Final Results
31/07/2025 15:58
FORESIGHT TECHNOLOGY VCT PLC LEI: 21380013CXOR8N6OD977 31 July 2025 Final results 31 March 2025 Foresight Technology VCT plc, managed by Foresight Group LLP, today announces the final results for the year ended 31 March 2025. These results were approved by the Board of Directors on 31 July 2025. The Annual Report will shortly be available in full at www.foresightgroup.eu. All other statutory information can also be found there. Financial Highlights Total Net Assets as at 31 March 2025: £38.4m 2024: £32.1m Net Asset Value per share as at 31 March 2025: 91.4p 2024: 98.8p During the year, under the Offers for subscription for Foresight Technology VCT Plc (“the Company”), dated 6 September 2023 and 5 September 2024 (“the Offer”), £9.8 million of new funds were raised. During the year, the Company invested in six new portfolio companies and executed eleven follow-on investments into nine existing companies. On 1 October 2024 the Company completed the purchase of 88,986 of its own shares at a nil discount under the variation to the buyback policy for the former Ordinary Shareholders. Since the end of the reporting period, a further £3.0 million was raised, bringing the total funds raised to £45.2 million. Since the end of the reporting period, one new investment and three follow-on investments have been made, bringing total deployment to £33.2 million. Chairman’s Statement On behalf of the Board, I present the Audited Annual Report and Accounts for Foresight Technology VCT Plc (“the Company”) for the year ended 31 March 2025 and to provide you with an update on the developments affecting the Company. Company The FWT share class was launched in December 2019, and represents an exciting investment opportunity. The Company provides investors with the opportunity to invest in a portfolio of early-stage companies with high growth-potential, developing innovative and occasionally transformational technologies across a range of different sectors. Fundraising and share issues The Company offers for subscription, dated 6 September 2023 and relaunched on 5 September 2024, were each up to £15 million (with an overallotment facility for up to an additional £10 million) through the issue of shares. During the year ended 31 March 2025, across both offers, 9.7 million shares were allotted, raising a further £9.8 million, bringing the total funds raised to over £42 million. Post period end, a further 3.0 million FWT shares were allotted, increasing the total funds raised to £45.2 million. Portfolio and deal activity A detailed analysis of the investment portfolio performance over the period is given in the Investment Manager’s Review on page 8 of the Annual Report. During the period under review the Investment Manager completed six new and eleven follow-on investments into nine exciting companies costing a total of £9.8 million. The new investments in the year were into, Cavero Quantum Limited, Xim Limited, Bitfount Limited, Illumion Limited, Alison.AI limited and uFraction8 Limited. The follow-on investments that were completed in the year were into, Acu-flow Limited, dRisk inc, Vector Photonics Limited, Forefront RF Limited, VividQ Limited, Zero Point Motion Limited, Cambridge GaN Devices Limited, Previsico Limited and Phlux Technology Limited. Details of each of the top ten companies by value as at 31 March 2025 can be found in the Investment Manager’s review on pages 11 to 15 of the Annual Report. As at 31 March 2025, the Company had made investments totalling £30.0 million in 36 exciting portfolio companies. Post period end, the Company made one new investment and three follow-on investments totalling £3.2 million. The Investment Manager continues to see a strong pipeline of potential investments sourced through its regional networks and well developed relationships with advisers and the SME community; however, it is also focused on supporting the existing portfolio through the current economic environment. Following the fundraising over the last couple of years, the Company is in a position to fully support the portfolio, where appropriate, and exploit potential attractive investment opportunities. Management fees The annual management fee is calculated as 2.0% of Net Assets and equated to £721,000 during the year. The Board believe that the annual management fee represents good value for investors. Responsible investing The Board notes the commitment of the Investment Manager to being a “Responsible Investor”. Foresight places environmental, social and governance (“ESG”) criteria at the forefront of its business and investment activities in line with best practice and in order to enhance returns for their investors. Further detail can be found on page 19 of the Annual Report. Annual General Meeting The Company’s Annual General Meeting will take place on 18 September 2025 and we look forward to meeting as many of you as possible in person. Please refer to the formal notice on pages 68 to 71 of the Annual Report for further details in relation to the format of this year’s meeting. We would encourage you to submit your votes by proxy ahead of the deadline of 12.30pm on 12 September 2025 and to forward any