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Foresight 4 VCT plc
Interim Report for the six months
ended 31 August 2005

Objective
The objective of Foresight 4 VCT plc is to provide private investors with attractive returns from
a portfolio of investments in fast growing unquoted technology-based companies in the
United Kingdom. It is the intention to maximise the tax-free income available to investors from
a combination of dividends and interest received on investments and the distribution of capital
gains arising from trade sales or flotations.
VCT Tax Benefit for Shareholders beyond 6 April 2004
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
since 6 April 2004 are:
• Income tax relief of up to 40% on subscription of new shares, which is retained by
shareholders if the shares are held for more than three years. This relief is available for
the two tax years 2004/05 and 2005/06.
• 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: www.foresightvct.com
Contents
Summary and Chairman’s Statement 1
Investment Summary 3
Profit and Loss Account 9
Statement of Total
Recognised Gains and Losses 9
Balance Sheet 10
Summarised Statement of Cashflows 11
Notes to the Interim Report 12
Shareholder Information
Corporate Information

Summary
● As part of plans to raise up to £25m of new share capital, £832,000 was raised from existing shareholders in March 2005
and the share capital was restructured in May 2005 (three ordinary shares of 5p each being consolidated into one new
ordinary share of 1p each). An open offer for subscription to raise up to £24m was announced on 2 September 2005.
● The Company invested £627,000 in follow-on funding rounds in three portfolio companies, namely Advanced Visual
Technology (£200,000 net of a £50,000 loan repayment), Elam-T (£300,000) and EnSeal Systems (£127,000).
● Two new investments were made during the period; £200,000 in alwaysON Group (VOiP telephony services) and
£200,000 in Covion Holdings (facilities management).
● During the period INCA Digital Printers was sold realising £2.3m in cash for Foresight 4 VCT, generating a return of
three times the original cost of investment.
● During the period The Casella Group sold its principal operating subsidiary, enabling Casella to redeem all its bank
borrowings and a significant part of its shareholder loans, including £746,000 to Foresight 4 VCT.
● Net asset value per share as at 31 August 2005 was 102.8p (compared to the equivalent 102.0p as at 28 February 2005),
adjusted for the share consolidation in May 2005.
● The Company has a mature portfolio of investments which, depending on their progress, could generate further
successful exits and capital dividends.
● The Company continues to exceed the 70% requirement for investment in qualifying holdings set by HM Revenue
& Customs.
Chairman’s Statement
Peter Dicks
Offers for Subscription, Share Consolidation and
Change of Chairman
During the six months to 31 August 2005, your Company
made significant progress. In line with Foresight Venture
Partners’ previously announced plans to raise further funds
of up to £25 million for the Company via two offers, I am
pleased to report that £832,000 was raised in March 2005
through an initial offer for subscription to existing
shareholders.
On 23 June 2005, as previously announced, I replaced
Roger Brooke as Chairman who still remains as a Director
on the Board. I should like to take this opportunity to thank
Roger for all his commitment and effort to the Company
since inception.
On 2 September 2005, following the three for one share
consolidation, the second offer was formally announced,
comprising a linked offer for subscription to the investing
public with Foresight 3 VCT plc, another of the five VCTs
managed by Foresight Venture Partners, whereby the two
companies would raise up to £48m between them. Under
this linked offer, which is currently open and will remain
open until April 2006 (after which 40% income tax relief
may be withdrawn), subscriptions will be divided equally
between each company, thereby enabling each to raise up
to £24m. With such new funds, your Company will be able
to start a new phase in its life by participating in Foresight
Venture Partners’ strong deal flow and make new
investments at a time in the economic cycle which is
considered attractive. I consider this offer to be particularly
important as it will increase the size of the Company,
facilitate further investment and share buy backs, enhance
liquidity in the Company’s shares and spread risk and
running costs over a larger asset base while also
increasing the prospects for dividends to recommence.
In line with customary practice within the venture capital
industry, it is proposed that Foresight Venture Partners be
granted a performance related incentive as part of the
second offer. Because of Bernard Fairman’s association
with Foresight Venture Partners, your Company’s Manager,
the grant of this performance related incentive is subject
to shareholder approval and a circular and notice of
extraordinary general meeting was recently sent to
shareholders to seek such approval. This incentive relates
solely to the new monies raised under this second offer and
the terms are in line with current venture capital industry
practice. I should like to confirm that the prior performance
related incentive over the Company’s present assets will
remain unchanged and unaffected by this new proposed
carried interest incentive.
