TIDMFTSV
FORESIGHT SOLAR VCT PLC
Financial Highlights
Six months ended Year ended
Ordinary Shares Fund 31 December 2014 30 June 2014
Net asset value per share 104.7p 101.9p
Revenue return per share 0.5p 1.0p
Capital (loss)/return per share 5.9p (8.3)p
Total dividends per share 14.0p 11.0p
Total (loss)/return per share 6.4p (7.3)p
Share price per share 101.5p 107.5p
Six months ended Year ended
C Shares Fund 31 December 2014 30 June 2014
Net asset value per share 95.0p 98.0p
Revenue loss per share 0.4p (0.6)p
Capital loss per share (0.7)p (1.3)p
Total dividends per share 2.5p -
Total loss per share (0.3)p (1.9)p
Share price per share 100.0p 100.0p
Chairman's Statement
Summary Financial Highlights
-- Net asset value per Ordinary Share at 31 December 2014 was 104.7p after
payments of 3.0p in dividends (30 June 2014: 101.9p).
-- Net asset value per C Share at 31 December 2014 was 95.0p after payments
of 2.5p in dividends (30 June 2014: 98.0p).
-- Total net asset value return (including dividends paid since launch) at
31 December 2014 is 118.7p for the Ordinary Shares fund and 97.5p for the
C Shares fund.
Ordinary Shares Fund
-- An interim dividend of 3.0p per Ordinary Share was paid on 14 November
2014 based on an ex-dividend date of 30 October 2014 and a record date of
31 October 2014. A further dividend of 3.0p per Ordinary Share will be
paid on 10 April 2015 based on an ex-dividend date of 19 March 2015 and a
record date of 20 March 2015.
C Shares Fund
-- An interim dividend of 2.5p per C Share was paid on 14 November 2014
based on an ex-dividend date of 30 October 2014 and a record date of 31
October 2014. A further dividend of 2.5p per C Share will be paid on 10
April 2015 based on an ex-dividend date of 19 March 2015 and a record
date of 20 March 2015.
Dividend History
Ordinary Shares Fund Dividend per share
14 November 2014 3.0p
4 April 2014 3.0p
25 October 2013 3.0p
12 April 2013 2.5p
31 October 2012 2.5p
C Shares Fund Dividend per share
14 November 2014 2.5p
Performance - Ordinary Shares Fund
The underlying net asset value increased by 5.8p per Ordinary Share
before deducting the 3.0p per Ordinary share dividend paid during the
period
The valuation of the UK portfolio increased by approximately GBP2.4
million (6.4p per Ordinary Share). This increase in valuation was driven
by a variety of factors including the purchase for GBP19.3m of the
Turweston asset and some tightening of discount rates reflecting market
conditions. The Turweston purchase finalises the reinvestment of our
cash balances arising from the bond refinancing executed in 2013.
Valuation of the European assets which account for approximately 10% of
the Ordinary share portfolio was little changed during the six month
period. As detailed in the Annual Report & Accounts, Foresight Group, on
the basis of specialist legal advice, has issued formal notices to the
governments of Spain and Italy for breaching the protections available
under the Energy Charter Treaty and international law, and causing
Foresight's investments to suffer significant loss. This process is
ongoing and may in due course lead to international arbitration
proceedings similar to those already brought by other international
solar investors.
The overall performance of the Ordinary Shares fund remains robust and
the total return as at 31 December 2014 was 118.7p per Ordinary Share.
Following the acquisition of the new investments noted above, the Board
and the Manager expect returns to be enhanced restoring progress towards
the fund's original target of a total 5 year return of 130.0p per
Ordinary Share.
i. Movement in Net Asset Value of the Ordinary Shares Fund
During the period, the net asset value of the Ordinary Shares fund
increased to 104.7p per share (GBP40.1 million) at 31 December 2014 from
101.9p per share (GBP39.1 million) at 30 June 2014. The main reason
behind the rise in net assets was the aggregate performance of the
investment portfolio increasing by 6.0p, offset by a dividend payment of
3.0p per Ordinary Share and income less expenses of 0.2p. This is
summarised further in the table below:
GBP'000 Pence per Ordinary Share
NAV at 30 June 2014 39,055 101.9
Dividends paid (1,150) (3.0)
UK investments valuation increase 2,437 6.4
Italian investments valuation decrease (140) (0.4)
Other (61) (0.2)
NAV at 31 December 2014 40,141 104.7
ii. Cash & Deal Flow
During the period the Ordinary Shares fund invested GBP19.3m in the
Turweston asset.
