Annual Financial Report
FORESIGHT VCT PLC
Chairman's Statement
Summary
* Net asset value per Ordinary Share as at 31 December 2009 was 39.8p compared
to 42.2p as at 31 December 2008.
* Top-up offer launched in October 2008 closed on 31 May 2009 having raised
£1.15 million.
* Three new investments were made in: @Futsal (£29,012), a growth capital
opportunity; Land Energy Limited (£200,000), an environmental opportunity;
and Diagnos Holdings Limited (£750,000), a management buy-out opportunity.
* Ten follow-on investments totalling £1,426,783. These were SkillsMarket
(£369,343), Closed Loop Recycling (£350,000), Silvigen (£214,494), ANT
(£128,400), Lynwood Group Holdings (£106,864), smartFOCUS Group (£86,250),
Clarity Commerce Solutions (£74,900), Sarantel Group (£50,000), Ffastfill
(£26,974) and Aigis Blast Protection (£19,558).
* Two realisations made: AIM listed smartFOCUS Group (£167,350) and a loan
repayment from DCG Group (£165,022).
Introduction and Results
During the last half of the year under review, stock markets stabilised as a
result of the belief that the worst of the banking crisis was over and the
positive effects of Government stimulus packages around the world had started to
filter through the economy. Stock Market sentiment remains fragile, while
trading and credit conditions continue to be difficult in many sectors of the
economy. Against this background the net asset value total return for the year
(made up of a NAV of 39.8p and a dividend of 1.0p per Ordinary Share paid during
the year) of the Ordinary Shares fund fell by 3.3% from 42.2p per share at 31
December 2008 to 40.8p per share at 31 December 2009.
The Company's objective is to maximise the level of tax-free dividends, either
generated from income or from capital profits realised on the sale of
investments. The Board is not, however, recommending a final dividend for the
year ended 31 December 2009.
Portfolio Review
Notwithstanding difficult trading conditions, the performance of a number of
portfolio companies continued to improve, reflecting growing demand and strong
sales pipelines, most notably Diagnos Holdings, Camwood, DCG Group and Trilogy
Communications.
The investment in Diagnos Holdings was made in February 2009 and the company is
trading well in terms of both revenues and profitability. Diagnos develops and
sells sophisticated automotive diagnostic software and hardware to independent
mechanics and garages to allow them to service and repair vehicles. As cars
become increasingly sophisticated, they also become more reliant on electronic
systems to run functions such as fuel injection and engine management systems.
To fix any fault a mechanic needs a diagnostic software tool such as those
produced by Diagnos to enable them to 'talk' to the computer running the process
or system. The company is currently working on a new range of automotive
diagnostic products for the garage market, as well as introducing its existing
products in France and Germany.
Camwood's AppDNA software division, which is the market-leader in automated
application compatibility for virtualisation, desktop and server operating
system projects, has made good progress. The company has won a number of major
deals with large corporations in the US and Europe, and has also developed a
global network of partnerships. It has a strong pipeline of opportunities for
further contract wins. The company is currently enjoying a period of rapid sales
growth and improved profitability.
DCG Group, a managed service provider for enterprise data storage, backup and
recovery, has been successful in building its recurring revenues despite the
economic climate. During the year the company released its SME managed service,
DCG Pro, which has been well received.
Trilogy Communications is continuing to build partnerships with large
international defence companies and its pipeline of sales opportunities has
continued to grow. In recognition of the company's progress in foreign markets,
Trilogy Communications was recently awarded the Queen's Award for Enterprise in
the International Trade category.
ANT recently announced significantly improved results for the year ended 31
December 2009. The company confirmed a 27% increase in revenues to £4.7 million
(2008: £3.7 million) and a reduced loss of £0.7 million (2008: £1.0 million).
Cash at the year end remained strong at £5.0 million.
