Noble VCT plc - Foresight Group
Noble VCT plc - Foresight Group
Noble VCT plc - Foresight Group
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8 | NOBLE <strong>VCT</strong> PLC<br />
Adviser’s Review<br />
Continued<br />
Disposals from the unquoted portfolio<br />
During the period under review there were no unquoted exits. A number of portfolio companies undertook strategic reviews<br />
during the year to appraise whether they continue to grow as an independent company or seek further investment via an<br />
acquisition by a large corporate. NFM hope to have further news of developments within the portfolio later in the 2007/08<br />
financial year.<br />
Earn-outs and Write offs<br />
Following the successful exit of DRI Limited in 2004, and as indicated in the financial statements for the year ended 31 March<br />
2006, NFM expected <strong>Noble</strong> <strong>VCT</strong> to receive final milestone payments and warranty retentions during the year ended 31 March<br />
2007. A total of £313k was received during the period in this regard. Further, <strong>Noble</strong> <strong>VCT</strong> also received a final warranty<br />
retention from Barco NV following the sale of portfolio company Voxar Limited in 2004. A total of £80k was received in this<br />
regard and a final sum is anticipated in the latter half of this final year. This was £69k less than previously indicated, however<br />
this amount was unaccounted for in the 2006 report and accounts.<br />
During the year, three companies which had previously been fully provided for were dissolved creating a transfer<br />
from unrealised to realised reserves of £900k. These companies were Elevation Events <strong>plc</strong> (£300k), IBase Ltd (£300k) and<br />
Yaba Ltd (£300k).<br />
Outlook<br />
NFM looks forward to extracting value from the portfolio over the coming 12 months in order to generate dividends for<br />
shareholders and converting the pipeline of unquoted opportunities into portfolio companies. Whilst a number of the portfolio<br />
holdings may require follow on investment to support their business growth, it is likely much of the £6m in cash will be used<br />
to build the unquoted portfolio. A small number of the quoted portfolio investments currently sit significantly below cost, most<br />
notably Aquilo <strong>plc</strong> and Vicorp <strong>Group</strong> <strong>plc</strong>. Where appropriate, NFM has developed action plans with relevant management<br />
teams, to rebuild value for shareholders. It is hoped this work will benefit shareholders in <strong>Noble</strong> <strong>VCT</strong> through NAV growth in<br />
the coming twelve months.
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