The Ordinary Shares fund had cash and liquid resources of GBP0.1 million
at 31 December 2014. The Company receives regular interest and loan
stock payments and dividends from its underlying investments enabling it
to continue to fund its dividend policy as well as meeting expenses in
the ordinary course of business as they fall due.
iii. Investment Gains & Losses
There were no realised gains or losses during the period for the
Ordinary Shares fund.
During the period the Ordinary Shares fund recognised unrealised gains
of GBP2.3 million. Further information regarding the breakdown of this
amount is contained in the Manager's Report.
iv. Running Costs
The annual management fee of the Ordinary Shares fund is 1.5%. During
the period the management fees totalled GBP303,000, of which GBP75,000
was charged to the revenue account and GBP228,000 was charged to the
capital account. At 2.2% the total expense ratio of the Ordinary Shares
fund for the period to 31 December 2014 compares very favourably with
its VCT peer group.
v. Ordinary Share Dividends
The Board originally planned to pay dividends of 5.0p per Ordinary Share
each year throughout the life of Foresight Solar VCT plc after the first
year, payable bi-annually via dividends of 2.5p per Ordinary Share in
April and October each year. The level of dividends is not, however,
guaranteed.
The Board is pleased to announce that the next interim dividend, of 3.0p
per Ordinary Share, will be paid on 10 April 2015. The dividend has an
ex-dividend date of 19 March 2015 and a record date of 20 March 2015.
vi. Ordinary Share Issues & Buybacks
During the period under review there were no Ordinary Shares repurchased
for cancellation nor any new shares issued..
Performance - C Shares Fund
The net asset value per C Share decreased to 95.0p per C Share at 31
December 2014 from 98.0p per C Share at 30 June 2014, principally due to
payment of a dividend and expenses incurred during the period. The C
share class has entered into exclusivity on three UK solar assets that
will require GBP10m of equity to be deployed.
i. Movement in Net Asset Value of the C Shares Fund
During the period, the net assets of the C Shares fund decreased to
GBP11.9 million at 31 December 2014 from GBP12.3 million at 30 June
2014, as a result of payment of a dividend and expenses incurred during
the period. This equates to a decrease in NAV to 95.0p per share at 31
December 2014 from 98.0p per share at 30 June 2014. This is summarised
further in the table below:
GBP'000 Pence per C Share
NAV at 30 June 2014 12,257 98.0
Dividends paid (313) (2.5)
Other (56) (0.5)
NAV at 31 December 2014 11,888 95.0
ii. Cash & Deal Flow
During the period, a loan of GBP1.8m was made in a solar investment in
Colorado in the USA. This was repaid on 13 February 2015 and earned
interest of GBP79k at the rate of 8.5% during the period of the loan.
More information on this investment is given in the Investment Manager`s
report.
At 31 December 2014 the C Share fund had cash or near cash resources of
GBP10.1 million.
iii. Investment Gains & Losses
There were no realised or unrealised gains or losses during the period.
iv. Running Costs
The annual management fee of the C Shares fund is 1.75%. During the
period the management fees totalled GBP111,000, of which GBP28,000 was
charged to the revenue account and GBP83,000 was charged to the capital
account. The total expense ratio of the C Shares fund, for the period
ended 31 December 2014 was 3.0%.
v. C Share Dividends
The Board is pleased to announce that the next interim dividend, of 2.5p
per C Share, will be paid on 10 April 2015. The dividend has an
ex-dividend date of 19 March 2015 and a record date of 20 March 2015.
vi. C Share Issue & Buybacks
During the period under review there were no C Shares issued or
repurchased for cancellation.
Outlook - C Shares Fund
The proceeds of the C Share offer have been fully allocated to new
projects currently being completed, benefiting from the ROC regime in
the United Kingdom. Further details on these investments and their
underlying performance will be provided when they have completed over
the next few months.
