TIDMFTSV
FORESIGHT SOLAR & INFRASTRUCTURE VCT PLC
Financial Highlights
-- Ordinary Shares Net Assets as at 30 September 2019: GBP39.8m
-- Ordinary Shares Net Asset Value per share as at 30 September 2019: 92.6p
-- Ordinary Shares Dividends paid during the six months ended 30 September
2019: 3.0p
Ordinary Shares Fund
-- Total net assets GBP39.8 million.
-- After payment of 3.0p in dividends, Net Asset Value per Ordinary Share at
30 September 2019 was 92.6p (31 March 2019: 96.4p).
-- On 19 September 2019, David Hurst-Brown retired from the Board, with
Ernie Richardson taking over as Chairman.
-- At 30 September 2019, the fund held positions in 12 UK assets, with a
total installed capacity of 74.7MW. During the period the portfolio
generated 55.5 gigawatt hours of clean energy, sufficient to power
approximately 18,000 UK homes for a year.
-- At 30 September 2019, the fund also held positions in seven Italian solar
assets with a total installed capacity of 5.9MW.
-- ForVEI II, which the Company has an interest in through the existing
portfolio companies, invested in three further plants totalling 2.6MW,
located in Sicily, the Apulia region of southern Italy and Veneto.
-- An interim dividend of 3.0p per Ordinary Share was paid during the period,
on 26 April 2019. Post period end, another interim dividend of 3.0p per
Ordinary Share was paid, on 22 November 2019.
-- Post period end in November 2019, our existing portfolio company
completed the disposal of its entire interest in the ForVEI II platform.
Dividend History
Ordinary Shares Dividend per share
---------------- ------------------
22 November 2019 3.0p
26 April 2019 3.0p
23 November 2018 3.0p
27 April 2018 3.0p
24 November 2017 3.0p
7 April 2017 3.0p
18 November 2016 3.0p
8 April 2016 3.0p
13 November 2015 3.0p
10 April 2015 3.0p
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
Cumulative 44.0p
Chairman's Statement
INTRODUCTION
As your new Chairman and on behalf of the Board, I am pleased to present
the Unaudited Half- Yearly Financial Report for Foresight Solar &
Infrastructure VCT Plc for the six months ended 30 September 2019 and to
provide you with an update on the exciting developments affecting the
Company.
Before I do so, on behalf of the Board, we would like to thank the
previous Chairman, David Hurst-Brown, for his valuable contributions and
stewardship of the Company during his tenure and to wish him well for
the future.
PERFORMANCE AND PORTFOLIO ACTIVITY
The Net Asset Value per Ordinary Share decreased by 0.8p to 92.6p at 30
September 2019, compared to 96.4p per share at 31 March 2019, after
deducting the 3.0p per Ordinary Share dividend that was paid on 26 April
2019. The slight decrease in NAV is driven by the usual running expenses
of the fund, with steady valuations in the portfolio for the period.
There were no new acquisitions in the UK portfolio during the period.
ForVEI II, which the Company has an interest in through the existing
portfolio companies, invested in three further plants totalling 2.6MW,
located in Sicily, the Apulia region of southern Italy and Veneto.
Following the Board's decision to refocus the portfolio, these existing
portfolio companies returned the equivalent of c.GBP2.2m to the fund in
the period. In November 2019, post period end, these portfolio companies
then completed the sale of their entire interest in ForVEI II, returning
an additional c.GBP4m to the fund. This corresponds to a multiple of
c.1.08x in less than 18 months.
The Investment Manager remains in discussions for the sale of
Greenersite and Telecomponenti, with sales for both expected to complete
before the end of the financial year.
Following the award of the Spanish claim communicated in the annual
report, there remain significant challenges with respect to
collectability. The Company has since received a non-binding offer from
a third party to take on the claim and pay around 50% of the award
amount to the Fund, equating to c.GBP0.9m or 2.0p per Ordinary Share,
which is being evaluated. The Board has not assigned any current value
to the claim in the net asset value reported.
