Foresight VCT Plc: Sale of FFX Group Limited

Exit: Sale of portfolio company FFX to H2 Equity Partners delivers 4.3x return

The Board of Foresight VCT Plc (“FVCT” or “the Company”) is pleased to announce the successful sale of portfolio company FFX Group Limited (“FFX”), one of the UK's largest independent suppliers of high quality power tools, fixings and building supplies, to H2 Equity Partners (“H2”) on 22 January 2021.

The transaction generated proceeds of  £11.1 million at completion and the Company will receive up to £0.3 million of deferred consideration after 18 months subject to certain conditions, implying a cash on cash return of 4.3x the initial investment of £2.7m made in October 2015, equivalent to  an IRR of c.32%. The Company’s NAV per ordinary share stood at 68.8p as at September 2020, to which the exit will add 0.7p, giving a pro forma NAV per ordinary share of 69.5p.

Since FVCT made its original investment in October 2015, the manager, Foresight Group LLP (“Foresight”) has taken a proactive approach to supporting the senior management team, introducing Chairperson George Adams who has extensive experience in the sector, including sixteen years at Kingfisher, three of which as Chair of Screwfix. The team was further strengthened with experienced, multi-channel retail executive CEO Chris Yates joining the business in 2019 and a Group Finance Director and eCommerce Director joining in 2020.

During the five year investment period, FFX opened a new 60,000 ft2 distribution centre and a new head office in Kent, while staff numbers increased by more than 125. The business updated its brand and launched an extensive range of its own products. A direct sales team was established in order to expand FFX’s customer base to include larger contractors and specialist subcontractors and sell direct to site. Throughout, FFX has continued to develop its online presence both at ffx.co.uk and via eBay.

John Gregory, Chairman of Foresight VCT said: “FFX has been a great success story for the Company and for our shareholders. We are delighted that Foresight has been able to make such a positive contribution to the growth of the business which has created over 125 new jobs, and we wish FFX every success for the future with H2.”

ENDS

For more information contact:

Gary Fraser, Foresight Group: 0203 667 8181