Half-Yearly Report

Octopus Future Generations Vct

22/09/2025 17:45

Octopus Future Generations VCT plc

Half-Yearly Report

Octopus Future Generations VCT plc (‘Future Generations VCT’ or the ‘Company’) is backing businesses that aim to address some of society’s biggest challenges, providing an opportunity for investors to share in the growth of ambitious, purpose‑driven companies.

The Company is managed by Octopus AIF Management Limited (the ‘Manager’), who has delegated investment management to Octopus Investments Limited (‘Octopus’ or ‘Portfolio Manager’) via its investment team Octopus Ventures.

The Company today announces the half-yearly report for the six months to 30 June 2025.

Chair’s statement

Key financials

Total net assets: £52.6 million

Net Asset Value (NAV) per share: 88.4p

Dividend declared: 5.6p

I am pleased to present the unaudited half-yearly report and accounts for the Company for the six months to 30 June 2025. 

The Net Asset Value (NAV) per share at 30 June 2025 was 88.4p, which represents a net decrease of 0.4p per share (-0.5%) from 31 December 2024. We are now in the fourth year of investing, and while many of our companies remain at an early stage, the portfolio continues to develop in line with our long-term strategy. The recently declared special dividend payment allows shareholders to benefit from our first company realisation. 

In the six months, the Company invested £4.5m into five new and follow-on opportunities. The cash balance of £20.8 million as at 30 June 2025 represents 39.5% of net assets at that date.

Fundraise
On 3 February 2025, to further support the Company’s growth, the Board launched an initial offer to raise up to £5 million. The offer closed for new applications on 1 April 2025 having successfully raised this amount. We would like to take this opportunity to welcome all new shareholders to the Company and thank all shareholders for their continued support. 

As investors will be aware, the intention is to invest in businesses which meet one of three key themes, which we believe demonstrate good investment prospects, as well as having the potential to transform the world we live in for the better. These three themes are further summarised in the full report.

Dividend
We are pleased that on 22 August 2025, the Company announced that it would pay its first dividend, marking an important milestone in its progress. A special dividend of 5.6p will be paid on 24 September 2025, as a result of the proceeds received from the successful disposal of Cobee which occurred in September 2024, the Company’s first full exit. This first realisation, together with other companies achieving important commercial milestones, provides some encouraging signs that the portfolio is beginning to deliver on its long-term potential.

Following approval of the Dividend Reinvestment Scheme (DRIS) at the Annual General Meeting (AGM) in June, 7% of shareholders have decided to take advantage of the offer and will receive their dividend in Future Generations VCT shares. This is an excellent option for those of you who prefer the capital value of your investment to potentially grow to achieve your investment objectives. 

VCT Qualification
We are pleased to report that in June 2025, the Company met the requirement for 80% of the Company’s funds to be invested in VCT-qualifying holdings by 30 June 2025. The remainder will continue to be invested in permitted non-VCT qualifying investments or cash.

Principal Risks and Uncertainties
The Board continues to review the risk environment in which the Company operates on a regular basis. There have been no significant changes to the key risks which were described on pages 37 to 39 of the Annual Report for the year ended 31 December 2024. The Board does not anticipate any significant changes to these risks.

Portfolio Manager and team
In September 2024, Octopus Titan VCT plc, a fund which the Company has co-invested alongside to date, announced a review of strategy, due to the ongoing performance issues it has faced. The review has now concluded, and the Shareholder Circular has been distributed summarising the findings and go-forward strategy. As part of the conclusion of the strategic review, Octopus has committed to invest in additional team resourcing. The Board and Octopus have agreed that further senior level resource will help to broaden and deepen the level of experience across the team and increase the focus on driving returns and realisations from the existing portfolio. As detailed in the annual report, Simon King, Lead Fund Manager for Octopus Future Generations VCT, has left to pursue a new opportunity and we will make an announcement regarding his successor in due course.

Outlook
The modest decline in NAV over the six-month reporting period was delivered against a highly volatile and dynamic macroeconomic backdrop. Both economic and geopolitical developments continue to weigh heavily on growth prospects and the fundraising environment for early-stage businesses. Furthermore, the marked decline in the US Dollar, to which certain portfolio companies are exposed, has created a small additional headwind for the Company’s performance. 