Overall Company Outlook
The market for Photovoltaic Solar plants in the UK has grown
exponentially over the last three years, which has both advantages and
disadvantages for the Company. On the one hand, as demand has increased
the value of the existing UK assets has risen. On the other hand, and,
this is more relevant to the C Share portfolio, as competition for these
assets has increased, it has taken longer to invest the Company's
available cash resources with the right profile of acceptable returns
and risk. The Manager has, however, invested the remaining cash
resources of the Ordinary Shares fund and has indicated that the cash
resources of the C Shares fund should be invested soon. I look forward
to reporting further progress in this regard in due course.
David Hurst-Brown
Chairman
27 February 2015
Investment Manager's Report
Ordinary Shares
UK Assets
Four plants in Kent, Somerset and Wiltshire are the principal assets of
the Ordinary Shares fund and are all trading successfully and
benefitting from index linked Feed-in Tariffs (FiTs) over 25 years.
Because of the favourable differential between the yield on new ROC
based plants and the cost of the bond, investors in Foresight Solar
VCT's Ordinary Shares fund are expected to benefit from higher dividends
and greater capital appreciation as a result of this refinancing.
During the period, six companies representing the original investments
and principal assets of the fund deployed cash generated from the
issuance of the bond to enter into Capacity Agreements with the
Turweston solar project. These agreements substantially take the form of
the original agreements in place with the four FiT assets. Turweston is
a 16.45 MW site and will benefit from 1.4 ROCs on accreditation. The
Turweston acquisition completed on 12 December 2014 with the site
connecting to the grid on 19 December 2014 in line with our expectations
at the previous reporting date of concluding the re-investment of the
bond proceeds within this timescale. The Ordinary Shares fund is now
fully re-invested following the bond refinancing.
During the period under review, production from the four FiT sites was
in line with expectations.
European Assets
Although the Ordinary Shares fund is predominantly comprised of UK solar
assets, the Company also has exposure to several assets in both Italy
and Spain accounting in aggregate for c.10% of the portfolio value. The
Spanish and Italian assets suffered from poor irradiation during the
period with a corresponding effect on revenue.
The Italian solar sector continues to be characterised by increasing
political risk driven by the desire to adapt to less favourable economic
incentives due to a greater focus on reducing the cost of renewable
energy to consumers.
Previously attractive incentives together with rapid deployment of solar,
in the context of a severe economic downturn, have created an unexpected
burden on domestic consumers who are indirectly funding the subsidy.
Foresight has analysed the impact of this change in legislation across
the portfolio and is exploring the refinancing of the Italian portfolio.
The expected outcome is a drop in IRR of c.3% across the Italian
portfolio to c.8% following the refinancing. The impact of this is
already included in the NAV of the Ordinary Shares fund. Operating costs
across the assets are in the process of being re-negotiated and legal
action against the Italian government is in progress based on advice
received in this context.
The Spanish assets owned by the Company have also been negatively
impacted by changes in legislation, which have effectively placed a cap
on the returns that Spanish solar assets can generate. This cap has been
set at 7.4% (calculated as 300 basis points over the average of the 10
year Spanish Government Bond yield). The Ordinary Shares fund's exposure
to the Company's only Spanish asset is 3.0% of the portfolio value. A
provision of 50% is in place against the cost of the Spanish asset held
by the Ordinary Shares fund.
We believe we are on track to deliver the original target return of 130p
for the Ordinary Shares fund. It was previously reported that we might
exceed the 130p level following the bond refinancing and subsequent
reinvestment but the provisions made against the Italian and Spanish
investments imply that the original 130p is now more realistic.
C Shares
The C Shares fund, which does not have any exposure to Italian or
Spanish assets, recently entered into exclusivity on three UK solar
assets that will see materially all (GBP10 million) of the C Shares fund
being deployed. These assets will be purchased shortly after connection
to the grid. We expect these sites to be fully operational by April
2015. The three sites have a combined production capacity of 12MW.
During the period the C shares fund provided a short-term loan of
GBP1.8million at an attractive interest rate to a solar project in
Colorado, USA. The loan has been repaid since the year end. The C Shares,
being a later vintage and investing under the ROC subsidy rather than
FiTs, is targeting a 120p total return. Deployment has taken place in a
very competitive environment that has pushed acquisition prices up, but
we believe a return of 120p continues to be achievable subject to
competitive refinancing terms and/or an ultimate disposal at an
attractive cost of capital.