questions by email to InvestorRelations@ foresightgroup.eu in advance of the meeting. Buybacks On 20 September 2023 the Board announced a variation to the buyback policy for the former Ordinary Shareholders which would allow the Shareholders to benefit from a buyback at a nil discount to NAV in respect of FWT Shares which they hold pursuant to the above-mentioned redesignation. This Buyback offer remained open until 20 September 2024. On 1 October 2024 the Company completed the purchase of 88,986 of its own shares at a nil discount from previous Ordinary Shareholders under the variation to the buyback policy described above. Following the fifth anniversary of the launch of the FWT share class, the buyback policy is now to repurchase shares that become available in the market at a discount of 5% to NAV, subject to liquidity. The Company retains Panmure Liberum as its corporate broker to assist in operating the share buyback process. Contact details for Panmure Liberum can be found on page 2 of the Annual Report. Sunset clause I am pleased to report that new regulations have been made to extend the UK’s VCT scheme by ten years to April 2035, following the European Commission’s confirmation that they would not oppose the continuation of the scheme. This now removes any recent uncertainty and will help support further investment by the VCT sector in early-stage companies. Outlook The world economy remains under pressure from persistent geopolitical instability, rising sovereign debt, and a sharp pivot toward defence spending. The return of Donald Trump to the White House has added a fresh layer of uncertainty, with new trade tariffs and a new “America first” approach rattling global markets. Conflicts in Ukraine, the Middle East, and the South China Sea have only intensified the volatility, while NATO allies scramble to boost military budgets amid doubts over long-term US support. Against this backdrop, the UK economy has struggled to find momentum. After a sluggish 2024, GDP growth flatlined in early 2025. Although the election of a majority Labour government in July 2024 brought political clarity, its economic agenda has drawn criticism, particularly from small businesses facing higher labour costs. Consumer confidence remains fragile, and business investment has yet to rebound, despite the Bank of England’s May rate cut to 4.25%. With energy and utility prices expected to rise, inflationary pressures are likely to persist, keeping growth forecasts for the rest of 2025 muted. The Board remains conscious that such economic conditions could prove challenging for our investee companies, which are unquoted, small, early-growth businesses and by their nature entail higher levels of risk and lower liquidity than larger listed companies. Yet amid the headwinds, there are bright spots, especially for UK-based high technology companies. The Board welcomes the Government’s new Science and Technology Framework, which lays the groundwork for a more dynamic and innovative economy. Backed by a commitment to unlock over £20 billion in public R&D funding by 2027, the strategy is designed to crowd in private capital and accelerate the scale-up of breakthrough technologies. Among its ten key initiatives are targeted support for AI, quantum computing, semiconductors, and engineering biology; improved access to growth finance; and investment in cutting-edge research infrastructure. If executed effectively, this framework could provide powerful tailwinds for early-stage technology companies, many of which are well-positioned to benefit from the UK’s renewed focus on science- led growth. Portfolio management and recent performance The Investment Manager remains focused on driving the Company’s investments towards opportunities for realisation, navigating what continues to be a difficult operating environment for early-stage businesses. For companies that require further funding to fully commercialise their technologies or scale towards profitability, the team works closely with management to ensure technical and commercial milestones are met, while also supporting fundraising efforts through targeted investor introductions. For more advanced businesses, the conversations shift to focus on exploring options and positioning for exit, with regular engagement with M&A advisors to stay informed on market appetite. Despite this level of ‘value creation’ activity increasing year-on-year as the portfolio matures, the broader macroeconomic backdrop, particularly the weak performance of listed markets, has reduced and slowed near-term exit chances and led to a number of valuation reductions in the portfolio. That said, most portfolio companies continue to make steady progress and continue to demonstrate the potential for attractive returns. The Board therefore believes the current approach remains appropriate given the stage and nature of the investments. The current market also presents opportunities for new investments. Valuations have adjusted, and the fundraising environment has become more selective, conditions, which, while difficult for some, create openings for active investors. The Investment Manager continues to see a strong pipeline of new and