Final Results
16/04/2025 11:32
FORESIGHT VCT PLC LEI: 213800GNTY699WHACF46 16 April 2025 Final results 31 December 2024 Foresight VCT plc, managed by Foresight Group LLP, today announces the final results for the year ended 31 December 2024. These results were approved by the Board of Directors on 14 April 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 An increase in Net Asset Value Total Return of 8.7% for the year and a dividend yield of 15.5%, including a special dividend. Total net assets £222.9 million. A final dividend of 4.4p per share was paid on 28 June 2024, costing £11.9 million. A special interim dividend of 7.0p per share was also paid on 28 June 2024, distributing £18.8 million. Net Asset Value per share decreased by 4.5% from 85.9p at 31 December 2023 to 82.0p at 31 December 2024. After adding back the payment of 11.4p dividend made on 28 June 2024, NAV Total Return per share was 93.4p. Four new investments totalling £8.3 million and six follow-on investments costing £6.0 million were made during the year. The value of the investment portfolio fell by £4.7 million in the year to 31 December 2024. This was driven by an increase of £17.5 million in the valuation of investments, plus £14.3 million of new and follow-on investments offset by sales of investments totalling £36.0 million and loan repayments totalling £0.5 million. The offer for subscription launched on 10 December 2024 was closed to further applications on 20 December 2024 and raised a total of £24.1 million after expenses. The Board is recommending a final dividend for the year ended 31 December 2024 of 4.1p per share, to be paid on 27 June 2025. Following the successful realisation of Hospital Services Group Limited, the Board also declared a special dividend of 6.4p per share, to be paid on 9 May 2025. CHAIR’S STATEMENT I am pleased to present the Company’s audited Annual Report and Accounts for the year ended 31 December 2024, and to report an increase in Net Asset Value Total Return of 8.7% for the year and a dividend yield of 15.5%, including a special dividend. Portfolio overview 51 Investments as at 31 December 2024 £17.5m Increase in valuation of investments in the year ended 31 December 2024 £36.5m Cash proceeds generated from disposal of investments in the year ended 31 December 2024 Overview of 2024 I am pleased to present the Company’s audited Annual Report and Accounts for the year ended 31 December 2024. The Company’s Net Asset Value (“NAV”) Total Return per share increased by 7.5p per share to 93.4p, which is calculated by adding the dividends of 11.4p paid during the year to the Company’s year end NAV per share of 82.0p. In the first half of 2024 the UK economy started to bounce back from the recession of late 2023, showing some signs of growth again. However, the second half of the year proved more subdued, resulting in the overall annual growth in UK GDP of a modest 0.9%. Inflation eased, reaching the Bank of England’s target rate of 2% in May, but nudged up again in the subsequent months, with CPI ending the year at 2.5%. With inflation more under control, the Bank of England began cutting UK interest rates but at a slower rate than originally anticipated. The year saw elections in a large number of countries, many of which generally expressed their dissatisfaction with their incumbent governments and voted for change. In the UK the Labour government swept to power in July, emphasizing growth as a key objective. Their first budget in October included increased public spending on health, infrastructure and technology which should help to boost the economy, but surprisingly also levied higher employer taxes on businesses, potentially to the detriment of the labour market and inflation. Both domestic and international concerns, particularly the continuing geopolitical conflicts in Ukraine and the Middle East, have weighed on the markets during the year. The Company’s well-balanced portfolio, with investments in different sectors and at different stages of development, has performed well in aggregate against this fluctuating backdrop. Some of the investee companies have faced greater challenges than others, particularly those that are consumer‑facing. The Manager continues to work closely with them to help them through these difficulties. On the other hand, other companies within the portfolio are flourishing in this state of flux and delivering strong profits. We are encouraged by the improving M&A market and have benefited recently from some very profitable exits. The overall solid performance of the Company in 2024 demonstrates the advantages of a generalist VCT and well‑diversified portfolio. The Board and the Manager continue to pursue a strategy for the Company which includes the following four key objectives: Developing Net Asset Value Total Return above a 5% annual target Paying annual ordinary dividends of at least 5% of the latest announced NAV Implementing a significant number of new and follow‑on