of innovative guitar amplifiers, in 2012. The Fund provided growth capital and helped restructure the company's shareholder base and strengthened its management team. Blackstar more than doubled turnover over four years, expanded internationally, establishing itself as the number two amplifier brand in the UK and USA and broadened its product catalogue. The sale was implemented by a management buyout, supported by the company's manufacturing and distribution partners, and nearly doubled the Fund's original investment.

THE BUNKER
The Fund acquired its investment in The Bunker from Foresight 2 VCT plc as part of the merger in December 2015. Having first invested in May 2006, the Foresight VCTs have been longstanding shareholders 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 Foresight VCTs was used to materially scale The Bunker's data storage facilities. The business experienced a compound annual growth rate of over 14% of recurring revenues for the past three years with annual revenues growing to more than £9 million compared to £1.8 million at investment. The Bunker was acquired by Palatine Private Equity, generating an overall return of 2.44 times over the life of the investment.

ICA
Post-year end, in February 2018, the Fund realised its position in ICA Digital ("ICA"), a managed print services business based in Surrey, realising an overall 2.4 times return, through a trade sale to ASL Group. During the course of the investment, Foresight Group supported management to execute a focused sales strategy, in particular developing high-margin contracted service revenues.

The Manager continues to engage with a range of potential acquirers of several portfolio companies, with demand for these high growth businesses demonstrated by both private equity and trade buyers.

DISPOSALS IN THE YEAR ENDED 31 DECEMBER 2017

Company Detail Original Cost/ Take-On Value

(£)
Proceeds

(£)
Realised (Loss)/Gain

(£)
Valuation at 31 December 2016

(£)
Abacuswood Limited
AlwaysON Group Limited
Dissolved
Full disposal
478,684

1,473,271
-

-
(478,684)^

(1,473,271)^
-

-
Aquasium Technology Limited Loan repayment 166,667 166,667 - 166,667
Autologic Diagnostics Loan repayment 547,748 547,748 - 547,748
Group Limited          
Blackstar Amplification Full disposal 2,500,000 3,857,000 1,357,000 3,822,050
Holdings Limited          
Simulity Labs Limited Full disposal 4,000,000 11,410,920* 7,410,920 4,000,000
The Bunker Secure Hosting Full disposal 1,537,348 1,680,684 143,336 1,656,835
Limited          
The Skills Group Limited (formerly AtFutsal) Dissolved 391,301 563 (390,738)^ -
ZOO Digital Group plc Full disposal 40,307 57,675 17,368 53,742
Total disposals     11,135,326 17,721,257 6,585,931 10,247,042

In addition to the above, deferred consideration of £199,106 was received by the Fund from the sale of O-Gen Acme Trek Limited, £24,003 was received from the sale of Trilogy and £280,499 was received from the sale of Alaric Systems.
^This loss refers to the transfer on disposal between unrealised and realised reserves and has no impact on NAV in the current year.
* Does not reflect an additional £257,846 deferred consideration received in February 2018.

POST YEAR END DISPOSALS

    Original Cost/ Take-On Value

 
Proceeds Realised Gain/(Loss) Valuation at 31 December 2016
Company Detail (£) (£) (£) (£)
ICA Group Limited Full disposal 885,232 1,290,701* 405,469 880,894

*Including deferred consideration due in April 2018.

KEY PORTFOLIO DEVELOPMENTS

The Ordinary Shares Fund has benefitted from strong performance of the underlying portfolio with a total net valuation change of £12.0 million, driven primarily by the agreed sale of Simulity Labs at a value £7.7 million above cost, as detailed above. The valuation of the Company's largest investment, Datapath, fell by £1.6 million but remains significantly above book cost. The reduction is due to ongoing investment in the business, as detailed further on page 16 of the accounts, which we believe will support further a long-term increase in value. Material changes in valuation, defined as an increase or decrease of £1 million or more since 31 December 2016, are detailed in the table below. Where these companies do not appear in the Top Ten Investments section of the report, an update on underlying developments that have driven changes in value is provided below.

