REG-Annual report and financial statements for the period ended 31 December 2024
29/04/2025 07:00
For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250429:nGNE2mTsJr&default-theme=true
OCTOPUS FUTURE GENERATIONS VCT PLC
Annual report and financial statements for the period ended 31 December 2024
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’),
which has delegated investment management to Octopus Investments Limited
(‘Octopus’ or ‘Portfolio Manager’) via its investment team Octopus
Ventures.
Chair’s statement
I am pleased to present the financial report and audited accounts for the
Company for the 18 months to 31 December 2024.
I would like to welcome all of our new shareholders to the Company. Future
Generations VCT invests in exciting early-stage companies which aspire to
address current environmental and societal issues. In 2023, the Board reviewed
and approved a proposal to move the Company’s year end from 30 June to 31
December. As a result, shareholders are receiving this annual report covering
an extended 18-month period and will thereafter receive a half-year report as
at June, and annual report and audited financial statements for the years
ending December thereafter.
The NAV per share at 31 December 2024 was 88.8p, which represents a net
decrease of 5.5p per share from 30 June 2023. In the 18 months to 31 December
2024, we utilised £10.1 million of our cash resources, including £8.2
million which was invested into 16 new and follow‑on opportunities. The cash
balance of £20.1 million (excluding cash awaiting allotment) as at 31
December 2024 represents 42% of net assets at that date. The loss made in the
period to 31 December 2024 was £2.9 million. This decline is reflective of
some company specific performance challenges and the difficult funding
conditions in the early-stage space which have led to downward movements in
some valuations. Given the Company is still a relatively young VCT, many of
its portfolio companies are at the beginning of their journey and will likely
require further funding to succeed, so it is to be expected to see under
performance or even failures before any growth in value of companies which are
ultimately successful. The decline is also accentuated by the running costs of
the Company exceeding returns from investments, which is to be anticipated at
this stage.
We look forward to deploying further capital into attractive new investment
opportunities, and we ultimately intend the profile of the Company to comprise
80% to 90% in VCT qualifying investments and 10% to 20% in permitted non-VCT
qualifying investments or cash.
Fundraise
We raised £3.6 million in the fundraise which closed on 31 October 2024. The
2023/2024 VCT fundraise market was highly competitive, ranking as the third
highest on record with £882 million raised. In this environment, newer VCTs
such as ours faced challenges in raising funds, as we compete with more
established funds.
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 for the 2024/2025 tax year having successfully
raised £5.0 million.
As investors will be aware, the intention is to invest in businesses which
meet one of three key themes, which we hope will demonstrate excellent
investment prospects as well as having the potential to transform the world we
live in for the better.
VCT status
In November 2023, a ten-year extension was announced to the ‘sunset
clause’ (a retirement date for the VCT scheme), meaning that VCT tax reliefs
will be available until 5 April 2035. This extension passed through Parliament
in February 2024 and on 3 September 2024 His Majesty’s Treasury brought the
extension into effect through The Finance Act 2024.
Board of Directors
As announced in the half-yearly report to 31 December 2023, Emma Davies
announced her retirement from the Board of Directors with effect from 31 March
2024 and Ajay Chowdhury was appointed with effect from 1 March 2024 and was
elected by shareholders at the Annual General Meeting (AGM) held in December.
We are already benefiting from his extensive experience in the early-stage
venture ecosystem.
All the other Directors have indicated their willingness to remain on the
Board and will be seeking re-election at the AGM.
Portfolio Manager
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. This review (which benefits from
independent external advice) is ongoing, and when concluded, the results will
be shared with the Board of the Company and via any public announcements that
the Board of Octopus Titan VCT PLC may make.
During this period, the investment team has prioritised much of its resource
towards those portfolio companies which they believe have the potential to
drive the greatest returns. This has affected your Company’s investment rate
into new opportunities.
In the meantime, there have been a significant number of leavers from the
broader Octopus Ventures team which invests capital from both the Company and
other funds under management. Simon King, Octopus’ Lead Fund Manager for
Future Generations, has unfortunately resigned to pursue a new opportunity
after 13 years with Octopus. He will continue to take an active role as Lead
Fund Manager of the Company until late summer. I would like to take this
opportunity to thank Simon for his contribution and to wish him well for the
future. We will provide you with updates in due course regarding his potential
successor.
Erin Platts was appointed as new Chief Executive Officer (CEO) of Octopus
Ventures in January 2025. Previously, she was CEO of HSBC Innovation Banking
UK, formerly Silicon Valley Bank UK and worked at the heart of the UK and
European tech ecosystem. Erin will be looking to scale the Octopus Ventures
business, including ensuring there is appropriate investment and portfolio
management resource to support the ongoing success of the Company.
AGM
The AGM will take place on 4 June 2025 from 10am and will be held at 33
Holborn, London EC1N 2HT. Full details of the business to be conducted at the
AGM are given in the Notice of the AGM. We will have a Portfolio Manager’s
update at the AGM, supported by a filmed update from the Portfolio Manager
which will be available on the website at
www.octopusinvestments.com/futuregenvct/.
Shareholders’ views are important, and the Board encourages shareholders to
vote on the resolutions within the Notice of the AGM using the proxy form, or
electronically at www.investorcentre.co.uk/eproxy. The Board has carefully
considered the business to be approved at the AGM and recommends shareholders
to vote in favour of all the resolutions being proposed, as the Board will be
doing.
Outlook
In the 18-month reporting period, the sharpest decline in NAV was seen in the
first half of 2024 with a 7.1% drop. This was reflective of some of the
portfolio companies struggling to scale, secure customer wins and successfully
fundraise, meaning they were not achieving the milestones set at the time the
Company invested. With companies not able to prove their business models, we
will unfortunately see some fail. The Board is mindful that such performance
is not an unusual outcome for a VCT at this stage of its investment life
cycle, with any failures likely preceding valuation growth which is usually
expected once the portfolio matures. The portfolio has been operating in a
volatile macro environment since the Company launched and global geo-political
and economic pressures continue to hamper some of their growth plans. However,
we are satisfied to see a stabilisation in the NAV, with the portfolio showing
a positive return in the six months from June to December 2024.
The Mergers and Acquisitions (M&A) environment has started to thaw with
startups experiencing the highest annual M&A transaction levels since 2019¹.
We are delighted to have been able to realise the Company’s first full and
partial exits in the reporting period. These exits within just three years of
launch we hope provide validation of Future Generations VCT’s investment
strategy, demonstrating the ability of Octopus to identify and back
high-potential companies while delivering early returns to the VCT and brings
confidence that it is well positioned to generate long-term, sustainable value
for shareholders.