I would like to conclude by thanking both my Board colleagues and the Octopus team on behalf of all shareholders for their hard work. The Board’s long-term view of early-stage venture capital remains positive, and I am looking forward to seeing what the remainder of the year brings for the Company.

Helen Sinclair
Chair
22 September 2025

Portfolio Manager’s review

At Octopus, our focus is on managing your investments and providing investors with clear and transparent communication. Our annual and half-yearly updates are designed to keep you informed about the progress of your investment.

Focus on Future Generations VCT’s performance

Below is a breakdown of the 37 investments held as at 30 June 2025, showing the proportion and value of the portfolio in each investment theme:

Proportion by number of portfolio companies in each theme
Revitalising healthcare: 19
Empowering people: 11
Building a sustainable planet: 7

Value of the portfolio in each theme
Revitalising healthcare: £15.3m
Empowering people: £10.2m
Building a sustainable planet: £5.9m

Overview of investments
The Company completed five investments in the six months to 30 June 2025 (comprising a total of £4.5 million) and one further investment after the reporting date totalling £0.3 million. More information on some of these businesses can be found below:

A selection of our completed investments

Revitalising healthcare
Ufonia
The company combines AI and clinical evidence to automate routine clinical conversations. Its technology makes care more convenient, reliable and consistent for patients, increases hospitals’ capacity, and allows clinical professionals to spend more time meeting patients’ needs. Dora, its medically regulated autonomous clinical assistant, can call any number of patients and have a natural voice conversation covering a wide range of common clinical consultations.

Empowering people
Slamcore
The company has developed spatial intelligence technology for machinery. It creates embedded software that uses data from multiple sensors to help products intelligently understand and navigate the complex and dynamic worlds around them. It works across a range of products, from forklifts to autonomous robots.

Building a sustainable planet
Phlux
The company is developing new infrared sensor technology that is transforming the performance of laser range finders, LiDAR systems, and fibreoptic telecommunications test equipment (OTDRs). Its technology can offer up to 50% more range, up to 12x higher resolution and up to 40% lower system cost.

Top ten investments
Here, we set out the cost and valuation of the top ten holdings, which account for over 61% of the value of the portfolio.

Portfolio 
Investment theme
Investment cost
Valuation at
30 June 2025
 1. CoMind Technologies Ltd 
 Revitalising healthcare
 £2.8m 
 £2.8m 
 2. HelloSelf Limited 
 Revitalising healthcare
 £2.6m 
 £2.6m 
 3. Menwell Limited (t/a Manual) 
 Revitalising healthcare
 £0.9m 
 £2.3m 
 4. RemoFirst, Inc. 
 Empowering people
 £1.2m 
 £2.3m 
 5. Intrinsic Semiconductor Technologies Ltd
 Empowering people 
 £1.5m 
 £1.7m 
 6. Neat SAS 
 Building a sustainable planet
 £0.6m 
 £1.6m 
 7. Phlux Technology Ltd 
 Empowering people
 £1.2m 
 £1.6m 
 8. Apheris AI GmbH 
 Empowering people
 £1.5m 
 £1.5m 
 9. Ufonia Ltd 
 Revitalising healthcare
 £1.1m 
 £1.5m 
 10. TYTN Ltd (t/a Double Word) 
 Building a sustainable planet 
 £0.5m 
 £1.4m 

Portfolio engagement
As part of our strategy, we require portfolio companies to put in place a Diversity and Inclusion policy (D&I) and an Anti-Harassment policy. We also engage with each company to help them understand their greenhouse gas (GHG) emissions and support them to take action to minimise them. You can see how we are progressing with these goals below, as at the date of this report:

D&I policy status
Policy in place: 100%

Engaged in monitoring 2024 GHG emissions1
Signed up: 11%
Introduced: 58%
In progress: 31%

1As of 30 June 2025, only full year 2024 carbon emissions data was available.