DIVIDS
During the period, an interim dividend of 3.0p per Ordinary Share was
paid on 26 April 2019.
Following the period end, a second interim dividend of 3.0p per Ordinary
Share was paid on 22 November 2019. This brought the total dividends
paid since launch to 44.0p per Ordinary Share, and a total return of
133.6p per Ordinary Share since launch.
Historically, the Board has intended to pay an annual dividend of 5.0p
per Ordinary Share each year, payable biannually via interim dividends
of 2.5p per Ordinary Share in April and October. Since the launch of the
Company, this target has been exceeded or at least matched in all years
to date.
After the completion of the tender offer, referred to below, the Board
will consider the future strategy of the Ordinary Shares including
dividend policy, and will communicate with shareholders thereafter.
MANAGEMENT FEES
The annual management fee of the Ordinary Shares fund is calculated as
1.5% of Net Assets and equated to GBP304,000 during the period.
In the context of realisations achieved during the period and the
continuing professional management of the portfolio, the Board believe
that the annual management fee represents good value for investors.
SHARE ISSUES AND BUYBACKS
During the period, 293,778 Ordinary Shares were repurchased for
cancellation for a total cost of GBP273,000. No new shares were issued
during the period.
GREEN MARK CERTIFICATE
The Board are pleased to announce that the Company has been classified
as a Green Economy Issuer by the London Stock Exchange ("LSE"). This is
a new initiative launched by the LSE supporting sustainable finance on
its markets. The Green Economy Mark recognises listed companies with 50%
or more of revenues from environmental solutions.
TER OFFER
In the Chairman's Statement which accompanied the accounts to 31 March
2019, it was noted that the Board would be writing to Shareholders in
late 2019 regarding the opportunity to participate in a tender offer,
similar to that undertaken by the Company in 2017.
The Board are pleased to announce that alongside the publishing of this
Interim Report, the Circular containing details of the latest tender
offer have also been published, where the Company is offering to
purchase up to 25% of its own Ordinary Shares (equivalent to 10,738,453
shares), to return funds to Ordinary Shareholders who now wish to exit
from their investment, in full or in part, while allowing those
Shareholders who wish to continue to hold their Shares to do so.
The Board feel that the 25% limit is appropriate and should allow
Shareholders who wish to sell their Shares to do so whilst also
providing some 'headroom' to accommodate those Shareholders who were
unable to take part in the previous tender offer but now also wish to
exit some or all of their investment.
An EGM for the formal approval of this Tender Offer is scheduled to be
held on 27 January 2020.
LAUNCH OF NEW SHARE CLASS Also as communicated in the Chairman's
Statement which accompanied the accounts to 31 March 2019, it was noted
that there were plans to write to shareholders regarding the launch of a
new share class.
The Board are pleased to announce that this new share class will be in
collaboration with Williams Advanced Engineering ("Williams", part of
Williams F1) and will build upon the already existing partnership
between the Manager and Williams that has successfully raised and
invested monies in a number of exciting engineering and technology-based
companies through its Enterprise Investment Scheme fund over the last
four years.
Discussions regarding this launch are progressing well, and I hope to
write to shareholders very soon with further details.
OUTLOOK
The Company's solar portfolio continues to generate a steady flow of
dividends but with limited scope for further development. As such, the
focus of the Ordinary Shares fund will remain the optimisation of the
portfolio.
Also as mentioned above, I hope to provide further communications
regarding the launch of the new VCT share class very soon.
Ernie Richardson
Chairman
18 December 2019
Investment Manager's Review
PORTFOLIO SUMMARY AND PERFORMANCE
It has been a steady period for the portfolio, with no acquisitions in
the UK. The ForVEI II Italian solar platform, in which existing
portfolio companies have invested, acquired three small ground-mounted
solar assets in Sicily, the Apulia region of southern Italy and Veneto,
with a total capacity of 2.6MW. The plants receive long-term subsidies
under the Italian Feed-in Tariff regime. In September 2019, an extension
of the existing project-level debt across the UK solar assets was
negotiated, allowing time to finalise a cross-portfolio debt facility
next year.