Company Valuation Methodology Valuation Change (£)
Simulity Labs Limited Sold 7,410,920
Ixaris Systems Limited Discounted revenue multiple 2,234,435
Aquasium Technology Limited Discounted earnings multiple 1,980,168
Thermotech Solutions Limited Discounted earnings multiple 1,602,958
Aerospace Tooling Holdings Limited Discounted earnings multiple 1,069,807
Procam Television Holdings Limited Discounted earnings multiple (1,635,609)
Datapath Group Limited Discounted earnings multiple (1,628,430)
CoGen Limited Discounted cash flow (1,087,383)

THERMOTECH SOLUTIONS
Thermotech, which designs, installs and maintains customised air conditioning and fire sprinkler systems, has performed well in the year, with strong sales and an improvement in EBITDA. This has been attributable to good performance across the Fire and Mechanical Services divisions and the synergies that the company is now benefitting from following the acquisition of Oakwood in 2016. The company has continued to expand its portfolio of retail clients and won a number of sizeable new contracts.

AEROSPACE TOOLING
Aerospace Tooling is an engineering company specialising in the refurbishment of high-value aerospace and industrial gas turbine components. The business has made a significant recovery, underlined by supportive trade from industrial customers. Improvements in operational performance are beginning to deliver favourable results.

COGEN
CoGen develops, builds, owns and operates waste to energy and combined heat and power ('CHP') plants. During the year, the company sold its 20% stake in Ince Park for a proposed consideration of £1.75m, however, construction problems persist at Birmingham Bio Power plant. The plant continued to experience downtime, reducing electrical output, and the project company is now preparing for an arbitration process with the construction contractor. This, together with increased costs on some projects has led to a reduced valuation.

PROCAM TELEVISION
Procam Television is a leading broadcast hire company, supplying equipment and crew for location TV production. The reduction in valuation reflects a disappointing 2017 following a strong performance in the prior year. Growth from Procam Projects and True Lens Services failed to offset a softer year in some other divisions. This, together with a significant investment in staff and equipment and financing obligations, resulted in the business raising additional funding in December 2017.

OUTLOOK
While there remains a significant amount of uncertainty as to how the UK will be affected by its exit from the European Union, Foresight Group continues to see a strong pipeline of interesting investment opportunities and expressions of interest from potential acquirers of portfolio companies.

In the Autumn Budget 2017 the Government announced a plan to unlock over £20 billion of patient capital investment in innovative companies with the opportunity for growth. The Government's response to the Patient Capital Review recognises the positive role that VCTs play in providing long term patient capital. The proposed adjustments to the VCT scheme rules fall within the Fund's existing investment strategy.

Foresight Group will continue to monitor and adapt to market and regulatory changes to ensure the Company and its portfolio is well-placed to deliver returns to its investors.

PLANNED EXIT SHARES FUND

Portfolio Summary
Following the sale of the two final holdings, alwaysOn in January 2017 and Industrial Engineering Plastics in July 2017, the Fund realised all of its portfolio investments. The Board completed the transfer of the Trilogy Entitlements, the outstanding entitlement to consideration held in escrow in respect of the sale of holdings in Trilogy Communications Holdings Limited, to the Ordinary Shares fund in exchange for £265,712 on 6 December 2017. Deferred consideration of £57,329 was also received in relation to the sale of Trilogy in 2016. This resulted in the assets of the Planned Exit Shares fund being fully realised. The Board paid a dividend of 7.71p per Planned Exit Share to shareholders on the register as at 22 December
2017. Ignoring tax reliefs, this dividend payment brought the total return on a Planned Exit Share to 82.71p.

Following approval of the requisite resolutions at the general meetings and separate class meetings of the Company held on 23 January 2018 and 24 January 2018 respectively, the Board of the Company completed the removal of the Planned Exit Shares.

ALWAYSON
alwaysON provides data backup services, connectivity and Microsoft's Skype for Business collaboration software to SMEs and larger enterprises. Given the company's cash constraints, a decision was made to seek an exit rather than fund further losses. Despite challenging trading conditions the sale was completed in January 2017, generating proceeds of £2.0 million against an investment cost of £1.8 million.

INDUSTRIAL ENGINEERING PLASTICS
Industrial Engineering Plastics ("IEP") is a plastics distributor and fabricator, supplying a wide range of industries with ventilation and pipe fittings, plastic welding rods, hygienic wall cladding, plastic tanks and sheets. In light of some of the structural challenges within IEP's markets, the Manager pursued multiple conversations with potential trade acquirers. As a result, two acquisition offers were received early in 2017 before an offer with one of IEP's competitors was agreed at a price marginally below the most recent valuation, and a loss against the original investment of £1.6 million.