Focus on Performance

The NAV of 88.4p per share at 30 June 2025 represents a decrease of 0.4p per share versus a NAV of 88.8p per share as at 31 December 2024. This decrease over the six-month period has been largely driven by the downward valuation movements across 13 companies which saw a collective decrease in value of £3.1 million. The businesses which contributed most significantly to this were Infinitopes, CellVoyant and VyperCore. Both Infinitopes and CellVoyant have struggled to raise further follow-on rounds, so their valuations have declined to reflect the risk of them being unsuccessful in securing funding. Unfortunately, VyperCore’s board appointed administrators in the reporting period as it was unable to secure further funding having not achieved its commercial milestones set at the time of the Company’s initial investment. 

Conversely, 13 companies delivered a collective increase in value of £3.2 million. These valuation increases reflect businesses which have successfully concluded further funding rounds, grown revenues or met certain important milestones. Notable strong performers in the portfolio include RemoFirst, Ufonia and Manual. These top contributors demonstrate that there are opportunities available for companies to scale even during periods of heightened headwinds in the economy. 

Octopus Ventures believes that some of the companies which have seen decreased valuations in the six-month period have the potential to overcome the issues they face and get their growth plans back on track. Octopus Ventures will continue to work closely with these companies to help them realise their ambitions. In some cases, if a company is achieving its performance milestones, the support offered could include further funding, to ensure a business has the capital it needs to execute on its strategy. At this early stage of the Company’s life cycle, it is to be anticipated that failures will likely precede valuation growth, which takes longer as the portfolio companies must achieve their agreed milestones and mature. 

In the six months to 30 June 2025, the Company received deferred proceeds from the sale of Cobee (to Pluxee in 2024).

The gain on Future Generations VCT’s uninvested cash reserves was £0.5 million in the six-months to 30 June 2025 (31 December 2024: gain of £1.4 million), driven by returns on money market funds. The Board’s objective for these investments is to generate sufficient returns through the cycle to cover costs, at limited risk to capital.

VCT-qualifying status
Shoosmiths LLP provides both the Board and Octopus with advice concerning ongoing compliance with HMRC rules and regulations concerning VCTs and has advised that Future Generations VCT continues to be compliant with the conditions set by HMRC for maintaining approval as a VCT. 

As at 30 June 2025, 100% of the portfolio (as measured by HMRC rules) was invested in VCT-qualifying investments, above the 80% current VCT-qualifying threshold. This threshold is continually monitored both internally by the Manager and by external advisers and proactive measures are taken to optimise it. 

Outlook
The modest decline in NAV over the six months follows a period of progress seen in the latter half of 2024. While short-term fluctuations are expected in early-stage investing, we continue to see encouraging signs of development across the portfolio. The team have continued to deploy funds, investing £4.5 million, which includes follow-on investments into the portfolio companies which we believe are exciting opportunities for the Company and are showing potential. 

This performance is set against an extremely volatile market backdrop which is looking likely to continue. We will continue to support our companies through our in-house People and Talent team and our panel of expert consultants, helping them to navigate growth challenges and build strong foundations. We know that building talented teams drives innovation, enhances productivity and contributes to a positive work culture, all of which lead to a company’s overall success. It will also be a focus of the team to take advantage of any exit opportunities as they arise and look to drive liquidity events where possible, with the aim of regularly returning capital to the Company to deliver sustainable growth and deliver on its objectives.

We are excited to have the opportunity to continue to scale the Company, support its ambition to make the world a better place for future generations, and hope to deliver attractive returns to shareholders.

Directors’ responsibilities statement

The Directors confirm that to the best of their knowledge:

the half-yearly financial statements have been prepared in accordance with ‘Financial Reporting Standard 104: Interim Financial Reporting’ issued by the Financial Reporting Council;

the half-yearly financial statements give a true and fair view of the assets, liabilities, financial position and profit or loss of the Company; and

the half-yearly report includes a fair review of the information required by the Financial Conduct Authority Disclosure Guidance and Transparency Rules, being:

we have disclosed an indication of the important events that have occurred during the first six months of the financial year and their impact on the condensed set of financial statements;

we have disclosed a description of the principal risks and uncertainties for the remaining six months of the period; and

we have disclosed a description of related party transactions that have taken place in the first six months of the current financial year, that may have materially affected the financial position or performance of the Company during that period and any changes in the related party transactions described in the last annual report that could do so.