Plant optimisation has remained the Investment Manager's core objective
both from an operational perspective and in respect of the assets'
ability to support a sustainable level of debt to enhance returns to the
fund. Performance of the assets was positive during the period 1 April
2019 to 30 September 2019 with total electricity production 2.1% above
expectations. The assets generated a total of 55.5GWh, enough clean
electricity to power approximately 18,000 homes. This positive
performance reflects higher than average irradiation levels and good
availability of the solar plants. Further details on performance of the
individual assets are included on pages 10 to 16.
POST PERIOD
Following a decision to refocus the portfolio on the UK market and in
order to provide liquidity for the fund, in November 2019 the Investment
Manager agreed the sale of the Italian solar assets held through ForVEI
II to another Foresight-managed fund. The sale was based on a
third-party valuation and returned c.GBP4m to the fund, corresponding to
a multiple of c.1.08x in less than 18 months. The Investment Manager
also continues to work towards completing the sale of the small Italian
rooftop asset, Telecomponenti, which was agreed earlier this year, and
the sale of Greenersite, a UK rooftop asset.
REGULATORY AND MARKET CHANGES
Targeted Charging Review
Ofgem published an update on the potential reforms to network charging,
including a change to the Balancing Service Use of System ("BSUoS"),
through which National Grid recovers the cost of balancing the network.
Currently, generators connecting to the distribution network receive a
credit, recognising the positive effect this capacity has on alleviating
constraints on the transmission network. However, the increase in
embedded generation in recent years has caused Ofgem to consider
removing this credit and applying a charge.
In November 2019 Ofgem released its final decision on the Targeted
Charging Review ("TCR"). For generators, the credit, or embedded
benefits, received from BSUoS will be removed from April 2021, although
no charges were announced at this time. Foresight continues to engage
with Ofgem and the industry more widely as a member of the Solar Trade
Association to ensure the adverse impact and potential consequences are
understood. It should be noted that embedded benefits revenue represents
just 3.7% of revenues for the portfolio during the period.
Net Zero Emissions
In June 2019, the UK became the first major economy in the world to pass
laws to end its contribution to global warming by 2050. The target will
require the UK to bring all greenhouse gas emissions to net zero by
2050, compared with the previous target of at least 80% reduction from
1990 levels.
This announcement follows a recommendation from the Committee on Climate
Change in May to reduce emissions to net zero by 2050. This is expected
to be achieved through a combination of initiatives including balancing
carbon emissions with carbon removal (e.g. carbon capture and storage
technologies) and adoption of low-carbon technologies. Although the
announcement does not impact the solar industry directly, it reinforces
the UK's long-term commitment to renewable generation sources.
Throughout the third quarter of 2019, renewable energy sources in the UK
generated 29.5 terawatt hours (TWh), exceeding the 29.1TWh produced by
fossil fuels. This is the first quarter in which zero-carbon electricity
production has outpaced fossil fuels since the first public electricity
generating station opened in 1882. The Government's target of cutting
overall emissions to net-zero by 2050 will be challenging, but by
becoming an early mover in the adoption of zero-carbon products and
services, the UK will better derive economic opportunities in this
global transition.
Brexit
In October 2019, the UK's deadline to exit the European Union ("EU") was
extended to 31 January 2020. Later that month, the UK government
announced a general election would be held on 12 December 2019. At the
time of writing, despite the Conservative government claiming a clear
majority in the general election, there is still uncertainty around the
outcome of Brexit, with discussions between the EU and the UK still open
as we edge closer to the proposed exit date.
The Manager's view has not changed from that set out previously: the
energy market in the UK is closely aligned with European markets and
this is not expected to change over the long term. An exit from the EU
may cause volatility in the energy markets, leading to slightly higher
electricity prices in the short term. Longer term impacts such as
possible weaker economic demand and the availability of unskilled labour
aren't deemed material to the future operations of the portfolio.
Corporation Tax
In the run up to the general election, the Conservative Party announced
their intentions regarding corporation tax alterations. The Investment
Manager will continue to monitor any proposed changes to corporation tax
post-election and the potential impact of any changes on the asset
valuations.
