Heading. Unaudited Interim Report i for the six month period ended 30 June Foresight VCT

Transcription

1 Heading Annual Report and Foresight Accounts VCT 31 March plc 2007 Unaudited Interim Report i for the six month period ended 30 June 2007 Foresight VCT

2 Foresight VCT plc f VCT Foresight VCT Objective The objective of Foresight VCT plc ( Foresight ) is to provide private investors with an attractive return from a portfolio of investments in fast-growing UK technology-based companies companies whose products or services depend to a significant extent on the application of scientific and technological skills or whose activities embrace a significant technology component as a major source of competitive advantage. VCT Tax Benefit for Shareholders beyond 6 April 2006 To obtain VCT tax reliefs on subscriptions up to 200,000 per annum, a VCT investor must be a qualifying individual over the age of 18 with UK taxable income. The tax reliefs for subscriptions from 6 April 2006 are: Income tax relief of 30% on subscription into new shares, which is retained by shareholders if the shares are held for more than five years. VCT dividends (including capital distributions of realised gains on investments) are not subject to income tax. Capital gains on disposal of VCT shares are tax free, whenever the disposal occurs Website: Contents Chairman s Statement 01 Advisers and Managers Report 03 Unaudited Profit and Loss Account 07 Unaudited Balance Sheet 08 Unaudited Cash Flow Statement 09 Unaudited Reconciliation of Movements in Shareholders funds 09 Notes to the Unaudited Financial Statements 10 Shareholder Information 13 Corporate Information

3 Unaudited Interim Report for the six month period ended 30 June Chairman s Statement I Summary Net asset value per new Ordinary Share as at 30 June 2007 was 74.6p (compared to 81.4p as at 16 January 2007, the date of the merger of the Ordinary and C Share funds). 1.6 million of new share capital was raised during the six months under review. The Company made a follow-on investment of 300,000 into High Integrity Solutions and 325,000 into Trilogy Communications. Proceeds of 756,000 realised from the sale of Rapide Communication and the redemption of loan stock from SmartFOCUS. During the six months under review the merger of the Ordinary Shares fund and C Shares fund was completed and this is the first report of the combined portfolio. The net asset value at 30 June 2007 decreased 8.4% to 74.6p per new Ordinary Share, compared to 81.4p per new Ordinary Share on 16 January 2007, the date of the merger. Among the Company s quoted holdings, Oxonica, Sarantel and ANT have disappointed. On 27 April Oxonica s shares were suspended (at 117.5p) from the AIM market following the termination of a contract for its fuel additive, Envirox. Following an agreed settlement with Petrol Ofisi, Oxonica s shares re-listed on 6 June but the impact of the contract loss on its share price was significant and at 30 June its shares were trading at 60.0p. Oxonica was Foresight VCT s largest holding and the movement in share price represented a fall of 4.8 million in the period. Sarantel announced 15 design wins for its antennae in its interim results to 31 March 2007 but continued to struggle to convert these wins into volume orders. Sales for the six months ended 31 March 2007 were 1.5 million against 2.3 million a year earlier. Existing investors including Foresight VCT have committed to provide 2.1 million in ongoing working capital for the business. On the other hand, SmartFOCUS increased revenues by 52% and delivered 918,000 in operating profit in the year to 31 December 2006 and continues to make strong progress. The company s share price improved from to 14.5p to 17.5p in the period, representing an uplift of some 600,000. Among the Company s unquoted portfolio companies, Actimax and Covion made encouraging progress and improved profitability in the period, while Skillsmarket successfully raised further capital to fund expansion. Actimax achieved 58% sales growth to 5.0 million in the year to 31 December 2006 and a four-fold increase in operating profits to 159,000. The company has continued to win new orders in the current year and is optimistic about its full year prospects. Covion Holdings continued to win new orders for its facilities management services from companies such as Britvic, Cooper Avon Tyres and Cosmetic Outsourcing Solutions International. As a result Covion reported revenues in excess of 20 million and profits in excess of 1 million for the year ended 31 December Skillsmarket successfully raised 2.8 million in June 2007 to fund its ongoing activities. Although still loss making the company is starting to achieve sales traction in its core markets. During the period the Company made follow-on investments of 300,000 in High Integrity Solutions Limited and 325,000 in Trilogy Communications Limited. High Integrity Solutions made progress in winning contracts for its software solutions for project engineers and has secured an order pipeline in excess of 5 million but continues to operate at a loss. Trilogy Communications raised a further 1.5 million from existing investors as it seeks to develop products for the defence and homeland security markets. I Realisations Foresight VCT received proceeds of 666,667 following the redemption of the loan stock from SmartFOCUS and a further 88,860 from the sale of the remaining holding in Rapide Communication (formerly Wire-e). ANT recently announced that the rollout of IPTV across its customer base was not accelerating as quickly as originally anticipated and that the expected reduction in current year revenues will result in a significantly greater loss for 2007 than originally envisaged. Peter Dicks Chairman

