Download - Foresight Group

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