The long-term target is to pay an annual dividend of 5% of the NAV. However,
given the expected holding period of target portfolio companies and
restrictions imposed on VCTs, it is very unlikely that the Company will be
able to pay dividends before 2026. During this time, any growth in value will
increase the net asset value of the Company. Dividends are likely to be
generated from successful exits, so the Company is unlikely to pay significant
dividends until more portfolio companies have time to mature and realisations
are secured.
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 2025 brings for your Company.
Helen Sinclair
Chair
(1) https://carta.com/uk/en/data/state-of-private-markets-q4-2024/#key-trends
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
The NAV per share at 31 December 2024 was 88.8p, which represents a decrease
in NAV of 5.5p per share versus a NAV of 94.3p per share as at 30 June 2023.
The Company invests in three key areas that we believe demonstrate excellent
investment prospects and have potential to transform our world for the better.
Below is a breakdown of the 36 investments held as at 31 December 2024,
showing the proportion and value of the portfolio in each investment theme:
Proportion by number of portfolio companies in each theme
Revitalising healthcare: 53%
Empowering people: 28%
Building a sustainable planet: 19%
Value of the portfolio in each theme
Revitalising healthcare: £13.3m
Empowering people: £8.0m
Building a sustainable planet: £5.5m
The decline in valuation over the 18-month period has been in large part
driven by the downward valuation movements across 11 companies which saw a
collective decrease in valuation of £7.9 million. The businesses which
contributed most significantly to this were Tympa Health, Pear Bio and Elo
Health. Tympa Health over‑invested in growth and had to make significant
cost cuts and changes to senior management whilst running a fundraise process.
It has successfully concluded a further investment round, but at a reduced
valuation and the Company’s shareholding now sits behind a large preference
stack, meaning that other investors get paid back first before the Company
would see any returns. Pear Bio also had to significantly reduce its cash burn
but has limited runway and needs to further fundraise, so the valuation has
been reduced to reflect the risk to its future. Elo Health struggled to find a
market fit and execute on the investment thesis, so to extend its cash runway
it had to raise an investment round at a reduced valuation. These three
valuation movements account for 86% of the total decline in the reporting
period. The total investment cost of these three companies was £7 million.
Octopus Ventures believes that some of the companies which have seen decreased
valuations in the 18 months have the potential to overcome the issues they
face and get their growth plans back on track. We will continue to work with
them 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.
Conversely, 12 companies saw an increase in unrealised valuation in the
period, delivering a collective increase in valuation of £4.4 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 Apheris and Manual, both of
which have shown impressive capital efficient growth. These strong performers
demonstrate that there are opportunities available for companies to scale.
The interest on Future Generation’s uninvested cash reserves was £1.4
million in the 18 months to 31 December 2024 (30 June 2023: gain of £0.4
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.
Disposals
In September 2024, as part of a Series A funding round, Octopus sold a portion
of the Company’s shares in Neat. Then in November, Pluxee (a global leader
in employee benefits) acquired Cobee. The two exits combined offer the Company
a return of 1.5x, including contingent deferred proceeds.
Overview of investments
The Company completed 16 investments in the 18 months to 31 December 2024
(comprising a total of £8.2 million) and 4 further investments after the
reporting date totalling £2.4 million. More information on some of these
businesses can be found below:
A selection of our completed investments
Revitalising Healthcare
Pencil Biosciences is a gene editing technology platform.
Awell Health automates routine clinical tasks, synchronising data between
systems and driving seamless coordination between care teams and patients.
Cellvoyant is an artificial intelligence (AI) first biotechnology company
creating novel stem cell-based therapies for chronic diseases.
Manual provides easy access to advice and medical support for diagnosis,
custom treatment plans and holistic care to induce long-term behaviour change.
Nanosyrinx has developed a targeted biologic therapeutic delivery platform (a
nano-syringe).
Empowering people
Correcto is an AI writing and grammar tool for the Spanish language.
Remofirst is an Employer of Record (EOR) and compliance platform that allows
companies to hire and pay employees globally.
Swiipr has developed a digital payments platform specifically for the airline
industry.
Building a sustainable planet
Metris Energy has created a platform that allows landlords of multi-unit
buildings to monetise modular renewable energy projects through a single
billing platform to charge tenants.
Drift is designing sailing vessels and routing algorithms required to capture
deep water wind energy and convert it into onboard hydrogen gas for
transportation back to shore using a fully integrated desalination,
electrolysis and storage system.
Q&A
Q. How do you value a portfolio company?
A. Future Generations VCT’s unquoted portfolio companies are valued in
accordance with UK Generally Accepted Accounting Practice (UK GAAP) accounting
standards and the International Private Equity and Venture Capital (IPEV)
valuation guidelines.
This means we value the portfolio at fair value, with all companies being
valued at least twice yearly, for our half-year (June) and annual accounts
(December).
Q. What do you mean by ‘fair value’?
A. When we say fair value, we mean the price we expect people would be willing
to buy or sell an asset for, assuming they understand the asset and market
conditions, are knowledgeable parties, act independently, and that the
transaction is carried out under the normal course of business (i.e. is not
rushed and proper marketing has taken place).
Q. Who values the portfolio, what is the process and what oversight is there
to make sure this is right?
A. The Octopus Investment Managers involved with the portfolio companies,
either in the capacity of a Director or observer on the board, or the primary
contact, will provide commentary including, but not limited to, recent
developments with the portfolio and the wider market in which they operate,
progress towards milestones, management team changes, board dynamics and
technical progress. This is combined with the latest available financial
accounts and budget provided by the portfolio company which will be summarised
into Key Performance Indicators (KPIs).
From this information, a member of the separate Valuations team drafts the
initial proposal. This will highlight any material changes, key asset level
assumptions used and KPIs, and discuss portfolio company performance as well
as the rationale underpinning the selected valuation methodology. A peer
review exercise then takes place, where the proposals are challenged and
reviewed. The peer reviewer is an investment professional from the Fund
Manager (typically the Lead Fund Manager) who has not been involved in
preparing the valuations.
This will then be reviewed and approved by the Octopus Valuations Committee
which comprises individuals with appropriate expertise and experience in
valuations. Those individuals are not involved in the investment decisions and
as such can independently review and challenge. The Future Generations VCT
Board will then meet to discuss them in detail, revise as necessary and
ultimately approve them.