Increasing Capital Value and Dividends
The realisable value and dividend potential of the Company as a whole
(Ordinary and C Shares) may be enhanced through scale. This has been
demonstrated to date by the attractive bond issue terms achieved in
relation to the aggregated principal assets of the Ordinary Shares fund.
We will keep other refinancing opportunities under review for further
optimisation. Also, on an eventual sale of the portfolio, we expect
acquirors of large operating solar portfolios to pay a premium price
based on economies of scale advantages attached to negotiating
operational cost items such as operating and maintenance contracts and
insurance. Discount rates for UK based solar projects have been steadily
reducing which, from the perspective of owners of solar projects, has
driven up asset valuations. Now that the Fund is fully allocated, both
the Ordinary and C share NAVs will benefit from these lower discount
rates and higher asset valuations. A factor that has contributed to more
aggressive discount rates is the general low interest rate environment.
Investors have been forced to compete for alternative assets with low
risk cash flows such as solar assets for higher returns. Acquisition
vehicles such as US based 'Yield Cos' have a very attractive cost of
capital for example. Having benchmarked discount rates, including having
access to specific advisor reports in this context, we believe a
discount rate range of 6.8% to 7.8% is currently appropriate for the
Fund's assets. A discount rate at the prudent end of the range has been
used when calculating the Fund's NAVs.
Outlook
Significant progress has been made during the period in deploying and
committing capital across both share classes. Our focus during the
second half of the year will be on completing the new C share
acquisitions and fully on-boarding the new assets to optimise financial
and technical reporting. Beyond this, little further deployment activity
is expected in the absence of a further refinancing exercise which will
be kept under review.
More generally, we anticipate that the UK solar sector will continue to
grow by building out new capacity along-side an active secondary market
which is now developing rapidly. The ROC regime is due to end for new UK
solar assets over 5MWs in size in March 2015 and will be replaced by a
CfD mechanism. The CfD subsidy for solar is a new mechanism for larger
scale solar plants that may not be suitable for a Fund of this size.
Therefore the continued activity in the short term for new ground based
solar assets is likely to be in the sub-5MW ROC segment which is a good
size for re-deployment of any future refinancing carried out by the
Fund.
Jamie Richards
Head of Infrastructure
Foresight Group
27 February 2015
Unaudited Half-Yearly Financial Report and Responsibility Statements
Principal Risks and Uncertainties
The principal risks faced by the Company can be divided into various
areas 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 30 June
2014. A detailed explanation can be on found on page 8 of the Annual
Report and Accounts which is available at www.foresightgroup.eu or by
writing to Foresight Group at The Shard, 32 London Bridge Street, London,
SE1 9SG.
In the view of the Board, there have been no 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 Unaudited Half-Yearly
Financial Report for the six months ended 31 December 2014.
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 Unaudited Half-Yearly Financial Report for the six months ended
31 December 2014 includes a fair review of the information required by
DTR 4.2.7R (indication of important events during the first six months
of the year and a description of principal risks and uncertainties that
the Company faces for the remaining six months of the year);
(c) the summarised set of financial statements give a true and fair view
of the assets, liabilities, financial position and profit or loss of the
Company as required by DTR 4.2.4R; 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 Strategic Report in the 30 June 2014 Annual Report and Accounts. The
financial position of the Company, its cash flows, liquidity position
and borrowing facilities are described in the Chairman's Statement,
Strategic Report and Notes to the Accounts of the 30 June 2014 Annual
Report and Accounts. In addition, the Annual Report and Accounts
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, which benefit from
Feed-in-Tariffs guaranteed by the UK Government. As a consequence, the
Directors believe that the Company is well placed to manage its business
risks successfully despite the current uncertain economic outlook.
