Annual report and
accounts for the
year ended
28 February 2025
Company number: 03477519
For UK investors only
Octopus AIM VCT plc
Octopus AIM VCT plc (the ‘Company’) is a Venture Capital Trust
(VCT) which aims to provide shareholders with attractive
tax-free dividends and long-term capital growth by investing
in a diverse portfolio of predominantly AIM-traded companies.
The Company is managed by Octopus Investments Limited
(‘Octopus’ or the ‘Investment Manager’).
Contents
Financial summary and key dates 1
Strategic report
• Chair’s statement 2
• Investment Manager’s review 4
• The Investment Manager 17
• Section 172 statement 19
• Business review 21
• Risk and risk management 26
Details of Directors 31
Directors’ report 32
Corporate governance report 36
Audit Committee report 40
Directors’ remuneration report 42
Directors’ responsibilities statement 45
Independent auditor’s report 46
Income statement 53
Balance sheet 54
Statement of changes in equity 55
Cash flow statement 56
Notes to the financial statements 57
Shareholder information and contact details 72
Glossary of terms 75
Directors and advisers 76
Notice of Annual General Meeting 77
1
Octopus AIM VCT plc Annual report 2025
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Year to
28 February 2025
Year to
29 February 2024
Net assets (£’000)
115,383
129,109
Loss after tax (£’000)
(6,079)
(17,734)
Net asset value (NAV) per share (p)
1
50.6
63.3
Dividends per share paid in year (p)
9.9
5.0
Total return (%)
2
(4.4)
(13.0)
Final dividend proposed (p)
3
2.5
2.5
Special dividend proposed (p)
–
4.9
Ongoing charges (%)
4
2.3
2.1
1
NAV per share is calculated on the underlying assets less liabilities of the Company divided by the number of shares, refer to page 23 for commentary on the movement.
2
Total return is an alternative performance measure calculated as movement in NAV per share in the period plus dividends paid in the period, divided by the NAV per share
at the beginning of the period.
3
Subject to shareholder approval at the Annual General Meeting, the proposed final dividend will be paid on 28 August 2025 to shareholders on the register on 1 August
2025.
4
Ongoing charges is an alternative performance measure calculated using the AIC recommended methodology, refer to page 24 for commentary on the movement.
Definitions of key terms and alternative performance measures shown above and throughout this report are shown in the Glossary
of Terms on page 75.
Key dates
Annual General Meeting 23 July 2025
Final dividend payment date 28 August 2025
Half-yearly results to 31 August 2025 published November 2025
Annual results to 28 February 2026 published June 2026
Financial summary
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Octopus AIM VCT plc Annual report 2025
Introduction
Firstly, I would like to welcome all new shareholders who have
joined us in the past year.
The year ended 28 February 2025 was a tale of two halves for
investors in smaller companies. In the first half of the year, the
FTSE AIM Index delivered positive returns of 5.8% as growth in
the UK economy exceeded expectations, supporting a more
buoyant market for secondary fundraisings and IPO activity than
had been the case for quite a while. The returns in the second
half were marred by policy uncertainty surrounding the new
UK Government’s growth agenda. Announcements including
cuts to Inheritance Tax relief on AIM shares cast a shadow on
both market activity and investor sentiment which frustratingly
resulted in a reversal of performance with the FTSE AIM Index
delivering a negative return of 2.6% for the full year.
The change in administration at the White House early in the new
year triggered a decline in global market confidence, as investors
anticipated policy uncertainty under the Trump Administration.
Since our year-end developments including the US ‘Liberation
Day’ announcement of US tariffs and subsequent pauses and
reversals in these policies have heightened market uncertainty,
dampening investor confidence. This persistent volatility has
become a defining feature of the current market environment.
These concerns reflect broader fears of an economic slowdown,
with the full extent of the impact on the UK economy still unclear
as trade negotiations continue.
For 2025 the Office for Budget Responsibility is forecasting a
modest increase in UK GDP of around 1%, roughly half of the
2% growth anticipated at the end of 2024. Inflation is expected
to average approximately 3% which, coupled with this subdued
growth, suggests that the pace of interest rate cuts will be slower
than previously anticipated. In the context of low UK equity
valuations this gradual easing could act as a meaningful positive
catalyst for UK equities and help restore some market confidence.
It is pleasing to report that despite these background challenges,
opportunities to invest in innovative, growth-oriented companies
persisted. During the year under review, the AIM market raised
£2 billion for new and existing companies, up from £1.7 billion the
previous year. A significant part of this capital (£1.6 billion) was
raised by existing AIM companies seeking additional funding.
The Investment Manager deployed £7.3 million into qualifying
companies, slightly down from £7.7 million the prior year, and is
confident that there will continue to be sufficient opportunities to
invest our funds in good companies seeking more growth capital
at attractive valuations.