There are also more valuation checkpoints throughout the year in advance of
allotments and other share-related transactions, which means that the
portfolio’s valuation is reviewed to ensure NAV is fairly represented prior
to these corporate actions.
As part of our continuous improvement processes, we periodically review the
actual realised value of our investments compared to their last holding value
and refine our valuation methodologies accordingly. This, combined with the
high proportion of valuations that are based on the terms of further funding
rounds led by new external investors, firmly underpins the robustness of the
valuation process.
Valuations
The table illustrates the split of valuation methodology (shown as a
percentage of portfolio value and number of companies). ‘External price’
includes valuations based on funding rounds that typically completed in the
last 18 months to the period end or shortly after the period end, and exits of
companies where terms have been agreed with an acquirer. ‘Multiples’ is
predominantly used for valuations that are based on a multiple of revenues for
portfolio companies. Where there is uncertainty around the potential outcomes
available to a company, a probability weighted ‘scenario analysis’ is
considered.
Valuation methodology By value By number of companies
Multiples 18% 3
External price 44% 12
Scenario analysis 14% 7
Milestone analysis 24% 10
Write-off — 4
Portfolio case studies
CoMind
CoMind is building revolutionary brain sensing technologies.
Their mission is to redefine the way the brain is measured and treated at
every stage of care. One of the first applications of CoMind’s core
technology is in measuring intracranial brain pressure using an adhesive
sensor and advanced signal processing. This will be a step change from the
current standard of having to drill through the skull to measure intracranial
pressure in patients impacted by traumatic brain injury, stroke, and/or other
neurocritical conditions.
While other companies are trying to create noninvasive technology in this
sector, we believe CoMind has a distinct competitive advantage. CoMind has
developed an advanced optical sensing technique that has opened up new
possibilities in monitoring brain health. Unlike existing methods, CoMind’s
technology is more similar to the “LiDAR” (Light Detection and Ranging)
systems used in self-driving cars. This allows CoMind’s devices to give a
unique, detailed view of brain health, helping doctors deliver more
personalised and targeted treatments to patients at every stage of care.
>250 subjects were measured in 2024.
Several devices are currently being used in hospitals for clinical trials.
Swiipr
Passengers get quick, easy-to-use compensation, airlines save on processing
costs while improving service.
When flights are disrupted, compensating passengers is a hassle for both
airlines and travellers. Swiipr’s platform simplifies this by automating
payment verification and processing through a system designed specifically for
airlines. The company provides passengers with virtual and physical prepaid
cards, offering instant, flexible spending compared to outdated paper vouchers
or slow payments. Swiipr also supports airlines with solutions for crew,
operational, and crisis payments, enabling fast, direct payouts to staff.
Passengers get quick, easy-to-use compensation, airlines save on processing
costs while improving service, and retailers benefit from instant payment
settlement. Swiipr also integrates with airline Customer Relationship
Management systems, making it an essential partner for the industry.
Octopus Ventures is excited about Swiipr’s travel-focused digital payments
solution and its potential to revolutionise how airlines handle pay-outs.
Swiipr’s innovative product aims to transform compensation payments and
speed up management processes for airlines and beyond. By enabling digital
payments, Swiipr seeks to boost efficiency, enhance customer experiences, and
provide automated processes that are transparent and compliant with
regulations.
With over 500 million passengers affected by travel disruptions each year,
simplifying the path to compensation has the potential to significantly
improve customer satisfaction, build trust, and foster loyalty in the
industry.
Only 1–2% of disrupted passengers currently receive compensation.
Billions of dollars lost by passengers in outdated, inefficient pay-out
processes every year.
Pay360 Payment Award winner: Best B2B Programme and Best Customer Facing
Experience at the 2024 awards.
DRIFT
DRIFT aims to drive the clean energy transition worldwide with
high-performance sailing vessels that harness deep ocean wind to produce green
hydrogen at sea and deliver it globally.
It does this using a unique, AI-enabled vessel routing system that enables the
vessels to find and stay in optimum weather conditions. The growing demand for
clean hydrogen to accelerate the decarbonisation of sectors such as heavy
industry, transportation and manufacturing is sparking innovation in the
sector. DRIFT’s solution is mobile, resilient and works outside of existing
infrastructure. The company is developing renewable energy partnerships that
will benefit coastal and island communities around the world.
DRIFT is leading the way in developing a truly innovative new class of mobile
renewable energy, building the world’s first net-positive ships and
unlocking a new era of clean fuel generation capable of covering 70% of the
globe. The company’s technology uniquely unlocks the planet’s greatest
resource, overcoming supply challenges and enabling a fair and equitable clean
energy transition.
€10 trillion: Goldman Sachs estimates that the green hydrogen market could
reach €10 trillion by 2050.
24%: Bank of America predicts that clean hydrogen could provide 24% of global
energy needs by 2050.
COP 28 winner: DRIFT is a COP 28 award-winning DeepTech company and winner of
the Monaco Prize for Innovation in Renewable Hydrogen and Transportation 2024.
Top 10 investments
Here, we set out the cost and valuation of the top 10 holdings, which account
for over 58% of the value of the portfolio.
Portfolio company Investment cost Valuation at 31 December 2024 Investment Theme
1. HelloSelf Limited £2.6m £2.6m Revitalising healthcare
2. Remofirst, Inc £1.2m £1.7m Empowering people
3. Infinitopes Ltd £1.6m £1.6m Revitalising healthcare
4. Neat SAS £0.6m £1.5m Building a sustainable planet
5. TYTN Ltd (t/a TitanML) £0.5m £1.5m Building a sustainable planet
6. Apheris AI GmbH £1.5m £1.5m Empowering people
7. Menwell Limited (t/a Manual) £0.9m £1.5m Revitalising healthcare
8. Mr & Mrs Oliver Ltd (t/a Skin + Me) £1.0m £1.4m Revitalising healthcare
9. Intrinsic Semiconductor Technologies Ltd £0.9m £1.2m Empowering people
10. CoMind Technologies Ltd £0.8m £1.0m Revitalising healthcare
Top 10 investments in detail(1)
1
HelloSelf Limited
A digital, personalised psychological therapy and coaching platform.
www.helloself.com
Initial investment date: January 2023
Investment cost: £2.6m
(2023: £2.6m)
Valuation: £2.6m
(2023: £2.6m)
Last submitted accounts: 31 March 2024
Turnover: Not available (2) (2023: Not available (2))
Profit/(loss) before tax: Not available (2)
(2023: Not available (2))
Net assets: £(15.5)m
(2023: £(9.8)m)
Valuation methodology: Calibration
2
Remofirst, Inc.
