f&c private equity trust plc - doc.morningstar.com

F&C Private Equity Trust plc

Quarterly Reportfor the three months ended

30 September 2010

The CompanyF&C Private Equity Trust plc (‘the Company’), incorporated in Scotland, registered number SC179412, is an investment trust and

its shares are listed on the London Stock Exchange. The wholly owned subsidiary, F&C Private Equity Zeros plc (‘FCPEZ’), which

was incorporated on 9 October 2009, is an investment company whose Zero Dividend Preference Shares (‘ZDP Shares’) are

listed on the London Stock Exchange.

The Company was launched in March 1999 as part of the reorganisation of The Scottish Eastern Investment Trust plc with the

objective of managing the private equity investments formerly held by The Scottish Eastern Investment Trust plc so as to realise

those assets and return cash to shareholders.

In August 2001, the Company was reorganised and shareholders were given the opportunity to convert all or part of their existing

ordinary shares into A shares (now renamed Restricted Voting shares) and B shares (now renamed Ordinary shares).

In August 2005, shareholders approved a change of company name from Martin Currie Capital Return Trust plc to F&C Private

Equity Trust plc and the Company issued 49,758,449 C Shares following the acquisition of Discovery Trust plc and a subscription

of £20 million by Friends Provident. The C shares subsequently converted into Ordinary shares.

In December 2009 FCPEZ issued 30,000,000 ZDP shares at 100 pence per share. The ZDP shares redeem in December 2014 at

a price of 152.14 pence per share giving a redemption yield of 8.75 per cent per annum.

ObjectiveThe Ordinary shares’ objective is to achieve long term capital growth through investment in private equity assets.

The Restricted Voting shares’ objective is to manage the existing assets and to realise the value of those assets in a tax efficient

manner and return capital to shareholders.

ManagementThe Board has appointed F&C Investment Business Limited as investment manager under a contract terminable by either party

giving to the other not less than six months’ notice.

Net assets as at 30 September 2010

£157.2 million

Shareholders’ funds as at 30 September 2010

Ordinary shares £152.3 million

Restricted Voting shares £4.9 million

Market capitalisation as at 30 September 2010

Ordinary shares £89.3 million

Restricted Voting shares £3.4 million

ZDP shares in FCPEZ £34.7 million

Capital structure from September 2006

72,282,273 Ordinary shares of 1 pence, each entitled to 1 vote;

67,084,807 Restricted Voting shares of 1 pence, each entitled to 1 vote; and

30,000,000 ZDP shares in FCPEZ.

Company Summary

Front cover: Ben Lui by Derek Sime

. NAV total return for the three months of +3.4 per cent for the ordinaryshares

. NAV total return for the three months of +2.1 per cent for the restrictedvoting shares

Performance Summary

As at As at30 September 2010 31 December 2009 % change

Net Asset Value

Net assets (£’000) 157,185 154,579 +1.7

Net asset value per:

Ordinary share (fully diluted) 208.59p 204.81p +1.8

Restricted Voting share 7.26p 7.56p –4.0

Market Price

Ordinary share 123.50p 107.00p +15.4

Restricted Voting share 5.00p 4.75p +5.3

Discount/(premium):

Ordinary share 40.8% 47.8%

Restricted Voting share 31.1% 37.2%

Income

Revenue return after taxation (£’000) 837 420

Revenue return per:

Ordinary share (fully diluted) 1.11p 0.56p

Restricted Voting share 0.01p 0.00p

Dividend per:

Ordinary share 0.0p 0.80p

Restricted Voting share 0.0p 1.00p

Gearing� 20.2% 9.0%

Zero Dividend Preference Shares (£’000) 32,069 30,117

30 September 2010 30 September 2010Ordinary Restricted Voting

Shares Shares

Portfolio Summary

Shareholders’ funds (£’000) 152,315 4,870

Future commitments (£’000) 95,720 –

Total Returns*

Net asset value (fully diluted) +2.3 +9.5

Share price +16.1 +24.4

* Total return is the combined effect of any dividends paid, together with the rise or fall in the net asset value or share price. Any dividends areassumed to have been re-invested in either the Company’s assets or in additional shares.

� Borrowing less cash … total assets.