Performance
Amidst this backdrop of economic, market, political, and
geopolitical uncertainty, the year to 28 February 2025 proved
challenging for the fund. The NAV on 28 February 2025 was 50.6p
per share, a decrease on the NAV of 63.3p per share reported
at 29 February 2024. Adding back the 9.9p of dividends paid in
the year gives a total negative return of 4.4%. In the same year,
the FTSE AIM Index fell by 2.6%, the FTSE SmallCap (excluding
investment companies) Index rose by 10.7% and the FTSE All-
Share Index rose by 18.4%, all on a total return basis.
The AIM market’s underperformance compared to other UK
indices over the past three years underscores investors’ aversion
to risk during periods of market instability and equity outflows.
Investors have preferred larger more defensive companies in
traditional liquid sectors, rather than significant exposure to
new technology, healthcare and biotech growth stocks (sectors
that form a large part of your portfolio’s investments). Venture
Capital Trusts (VCTs) face additional investment restrictions and
must ensure they are invested in qualifying stocks. The FTSE AIM
Index, while not a perfect replica, remains the most appropriate
broad equity benchmark for comparison due to the nature of
its underlying holdings. The FTSE SmallCap and All-Share indices
provide a broader market context.
Dividends
In January 2025 an interim dividend for the year to 28 February
2025 of 2.5p was paid to all shareholders. This was in addition to
the 2.5p final dividend and 4.9p special dividend that had been
paid in August 2024 which related to the previous financial year
ended 29 February 2024. The Board is recommending a final
dividend of 2.5p, resulting in a total dividend of 5.0p in respect
of the year. There is no special dividend this year as no material
profits have been generated on disposals during the year. The
total dividend of 5.0p represents 10.5% of the year-end share price
of 47.8p. This is in line with our policy of paying a minimum annual
dividend of 5.0p per share or a 5% yield based on the year-end
share price, whichever is the greater.
Board changes
As mentioned in last year’s Annual Report, Louise Nash joined the
Board on 1 July 2024, and Stephen Hazell-Smith stepped down
from the Board at last year’s AGM on 18 July 2024.
Having been on the Board for nearly nine years, and Chair since
2021, it is my intention to step down from the Board with effect
from this year’s Annual General Meeting on 23 July 2025, and
accordingly I will not be offering myself for re-election. I am
pleased to report that Joanne Parfrey, who has been a member
of the Board since 2016, will be taking over as Chair with effect
from the AGM.
The Board is currently conducting a recruitment process, with the
assistance of an external recruitment firm, Nurole Ltd, to appoint
a further director of the Company in due course.
Cancellation of share premium account
At the last Annual General Meeting, shareholders voted to cancel
share premium to increase the pool of distributable reserves to
the amount of £18.1 million. This is a regular occurrence, and
common practice, to enable the continued payment of dividends
and buyback of shares. A further resolution to cancel share
premium is being proposed at this year’s Annual General Meeting.
Chair’s statement
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Dividend reinvestment scheme
In common with many other VCTs in the industry, the Company
has established a Dividend Reinvestment Scheme (DRIS). Many
shareholders have already taken advantage of this opportunity.
For investors who do not require income, but value the additional
tax relief on their reinvested dividends, this is an attractive
scheme and I hope more shareholders will find it useful. In the
course of the year 6,765,311 new shares have been issued under
this scheme, returning £3.7 million to the Company. The final
dividend referred to above will be eligible for the DRIS.
Share buybacks
During the year to 28 February 2025 the Company continued
to buy back shares in the market from selling shareholders and
purchased 6,705,585 ordinary shares for a total consideration of
£3.7 million. We have maintained a discount of approximately
4.1% to NAV (equating to up to a 5.0% discount to the selling
shareholder after costs), which the Board monitors and intends
to retain as a policy which fairly balances the interests of both
remaining and selling shareholders. Buybacks remain an
essential practice for VCTs, as providing a means of selling is an
important part of the initial investment decision and has enabled
the Company to grow. As such, I hope you will all support the
appropriate resolution at the AGM.
Share issues
On 23 September 2024, a prospectus offer was launched
alongside Octopus AIM VCT 2 plc to raise a combined total of
up to £20 million, with a £10 million over-allotment facility. In the
period under review the Company raised £12.6 million after costs
and issued a total of 24,270,651 shares. After the reporting period
the offer closed fully subscribed on 27 March 2025.
VCT status
Shoosmiths LLP were engaged throughout the year to provide
the Board and Investment Manager with advice concerning
continuing compliance with HMRC regulations for VCTs. The
Board has been advised that the Company is in compliance with
the conditions laid down by HMRC for maintaining approval as a
VCT. A key requirement is to maintain at least an 80% qualifying
investment level. As at 28 February 2025, 85.1% of the Company’s
portfolio was in VCT qualifying investments.
Annual General Meeting (AGM)
The AGM will take place on 23 July 2025 at 10.30am. Further
information can be found in the Directors’ Report and Notice
of Annual General Meeting on pages 32 and 77, respectively.
The Investment Manager will also give a live presentation to
shareholders on the day of the AGM. This will enable shareholders
to receive an update from the Investment Manager and provide
an opportunity for questions to the Board and the Investment
Manager. Formal notices will be sent to shareholders by
their preferred method (email or post) and shareholders are
encouraged to submit their votes by proxy. We always welcome
questions from our shareholders at the AGM. Please send any
questions via email to AimAGM@octopusinvestments.com by
5.00pm on 15 July 2025.