Global payroll and compliance system for remote teams.
www.remofirst.com
Initial investment date: February 2024
Investment cost: £1.2m
(2023: n/a)
Valuation: £1.7m
(2023: n/a)
Last submitted accounts: Not available (2)
Turnover: Not available (2)
(2023: Not available (2))
Profit/(loss) before tax Not available (2)
(2023: Not available (2))
Net assets: Not available (2)
(2023: Not available (2))
Valuation methodology: Last Round
3
Infinitopes Ltd
Has built an antigen discovery platform to develop cancer vaccines that
provide better treatment outcomes.
www.infinitopes.com
Initial investment date: December 2022
Investment cost: £1.6m
(2023: £1.6m)
Valuation: £1.6m
(2023: £1.6m)
Last submitted accounts: 31 December 2023
Turnover: Not available (2)
(2023: Not available (2))
Profit/(loss) before tax Not available (2)
(2023: Not available (2))
Net assets: £9.3m
(2023: £8.1m)
Valuation methodology: Last Round
4
Neat SAS
An embedded insurance platform that gives merchants the ability to provide
insurance bundles to their customers at a competitive rate.
mobility.neat.eu
Initial investment date: November 2022
Investment cost: £0.6m
(2023: £0.8m)
Valuation: £1.5m
(2023: £0.8m)
Last submitted accounts: Not available (2)
Turnover: Not available (2)
(2023: Not available (2))
Profit/(loss) before tax: Not available (2)
(2023: Not available (2))
Net assets: Not available (2)
(2023: Not available (2))
Valuation methodology: Last round
5
TYTN Ltd (t/a TitanML)
An artificial intelligence company which is developing a one-stop-shop for
Natural Language Processing AI Optimisation, allowing enterprises to generate
value from their data.
www.titanml.co
Initial investment date: February 2023
Investment cost: £0.5m
(2023: £0.5m)
Valuation: £1.5m
(2023: £0.5m)
Last submitted accounts: 30 April 2024
Turnover: Not available (2)
(2023: Not available (2))
Profit/(loss) before tax: Not available (2)
(2023: Not available (2))
Net assets: £1.5m
(2023: £2.0m)
Valuation methodology: Last Round
6
Apheris AI GmbH
An end-to-end federated learning platform enabling data scientists to conduct
analysis over sensitive data without compromising the privacy or security of
the data subjects.
www.apheris.com
Initial investment date: November 2022
Investment cost: £1.5m
(2023: £1.2m)
Valuation: £1.5m
(2023: £1.2m)
Last submitted accounts: Not available (2)
Turnover: Not available (2)
(2023: Not available (2))
Profit/(loss) before tax: Not available (2)
(2023: Not available (2))
Net assets: Not available (2)
(2023: Not available (2))
Valuation methodology: Last round
7
Menwell Limited (t/a Manual)
Making high-quality healthcare more accessible and stigma-free
www.manual.co
Initial investment date: May 2024
Investment cost: £0.9m (2023: n/a)
Valuation: £1.5m
(2023: n/a)
Last submitted accounts: 31 December 2023
Turnover: £54.7m (2023: £22.4m)
Profit/(loss) before tax: £(7.9)m (2023: £(10.6)m)
Net assets: £11.8m (2023: £8.0m)
Valuation methodology: Last round
8
Mr & Mrs Oliver Ltd (t/a Skin + Me)
A direct to consumer, personalised skin care company.
www.skinandme.com
Initial investment date: December 2022
Investment cost: £1.0m
(2023: £1.0m)
Valuation: £1.4m
(2023: £1.3m)
Last submitted accounts: 31 August 2023
Turnover: £28.7m
(2023: £14.3m)
Profit/(loss) before tax: £1.8m
(2023: £(3.3)m)
Net assets: £12.8m
(2023: £(0.7)m)
Valuation methodology: Revenue Multiple
9
Intrinsic Semiconductor Technologies Ltd
Solid state memory technology that is simple to integrate and faster than
current alternatives like Flash.
www.intrinsicsemi.com
Initial investment date: December 2023
Investment cost: £0.9m
(2023: n/a)
Valuation: £1.2m
(2023: n/a)
Last submitted group accounts: 31 December 2023
Turnover: Not available (2) (2023: Not available (2))
Profit/(loss) before tax: Not available (2) (2023: Not available (2))
Consolidated net assets: £4.0m
(2023: £5.5m)
Valuation methodology: Scenario Analysis
10
CoMind Technologies Ltd
Development of non-invasive brain sensing technology for monitoring of medical
conditions.
comind.io
Initial investment date: November 2023
Investment cost: £0.8m
(2023: n/a)
Valuation: £1.0m
(2023: n/a)
Last submitted group accounts: 31 December 2023
Turnover: Not available (2) (2023: Not available (2))
Profit/(loss) before tax: Not available (2) (2023: Not available (2))
Net assets: £17.1m
(2023: £4.1m)
Valuation methodology: Milestone Analysis
1. These are numbers per latest public filings. More recent figures have not
yet been disclosed.
2. Information not publicly available.
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 2023 greenhouse gas emissions(1)
Signed up: 16
Introduced: 19
In progress: 1
(1) As of 31 December 2024, only 2023 carbon emissions data was available.
Outlook
Despite the declining NAV in the reporting period, we are reassured to see an
increase in the NAV per share of the fund in the last six months. This,
combined with the two profitable realisations in the period, is offering us
early proof points of the Company’s investment strategy to deliver
sustainable growth as it moves into its third year of deployment. With a more
diversified portfolio, in terms of both stage and sector, this also offers a
clearer path for the Company to enter a growth phase.
As is to be expected at this stage in the Company’s lifecycle, it has
started to make its first follow-on investments into portfolio companies which
are achieving their agreed milestones and successfully gaining new external
lead funders. The Company made two follow-on investments in the reporting
period and three after.
This strategy of reinvesting into existing portfolio companies aims to
increase the Company’s stake in portfolio companies that have achieved
market fit and are scaling successfully, supporting its overall growth plan.
Along with further financial support, Octopus’ resources are directed in the
most impactful way, both through Octopus-appointed non-executive Directors or
monitors on the boards and our in-house People and Talent team. This team
works directly with the portfolio company management teams, offering training
and recruitment support to ensure the best talent pool is being explored to
help drive success.