Financial Highlights

Quarterly Report 30 September 2010 1

Manager’s Review

Introduction

At the 30th September 2010 the portfolio of

F&C Private Equity Trust had a total valuation of

£196.4 million. After deducting the accrued value

of the zero dividend preference shares of

£32.07 million and the net debt of £7.6 million

the net assets of the ordinary share pool and the

restricted voting share pool are £152.3 million

and £4.9 million respectively. The NAV per share

on a fully diluted basis is 208.59p for the ordinary

shares and 7.26p for the restricted voting shares,

increases over the quarter of 3.4 per cent and

2.1 per cent respectively. Since the quarter end

the restricted voting pool has accumulated over

£1 million of cash from realisations and

accordingly a special dividend of 1.30 pence per

restricted voting share will be paid on 7 January

2011.

Investment activity has continued at similar levels

to the first half. In the quarter £14.5 million of

new investments were made. £11 million of

this was by drawdowns from private equity

funds with an additional £3.5 million for the

new Aurora Fund and Blueway investments. This

compares with £11.6 million invested in the

previous quarter. If this level of activity is

maintained the total of new investments for

2010 will exceed £40 million, double the total

for 2009. This is important as these investments

are likely to be a significant contributor to the

Company’s growth in asset value in the medium

and longer term. Realisations have been fewer

this quarter totalling £3.8 million. This brings

the total for the first nine months to

£16.0 million.

Since the quarter end there have been a further

£2.5 million of drawdowns and £5.4 million of

realisations giving a net inflow of £2.9 million. The

total of realisations in the year to date is now

£20 million and it seems probable that the full

90

100

95

105

110

Ordinary shares Source: F&C Investment Business

100909 10 10

F&C Private Equity Trust Net Asset Value Total Return for the 12 months to 30 September 2010

Ordinary Share PerformanceFor the twelve months to 30 September 2010

2 F&C Private Equity Trust plc

year outcome will not be far below the

£27.8 million recorded, excluding secondary

sales, in both 2009 and 2008.

Over the last quarter there has been a discernible

improvement in confidence in the international

private equity market.

New Investments

The UK remains the largest individual market for

the Company but it has been relatively less active

than Continental Europe in this year so far. New

Investments of £3.3 million were made in the UK

in the quarter. The larger ones give an idea of the

wide range of businesses that are being backed

by our investment partners. Primary Capital III

called £800k for investment in Paperchase the

stationary and greeting card retailer. The

company has 65 High Street shops and a further

35 in store concessions. Dunedin Buy-out Fund

called £578k for investment in crawler cranes

company, Weldex. RJD Partners Fund II called

£617k for Verdant Leisure, a caravan park

company which has two sites near Dunbar in

East Lothian. RJD have specialist expertise in

leisure and the management team for Verdant is

derived from the successful team which built up

and sold the LGV investment South Lakeland

Leisure. In all these sectors there is sufficient

earnings visibility to justify new investment and

this indicates that belief in economic recovery is

well established.

Our first fresh commitment to a UK Buy-out fund

for two years was made during the quarter. F&C

PET has committed £7 million to the Inflexion

2010 Fund. This is the fourth Inflexion Fund we

have backed. Additionally we have coinvested

with them on four occasions. Two have seen

excellent exits (Viking and ICS), one incurred a

total loss (Eurotel) and one is very promising

(SMD Hydrovision). We will continue to back

managers who have performed well.

On the Continent there are signs of renewed

confidence with fresh investments being made in

France, Germany, Spain, the Nordic region and

Eastern Europe. The more significant new

investments demonstrate the range of

opportunities in Europe. The previously reported

co-investment of £2 million in convertible loan

stock in Norwegian Helicopter company Blueway

was made on 9th July. Progress to date is ahead

of budget and Reiten’s valuation is now at the

conversion price. Also in Norway Herkules III

called £0.4 million for investment in Intelecom, an

enterprise communications solution provider in the

Nordic Region and the UK. This company

provides call centre solutions amongst other

services. In France Ciclad 4 drew £0.6 million for

two companies, Copac, a designer, manufacturer

and lessor of ancilliary equipment for the

construction industry and Satori which maintains

and refurbishes aircraft components. In Spain

Ibersuizas II invested for us in ICFC, an own label

Ice Cream maker (£0.2 million) and in Grupo

Multiasistencia, a business process outsourcing

company (£0.5 million). The largest individual new

investment was made by the Hutton Collins Funds

II and III. £1.8 million was invested in Vizada,

the French based global leading provider of

satellite communication services. This market is

experiencing strong growth. Vizada was formed in

2007 from the merger of the satellite services

businesses of France Telecom and Telenor. This

exposure has been reduced after the quarter

end by £0.2 million through syndication. Total

European investments were £10.4 million.