Closed Loop Recycling is finalising a further £6 million funding round to enable
the company to purchase new capital equipment, refinance short-term debt and
provide additional working capital required due to delays in full commissioning
resulting from longer than expected timescales in customer product audits. These
product audits have now largely been completed and initial orders are now being
received from several large UK and multinational companies. This project has
taken longer to get to full operating output than originally planned resulting
in significantly higher costs than budgeted. We remain confident, however, that
following the current financing round, Closed Loop has the potential to become a
significantly profitable business.
Sarantel Group, an AIM-listed company, announced that revenues for the year
ended 30 September 2009 were £2.8 million, a 50% increase over the same period a
year earlier. Pre-tax losses were £3.0 million, a 36% reduction from the
corresponding period in 2008. High value markets for its military and satellite
antennas have resulted in these areas generating 40% of sales (2008: 16%) at
high margins.
Despite these encouraging developments, the portfolio was not unaffected by the
impact of the difficult economic and trading conditions with the impact of
tougher credit conditions affecting a number of portfolio companies as follows:
Reflecting poorer first half trading, an impairment of £409,568 has been taken
against the previous carrying value of Aigis Blast Protection. Management has
taken rapid action to reduce the cost base through redundancies, senior
management pay cuts and other cost-cutting measures in order to see the company
through to break-even. The Company invested £19,558 in Aigis Blast Protection
during the year.
Demand from recruitment companies for SkillsMarket's products and services
suffered as a consequence of general trading conditions within the recruitment
industry. Net proceeds of £1.5 million were raised from existing and new
shareholders in August 2009, of which Foresight VCT invested £335,000 (along
with an earlier investment of £34,343), to provide working capital. We continue
to closely monitor the progress of this investment in which a number of
management changes have been made and new products launched. An impairment has
been taken against this investment of £1,329,902.
The Board of Oxonica is transitioning the company towards a minimal cost, pure
royalty business model. Oxonica delisted from AIM on 4 August 2009 and reduced
its costs substantially, implementing a redundancy programme and closing its
Begbroke facility. Partnership discussions are being held for all of its
businesses, with the aim of establishing profitable relationships, based
primarily on royalties from partners' product sales. This holding currently has
a value of £106,347.
Investment Activity
Purchases
Three new investments totalling £979,012 were made in the period in @Futsal
(£29,012), a growth capital opportunity in the leisure area; Land Energy
(£200,000), an environmental opportunity; and Diagnos Holdings (£750,000), a
management buy-out opportunity (noted above).
@Futsal Limited has been established by the founding team of Covion (the
successful Foresight investment sold to Balfour Beatty in 2007 for £33 million
at a multiple of over four times cost) to roll out a chain of indoor football
centres of which two are now fully operational, in Swindon and Cardiff. Futsal
is the fastest growing indoor sport in the World with 30 million people playing
internationally. The sport has not yet developed in the UK but, as the only form
of small sided football supported by the FA, UEFA and FIFA and with the support
of major sports brands, it is rapidly gaining momentum.
Land Energy has been set up to exploit the growing demand for wood pellets as a
renewable fuel, and to generate renewable power from virgin wood through a
series of plants countrywide. These plants will generate electricity for sale to
the grid and at the same time use the heat generated for pellet production or
for supply to a nearby user. The company will therefore be both a pellet
producer and a combined heat and power ("CHP") generation operator. The UK
Government has identified CHP as a highly efficient form of energy use, further
incentivised in April 2009 when it became eligible for double Renewable
Obligation Certificates.
Ten follow-on investments totalling £1,426,783 were also made during the year
under review. These were SkillsMarket (£369,343), Closed Loop Recycling
(£350,000), Silvigen (£214,494), ANT (£128,400), Lynwood Group Holdings
(£106,864), smartFOCUS Group (£86,250), Clarity Commerce Solutions (£74,900),
Sarantel Group (£50,000), Ffastfill (£26,974) and Aigis Blast Protection
(£19,558).
Several small market purchases were made in selected AIM listed companies
currently held in the portfolio believed to be trading significantly below their
underlying real value. These include ANT plc, smartFOCUS Group plc, Clarity
Commerce Solutions plc, Sarantel Group plc and Ffastfill plc noted above.