The prospects of a number of portfolio companies continue
to improve, with stronger order books and sales pipelines,
most notably Footfall and EQOS. Advanced Visual
Technology’s sales pipeline also continues to grow; its
market leading retail space planning software is now being
used by 50 major retailers Worldwide. Vectorcommand,
through its US partner, continues to make good progress in
the USA with its leading emergency simulation and training
software. Other portfolio companies continue to experience
more difficult trading conditions but are actively taking
steps to improve their sales efforts or broaden their ranges
of products or services in order to enhance sales growth.
Investment activity
During this six-month period, £627,000 was invested in
follow-on funding rounds in three portfolio companies,
namely Advanced Visual Technology (£200,000 net of a
£50,000 loan repayment), Elam-T (£300,000) and EnSeal
Systems (£127,000). In August 2005, Elam-T underwent a
capital reorganisation, following which Foresight 4 VCT
invested £300,000. The company raised the finance to
continue the commercialisation of its promising organic
light emitting display (OLED) materials, which are forecast
to grow rapidly with applications in mobile phones, car
stereos and MP3 players.
Foresight 4 VCT plc
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Chairman’s Statement
Two new investments were made during the period;
£200,000 in alwaysON Group, a Reading based provider
of VOiP telephony services to small and medium sized
companies and £200,000 in Covion Holdings, a fast
growing facilities management group providing a range
of outsourced services to large companies.
In June 2005, INCA Digital Printers was acquired by Dai
Nippon Screen Mfg. Co. of Kyoto, Japan for £30m in cash,
realising £2.3m in cash for Foresight 4 VCT and generating
a return of three times the original cost of investment of
£756,000. In May, The Casella Group sold its principal
operating subsidiary, Casella Consulting Limited, one of
the UK’s leading environmental consultancies, for £28.8m
to Bureau Veritas, a major international environmental
consultancy. This disposal enabled Casella to redeem all
its bank borrowings and a significant part of its shareholder
loans, including £746,000 to Foresight 4 VCT. The
successful sale in October 2004 of DNA Research
Innovations to Invitrogen Corporation of the USA realised
£1.4m in cash at completion plus up to a further £1.4m
if seven technical milestones are achieved, which will if
received represent a return of nearly three times the original
cost of investment of £1m. In August 2005, £144,000 was
received on completion of the first milestone and work on
the other six milestones is progressing satisfactorily.
During the six-month period, upward revaluations were
made to four investments totalling £0.7m as a result of
improved trading performance or exit prospects. These
included Footfall (£333,000) which continues to trade
well and is on track for a possible listing and also EQOS
(£246,000) which continues to win substantial orders
from major retailers Worldwide for its highly regarded
e-collaboration software. Provisions of £0.9m were made
against the previous valuations of six investments. Despite
gaining several major customers over recent years, Reqio
finally succumbed to continuing slow market uptake for its
highly regarded database cataloguing software and was
placed into administration on 31 August, resulting in a
provision of £37,000.
Investment Objective
Following shareholder approval granted on 28 February
2005, the objective of Foresight 4 VCT plc is now to provide
private investors with attractive returns from a portfolio of
investments in fast growing unquoted largely technologybased
companies in the United Kingdom. It is the intention
to maximise the tax-free income available to investors from
a combination of dividends and interest received on
investments and the distribution of capital gains arising
from trade sales or flotations.
Net asset value
The net asset value per share as at 31 August 2005 was
102.8p, compared to the equivalent 102.0p as at
28 February 2005 (post the three for one share consolidation).
Valuation policy
Unquoted investments have been valued in accordance
with guidelines co-developed by the British Venture Capital
Association (BVCA). Following changes to Generally
Foresight 4 VCT plc
2
Accepted Accounting Practice listed securities are now
valued at the bid price rather than the mid price as in
previous periods with no discount applied.
Dividend
Over the last twelve months the Company has been
successful in realising substantial cash gains on the sale
of DNA Research Innovations and INCA Digital Printers
and the Board is now in a position to recommence dividend
payments. As a result it is proposed that subject to the
approval of shareholders and sanction of the Court, the
remaining share premium account be cancelled and a
dividend of 5.0p per share be paid during December 2005.
Future dividend payments are difficult to forecast but given
the successful progress of the portfolio it is the Board’s
intention to pay regular dividends.
Venture Capital Trust Status
Foresight 4 VCT has been granted approval as a Venture
Capital Trust (VCT) under section 842AA of the Income
and Corporation Taxes Act 1988 and it is intended that the
business of the Company be carried on so as to maintain
its VCT status.
Purchase of own shares
It continues to be the Company’s policy to consider
repurchasing shares when they become available in order
to provide liquidity for the Company’s shares. With sufficient
cash resources following the realisations referred to above,
the Company repurchased the equivalent of 406,667 shares
at a cost of £349,600 during this six-month period.