Cash flow projections have been reviewed and show that the Company has
sufficient funds to meet both its contracted expenditure and its
discretionary cash outflows in the form of the share buy-back programme
and dividend policy. The Company has no external loan finance in place
and therefore is not exposed to any gearing covenants.
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 for the six months ended 31 December
2014 has not been audited or reviewed by the auditors.
On behalf of the Board
David Hurst-Brown
Chairman
27 February 2015
Unaudited Non-Statutory Analysis between the Ordinary Shares and C
Shares Funds
Income Statements
for the six months ended 31 December 2014
Ordinary Shares Fund C Shares Fund
Revenue Capital Total Revenue Capital Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Investment holding
gains - 2,297 2,297 - - -
Income 471 - 471 138 - 138
Investment management
fees (75) (228) (303) (28) (83) (111)
Gains on the value of
derivatives - 154 154 - - -
Other expenses (135) - (135) (65) - (65)
Return/(loss) on
ordinary activities
before taxation 261 2,223 2,484 45 (83) (38)
Taxation (56) 56 - 9 (9) -
Return/(loss) on
ordinary activities
after taxation 205 2,279 2,484 54 (92) (38)
Return/(loss) per
share 0.5p 5.9p 6.4p 0.4p (0.7)p (0.3)p
Balance Sheets
at 31 December 2014
Ordinary Shares Fund C Shares Fund
GBP'000 GBP'000
Fixed Assets
Investments held at fair value
through profit or loss 39,872 11,558
Current assets
Debtors 360 284
Money market securities and
other deposits 8 -
Cash 70 74
438 358
Creditors
Amounts falling due within one
year (169) (28)
Net current assets 269 330
Net assets 40,141 11,888
Capital and reserves
Called-up share capital 383 125
Share premium account - 12,318
Capital redemption reserve 2 -
Profit and loss account 39,756 (555)
Equity shareholders' funds 40,141 11,888
Net asset value per share 104.7p 95.0p
At 31 December 2014 there was an inter-share debtor/creditor of
GBP67,000 which has been eliminated on aggregation.
Unaudited Non-Statutory Analysis between the Ordinary Shares and C
Shares Funds
Reconciliations of Movements in Shareholders' Funds
for the six months ended 31 December 2014
Called-up Share Capital Profit and
share premium redemption loss
capital account reserve account Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Ordinary
Shares fund
As at 1 July
2014 383 - 2 38,670 39,055
Expenses in
relation to
share
issues - - - (248) (248)
Dividends - - - (1,150) (1,150)
Return for
the period - - - 2,484 2,484
As at 31
December
2014 383 - 2 39,756 40,141
Called-up Share Capital Profit and
share premium redemption loss
capital account reserve account Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
C Shares fund
As at 1 July
2014 125 12,336 - (204) 12,257
Expenses in
relation to
share
issues - (18) - - (18)
Dividends - - - (313) (313)
Loss for the
period - - - (38) (38)
As at 31
December
2014 125 12,318 - (555) 11,888
Unaudited Income Statement
for the six months ended 31 December 2014
Six months ended Six months ended Year ended
31 December 2014 31 December 2013 30 June 2014
(unaudited) (unaudited) (audited)
Revenue Capital Total Revenue Capital Total Revenue Capital Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Investment
holding
gains/(losses) - 2,297 2,297 - (541) (541) - (2,921) (2,921)
Income 609 - 609 608 - 608 1,041 - 1,041
Investment
management
fees (103) (311) (414) (98) (293) (391) (201) (602) (803)
Gains on the
value of
derivatives - 154 154 - 24 24 - 114 114
Other expenses (200) - (200) (191) - (191) (402) - (402)
Return/(loss)
on ordinary
activities
before
taxation 306 2,140 2,446 319 (810) (491) 438 (3,409) (2,971)
Taxation (47) 47 - (66) 66 - (111) 111 -
Return/(loss)
on ordinary
activities
after
taxation 259 2,187 2,446 253 (744) (491) 327 (3,298) (2,971)
Return/(loss)
per share:
Ordinary Share 0.5p 5.9p 6.4p 0.7p (1.8)p (1.1)p 1.0p (8.3)p (7.3)p
C Share 0.4p (0.7)p (0.3)p (0.5)p (0.5)p (1.0)p (0.6)p (1.3)p (1.9)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 period.