By order of the Board

Helen Sinclair
Chair
22 September 2025

Income statement

Unaudited
 Unaudited 
 Audited 
6 months to 30 June 2025
 12 months to 30 June 2024 
 18 months to 31 December 2024 
Revenue
Capital
Total
 Revenue 
 Capital 
 Total 
 Revenue 
 Capital 
 Total 
£’000
£’000
£’000
 £’000 
 £’000 
 £’000 
 £’000 
 £’000 
 £’000 
 (Loss)/gain on disposal of fixed asset investments 
 - 
(17) 
(17) 
 - 
 - 
 - 
 - 
 1,382 
 1,382 
 Gain/(loss) on valuation of fixed asset investments 
 - 
93 
93 
 - 
 (3,495) 
 (3,495) 
 - 
 (3,564) 
 (3,564) 
 Investment management fees 
 (125) 
(375) 
(500) 
 (238) 
 (712) 
 (950) 
 (345) 
 (1,035) 
 (1,380) 
 Investment income 
458 
 - 
458 
 973 
 - 
 973 
 1,427 
 - 
 1,427 
 Other expenses 
 (295) 
 - 
 (295) 
 (535) 
 - 
 (535) 
 (759) 
 - 
 (759) 
Profit/(loss) before tax
38 
(299) 
(261) 
 200 
 (4,207) 
 (4,007) 
 323 
 (3,217) 
 (2,894) 
 Tax 
 - 
- 
- 
 - 
 - 
 - 
 - 
 - 
 - 
Profit/(loss) after tax
38 
(299) 
(261) 
 200 
 (4,207) 
 (4,007) 
 323 
 (3,217) 
 (2,894) 
Earnings per share – basic and diluted
0.1p
(0.6)p
(0.5)p
 0.4p 
 (8.4)p 
 (8.0)p 
 0.6p 
 (6.3)p 
 (5.7)p 

The ‘Total’ column of this statement is the profit and loss account of Future Generations VCT; the supplementary revenue return and capital return columns have been prepared under guidance published by the Association of Investment Companies.

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

Future Generations VCT has only one class of business and derives its income from investments made in shares and securities, and from bank and money market funds. Future Generations VCT has no other comprehensive income for the period.

The accompanying notes form an integral part of the financial statements.

Balance sheet

Unaudited
 Unaudited 
 Audited 
As at 30 June 2025
 As at 30 June 2024 
 As at 31 December 2024 
£’000 
£’000 
 £’000 
 £’000 
 £’000 
 £’000 
Fixed asset investments
31,319 
 28,566 
 26,769 
Current assets:
 Applications cash1
- 
 153 
 100 
 Debtors 
 609 
 212 
 1,166 
 Cash at bank 
 101 
 192 
 112 
 Money market funds 
20,686 
 17,265 
 19,972 
21,396 
 17,822 
 21,350 
Creditors: amounts falling due within one year
(102)
 (256) 
 (196) 
Net current assets
21,294 
 17,566 
 21,154 
Net assets
52,613 
 46,132 
 47,923 
 Share capital 
60 
 53 
 54 
 Share premium 
4,945 
 51,177 
 51,854 
 Special distributable reserve 
51,854 
 - 
 - 
 Capital reserve realised 
(720)
 (1,352) 
 (328) 
 Capital reserve unrealised 
(3,433)
 (3,492) 
 (3,526) 
 Revenue reserve 
(93) 
 (254) 
 (131) 
Total equity shareholders’ funds
52,613 
 46,132 
 47,923 
Net asset value per share
88.4p
 86.8p 
 88.8p 

1. Cash received from investors but not yet allotted.

The accompanying notes form an integral part of the financial statements.