Outlook
The prospects of certain portfolio companies continue to
improve, with stronger order books and sales pipelines
while others are actively taking steps to improve their sales
efforts or broaden their ranges of products or services
in order to enhance sales. This gives me confidence that
the portfolio has the potential to generate value over time
provided that economic circumstances continue to be
stable and corporate investment continues at its present
level. Investor confidence continues to improve as
evidenced by the recent performance of the public
markets. Approaches have been received from possible
purchasers for certain portfolio companies, a number of
which are being pursued and which could lead to exits
in due course.
The Company’s Manager, Foresight Venture Partners, is
actively marketing the linked offer with Foresight 3 VCT plc
for subscription to the investing public to raise up to £24m
for your Company. As I indicated above, the success of
this offer is important to the future of your Company as it
will then be able to start a new phase in its life. I wish
them every success in this fund raising and look forward
to reporting the results of their efforts in early 2006.
Peter Dicks
Chairman
15 November 2005

Investment Summary
THE VENTURE CAPITAL FUNDS
During the six-month period ended 31 August 2005, further investments totalling £627,000 were made in three existing
portfolio companies: Advanced Visual Technology (£200,000 net of loan repayments), Elam-T (£300,000) and EnSeal Systems
(£127,000). Two new investments were made during the year: alwaysON Group (£200,000) and Covion Holdings (£200,000).
During the six-month period, upward revaluations were made to four investments totalling £0.7m as a result of improved
trading performance or exit prospects. A prudent basis of valuation and continuing difficult market conditions for some
portfolio companies have contributed to provisions of £0.9m being made against the previous valuations of six investments.
INCA Digital Printers was sold during the period for £2,278,000 (including accrued interest) a three fold increase on the
investment cost of £756,000. The main trading subsidiary of The Casella Group was sold in the year leading to a repayment
of some of the loans and accrued interest. The first part of the earn-out on DNA Research Innovations, which was sold in
October 2004, was received during the period and totalled £144,000 and was paid following the completion of the first
milestone. Work on the other six milestones are progressing satisfactorily.
The investment portfolio as at 31 August 2005 is detailed below:
Adeptra Ltd
develops and markets interactive content based alert services, principally to banks in the USA and UK, for debit and credit card notification where
a transaction may be suspect or where an account is overdue. The company has made initial traction in these markets which provide very strong
growth opportunities. In addition, there are many other potential applications including: share price, sports results and other content based alerts.
The number of customers and volume of alerts are increasing steadily, however the valuation reflects the slower than expected rate of progress
and the weight of prior ranking capital raised in October 2000.
Dates of Investment: December 1999
March 2000
October 2000
February 2005
As at 31 August 2005 As at 28 February 2005 Year Ended: 31 December 2004
£’000
Amounts Invested £1,235,900 £1,235,900 Sales £2,611
Valuation £191,968 £153,600 Loss Before Tax (£3,088)
% Equity / Voting Rights 3.2% 3.2% Retained Loss (£2,928)
Net Liabilities (£3,859)
Valuation Methodology: discounted revenue multiple
Advanced Visual Technology Ltd
develops and markets retail space management software and now has 45 customers worldwide including Tesco, WH Smith, Barclays and HMV
in the UK and Office Depot, Staples and KMart in the USA. Its products deliver impressive financial improvements for customers and more
salesmen, partners and resellers have been recruited to increase marketing efforts. In the year to 30 September 2003, AVT achieved its first ever
annual profit but trading in the year to 30 September 2004 has proved more difficult due to slower capital expenditure by customers and a loss
was incurred.
Dates of Investment: December 1998
February 2000
September 2000
February 2001
May 2004
August 2005
As at 31 August 2005 As at 28 February 2005 Year Ended: 30 September 2004
£’000
Amounts Invested £2,007,183 £1,806,844 Sales £1,648
Valuation £1,073,477 £831,628 Loss Before Tax (£292)
% Equity / Voting Rights 34.6% 34.6% Retained Loss (£292)
Net Liabilities (£22)
Valuation Methodology: indicative offer
5
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Investment Summary
alwaysON Group Ltd
is a market leading provider of voice over IP (“VOiP”) services to SMEs. Call quality and security issues of VOiP have held back widespread
adoption by SMEs to date, however, alwaysON’s solution addresses these issues by using the company’s own network coupled with proprietary
software.
Date of Investment: June 2005
As at 31 August 2005 As at 28 February 2005 Year Ended: 31 March 2004
£’000
Amounts Invested £200,000 – Sales £1,991
Valuation £200,000 – Loss Before Tax (£484)
% Equity / Voting Rights 2.8% – Retained Loss (£417)
Net Assets £183
Valuation Methodology: price of recent funding round
Covlon Holdings Ltd
provides total facilities management services (“TFM”), or in its terminology “Facilities Integrated Services” (“FIS”), to private sector 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 Logica,
Anglian Windows and Sara Lee.