investments, exceeding deployment requirements to maintain VCT status Maintaining a programme of regular share buybacks at a discount of no more than 7.5% to NAV The Board and the Manager believe that these key objectives remain appropriate and the Company’s performance in relation to each of them over the past year is reviewed in more detail below. Net Asset Value and dividends The net assets of the Company increased moderately over the period from £219.1 million at 31 December 2023 to £222.9 million at 31 December 2024. This was following the payment of both an ordinary and special dividend, costing the Company £30.7 million in total (including shares allotted under the dividend reinvestment scheme). After the successful realisations of Callen-Lenz Associates Limited and Specac International Limited, the Board declared a special interim dividend of 7.0p per share in addition to the final dividend for the year ended 31 December 2023 of 4.4p per share. The combined dividend of 11.4p per share was paid on 28 June 2024. At the end of 2024, nearly three quarters of the Company’s assets were invested and the Board believed it would be in the Company’s best interest to raise further funds to provide liquidity for its activities in 2025 and beyond. On 10 December 2024, the Company launched an offer for subscription to raise up to £20.0 million, with an over‑allotment facility to raise up to a further £5.0 million, through the issue of new shares. The offer was closed to applications on 20 December 2024 having raised gross proceeds of £25.0 million, £24.1 million after expenses. We would like to thank those existing shareholders who supported the offer and welcome all new shareholders to the Company. The sales of Callen-Lenz Associates Limited and Specac International Limited generated proceeds of £34.2 million at completion. From initial investment to completion, the two exits combined returned to the Company a total of £35.7 million. This is an exceptional achievement from a combined initial investment of £6.2 million and represents a cash-on-cash multiple of 6.4 times. The Company also successfully exited 200 Degrees Holdings Limited for proceeds of £1.9 million. Post year end the Company continued its strong track record of exits with the sale of Hospital Services Group Limited, generating proceeds of £26.2 million at completion with potential for a further £1.0 million over the coming years, representing a return of 8.5 times the original investment. Following this successful realisation, the Board has declared a special dividend of 6.4p per share to be paid on 9 May 2025, based on an ex‑dividend date of 17 April 2025 and with a record date of 22 April 2025. The percentage increase in total return per share from an investment in the Company’s shares made five years ago is 53.3%, which is well above the minimum target return set by the Board of 5% per annum. Exceeding this target is at the core of the Company’s current and future portfolio management objectives. Adding back the 30% upfront income tax relief and subtracting the maximum fees paid by direct investors on entry and the 7.5% discount on buyback, an initial investment of £10,000 made on 1 January 2020 would have yielded £17,886 five years later, assuming dividends were reinvested when paid. This represents a tax exempt gain of £7,886 over five years or an average return of 15.8% per annum, not including a potential further £1,591 tax credit receivable on dividends reinvested. An illustration of this calculation can be seen on page 9 of the Annual Report. The Board is recommending a final dividend for the year ended 31 December 2024 of 4.1p per share, to be paid on 27 June 2025 based on an ex-dividend date of 12 June 2025, with a record date of 13 June 2025. At the year end, amounts available for distribution totalled £73,735,000 (2023: £52,046,000). The Company continues to achieve its target dividend yield of 5% of NAV, which was set in 2019 in light of the change in portfolio towards earlier-stage, higher-risk companies, as required by the VCT rules. The Board and the Manager hope that this level may continue to be exceeded in future by payment of additional special dividends as and when particularly successful portfolio disposals are achieved. Investment performance and portfolio activity A detailed analysis of the investment portfolio performance over the period is given in the Manager’s Review. In brief, during the year under review, the Manager completed four new investments in a range of sectors, and six follow-on investments costing £8.3 million and £6.0 million respectively. The Company also disposed of three investments very successfully, as described above, as well as the disposal of three challenged businesses within the portfolio. Furthermore, the Company received loan principal repayments totalling £0.5 million. Further details of these particular investments and realisations can be found in the Manager’s Review on pages 17 to 20 in the Annual