REVENUES
During the period, 64.8% of revenue from UK portfolio investments came
from subsidies (predominantly under the ROC scheme) and other green
benefits to an offtaker. These revenues are directly and explicitly
linked to inflation for 20 years from the accreditation date under the
ROC regime and subject to Retail Price Index ("RPI") inflationary
increases applied by Ofgem in April of each year. The majority of the
remaining 35.2% of revenues derive from electricity sales by our UK
portfolio companies, which are subject to wholesale electricity price
movements.
The average power price achieved during the period 1 April 2019 to 30
September 2019 was GBP44.86 per MWh, representing a decrease on the
price achieved in the nine months to 31 March 2019 (GBP54.20 per MWh.)
This reduction, following a period of higher prices in 2018, was driven
by declining natural gas prices globally as a result of new supplies
from the US and Australia entering the market. Increasing renewable
penetration partially offsets the rise in carbon prices, which is driven
by tightening supply as low carbon technology costs decrease and power
sector emissions reduce. A slight increase in the deployment of onshore
wind and the build out of renewables in interconnected countries, has
also contributed to downward pressure on electricity prices.
During the period 1 April 2019 to 30 September 2019 there was a 4.1%
decrease in long term power price forecasts. The Investment Manager uses
forward looking power price assumptions to assess the likely future
income of the portfolio investments for valuation purposes. The
Company's assumptions are formed from a blended average of the forecasts
provided by third party consultants and are updated on a quarterly
basis. The Investment Manager's forecasts continue to assume an increase
in power prices in real terms over the medium to long-term of 0.45% per
annum (31 March 2019: 0.27%).
Power Purchase Agreements ("PPAs") are entered into between each
portfolio company and offtakers in the UK electricity supply market.
Under the PPAs, each portfolio company will sell the entirety of the
generated electricity and ROCs to the designated offtaker. Under the
terms of a PPA, electricity can be supplied at a fixed price for an
agreed duration, or at a variable rate.
The PPA strategy adopted by our portfolio companies seeks to optimise
their revenues from the power generated, while keeping the flexibility
to manage their solar assets appropriately. The Boards of our portfolio
companies, with assistance from Foresight, constantly assess conditions
in the electricity market and set their pricing strategy on the basis of
likely future movements. Under the terms of the current 10-year PPAs, in
place since 1 April 2019 with lower fees than previously, the
electricity generated is sold at a variable market rate, benefiting from
positive market movements. However, the portfolio companies retain the
option to fix the price if this becomes attractive. Post period end, in
December 2019, these companies entered into fixed priced contracts, with
over 40% of the UK Solar portfolio now fixed for 12 months.
SUSTAINABLE INVESTING
Sustainability lies at the heart of the Manager's approach, and the
Manager believes that investing responsibly, seeking to make a positive
social and environmental impact, is critical to its long-term success.
These factors have been integrated into the investment process, and are
actively supported by all involved, regardless of seniority.
Foresight continues to refine its sustainability tracking to further
improve its investment processes, enhance the sustainability performance
of existing assets and demonstrate more comprehensively the
environmental benefits and social contribution of the Company's
activities, implementing Foresight Group's Sustainable Investing in
Infrastructure Strategy. This strategy focuses on ensuring all assets
are evaluated prior to acquisition and throughout their ownership, in
accordance with Foresight Group's Sustainability Evaluation Criteria.
There are five central themes to the Criteria, which cover the key areas
of sustainability.
The five criteria are:
1. Sustainable Development Contribution: The development of affordable and
clean energy as well as improved resource and energy efficiency.
2. Environmental Footprint: Assessing potential environmental impact such as
emissions to air, land and water, effects on biodiversity and noise and
light pollution
3. Social Engagement: Engagement and consultation with local stakeholders.
Ensuring a positive local economic and social impact, community
engagement and the health and wellbeing of stakeholders.
4. Governance: Compliance with relevant laws and regulations and ensuring
best practice is followed.