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.
Simon King
Partner and Lead Fund Manager for Future Generations VCT
Risks and risk management
The Board assesses the risks faced by Future Generations VCT, reviews the
mitigating controls and monitors the effectiveness of these controls.
Emerging and principal risks, and risk management
The Board is mindful of the ongoing risks and will continue to make sure that
appropriate safeguards are in place. The Board carries out a regular review of
the risk environment in which the Company operates.
Emerging risks
The Board has considered emerging risks. The Board seeks to mitigate risks by
setting policy, regularly reviewing performance and monitoring progress and
compliance. In the mitigation and management of these risks, the Board applies
the principles detailed in the Financial Reporting Council’s Guidance on
Risk Management, Internal Control and Related Financial and Business
Reporting.
The following are some of the potential emerging risks management and the
Board are currently monitoring:
* adverse changes in global macroeconomic environment;
* challenging market conditions for private company fundraising and exits;
* geo‑political instability; and
* climate change.
Detailed below are the principal risks of Future Generations VCT, and the
mitigating actions in relation to those risks.
Principal risks
Risk Mitigation Change
Investment performance:
The focus of Future Generations VCT investments is into early-stage, unquoted, small and medium‑sized VCT qualifying companies which, by their nature, entail a higher level of risk and shorter cash runway than investments in larger quoted companies. Octopus has significant experience of investing in early-stage unquoted companies, and appropriate due diligence is undertaken on every new investment. A member of the Increased exposures reflected in the previous period remain unchanged due to the difficult macro environment and challenging trading conditions for some portfolio companies continuing.
Octopus Ventures team is appointed to the board of a portfolio company using a risk-based approach, considering the size of the company within the Future Generations VCT
portfolio and the engagement levels of other investors. This arrangement, in conjunction with its Portfolio Talent team’s active involvement, allows Future Generations
VCT to play a prominent role in a portfolio company’s ongoing development and strategy.
Risk Mitigation Change
VCT qualifying status:
Future Generations VCT is required at all times to observe the conditions for the maintenance of approved VCT status. The loss of such approval could lead to Future Generations VCT and its investors losing access to the various tax benefits associated with VCT status and investment. Octopus tracks Future Generations VCT’s qualifying status throughout the period, and reviews this at key points, including at the point of investment and realisation. VCT status monitoring by independent advisers continues to reduce the risk of an issue causing a loss of VCT status.
This status is reported to the Board at each Board meeting. The Future Generations VCT Board has also engaged external independent advisers to undertake an independent
VCT status monitoring role.
Risk Mitigation Change
Loss of key people:
The loss of key investment staff by the Portfolio Manager could lead to poor fund management and/or performance due to lack of continuity or understanding of Future Generations VCT. The Portfolio Manager has a broad team experienced in and focused on early-stage investing. This mitigates the risk of any one individual with the required skill set and The increase is attributed to the departure of key personnel from the Octopus Ventures team and risk exposure reflects a reduction in performance fees potentially increasing attrition.
knowledge of venture capital investing, and the portfolio specifically, leaving. Key investment staff are also incentivised via the performance incentive fee.
Risk Mitigation Change
Operational:
The Future Generations VCT Board is reliant on the Portfolio Manager to manage investments effectively, and manage the services of a number of third parties, in particular the registrar, depositary and tax advisers. A failure of the systems or controls at Octopus or third‑party providers could lead to an inability to provide accurate reporting and accounting and to ensure adherence to VCT rules. The Future Generations VCT Board reviews the system of internal controls, both financial and non-financial, operated by Octopus (to the extent the latter are relevant to No overall change in risk exposure on balance.
Future Generations VCT's internal controls). These include controls designed to make sure that Future Generations VCT assets are safeguarded and that proper accounting
records are maintained.
Risk Mitigation Change
Information security:
A loss of key data could result in a data breach and fines. The Future Generations VCT Board is reliant on Octopus and third parties to take appropriate measures to prevent a loss of confidential customer information. Annual due diligence is conducted on third parties which includes a review of their controls for information security. Octopus has a dedicated Information Security team No overall change on balance, although cyber threat remains a significant risk area faced by all providers.
and a third party is engaged to provide continual protection in this area. A security framework is in place to help prevent malicious events. The appropriateness of
mitigants in place are continuously reassessed to adapt to new risk exposures, such as those posed by artificial intelligence.
Risk Mitigation Change
Economic:
Events such as an economic recession, movement in interest rates, inflation and rising living costs could adversely affect some smaller companies’ valuations, as they may be more vulnerable to changes in trading conditions of the sectors in which they operate. This could result in a reduction in the value of Future Generations VCT assets. Future Generations VCT aims to invest in a diverse portfolio of companies, across a range of sectors, which helps to mitigate against the impact on any one sector. Future Increased exposures reflected in the previous periods remain as economic uncertainty persists through high inflation, high interest rates and other economic factors.
Generations VCT also maintains adequate liquidity to make sure that it can continue to provide follow‑on investment to those portfolio companies which require it and
which are supported by the individual investment case.
Risk Mitigation Change
Legislative:
A change to the VCT regulations could adversely impact Future Generations VCT by restricting the companies Future Generations VCT can invest in under its current strategy. Similarly, changes to VCT tax reliefs for investors could make VCTs less attractive and impact Future Generations VCT’s ability to raise further funds. The Portfolio Manager engages with HM Treasury and industry bodies to demonstrate the positive benefits of VCTs in terms of growing early-stage companies, creating jobs Risk exposure has reduced following the extension of the sunset clause to 2035 being agreed.
and increasing tax revenue, and to help shape any change to VCT legislation.
Risk Mitigation Change
Liquidity:
The risk that Future Generations VCT’s available cash will not be sufficient to meet its financial obligations. Future Generations VCT invests into smaller unquoted companies, which are inherently illiquid as there is no readily available market for these shares. Therefore, these may be difficult to realise for their fair market value at short notice. Future Generations VCT’s liquidity risk is managed on a continuing basis by Octopus in accordance with policies and procedures agreed by the Board. Future Generations Risk exposures continue to increase, reflecting the potential knock-on effects of economic uncertainty, impacting fundraising and increasing the risk of disposal failure.
VCT’s overall liquidity risks are monitored on a quarterly basis by the Board, with frequent budgeting and close monitoring of available cash resources. Future
Generations VCT maintains sufficient investments in cash and readily realisable securities to meet its financial obligations. At 31 December 2024, these resources were
valued at £20,084,000.