The statements were approved by the Directors and authorised for issue on 22 September 2025 and are signed on their behalf by:

Helen Sinclair
Chair
Company Number: 13750143

Statement of changes in equity

Share capital 
£’000
Share premium £’000
Special distributable reserve1
£’000
Capital reserve realised1
£’000 
Capital reserve unrealised1
£’000 
Revenue
Reserve1
£’000 
Total 
£’000 
As at 1 January 2025
54 
51,854 
 - 
(328) 
(3,526)
(131) 
47,923 
Comprehensive income for the period:
 Management fees allocated as capital expenditure 
 - 
 - 
 - 
 (375) 
 - 
 - 
 (375) 
 Net loss on disposal of fixed asset investments 
 - 
 - 
 - 
 (17) 
 - 
 - 
 (17) 
 Net gain on fair value of fixed asset investments 
 - 
 - 
 - 
 - 
 93 
 - 
 93 
 Profit after tax 
 - 
 - 
 - 
 - 
 - 
 38 
 38 
Total comprehensive income for the period 
-
- 
- 
(392)
93 
38 
(261)
Contributions by and distributions to owners:
 Shares issued 
 6 
 4,963 
 - 
 - 
 - 
 - 
 4,969 
 Share issue costs 
 - 
 (18) 
 - 
 - 
 - 
 - 
 (18) 
Total contributions by and distributions to owners
6
4,945 
- 
- 
- 
- 
4,951 
Other movements
 Share premium cancellation 
 - 
 (51,854) 
 51,854 
 - 
 - 
 - 
 - 
Total other movements
-
(51,854)
51,854 
- 
- 
- 
- 
Balance as at 30 June 2025
 60 
 4,945 
 51,854 
 (720) 
 (3,433) 
 (93) 
 52,613 

1. Reserves are available for distribution.

 The accompanying notes form an integral part of the financial statements.

Share capital 
£’000
Share premium 
£’000 
Special distributable reserve1
£’000 
Capital reserve realised1
£’000 
Capital reserve unrealised1
£’000 
Revenue 
reserve1
£’000 
Total 
£’000 
As at 1 July 2023
48
46,461 
- 
(640)
3 
(454)
45,418 
Comprehensive income for the period:
 Management fees allocated as capital expenditure 
 - 
 - 
 - 
 (712) 
 - 
 - 
 (712) 
 Net loss on fair value of fixed asset investments 
 - 
 - 
 - 
 - 
 (3,495) 
 - 
 (3,495) 
 Profit after tax 
 - 
 - 
 - 
 - 
 - 
 200 
 200 
Total comprehensive income for the period
-
- 
- 
(712)
(3,495)
200 
(4,007)
Contributions by and distributions to owners:
 Shares issued 
 5 
 4,814 
- 
- 
- 
- 
 4,819 
 Share issue costs 
 - 
 (98) 
- 
- 
- 
- 
 (98) 
Total contributions by and distributions to owners
5
4,716 
- 
- 
- 
- 
4,721 
Balance as at 30 June 2024
53
51,177 
- 
(1,352)
(3,492)
(254)
46,132 

1. Reserves are available for distribution.

The accompanying notes form an integral part of the financial statements.

Share capital 
£’000
Share premium £’000 
Special distributable reserve1
£’000
Capital reserve realised1
£’000 
Capital reserve unrealised1
£’000 
Revenue 
reserve1
£’000 
Total 
£’000 
As at 1 July 2023
48
46,461 
- 
(640)
3 
(454)
45,418 
Comprehensive income for the period:
 Management fees allocated as capital expenditure 
 - 
 - 
 - 
 (1,035) 
 - 
 - 
 (1,035) 
 Current year gain on disposal of fixed asset investments 
 - 
 - 
 - 
 1,382 
 - 
 - 
 1,382 
 Net loss on fair value of fixed asset investments 
 - 
 - 
 - 
 - 
 (3,564) 
 - 
 (3,564) 
 Gain after tax 
 - 
 - 
 - 
 - 
 - 
 323 
 323 
Total comprehensive loss for the period
-
- 
- 
347 
(3,564)
323 
(2,894)
Contributions by and distributions to owners:
 Shares issued 
 6 
 5,506 
 - 
 - 
 - 
 - 
 5,512 
 Share issue costs 
-
 (113) 
 - 
 - 
 - 
 - 
 (113) 
Total contributions by and distributions to owners
6
5,393 
- 
- 
- 
- 
 5,399 
Other movements:
 Prior year fixed asset loss unrealised 
 - 
 - 
 - 
 (35) 
 35 
 - 
 - 
Total other movements
-
- 
- 
(35)
35 
- 
- 



Balance as at 31 December 2024
54
51,854 
- 
(328)
(3,526)
(131)
47,923 

1. Reserves are available for distribution.

The accompanying notes form an integral part of the financial statements.