A further investment of £350,000 was provided to Closed Loop Recycling to assist
the company to work through commissioning delays prior to finalising its £6
million further fund-raising.
Silvigen has positioned itself to supply the biomass fuel needs of the UK power
generation sector, which is driven by a number of regulatory incentives.
Silvigen raised £1.2 million in June 2009 and a further £300,000 in December
2009, of which Foresight VCT invested £214,494, to provide ongoing working
capital required as a result of operational delays. The commissioning of its
wood pelleting plant is now close to completion with initial production achieved
in October 2009.
The investment in Lynwood Group Holdings of £106,864 was used to fund an
increase in capacity for i-plas, to satisfy its growing sales pipeline for
plastic building products, an area of plastics recycling which has significant
growth potential.
Realisations
Following the market purchase of 1,600,000 (£86,250) smartFOCUS shares during
the summer, 1,300,000 shares were later sold, following a period of improved AIM
market conditions, for £167,350, a return of 2.4 times on the cost of the shares
sold.
A loan repayment of £165,022 was received from DCG Group during December 2009.
Valuation Policy
Investments held by the Company have been valued in accordance with the
International Private Equity and Venture Capital (IPEVC) valuation guidelines
(September 2009) developed by the British Venture Capital Association and other
organisations. Through these guidelines investments are valued as defined at
'fair value'. Ordinarily, unquoted investments will be valued at cost for a
limited period following the date of acquisition, being the most suitable
approximation of fair value unless there is an impairment or significant
accretion in value during the period. Quoted investments and investments traded
on AIM and PLUS (formerly OFEX) are valued at the bid price as at 31 December
2009. The portfolio valuations are prepared by Foresight Group and are subject
to approval by the Board.
Share Issues and Share Buy-backs
The recent top-up offer raised gross proceeds of £1.3 million between its launch
in October 2008 until it closed on 31 May 2009. Of this total, £1.1 million was
raised in the current period through the issue of 2,648,830 Ordinary Shares at
prices ranging from 42.0p to 47.0p per share. These funds will assist your
Company in remaining an active investor in the current market.
Additionally, 58,335 shares were issued under the dividend reinvestment scheme
at 39.1p per share raising proceeds of £23,000.
All of these share issues were under the new VCT provisions which commenced on
6 April 2006, namely: 30% upfront income tax relief which can be retained by
qualifying investors if the shares are held for the minimum five year holding
period.
As part of the Company's active buy-back programme, during the period 945,586
Ordinary Shares were purchased for cancellation at a cost of £323,000,
representing an average discount of 14.1% to net asset value.
On 28 January 2010 the Company announced the publication of a prospectus to
raise up to £10,000,000 by way of an issue of Planned Exit Shares, a new share
class subsequently approved by shareholders on 23 February 2010. From launch
until the date of this announcement 5,035,864 Planned Exit Shares were issued at
100.0p per share.
Annual General Meeting
The Company's Annual General Meeting will take place on 18 May 2010. I look
forward to welcoming you to the meeting, which will be held in Sevenoaks.
Outlook
The volatility and poor sentiment of the financial markets as well as the
increasing difficulty in raising debt finance have proved a double edged sword
for the Company. On the one hand Foresight Group's deal flow, particularly in
the environmental infrastructure sector where it is an established leader,
remains strong. In particular, potential investee companies are finding
financial institutions currently less inclined to invest than in the past. This
is partly evidenced by the number of new and follow-on investments made during
the year. On the other hand, generally and within the portfolio there is
evidence of trade sales being delayed or terminated as a result of the lack of
finance available to potential acquirers. In addition to the small number of
realisations in the period, discussions have also been held by several investee
companies which may or may not lead to trade sales in the year ahead.
The Board and Foresight Group are conscious that we are in a period of economic
slowdown and tight credit conditions and all investee companies are being
encouraged to keep a tight control on costs and conserve cash.