The US also saw some new investments. In

particular Camden Partners Strategic Fund IV

made two investments drawing £0.5 million in

total. Minsec, based in Pennsylvania, is a regional

leader in the community corrections industry

and Santa Rosa Consulting provides advisory

services to hospitals on their implementation of

technology.


Realisations

This has been a quiet quarter for realisations with

only £2.4 million coming in. The largest individual

inflow was £1.4 million from RJD II Fund’s sale of

supply teacher agency, Teaching Personnel, to

Graphite. The exit statistics were an investment

multiple of 3.1x and an IRR of 49 per cent. In

France Ciclad 4 sold the wetsuit company,

Norprotex, returning £0.3 million to F&CPET and

achieving an investment multiple of 2.7x and an

IRR of 23 per cent.

Valuation Changes

There were a number of changes during the

quarter although it should be noted that most

30th September reports have yet to be received.

There was one significant adverse movement.

The company’s residual position in Viking

Moorings has been reduced to nil reflecting

challenging trading. This involves a write down of

£1.3 million. Other larger movements include an

uplift of £2.0 million from the Aurora Fund where,

as previously intimated, the portfolio was

immediately revalued.

This quarter has seen a wide range of small

upward movements in value. In most cases this

reflects improved trading rather than large uplifts

in multiples. The uplifts were across all fund types

and geographies. After a prolonged period of

subdued performance some of our venture funds

are recovering. In particular Life Science Partners

III, the Amsterdam based fund, is uplifted by

£0.5 million as a result of the sale completed

after the quarter end of Movetis, the Belgian GI

medicines company, to Shire Pharmaceuticals.

This gave an uplift of £0.7 million in this valuation

and a cash inflow of £1.3 million in the next

quarter. This exit achieved a 4x investment

multiple and IRR of 50 per cent. Alta Berkeley VI,

a very longstanding venture fund, recorded an

uplift of £0.3 million this quarter.

The Company’s mezzanine fund portfolio has had

strong quarter with both funds managed by MML

Capital showing good uplifts. International

Mezzanine Investment, which is in its 16th year,

was uplifted by £0.5 million and the more recent

Mezzanine Management Fund IV Fund was

uplifted by £0.4 million. The two most recent

Hutton Collins funds have recorded uplifts of

£0.4 million for Fund II and £0.2 million for Fund

III. Growth Capital Fund IIB is up by £0.4 million

reflecting strong trading and advanced exit

planning of its major investments.

Amongst the UK buy-out funds there has been a

mild aggregate decline in valuation over the

quarter. Most downgrades are slight with the

exception of Penta where the co-investment fund

is down by £1.1 million. This reflects a write-

down of 50 per cent of wireless mast company

WIG and the prepack administration of search

consultancy Kinsey Allen. The European buy-out

funds showed a stronger performance with

healthy upgrades from both Chequers Capital

(+£0.3 million) and Chequers Capital XV

(+£0.4 million).

Our co-investments, with the exception of the

remnant Viking Holdings position mentioned

above, are making good fundamental progress

which is coming through gradually into valuations.

3si, having been refinanced, is trading

comfortably ahead of last year and reducing debt

thus justifying an uplift of £0.5 million in the

quarter. Lifeways Community Care continues to

win tenders and is making acquisitions at

relatively low prices. Management is working

towards an exit next year. Over the quarter the

valuation was uplifted by £0.3 million.

The influence of exchange rate movements this

quarter was positive by about £3 million or

1.7 per cent. It thus accounted for just less than

half of the total uplift this quarter.

Manager’s Review


Financing

The excess of drawdowns over realisations of

some £12 million in the quarter has necessitated

further drawing of the revolving credit facility. At

the end of September £8 million of the

£40 million was drawn. At the end of September

the total outstanding undrawn commitments were

£95.7 million. This is after adding in the £7 million

commitment to the Inflexion 2010 Fund and the

£2.5 million commitment from the Aurora Fund.

With subsequent drawdowns the outstanding

commitment total is now £93 million. We are

comfortably in compliance with all covenants.