  

Cash flow statement

Unaudited 
6 months to 
30 June 2025
 Unaudited 
12 months to 
30 June 2024 
 Audited 
18 months to 
31 December 2024 
£’000 
 £’000 
 £’000 
Cash flows from operating activities
 Loss before tax 
(261) 
 (4,007) 
 (2,894) 
 Gain/(loss) on valuation of fixed asset investments 
(93)
 3,495 
 3,564 
 (Loss)/gain on disposal of fixed assets 
17 
 - 
 (1,382) 
 (Increase)/decrease in debtors 
(50)
 167 
 173 
 Increase/(decrease) in creditors 
6 
 (45) 
 (52) 
Outflow from operating activities
(381)
 (390) 
 (591) 
Cash flows from investing activities
 Purchase of fixed asset investments 
(4,457)
 (7,166) 
 (8,162) 
 Sale of fixed asset investments 
590 
 - 
 3,146 
Outflow from investing activities
(3,867)
 (7,166) 
 (5,016) 
Cash flows from financing activities
 Movement in applications account 
(100)
 (217) 
 (270) 
 Proceeds from share issues 
4,969 
 4,819 
 5,512 
 Share issue costs 
(18)
 (98) 
 (113) 
Inflow from financing activities
4,851 
 4,504 
 5,129 
Decrease in cash and cash equivalents
603 
 (3,052) 
 (478) 
 Opening cash and cash equivalents 
20,184 
 20,662 
 20,662 
Closing cash and cash equivalents
20,787 
 17,610 
 20,184 
Cash and cash equivalents comprise 
 Money Market Funds 
20,686 
 17,265 
 19,972 
 Cash at Bank 
101 
 192 
 112 
 Applications cash 
- 
 153 
 100 
Closing cash and cash equivalents
20,787 
 17,610 
 20,184 

The accompanying notes form an integral part of the financial statements. 

Condensed notes to the financial statements

1. Basis of preparation
The unaudited results which cover the six months to 30 June 2025 have been prepared in accordance with the Financial Reporting Council’s (FRC) Financial Reporting Standard 104 Interim Financial Reporting (January 2022) and the Statement of Recommended Practice (SORP) for Investment Companies re-issued by the Association of Investment Companies in July 2022.

The Directors consider it appropriate to adopt the going concern basis of accounting. The Directors have not identified any material uncertainties to the Company’s ability to continue to adopt the going concern basis over a period of at least twelve months from the date of approval of the financial statements. In reaching this conclusion, the Directors have taken into account the potential impact on the economy including inflation and the recession.

The principal accounting policies have remained unchanged from those set out in the Company’s 2024 Annual Report and Accounts.

2. Publication of non-statutory accounts
The unaudited financial report for the six months ended 30 June 2025 does not constitute Statutory Accounts within the meaning of s.415 of the Companies Act 2006 and has not been delivered to the Registrar of Companies. The comparative figures for the period ended 31 December 2024 have been extracted from the audited financial statements for that period, which have been delivered to the Registrar of Companies. The independent auditor’s report on those financial statements, in accordance with Chapter 3, Part 16 of the Companies Act 2006, was unqualified. This financial report has not been reviewed by the Company’s auditor.

3. Earnings per share
The loss per share is based on 56,631,830 Ordinary shares (30 June 2024: 50,107,452, 31 December 2024: 51,727,417) being the weighted average number of shares in issue during the period. There are no potentially dilutive capital instruments in issue and so no diluted returns per share figures are relevant. The basic and diluted earnings per share are therefore identical.

4. Net asset value per share

30 June 2025
 30 June 2024 
 31 December 2024 
 Net assets (£’000) 
52,613
 46,132 
 47,923 
 Shares in issue 
59,508,123
 53,160,670 
 53,941,104 
 Net asset value per share (p) 
88.4
 86.8 
 88.8 

5. Allotments
During the six months to 30 June 2025, 5,567,019 shares were issued at a weighted average price of 91.6p per share (30 June 2024: 5,022,333 shares at a weighted average price of 95.2p per share, 31 December 2024: 5,802,767 shares at a weighted average price of 94.4p per share).