4 Foresight VCT plc 02 Chairman s Statement f VCT I Results The results for the six months from 1 January 2007 to 30 June 2007 are set out below. The net asset value per new Ordinary Share as at 30 June 2007 was 74.6p (31 December 2006: N/A). The total return (after tax) attributable to new Ordinary Shareholders was a loss of 5.6p (31 December 2006: N/A). Due to the merger of the Ordinary Shares fund and C Shares fund on 16 January 2007, comparative figures to 31 December 2006 are not applicable. The net asset value per new Ordinary Share immediately following the merger on 16 January was 81.4p. I Dividend The Company s dividend policy is to aim to distribute to shareholders a steady flow of dividends from income and realised capital gains. The Board is not recommending an interim dividend for the year ending 31 December 2007 at this time. I Valuation Policy Investments held by the Company have been valued in accordance with the International Private Equity and Venture Capital Valuation Guidelines (IPEVC) developed by the British Venture Capital Association and other organisations, under which investments are valued, as defined in the guidelines, at fair value. Ordinarily, unquoted investments will be valued at cost for the 12 months following the date of acquisition as the most suitable approximation of fair value unless there is an impairment in value during the period. Quoted investments and investments traded on AIM and OFEX are valued at the bid price as at 30 June The portfolio valuations are prepared by Foresight Venture Partners and are subject to approval by the Board. I Share Issues and Share Buybacks The Board is pleased to announce that during the period the top-up offer was closed, fully subscribed, in April 2007 having raised gross process of approximately 1.6 million from the issue of 1,974,248 New Ordinary Shares. The Dividend Investment Scheme raised approximately 36,000 in aggregate following the issue of 45,663 New Ordinary Shares as a result of the 2p per share dividend paid in January Both of the above share issues were under the new VCT provisions that 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 buyback programme, 1,800,000 Ordinary Shares were purchased for cancellation at a cost of 1,222,253. I Outlook The market in which Foresight VCT operates continues to be buoyant in terms of potential new investment opportunities. However, at this time, the combined portfolio is considered to be fully invested. Consequently, while your manager continues to monitor new opportunities it is currently limiting any further commitments to existing portfolio companies. Foresight Venture Partners continues to actively investigate liquidity opportunities within the portfolio, which, if successful, should provide the resources both to recommence making new investments and enable further distributions to shareholders. Peter Dicks Chairman September 2007

5 Unaudited Interim Report for the six month period ended 30 June Advisers and Managers Report THE VENTURE CAPITAL FUND The merger of the Ordinary Shares fund and C Shares fund took place on 16 January During the six months ended 30 June 2007 two follow-on investments were made at a cost of 625,000 (High Integrity Solutions 300,000 and Trilogy Communications 325,000). In accordance with the valuation guidelines, all investments are held at fair value unless this cannot be reliably measured and in such cases, when considered necessary, an explanation has been given in the individual company narratives. During the period no discounts have been applied to the quoted investments which are valued at bid price, in line with generally accepted practice in the venture capital market. The top ten investments as at 30 June 2007 are detailed below: SmartFOCUS Group plc (AIM listed) Provides software to enable accurate targeting and execution of marketing campaigns. The company is an established solution provider in this area with approximately 300 customers forming a wide customer base spread across financial services, retail, marketing services and other consumer-driven sectors. The company adds value to its customers marketing campaigns by linking with multiple databases, returning query results in seconds whilst presenting the results in an easily understandable graphic manner. Following the announcement of a positive set of annual results, Foresight sold part of its investment in July 2007 realising 1,000,000 and a profit over cost of 735,000. Dates of Investment: December 01 October 04 As at 30 June 2007 As at 31 December 2006 Year Ended: 31 December 2006 Amounts Invested 1,000,000 1,666,667 Sales 9,186 Valuation 3,481,150 3,551,048 Profit before Tax 918 % Equity/Voting Rights 21.4% 21.4% Net Assets 3,362 Valuation Methodology Bid price Retained Profit 611 Oxonica plc (AIM listed) Engineers the properties of materials at the nano-scale for application in fuel additives, UV protection and other products. The company announced sales for the year ended 31 December 2006 of 10.2 million, an eightfold increase on 2005 following successful contracts in its fuel additive and biodiagnostic divisions. However the company has recently suffered from the loss of a major contract. The Board is reviewing the Group s strategy for the development of its four divisions and announced that a future fundraising is planned. Dates of Investment: June 02 December 02 January 04 January 05 As at 30 June 2007 As at 31 December 2006 Year Ended: 31 December 2006 Amounts Invested 2,373,710 2,373,710 Sales 10,229 Valuation 3,409,865 8,240,507 Loss before Tax (3,130) % Equity/Voting Rights 12.5% 12.7% Net Assets 18,046 Valuation Methodology Bid price Retained Loss (3,016)