Outlook

A number of economic and market indicators

have been positive for some time and, as noted

above, there is a significant improvement in

confidence and hence in activity. A number of

our investment partners are more optimistic than

at any time in the last two years. There is steady

activity but volumes are low by historic standards

and the debt component of deals is generally

below 50 per cent. Surprisingly there is evidence

in some quarters of pricing at very high levels.

This is most obvious with certain larger deals and

larger funds. Some commentators suggest that

the upswing in activity after long periods of

inactivity reflects the pressure to deploy funds

before the expiry of investment periods. In some

cases this may be creating a ‘use it or lose it’

attitude. In parts of the market prices have been

pushed up to pre crisis levels and this cannot be

explained in every case by the quality of the

companies being acquired. This has fortunately

not been much in evidence in our portfolio where

discipline appears to be holding well. We are

potentially beneficiaries of this phenomenon with

the mid market funds finding exits through

secondary buy-outs.

The fundamentals of the underlying companies

are on an improving trend. The issue is one of

the gradient of increase and the degree to which

the fortunes of the companies are related to the

overall economy. The full impact of government

spending cuts and other austerity measures such

as VAT rises is as yet unclear. There are a

number of brightspots in the portfolio. In the co-

investments Lifeways, led by August Equity, is

growing rapidly and has a high profile in its

sector. An exit at a significant premium to our

current £4.4 million valuation is expected by

the end of Q3 next year. Of our very old

holdings International Mezzanine Investment is

approaching its final phase with the sales of its

two remaining holdings Industrial Acoustics and

Hallmark planned for the next 12 months. [This

should provide the natural point to wind up the

restricted voting pool.] SMD Hydrovision has built

an impressive order book and as this is

translated into profits next year we should see a

significant uplift. Again this business is subject to

acquisitive interest and we would expect an

attractive multiple of cost to be achieved on its

ultimate sale but not before 2012. Similar

developments are taking place at different scales

within the funds. Looking forward into 2011 we

expect further good progress in asset value.

Hamish Mair

25 November 2010


Investment Restricted % ofOrdinary % of Voting Restricted

Total % of Pool Ordinary Pool VotingGeographic Valuation Total Valuation Pool Valuation Pool

Focus £’000 Portfolio £’000 Portfolio £’000 Portfolio

Buyout Funds – Pan EuropeanArgan Capital LP Europe 6,667 3.4 6,667 3.5 – 0.0Stirling Square Capital Partners II Europe 5,892 3.0 5,892 3.1 – 0.0Candover 2005 Europe 5,015 2.5 5,015 2.6 – 0.0TDR Capital II C L.P. N. Europe 3,088 1.6 3,088 1.6 – 0.0Candover 2001 N. Europe 1,460 0.7 1,460 0.8 – 0.0TDR Capital N. Europe 1,105 0.6 1,105 0.6 – 0.0Candover 2008 Europe 1,035 0.5 1,035 0.5 – 0.0Candover 1997 N. Europe 193 0.1 71 0.0 122 2.6

Total Buyout Funds – Pan European 24,455 12.4 24,333 12.7 122 2.6

Buyout Funds – UKAugust Equity Partners I UK 5,344 2.7 5,344 2.8 – 0.0August Equity Partners II UK 5,336 2.7 5,336 2.8 – 0.0Penta F&C Co-Investment Fund L.P. UK 4,504 2.4 4,504 2.5 – 0.0RJD Private Equity Fund II NPV UK 3,902 2.0 3,902 2.0 – 0.0Primary Capital III UK 3,316 1.7 3,316 1.7 – 0.0Piper Private Equity Fund IV UK 2,227 1.1 2,227 1.2 – 0.0Hickory Fund Partnership LP UK 1,501 0.8 1,501 0.8 – 0.0Inflexion 2003 Buyout Fund LP UK 1,309 0.7 1,309 0.7 – 0.0Dunedin Buyout Fund II L.P. UK 1,241 0.6 1,241 0.6 – 0.0Inflexion 2006 Buyout Fund LP UK 1,145 0.6 1,145 0.6 – 0.0Primary Capital II UK 1,070 0.5 1,070 0.6 – 0.0Equity Harvest Fund UK 748 0.4 748 0.4 – 0.0Third Private Equity UK 613 0.3 226 0.1 387 8.2RL Private Equity UK 198 0.1 198 0.1 – 0.0Enterprise Plus UK 78 0.0 29 0.0 49 1.0

