Interim Results - Part 2

Foresight Technology VCT PLC
26 June 2001

PART 2

 
Unaudited Notes to the Financial Statements

1. All revenue and capital items in the Statement of Total Return derive from
continuing operations.
 
2. In accordance with the policy statement published under 'Management and
Administration' in the Company's prospectuses dated 1 October 1997 and 14
October 1999, the Directors have charged 75% of the investment management
expenses to the capital reserve.
 
3. Earnings for the first six months should not be taken as a guide to the
results for the full year.
 
4. The 'C' Shareholders will be entitled to receive any dividends paid out of
the net income derived from the net assets allocable to the 'C' Shares.
 
5. An interim dividend of 2p per 'C' Share will be payable to 'C' Shareholders
on the register on 6 July 2001 payable on 26 July 2001 from the revenue
reserves of the 'C' Shares fund.
 
6. The Company revoked its status as an investment company in March 2000, so
that under the Articles of Association, it can regard capital reserves as
profits of the Company available for distribution. The Company has not
re-applied for investment company status.
 
7. Basic return per Ordinary Share and 'C' Share is based on the net revenue on
ordinary activities after taxation and is based on 13,114,102 Ordinary Shares
(31 March 2000: 11,108,500) and 32,555,790 'C' Shares (31 March 2000:
14,402,435), these being the weighted average Ordinary Shares and 'C' Shares
in issue during the year.
 
8. The net asset value per share for both the Ordinary Shares and the 'C' Shares
has been calculated on the appropriate allocation of the Company's assets and
liabilities. Other than expenses specifically attributable to one fund or the
other, one quarter of costs incurred since 1 October 2000 has been allocated
to the Ordinary Shares fund.

9. The financial information for the six months ended 31 March 2001 and 31 March
2000 has not been audited. The information for the year ended 30 September
2000 does not comprise full financial statements within the meaning of
section 240 of the Companies Act 1985. The financial statements for the year
ended 30 September 2000 have been filed with the Registrar of Companies. The
auditors have reported on those financial statements and that report was
unqualified and did not contain a statement under Section 237(2) of the
Companies Act 1985.

10. Capital & Reserves
                                                                              
  Total            Called up share         Share Premium             Cancelled
                           capital               Account         Share Premium
                                                                       account
                                 £                     £                     £
  At 1                    455,653            40,532,782                     - 
  October                                                                     
  2000   

  Shares                                                                      
  issued/(bought            7,335               635,660                     - 
  back)                                                                   
  
  Transfer                                                                    
  to                            -          (10,000,000)            10,000,000 
  cancelled   
  share premium       
  account         
  
  Realisation   
  of previously                 -                    -                      -
  unrealised   
  diminution 
   
  Net capital                   -                    -                      -
  reduction     
  in the period
      
  Write off to                  -                     -           (3,460,000) 
  cancelled                                                                   
  share premium                                                                 
  account                                                                     

  Net                           -                     -                     - 
  revenue for the                                                               
  period  
                                                                    
  Proposed                      -                     -                     - 
  Dividends                                                                   
               -------------------  --------------------  --------------------
                              
  At 31                   462,988            31,168,442             6,540,000 
  March 2000                                                                  
               -------------------  --------------------  --------------------

  Ordinary    
  Shares      
  fund     

  At 1                    130,438            10,360,250                     - 
  October      
  2000 
       
  Shares     
  issued/                   4,086               335,637                     - 
  (bought back)
          
  Transfer        
  to                            -           (5,000,000)             5,000,000 
  cancelled         
  share            
  premium     
  account
     
  Realisation     
  of                                                                          
  previously                    -                     -                     - 
  unrealised                                                                  
  diminution  
                                                                
  Net                                                                         
  capital                       -                     -                     - 
  reduction                                                                   
  in the                                                                      
  period 
                                                                     
  Write off                                                                   
  to                            -                     -           (2,714,079) 
  cancelled                                                                   
  share                                                                       
  premium                                                                     
  account  
                                                                   
  Net                           -                     -                     - 
  revenue                                                                     
  for the                                                                     
  period                                                                      
               -------------------  --------------------  --------------------
                              
  At 31                   134,524             5,695,887             2,285,921 
  March 2000                                                                  
               -------------------  --------------------  --------------------

                                 
                  Realised Capital   Unrealised           Revenue        Total
  Total                    Reserve  Capital  Reserve      Reserve             
                                 £              £               £            £
  At 1                (2,849,412)      18,901,245         851,881   57,892,149 
  October                                                                     
  2000        