Date of Investment: May 2005
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As at 31 August 2005 As at 28 February 2005
Amounts Invested £200,000 – No audited accounts have
Valuation £200,000 – been produced since
% Equity / Voting Rights 2.4% – incorporation
Valuation Methodology: price of recent funding round
Elam-T
develops organic emitting display materials targeting the flat-screen display market. Its materials are well suited to small portable devices offering
brighter clearer colours, longer lifetimes and low power consumption. The company is working closely with key Far East product manufacturers
which have given positive feedback, however commercial revenues are around twelve months away because of the lead time for building new
manufacturing facilities. The $50bn global display screen market offers strong licence revenue opportunities.
Dates of Investment: November 2000
October 2001
July 2005
As at 31 August 2005 As at 28 February 2005 Year Ended: 31 July 2004
£’000
Amounts Invested £1,010,000 £710,000 Sales £12
Valuation £300,000 £200,000 Loss Before Tax (£1,607)
% Equity / Voting Rights 6.3% 6.3% Retained Loss (£1,607)
Net Assets £601
Valuation Methodology: price of recent funding round

Investment Summary
EnSeal Systems Ltd
has developed seal encoding technology for detecting cheque and document fraud. The technology is being used by the US Federal Reserve
Bank and licenced to J P Morgan Chase, Fiserv (a major US banking services provider), an affiliate of Bank of America and HSBC USA. Several
major US banks are keen to adopt this anti-fraud technology to sell as a revenue generating service to their corporate customers.
Dates of Investment: February 2002
February 2003
June 2004
March 2005
June 2005
As at 31 August 2005 As at 28 February 2005 Year Ended: 31 December 2004
£’000
Amounts Invested £1,237,783 £1,111,033 Sales £223
Valuation £742,958 £1,111,033 Loss Before Tax (£373)
% Equity / Voting Rights 75.0% 75.0% Retained Loss (£328)
Net Liabilities (£593)
Valuation Methodology: indicative offer less discount
Eqos Ltd
develops and markets e-collaboration and CRM (customer relationship management) software for business to business transactions, principally
sold to major UK retailers for improving the efficiency of their supply chains. A significant proportion of annual sales revenue comes from repeat
orders from existing customers but annual sales growth depends on winning a small number of orders from new customers.
Dates of Investment: March 2000
March 2001
May 2001
As at 31 August 2005 As at 28 February 2005 Year Ended: 30 September 2004
£’000
Amounts Invested £1,050,000 £1,050,000 Sales £2,515
Valuation £745,845 £499,733 Profit Before Tax £65
% Equity / Voting Rights 6.6% 6.6% Retained Profit £139
Net Liabilities (£3,784)
Valuation Methodology: revenue based multiple
Footfall Ltd
produces a key index for UK retail performance and is used by the Bank of England Monetary Policy Committee. The company is the UK’s leading
provider of automated counting systems in retail environments and provides managed services to rapidly process and publish individual client
data and national indices. A strong growth in sales during 2003 included prestigious projects such as the Bull Ring in Birmingham. Footfall is
profitable and continues to forecast strong growth based on penetration of the UK and European retail markets.
Dates of Investment: April 2000
September 2001
November 2001
June 2002
As at 31 August 2005 As at 28 February 2005 Year Ended: 31 March 2004
£’000
Amounts Invested £1,309,200 £1,309,200 Sales £6,157
Valuation £1,600,000 £1,267,000 Profit Before Tax £386
% Equity / Voting Rights 9.1% 9.1% Retained Profit £719
Net Assets £2,733
Valuation Methodology: indicative offer
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Investment Summary
Healthgain Solutions Ltd
continues to deliver good revenue growth in a tough market for healthcare contract sales teams. Growth has been achieved on the back of the
company’s reputation for delivering high quality teams for specialist applications, and displacing more well known and larger contract sales team
competitors. The company remains highly regarded for its specialist NHS knowledge and has a growing blue-chip customer base.
Date of Investment: June 2000
As at 31 August 2005 As at 28 February 2005 Year Ended: 30 April 2004
£’000
Amounts Invested £999,989 £999,989 Sales £2,511
Valuation £1,260,000 £1,260,000 Loss Before Tax (£431)
% Equity / Voting Rights 40.0% 40.0% Retained Loss (£571)
Net Liabilities (£900)
Valuation Methodology: indicative offer less discount
Nomad Software Ltd
is a London based developer and supplier of retail payments software and systems to the Central and Eastern European retail banking sector.
