FORESIGHT ENTERPRISE VCT PLC Reports Positive Net Asset Value Total Return in Half-Yearly Financial Report

Foresight Enterprise VCT plc has released its unaudited half-yearly financial report for the period ending June 30, 2023. The report highlights several financial achievements, including total net assets of £148.2 million and a portfolio value increase of £3.2 million in the last six months. The net asset value per share decreased by 2.3% from 64.9p at the end of 2022 to 63.4p at the end of June 2023. However, including the payment of a 3.3p dividend, the NAV total return per share at the end of June 2023 was 66.7p, representing a positive NAV total return of 2.8% in the period.

The chairman's statement acknowledges the challenging business environment, with ongoing geopolitical tensions, strained supply chains, and inflationary pressures. The collapse of Silicon Valley Bank and Credit Suisse in March 2023 also caused turmoil in the financial markets. However, the board believes that the portfolio companies have remained resilient and have adapted well to the economic landscape. Some companies have performed extremely well, while others are showing signs of recovery.

The board's strategy includes pursuing growth in net asset value total return above a 5% target, paying annual dividends of at least 5% of NAV per share, making new and follow-on investments, and maintaining a share buyback program. The ability of the manager to source attractive investment opportunities is crucial to achieving these objectives.

In terms of performance and portfolio activity, the NAV per share decreased by 2.3% in the period, but the positive NAV total return of 2.8% was attributed to the strategy and business changes throughout the portfolio. The company also completed several new and follow-on investments and fully disposed of two investments, generating significant returns.

After the period end, the company invested £1.8 million in Loopr Ltd, a data analytics platform, and sold its holding in Protean Software Limited. Overall, the report highlights the company's financial achievements and its ability to navigate the challenging business environment.