Despite the uncertain economic outlook your Directors believe that the portfolio
contains a number of well positioned, growing companies. They are also
optimistic that some of the more recent investments in the environmental
infrastructure field may prove to be less affected by general economic
conditions.
Peter Dicks
Chairman
19 April 2010
For further information please contact:
Gary Fraser, Foresight Fund Managers Limited Tel: 01732 471800
The Disclosure and Transparency Rules ("DTR") of the UK Listing Authority
require certain disclosures in relation to the annual financial report, as
follows:
Principal risks, risk management and regulatory environment
The Board believes that the principal risks faced by the Company
are:
* Economic risk - events such as an economic recession and movement in
interest rates could affect smaller companies' performance and valuations.
* Loss of approval as a Venture Capital Trust - the Company must comply with
Section 274 of the Income Tax Act 2007 which allows it to be exempted from
capital gains tax on investment gains. Any breach of these rules may lead to
the Company losing its approval as a VCT, qualifying shareholders who have
not held their shares for the designated holding period having to repay the
income tax relief they obtained and future dividends paid by the Company
becoming subject to tax.
* Investment and strategic - inappropriate strategy, poor asset allocation or
consistent weak stock selection might lead to under performance and poor
returns to shareholders.
* Regulatory - the Company is required to comply with the Companies Acts, the
rules of the UK Listing Authority and United Kingdom Accounting Standards.
Breach of any of these might lead to suspension of the Company's Stock
Exchange listing, financial penalties or a qualified audit report.
* Reputational - inadequate or failed controls might result in breaches of
regulations or loss of shareholder trust.
* Operational - failure of the Manager's accounting systems or disruption to
its business might lead to an inability to provide accurate reporting and
monitoring.
* Financial - inadequate controls might lead to misappropriation of assets.
Inappropriate accounting policies might lead to misreporting or breaches of
regulations.
* Market risk - investment in AIM traded, PLUS traded and unquoted companies
by nature involve a higher degree of risk than investment in companies
traded on the main market. In particular, smaller companies often have
limited product lines, markets or financial resources and may be dependent
for their management on a smaller number of key individuals. In addition,
the market for stock in smaller companies is often less liquid than that for
stock in larger companies, bringing with it potential difficulties in
acquiring, valuing and disposing of such stock.
* Liquidity risk - the Company's investments may be difficult to realise. The
fact that a share is traded on AIM does not guarantee its liquidity. The
spread between the buying and selling price of such shares may be wide and
thus the price used for valuation may not be achievable.
The Board seeks to mitigate the internal risks by setting policy, regular review
of performance, enforcement of contractual obligations and monitoring progress
and compliance. In the mitigation and management of these risks, the Board
applies the principles detailed in the 'Turnbull' guidance.
Statement of Directors' Responsibilities
The Directors are responsible for preparing the Directors' Report and the
financial statements, in accordance with applicable United Kingdom law and
United Kingdom Generally Accepted Accounting Practice.
Company law requires the Directors to prepare financial statements for each
financial year. Under that law the Directors have elected to prepare the
financial statements in accordance with United Kingdom Generally Accepted
Accounting Practice (United Kingdom Accounting Standards and applicable law).
Under company law the Directors must not approve the financial statements unless
they are satisfied that they give a true and fair view of the state of affairs
of the Company and of the profit or loss of the Company for that period.
In preparing these financial statements, the Directors are required to:
- select suitable accounting policies and then apply them consistently;
- make judgements and estimates that are reasonable and prudent; and
- state whether applicable accounting standards have been followed, subject to
any material departures disclosed and explained in the financial statements.
The Directors are responsible for keeping proper accounting records that are
sufficient to show and explain the Company's transactions and disclose with
reasonable accuracy at any time the financial position of the Company and enable
them to ensure that its financial statements comply with the Companies Act
2006. They are also responsible for safeguarding the assets of the Company and
hence for taking reasonable steps for the prevention and detection of fraud and
other irregularities.
Under applicable law and regulations, the Directors are also responsible for
preparing a Directors' Report (including Business Review), Directors'
Remuneration Report and Corporate Governance Statement that comply with that law
and those regulations.