DISPOSALS IN THE YEAR ENDED 31 DECEMBER 2017

 

 

 
  Original Cost/ Take-On Value Proceeds Realised Gain/(Loss) Valuation at 31 December 2016
Company Detail (£) (£) (£) (£)
AlwaysON Group Limited Full disposal 1,839,970 2,032,608 192,638 2,032,608
Industrial Engineering Plastics Limited Full disposal 1,556,416 492,550 (1,063,866) 508,150
Total disposals   3,396,386 2,525,158 (871,228) 2,540,758

In addition to the above, deferred consideration of £323,041 was received by the Fund from the sale of Trilogy in the year ended 31 December 2016.

INFRASTRUCTURE SHARES FUND

Portfolio Summary
Due to changes in VCT regulations, the Fund could no longer pursue its investment strategy of investing in infrastructure assets, including
secondary Private Finance Initiatives ("PFI") assets and solar infrastructure. As such, the Board notified shareholders of its intention to dispose of the entire Infrastructure shares portfolio on 18 July 2017, shortly after the fifth anniversary of the Fund's closing.

Accordingly, a third party valuation was undertaken and we conducted a marketing process for the 11 assets held in the Infrastructure Shares Fund. After offering the assets on the open market, the sale of all investments was achieved, realising £28.1 million against a cost of £22.1 million and a valuation at 30 June 2017 of £24.8 million. Five of the non-solar infrastructure investment assets were sold to funds managed by Equitix Investment Management Limited. The three solar investment assets and the remaining three non-solar infrastructure investment assets were sold to other Foresight funds, on the basis of the independent valuation.

On 15 December 2017, following the realisation of all the remaining investments, the Board declared a final dividend of 93.05p per Infrastructure Share. This was paid on the 29 December 2017, bringing the total return per Infrastructure Share to 115.05p, after which no value remained in the Infrastructure Shares.

Following approval of the requisite resolutions at the general meetings and separate class meetings of the Company held on 23 January 2018 and 24 January 2018 respectively, the Board of the Company completed the removal of the Infrastructure Shares.

DISPOSALS IN THE YEAR ENDED 31 DECEMBER 2017

Company Detail Original Cost/
Take-On Value
(£)
Proceeds
(£)
Realised Gain/(Loss)
(£)
Valuation at 31 December 2016
(£)
Criterion Healthcare Holdings Limited Full disposal 4,005,616 5,705,000 1,699,384 4,878,473
FS Hayford Farm Limited Full disposal 3,660,070 4,613,371 953,301 3,994,205
FS Ford Farm Limited Full disposal 3,952,524 4,052,195 99,671 3,691,083
Drumglass HoldCo Limited Full disposal 2,526,475 3,064,632 538,157 3,025,435
FS Tope Limited Full disposal 2,561,418 2,812,353 250,935 2,793,924
Stirling Gateway HC Limited Full disposal 2,069,978 3,322,000 1,252,022 2,244,070
Wharfedale SPV (Holdings) Limited Full disposal 1,314,923 1,537,278 222,355 1,395,225
Lochgilphead HoldCo Limited Full disposal 493,186 1,416,772 923,586 637,969
Staffordshire HoldCo Limited Full disposal 1,041,077 667,269 (373,808) 454,860
Sandwell HoldCo Limited Full disposal 282,646 619,525 336,879 216,332
Stobhill HoldCo Limited Full disposal 231,987 337,974 105,987 193,738
Total disposals   22,139,900 28,148,369 6,008,469 23,525,314

Russell Healey

Head of Private Equity
Foresight Group
10 April 2018

Unaudited Non-Statutory Analysis of the Share Classes

Income Statements
for the year ended 31 December 2017

  Ordinary Shares Fund Planned Exit Shares Fund Infrastructure Shares Fund
  Revenue Capital Total Revenue Capital Total Revenue Capital Total
  £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Realised gains/(losses) on investments - 7,090 7,090 - (548) (548) - 6,008 6,008
Investment holding gains/(losses) - 4,886 4,886 - 606 606 - (1,385) (1,385)
Income 614 - 614 4 - 4 952 - 952
Investment management fees (654) (1,963) (2,617) (7) (22) (29) (68) (1,066)* (1,134)
Other expenses (521) - (521) (42) - (42) (636) - (636)
(Loss)/return on ordinary activities before taxation (561) 10,013 9,452 (45) 36 (9) 248 3,557 3,805
Taxation - - - - - - - - -
(Loss)/return on ordinary activities after taxation (561) 10,013 9,452 (45) 36 (9) 248 3,557 3,805
Return per share (0.3)p 6.0p 5.7p (0.4)p 0.3p (0.1)p 0.8p 10.9p 11.7p

*Includes £863,000 paid performance incentive fee.