The software is used in handling and processing of payments via debit and credit cards and ATMs. Reflecting a decline in demand from banks
during 2002, Nomad incurred a substantial loss but in the second half of 2003 won a number of orders from new customers which substantially
reduced the level of losses. This improvement in orders and sales has continued during 2004. In conjunction with IBM, Nomad has recently set
up Debit Direct, a new outsourced debit card service to enable smaller UK financial institutions to issue such cards cost effectively and without
heavy capital investment. Considerable interest has been shown by such institutions and a number of customers have already contracted for this
new service.
Dates of Investment: March 2000
December 2001
April 2004
November 2004
As at 31 August 2005 As at 28 February 2005 Year Ended: 31 December 2003
£’000
Amounts Invested £1,319,968 £1,319,968 Sales £3,345
Valuation £701,291 £736,356 Loss Before Tax (£804)
% Equity / Voting Rights 8.7% 8.7% Retained Loss (£736)
Net Assets £280
Valuation Methodology: revenue based multiple
Oasis Healthcare plc
is the UK’s leading privately focused dental group with a national chain of over 120 practices providing a full range of dental services, including
implants and cosmetics. Oasis floated on AIM during 2000 and has since grown by a series of acquisitions. In February 2004, Oasis announced
a profits warning for the year to 31 March 2004 and has since taken a number of steps to improve operational efficiency and profitability.
Date of Investment: January 2003
As at 31 August 2005 As at 28 February 2005 Year Ended: 31 March 2005
£’000
Amounts Invested £474,286 £474,286 Sales £74,868
Valuation £108,207 £113,126* Loss Before Tax (£2,885)
% Equity / Voting Rights 1.2% 1.2% Retained Loss (£2,783)
Net Assets £8,979
Valuation Methodology: bid price (February 2005: restated to bid price)
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Investment Summary
Reqio Ltd
despite proven and robust software in the emerging market for catalogue solutions market demand for Reqio’s software remained weak and as
a result the company went into administration on 31 August 2005.
Dates of Investment: January 2001
September 2001
September 2002
January 2003
June 2004
As at 31 August 2005 As at 28 February 2005 Year Ended: 30 September 2003
£’000
Amounts Invested £1,678,206 £1,678,206 Sales £860
Valuation £nil £36,866 Loss Before Tax (£2,378)
% Equity / Voting Rights 9.5% 9.5% Retained Loss (£2,331)
Net Assets £722
Valuation Methodology: nil value
Signum Technologies Ltd
has developed and owns a number of patents relating to the digital watermarking of electronic images to ensure that an original electronic image
has not been manipulated e.g. for scene of crime photographic evidence. Although royalties are generated from licensees including police forces
and photocopier manufacturers, customer demand has been appreciably less than originally expected.
Dates of Investment: January 2000
February 2001
As at 31 August 2005 As at 28 February 2005 Year Ended: 30 June 2004
£’000
Amounts Invested £1,254,000 £1,254,000 Sales £96
Valuation £nil £nil Loss Before Tax (£54)
% Equity / Voting Rights 35.2% 35.2% Retained Loss (£54)
Net Assets £136
Valuation Methodology: nil value
Snell & Wilcox (UK) Ltd
is a leading manufacturer of broadcast electronics and a global leader in digital and high definition TV systems. In May 2002, Advent Venture
Partners led a geared institutional buy out of this loss-making company. The new management team has significantly restructured the business,
including making redundancies, cutting costs and improving operational efficiency. The team is now making good progress and has returned the
company to profitability.
Date of Investment: September 2001
As at 31 August 2005 As at 28 February 2005 Year Ended: 31 March 2004
£’000
Amounts Invested £839,137 £839,137 Sales £33,266
Valuation £344,309 £344,309 Loss Before Tax (£3,187)
% Equity / Voting Rights 1.6% 1.6% Retained Loss (£4,395)
Net Liabilities (£1,027)
Valuation Methodology: revenue based multiple
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Investment Summary
The Casella Group Ltd
is a leading environmental consultancy, services and instrumentation group. Prior to a change in senior management in late 2002 and a
refinancing, the company was loss-making. Casella’s trading results have improved markedly from losses to significant positive EBITDA (earnings
before interest, tax, depreciation and amortisation) and the group is now looking to achieve further growth in both sales and profits in the current
year. Three of Casella’s subsidiaries, Stanger, Winton and Hazmat, are considered major brands within their respective niches in the environmental
market. In June 2005, Casella’s major subsidiary, Casella Consulting Limited was sold for £28.8 million enabling Casella to repay loans to its
shareholders, including £746,000 to Foresight 4 VCT.