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 31 December 2014
Registered Number: 07289280
As at As at As at
31 December 2014 31 December 2013 30 June 2014
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
Fixed assets
Investments held at fair
value through profit or
loss 51,430 49,594 48,443
Current assets
Debtors 577 916 760
Money market securities and
other deposits 8 8 8
Cash 144 555 2,308
729 1,479 3,076
Creditors
Amounts falling due within
one year (130) (124) (207)
Net current assets 599 1,355 2,869
Net assets 52,029 50,949 51,312
Capital and reserves
Called-up share capital 508 469 508
Share premium account 12,318 8,346 12,336
Capital redemption reserve 2 1 2
Profit and loss account 39,201 42,133 38,466
Equity shareholders' funds 52,029 50,949 51,312
Net asset value per share:
Ordinary Share 104.7p 111.1p 101.9p
C Share 95.0p 98.3p 98.0p
Unaudited Reconciliation of Movements in Shareholders' Funds
for the six months ended 31 December 2014
Called-up Share Capital Profit and
share premium redemption loss
Company capital account reserve account Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
As at 1 July
2014 508 12,336 2 38,466 51,312
Expenses in
relation to
share
issues - (18) - (248) (266)
Dividends - - - (1,463) (1,463)
Return for
the period - - - 2,446 2,446
As at 31
December
2014 508 12,318 2 39,201 52,029
Unaudited Cash Flow Statement
for the six months ended 31 December 2014
Six months Six months
ended ended Year ended
31 December 31 December 30 June
2014 2013 2014
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
Cash flow from operating activities
Investment income received 282 241 903
Deposit and similar interest received 1 4 5
Investment management fees paid (402) (453) (867)
Secretarial fees paid (84) (99) (182)
Other cash payments (129) (88) (172)
Net cash outflow from operating activities and returns
on investment (332) (395) (313)
Returns on investment and servicing of finance
Purchase of investments (1,808) (7,700) (10,000)
Net proceeds on sale of investments 1,118 1,403 2,474
Net proceeds on sale of financial assets 662 - -
Net capital outflow from financial investment (28) (6,297) (7,526)
Equity dividends paid (1,463) (1,151) (2,302)
Financing
Proceeds of fund raising - 2,809 7,069
Expenses of fund raising (305) (306) (515)
Repurchase of own shares (36) - -
(341) 2,503 6,554
Decrease in cash (2,164) (5,340) (3,587)
Reconciliation of net cash flow to movement in net
funds
Decrease in cash for the period (2,164) (5,340) (3,587)
Net cash at start of period 2,316 5,903 5,903
Net cash at end of period 152 563 2,316
Analysis of changes in net cash
1 July 2014 Cash flow 31 December 2014
GBP'000 GBP'000 GBP'000
Cash and cash equivalents 2,316 (2,164) 152
Notes to the Unaudited Half-Yearly Financial Report
for the six months ended 31 December 2014
1. 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 year ended 30 June 2014. Unquoted investments have been valued
in accordance with the International Private Equity and Venture Capital
Valuation guidelines. Quoted investments are stated at bid prices in
accordance with UK Generally Accepted Accounting Practice.
2. These are not statutory accounts in accordance with S436 of the
Companies Act 2006 and the financial information for the six months
ended 31 December 2014 and 31 December 2013 has been neither audited nor
reviewed. Statutory accounts in respect of the year to 30 June 2014 have
been audited and reported on by the Company's auditor and delivered to
the Registrar of Companies and included the report of the auditor 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 30 June 2014 have been reported on by the Company's auditor
or delivered to the Registrar of Companies.
3. Copies of the Unaudited Half-Yearly Financial Report for the six
months ended 31 December 2014 have been sent to shareholders and
are available for inspection at the Registered Office of the Company at
The Shard, 32 London Bridge Street, London, SE1 9SG.
Copies of the Unaudited Half-yearly Financial Report for the six months
ended 31 December 2014 are also available electronically at
www.foresightgroup.eu.