Balance Sheets
at 31 December 2017

  Ordinary
Shares Fund
Planned Exit
Shares Fund
Infrastructure
Shares Fund
  £'000 £'000 £'000
Fixed assets    
Investments held at fair value through profit or loss  77,963 - -
    
Current assets    
Debtors 887 - -
Money market securities and other deposits 60,482 - -
Cash 1,388 21 108
  62,757 21 108
Creditors    
Amounts falling due within one year (291) (21) (108)
Net current assets 62,466 - -
Net assets 140,429 - -
    
Capital and reserves    
Called-up share capital 1,756 114 324
Share premium account 97,687 - -
Capital redemption reserve 451 3 1
Distributable reserve 26,505 815 (4,151)
Capital reserve 1,357 (932) 3,826
Revaluation reserve 12,673 - -
Equity shareholders' funds 140,429 - -
Number of shares in issue 175,601,977 11,404,314 32,495,246
Net asset value per share 80.0p 0.0p 0.0p

Reconciliations of Movements in Shareholders' Funds
for the year ended 31 December 2017

 

Ordinary Shares Fund
Called-up share capital £'000 Share premium account
£'000
Capital redemption reserve £'000 Distributable
reserve
£'000
Capital reserve
£'000
Revaluation reserve
£'000
Total
£'000
As at 1 January 2017 1,280 96,071 431 5,247 (3,770) 7,787 107,046
Share issues in the year 496 42,110 - - - - 42,606
Expenses in relation to share issues* - (1,718) - - - - (1,718)
Repurchase of shares (20) - 20 (1,476) - - (1,476)
Cancellation of share premium - (38,776) - 38,776 - - -
Realised gains on disposal of investments - - - - 7,090 - 7,090
Investment holding gains - - - - - 4,886 4,886
Dividends paid - - - (15,481) - - (15,481)
Management fees charged to capital - - - - (1,963) - (1,963)
Revenue loss for the year - - - (561) - - (561)
As at 31 December 2017 1,756 97,687 451 26,505 1,357 12,673 140,429

*Expenses in relation to share issues include advisor fees (£686,000) and promoters fees (£958,000) for the 2017 fund raise and trail commission in relation to prior year fund raises (£74,000).

Planned Exit Shares Fund Called-up
share
capital

£'000
Share premium account
£'000
Capital redemption reserve £'000 Distributable
reserve
£'000
Capital reserve
£'000
Revaluation reserve
£'000
Total
£'000
As at 1 January 2017 114 2,095 3 1,705 (362) (606) 2,949
Trail commission in relation to prior year share issues - (8) - - - - (8)
Cancellation of share premium - (2,087) - 2,087 - - -
Realised losses on disposal of investments - - - - (548) - (548)
Investment holding gains - - - - - 606 606
Dividends paid - - - (2,932) -   -  (2,932)
Management fees charged to capital - - - - (22) - (22)
Revenue loss for the year - - - (45) - - (45)
As at 31 December 2017 114 - 3 815 (932) - -
  Called-up Share Capital        
  share premium redemption Distributable Capital Revaluation  
  capital account reserve reserve reserve reserve Total
Infrastructure Shares Fund £'000 £'000 £'000 £'000 £'000   £'000  £'000
As at 1 January 2017 324 14,375 1 11,591 (1,116)   1,385  26,560
Trail commission in relation to prior year share issues - (33) - (95) -   -  (128)
Cancellation of share premium - (14,342) - 14,342 -   -  -
Realised gains on disposal of investments - - - - 6,008   -  6,008
Investment holding losses - - - - -   (1,385)  (1,385)
Dividends paid - - - (30,237) -   -  (30,237)
Management fees charged to capital - - - - (1,066)   -  (1,066)
Revenue return for the year - - - 248 -   -  248
As at 31 December 2017 324 - 1 (4,151) 3,826   -    -