Dates of Investment: April 2000
November 2002
September 2003
February 2004
As at 31 August 2005 As at 28 February 2005 Year Ended: 30 June 2004
£’000
Amounts Invested £977,416 £1,596,249 Sales £36,141
Valuation £374,177 £1,138,500 Loss Before Tax (£2,431)
% Equity / Voting Rights 5.5% 5.5% Retained Loss (£2,493)
Net Liabilities (£7,987)
Valuation Methodology: indicative offers less discount
Vector Command Ltd
is a globally recognised authority on incident command and continues to secure orders for its core Fire Simulation and Training suites. Thirty-six
UK Fire Brigades and eight Australian Fire Authorities have deployed the system, and other users are based in Europe, the USA, Canada and the
West Indies. The company has over twenty fire scenarios and in partnership with Western government agencies is expanding its product portfolio
with the introduction of multi-agency Emergency Management tools. Early success has been achieved selling these into overseas markets, with
the company believed to be at the leading edge of training and emergency preparation tools.
Dates of Investment: September 1999
November 2000
April 2002
As at 31 August 2005 As at 28 February 2005 Year Ended: 31 December 2004
£’000
Amounts Invested £1,468,750 £1,468,750 Sales £1,270
Valuation £1,938,000 £1,938,000 Profit Before Tax £5
% Equity / Voting Rights 34.4% 34.4% Retained Profit £22
Net Assets £859
Valuation Methodology: price of recent funding round
The above summary does not include Radiant Networks or IPV, which were both in liquidation and valued at £nil at the year end. The results of these companies have not
been incorporated into the profit and loss account. Unless stated to the contrary, all classes of ordinary shares and none of the classes of preference shares have voting rights.
The principal activity of the Company is to select and hold a portfolio of investments. As such, the companies are not treated as associates nor subsidiaries.
Co-Investing Funds
Foresight Venture Partners also advises Foresight Technology VCT plc, Foresight 2 VCT plc and Trivest VCT plc and manages Foresight 3 VCT plc. Investments have been
made by Foresight 3 VCT plc in Oasis Healthcare (£1,343,809), Elam-T (£1,110,000) and Covion Holdings (£347,000). Investments have been made by Foresight Technology VCT
plc in alwaysON Group (£300,000), Covion Holdings (£1,000,000), and Elam-T (£400,000). Investments have been made by Foresight 2 VCT plc in alwaysON Group (£1,000,000),
Covion Holdings (£1,000,000) and Elam-T (£1,000,000).
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Profit and Loss Account
for the six months to 31 August 2005
6 Months to 6 Months to Year to
31 August 2005 31 August 2004 28 February 2005
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
Investment income and deposit interest 97 44 47
Investment management fees (124) (81) (273)
Other expenses (134) (157) (298)
––––––– ––––––– –––––––
Operating loss (161) (194) (524)
Profit/(loss) on realisation of investments 1,666 25 (1,645)
––––––– ––––––– –––––––
Profit/(loss) on ordinary activities before taxation 1,505 (169) (2,169)
Tax on ordinary activities – – –
––––––– ––––––– –––––––
Profit/(loss) on ordinary activities after taxation 1,505 (169) (2,169)
Dividends – – –
––––––– ––––––– –––––––
Balance transferred to/(from) reserves 1,505 (169) (2,169)
––––––– ––––––– –––––––
Earnings per share (restated for the share consolidation) 12.1p (1.4)p (18.1)p
––––––– ––––––– –––––––
Statement of Total Recognised Gains and Losses
for the six months to 31 August 2005
6 Months to 6 Months to Year to
31 August 2005 31 August 2004 28 February 2005
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
Profit/(loss) for the period 1,505 (169) (2,169)
Unrealised losses on revaluation of investments (1,291) (4,828) (1,523)
––––––– ––––––– –––––––
Total recognised gains/(losses) relating to the period 214 (4,997) (3,692)
––––––– ––––––– –––––––
All items in the Profit and Loss account derive from continuing operations. No operations were acquired or discontinued in
the period.
The Company has only one class of business and derives its income from investments made in shares, securities and bank
deposits. Income from investments is recognised on an accruals basis.
