Foresight Solar VCT PLC : Half-yearly report

FORESIGHT SOLAR VCT PLC

Financial Highlights

Ordinary Shares Fund	Six months ended 31 December 2014	Year ended 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

C Shares Fund	Six months ended 31 December 2014	Year ended 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 £2.4 million (6.4p per Ordinary Share). This increase in valuation was driven by a variety of factors including the purchase for £19.3m 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 (£40.1 million) at 31 December 2014 from 101.9p per share (£39.1 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:

	£'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 £19.3m in the Turweston asset.

The Ordinary Shares fund had cash and liquid resources of £0.1 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 £2.3 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 £303,000, of which £75,000 was charged to the revenue account and £228,000 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 £10m 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 £11.9 million at 31 December 2014 from £12.3 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:

	£'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 £1.8m was made in a solar investment in Colorado in the USA. This was repaid on 13 February 2015 and earned interest of £79k 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 £10.1 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 £111,000, of which £28,000 was charged to the revenue account and £83,000 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 (£10 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 £1.8million 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
		£'000	£'000	£'000	£'000	£'000	£'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
				£'000			£'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 £67,000 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	Share premium account	Capital redemption reserve	Profit and loss account	Total
	£'000	£'000	£'000	£'000	£'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	Share premium account	Capital redemption reserve	Profit and loss account	Total
	£'000	£'000	£'000	£'000	£'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 (unaudited)			31 December 2013 (unaudited)			30 June 2014 (audited)
	Revenue	Capital	Total	Revenue	Capital	Total	Revenue	Capital	Total
	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'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)
	£'000	£'000	£'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

Company	Called-up share capital	Share premium account	Capital redemption reserve	Profit and loss account	Total
	£'000	£'000	£'000	£'000	£'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  ended	Six months  ended	Year ended
	31 December 2014	31 December 2013	30 June 2014
	(unaudited)	(unaudited)	(audited)
	£'000	£'000	£'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
	£'000	£'000	£'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.

4. 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 £'000	Number of Shares in Issue	Net assets £'000	Number of Shares 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

5. 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 Number of Shares	C Shares Fund 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

6. Income

	Six months ended	Six months ended	Year ended
	31 December 2014	31 December 2013	30 June 2014
	(unaudited) £'000	(unaudited) £'000	(audited) £'000
Loan stock interest	608	604	1,036
Bank interest	1	4	5
	609	608	1,041

7. Investments held at fair value through profit or loss

Company	Unquoted & Total
	£'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

Ordinary Shares Fund	Unquoted & Total
	£'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

C Shares Fund	Unquoted & Total
	£'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

8. 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 £414,000 in the six months ended 31 December 2014 (31 December 2013: £391,000; 30 June 2014: £803,000).

Foresight Group also provides administration services to the Company via Foresight Fund Managers Limited, and received fees excluding VAT of £84,000 during the six months ended 31 December 2014 (31 December 2013: £84,000; 30 June 2014: £167,000). 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 £60,000 for each of the Ordinary and C Shares funds).

At the balance sheet date there was £26,000 due to Foresight Group (31 December 2013: £39,000; 30 June 2014: £26,000).

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.

9. Related party transactions

There were no related party transactions in the period.

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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

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