Viability statement
In accordance with the FRC UK Corporate Governance Code published in 2018 and
provision 36 of the AIC Code of Corporate Governance, the Directors have
assessed the prospects of Future Generations VCT over a period of five years,
consistent with the expected investment holding period of an investor. A
fundraise with an initial offer to raise up to £5 million was launched on 3
February 2025. The offer closed for new applications on 1 April 2025 for the
2024/2025 tax year having successfully raised £5 million. Under VCT rules,
subscribing investors are required to hold their investment for a five‑year
period in order to benefit from the associated tax reliefs. The Board
regularly considers strategy, including investor demand for Future Generations
VCT’s shares, and a five-year period is considered to be a reasonable time
horizon for this.
The Board carried out a robust assessment of the emerging and principal risks
facing Future Generations VCT and its current position. This includes risks
which may adversely impact its business model, future performance, solvency or
liquidity, and focused on the major factors which affect the economic,
regulatory and political environment. Particular consideration was given to
the Company’s reliance on, and close working relationship with, the
Investment Manager. The principal risks faced by the Company and the
procedures in place to monitor and mitigate them are set out above.
The Board has carried out robust stress testing of cash flows, which included
assessing the resilience of portfolio companies, including the requirement for
any future financial support.
The Board has additionally considered the ability of Future Generations VCT to
comply with the ongoing conditions to make sure it maintains its VCT
qualifying status under its current Investment policy.
Based on this assessment, the Board confirms that it has a reasonable
expectation that Future Generations VCT will be able to continue in operation
and meet its liabilities as they fall due over the five-year period to 31
December 2029. The Board is mindful of the ongoing risks and will continue to
make sure that appropriate safeguards are in place, in addition to monitoring
the cash flow forecasts to make sure Future Generations VCT has sufficient
liquidity.
Directors’ responsibilities statement
The Directors are responsible for preparing the Strategic Report, the
Directors’ Report, the Directors’ Remuneration Report and the Financial
Statements in accordance with applicable law and regulations. They are also
responsible for ensuring that the annual report and financial statements
include information required by the UK Listing Rules of the Financial Conduct
Authority.
Company law requires the Directors to prepare financial statements for each
financial year. Under that law the Directors have elected to prepare the
financial statements in accordance with United Kingdom Generally Accepted
Accounting Practice (GAAP), including Financial Reporting Standard 102 – The
Financial Reporting Standard Applicable in the United Kingdom and Republic of
Ireland (FRS 102), United Kingdom accounting standards and applicable law.
Under company law the Directors must not approve the financial statements
unless they are satisfied that they give a true and fair view of the state of
affairs and profit or loss of the Company for that period. In preparing these
financial statements, the Directors are required to:
* select suitable accounting policies and then apply them consistently;
* make judgements and accounting estimates that are reasonable and prudent;
* state whether applicable UK accounting standards have been followed, subject
to any material departures disclosed and explained in the financial
statements;
* prepare the financial statements on the going concern basis unless it is
inappropriate to presume that the Company will continue in business; and
* prepare a Strategic Report, Directors’ Report and Directors’
Remuneration Report which comply with the requirements of the Companies Act
2006.
The Directors are responsible for keeping adequate accounting records that are
sufficient to show and explain the Company’s transactions and disclose with
reasonable accuracy at any time the financial position of the Company and
enable them to ensure that the financial statements comply with the Companies
Act 2006. They are also responsible for safeguarding the assets of the Company
and hence for taking reasonable steps for the prevention and detection of
fraud and other irregularities.
In so far as each of the Directors is aware:
* there is no relevant audit information of which the Company’s auditor is
unaware; and
* the Directors have taken all steps that they ought to have taken to make
themselves aware of any relevant audit information and to establish that the
auditor is aware of that information.
The Directors are responsible for preparing the annual report and financial
statements in accordance with applicable law and regulations. Having taken
advice from the Audit Committee, the Directors are of the opinion that this
report as a whole provides the necessary information to assess the Company’s
performance, business model and strategy and is fair, balanced and
understandable.
The Directors are responsible for the maintenance and integrity of the
corporate and financial information included on the Company’s website.
Legislation in the United Kingdom governing the preparation and dissemination
of financial statements may differ from legislation in other jurisdictions.
The Directors confirm that, to the best of their knowledge:
* the financial statements, prepared in accordance with United Kingdom
Generally Accepted Accounting Practice, including FRS 102, give a true and
fair view of the assets, liabilities, financial position and profit or loss of
the Company; and
* the annual report and financial statements (including the Strategic Report),
give a fair review of the development and performance of the business and the
position of the Company, together with a description of the principal risks
and uncertainties that it faces.
On behalf of the Board
Helen Sinclair
Chair
Income statement
18 months to 31 December 2024 Year to 30 June 2023
Revenue Capital Total Revenue Capital Total
£’000 £’000 £’000 £’000 £’000 £’000
Gain on disposal of fixed asset investments — 1,382 1,382 — — —
Net loss on valuation of fixed asset investments — (3,564) (3,564) — (6) (6)
Investment management fee (345) (1,035) (1,380) (174) (522) (696)
Investment income 1,427 — 1,427 424 — 424
Other expenses (759) — (759) (500) — (500)
Earnings/(loss) before tax 323 (3,217) (2,894) (250) (528) (778)
Tax — — — — — —
Earnings/(loss) after tax 323 (3,217) (2,894) (250) (528) (778)
Earnings/(loss) per share – basic and diluted 0.6p (6.3)p (5.7)p (0.6)p (1.3)p (1.9)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
As at 31 December 2024 As at 30 June 2023
£’000 £’000 £’000 £’000
Fixed asset investments 26,769 24,895
Current assets:
Debtors 1,166 379
Applications cash (1) 100 370
Cash at bank 112 152
Money market funds 19,972 20,140
21,350 21,041
Creditors: amounts falling due within one year (196) (518)
Net current assets 21,154 20,523
Net assets 47,923 45,418
Share capital 54 48
Share premium 51,854 46,461
Capital reserve realised (328) (640)
Capital reserve unrealised (3,526) 3
Revenue reserve (131) (454)
Total equity shareholders’ funds 47,923 45,418
NAV per share 88.8p 94.3p
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 28
April 2025 and are signed on their behalf by:
Helen Sinclair
Chair
Company No: 13750143
Statement of changes in equity
Share capital £’000 Share premium £’000 Capital reserve realised (1) £’000 Capital reserve unrealised £’000 Revenue reserve (1) £’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:
Share issue 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
Share capital £’000 Share premium £’000 Capital reserve realised (1) £’000 Capital reserve unrealised £’000 Revenue reserve (1) £’000 Total £’000
As at 1 July 2022 33 31,572 (118) 9 (204) 31,292
Comprehensive income for the period:
Management fees allocated as capital expenditure — — (522) — — (522)
Net loss on fair value of fixed asset investments — — — (6) — (6)
Loss after tax — — — — (250) (250)
Total comprehensive loss for the period — — (522) (6) (250) (778)
Contributions by and distributions to owners:
Shares issued 15 15,164 — — — 15,179
Share issue costs — (275) — — — (275)
Total contributions by and distributions to owners 15 14,889 — — — 14,904
Balance as at 30 June 2023 48 46,461 (640) 3 (454) 45,418
1. Reserves are available for distribution, subject to the restrictions.
The accompanying notes form an integral part of the financial statements.