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Balance Sheet
at 31 August 2005
As at As at As at
31 August 05 31 August 04 28 February 05
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
Fixed assets
Investments
Quoted 108 133 125
Unquoted 9,672 11,788 11,354
––––––– ––––––– –––––––
Current assets
9,780 11,921 11,479
Debtors 996 376 1,073
Money market and other deposits 1,258 – –
Cash 1,494 271 308
––––––– ––––––– –––––––
3,748 647 1,381
Creditors:
Amounts falling due within one year
Bank borrowings – (982) –
Other creditors (726) (694) (663)
––––––– ––––––– –––––––
Net current assets/(liabilities) 3,022 (1,029) 718
––––––– ––––––– –––––––
Net assets 12,802 10,892 12,197
––––––– ––––––– –––––––
Capital and reserves
Called-up share capital 125 1,793 1,793
Share premium account 24,199 23,581 23,581
Capital redemption reserve 1,813 9 9
Revaluation reserve (8,891) (10,893) (7,588)
Profit and loss account (4,444) (3,598) (5,598)
––––––– ––––––– –––––––
Equity shareholders’ funds 12,802 10,892 12,197
––––––– ––––––– –––––––
Net asset value per ordinary share 102.8p 91.1p 102.0p
(restated for 1 for 3 share consolidation) ––––––– ––––––– –––––––
Foresight 4 VCT plc
10

Summarised Statement of Cashflows
for the six months to 31 August 2005
6 months to 6 months to Year to
31 August 05 31 August 04 28 February 05
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
Cashflow from operating activities
Investment income received 133 – 30
Deposit and similar interest received 12 1 2
Investment management fees paid (144) (36) (350)
Secretarial fees paid (30) (30) (60)
Other cash (payments)/receipts (72) (96) 59
Net cash outflow from operating activities
––––––– ––––––– –––––––
and returns on investment (101) (161) (319)
––––––– ––––––– –––––––
Taxation – – –
Financial investment
Purchase of unquoted investments and investments (1,077) (311) (613)
quoted on AIM
Net proceeds on sale of unquoted investments 2,946 – 1,479
Net proceeds on deferred consideration 144 – –
Net proceeds on sale of quoted investments – – –
Net proceeds on liquidation of investments – 25 25
Repurchase of own shares (222) – –
––––––– ––––––– –––––––
Net capital inflow/(outflow) from financial investment 1,791 (286) 891
Management of liquid resources
Loans drawn down/(repaid) – 368 (614)
Movement in money market and other deposits (1,258) – –
––––––– ––––––– –––––––
(1,258) 368 (614)
Financing
Proceeds of fund raisings 832 – –
Expenses of fund raisings (78) – –
––––––– ––––––– –––––––
754 – –
––––––– ––––––– –––––––
Increase/(decrease) in cash 1,186 (79) (42)
––––––– ––––––– –––––––
Reconciliation of net cashflow to movement
in net cash/(debt)
Increase/(decrease) in cash for the period 1,186 (79) (42)
Net cash/(debt) at start of period 308 (264) (264)
Loans (drawn down)/repaid – (368) 614
––––––– ––––––– –––––––
Net cash/(debt) at end of period 1,494 (711) 308
––––––– ––––––– –––––––
Reconciliation of operating loss to net
cashflow from operating activities
Operating loss (161) (194) (524)
Changes in working capital 60 33 205
––––––– ––––––– –––––––
Net cash outflow from operating activities (101) (161) (319)
––––––– ––––––– –––––––
Foresight 4 VCT plc
11

Notes to the Interim Report
1. The unaudited interim results have been prepared on the basis of accounting policies set out in the statutory accounts
of the Company for the year ended 28 February 2005. Unquoted investments have been valued in accordance with
BVCA guidelines. Quoted investments are stated at bid prices in accordance with the BVCA guidelines and Generally
Accepted Accounting Practice.
2. These are not statutory accounts in accordance with section 240 of the Companies Act 1985 and are neither audited nor
reviewed. The full audited accounts for the year ended 28 February 2005, which were unqualified, have been lodged with
the Registrar of Companies. No statutory accounts in respect of any period after 28 February 2005 have been reported
on by the Company’s auditors or delivered to the Registrar of Companies. The audited accounts to 28 February 2005
have been restated in this publication to reflect the changes in presentation following the introduction of Financial
Reporting Standard (‘FRS’) 25 and FRS 26.
3. Copies of the Interim Report, which has been reviewed by the Company’s auditors, have been mailed to shareholders
and are available for inspection at the Registered Office of the Company at Swiss Life House, South Park, Sevenoaks,
Kent TN13 1DU.
4. The number of shares in issue at 31 August 2005 was 12,453,689 1p ordinary shares (2004: 35,862,753 5p ordinary
shares). The weighted average number of shares in issue during the period was 12,435,810 1p ordinary shares
(2004: 35,862,753 5p ordinary shares). During the period, following shareholder approval, the Company undertook a
restructuring of its share capital which resulted in three ordinary 5p shares being consolidated into one new ordinary
1p share. This effectively trebled the share price but, since shareholders then held only one third of their original number
of shares, did not affect the overall value of their shareholdings.
5. Earnings for the first six months should not be taken as a guide to the results for the full year.
6. Impact of the introduction of FRS 25 and 26
The financial information for the six months ended 31 August 2005 has been prepared in accordance with FRS 25 and
FRS 26. A full restatement, as appropriate, of the results for the year to 28 February 2005 will be shown in the Annual
Report for the year ending 28 February 2006. The introduction of these new standards has had the following impacts:
Valuation:
The assets held at fair value through the profit and loss by the Company are valued at bid price rather than mid-market
price as in prior periods.