6 Foresight VCT plc 04 Advisers and Managers Report f VCT Aquasium Technology Limited Is engaged in the design, manufacturing and marketing of bespoke electron beam welding and vacuum furnace equipment. Its products are used in the processes of a wide range of manufacturing industries including automotive, electronics, medical, power generation and aerospace. Dates of Investment: October 01 April 03 August 05 As at 30 June 2007 As at 31 December 2006 Year Ended: 31 December 2006 Amounts Invested 1,400,000 1,400,000 Sales 10,487 Valuation 3,313,439 2,848,186 Loss before Tax (200) % Equity/Voting Rights 33.3% 33.3% Net Assets 300 Valuation Methodology Discounted earnings multiple Retained Loss (65) Covion Holdings Limited Provides total facilities management services ( TFM ), or in its terminology Facilities Infrastructure Services (FIS), to private clients in the office and industrial sectors. Covion manages all the client s facilities and subcontracts specific services where necessary. It seeks to form unique and close partnerships with its clients in the form of joint executive boards to which its site-based FIS manager reports. Key clients are Britvic, Logica, Anglian Windows and Sara Lee. Current year trading is healthy and on budget. Date of Investment: May 05 As at 30 June 2007 As at 31 December 2006 Period Ended: 31 December 2006 Amounts Invested 1,000,000 1,000,000 Sales 24,797 Valuation 3,119,316 2,626,466 Profit before Tax 575 % Equity/Voting Rights 12.0% 12.0% Net Assets 535 Valuation Methodology Discounted offer proceeds Retained Profit 289 Actimax plc Supplies digital telecommunications systems to small and medium sized customers. The company installs complex computer and telephone combined systems using components from suppliers such as Ascom, Alcatel, Cisco and Intertel. Actimax achieved net earnings before tax of 124,000 on revenues of 5 million for the year ended 31 December Since the last audited accounts the company has continued to grow revenues and profits. Dates of Investment: November 98 March 00 June 03 As at 30 June 2007 As at 31 December 2006 Year Ended: 31 December 2006 Amounts Invested 680, ,001 Sales 5,011 Valuation 2,190,710 1,017,412 Profit before Tax 124 % Equity/Voting Rights 55.9% 55.9% Net Liabilities 9 Valuation Methodology Discounted Revenue Multiple Retained Profit 124