Report. The Board and the Manager are confident that a significant number of new and follow-on investments can be achieved in 2025. The Company and Foresight Enterprise VCT plc have the same Manager and share similar investment policies. The Board closely monitors the extent and nature of the pipeline of investment opportunities and is reassured by the Manager’s confidence in being able to deploy funds without compromising quality and to satisfy the investment needs of both companies. Responsible investing The analysis of environmental, social and governance (“ESG”) issues is embedded in the Manager’s investment process and these factors are considered key in determining the quality of a business and its long-term success. Central to the Manager’s responsible investment approach are five ESG principles that are applied to evaluate investee companies, acquired since May 2018, throughout the lifecycle of their investment, from their initial review and acquisition to their final sale. Every year, the portfolio companies are assessed and progress is measured against these principles. More detailed information about the process can be found on pages 46 to 49 of the Manager’s Review in the Annual Report. Buybacks During the period, the Company repurchased 7,209,542 shares for cancellation at an average discount of 7.5%, in line with its objective of maintaining regular share buybacks at a discount of no more than 7.5% to the prevailing NAV per share. The Board and the Manager consider that the ability to offer to buy back shares at this level of discount is fair to both continuing and selling shareholders and continues to help underpin the discount to NAV at which the shares trade. Share buybacks are timed to avoid the Company’s closed periods. Buybacks will generally take place, subject to demand, during the following times of the year: April, after the Annual Report has been published June, prior to the half-yearly reporting date of 30 June September, after the Half-Yearly Report has been published December, prior to the end of the financial year Management charges, co-investment and performance incentive The annual management fee is an amount equal to 2.0% of net assets, excluding cash balances above £20.0 million, which are charged at a reduced rate of 1.0%. This has resulted in ongoing charges for the period ended 31 December 2024 of 2.2%, which is at the lower end of the range when compared to recent cost ratios of competitor VCTs. Since March 2017, co-investments made by the Manager and individual members of the Manager’s private equity team have totalled £1.4 million alongside the Company’s investments of £115.6 million. The co-investment scheme requires that the individual members of the team invest in all of the Company’s investments from that date onwards and prohibits selective “cherry picking” of co‑investments. The Board believes that the co‑investment scheme aligns the interests of the Manager’s team with those of shareholders and has contributed to the gradual improvement in the Company’s investment performance. In addition to the co-investment scheme, a performance incentive scheme has been in place since 2023. This scheme, in brief, is based on the Company’s investment performance over a rolling five-year period, over which the percentage movement in NAV Total Return per share needs to exceed a hurdle of 25.0% before any performance fee each year can be earned. The annual fee is subject to a cap of 1.0% of the closing NAV at the end of the five-year period. More details on the calculation of the performance fee can be found in note 13 of the Annual Report. A total of £2.0 million has been accrued as an estimate of the performance fee due in respect of this financial year, based on the Company’s performance over the last five years. Over this period I am very pleased to report that the NAV Total Return per share has increased by 41.5p before any performance incentive provision, representing an average of 8.3p each year. Board composition The Board continues to review its own performance and undertakes succession planning to maintain an appropriate level of independence, experience, diversity and skills in order to be in a position to discharge its responsibilities. 2024 has seen some planned changes to the composition of the Board. After more than eight years as a Non-Executive Director, Jocelin Harris did not stand for re-election at the AGM on 4 June 2024. On behalf of the Company, I would once again like to thank Jocelin for his significant contribution and dedication to the Company, which has benefited enormously from his wise counsel during his many years of service. Shareholder communication We were delighted to meet with some shareholders in person at the AGM on 4 June 2024. We hope many of you will be available to attend our next in-person investor forum event which will take place on 14 May 2025. These events have proven very popular with our shareholders in the past and provide the opportunity to