5. Third Party Interactions: Third party due diligence is conducted on key
counterparties to ensure adherence to the aforementioned criteria where
relevant.
LAND MANAGEMENT
Foresight Group remains a working partner of the Solar Trade
Association's Large Scale Asset Management Working Group. Foresight is a
signatory to the Solar Farm Land Management Charter and seeks to ensure
that the solar farms operated by all of our portfolio companies are
managed in a manner that maximises their agricultural, landscaping,
biodiversity and wildlife potential, which can also contribute to
lowering maintenance costs and enhancing security. As such, Foresight
Group regularly inspects sites and advises portfolio companies to
develop site-specific land management and biodiversity enhancement plans
to secure long term gains for wildlife and ensure that the land and
environment are maintained to a high standard.
This includes:
-- Management of grassland areas within the security fencing to promote
wildflower meadows and sustainable sheep grazing;
-- Planting and management of hedgerows and associated hedge banks;
-- Management of field boundaries between security fencing and hedgerows;
-- Sustainable land drainage and pond restoration;
-- Installation of insect hotels and reptile hibernacula;
-- Installation of boxes for bats, owls and kestrels;
-- Installation of beehives by local beekeepers.
Most solar parks are designed to enable sheep grazing and the remaining
plants are assessed for alterations to ensure that the farmland on which
the solar assets are located can remain useful in agricultural
production, which is a frequent desire of local communities.
Compliance audits have been carried out on all UK sites held by
portfolio companies, confirming that they are in line with government
permits and conditions.
The grounds of Turweston and Littlewood solar farms are being managed as
wildflower meadows. Further environmental improvements have been
implemented at Turweston including the installation of beehives.
SOCIAL AND COMMUNITY ENGAGEMENT
Foresight Group actively seeks to engage with the local communities
around the solar assets operated by our portfolio companies and
regularly attends parish meetings to encourage community engagement and
promote the benefits of their solar assets. During the period, the
Manager has continued to make annual community payments for Marchington,
which have been extended to reflect the site's 40-year consent.
HEALTH AND SAFETY
There were no reportable health and safety incidents during the period.
The newly acquired Matino plant in the ForVEI II fund was affected by a
small fire, which originated outside the plant. No one was injured and
no significant damage was caused. A section of the plant was out of
service and an insurance claim is in progress to cover lost revenues.
Safety, Health, Environment and Quality ("SHEQ") performance and risk
management are a top priority at all levels for Foresight Group. To
further improve the management of SHEQ risks, reinforce best practice
and ensure non-compliance with regulations is avoided, Foresight Group
has appointed an independent health and safety consultant who regularly
visits the portfolio assets operated by our portfolio companies to
ensure they not only meet, but exceed, industry and legal standards. The
consultant has confirmed that all sites are in compliance with
applicable regulations. Recommendations have been implemented to help
raise standards further. During the period improvements were made to
security signage on two sites and a new method statement implemented on
one of these sites relating to weed management.
OUTLOOK
It has been another positive period for the Company with positive
performance from the assets, including those acquired last year. The
Company will continue to focus on delivering strong operational
performance across the portfolio. The Investment Manager continues to
negotiate new debt terms with the existing lender to refinance the
majority of the UK solar assets. Pricing is materially less than the
current arrangement while working with the existing lender reduces costs
significantly as no additional due diligence work is required.
Foresight Group CI Limited
Investment Manager
18 December 2019
Unaudited Half-Yearly Results and Responsibilities Statements
Principal Risks and Uncertainties
The principal risks faced by the Company are as follows:
-- Performance;
-- Regulatory;
-- Operational; and
-- Financial.
The Board reported on the principal risks and uncertainties faced by the
Company in the Annual Report and Accounts for the nine months ended 31
March 2019. A detailed explanation can be found on page 24 of the Annual
Report and Accounts which is available on Foresight Group's website
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 Half-Yearly Financial
Report and financial statements.