Total Buyout Funds – UK 32,532 16.6 32,096 16.9 436 9.2

Buyout Funds – European Country/RegionIbersuizas Capital Fund II Spain 4,288 2.2 4,288 2.2 – 0.0Chequers Capital XV France 3,523 1.8 3,523 1.8 – 0.0Gilde Buy-Out Fund III GP Benelux 3,405 1.7 3,405 1.8 – 0.0Ciclad 4 France 2,931 1.5 2,931 1.5 – 0.0Procuritas IV Nordic 2,477 1.4 2,477 1.4 – 0.0Herkules Private Equity III Nordic 2,402 1.4 2,402 1.4 – 0.0Capvis Equity III L.P. Europe 2,060 1.0 2,060 1.1 – 0.0Alto Capital II Italy 1,614 0.8 1,614 0.8 – 0.0N+1 Capital Privado Spain 1,499 0.8 1,499 0.8 – 0.0Pinebridge New Europe Fund II L.P. Central & East Europe 1,461 0.7 1,461 0.8 – 0.0Nmas1 Private Equity Spain 1,440 0.7 1,440 0.7 – 0.0DBAG Fund V International Germany 1,090 0.6 1,090 0.6 – 0.0DBAG Fund IV Germany 703 0.4 703 0.4 – 0.0Chequers Capital France 682 0.3 682 0.4 – 0.0Ciclad 2 France 16 0.0 6 0.0 10 0.2

Total Buyout Funds – European Country/Region 29,591 15.3 29,581 15.7 10 0.2

Private Equity Funds – USCamden Partners Fund III USA 3,176 1.6 3,176 1.6 – 0.0Blue Point Capital Partners II LP USA 2,952 1.5 2,952 1.5 – 0.0Camden Partners Fund IV USA 2,628 1.4 2,628 1.4 – 0.0RCP Fund II USA 2,365 1.2 2,365 1.2 – 0.0Blue Point Capital USA 744 0.4 744 0.4 – 0.0Hicks, Muse, Tate & Furst Fund IV USA 670 0.3 247 0.1 423 8.9

Total Private Equity Funds – US 12,535 6.4 12,112 6.2 423 8.9

Portfolio HoldingsAs at 30 September 2010


Investment Restricted % ofOrdinary % of Voting Restricted

Total % of Pool Ordinary Pool VotingGeographic Valuation Total Valuation Pool Valuation Pool

Focus £’000 Portfolio £’000 Portfolio £’000 Portfolio

Private Equity Funds – GlobalWarburg Pincus IX Global 6,134 3.1 6,134 3.2 – 0.0AIF Capital Asia III,L.P. Asia 2,784 1.4 2,784 1.4 – 0.0Warburg Pincus VIII Global 2,628 1.3 2,628 1.4 – 0.0Pinebridge Global Emerging Markets Fund II Global 1,644 0.9 1,644 0.9 – 0.0Pinebridge Latin America II Brazil 538 0.3 538 0.3 – 0.0

Total Private Equity Funds – Global 13,728 7.0 13,728 7.2 – 0.0

Venture Capital FundsSEP III Europe 3,751 1.9 3,751 1.9 – 0.0Life Sciences Partners III Europe 3,414 1.8 3,414 1.9 – 0.0SEP II Europe 2,344 1.2 2,344 1.2 – 0.0Alta-Berkeley VI Europe 2,018 1.0 2,018 1.0 – 0.0Environmental Technologies Fund LP UK 1,347 0.7 1,347 0.7 – 0.0Pentech Fund 1B Limited Partnership Europe 703 0.4 703 0.4 – 0.0Pentech Fund II L.P. Europe 461 0.2 461 0.2 – 0.0Albany Ventures III Europe 209 0.1 209 0.1 – 0.0Alta-Berkeley III Europe 12 0.0 12 0.0 – 0.0

