Foresight VCT PLC's Sale of Hospital Services Group: A 8.5x Return on Investment

Foresight VCT Plc, a leading investor in UK's most promising SMEs, has announced the successful sale of its portfolio company, Hospital Services Group Limited (HSL), generating a significant return on investment. The transaction, which closed on February 3, 2025, generated proceeds of £26.2 million at completion, with potential for a further up to £1.0 million over the coming years. This implies a return and IRR of up to 8.5 times the original investment and 25.7% respectively. Prior to the sale, the Company’s NAV per ordinary share stood at 80.1p, to which the exit will add 1.7p, giving a pro forma NAV per ordinary share of 81.8p.

HSL, a leading healthcare equipment distributor and service provider operating in Ireland, Northern Ireland, and Great Britain, has grown into a market-leading specialist healthcare distribution company. The company supplies and maintains technology that plays an essential role in early disease detection. Foresight VCT Plc's investment in HSL follows a period of solid growth for the business, with the experienced management team looking to continue this trajectory and diversify the business through the delivery of a broader range of services to healthcare customers.

The sale of HSL is a testament to Foresight VCT Plc's proactive approach to supporting its portfolio companies. The manager, Foresight Group LLP, took a proactive approach to supporting HSL, which contributed to the company's growth and success. This involved providing strategic guidance and resources to help HSL expand its operations and services. The company successfully completed a series of acquisitions, which broadened its product offerings and expanded its reach across Ireland, Northern Ireland, and Great Britain. These acquisitions helped HSL become a leading healthcare equipment distributor and service provider in the region.

The diversification of healthcare equipment and services provided by HSL played a significant role in attracting potential buyers and maximizing the sale value. HSL expanded its range of healthcare equipment and services across Ireland, Northern Ireland, and Great Britain. This diversification allowed HSL to cater to a wider range of healthcare customers, increasing its appeal to potential buyers. The successful diversification and growth of HSL under Foresight's management showed potential buyers that the company had a proven track record of adapting to market demands and expanding its offerings. This track record likely increased the confidence of buyers in HSL's ability to continue growing and generating value.

The sale of HSL is a significant achievement for Foresight VCT Plc, demonstrating the company's ability to generate substantial returns for its investors. The transaction generated proceeds of £26.2 million at completion, with potential for a further up to £1.0 million over the coming years. This implies a return and IRR of up to 8.5 times the original investment and 25.7% respectively. Prior to the sale, the Company’s NAV per ordinary share stood at 80.1p, to which the exit will add 1.7p, giving a pro forma NAV per ordinary share of 81.8p.

In conclusion, the sale of Hospital Services Group Limited is a significant achievement for Foresight VCT Plc, demonstrating the company's ability to generate substantial returns for its investors. The transaction generated proceeds of £26.2 million at completion, with potential for a further up to £1.0 million over the coming years. This implies a return and IRR of up to 8.5 times the original investment and 25.7% respectively. Prior to the sale, the Company’s NAV per ordinary share stood at 80.1p, to which the exit will add 1.7p, giving a pro forma NAV per ordinary share of 81.8p.