The Directors confirm to the best of their knowledge that:
1. the summarised set of financial statements has been prepared in
accordance with FRS 104;
2. the interim management report includes a fair review of the information
required by DTR 4.2.7R (indication of important events during the first
six months and description of principal risks and uncertainties for the
remaining six months of the year);
3. the summarised set of financial statements gives 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
4. 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 of the Annual Report. 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 31 March 2019 Annual Report. In addition, the Annual
Report includes the Company's objectives, policies and processes for
managing its capital; its financial risk management objectives; details
of its financial instruments; and its exposures to credit risk and
liquidity risk.
The Company has considerable financial resources together with
investments and income generated therefrom, which benefit from Renewable
Obligation Certificates guaranteed by the UK Government. As a
consequence, the Directors believe that the Company is well placed to
manage its business risks successfully.
The Directors have reasonable expectation that the Company has adequate
resources to continue in operational existence for the foreseeable
future. Thus they continue to adopt the going concern basis of
accounting in preparing the annual financial statements.
The Half-Yearly Financial Report has not been audited nor reviewed by
the auditors.
On behalf of the Board
Ernie Richardson
Chairman
18 December 2019
Unaudited Income Statement for the six months ended 30 September 2019
Six months ended Six months ended Nine months ended
30 September 2019 31 December 2018 31 March 2019
(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 -- 36 36 -- 3,794 3,794 -- 3,612 3,612
Realised
losses on
investments -- -- -- -- (197) (197) -- (197) (197)
Income 341 -- 341 368 -- 368 546 -- 546
Investment
management
fees (76) (228) (304) (77) (232) (309) (117) (350) (467)
Interest
payable (200) -- (200) (208) -- (208) (311) -- (311)
Other expenses (221) -- (221) (235) -- (235) (374) -- (374)
-------------- ------- ------- ------- ------- ------- ------- ------- ------- -------
(Loss)/profit
before
taxation (156) (192) (348) (152) 3,365 3,213 (256) 3,065 2,809
Taxation -- -- -- -- -- -- -- -- --
-------------- ------- ------- ------- ------- ------- ------- ------- ------- -------
(Loss)/profit
after
taxation (156) (192) (348) (152) 3,365 3,213 (256) 3,065 2,809
-------------- ------- ------- ------- ------- ------- ------- ------- ------- -------
(Loss)/profit
per share:
Ordinary Share (0.4)p (0.4)p (0.8)p (0.3)p 7.7p 7.4p (0.6)p 7.1p 6.5p
-------------- ------- ------- ------- ------- ------- ------- ------- ------- -------
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 30 September 2019
Registered Number: 07289280
As at As at As at
30 September 2019 (unaudited) 31 December 2018 (unaudited) 31 March 2019 (audited)
GBP'000 GBP'000 GBP'000
-------------- ------------------------------ ----------------------------- ------------------------
Fixed assets
Investments
held at fair
value through
profit or
loss 54,023 56,949 56,767
-------------- ------------------------------ ----------------------------- ------------------------
Current assets
Debtors 221 948 405
Cash 3,358 2,102 2,334
-------------- ------------------------------ ----------------------------- ------------------------
3,579 3,050 2,739
Creditors
Amounts
falling due
within one
year (17,837) (2,898) (17,820)
-------------- ------------------------------ ----------------------------- ------------------------
Net current
assets (14,258) 152 (15,081)
-------------- ------------------------------ ----------------------------- ------------------------
Creditors
Amounts
falling due
greater than
one year - (15,000) -
-------------- ------------------------------ ----------------------------- ------------------------
Net assets 39,765 42,101 41,686
-------------- ------------------------------ ----------------------------- ------------------------
Capital and
reserves
Called-up
share
capital 430 432 432
Share premium 7,026 7,037 7,032
Capital
redemption
reserve 124 122 122
Distributable
reserve 17,703 19,534 19,426
Capital
reserve (11,074) (10,727) (10,846)
Revaluation
reserve 25,556 25,703 25,520
-------------- ------------------------------ ----------------------------- ------------------------
Equity
shareholders'
funds 39,765 42,101 41,686
-------------- ------------------------------ ----------------------------- ------------------------