Total Venture Capital Funds 14,259 7.3 14,259 7.4 – 0.0

Mezzanine FundsMezzanine Management Fund IV A Europe 7,003 3.5 7,003 3.6 – 0.0Accession Mezzanine II Central & East Europe 5,280 2.7 5,280 2.7 – 0.0Hutton Collins Capital Partners II Europe 5,137 2.6 5,137 2.7 – 0.0International Mezzanine Investment NV Europe 4,532 2.3 1,671 0.9 2,861 60.1Alchemy Special Opportunities Fund L.P. Europe 3,881 2.0 3,881 2.0 – 0.0Hutton Collins Capital Partners III Europe 3,811 1.9 3,811 2.0 – 0.0Growth Capital Fund IIB UK 3,167 1.6 3,167 1.6 – 0.01818 Mezzanine Fund II USA 1,519 0.8 1,519 0.8 – 0.01818 Mezzanine Fund USA 1,429 0.7 527 0.2 902 19.0Accession Mezzanine Central & East Europe 1,425 0.7 1,425 0.7 – 0.0Hutton Collins Mezzanine Europe 822 0.4 822 0.4 – 0.0

Total Mezzanine Funds 38,006 19.2 34,243 17.6 3,763 79.1

Direct – QuotedCandover Investments PLC Europe 962 0.5 962 0.5 – 0.0Strathdon Investment UK 26 0.0 26 0.0 – 0.0Parkmead Group (formerly Interregnum) UK 6 0.0 6 0.0 – 0.0

Total Direct – Quoted 994 0.5 994 0.5 – 0.0

SecondariesAurora Fund L.P. UK 3,502 1.8 3,502 1.8 – 0.0

Total Secondaries 3,502 1.8 3,502 1.8 – 0.0

Direct Investments/Co-investmentsStirling Square 3Si Co-Investment L.P. USA 4,743 2.4 4,743 2.5 – 0.0Lifeways UK 4,382 2.2 4,382 2.3 – 0.0Stirling Square Sicurglobal Co-Investment L.P. Italy 4,365 2.2 4,365 2.3 – 0.0SMD Hydrovision (Inflexion Co-Inv) Global 4,000 2.0 4,000 2.1 – 0.0Blueway 12% Conv Loan Note Europe 2,167 1.1 2,167 1.1 – 0.0Blues Clothing Co-invest UK 1,758 0.9 1,758 0.9 – 0.0Bartec Capvis III Co-invest Germany 1,397 0.7 1,397 0.7 – 0.0Translinc UK 1,294 0.7 1,294 0.7 – 0.0TDR Capital Algeco/Scotsman L.P. Europe 877 0.4 877 0.5 – 0.0ICS Co-Investment UK 495 0.3 495 0.3 – 0.0European Boating Holidays Europe 423 0.2 423 0.2 – 0.0Entec UK 80 0.0 80 0.0 – 0.0Whittan Co-Investment (No 1) L.P. Europe 715 0.4 715 0.4 – 0.0

Total Direct Investments/Co-investments 26,696 13.5 26,696 14.0 – 0.0

UK Gilts 51 0.0 51 0.0 – 0.0

AiM Holdings 18 0.0 18 0.0 – 0.0

Total Portfolio 196,367 100.0 191,613 100.0 4,754 100.0


Nine months to 30 September 2010 Nine months to 30 September 2009 Year to 31 December 2009

(unaudited) (unaudited) (audited)

Revenue Capital Total Revenue Capital Total Revenue Capital Total

£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000

Capital gains/(losses) on investments

Gains/(losses) on investments held

at fair value – 5,435 5,435 – (15,511) (15,511) – (12,896) (12,896)

Currency gains – 597 597 – 2,336 2,336 – 3,767 3,767

– 6,032 6,032 – (13,175) (13,175) – (9,129) (9,129)

Revenue

Investment income 2,066 – 2,066 1,413 – 1,413 1,813 – 1,813

Other income 36 – 36 19 – 19 42 – 42

Total income 2,102 6,032 8,134 1,432 (13,175) (11,743) 1,855 (9,129) (7,274)

Expenditure

Investment management fee (312) (935) (1,247) (253) (758) (1,011) (356) (1,067) (1,423)

Other expenses (546) – (546) (564) – (564) (720) – (720)

Total expenditure (858) (935) (1,793) (817) (758) (1,575) (1,076) (1,067) (2,143)

Profit/(loss) before finance costs

and taxation 1,244 5,097 6,341 615 (13,933) (13,318) 779 (10,196) 9,417

Finance costs (115) (2,400) (2,515) (170) (509) (679) (195) (709) (904)