learn firsthand about some of our investee companies from their founders and management. VCT 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. Annual General Meeting The Company’s Annual General Meeting will take place at the Company’s registered office on 2 June 2025 at 2:30pm and we look forward to meeting as many of you as possible in person. Please refer to the formal notice on pages 109 and 110 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 2.30pm on 29 May 2025 and to forward any questions by email to InvestorRelations@foresightgroup.eu in advance of the meeting. Outlook The UK economy has faced challenges throughout the year, with GDP growth slowing significantly in the second half of 2024. The election of a majority Labour government in July brought some political stability, but its first budget in October provoked criticism for increasing the cost of labour for small businesses. The Chancellor of the Exchequer’s recent Spring Statement highlighted the difficulties of the limited fiscal headroom for the government that may hamper its plans for growth. Consumer confidence and business investment remain subdued and recent forecasts for economic growth in the UK have been disappointing, reflecting fears of persistent inflation and weak productivity. These concerns have been exacerbated by heightened uncertainties regarding geopolitical conflicts and trade wars, following the election of President Trump and the introduction of his radical and erratic foreign policies and trade tariffs. We are 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. Nonetheless, the Company’s current portfolio of investments is highly diversified by number, business sector, size and stage of development and overall has already demonstrated its relative resilience in recent difficult economic and geopolitical circumstances. We are confident that this approach will continue to provide some protection in future volatile market conditions. The current uncertain conditions can provide young creative companies with opportunities to disrupt the status quo and develop new products and services. The UK still remains an attractive place for entrepreneurs to establish and grow new businesses. The Manager is continuing to see a promising pipeline of potential investments, both new and follow-on, which are sourced nationally through its regional network. Cash proceeds both from recent successful exits and fundraising at the end of 2024 will provide the resources to make selective acquisitions from an increasing number of emerging investment opportunities. We believe that the Company’s generalist and diversified portfolio is well-placed to address the challenges ahead and to continue to generate long-term value for shareholders. Margaret Littlejohns Chair 14 April 2025 MANAGER’S REVIEW “The Board has appointed Foresight Group LLP (the “Manager”) to provide investment management and administration services.” Portfolio diversification Technology, Media & Telecommunications (cost 43% | valuation 34%) Healthcare (cost 25% | valuation 29%) Consumer & Leisure (cost 7% | valuation 6%) Industrials & Manufacturing (cost 11% | valuation 12%) Business Services (cost 13% | valuation 14%) Other (cost 1% | valuation 5%) Portfolio summary As at 31 December 2024, the Company’s portfolio comprised 51 investments with a total cost of £101.1 million and a valuation of £166.6 million. The portfolio is diversified by sector, transaction type and maturity profile. Details of the ten largest investments by valuation, including an update on their performance, are provided on pages 29 to 33 of the Annual Report. In the year to 31 December 2024, the value of the investment portfolio fell by £4.7 million as a result of strong exits of several investments realising £36.5 million, offset by an increase of £17.5 million in the valuation of investments plus £14.3 million of new and follow-on investments. Overall, the portfolio has performed well despite uncertainty in the wider market, notably significant geopolitical issues, the UK budget, the US election and continued domestic price inflation, coupled with higher interest rates. In line with the Board’s strategic objectives, the Manager remains focused on growing the Company through further development of Net Asset Value Total Return. In the year, Net Asset Value Total Return increased by 8.7%, meaning that the Company has successfully met this objective in the period under review. New investments 2024 was a year of relative calm in financial terms, when compared to recent years. Deal activity across the market has steadily grown throughout the year, suggesting confidence is tentatively returning, although the economic picture in the UK remains finely balanced. Interest rates have remained high, with inflation reducing more slowly than anticipated and the Autumn Budget including tax changes which are not helping UK SMEs. Careful management remains crucial to steering portfolio companies through this