Net asset
value per
share
-------------- ------------------------------ ----------------------------- ------------------------
Ordinary Share 92.6p 97.3p 96.4p
-------------- ------------------------------ ----------------------------- ------------------------
Unaudited Reconciliation of Movements in Shareholders' Funds for the six
months ended 30 September 2019
Called-up Share Capital
share premium redemption Revaluation
capital account reserve Distributable reserve Capital reserve reserve Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
----------- --------- ------- ---------- ----------------------- ----------------- ----------- -------
As at 1
April
2019 432 7,032 122 19,426 (10,846) 25,520 41,686
Expenses in
relation
to prior
year share
issues -- (6) -- -- -- -- (6)
Repurchase
of shares (2) -- 2 (273) -- -- (273)
Investment
holding
gains -- -- -- -- -- 36 36
Dividends
paid -- -- -- (1,294) -- -- (1,294)
Management
fees
charged to
capital -- -- -- -- (228) -- (228)
Revenue
loss for
the
period -- -- -- (156) -- -- (156)
----------- --------- ------- ---------- ----------------------- ----------------- ----------- -------
As at 30
September
2019 430 7,026 124 17,703 (11,074) 25,556 39,765
----------- --------- ------- ---------- ----------------------- ----------------- ----------- -------
Unaudited Cash Flow Statement for the six months ended 30 September 2019
Nine months
ended
31 March
2019
Six months ended Six months ended (audited)
30 September 2019 (unaudited) GBP'000 31 December 2018 (unaudited) GBP'000 GBP'000
--------------------------------------------------- -------------------------------------- ------------------------------------- -----------
Cash flow from operating activities
Deposit and similar interest received 4 6 8
Investment management fees paid (311) (301) (466)
Performance incentive fee paid -- (130) (130)
Secretarial fees paid (64) (66) (99)
Other cash payments (356) (539) (441)
Net cash outflow from operating activities (727) (1,030) (1,128)
--------------------------------------------------- -------------------------------------- ------------------------------------- -----------
Cash flow from investing activities
Net proceeds on sale of investments 2,780 -- --
Investment income received 544 -- 550
--------------------------------------------------- -------------------------------------- ------------------------------------- -----------
Net cash inflow from investing activities 3,324 -- 550
--------------------------------------------------- -------------------------------------- ------------------------------------- -----------
Cash flow from financing activities
Expenses of fund raising (6) (13) (18)
Repurchase of own shares (273) (404) (619)
Equity dividends paid (1,294) (1,304) (1,304)
--------------------------------------------------- -------------------------------------- ------------------------------------- -----------
Net cash outflow from financing activities (1,573) (1,721) (1,941)
--------------------------------------------------- -------------------------------------- ------------------------------------- -----------
Net inflow/(outflow) of cash in the period 1,024 (2,751) (2,519)
--------------------------------------------------- -------------------------------------- ------------------------------------- -----------
Reconciliation of net cash flow to movement in net
funds
Increase/(decrease) in cash for the period 1,024 (2,751) (2,519)
Net cash at start of period 2,334 4,853 4,853
--------------------------------------------------- -------------------------------------- ------------------------------------- -----------
Net cash at end of period 3,358 2,102 2,334
--------------------------------------------------- -------------------------------------- ------------------------------------- -----------
At 1 At 30
April September
2019 Cash flow 2019
GBP'000 GBP'000 GBP'000
--------------------------------------------------- -------------------------------------- ------------------------------------- -----------
Cash 2,334 1,024 3,358
--------------------------------------------------- -------------------------------------- ------------------------------------- -----------
Notes to the Unaudited Half-Yearly Results for the six months ended 30
September 2019
1. The Unaudited Half-Yearly Financial Report has been prepared on the
basis of the accounting policies set out in the statutory accounts of the
Company for the nine months ended 31 March 2019. Unquoted investments
have been valued in accordance with International Private Equity and
Venture Capital Valuation Guidelines.