7 Unaudited Interim Report for the six month period ended 30 June Advisers and Managers Report SkillsMarket Limited Manages CV data for recruitment agencies and operates an online information exchange. The service is highly automated, using a mix of proprietary and third-party software. The company holds data on 90% of all IT staff in the UK and its customers employ 20% of all recruitment consultants in the UK IT recruitment sector. Dates of Investment: March 05 May 06 As at 30 June 2007 As at 31 December 2006 Year Ended: 31 March 2007 Amounts Invested 1,200,000 1,200,000 Sales 1,578 Valuation 2,051,389 1,318,750 Loss before Tax (1,580) % Equity/Voting Rights 15.3% 19.7% Net Assets 760 Valuation Methodology Recent funding round Retained Loss (4,124) DCG Datapoint Group Limited Provider of data storage and back-up solutions to corporates either remotely as a managed service or at customers premises. The demand for Datapoint s services is driven by greater compliance requirements for retention and retrieval of data and the ever growing volume of electronic data produced by organisations. The company grew revenue and profits over the year to 31 March 2007 and accelerated the transition to recurring managed service revenues. We have reflected this progress in the company s valuation which now stands at a significant premium to the cost of investment. Dates of Investment: March 04 September 05 As at 30 June 2007 As at 31 December 2006 Year Ended: 31 March 2006 Amounts Invested 938, ,220 Sales 4,810 Valuation 1,550, ,220 Profit before Tax 4 % Equity/Voting Rights 18.8% 18.8% Net Liabilities (953) Valuation Methodology Discounted revenue multiple Retained Profit 111 Corero plc (formerly Mondas) plc (AIM listed) Has developed e-business technologies to allow securities and investment houses to deploy new front and back office applications to facilitate straight through processing. Customers benefit from improved content management, document management, business process software and service solutions. Dates of Investment: October 00 December 02 January 06 As at 30 June 2007 As at 31 December 2006 Year Ended: 31 December 2006 Amounts Invested 1,903,116 1,903,116 Sales 6,294 Valuation 1,391,630 1,460,656 Loss before Tax (457) % Equity/Voting Rights 14.0% 10.0% Net Liabilities (312) Valuation Methodology Bid price Retained Loss (419)

8 Foresight VCT plc 06 Advisers and Managers Report f VCT Alaric Systems Limited Specialises in the development, sale, distribution and support of payment systems software including systems for electronic payments, authorisation and e-commerce integration. It is also involved in the use of software-based mathematical modelling techniques for card payments and fraud detection. Dates of Investment: February 02 October 02 December 02 June 04 September 04 June 05 As at 30 June 2007 As at 31 December 2006 Year Ended: 31 March 2006 Amounts Invested 1,340,465 1,340,465 Sales 4,756 Valuation 1,340,465 1,340,465 Profit before Tax 164 % Equity/Voting Rights 16.8% 16.8% Net Liabilities (102) Valuation Methodology Cost Retained Profit 191 Telecom plus plc (listed on the London Stock Exchange) Is a leading UK multi-utility company. Customers benefit from low costs and a single bill each month. The company has resumed strong growth following the change to its energy trading strategy and announced profits for the year ended 31 March 2007 of 11.6 million (2006: loss of 1.6 million). Foresight VCT sold a parcel of 10,000 shares in July 2007 realising 21,000. Dates of Investment: June 99 December 02 As at 30 June 2007 As at 31 December 2007 Year Ended: 31 March 2007 Amounts Invested 238, ,406 Sales 176,065 Valuation 1,297,385 1,190,965 Profit before Tax 11,590 % Equity/Voting Rights 0.9% 0.9% Net Assets 32,348 Valuation Methodology Bid price Retained Profit 8,608

9 Unaudited Interim Report for the six months ended 30 June Unaudited Profit and Loss Account Six months ended 30 June 2007 Six months ended 30 June 2006 Restated Year ended 31 December 2006 (unaudited) (unaudited) (audited) Revenue Capital Total Revenue Capital Total Revenue Capital Total Note Unrealised losses on investments (2,008,811) (2,008,811) (4,919,982) (4,919,982) (3,353,701) (3,353,701) Realised (losses)/gains on investments (44,473) (44,473) 212, , , ,789 Income 6 219, , , , , ,635 Investment management fees (116,067) (348,199) (464,266) (133,328) (399,984) (533,312) (250,403) (751,208) (1,001,611) Other expenses (236,003) (236,003) (297,725) (297,725) (501,885) (501,885) Loss before taxation (132,402) (2,401,483) (2,533,885) (194,492) (5,107,747) (5,302,239) (254,653) (3,886,120) (4,140,773) Taxation (477) 477 Loss for the period (132,402) (2,401,483) (2,533,885) (194,492) (5,107,747) (5,302,239) (255,130) (3,885,643) (4,140,773 Earnings per share New Ordinary Shares (0.29)p (5.31)p (5.60)p N/A N/A Ordinary Shares N/A N/A N/A (7.07)p (3.17)p C Shares N/A N/A N/A (11.90)p (10.38)p All revenue and capital items in the profit and loss account derive from continuing operations. There were no other recognized gains or losses for the period. Earnings for the period should not be taken as a guide to the results for the full year.