environment. The Manager has continued to invest in its deal origination capabilities and identified a large number of potentially attractive investment opportunities during the year. Over the course of 2024, four new investments were completed, investing a total of £8.3 million. New investments were across nurseries, manufacturing, cyber security and tech-enabled services. Behind these, there continues to be a strong pipeline of opportunities that the Manager expects to convert during the next 12 months. Follow-on investments totalling £6.0 million were also made in six existing investee companies. Family Adventures Group Ltd In January 2024, the Company invested £2.5 million of growth capital into Family Adventures Group, a provider of daycare nurseries and children’s leisure sites that combines soft play areas with theatrical role play facilities. All inspected sites have been rated “Good” by Ofsted and have an average score of 9.9/10 on daynurseries.co.uk; whilst the leisure sites have market-leading Net Promoter Scores and high repeat visits. The investment will be used to aid the business with a continued rollout of nursery and leisure sites across the South West and the Midlands. Evolve Dynamics Limited In March 2024, the Company completed a £2.0 million investment into Evolve Dynamics. Founded in 2016, the company designs and manufactures smaller Unmanned Aerial Systems (“UAS”) with capabilities for intelligence, surveillance and reconnaissance. The company’s UAS products are also widely deployed within UK and international police forces, fire services, energy inspection and search and rescue organisations. The investment will help scale the business and aid in new product launches. Lepide Group Holding Company Limited In March 2024, the Company invested £1.9 million into Lepide, a cyber security software solution that helps organisations to protect their unstructured data. Lepide actively monitors event logs within Windows Active Directory in order to detect suspicious activity and help organisations to manage over‑exposure of data. The investment will help scale the business and accelerate growth initiatives. Resi Design Limited In October 2024, the Company invested £1.9 million in Resi Design, a technology-enabled architectural business that manages structural home improvement projects from concept through to planning, design, build and sign-off. The company has delivered c.8,000 projects with a market-leading 98% planning approval rate. The investment will enable Resi Design to continue its impressive growth trajectory, as well as focusing on strategic partnerships to achieve wider reach. Follow-on investments Given the size of the portfolio, the number of follow-on investments relative to new deals remains high, a trend that is expected to continue. These follow-on investments are to support further growth initiatives for companies within the portfolio, or to support them through a period of challenging trading. The Manager is pleased to report that despite continuing macroeconomic uncertainty and stubbornly high interest rates, the portfolio remains resilient overall. The Manager has made follow-on investments in six companies during 2024, totalling £6.0 million. Further details of each of these are provided here. The additional equity injections in the year were used to support further growth plans, such as launching new products and providing cash headroom for further growth. In view of the economic outlook, which remains challenging, the Manager continued to be vigilant about the health of the rest of the portfolio and the need for follow-on funding over the coming months. HomeLink Healthcare Limited In March 2024, the Company completed a £1.0 million follow‑on investment into HomeLink Healthcare. The Company first invested into HomeLink in March 2022. Contracting with the NHS, the business provides patients with wound care, physiotherapy and intravenous therapies in their own home. HomeLink is also a leader in remote patient monitoring practices, offers a virtual ward solution and has now saved the NHS over 150,000 hospital bed days. The investment will support the organic expansion of the company. Sprintroom Limited In March 2024, the Company completed a £0.8 million follow‑on investment into Sprintroom, which trades as Sprint Electric. The business designs and manufactures drives for controlling electric motors in light and heavy industrial applications, as well as recovering and reusing otherwise lost energy. The investment will be used to drive continued revenue growth and develop further iterations of the new product range. Hexarad Group Limited In June 2024, the Company completed a £0.7 million follow-on investment into Hexarad Group. The Company initially invested £0.8 million into Hexarad in June 2021, and a further a £0.7 million follow-on in August 2022. Hexarad is a teleradiology company, supporting NHS and private healthcare providers with access to a diversified pool of radiologists in order