The Directors are responsible for the maintenance and integrity of the corporate
and financial information included on the Company's website. Legislation in the
UK governing the preparation and dissemination of financial statements may
differ from legislation in other jurisdictions.
The Financial Statements are published on www.foresightgroup.eu a website
maintained by Foresight Group. The maintenance and integrity of the website is,
so far as it relates to the Company, the responsibility of Foresight Group. The
work carried out by the auditors does not involve consideration of the
maintenance and integrity of this website and, accordingly, the auditors accept
no responsibility for any changes that have occurred to the accounts since they
were initially presented on the website. Visitors to the website need to be
aware that legislation in the United Kingdom governing the preparation and
dissemination of the accounts may differ from legislation in other
jurisdictions.
Responsibility Statement of the Directors in respect of the Annual Financial
Report
We confirm that to the best of our knowledge:
- the financial statements, prepared in accordance with the applicable set of
accounting standards, give a true and fair view of the assets, liabilities,
financial position and profit or loss of the Company; and
- the Directors' Report includes a fair review of the development and
performance of the business and the position of the issuer together with a
description of the principal risks and uncertainties that they face.
Audited Profit and Loss Account
for the year ended 31 December 2009
  Year to    Year to
 31 December 2009  31 December 2008
 Revenue Capital Total  Revenue Capital Total
 £'000 £'000 £'000  £'000 £'000 £'000
Investment holding - 3,547 3,547 Â - (6,332) (6,332)
gains/(losses)
Realised losses on - (3,988) (3,988) Â - (487) (487)
investments
Income 441 - 441 Â 490 - 490
Investment management fees (100) (299) (399) Â 44 131 175
Other expenses (318) - (318) Â (336) - (336)
------------------------- --------------------------
Return/(loss) on ordinary 23 (740) (717) Â 198 (6,688) (6,490)
activities before taxation
Taxation - - - Â - - -
------------------------- --------------------------
Return/(loss) on ordinary 23 (740) (717) Â 198 (6,688) (6,490)
activities after taxation
------------------------- --------------------------
Return per share 0.0p  (1.5)p  (1.5)p  0.4p  (14.5)p  (14.1)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 Profit and Loss Account are derived
from continuing operations. No operations were acquired or discontinued in the
year.
The Company has no recognised gains or losses other than those shown above,
therefore no separate statement of total recognized gains and losses has been
presented.
Audited Reconciliation of Movement in Shareholders' Funds
for the year ended 31 December 2009
Share Capital
Called-up premium Distributable redemption
 share capital account reserve reserve Total
 £'000 £'000 £'000 £'000 £'000
As at 1 January 440 8,626 17,572 - 26,638
2008
Share issues in 37 2,148 - - 2,185
the period
Expenses on - Â (83) - - Â (83)
share issues
Repurchase of  (14) -  (525) 14  (525)
shares
Dividend paid - - Â (2,155) - Â (2,155)
Dividend 1 126 Â (127) - -
reinvested
Net realised
losses on - - Â (487) - Â (487)
investments
Net decrease in
the value of - - Â (6,332) - Â (6,332)
investments
Management fees
charged to - - 131 - 131
capital
Return for the - - 198 - 198
year
-----------------------------------------------------------------
As at 31 464 10,817 8,275 14 19,570
December 2008
-----------------------------------------------------------------
Share Capital
Called-up premium Distributable redemption
 share capital account reserve reserve Total
 £'000 £'000 £'000 £'000 £'000
As at 1 January 464 10,817 8,275 14 19,570
2009
Share issues in 25 1,146 - - 1,171
the period
Expenses on - Â (54) - - Â (54)
share issues
Repurchase of  (9) -  (323) 9  (323)
shares
Dividend paid - - Â (467) - Â (467)
Dividend 1 22 Â (23) - -
reinvested
Net realised
losses on - - Â (3,988) - Â (3,988)
investments
Net increase in