Cash flow statement
18 months to 31 December Year to 30 June
2024 2023
£’000 £’000
Cash flows from operating activities
Loss before tax (1) (2,894) (778)
Decrease/(increase) in debtors 173 (325)
Decrease in creditors (52) (103)
Gain on disposal of fixed assets (1,382) —
Loss on valuation of fixed asset investments 3,564 6
Outflow from operating activities (591) (1,200)
Cash flows from investing activities
Purchase of fixed asset investments (8,162) (23,238)
Sale of fixed asset investments 3,146 —
Outflow from investing activities (5,016) (23,238)
Cash flows from financing activities
Movement in applications account (270) (1,544)
Proceeds from share issues 5,512 15,179
Share issue costs (113) (275)
Inflow from financing activities 5,129 13,360
Decrease in cash and cash equivalents (478) (11,079)
Opening cash and cash equivalents 20,662 31,741
Closing cash and cash equivalents 20,184 20,662
Cash and cash equivalents comprise
Cash at bank 112 152
Money market funds 19,972 20,140
Applications cash 100 370
Closing cash and cash equivalents 20,184 20,662
1. Loss before tax includes cashflows from dividends of £1.4 million (2023:
£0.4 million).
The accompanying notes form an integral part of the financial statements.
Notes to the financial statements
1. Principal accounting policies
Octopus Future Generations VCT plc (‘Future Generations VCT’) is a Public
Limited Company (plc) incorporated in England and Wales and its registered
office is at 6th Floor, 33 Holborn, London EC1N 2HT.
Future Generations VCT has been approved as a Venture Capital Trust by HMRC
under Section 259 of the Income Taxes Act 2007. The shares of Future
Generations VCT were first admitted to the Official List of the UK Listing
Authority and trading on the London Stock Exchange on 5 April 2022 and can be
found under the TIDM code OFG. Future Generations VCT is premium listed.
The principal activity of Future Generations VCT is to invest in a diversified
portfolio of UK smaller companies in order to generate capital growth over the
long term as well as an attractive tax-free dividend stream.
The financial statements are presented in GBP (£) to the nearest £’000.
The functional currency is also GBP (£). Some accounting policies have been
disclosed in the respective notes to the financial statements.
Basis of preparation
The financial statements have been prepared on a going concern basis under the
historical cost convention, except for the measurement at fair value of
certain financial instruments, and in accordance with UK Generally Accepted
Accounting Practice (GAAP), including Financial Reporting Standard 102 –
‘The Financial Reporting Standard applicable in the United Kingdom and
Republic of Ireland’ (FRS 102), the Companies Act 2006 and the Statement of
Recommended Practice (SORP) ‘Financial Statements of Investment Trust
Companies and Venture Capital Trusts (July 2022)’.
2. Investment income
Accounting policy
Investment income comprises interest earned on money market funds. Dividend
income is shown net of any related tax credit. Dividends receivable are
brought into account when Future Generation's right to receive payment is
established and there is no reasonable doubt that payment will be received.
Fixed returns on debt and money market funds are recognised so as to reflect
the effective interest rate, provided there is no reasonable doubt that
payment will be received in due course.
Disclosure
18 months to
31 December 2024 30 June 2023
£’000 £’000
Money market funds 1,427 424
Total investment income 1,427 424
3. Investment management fees
Accounting policy
For the purposes of the revenue and capital columns in the Income Statement,
the management fee has been allocated 25% to revenue and 75% to capital, in
line with the Board’s expected long-term return in the form of income and
capital gains respectively from Future Generations VCT’s investment
portfolio.
Disclosure
18 months to 31 December 2024 Year to 30 June 2023
Revenue Capital Total Revenue Capital Total
£’000 £’000 £’000 £’000 £’000 £’000
Investment
management fee 345 1,035 1,380 174 522 696
Total 345 1,035 1,380 174 522 696
The Portfolio Manager provides investment management services through
agreements with Octopus AIF Management Limited and Future Generations VCT. It
also provides accounting and administration services to Future Generations VCT
under a Non-Investment Services Agreement (NISA). No compensation is payable
if the agreement is terminated by either party, if the required notice period
is given. The fee payable, should insufficient notice be given, will be equal
to the fee that would have been paid should continuous service be provided, or
the required notice period was given.
4. Other expenses
Accounting policy
Other expenses are accounted for on an accruals basis and are charged wholly
to revenue.
The transaction costs incurred when purchasing or selling assets are written
off to the Income Statement in the period that they occur.
18 months to Year to
31 December 30 June
2024 2023
£’000 £’000
NISA fees 213 122
Directors' remuneration (1 ) 157 77
Audit fees (2 ) 78 63
Directors and Officers (D&O) insurance 74 15
Depositary fees 62 57
Listing fees 46 58
Registrars fees 28 21
Director recruitment & expenses 27 —
Report and account fees 26 38
Other fees 48 49
Total 759 500
1. Includes employers’ NI.
2. Includes VAT.
Total ongoing charges are capped at 3.0% of net assets. For the period to 31
December 2024, the ongoing charges exceeded this cap and a rebate was paid
from the Portfolio Manager for the amount of £39,000. For the 18 months to 31
December 2024 the ongoing charges were 3.0% (2023: 3.0%) of net assets. This
is calculated by summing the annualised expenses incurred in the period
(excluding non-recurring expenses) divided by the average NAV throughout the
period.
5. Tax on ordinary activities
Accounting policy
Corporation tax payable is applied to profits chargeable to corporation tax,
if any, at the current rate. The tax effect of different items of income/gain
and expenditure/loss is allocated between capital and revenue return on the
‘marginal’ basis as recommended in the SORP.