Profit/(loss) before taxation 1,129 2,697 3,826 445 (14,442) (13,997) 584 (10,905) (10,321)

Taxation (292) 321 29 (131) 131 – (164) 164 –

Total comprehensive income 837 3,018 3,855 314 (14,311) (13,997) 420 (10,741) (10,321)

Return/(loss) per Ordinary share

– Basic 1.14p 3.54p 4.68p 0.44p (19.84)p (19.40)p 0.58p (14.89)p (14.31)p

Return/(loss) per Ordinary share

– Fully diluted 1.11p 3.45p 4.56p 0.43p (19.31)p (18.88)p 0.56p (14.49)p (13.93)p

Return/(loss) per Restricted

Voting share – Basic 0.01p 0.69p 0.70p (0.01)p 0.04p 0.03p 0.00p 0.03p 0.03p

The total column of this statement represents the Income Statement of the Group, prepared in accordance with IFRS. The supplementary revenue

and capital columns are both prepared under guidance published by the Association of Investment Companies.

All revenue and capital items in the above statement derive from continuing operations.

All income is attributable to the equity holders of F&C Private Equity Trust plc. There are no minority interests.

Amounts Recognised as Dividends in the Period

Nine months ended Nine months ended Year ended

30 September 2010 30 September 2009 31 December 2009


£’000 £’000 £’000

Final Restricted Voting share dividend of 0.50p for year ended 31 December 2008 – 336 336

Interim Ordinary share dividend of 0.80p for year ended 31 December 2009 578 – –

578 336 336

On 8 June 2009 a Special Dividend of 0.50 pence per Restricted Voting Share was paid. The total amount paid was £335,000.

On 7 May 2010 a Special Dividend of 1.00 pence per Restricted Voting Share was paid. The total amount paid was £671,000.

The above table does not form part of the Income Statement.

Consolidated Statement of Comprehensive Income


As at As at As at



£’000 £’000 £’000

Non-current assets

Investments at fair value through profit or loss 196,367 173,023 171,011

196,367 173,023 171,011

Current assets

Other receivables 9 784 157

Cash and cash equivalents 430 11,931 13,509

439 12,715 13,666

Current liabilities

Other payables (8,572) (34,835) (1,106)

Net current liabilities/(assets) (8,133) (22,120) 12,560

Total assets less current liabilities 188,234 150,903 183,571

Non-current liabilities

Zero dividend preference shares (31,049) – (28,992)

Net assets 157,185 150,903 154,579

Equity

Called-up ordinary share capital 1,394 1,394 1,394

Special distributable capital reserve 15,679 15,679 15,679

Special distributable revenue reserve 36,686 37,357 37,357

Capital redemption reserve 664 664 664

Capital reserve 101,832 95,244 98,814

Revenue reserve 930 565 671

Shareholders’ funds 157,185 150,903 154,579

Net asset value per Ordinary share – Basic 210.73p 201.75p 206.84p

Net asset value per Ordinary share – Fully diluted 208.59p 199.86p 204.81p

Net asset value per Restricted Voting share – Basic 7.26p 7.56p 7.56p

Consolidated Balance Sheet


Special Special

Distributable Distributable Capital

Share Capital Revenue Redemption Capital Revenue

Capital Reserve Reserve Reserve Reserve Reserve Total

£’000 £’000 £’000 £’000 £’000 £’000 £’000

For the nine months ended

30 September 2010 (unaudited)

Net assets at 1 January 2010 1,394 15,679 37,357 664 98,814 671 154,579

Total comprehensive income – – – – 3,018 837 3,855

Dividends paid – – (671) – – (578) (1,249)

Net assets at 30 September 2010 1,394 15,679 36,686 664 101,832 930 157,185

For the nine months ended

30 September 2009 (unaudited)


Total comprehensive income – – – – (14,311) 314 (13,997)

Dividends paid – – (335) – – (336) (671)

Net assets at 30 September 2009 1,394 15,679 37,357 664 95,244 565 150,903

For the year ended

31 December 2009 (audited)


Total comprehensive income – – – – (10,741) 420 (10,321)

Dividends paid – – (335) – – (336) (671)

Net assets at 31 December 2009 1,394 15,679 37,357 664 98,814 671 154,579

Consolidated Statements of Changes in Equity


1 The quarterly results have been prepared on the basis of the accounting policies set out in the statutory accounts of the Company for the

year ended 31 December 2009.