to provide fast, accurate diagnosis and enable more timely and higher-quality patient care. The latest investment forms part of a larger funding round, including a new third-party investor, to support the ongoing development of the technology, as well as the expansion of the commercial and operational teams. NorthWest EHealth Limited In August 2024, the Company completed a £0.7 million investment into NWEH. This was followed by a further £0.8 million in November 2024. NWEH is a provider of technology‑enabled clinical trials services to the pharmaceutical and life sciences sectors, leveraging NHS electronic health records. The investments during the year will enable NWEH further cash runway to convert an important commercial opportunity. Strategic Software Applications Ltd In August 2024, the Company completed a further investment of £1.0 million in Strategic Software Applications, trading as Ruleguard. Ruleguard is a SaaS regulatory compliance platform for financial services institutions. The investment will enable Ruleguard to continue to invest in its team and secure high‑quality SaaS revenues from a growing customer base. Red Flag Alert Technology Group Limited In September 2024, the Company invested £0.5 million into Red Flag Alert. This was followed by a further £0.5 million in December 2024. Red Flag Alert is a business intelligence platform which provides prospecting, credit risk and compliance products to its customers. The new funding will enable the business to develop new features and convert the customer pipeline to deliver SaaS revenue growth. Realisations The M&A climate has proved more challenging than in recent years in light of the macroeconomic conditions of high interest rates and geopolitical uncertainty. Despite this, the Manager was pleased to report some particularly strong realisations, as well as the disposal of some of the more challenged businesses within the portfolio. The Manager continues to engage with a range of potential acquirers of several portfolio companies and to carefully consider the timing of exit for each. Demand remains for high-quality, high-growth businesses from both private equity and trade buyers. Ollie Quinn Limited In January 2024, following a period of challenging trading driven by continued wage inflation and a squeeze on consumer discretionary spend, the Company exited the UK division of Ollie Quinn, a branded retailer of prescription glasses, sunglasses and non‑prescription polarised sunglasses based in the UK and Canada. The exit returned £0.2 million on completion. A sale of the remaining Canadian business to its management team was completed in February 2024, with a retained interest negotiated which may deliver future upside for the Company. So-Sure Limited In March 2024, the investment in So-Sure was fully written off as it failed to perform in line with the management team’s plan proposed at the Manager’s Investment Committee. So‑Sure Limited is a technology company acting as “Managing General Agent” for insurers. The company’s mission is to offer a more trusted proposition, greater pricing transparency and improved customer experience through its customer-centric digital platform. So-Sure was acquired by the Australian insurance firm, Open, in March 2024. Specac International Limited In March 2024, the Company announced the sale of Specac International, a leading manufacturer of high-specification sample analysis and preparation equipment used in testing and research laboratories worldwide, primarily supporting infrared spectroscopy. The transaction generated proceeds of £11.2 million at completion. When added to £1.5 million of cash returned pre-exit, this implies a total cash-on-cash return of 9.4x, equivalent to an IRR of 33%, with a further £704,000 of deferred consideration recognised at the year end. Since investment, the business has grown to sell globally through both original equipment manufacturers (“OEMs”) and distributors. Throughout the investment, the Manager also engaged with the team to support management team changes, improvements in governance, headcount and numerous product launches, as well as a major site move. The exit will facilitate the continued growth of the business. Callen-Lenz Associates Limited In May 2024, the Company achieved the successful exit of Callen-Lenz Associates, returning £23.0 million to the Company. A further £2.1 million was received in October 2024 and £0.5 million in December 2024. Including a further £1.4 million of earnout recognised in debtors at the year end, the sale implies a 5.4 times cash-on-cash return on the total investment made of £4.8 million, equivalent to an IRR of 123%. Since investment, the Manager has worked with the board to expand both non-executive and executive leadership, which led to successful product launches and a significant increase in headcount and revenue. With the business focus successfully transitioned from R&D to commercial sales, the exit will facilitate continued growth. 