2. These are not statutory accounts in accordance with S436 of the
Companies Act 2006 and the financial information for the six months ended
30 September 2019 and 31 December 2018 has been neither audited nor
formally reviewed. Statutory accounts in respect of the nine months ended
31 March 2019 have been audited and reported on by the Company's auditors
and delivered to the Registrar of Companies and included the report of
the auditors which was unqualified and did not contain a statement under
S498(2) or S498(3) of the Companies Act 2006. No statutory accounts in
respect of any period after 31 March 2019 have been reported on by the
Company's auditors or delivered to the Registrar of Companies.
3. Copies of the Unaudited Half-Yearly Financial Report for the six
months ended 30 September 2019 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 are also
available electronically at 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
period and on the number of shares in issue at that date.
Net assets GBP'000 Number of Shares in issue
------------------ ------------------ -------------------------
30 September 2019 39,765 42,953,814
31 December 2018 42,101 43,247,592
31 March 2019 41,686 43,247,592
------------------ ------------------ -------------------------
5 Return per share
The weighted average number of shares for the Ordinary Shares fund used
to calculate the respective returns are shown in the table below:
Number of Shares
----------------------------------- ----------------
Six months ended 30 September 2019 43,116,781
Six months ended 31 December 2018 43,474,464
Nine months ended 31 March 2019 43,499,944
----------------------------------- ----------------
6 Income
Six months ended 30 September 2019 (unaudited) Six months ended 31 December 2018 (unaudited) Nine months ended 31 March 2019 (audited)
GBP'000 GBP'000 GBP'000
--------- ---------------------------------------------- --------------------------------------------- -----------------------------------------
Loan
stock
interest 337 362 538
Bank
interest 4 6 8
--------- ---------------------------------------------- --------------------------------------------- -----------------------------------------
341 368 546
--------- ---------------------------------------------- --------------------------------------------- -----------------------------------------
7 Investments held at fair value through profit or loss
GBP'000
------------------------------- -------
Book cost as at 1 April 2019 31,247
Investment holding gains 25,520
------------------------------- -------
Valuation at 1 April 2019 56,767
Movements in the period:
Purchases at cost --
Disposal proceeds (2,780)
Investment holding gains 36
------------------------------- -------
Valuation at 30 September 2019 54,023
------------------------------- -------
Book cost at 30 September 2019 28,467
Investment holding gains 25,556
------------------------------- -------
Valuation at 30 September 2019 54,023
------------------------------- -------
8 Transactions with the manager
Details of arrangements of the Company with the Manager are given in the
Annual Report and Accounts for the nine months ended 31 March 2019, in
the Directors' Report and Notes 3 and 13. All arrangements and
transactions were on an arms length basis.
The Company's Investment Manager earned fees of GBP304,000 in the six
months ended 30 September 2019 (six months ended 31 December 2018:
GBP309,000; nine months ended 31 March 2019: GBP467,000). At the period
end date, management fees due from the Manager amounted to GBP8,000 (31
December 2018: GBP6,000 due to the manager; 31 March 2019: GBP1,000 due
from the Manager).
Foresight Group LLP, to whom the Manager delegated the function of
Company Secretary, earned fees amounting to GBP64,000 in the six months
ended 30 September 2019 (six months ended 31 December 2018: GBP64,000;
nine months ended 31 March 2019: GBP97,000), of which GBPnil remained
payable at the period end date (31 December 2018: GBPnil; 31 March 2019:
GBPnil).
The Manager recharged fund expenses incurred on behalf of the Company of
which GBP16,000 (31 December 2018: GBP18,000; 31 March 2019: GBP28,000)
remained payable at the year end date.
9 Related party transactions
There were no related party transactions in the period.
10 Post balance sheet event
In November 2019, existing portfolio companies completed the sale of
their investment in the ForVEI II platform, returning c.GBP4m.
(END) Dow Jones Newswires
December 18, 2019 13:24 ET (18:24 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
Grafico Azioni Foresight Solar & Techno... (LSE:FTSV)
Storico
Da Mar 2024 a Apr 2024
Grafico Azioni Foresight Solar & Techno... (LSE:FTSV)
Storico
Da Apr 2023 a Apr 2024