2 The basic return per share is based on a net return on ordinary activities after taxation of £3,855,000 (30 September 2009 – £(13,997,000);

31 December 2009 – £(10,321,000)) and on a weighted average of 67,084,807 Restricted Voting shares (30 September 2009 – 67,084,807;

31 December 2009 – 67,084,807) and Ordinary shares (30 September 2009 – 72,282,273; 31 December 2009 – 72,282,273) in issue

throughout the period.

The fully diluted return per Ordinary share is based on a net return on ordinary activities after taxation of £3,825,000 (30 September 2009 –

£(13,997,000); 31 December 2009 – £(10,321,000)) and on a weighted average of 74,241,429 shares (30 September 2009 – 74,241,429;

31 December 2009 – 74,241,429).

3 Reconciliation of Net Asset Value per Ordinary share: As at As at As at


£’000 £’000 £’000

Ordinary shares

Net asset value per share – Basic 210.73p 201.75p 206.84p

Net asset value per share – Fully diluted 208.59p 199.86p 204.81p

The basic net asset value per Ordinary share is based on net assets at the period end of £152,315,000 (30 September 2009 – £145,833,000;

31 December 2009 – £149,507,000) and on 72,282,273 (30 September 2009 – 72,282,273; 31 December 2009 – 72,282,273) shares, being

the number of Ordinary shares in issue at the period end.

The fully diluted net asset value per Ordinary share is based on net assets at the period end of £154,860,000 (30 September 2009 –

£148,378,000; 31 December 2009 – £152,052,000) and on 74,241,429 (30 September 2009 – 74,241,429; 31 December 2009 –

74,241,429) shares, being the number of Ordinary shares in issue at the period end after conversion of Ordinary warrants.

As at As at As at


£’000 £’000 £’000

Restricted Voting shares

Net asset value per share 7.26p 7.56p 7.56p

The net asset value per Restricted Voting share is based on net assets at the period end of £4,870,000 (30 September 2009 – £5,070,000;

31 December 2009 – £5,072,000) and on 67,084,807 (30 September 2009 – 67,084,807; 31 December 2009 – 67,084,807) shares, being the

number of Restricted Voting shares in issue at the period end.

4 The financial information for the nine months ended 30 September 2010 comprises non-statutory accounts within the meaning of Section 434

of the Companies Act 2006. The full audited accounts for the year ended 31 December 2009, on which the auditors issued an unqualified

report, have been lodged with the Registrar of Companies.

5 A special dividend of 1.30 pence per restricted voting share will be paid on 7 January 2011 to shareholders on the register on 10 December

2010.

Notes to Accounts


DirectorsMark Tennant (Chairman)

Elizabeth Kennedy

Douglas Kinloch Anderson

John Rafferty

David Shaw

Investment ManagerF&C Investment Business Limited

80 George Street

Edinburgh EH2 3BU

Telephone 0207 628 8000

Company SecretaryF&C Asset Management plc

80 George Street

Edinburgh EH2 3BU

Telephone 0207 628 8000

Registered Office80 George Street

Edinburgh EH2 3BU

Tel: 0207 628 8000

Fax: 0131 225 2375

Registrars and Transfer OfficeCapita Registrars

The Registry

34 Beckenham Road

Beckenham

Kent BR3 4TU

Telephone 0871 664 0300

website www.capitaregistrars.com

AuditorsErnst & Young LLP

Ten George Street

Edinburgh EH2 2DZ

BankersThe Northern Trust Company

50 Bank Street

Canary Wharf

London E14 5NT

The Royal Bank of Scotland plc

24–25 St Andrew Square

Edinburgh EH2 1AF

Association of Investment Companies (AIC)AIC

9th Floor

24 Chiswell Street

London EC1Y 4YY

Telephone 020 7282 5555

website www.theaic.co.uk

F&C Private Equity Trust plc is a member of the AIC.

Corporate Information

MLG Edinburgh 8141

Registered Office:

80 George Street

Edinburgh EH2 3BU

Tel: 020 7628 8000

Fax: 0131 225 2375

Registrars

Capita Registrars

The Registry

34 Beckenham Road

Beckenham

Kent BR3 4TU

Telephone 0871 664 0300

website www.capitaregistrars.com

f&c private equity trust plc - doc.morningstar.com

Documents