Audited Income Statement
for the year ended 31 December 2017

  Year ended
31 December 2017
Year ended

31 December 2016
  Revenue Capital Total Revenue Capital Total
  £'000 £'000 £'000 £'000 £'000 £'000
Realised gains/(losses) on investments - 12,550 12,550 - (3,262) (3,262)
Investment holding gains - 4,107 4,107 - 8,279 8,279
Income 1,570 - 1,570 2,916 - 2,916
Investment management fees (729) (3,051)* (3,780) (534) (1,601) (2,135)
Other expenses (1,199) - (1,199) (596) - (596)
(Loss)/return on ordinary activities before taxation (358) 13,606 13,248 1,786 3,416 5,202
Taxation - - - (220) 220 -
(Loss)/return on ordinary activities after taxation (358) 13,606 13,248 1,566 3,636 5,202
(Loss)/return per share:            
Ordinary Share (0.3)p 6.0p 5.7p 0.4p 2.8p 3.2p
Planned Exit Share (0.4)p 0.3p (0.1)p 0.3p 2.9p 3.2p
Infrastructure Share 0.8p 10.9p 11.7p 3.4p 0.9p 4.3p

*Includes £863,000 paid performance incentive fee relating to the Infrastructure Shares Fund.

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 comprehensive income has been presented.


Audited Reconciliation of Movements in Shareholders' Funds
 
Year ended 31 December 2017 Called-up
share capital

£'000
Share premium account

£'000
Capital redemption reserve £'000 Distributable

reserve

£'000
Capital reserve

£'000
Revaluation reserve

£'000
Total

£'000
As at 1 January 2017 1,718 112,541 435 18,543 (5,248) 8,566 136,555
Share issues in the year 496 42,110 - - - - 42,606
Expenses in relation to share issues* - (1,759) - (95) - - (1,854)
Repurchase of shares (20) - 20 (1,476) - - (1,476)
Cancellation of share premium - (55,205) - 55,205 - - -
Realised gains on disposal of investments - - - - 12,550 - 12,550
Investment holding gains - - - - - 4,107 4,107
Dividends paid - - - (48,650) - - (48,650)
Management fees charged to capital - - - - (3,051) - (3,051)
Revenue loss for the year - - - (358) - - (358)
As at 31 December 2017 2,194 97,687 455 23,169** 4,251** 12,673 140,429
* Expenses in relation to share issues include advisor fees (£686,000) and promoters fees (£958,000) for the 2017 Ordinary Shares Fund raise and trail commission in relation to prior year fund raises (£115,000).
** Total distributable reserves at 31 December 2017 total £27,420,000 (2016: £13,295,000).
Year ended 31 December 2016 Called-up
share capital

£'000
Share premium account

£'000
Capital redemption reserve £'000 Distributable

reserve

£'000
Capital reserve

£'000
Revaluation reserve

£'000
Total

£'000
As at 1 January 2016 1,305 77,016 421 31,654 (605) 287 110,078
Share issues in the year 427 37,312 - - - - 37,739
Expenses in relation to share issues - (1,787) - - - - (1,787)
Repurchase of shares (14) - 14 (991) - - (991)
Realised losses on disposal of investments - - - - (3,262) - (3,262)
Investment holding gains - - - - - 8,279 8,279
Dividends - - - (13,686) - - (13,686)
Management fees charged to capital - - - - (1,601) - (1,601)
Tax credited to capital - - - - 220 - 220
Revenue return for the year - - - 1,566 - - 1,566
As at 31 December 2016 1,718 112,541 435 18,543 (5,248) 8,566 136,555
 

Audited Balance Sheet
at 31 December 2017

  Registered Number: 03421340

  As at               As at

  31 December  31 December

  2017               2016

  £'000               £'000
Fixed assets    
Investments held at fair value through profit or loss  77,963 92,217
Current assets    
Debtors  887 2,193
Money market securities and other deposits 60,482 30,976
Cash 1,517 11,361
  62,886 44,530
Creditors    
Amounts falling due within one year  (420) (192)
Net current assets 62,466 44,338
Net assets 140,429 136,555
Capital and reserves    
Called-up share capital  2,194 1,718
Share premium account 97,687 112,541
Capital redemption reserve 455 435
Distributable reserve 23,169 18,543
Capital reserve 4,251 (5,248)
Revaluation reserve 12,673 8,566
Equity Shareholders' funds 140,429 136,555
Net asset value per share:    
Ordinary Share  80.0p 83.6p
Planned Exit Share  0.0p 25.9p
Infrastructure Share  0.0p 81.7p

The financial statements on pages 56 to 77 of the Annual Report and Accounts were approved by the Board of Directors and authorised for issue on 10 April 2018 and were signed on its behalf by:

John Gregory
Chairman


Audited Cash Flow Statement
for the year ended 31 December 2017

  Year  Year

  ended  ended

    31 December  31 December

  2017  2016

  £'000  £'000
Cash flow from operating activities    
Investment income received 2,457 2,768
Deposit and similar interest received 113 98
Investment management fees paid (3,797) (2,118)
Secretarial fees paid (113) (110)
Other cash payments (902) (848)
Net cash outflow from operating activities (2,242) (210)
Returns on investing activities    
Purchase of investments (17,869) (4,877)
Net proceeds on sale of investments 48,394 9,287
Net proceeds on deferred consideration 561 64
Return of cash held on behalf of investee companies - (548)
Net cash inflow from investing activities 31,086 3,926
Financing    
Proceeds of fund raising 39,384 36,028
Expenses of fund raising (1,247) (886)
Repurchase of own shares (1,336) (1,329)
Equity dividends paid (45,983) (12,961)
Movement in money market funds (29,506) (16,088)
Net cash (outflow)/inflow from financing activities (38,688) 4,764
Net (outflow)/inflow of cash in the year (9,844) 8,480
Reconciliation of net cash flow to movement in net funds    
(Decrease)/increase in cash and cash equivalents for the year (9,844) 8,480
Net cash and cash equivalents at start of year 11,361 2,881
Net cash and cash equivalents at end of year 1,517 11,361

Analysis of changes in net debt At 1 January 2017 Cashflow At 31 December 2017
  £'000 £'000 £'000
Cash and cash equivalents 11,361 (9,844) 1,517


Notes

1.     These are not statutory accounts in accordance with S436 of the Companies Act 2006. The full audited accounts for the year ended 31 December 2017, which were unqualified and did not contain statements under S498(2) of the Companies Act 2006 or S498(3) of the Companies Act 2006, will be lodged with the Registrar of Companies. Statutory accounts for the year ended 31 December 2017 including an unqualified audit report and containing no statements under the Companies Act 2006 will be delivered to the Registrar of Companies in due course. 

2.    The audited Annual Financial Report has been prepared on the basis of accounting policies set out in the statutory accounts of the Company for the year ended 31 December 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
 

The net asset value per share is based on net assets at the end of the year and on the number of shares in issue at that date.

  31 December 2017   31 December 2016  
Ordinary Planned Infrastructure Ordinary Planned Infrastructure
Shares Exit Shares Shares Shares Exit Shares Shares
Fund Fund Fund Fund Fund Fund
Net assets £140,429,000 £nil £nil £107,046,000 £2,949,000 £26,560,000
No. of shares at year end 175,601,977 11,404,314 32,495,246 127,985,288 11,404,314 32,495,246
Net asset value per share 80.0p 0.0p 0.0p 83.6p 25.9p 81.7p

 

5.    Return per share

  Year ended 31 December 2017 Year ended 31 December 2016
  Ordinary Share Planned
Exit Share
Infrastructure Share Ordinary Share Planned Exit Share Infrastructure Share
  £'000 £'000 £'000 £'000 £'000 £'000
Total return after taxation 9,452 (9) 3,805 3,442 367 1,393
Total return per share (note a) 5.7p (0.1)p 11.7p 3.2p 3.2p 4.3p
Revenue return from ordinary activities after taxation (561) (45) 248 423 32 1,111
Revenue return per share (note b) (0.3)p (0.4)p 0.8p 0.4p 0.3p 3.4p
Capital return from ordinary shares after taxation 10,013 36 3,557 3,019 335 282
Capital return per share (note c) 6.0p 0.3p 10.9p 2.8p 2.9p 0.9p
Weighted average number of shares in issue in the year 165,748,167 11,404,314 32,495,246 109,561,757 11,488,663 32,502,653

Notes:
a) Total return per share is total return after taxation divided by the weighted average number of shares in issue during the year.
b) Revenue return per share is revenue return after taxation divided by the weighted average number of shares in issue during the year.
c) Capital return 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 Annual General Meeting will be held at 2.00pm on 22 May 2018 at the offices of Foresight Group LLP, The Shard, 32 London Bridge Street, London, SE1 9SG.