Deferred tax is recognised in respect of all timing differences at the
reporting date. Timing differences are differences between taxable profits and
total income as stated in the financial statements that arise from the
inclusion of income and expenses in tax assessments in periods different from
those in which they are recognised in financial statements.
Disclosure
The corporation tax charge for the period was £nil.
18 months to Year to
31 December 30 June
2024 2023
£’000 £’000
Loss on ordinary activities before tax (2,894) (778)
Current tax at 25% (2023: 20.5%) (724) (159)
Effects of:
Non-taxable income (357) —
Non-taxable capital gains 546 1
Non-deductible expenses 1 —
Excess management expenses on which deferred tax not recognised 534 193
Tax rate differences (1) — (35)
Total current tax charge — —
1. Tax rate difference due to tax charge for the period being calculated at
20.5% and excess management expenses on which deferred tax is not recognised
being calculated at 25%.
Unrelieved tax losses of £3,231,000 (2023: £1,094,000) are estimated to be
carried forward at 31 December 2024 (subject to completion of Future
Generations VCT’s tax return) and are available for offset against future
taxable income, subject to agreement with HMRC. Future Generations VCT has not
recognised the deferred tax asset of £808,000 (2023: £273,000) in respect of
these tax losses because there is insufficient forecast taxable income in
excess of deductible expenses to utilise these losses carried forward.
Approved VCTs are exempt from tax on capital gains. As the Directors intend
for Future Generations VCT to continue to maintain its approval as a VCT
through its affairs, no current deferred tax has been recognised in respect of
any capital gains or losses arising on the revaluation or disposal of
investment.
6. (Loss)/earnings per share
18 months to 31 December 2024 Year to 30 June 2023
Revenue Capital Total Revenue Capital Total
£’000 £’000 £’000 £’000 £’000 £’000
Earnings/(loss) attributable to Ordinary shareholders (£’000) 323 (3,217) (2,894) (250) (528) (778)
Earnings/(loss) per Ordinary share (p) 0.6 (6.3) (5.7) (0.6) (1.3) (1.9)
The Earnings/(loss) per share is based on 51,727,417 (2023: 40,987,788)
Ordinary shares, being the weighted average number of Ordinary shares in issue
during the period.
There are no potentially dilutive capital instruments in issue and so no
diluted return per share figures are relevant. The basic and diluted earnings
per share are therefore identical.
7. Net asset value per share
31 December 30 June
2024 2023
Net assets (£’000) 47,923 45,418
Shares in issue 53,941,104 48,138,337
NAV per share (p) 88.8 94.3
8. Transactions with the Manager and Portfolio Manager
Future Generations VCT is classified as a full-scope Alternative Investment
Fund under the Alternative Investment Fund Management Directive (the ‘AIFM
Directive’). Future Generations VCT has appointed Octopus AIF Management
Limited to provide the services of an AIFM of a full-scope AIF. In accordance
with its power to do so under AIFMD, Octopus AIF Management Limited has
delegated investment management to Octopus Investments Limited, whilst
retaining the obligations of a risk manager.
Future Generations VCT paid Octopus AIF Management Limited £1,380,000 (2023:
£696,000) in the period as a management fee, after applying a rebate to
maintain the total ongoing charges below the 3% cap. 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. The Manager will donate 10% of the management fee
to the Octopus Giving Charitable Foundation, which was set up in 2014 to help
charities make the world a better place and which, since inception, has
donated more than £1 million to such worthy causes.
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 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 £213,000 (2023: £122,000) was paid to Octopus for
Non‑Investment Services. 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 year ending on 31 December 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 has agreed to pay, is 3.0%, and is
calculated in accordance with the AIC Guidelines.
Octopus AIF Management Limited remuneration disclosures (unaudited)
Quantitative remuneration disclosures required to be made in this annual
report in accordance with the FCA Handbook FUND 3.3.5 are available on the
website: https://www.octopusinvestments.com/remuneration-disclosures/.
9. 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.
Emma Davies, a Non-Executive Director of Future Generations VCT, previously
held the role of co-CEO of Octopus Ventures and she also holds shares in
Octopus Capital Ltd. On 24 March 2023, Emma Davies ceased to be employed by
Octopus Capital Limited and therefore she is no longer considered a related
party. Emma retired as a Non-Executive Director of Future Generations VCT on
31 March 2024. No dividends have been paid to the Directors of Future
Generations VCT in the period (2023: £nil).
10. 2024 financial information
The figures and financial information for the period ended 31 December 2024
are extracted from the Company’s annual financial statements for the period
and do not constitute statutory accounts. The Company’s annual financial
statements for the period to 31 December 2024 have been audited but have not
yet been delivered to the Registrar of Companies. The Auditors’ report on
the 2024 annual financial statements was unqualified, did not include a
reference to any matter to which the auditors drew attention without
qualifying the report, and did not contain any statements under Sections
498(2) or 498(3) of the Companies Act 2006.
11. 2023 financial information
The figures and financial information for the year ended 30 June 2023 are
compiled from an extract of the published financial statements for the period
and do not constitute statutory accounts. Those financial statements have been
delivered to the Registrar of Companies and included the Auditors’ report
which was unqualified, did not include a reference to any matter to which the
auditors drew attention without qualifying the report, and did not contain any
statements under Sections 498(2) or 498(3) of the Companies Act 2006.
12. Annual Report and financial statements
The Annual Report and financial statements will be posted to shareholders in
early May and will be available on the Company’s website,
https://octopusinvestments.com/our-products/venture-capital-trusts/octopus-future-generations-vct/.
The Notice of Annual General Meeting is contained within the Annual Report.
13. General information
Registered in England & Wales. Company No. 13750143
LEI: 213800AL71Z7N2O58N66
14. Directors
Helen Sinclair (Chair), Joanna Santinon and Ajay Chowdhury
15. Secretary and registered office
Octopus Company Secretarial Services Limited
6(th) Floor, 33 Holborn, London EC1N 2HTRecent news on Octopus Future Generations Vct
See all newsREG-Total Voting Rights and Capital
AnnouncementREG-Annual report and financial statements for the period ended 31 December 2024
AnnouncementREG - Official List - Official List Notice
AnnouncementREG - Stock Exch Notice - Admission to Trading - 09/04/2025
AnnouncementREG - Stock Exch Notice - Admission to Trading - 19/06/2024
Announcement