200 Degrees Holdings Limited In October 2024, the Company announced the exit of 200 Degrees, a chain of coffee shops and a coffee roastery business headquartered in Nottingham. The transaction generated proceeds of £1.9 million at completion. Adding interest received across the life of the investment, the total returns rise to £2.2 million, equating to a 1.5x money multiple and an IRR of 6%. During the period of the Company’s investment, 200 Degrees increased the number of coffee shops from six on investment to 21, growing revenue eight times and creating a significant number of jobs. Crosstown Dough Ltd In June 2024, the Company realised its investment in Crosstown Dough, a doughnut vendor operating from 31 sites including a mix of bricks and mortar stores, food trucks and market stalls. Crosstown’s core products are made at its central production unit in Battersea. The sale of Crosstown to Karali Group, a large franchise operator of Burger King in the UK and US, allowed distributions to be made to creditors whilst facilitating the continuation of the business. Like Ollie Quinn, the business had been impacted by wage and supply chain inflation. Realisations in the year ended 31 December 2024
| Accounting cost | Valuation at | ||||
| at date | Realised | 31 December | |||
| of disposal | Proceeds4 | gain/(loss) | 2023 | ||
| Company | Detail | (£) | (£) | (£) | (£) |
| Callen-Lenz Associates Limited1 | Full disposal | 4,826,733 | 22,806,317 | 17,979,584 | 17,326,479 |
| Specac International Limited2 | Full disposal | 800,000 | 11,161,216 | 10,361,216 | 10,851,677 |
| 200 Degrees Holdings Limited | Full disposal | 1,252,832 | 1,877,707 | 624,875 | 1,879,247 |
| Ollie Quinn Limited | Full disposal | 6,684,016 | 195,000 | (6,489,016) | 707,974 |
| So-Sure Limited3 | Full disposal | 1,584,158 | — | (1,584,158) | — |
| Crosstown Dough Ltd | Full disposal | 1,485,149 | — | (1,485,149) | 474,541 |
| Spektrix Limited | Loan repayment | 263,371 | 263,371 | — | 263,371 |
| Positive Response Corporation Ltd | Loan repayment | 225,000 | 225,000 | — | 225,000 |
| Total disposals | 17,121,259 | 36,528,611 | 19,407,352 | 31,728,289 |
| Company | Valuation methodology | Net movement (£) |
| Hospital Services Group Limited | Sales proceeds | 5,291,227 |
| Aquasium Technology Limited | Discounted earnings multiple | 2,679,331 |
| Hexarad Group Limited | Price of last funding round | 2,474,822 |
| TLS Management Limited | Net assets | 2,357,704 |
| Cinelabs International Ltd | Discounted earnings multiple | 1,690,500 |
| Spektrix Limited | Price of last funding round | 1,664,010 |
| Red Flag Alert Technology Group Limited | Price of last funding round | 1,182,528 |
| Aerospace Tooling Corporation Limited | Discounted revenue multiple | (1,409,316) |
| NorthWest EHealth Limited | Discounted revenue multiple | (1,934,166) |
| Year ended 31 December 2024 | Year ended 31 December 2023 | ||||||
| Revenue | Capital | Total | Revenue | Capital | Total | ||
| £’000 | £’000 | £’000 | £’000 | £’000 | £’000 | ||
| Realised gains on investments | — | 24,451 | 24,451 | — | 14,573 | 14,573 | |
| Investment holding (losses)/gains | — | (1,723) | (1,723) | — | 2,833 | 2,833 | |
| Income | 4,307 | — | 4,307 | 5,372 | — | 5,372 | |
| Investment management fees | (1,043) | (5,161) | (6,204) | (1,004) | (4,481) | (5,485) | |
| Other expenses | (705) | — | (705) | (817) | — | (817) | |
| Return on ordinary activities before taxation | 2,559 | 17,567 | 20,126 | 3,551 | 12,925 | 16,476 | |
| Taxation | (579) | 579 | — | (476) | 476 | — | |
| Profit and comprehensive income for the year | 1,980 | 18,146 | 20,126 | 3,075 | 13,401 | 16,476 | |
| Return per share | 0.7p | 6.7p | 7.4p | 1.3p | 5.6p | 6.9p | |
| Year ended 31 December 2024 | Called-up share capital £’000 | Share premium account £’000 | Capital redemption reserve £’000 | Distributable reserve1 £’000 | Capital reserve1 £’000 | Revaluation reserve £’000 | Total £’000 | |
| As at 1 January 2024 | 2,552 | 92,766 | 1,263 | 24,876 | 27,170 | 70,492 | 219,119 | |
| Share issues in the year2 | 238 | 20,216 | — | — | — | — | 20,454 | |
| Expenses in relation to share issues3 | — | (642) | — | — | — | — | (642) | |
| Repurchase of shares | (72) | — | 72 | (5,480) | — | — | (5,480) | |
| Realised gains on disposal of investments | — | — | — | — | 24,451 | — | 24,451 | |
| Investment holding losses | — | — | — | — | — | (1,723) | (1,723) | |
| Dividends paid | — | — | — | (30,714) | — | — | (30,714) | |
| Cancellation of share premium | — | (92,765) | (1,262) | 94,027 | — | — | — | |
| Management fees charged to capital | — | — | — | — | (5,161) | — | (5,161) | |
| Revenue return before taxation for the year | — | — | — | 2,559 | — | — | 2,559 | |
| Taxation for the year | — | — | — | (579) | 579 | — | — | |
| As at 31 December 2024 | 2,718 | 19,575 | 73 | 84,689 | 47,039 | 68,769 | 222,863 |