10 Foresight VCT plc 08 Unaudited Balance Sheet at 30 June 2007 f VCT 30 June June December 2006 (unaudited) (unaudited) (audited) Non-Current Assets Assets held at fair value through profit or loss Investments Note 31,376,219 32,201,449 33,560,030 Current Assets Debtors and prepayments 840, , ,954 Current investments 7 1,933,944 2,873,443 2,593,769 Cash at bank 225,235 7,619 34,092 2,999,673 3,779,938 3,499,815 Current Liabilities Other creditors 398, , ,039 Accruals 145, , ,575 (544,281) (413,326) (402,614) Net current assets 2,455,392 3,366,612 3,097,201 Net assets 33,831,611 35,568,061 36,657,231 Capital and reserves Called up share capital 453, , ,674 Share premium account 8,626,161 7,014,309 7,014,309 Special distributable reserve 21,608,376 24,208,564 23,785,791 Revaluation reserve 1,914,213 1,722,810 3,296,391 Distributable reserve 1,229,131 2,123,704 2,063,066 Equity shareholders funds 33,831,611 35,568,061 36,657,231 Net asset value per share of 1 pence each: New Ordinary Shares 74.56p N/A N/A Ordinary Shares N/A 51.27p 55.25p C Shares N/A 79.78p 81.44p

11 Unaudited Interim Report for the six month period ended 30 June Unaudited Cash Flow Statement for the six months ended 30 June 2007 Year ended Six months ended Six months ended 31 December 30 June June (unaudited) (unaudited) (audited) Operating activities Dividends received 32,638 6,260 Deposit and similar interest 196, , ,037 Other cash receipts 3,680 7,360 Investment management fees paid (676,023) (503,156) (717,786) Other cash payments 135,581 (233,349) (494,578) Net cash outflow from operating activities (307,474) (513,463) (721,707) Investing activities Purchase of non-current investments (625,000) (250,000) (400,000) Sale of non-current investments 755,527 1,562,743 1,927,742 Net cash inflow from investing activities 130,527 1,312,743 1,527,742 Net cash (outflow)/inflow before financing and liquid resource management (176,947) 799, ,035 Management of liquid resources Decrease/(increase) in current investments 659,825 (124,273) 155, ,825 (124,273) 155,401 Financing Purchase of own shares (1,222,253) (767,712) (1,027,667) Issue of shares 1,632,051 13,921 Equity dividends paid (701,533) (61,599) (75,521) (291,735) (829,311) (1,089,267) Net increase/(decrease) in cash 191,143 (154,304) (127,831) Unaudited Reconciliation of Movements in Shareholders Funds for the six months ended 30 June 2007 Year ended Six months ended Six months ended 31 December 30 June June (unaudited) (unaudited) (audited) Opening shareholders funds 36,657,231 41,795,683 41,795,683 Net share capital subscribed/(bought back) in the period 409,798 (849,862) (922,158) Loss for the period (2,533,885) (5,302,239) (4,140,773) Dividends paid in the period (701,533) (75,521) (75,521) Closing shareholders funds 33,831,611 35,568,061 36,657,231