Six Months to Year to
31 August 2005 28 February 2005
(unaudited) (unaudited)
£’000 £’000
Valuation at bid price 108 113
Valuation at mid-market price 118 125
––––––– –––––––
Difference (10) (12)
Transaction costs:
––––––– –––––––
Transaction costs incurred when purchasing or selling assets have been written-off to the profit and loss account in the
period they occur since 1 March 2004.
7. Movement in reserves Called-up Share Capital Profit and
share premium redemption Revaluation loss
capital account reserve reserve account Total
£'000 £'000 £'000 £'000 £'000 £'000
As at 28 February 2005
Opening balance adjustments:
1,793 23,581 9 (7,588) (5,598) 12,197
Quoted companies valued at bid price* – – – (12) – (12)
––––––– ––––––– ––––––– ––––––– ––––––– –––––––
As at 1 March 2005 1,793 23,581 9 (7,600) (5,598) 12,185
Share issues in the period 136 696 – – 832
Expenses on share issues – (78) – – – (78)
Share re-organisation (1,777) 1,777 – – –
Shares repurchased in the period (27) – 27 – (351) (351)
Net decrease in the value of investments – – – (1,291) – (1,291)
Profit for the period – – – – 1,505 1,505
––––––– ––––––– ––––––– ––––––– ––––––– –––––––
As at 31 August 2005 125 24,199 1,813 (8,891) (4,444) 12,802
––––––– ––––––– ––––––– ––––––– ––––––– –––––––
* Due to the introduction of FRS 25 and FRS 26 the quoted investment at 28 February 2005 was restated at bid price rather
than the previously recorded mid-market price. The difference between the bid price and the mid-market price has led to
a downwards revaluation of the quoted shares and this loss has been taken to the revaluation reserve.
Foresight 4 VCT plc
12

Notes to the Interim Report
8. Summary of investments during the period Quoted Unquoted Total
£'000 £'000 £'000
Book cost as at 28 February 2005 474 18,590 19,064
Unrealised depreciation (349) (7,236) (7,585)
––––––– ––––––– –––––––
Valuation at 28 February 2005 125 11,354 11,479
Opening balance adjustment (12) – (12)
––––––– ––––––– –––––––
Valuation at 1 March 2005 113 11,354 11,467
Movements in the period:
Purchases at cost – 1,077 1,077
Disposal proceeds – (2,946) (2,946)
realised gains – 1,522 1,522
Unrealised depreciation (5) (1,335) (1,340)
––––––– ––––––– –––––––
Valuation at 31 August 2005 108 9,672 9,780
––––––– ––––––– –––––––
Book cost at 31 August 2005 474 18,243 18,717
Unrealised depreciation (366) (8,571) (8,937)
––––––– ––––––– –––––––
Valuation at 31 August 2005 108 9,672 9,780
––––––– ––––––– –––––––
Shareholder Information
Dividends
Interim dividends are ordinarily paid to shareholders in December. Final dividends are ordinarily paid to shareholders in July.
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 (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, 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 4 VCT plc is Teather & Greenwood (see over
for details).
Please call Hazel Gross (see details below) if you or your adviser have any questions about this process.
Indicative financial calendar
April 2006 Announcement of annual results for the year ended 28 February 2006
May 2006 Posting of the Annual Report for the year ended 28 February 2006
June 2006 Annual General Meeting
October 2006 Announcement of interim results for the six months to 31 August 2006
Enquires
Contact Hazel Gross, Foresight Venture Partners, VCT Investor Relations Manager for Foresight 4 VCT plc:
Telephone: 01732 471803
Fax: 01732 471810
e-mail: hgross@foresightventurepartners.com
website: www.foresightvct.com
Foresight 4 VCT plc is managed 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. Stockmarkets and currency movements may
cause the value of 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.
Foresight 4 VCT plc

Corporate Information
Directors
Peter Dicks (Chairman)
Roger Brooke
Philip Stephens
Bernard Fairman
Company Secretary
VCF Fund Managers Limited
Swiss Life House
South Park
Sevenoaks TN13 1DU
Registered Office and
Investment Managers
Foresight Venture Partners
Swiss Life House
South Park
Sevenoaks TN13 1DU
Solicitors and
VCT Tax Adviser
Martineau Johnson
No. 1 Colmore Square
Birmingham B4 6AA
Registrar
Computershare Investor Services PLC
PO Box 82
The Pavillions
Bridgwater Road
Bristol BS99 7NH
Shareholder helpline: 0870 703 6292
Sponsors and Stockbrokers
Teather & Greenwood
Beaufort House
15 St Botolph Street
London EC3A 7QR
Auditors and Tax Adviser
Ernst & Young LLP
1 More London Place
London SE1 2AF
Registered Number
3506579
cover design by johnson banks