| Year ended 31 December 2023 | Called-up share capital £’000 | Share premium account £’000 | Capital redemption reserve £’000 | Distributable reserve1 £’000 | Capital reserve1 £’000 | Revaluation reserve £’000 | Total £’000 | |
| As at 1 January 2023 | 2,192 | 56,380 | 1,195 | 47,701 | 16,602 | 67,659 | 191,729 | |
| Share issues in the year2 | 428 | 37,827 | — | — | — | — | 38,255 | |
| Expenses in relation to share issues3 | — | (1,441) | — | — | — | — | (1,441) | |
| Repurchase of shares | (68) | — | 68 | (5,369) | — | — | (5,369) | |
| Realised gains on disposal of investments | — | — | — | — | 14,573 | — | 14,573 | |
| Investment holding gains | — | — | — | — | — | 2,833 | 2,833 | |
| Dividends paid | — | — | — | (20,531) | — | — | (20,531) | |
| Management fees charged to capital | — | — | — | — | (4,481) | — | (4,481) | |
| Revenue return before taxation for the year | — | — | — | 3,551 | — | — | 3,551 | |
| Taxation for the year | — | — | — | (476) | 476 | — | — | |
| As at 31 December 2023 | 2,552 | 92,766 | 1,263 | 24,876 | 27,170 | 70,492 | 219,119 |
| Notes | As at 31 December 2024 £’000 | As at 31 December 2023 £’000 | |
| Fixed assets | |||
| Investments held at fair value through profit or loss | 166,576 | 171,348 | |
| Current assets | |||
| Debtors | 3,678 | 3,510 | |
| Cash and cash equivalents | 55,922 | 46,200 | |
| 59,600 | 49,710 | ||
| Creditors | |||
| Amounts falling due within one year | (3,313) | (1,939) | |
| Net current assets | 56,287 | 47,771 | |
| Net assets | 222,863 | 219,119 | |
| Capital and reserves | |||
| Called-up share capital | 2,718 | 2,552 | |
| Share premium account | 19,575 | 92,766 | |
| Capital redemption reserve | 73 | 1,263 | |
| Distributable reserve | 84,689 | 24,876 | |
| Capital reserve | 47,039 | 27,170 | |
| Revaluation reserve | 68,769 | 70,492 | |
| Equity shareholders’ funds | 222,863 | 219,119 | |
| Net Asset Value per share | 82.0p | 85.9p |
| Year ended | Year ended | ||
| 31 December | 31 December | ||
| 2024 | 2023 | ||
| £’000 | £’000 | ||
| Cash flow from operating activities | |||
| Loan interest received from investments | 1,472 | 2,212 | |
| Dividends received from investments | 241 | 1,525 | |
| Other income received from investments | — | 284 | |
| Deposit and similar interest received | 2,658 | 1,326 | |
| Investment management fees paid | (4,628) | (4,014) | |
| Secretarial fees paid | (130) | (130) | |
| Other cash payments | (569) | (631) | |
| Net cash (outflow)/inflow from operating activities | (956) | 572 | |
| Cash flow from investing activities | |||
| Purchase of investments | (14,295) | (19,352) | |
| Proceeds on sale of investments | 36,529 | 33,566 | |
| Proceeds on deferred consideration | 5,043 | 1,171 | |
| Net cash inflow from investing activities | 27,277 | 15,385 | |
| Cash flow from financing activities | |||
| Proceeds of fundraising | 14,604 | 33,547 | |
| Expenses of fundraising | (526) | (599) | |
| Repurchase of own shares | (5,491) | (5,755) | |
| Equity dividends paid | (25,186) | (16,475) | |
| Net cash (outflow)/inflow from financing activities | (16,599) | 10,718 | |
| Net inflow of cash in the year | 9,722 | 26,675 | |
| Reconciliation of net cash flow to movement in net funds | |||
| Increase in cash and cash equivalents for the year | 9,722 | 26,675 | |
| Net cash and cash equivalents at start of year | 46,200 | 19,525 | |
| Net cash and cash equivalents at end of year | 55,922 | 46,200 |
| 31 December | 31 December | |
| 2024 | 2023 | |
| £’000 | £’000 | |
| Net assets | £222,863,000 | £219,119,000 |
| No. of shares at year end | 271,779,253 | 255,218,477 |
| Net Asset Value per share | 82.0p | 85.9p |
| Year ended | Year ended | |
| 31 December | 31 December | |
| 2024 | 2023 | |
| £’000 | £’000 | |
| Total return after taxation | 20,126 | 16,476 |
| Total return per share (note a) | 7.4p | 6.9p |
| Revenue return from ordinary activities after taxation | 1,980 | 3,075 |
| Revenue return per share (note b) | 0.7p | 1.3p |
| Capital return from ordinary activities after taxation | 18,146 | 13,401 |
| Capital return per share (note c) | 6.7p | 5.6p |
| Weighted average number of shares in issue in the year (note d) | 271,271,444 | 240,044,732 |
| Year ended | Year ended | |
| 31 December | 31 December | |
| 2024 | 2023 | |
| £’000 | £’000 | |
| Deposit and similar interest received | 2,658 | 1,326 |
| Loan stock interest | 1,408 | 2,237 |
| Dividends receivable | 241 | 1,525 |
| Other income | — | 284 |
| 4,307 | 5,372 |
| 31 December | 31 December | |
| 2024 | 2023 | |
| £’000 | £’000 | |
| Unquoted investments | 166,576 | 171,348 |
| £’000 | ||
| Book cost as at 1 January 2024 | 103,944 | |
| Investment holding gains | 67,404 | |
| Valuation at 1 January 2024 | 171,348 | |
| Movements in the year: | ||
| Purchases at cost | 14,301 | |
| Disposal proceeds1 | (36,529) | |
| Realised gains2 | 19,408 | |
| Investment holding losses3 | (1,952) | |
| Valuation at 31 December 2024 | 166,576 | |
| Book cost at 31 December 2024 | 101,124 | |
| Investment holding gains | 65,452 | |
| Valuation at 31 December 2024 | 166,576 |