12 Foresight VCT plc 10 Notes to the Unaudited Financial Statements for the six months ended 30 June 2007 f VCT 1. Principal accounting policies The following accounting policies have been applied consistently throughout the period. Full details of accounting policies will be disclosed in the Annual Report and Financial Statements. a) Basis of Accounting The accounts have been prepared in accordance with United Kingdom Generally Accepted Accounting Practice, and with the 2003 Statement of Recommended Practice, Financial Statements of Investment Trust Companies, revised December As a result of the Directors decision to distribute capital profits by way of a dividend, the Company revoked its investment company status as defined under section 266 (3) of the Companies Act 1985, in March Consequently, the financial statements have been drawn up to include a statutory profit and loss account in accordance with Schedule 4 of the Companies Act 1985 and Financial Reporting Standard 3 Reporting Financial Performance. This has no effect on total returns or net assets per share. b) Investments Investments are classified as fair value through profit or loss. Quoted investments are stated on a bid price basis in accordance with FRS 26. Unquoted investments are stated at fair value by the Directors in accordance with the following rules, which are consistent with IPEVCV guidelines: i ii iii investments which have been made in the last 12 months are at fair value, which unless another methodology gives a better indication of fair value, will be cost; Investments in companies at an early stage of their development are also valued at fair value, which unless another methodology gives a better indication of fair value, will be at cost; and Investments which have been held for more than 12 months and which have gone beyond the stage of their development in (ii) above are valued, in the absence of overriding factors, using a suitable price-earnings ratio discounted to reflect the lack of marketability. Where overriding factors apply alternative methods of valuation will be used. These will include the application of a material arms length transaction by an independent third party, cost, cost less provision for impairment, discounted cash flow, or a net asset basis. Unrealised capital gains and losses on investments are dealt with in the revaluation reserve and any movements are reflected through the profit and loss account. The only exception to this rule occurs when the Directors believe that there has been a permanent diminution in the value of an investment. In such circumstances, the associated write down in the value of the investment is charged directly through the face of the profit and loss account. 2. On 16 January 2007, 14,791,348 Ordinary Shares held at 15 January were redesignated as 10,177,029 C shares in accordance with a Conversion Ratio such that the total number of shares so redesignated is in proportion to the ratio which the Unaudited net asset value of the Ordinary Shares Fund portfolio bore to the Unaudited net asset value of the C Shares Fund portfolio as at 15 January The balance of 4,614,319 Ordinary Shares in each Shareholder s holding of Ordinary Shares, having a nominal value of 46,143 was redesignated as Deferred Shares and was purchased by the Company for an aggregate amount of 1p. All of the resulting 45,153,120 C Shares were then redesignated as New Ordinary Shares and the articles of association of the Company were amended so that all of the assets and liabilities of the Company as at 16 January 2007 were merged into a single pool of assets and liabilities to which the holders of the New Ordinary Shares are exclusively entitled.

13 Unaudited Interim Report for the six month period ended 30 June Notes to the Unaudited Financial Statements for the six months ended 30 June 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. 4. The New Ordinary Shareholders will be entitled to receive any dividends paid out of the net income from the net assets attributable to the New Ordinary Shares. 5. The Company revoked its status as an investment company in March 2000, so that it can regard capital reserves as profits of the Company available for distribution. The Company has not reapplied and does not intend to re-apply for investment company status. 6. Income Year ended Six months ended Six months ended 31 December 30 June June (unaudited) (unaudited) (audited) Dividends 32,638 4,024 10,284 Overseas based OEICS 52,757 73, ,894 Loan stock interest 127, , ,651 Bank deposits 4,416 2,963 5,122 Other 2,542 5,123 11,684 Total Income 219, , , Current investments at 30 June 2007 represent funds invested in 3 Dublin based OEIC money market funds managed by BlackRock Investment Managers, Insight Investment Management and Royal Bank of Scotland.

14 Foresight VCT plc 12 Notes to the Unaudited Financial Statements for the six months ended 30 June 2007 f VCT 8. Earnings and return per share The basic earnings, revenue return and capital return per share shown below for each period are respectively based on numerators i)-iii), each divided by the weighted average number of shares in issue in the period - see iv) below Earnings and return per share New Ordinary Shares Six months ended 30 June 2007 Total earnings after taxation (2,533,885) i) Basic earnings per share (pence) (5.60)p Net revenue from ordinary activities after taxation (132,402) ii) Revenue return per share (pence) (0.29)p Capital loss (2,401,483) iii) Capital loss per share (pence) (5.31)p iv) Weighted average number of shares in issue in the period 45,222,731 Ordinary Shares fund Year ended Six months ended 31 December 30 June Total earnings after taxation (1,063,082) (473,972) i) Basic earnings per share (pence) (7.07)p (3.17)p Net revenue from ordinary activities after taxation (8,907) 8,291 ii) Revenue return per share (pence) (0.06)p 0.06p Capital loss (1,054,175) (482,263) iii) Capital loss per share (pence) (7.01)p (3.23)p iv) Weighted average number of shares in issue in the period 15,037,434 14,913,380 C Shares fund Year ended Six months ended 31 December 30 June Total earnings after taxation (4,239,157) ( 3,666,801) i) Basic earnings per share (pence) (11.90)p (10.38)p Net revenue from ordinary activities after taxation (185,585) (263,421) ii) Revenue return per share (pence) (0.52)p (0.75)p Capital loss (4,053,572)) ( 3,403,380) iii) Capital loss per share (pence) (11.38)p (9.63)p iv) Weighted average number of shares in issue in the period 35,632,610 35,337, Net asset value per New Ordinary Share is based on net assets at the end of the period, and on 45,373,031 New Ordinary Shares, being the number of Ordinary Shares in issue on that date. 10. The financial information for the six months ended 30 June 2007 has not been audited or previously published. The information for the year ended 31 December 2006 does not comprise full financial statements within the meaning of Section 240 of the Companies Act The financial statements for the year ended 31 December 2006 have been filed with the Registrar of Companies. The auditors have reported on these financial statements and that report was unqualified and did not contain a statement under Section 237(2) of the Companies Act 1985.