1. Net asset value per share
The net asset value per share is based on net assets at the end of the
period and the number of shares in issue at that date.
Ordinary Shares Fund C Shares Fund
Net assets Number of Shares Net assets Number of Shares
GBP'000 in Issue GBP'000 in Issue
31 December 2014 40,141 38,331,956 11,888 12,511,089
31 December 2013 42,619 38,366,252 8,330 8,471,012
30 June 2014 39,055 38,331,956 12,257 12,511,089
1. Return per share
The weighted average number of shares for the Ordinary Shares and C
Shares funds used to calculate the respective returns are shown in the
table below:
Ordinary Shares Fund C Shares Fund
Number of Shares Number of Shares
Six months ended 31 December 2014 38,331,956 12,511,089
Six months ended 31 December 2013 38,366,252 6,828,787
Year ended 30 June 2014 38,365,782 9,064,723
1. Income
Six months ended Six months ended Year ended
31 December 2014 31 December 2013 30 June 2014
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
Loan stock interest 608 604 1,036
Bank interest 1 4 5
609 608 1,041
1. Investments held at fair value through profit or loss
Unquoted
Company & Total
GBP'000
Book cost as at 1 July 2014 41,636
Investment holding gains 6,807
Valuation at 1 July 2014 48,443
Movements in the period:
Purchases at cost 1,808
Disposal proceeds (1,118)
Investment holding gains 2,297
Valuation at 31 December 2014 51,430
Book cost at 31 December 2014 42,326
Investment holding gains 9,104
Valuation at 31 December 2014 51,430
Unquoted
Ordinary Shares Fund & Total
GBP'000
Book cost as at 1 July 2014 31,636
Investment holding gains 6,807
Valuation at 1 July 2014 38,443
Movements in the period:
Disposal proceeds (868)
Investment holding gains 2,297
Valuation at 31 December 2014 39,872
Book cost at 31 December 2014 30,768
Investment holding gains 9,104
Valuation at 31 December 2014 39,872
Unquoted
C Shares Fund & Total
GBP'000
Book cost as at 1 July 2014 10,000
Investment holding gains -
Valuation at 1 July 2014 10,000
Movements in the period
Purchases at cost 1,808
Disposal proceeds (250)
Valuation as at 31 December 2014 11,558
Book cost at 31 December 2014 11,558
Investment holding gains -
Valuation at 31 December 2014 11,558
1. Transactions with the manager
Details of arrangements of the Company with Foresight Group are given in
the Annual Report and Accounts for the year ended 30 June 2014, in the
Directors' Report and Note 3.
Foresight Group, which acts as investment manager to the Company in
respect of its venture capital investments earned fees of GBP414,000 in
the six months ended 31 December 2014 (31 December 2013: GBP391,000; 30
June 2014: GBP803,000).
Foresight Group also provides administration services to the Company via
Foresight Fund Managers Limited, and received fees excluding VAT of
GBP84,000 during the six months ended 31 December 2014 (31 December
2013: GBP84,000; 30 June 2014: GBP167,000). The annual administration
and accounting fee (which is payable together with any applicable VAT)
is 0.3% of the net funds raised (subject to a minimum index-linked fee
of GBP60,000 for each of the Ordinary and C Shares funds).
At the balance sheet date there was GBP26,000 due to Foresight Group (31
December 2013: GBP39,000; 30 June 2014: GBP26,000).
Foresight Group are responsible for external costs such as legal and
accounting fees, incurred on transactions that do not proceed to
completion ('abort expenses'). In line with industry practice, Foresight
Group retain the right to charge arrangement and syndication fees and
Directors' or monitoring fees ('deal fees') to companies in which the
Company invests. Foresight Group did not receive any fees of this nature
in the six months ended 31 December 2014.
Foresight Group is also a party to the performance incentive agreement
described in Note 13 of the Annual Report and Accounts for the year
ended 30 June 2014.
1. Related party transactions
There were no related party transactions in the period.
This announcement is distributed by NASDAQ OMX Corporate Solutions on
behalf of NASDAQ OMX 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.
Source: Foresight Solar VCT PLC via Globenewswire
HUG#1898142
http://www.foresightgroup.eu/
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