Full Year Results and Notice of AGM

Core Viewpoint - Hargreave Hale AIM VCT plc reported its financial results for the year ending September 30, 2025, highlighting a marginal loss in NAV and share price total returns, while also announcing a proposed final dividend and a special dividend for shareholders [2][5][22]. Financial Highlights - The net asset value (NAV) per share decreased to 36.46 pence from 40.55 pence, resulting in a NAV total return of -0.22% for the year [6][16]. - The market capitalization fell from £142.34 million to £127.41 million, with the share price dropping from 39.00 pence to 34.40 pence, reflecting a share price total return of -1.54% [6][18]. - Dividends paid per share remained constant at 4.00 pence, with a final dividend of 1 penny proposed and a special dividend of 2 pence approved by the Board [5][21][22]. Investment Activity - The Company invested £4.8 million in seven qualifying companies during the year, with 98.98% of its VCT tax value invested in qualifying investments as of September 30, 2025 [7][19]. - The fair value of qualifying investments was reported at £73.0 million, representing 54.1% of NAV, while non-qualifying investments included £8.4 million in equities and £21.1 million in short-dated investment-grade corporate bonds [19]. Market Context - The Investment Association reported sustained outflows from UK equities for four consecutive years, with fiscal policy changes negatively impacting sectors like leisure and hospitality [9]. - The London Stock Exchange experienced a thirty-year low for initial public offerings, prompting the Company to become more active in private capital markets [11]. Performance Overview - The Company reported a marginal loss across the year, but noted a positive return of +9.36% in the second half of the financial year, marking the first period of improved performance after four years of decline [13]. - The earnings per share total return was a loss of -0.14 pence, with revenue income decreasing by 14% to £2.5 million due to reduced allocations to high-yielding non-qualifying equity investments [17]. Shareholder Engagement - The Company is committed to maintaining shareholder engagement, providing updates and opportunities for interaction through its website and planned events [50][55]. - Shareholders are encouraged to participate in the upcoming AGM scheduled for February 5, 2026, where key resolutions will be proposed [49]. Future Outlook - The Company anticipates a positive impact from upcoming legislative changes that will increase thresholds for VCT capital deployment, although concerns remain regarding reduced income tax relief for investors [69][70]. - The Investment Manager reported an improvement in deal flow post-period end, with £2.9 million invested across two qualifying investments [71].