7.    Income

                                                                                                                                                                          Year ended       Year ended

                                                                                                                                                                        31 December   31 December

  2017                 2016

  £'000               £'000
Loan stock interest 820 2,133
Dividends receivable 637 685
Overseas based Open Ended Investments Companies ("OEICs") 113 98
  1,570 2,916

8.    Investments

Company   2017

£'000
2016

£'000
Quoted investments   - 54
Unquoted investments   77,963 92,163
    77,963 92,217

  Quoted Unquoted Total
Company £'000 £'000 £'000
Book cost as at 1 January 2017 40 84,373 84,413
Investment holding gains 14 7,790 7,804
Valuation at 1 January 2017 54 92,163 92,217
Movements in the year:      
Purchases at cost - 17,869 17,869
Disposal proceeds (57) (48,337) (48,394)
Realised gains* 17 11,706 11,723
Investment holding (losses)/gains* (14) 4,562 4,548
Valuation at 31 December 2017 - 77,963 77,963
Book cost at 31 December 2017 - 65,611 65,611
Investment holding gains - 12,352 12,352
Valuation at 31 December 2017 - 77,963 77,963
*Refer to Ordinary Shares Fund and Planned Exit Shares Fund footnotes for detail.

 
   
  Quoted Unquoted Total
Ordinary Shares Fund £'000 £'000 £'000
Book cost as at 1 January 2017 40 58,837 58,877
Investment holding gains 14 7,260 7,274
Valuation at 1 January 2017 54 66,097 66,151
Movements in the year:      
Purchases at cost - 17,869 17,869
Disposal proceeds (57) (17,664) (17,721)
Realised gains* 17 6,569 6,586
Investment holding (losses)/gains** (14) 5,092 5,078
Valuation at 31 December 2017 - 77,963 77,963
Book cost at 31 December 2017 - 65,611 65,611
Investment holding gains - 12,352 12,352
Valuation at 31 December 2017 - 77,963 77,963

*Deferred consideration of £504,000 was received by the Ordinary Shares fund in the year and is included within realised gains in the income statement.

** The above receipt was offset by a decrease in the deferred consideration debtor of £450,000. A further £258,000 of deferred consideration was recognised in the year and is included in investment holding gains in the income statement.

  Quoted

Planned Exit Shares Fund                                                                                                           £'000
Unquoted

£'000
Total

£'000
Book cost as at 1 January 2017                                                                                                                          - 3,396 3,396
Investment holding losses                                                                                                                                        - (855) (855)
Valuation at 1 January 2017                                                                                                                                 - 2,541 2,541
Movements in the year:    
Disposal proceeds                                                                                                                                                             - (2,525) (2,525)
Realised losses*                                                                                                                                                                 - (871) (871)
Investment holding gains**                                                                                                                                       - 855 855
Valuation at 31 December 2017                                                                                                                         - - -
Book cost at 31 December 2017                                                                                                                         - - -
Investment holding gains                                                                                                                                           - - -
Valuation at 31 December 2017                                                                                                                        - - -

*Deferred consideration of £323,000 was received by the Planned Exit Shares fund in the year and is included within realised losses in the income statement.

** The above receipt was offset by a decrease in the deferred consideration debtor of £249,000.

  Quoted

Infrastructure Shares Fund                                                                                                           £'000
Unquoted

£'000
Total

£'000
Book cost as at 1 January 2017                                                                                                                           - 22,140 22,140
Investment holding gains                                                                                                                                           - 1,385 1,385
Valuation at 1 January 2017                                                                                                                                  - 23,525 23,525
Movements in the year:    
Disposal proceeds                                                                                                                                                             - (28,148) (28,148)
Realised gains                                                                                                                                                                     - 6,008 6,008
Investment holding losses                                                                                                                                         - (1,385) (1,385)
Valuation at 31 December 2017                                                                                                                       - - -
Book cost at 31 December 2017                                                                                                                         - - -
Investment holding gains                                                                                                                                           - - -
Valuation at 31 December 2017                                                                                                                       - - -

9.    Related party transactions

No Director has an interest in any contract to which the Company is a party.

10.  Transactions with the manager

Foresight Group CI Limited, which acts as manager to the Company in respect of its investments, earned fees of £3,780,000 (including an £863,000 performance incentive fee) during the year (2016: £2,135,000).

Foresight Fund Managers Limited, Company Secretary until November 2017, received fees of £113,000 (2016: £110,000) during the year.

At the balance sheet date there was £nil (2016: £17,000) due to Foresight Group CI Limited 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 the related parties.

END




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Source: Foresight VCT PLC via Globenewswire


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Foresight VCT PLC : Annual Financial Report - RNS