  Shares                     
  issued/(bought    
  back)                       -               -                -       642,995
                              
  Transfer       
  to                         
  cancelled   
  share     
  premium                     -               -                -             -
  account 
    
  Realisation    
  of      
  previously             (73,845)           73,845             -             -
  unrealised    
  diminution 
      
  Net   
  capital               (536,743)      (20,152,599)            -   (20,689,342)
  reduction 
  in the  
  period 
    
  Write off        
  to                    3,460,000                    -         -             - 
  cancelled    
  share       
  premium      
  account 
    
  Net                           -                    -     415,995      415,995 
  revenue    
  for the   
  period 
     
  Proposed                      -                    -   (656,927)    (656,927)
  Dividends                                                               
               -------------------  -------------------  --------   ----------
                                                      
  At 31                         -          (1,177,509)   610,949   37,604,870 
  March 2000                                                                  
               -------------------  -------------------  --------   ----------  
                  
                                                                              
  Ordinary                                                                    
  Shares                                                                      
  fund                                                                        

  At 1                (2,528,795)            19,373,191   149,175  27,484,259 
  October                                                                     
  2000 
                                                                       
  Shares                                                               
  issued/                       -                     -        -      339,723   
  (bought back)                                                                 
 
  Transfer                                                                  
  to                            -                     -        -            -  
  cancelled                                                                   
  share                                                                       
  premium                                                                     
  account 
                                                                    
  Realisation                                                                 
  of                                                                         
  previously            (12,259)                 12,259        -            -  
  unrealised                                                                  
  diminution  
                                                                
  Net                                                              
  capital               (173,025)          (18,752,952)        -  (18,752,952)  
  reduction                                                                   
  in the                                                                      
  period 
                                                                     
  Write off                                                                   
  to                  (2,714,079)                     -         -           -   
  cancelled                                                                   
  share                                                                       
  premium                                                                     
  account 
                                                                    
  Net                           -                     -   (25,387)    (25,387) 
  revenue                                                                
  for the                                                                     
  period                                                                      
               -------------------  --------------------  --------   ---------- 
              
  At 31                         -               632,498   123,788    8,872,618 
  March 2000                                                                  
               -------------------  --------------------  ---------  ---------- 
                
                                                                              
                   Called up share         Share Premium             Cancelled
                           capital               Account         Share Premium
                                                                       account
                                 £                     £                     £
  Total

  'C' Shares                                                                  
  fund                                                                        

  At 1                    325,215            30,172,532                     - 
  October                                                                     
  2000                                                                        

  Shares                                                                      
  issued/(bought            3,249               300,023                     - 
  back)                                                                   

  Transfer                                                                    
  to                            -           (5,000,000)             5,000,000 
  cancelled                                                                   
  share                                                                       
  premium                                                                     
  account                                                                     

  Realisation                                                                 
  of                                                                          
  previously                    -                     -                     - 
  unrealised                                                                  
  diminution                                                                  

  Net                                                                         
  capital                       -                     -                     - 
  reduction                                                                   
  in the                                                                      
  period                                                                      

  Write off                                                                   
  to                            -                     -             (745,921) 
  cancelled                                                                   
  share                                                                       
  premium                                                                     
  account                                                                     

  Net                           -                     -                     - 
  revenue                                                                     
  for the                                                                     
  period                                                                      

  Proposed                      -                     -                     - 
  dividends                                                                   
               -------------------  --------------------  --------------------
  At 31                   328,464            25,472,555             4,254,079 
  March 2001                                                                  
               -------------------  --------------------  --------------------

                                                                              
                  Realised       Unrealised  Revenue Reserve             TOTAL
           Capital Reserve  Capital Reserve                                   
                         £                £                £                 £
  Total

  'C'                                                                         
  Shares                                                                      
  fund                                                                        

  At 1          (320,617)        (471,946)          702,706        30,407,890 
  October                                                                     
  2000                                                                        

  Shares                                                                      
  issued/               -                -                -           303,272 
  (bought                                                                     
  back)                                                                       

  Transfer                                                                     
  to                    -                -                -                 - 
  cancelled                                                                     
  share                                                                       
  premium                                                                     
  account                                                                     
                                                                              