6. Transactions with the Manager and Portfolio Manager
Future Generations VCT is classified as a full-scope Alternative Investment Fund (AIF) under the Alternative Investment Fund Management Directive (AIFMD). Future Generations VCT has appointed Octopus AIF Management Limited to provide the services of an Alternative Investment Fund Manager (AIFM) of a full scope AIF. In accordance with its power to do so under AIFMD, Octopus AIF Management Limited has delegated portfolio management to Octopus Investments Limited, whilst retaining the obligations of a risk manager.

Future Generations VCT paid Octopus AIF Management Limited £500,000 in the period as a management fee (30 June 2024: £950,000, 31 December 2024: £1,380,000). The annual management charge (AMC) is based on 2% of Future Generations VCT’s NAV. The AMC is payable quarterly in advance and calculated using the latest published NAV of Future Generations VCT and the number of shares in issue at each quarter end. Once the quarter has ended, an adjustment will be made if the NAV at the end of the current quarter is calculated and which differs from the NAV as at the end of the previous quarter.

Octopus also provides Non-Investment Services to Future Generations VCT, payable quarterly in advance. The fee is 0.3% of Future Generations VCT’s NAV, calculated at quarterly intervals. The Non-Investment Services Agreement (NISA) fee is calculated using the latest published NAV of Future Generations VCT and the number of shares in issue at each quarter end. As with the AMC, an adjustment will be made once the quarter has ended if the NAV at the end of the current quarter is calculated and which differs from the NAV as at the end of the previous quarter. During the period £75,000 was paid to Octopus for Non-Investment Services (30 June 2024: £143,000, 31 December 2024: £213,000).

In addition, Octopus is entitled to performance-related incentive fees, subject to Future Generations VCT’s total return at year end exceeding the total return at the previous year end when an incentive fee was paid or 97p if the first incentive fee has not yet been paid (the ‘Excess’), equal to 20% of the Excess. No performance fee will be paid prior to the financial period ending 30 June 2025, dividends (paid or declared) being equal to or greater than 10p per Ordinary share and the total return exceeding 120p.

The cap relating to Future Generations VCT’s total expense ratio, that is the regular, recurring costs of Future Generations VCT expressed as a percentage of its NAV, above which Octopus have agreed to pay, is 3.0%, and is calculated in accordance with the AIC Guidelines.

7. Related party transactions
Several members of the Octopus investment team hold non-executive directorships as part of their monitoring roles in Future Generations VCT’s portfolio companies, but they have no controlling interests in those companies.

No dividends have been paid to the Directors of Future Generations VCT in this period (2023:£nil).

8. Voting rights and equity management
The following table shows the percentage voting rights held by Future Generations VCT in each of the top ten investments, on a fully diluted basis.
                                                        







Investments
30 June 2025
% voting rights held by 
Future Generations VCT
 CoMind Technologies Ltd 
 1.4% 
 HelloSelf Limited 
 4.1% 
 Menwell Limited (t/a Manual) 
 0.4% 
 RemoFirst, Inc. 
 1.4% 
 Intrinsic Semiconductor Technologies Ltd 
 5.4% 
 Neat SAS 
 1.8% 
 Phlux Technology Ltd 
 5.6% 
 Apheris AI GmbH 
 3.4% 
 Ufonia Ltd 
 1.9% 
 TYTN Ltd (t/a Double Word) 
 3.0% 

9. Post balance sheet events
The following events occurred between the balance sheet date and the signing of this financial report:

One follow-on investment completed totalling £0.3 million.

A special dividend of 5.6p per share was declared on 22 August 2025 and it is to be paid on 24 September 2025.

10. Half-Yearly Report
The unaudited half-yearly report for the six months ended 30 June 2025 will shortly be available to view at https://octopusinvestments.com/our-products/venture-capital-trusts/octopus-future-generations-vct/

A copy of the half-yearly report will be submitted to the National Storage Mechanism and will shortly be available for inspection at: https://data.fca.org.uk/#/nsm/nationalstoragemechanism

For further information please contact:

Rachel Peat  
Octopus Company Secretarial Services Limited
Tel: +44 (0)80 0316 2067

LEI: 213800AL71Z7N2O58N66