the value of - - 3,547 - 3,547
investments
Management fees
charged to - - Â (299) - Â (299)
capital
Return for the - - 23 - 23
year
-----------------------------------------------------------------
As at 31 481 11,931 6,745 23 19,180
December 2009
-----------------------------------------------------------------
Audited Balance Sheet
at 31 December 2009
31 December 31 December
 2009  2008
 £'000 £'000  £'000 £'000
Non-current assets
Investments at fair value through profit or loss  17,095   15,512
---------- ---------
Current assets
Debtors - amounts receivable in less than one
year 1,306 Â Â 1,423
Money market securities and other deposits 570 Â Â 2,750
Cash 233 Â Â 94
------- -------
 2,109   4,267
Creditors
Amounts falling due within one year (90) Â Â (209)
------- -------
Net current assets  2,019   4,058
Debtors - amounts receivable in more than one
year  66   -
---------- ---------
Net assets  19,180   19,570
---------- ---------
Capital and reserves
Called-up share capital  481   464
Share premium account  11,931   10,817
Distributable reserve  6,745   8,275
Capital redemption reserve  23   14
---------- ---------
Equity shareholders' funds  19,180   19,570
---------- ---------
Net asset value per share  39.8p   42.2p
---------- ---------
Audited Cash Flow Statement
for the year ended 31 December 2009
 Year to Year to
        31 December 31 December
 2009 2008
 £'000 £'000
 2009 2008
Cash flow from operating activities
Investment income received 125 213
Deposit and similar interest received 143 248
Investment management fees paid (79) (272)
Secretarial fees paid (115) (59)
Other cash payments (207) (252)
--------------------------------------
Net cash outflow from operating activities (133) (122)
and returns on investment
Taxation - Â -
--------------------------------------
Returns on investment and servicing of
finance
Purchase of unquoted investments and (2,406) (2,827)
investments quoted on AIM
Net proceeds on sale of unquoted 165 133
investments
Net proceeds on sale of quoted investments 167 1,190
Net proceeds from deferred consideration 110 -
--------------------------------------
Net capital outflow from financial (1,964) (1,504)
investment
Equity dividends paid (490) (2,282)
--------------------------------------
Management of liquid resources
Subscription to money market - Â (2,200)
Redemption from money market 2,204 4,908
Income from money market (24) (238)
--------------------------------------
 2,180 2,470
Financing
Proceeds of fund raisings 1,000 1,956
Expenses of fund raisings (48) (72)
Dividends reinvested 23 127
Repurchase of own shares (429) (520)
--------------------------------------
Net cash inflow from financing activities 546 1,491
--------------------------------------
Increase in cash 139 53
--------------------------------------
Reconciliation of net cash flow to
movement in net cash
Increase in cash for the year 139 53
Net cash at start of year 94 41
--------------------------------------
Net cash at end of year 233 94
--------------------------------------
Reconciliation of net income to net cash
flow from operating activities
Total deficit before taxation (717) (6,490)
Unrealised (gains)/losses on investments (3,547) 6,332
Realised losses on investments 3,988 487
(Decrease)/increase in creditors (3) 13
Decrease/(increase) in debtors 146 (464)
--------------------------------------
Net cash outflow from operating activities (133) (122)
--------------------------------------
Analysis of changes in net debt
 At  At
 1 January Cash 31 December
 2009 flow 2009
 £'000 £'000 £'000
Cash and cash equivalents 94 139 233
----------------------------------
Notes
1. Â Â The audited Annual Financial Report has been prepared on the basis of
accounting policies set out in the statutory accounts of the Company for the
year ended 31 December 2009. Â All investments held by the Company are classified
as 'fair value through the profit and loss'. Unquoted investments have been
valued in accordance with IPEVC guidelines. Quoted investments are stated at bid
prices in accordance with the IPEVC guidelines and Generally Accepted Accounting
Practice.