  Realisation                                                                   
  of             (61,586)           61,586                -                 - 
  previously                                                                    

  unrealised                                                                    

  diminution                                                                    


  Net                                                                         
  capital       (363,718)      (1,399,647)                -       (1,763,365) 
  reduction                                                                     
  in                                                                       
  the                                                                         
  period                                                                      
  
  Write                                                                       
  off to          745,921                -                -                 - 
  cancelled                                                                     
  share                                                                       
  premium                                                                     
  account                                                                     
                                                                              
  Net                   -                -          441,382           441,382 
  revenue                                                                     
  for                                                                         
  the                                                                         
  period                                                                      
  Proposed              -                -        (656,927)         (656,927) 
  dividends                                                                     
           ---------------  ---------------  ---------------  ----------------
                 
  At 31                 -      (1,810,007)          487,161        28,732,252 
  March                                                                       
  2001                                                                        
           ---------------  ---------------  ---------------  ----------------
                  
Following the revocation of investment company status, the directors deem the
realised capital reserves to be distributable.

During the six month period to 31 March 2001 the Company issued 493,600
Ordinary Shares and 60,600 'C' Shares pursuant to the exercise of warrants
and 343,000 'C' Shares with 'C' Warrants attached and on a one for five basis
pursuant to an offer for subscription dated 16 January 2001. The Company also
repurchased 85,000 Ordinary Shares and 78,743 'C' Shares in the market.
                                                                             
  11. Summary of       Fixed interest       Traded on AIM   Unlisted or traded
  investments              securities                                  on OFEX
  during the                                                                  
  period                                                                      
  Ordinary                                                                    
  Shares Fund                                                                 
                                    £                   £                    £
  Cost/valuation             552,145          18,499,902            3,949,353 
  at 30                                                                       
  September 2000                                                              
  Purchases at               724,179                   -              150,000 
  cost                                                                        
  Disposals at             (770,374)                   -                    - 
  cost/2000                                                                   
  valuation                                                                   
  Increase/(decrease)          (300)        (17,963,902)             (20,000) 
  in                                                                     
  unrealised                                                                  
  gains/(losses)                                                              
                   ------------------   ----------------     ---------------- 
                                                                              
  Cost/valuation             505,650             536,000            4,079,353 
  at 31 March                                                                 
  2001                                                                        
                   ------------------  ------------------  -------------------
  
  Book cost at               505,950             841,319            4,352,978 
  30 September                                                                
  2000                                                                        
  Unrealised                   (300)           (305,319)            (273,625) 
  gains/(losses)                                                              
  at                                                                          
  31 March 2001                                                               
                   -----------------    ----------------     ---------------- 
                             505,650             536,000            4,079,353 
                   ------------------   ----------------    ----------------- 
                                                                              
 
 11. Summary of   Listed Investments    Qualifying Loans                TOTAL
  investments                                                                 
  during the                                                                  
  period                                                                      
  Ordinary                                                                    
  Shares Fund                                                                 
                                    £                   £                    £
  Cost/valuation           2,456,250           1,020,000           26,477,650 
  at 30                                                                       
  September 2000                                                              
  Purchases at                     -             120,000              994,179 
  cost                                                                        
  Disposals at                     -                   -            (770,374) 
  cost/2000                                                                   
  valuation                                                                   
  Increase/(decrease)      (768,750)                   -         (18,752,952) 
  in                                                                     
  unrealised                                                                  
  gains/(losses)                                                              
                   ------------------  ------------------  ------------------ 
    Cost/valuation           1,687,500           1,140,000            7,948,503 
  at 31 March                                                                 
  2001                                                                        
                   ------------------  ------------------  -------------------
  
  Book cost at               475,758           1,140,000            7,316,005 
  30 September                                                                
  2000                                                                        
  Unrealised               1,211,742                   -              632,498 
  gains/(losses)                                                              
  at                                                                          
  31 March 2001                                                               
                   ------------------  ------------------   ----------------- 

                           1,678,500           1,140,000            7,948,503 
                   ------------------  ------------------    ---------------- 
                                                                              
  Summary of           Fixed interest      Traded on AIM    Unlisted or traded
  investments              securities                                  on OFEX
  during the                                                                  
  period                                                                      

  'C' Shares Fund                                                             
                                    £                  £                     £
  Cost/valuation          18,755,675          1,062,464             3,003,502 
  at 30 September                                                             
  2000                                                                        
  Reclassification                 -            499,996             (499,996) 
                                                                              