15 Unaudited Interim Report for the six month period ended 30 June Shareholder Information Dividends Shareholders who wish to have dividends paid directly into their bank account rather than by cheque to their registered address can complete a Mandate Form for this purpose. Mandates can be obtained by telephoning the Company s registrar, Computershare Investor Services plc (see over for details). Share price The Company s Ordinary Shares are listed on the London Stock Exchange. The mid-price of the Company s Ordinary Shares is given daily in the Financial Times in the Investment Companies section of the London Share Service. Share price information can also be obtained from many financial websites. Notification of change of address Communications with shareholders are mailed to the registered address held on the share register. In the event of a change of address or other amendment this should be notified to the Company s registrar, Computershare Investor Services plc, under the signature of the registered holder. Trading shares The Company s Ordinary Shares can be bought and sold in the same way as any other quoted company on the London Stock Exchange via a stockbroker. The primary market maker for Foresight VCT plc is Landsbanki Securities (UK) Limited (see over for details). Investment in VCTs should be seen as a long-term investment and Shareholders selling their shares within three years of original purchase (five years post-6 April 2006) may lose any tax reliefs claimed. Investors who are in any doubt about selling their shares should consult their independent financial adviser. Please call Foresight Venture Partners (see details below) if you or your adviser have any questions about this process. Open invitation to meet the Investment Manager As part of our investor communications policy, shareholders can arrange a mutually convenient time to come and meet the Company s investment management team at Foresight Venture Partners. If you are interested please call Foresight Venture Partners (see details below). Enquiries Please contact Foresight Venture Partners for any queries regarding Foresight VCT plc: Telephone: Fax: website: info@foresightventurepartners.com Foresight VCT plc is advised by Foresight Venture Partners, the trading name of VCF LLP which is authorised and regulated by the Financial Services Authority. Past performance is not necessarily a guide to future performance. Stock markets and currency movements may cause the value of the investments and the income from them to fall as well as rise and investors may not get back the amount they originally invested. Where investments are made in unquoted securities and smaller companies, their potential volatility may increase the risk to the value of, and the income from, the investment.

16 f VCT Foresight VCT ECA Court South Park Sevenoaks Kent TN13 1DU Corporate Information Directors Peter Dicks (Chairman) Antony Diment Nigel Horne David Royds (resigned 16 January 2007) Roger Blears (resigned 16 January 2007) Peter English (resigned 16 January 2007) Bernard Fairman Gordon Humphries (appointed 9 March 2007) Company Secretary VCF Fund Managers Limited ECA Court South Park Sevenoaks TN13 1DU Registered Office and Investment Advisers Foresight Venture Partners ECA Court South Park Sevenoaks TN13 1DU Solicitors and VCT Status Advisers Martineau Johnson No. 1 Colmore Square Birmingham B4 6AA Sponsors and Stockbrokers Landsbanki Securities (UK) Limited Beaufort House 15 St Botolph Street London EC3A 7QR Company Accountant Matrix-Securities Limited One Jermyn Street London SW1Y 4UH Auditors and Tax Advisers Registrar Ernst & Young LLP Computershare Investor Services PLC 1 More London Place PO Box 82 London The Pavilions SE1 2AF Bridgwater Road Bristol BS99 7NH Bankers Registered Number Lloyds TSB plc Midland and North Wales Regional Commercial Services Office 123 Colmore Row Birmingham B3 2DL Contact Numbers Registrars Shareholder Helpline Computershare ( ) General and Portfolio Queries Foresight Venture Partners ( )