follow-on opportunities sourced through its national network. The recent fundraise ensures the Company is well placed to act where there is clear long-term value. Ernie Richardson Chairman 31 July 2025 Investment Manager’s Review Summary Between the launch of the FWT Share class on 20 December 2019 and the end of the reporting period, the Company had raised £42.2 million. The Offer provides investors with the opportunity to invest in a portfolio of early-stage companies with high growth-potential, developing innovative and occasionally transformational technologies across a range of different sectors. As at 31 March 2025, the Company had made investments into 36 companies totalling £30.0 million Key portfolio movements During the year, net investment holding losses totalled £2.2 million. £1.8 million of this arose from the 100% write down of dRISK, Rovco and Vypercore. Investments into six new companies and eleven follow-on investments into nine existing companies were made during the year. These investments are summarised below: Acu-flow Limited: a developer of surface acoustic wave nebulisers enabling the delivery of next-generation respiratory pharmaceuticals. Alison.AI Limited*: a deep tech AI solution allowing customers to generate a measurable insights on their video and creative campaigns. Bitfount Limited*: a tech-enabled solution that connects data owners, algorithm developers and problem solvers to enable training, running and evaluation of AI models and advanced analytics without any data centralisation. Cambridge GaN Limited: a developer of a new generation of gallium nitride semiconductor power. Cavero Quantum Limited*: a University of Leeds spin-out developing an innovative encryption technology. dRISK Inc: an AI company accelerating the training of autonomous vehicles on how to avoid unexpected, realworld “edge case” or hazardous scenarios. Forefront RF Limited: a manufacturer of next generation radio frequency modules. Illumion Limited*: a spinout from Refeyn Limited that has produced the first optical microscope for electrochemistry. Xim Limited*: the world’s first and only clinical grade contactless vital signs provider for blood pressure, pulse and respiration. Phlux Technology Limited: a developer of Infrared sensor technology that is 10x more sensitive than market incumbents. Previsico Limited: a University of Loughborough spin-out providing a market-leading flood forecasting and warning software platform. uFraction8 Limited*: a developer of microfluidics-based filter systems as a solution to help bio-manufacturers harvest their products with energy-efficient and scalable bioprocessing systems. Vector Photonics Limited: a University of Glasgow spin-out commercialising the next generation of semiconductor laser devices. VividQ Limited: a technology company enabling the next generation of holographic displays. Zero Point Motion Limited: a developer of a chip-scale unit for ultraprecise motion-tracking and indoor navigation. *New Investment in the year. Further information relating to the top ten investments by value can be found on pages 11 to 15 of the Annual Report. Post year end investments Subsequent to the year end, the Company has made one new investment into Spaceflux Limited and three follow on investments into Opsydia Limited, Audioscenic Limited and Zayndu Limited which are described on page 9 of the Annual Report, bringing total deployment to £33.2 million. Fundraising The Offer continued to build positive momentum in the market until its close on 10 July 2025. Post year end, a further £3.0 million was raised, bringing the total raised to £9.6 million in the latest fund raising round and £45.2 million overall. Pipeline The Investment Manager has a strong pipeline covering new deals and follow-ons. At the time of writing, two deals had passed the Investment Manager’s final Investment Committee stage and were nearing completion. On two further deals, terms and exclusivity had been agreed and, subject to Investment Committee approval, were progressing to due diligence. Foresight Group LLP Investment Manager 31 July 2025 Audited Financial Statements Income Statement for the year ended 31 March 2025
| Year ended 31 March 2025 | Year ended 31 March 2024 | |||||
| Revenue £’000 | Revenue £’000 | Revenue £’000 | Revenue £’000 | Capital £’000 | Total £’000 | |
| Investment holding losses | — | (2,206) | (2,206) | — | (1,086) | (1,086) |
| Income | 335 | — | 335 | 941 | — | 941 |
| Investment management fees | (180) | (541) | (721) | (135) | (404) | (539) |
| Other expenses | (478) | — | (478) | (459) | — | (459) |
| (Loss)/profit before taxation | (323) | (2,747) | (3,070) | 347 | (1,490) | (1,143) |
| Taxation | — | — | — | — | — | — |
| (Loss)/profit after taxation | (323) | (2,747) | (3,070) | 347 | (1,490) | (1,143) |
| (Loss)/profit per share: | ||||||
| Ordinary Share | n/a | n/a | n/a | 2.3p | (2.4)p | (0.1)p |
| FWT Share | (0.9)p | (7.5)p | (8.4)p | (1.8)p | (2.5)p | (4.3)p |
| Year ended 31 March 2025 | Called-up share capital | Share premium account | Capital redemption reserve | Distributable reserve* | Capital reserve* | Revaluation reserve | Total |
| £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | |
| As at 1 April 2024 | 324 | 29,132 | 208 | 272 | 199 | 1,923 | 32,058 |
| Share issues in the year | 96 | 9,678 | — | — | — | — | 9,774 |
| Expenses in relation to share issues | — | (244) | — | — | — | — | (244) |
| Expenses in relation to prior year share issues | — | (18) | — | — | — | — | (18) |
| Investment holding losses | — | — | — | — | — | (2,206) | (2,206) |
| Management fees charged to capital | — | — | — | — | (541) | — | (541) |
| Share premium cancellation¹ | — | (37,098) | — | 37,098 | — | — | — |
| Buybacks | — | — | — | (86) | — | — | (86) |
| Revenue loss for the year | — | — | — | (323) | — | — | (323) |
| As at 31 March 2025 | 420 | 1,450 | 208 | 36,961 | (342) | (283) | 38,414 |
| Year ended 31 March 2024 | Called-up share capital | Share premium account | Capital redemption reserve | Distributable reserve* | Capital reserve* | Revaluation reserve | Total |
| £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | |
| Asat1April2023 | 568 | 19,079 | 208 | 1,828 | 603 | 3,009 | 25,295 |
| Share issues in the year | 97 | 9,960 | — | — | — | — | 10,057 |
| Expenses in relation to share issues | — | (236) | — | — | — | — | (236) |
| Expenses in relation to prior year share issues | — | (12) | — | — | — | — | (12) |
| Share class merger | (341) | 341 | — | — | — | — | — |
| Investment holding losses | — | — | — | — | — | (1,086) | (1,086) |
| Dividends paid | — | — | — | (1,903) | — | — | (1,903) |
| Management fees charged to capital | — | — | — | — | (404) | — | (404) |
| Revenue profit for the year | — | — | — | 347 | — | — | 347 |
| Asat31March2024 | 324 | 29,132 | 208 | 272 | 199 | 1,923 | 32,058 |
| As at 31 March 2025 £’000 | As at 31 March 2024 £’000 | |
| Fixed assets | ||
| Investments held at fair value through profit or loss | 29,733 | 22,111 |
| Current assets | ||
| Debtors | 10 | 983 |
| Cash and cash equivalents | 8,965 | 9,276 |
| 8,975 | 10,259 | |
| Creditors | ||
| Amounts falling due within one year | (294) | (312) |
| Net current assets | 8,681 | 9,947 |
| Net assets | 38,414 | 32,058 |
| Capital and reserves | ||
| Called-up share capital | 420 | 324 |
| Share premium account | 1,450 | 29,132 |
| Capital redemption reserve | 208 | 208 |
| Distributable reserve | 36,961 | 272 |
| Capital reserve | (342) | 199 |
| Revaluation reserve | (283) | 1,923 |
| Equity shareholders’ funds | 38,414 | 32,058 |
| Net asset value per share | ||
| FWT Share | 91.4p | 98.8p |
Year ended 31 March 2025 £’000 | Year ended 31 March 2024 £’000 | |
| Cash flow from operating activities | ||
| Deposit and similar interest received | 305 | 119 |
| Investment management fees paid | (743) | (689) |
| Secretarial fees paid | (104) | (103) |
| Other net cash payments | (26) | (371) |
| Net cash outflow from operating activities | (568) | (1,044) |
| Cash flow from investing activities | ||
| Purchase of investments | (9,099) | (3,146) |
| Investments awaiting completion | — | (729) |
| Investment income received | — | 822 |
| Net cash outflow from investing activities | (9,099) | (3,053) |
| Cash flow from financing activities | ||
| Proceeds of fund raising | 9,705 | 9,996 |
| Expenses of fund raising | (261) | (157) |
| Repurchase of own shares | (88) | — |
| Equity dividends paid | — | (1,903) |
| Net cash inflow from financing activities | 9,356 | 7,936 |
| Net (outflow)/inflow of cash in the year | (311) | 3,839 |
| Reconciliation of net cash flow to movement in net funds | ||
| (Decrease)/increase in cash for the period | (311) | 3,839 |
| Net cash at start of period | 9,276 | 5,437 |
| Net cash at end of period | 8,965 | 9,276 |
| Analysis of changes in net debt | |||
| At 1 April 2024 £’000 | Cashflow £’000 | At 31 March 2025 £’000 | |
| Cash and cash equivalents | 9,276 | (311) | 8,965 |
| Year ended 31 March 2025 | Year ended 31 March 2024 | |||
| Ordinary Shares £'000 | FWT Shares £’000 | Ordinary Shares £'000 | FWT Shares £’000 | |
| Total loss after taxation | — | (3,070) | (17) | (1,126) |
| Total loss per share (note a) | — | (8.4)p | (0.1)p | (4.3)p |
| Revenue (loss)/profit from ordinary activities after taxation | — | (323) | 806 | (459) |
| Revenue profit/(loss) per share (note b) | — | (0.9)p | 2.3p | (1.8)p |
| Capital loss from ordinary activities after taxation | — | (2,747) | (823) | (667) |
| Capital loss per share (note c) | — | (7.5)p | (2.4)p | (2.5)p |
| Weighted average number of shares in issue during the year | — | 36,685,138 | 34,593,623 | 26,203,986 |
| Year ended 31 March 2025 £’000 | Year ended 31 March 2024 £’000 | |
| Dividends received | 30 | 822 |
| Bank interest | 305 | 119 |
| 335 | 941 |
| 2025 | 2024 | |
| £’000 | £’000 | |
| Unquoted Investments | 29,733 | 22,111 |
2025 £’000 | 2024 £’000 | |
| Book cost at 1 April 2024 | 20,188 | 16,942 |
| Investment holding gains | 1,923 | 3,009 |
| Valuation at 1 April 2024 | 22,111 | 19,951 |
| Movements in the year: | ||
| Purchases at cost | 9,828 | 3,246 |
| Investment holding losses | (2,206) | (1,086) |
| Valuation at 31 March 2025 | 29,733 | 22,111 |
| Book cost at 31 March 2025 | 30,016 | 20,188 |
| Investment holding (losses)/gains | (283) | 1,923 |
| Valuation at 31 March 2025 | 29,733 | 22,111 |