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4 Foresight 4 VCT plc 02 Chairman’s Statement I Investment Activity The level of new investment activity has started to pick up again, with two new investments being made totalling £500,000: £250,000 in Lynwood Group Holdings and £250,000 in Silvigen. This is in line with Foresight’s increasing focus on investing in the environmental infrastructure and sustainable sectors. Lynwood is an established business in the plastic building products market in the UK and has made the transition to using waste plastic streams as its raw material. Lynwood has acquired a small business with specialist expertise in manufacturing wood profile and wood replacement products from waste plastic and it is now one of the best equipped plastic recycling manufacturing operations in the UK. The company is well positioned in a growing market for recycled and sustainable products such as wood replacement, which offer considerable economic and environmental advantages. Silvigen has positioned itself to supply the urgent biomass fuel needs of the UK power generation sector and the developing industrial heat sector, both of which are driven by a number of regulatory incentives. The Company made seven follow-on investments totalling £1,311,961: Closed Loop London (£503,333), Advanced Visual Technology (£300,000), O-Gen (£210,000), The Bunker Secure Hosting (£118,700), Global Immersion (£66,670), Vectorcommand (£60,000) and Oled-T (£53,258). Advanced Visual Technology (AVT) required ongoing funding while progressing its sales process. After the period end AVT was sold to Oracle for an undisclosed amount. A further investment was made into O-Gen in April to fund the latest stage of the company’s biomass to energy plant. The plant has already produced some electricity with full commissioning expected later in 2008. The Bunker Secure Hosting is experiencing strong demand for its ultra secure IT hosting services and is currently planning for a substantial increase in its capacity. Closed Loop London has completed its first plant in Dagenham and is in the early stages of developing a second plant in the north-west of England. Global Immersion and Vectorcommand required further investment due to a shortfall in working capital as a result of poorer trading, whereas the investment in OLED-T was to finance the company on the anticipation of an impending strategic investment by a large chemicals company. Unfortunately, the strategic investment did not materialise and OLED-T’s IP was sold for €450,000. I Realisations Utarget, a provider of Internet subsite advertising, was sold to Fox International in March 2008 for total proceeds of £1,952,800 compared to an original cost of £1,000,000. This represented an uplift of almost 100% on cost in little over a year, following the original investment in December 2006. Additionally, further proceeds of £150,310 were received from the ongoing sale of the assets of The Casella Group. A final payment from the completion of the liquidation process is expected in the next few months. I Net Asset Value The net asset value per share as at 31 August 2008 decreased to 104.4p compared to 110.2p as at 29 February 2008. 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. Reflecting recent realised gains, an interim dividend of 5.0p per share for the year ending 28 February 2009 will be paid on 19 December 2008, making 17.5p per share of cumulative dividend payments in the last three years. The ex dividend date will be 10 December 2008 and the record date will be 12 December 2008. I Valuation policy Investments held by the Company have been valued in accordance with the International Private Equity and Venture Capital (IPEVC) guidelines 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 or significant accretion in value during the period. Quoted investments and investments traded on AIM and PLUS are valued at the bid price as at 31 August 2008. The portfolio valuations are prepared by Foresight Group and are subject to approval by the Board. I Share Issues and Share Buy-backs During the period year the Company issued 787,662 Ordinary Shares at prices ranging from 109.0p to 116.0p per share. These funds enable your Company to remain an active investor in the current market and take advantage of new opportunities currently being reviewed by Foresight Group. It continues to be the Company’s policy to consider purchasing shares in the market when they become available in order to help provide liquidity for the Company’s shareholders. During the period, the Company repurchased 80,332 shares at a cost of £72,700. Landsbanki Securities, Foresight 4’s incumbent market maker, as a result of the financial difficulties of its parent company, terminated its market making activities during October 2008. It is currently unclear whether the termination of its market making activities is temporary or permanent and once this becomes apparent, which is expected to be in the very near future, Foresight Group and the Board will be in a position to update shareholders accordingly. I Top-up Offer Foresight 4, alongside Foresight VCT, Foresight 2 and Foresight 3, will shortly be launching a series of top-up offers to each raise up to approximately £2 million. The requirement to raise new funds is to enable Foresight Group to continue to make new investments in the environmental infrastructure and management buyout sectors and, generally, to take advantage of the ongoing pipeline of new opportunities being considered. Existing Foresight 4 shareholders will shortly be sent details of the top-up offer. Half-yearly Financial Report for the six months ended 31 August 2008 03 I Outlook The extreme volatility of the financial markets as well as the increasing inability of companies to raise debt finance has proved a double edged sword for the Company. On the one hand Foresight Group’s deal flow of companies seeking investment, specifically in the environmental infrastructure sector, is stronger than ever as potential investee companies are finding banks less inclined to lend to them now than in the recent past. On the other hand, we have also seen some evidence of trade sales within the portfolio being subject to less attractive terms, delayed or terminated as a result of potential acquirers failing to raise sufficient finance to complete transactions. While we continue to look forward with cautious optimism, we are at the same time conscious that we are likely to be entering a period of economic slowdown and tighter credit conditions. In this environment we will encourage all of our investee companies to keep a tight control on costs and conserve cash. The market in which Foresight 4 operates continues to be encouraging in terms of potential new investment opportunities, as evidenced by the current deal flow being reviewed by Foresight Group. Foresight 4 will have access to this deal flow of new opportunities as it invests new funds raised as well as reinvesting some of the proceeds from successful realisations. Peter Dicks Chairman October 2008
Page 1 and 2: Heading Annual Report and Foresight
Page 3: Chairman’s Statement I Summary
Page 7 and 8: Half-yearly Financial Report for th
Page 9 and 10: Half-yearly Financial Report for th
Page 11 and 12: Unaudited Balance Sheet at 31 Augus
Page 13 and 14: Notes to the Unaudited Financial St
Page 15 and 16: Shareholder Information Half-yearly

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