2. Â Â These are not statutory accounts in accordance with S436 of the Companies
Act 2006. The full audited accounts for the year ended 31 December 2009, which
were unqualified and did not contain any statements under S498(2) of Companies
Act 2006 or S498(3) of Companies Act 2006, will be lodged with the Registrar of
Companies. Statutory accounts for the year ended 31 December 2008 including an
unqualified audit report and containing no statements under the Companies Act
1985 have been delivered to the Registrar of Companies.
3. Â Â Copies of the Annual Report will be sent to shareholders and will be
available for inspection at the Registered Office of the Company at ECA Court,
South Park, Sevenoaks, Kent TN13 1DU and can be accessed on the following
website:www.foresightgroup.eu <
http://www.foresightgroup.eu/>
4. Â Â Net asset value per share
Net asset value per Ordinary Share is based on net assets at the year end of
£19,180,000 (2008: £19,570,000), and on 48,137,369 (2008: 46,375,790) Ordinary
Shares, being the number of Ordinary Shares in issue at that date.
5. Â Â Return per share
 Year to Year to
        31 December 31 December
 2009 2008
 £'000 £'000
Total return after taxation (717) Â (6,490)
Basic return per share (note a)  (1.5)p  (14.1)p
--------------------------------------
Revenue return from ordinary activities 23 198
after taxation
Revenue return per share (note b) 0.0p 0.4p
--------------------------------------
Capital return from ordinary activities (740) Â (6,688)
after taxation
Capital return per share (note c)  (1.5)p  (14.5)p
--------------------------------------
Weighted average number of shares in issue 48,191,161 46,155,407
in the year
Notes:
a) Total return per share is total return after taxation divided by the weighted
average number of shares in issue during the year.
b) Revenue return per share is net revenue after taxation divided by the
weighted average number of shares in issue during the year.
c) Capital return per share is total capital return after taxation divided by
the weighted average number of shares in issue during the year.
6. Â Â The Annual General Meeting will be held at 12.00pm on 18 May 2010 at ECA
Court, 24-26 South Park, Sevenoaks, Kent, TN13 1DU.
7. Â Â Income
 Year to Year to
        31 December 31 December
 2009 2008
 £'000 £'000
Overseas based Open Ended Investment 16 210
Companies ("OEICS")
Loan stock interest 333 225
Interest received on VAT refunded 84 28
Bank deposits 7 18
Other 1 9
--------------------------------------
 441 490
--------------------------------------
8. Â Â Investments
 2009 2008
 £'000 £'000
Quoted investments 4,183 3,495
Unquoted investments 12,912 12,017
------------------
 17,095 15,512
------------------
 Quoted on AIM Unquoted Total
 £'000 £'000 £'000
Book cost as at 1 January 2009 11,631 18,505 30,136
Investment holding losses (8,136) (6,488) (14,624)
--------------------------------
Valuation at 1 January 2009 3,495 12,017 15,512
Quoted to unquoted transfer - cost (2,804) 2,804 -
Quoted to unquoted transfer - investment holding
loss 1,702 (1,702) -
Purchases at cost 367 2,039 2,406
Sale proceeds (167) (165) (332)
Realised gains/(losses) 102 (4,200) (4,098)
Investment holding gains 1,488 2,119 3,607
--------------------------------
Valuation at 31 December 2009 4,183 12,912 17,095
--------------------------------
Book cost at 31 December 2009 9,129 18,983 28,112
Investment holding losses (4,946) (6,071) (11,017)
--------------------------------
Valuation at 31 December 2009 4,183 12,912 17,095
--------------------------------
9. Â Â Related party transactions
Foresight Group LLP and Foresight Fund Managers Limited are considered to be
Related Parties of the Company.
Foresight Group which acts as investment manager to the Company in respect of
its venture capital investments earned fees of £399,111 during the year (2008:
£600,496). Foresight Fund Managers Limited, Company Secretary, received fees
including VAT of £115,000 (2008: £87,965) during the year.
At the balance sheet date, there was £1,312 (2008: £nil) due to Foresight Group
LLP and £29,375 (2008: £28,750) due to Foresight Fund Managers Limited. No
amounts have been written off in the year in respect of debts due to or from the
related parties.
G#1405453]
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