  Purchases at            14,135,100          1,000,000             3,796,094 
  cost                                                                        
  Disposals at          (18,636,700)                  -                     - 
  cost/2000                                                                   
  valuation                                                                   
  Increase/(decrease)         27,025          (740,072)             (686,600) 
  in unrealised                                                            
  gains/(losses)                                                              
                     ----------------  -----------------  ------------------- 

  Cost/valuation          14,281,100          1,822,388             5,613,000 
  at 31 March 2001                                                            
                     ----------------  -----------------  --------------------

  Book cost at 30         14,221,350          2,009,051             7,296,094 
  September 2000                                                              
  Unrealised                  59,750          (186,663)           (1,683,094) 
  gains/(losses)                                                              
  at                                                                          
  31 March 2001                                                               
                     ---------------    ---------------       --------------- 
                          14,281,100          1,822,388             5,613,000 
                     ----------------  ----------------    ------------------ 
                                                                              
  Summary of         Listed Investments     Qualifying Loans             TOTAL
  investments                                                                 
  during the                                                                  
  period                                                                      
  'C' Shares Fund                                                             
                                      £                    £                 £
  Cost/valuation                     -                    -        22,821,641 
  at 30 September                                                             
  2000                                                                        
  Reclassification                   -                    -                 - 
                                                                              
  Purchases at                       -                    -        18,931,194 
  cost                                                                        
  Disposals at                       -                    -      (18,636,700) 
  cost/2000                                                                   
  valuation                                                                   
  Increase/(decrease)                 -                    -       (1,399,647) 
  in                                                                      
  unrealised                                                                  
  gains/(losses)                                                              
                    -------------------  -------------------  --------------- 
  
  Cost/valuation                     -                    -        21,716,488 
  at 31 March                                                                 
  2001                                                                        
                    -------------------  -------------------  ----------------
  
  Book cost at 30                    -                    -        23,526,495 
  September 2000                                                              
  Unrealised                         -                    -       (1,810,007) 
  gains/(losses)                                                              
  at                                                                          
  31 March 2001                                                               
                     -----------------    -----------------   ----------------
                                                                              
                                     -                    -        21,716,488 
                     -----------------   ------------------   ----------------
                                                                              
12. Reconciliation of movements in shareholders' funds

                                                                              
                  Six months to           Six months to             Year Ended
                  31 March 2001           31 March 2000      30 September 2000
                              £                       £                      £
  Net finance                                                                 
  raised                                                                      
  Issues of             493,600                       -                 19,603
  Ordinary                                                                    
  Shares                                                                      
  Issues of             403,600              30,261,496             32,566,496
  'C' Shares                                                                  
  Expenses of          (35,342)             (1,815,690)            (2,034,787)
  'C' Shares                                                                  
  issue                                                                       
  Tax relief                  -                       -                 61,514
  on issue                                                                    
  expenses                                                                    
  Redemption          (153,877)                       -               (43,687)
  of Ordinary                                                                 
  Shares                                                                      
  Redemption           (64,986)                       -               (33,962)
  of 'C'                                                                      
  Shares                                                                      
                 --------------      ------------------     ------------------
                        642,995              28,445,806             30,535,177
                   ------------         ---------------        ---------------
  Revenue and                                                                 
  capital                                                                     
  retained                                                                    
  Total            (20,273,347)              30,246,187             28,245,871
  recognised                                                                  
  gains and                                                                   
  losses for                                                                  
  the period                                                                  
  Dividends           (656,927)            (11,889,529)           (11,889,553)
  on equity                                                                   
  shares                                                                      
                ------------     ----------------------    -------------------
                   (20,930,274)              18,356,658             16,356,318
                ---------------       -----------------    -------------------
  Net              (20,287,279)              46,802,464             46,891,495
  (reduction                                                                  
  in)/addition                                                                
  to                                                                          
  shareholders                                                                
  ' funds                                                                     
  Total net          57,892,149              11,000,654             11,000,654
  assets                                                                      
  attributable                                                                
  to equity                                                                   
  shareholders                                                                
  at the                                                                      
  beginning                                                                   
  of the                                                                      
  period                                                                      
                ---------------    --------------------    -------------------
  Total net          37,604,870              57,803,118             57,892,149
  assets                                                                      
  attributable                                                                
  to equity                                                                   
  shareholders                                                                
  at end of                                                                   
  the period                                                                  
                 --------------   ---------------------  ---------------------