Outlook
After a prolonged period of underperformance, there are
reasonable grounds for hoping that prospects for the AIM
market should improve in the current financial year. Key potential
drivers of improvement include regulatory reforms that facilitate
investment, the recent Mansion House Accord which commits
major pension providers to direct £25 billion into UK growth
assets by 2030, the possible reform of VCT rules and a pipeline of
IPOs and M&A activity expected to restore investor confidence.
Additionally, anticipated interest rate cuts and government
initiatives targeting innovation sectors such as technology,
healthcare, and green energy are creating a more supportive
environment. While geopolitical uncertainties persist, these
combined factors position AIM for a potential rebound, which
could offer attractive opportunities for growth-focused investors.
The portfolio contains 87 holdings across a range of sectors with
exposure to some exciting new technologies in the environmental
and healthcare sectors in particular. Many of these companies
remain well funded, although the challenge of raising further
capital in the current market environment cannot be dismissed.
The balance of the portfolio towards profitable companies
remains, and the Investment Manager remains confident
that there will continue to be sufficient opportunities to invest
our funds in good companies seeking more growth capital at
attractive valuations.
Neal Ransome
Chair
20 June 2025
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Octopus AIM VCT plc Annual report 2025
Introduction
The year ended 28 February 2025 began on a positive note.
Economic uncertainty had eased, inflation approached target
levels, and UK GDP growth figures were revised upwards,
boosting optimism among economic commentators. Against
this backdrop, the IPO market showed early signs of recovery,
and secondary fundraisings had increased. Coupled with the
first interest rate cut in four years during the summer, these
developments restored much-needed confidence among UK
investors that a sustained market recovery was imminent.
Consequently, markets responded positively, with reduced
volatility and company share prices reacting favourably to good
news.
This positive trend continued through most of the first half of
the year but was interrupted ahead of the new UK Government’s
Autumn Budget, which introduced significant reforms to
Business Property Relief (BPR) affecting tax planning. The
changes (notably the reduction of relief from 100% to 50%
for shares listed on markets such as AIM), heightened investor
uncertainty and sparked widespread concerns about the long-
term implications for UK capital markets. In response, market
participants (including the London Stock Exchange, investors,
industry bodies and brokers), have actively engaged with the
government, focusing not only on regulatory adjustments but
also on anticipated pension reforms expected to transform
investment in UK equities and these conversations are ongoing.
A stock market rally in December, coupled with a series of
encouraging trading updates from companies in January, fostered
optimism that 2025 would bring a more stable and supportive
environment for UK equities. This initial momentum suggested
a potential turnaround after a period of volatility, raising hopes
among investors for sustained growth and improved market
sentiment. However, the arrival of the new US administration
and lingering uncertainty over the implementation of its policies
have tempered global investor confidence. The administration’s
aggressive tariff regime introduces complex challenges, as the
indirect consequences, such as disruptions to global supply
chains and diminished business confidence. These are difficult to
quantify but could materially affect global GDP growth, inflation
trajectories, and interest rate policies.
Market commentators widely anticipate that these tariffs will act
as a drag on global economic expansion, adding to a backdrop
already marked by geopolitical tensions and uneven economic
recovery across regions. In recent years, global investment has
become increasingly concentrated in the US, driven by strong
corporate earnings and technological innovation. Yet, ongoing
political uncertainty and heightened market volatility may
prompt investors to reassess US market valuations, particularly
within the technology sector, which has historically been a major
driver of returns. Such a reassessment could shift investor focus
toward alternative global markets, enhancing the appeal of the
UK as a destination for both domestic and international asset
allocators. It is hoped that this potential reallocation of capital
flows could stimulate increased investment into UK equities,
supported by relatively attractive valuations and a diverse market
landscape.
Encouragingly, the UK economy is projected to grow in 2025,
albeit at a slower pace than initially forecast. While growth
forecasts have recently been revised downward to around 1%
this year, macroeconomic indicators are largely positive, with
inflation only edging up slightly in recent months, and remaining
moderate compared to previous years. Meanwhile, interest rates
are anticipated to continue to decline, albeit at a lower than
previously anticipated pace, over the course of this year and into
2026, following the first rate cut earlier in 2025 as inflationary
pressures ease. This monetary easing is cautiously restoring
confidence among smaller companies, which have been trading
well below their long-term average valuations. The sustained
corporate activity within this segment of the market highlights
the substantial latent value in UK small businesses, suggesting
considerable upside potential as market conditions improve.
Overall, while challenges remain, including cost pressures caused
by global uncertainties, the combination of modest UK economic
growth, easing inflation, and falling interest rates is developing
a more supportive environment for UK equities, particularly for
smaller companies.
The Alternative Investment Market (AIM)
In the year to February 2025 the FTSE AIM Index fell by 2.6%. This
compared to a rise in the FTSE SmallCap (excluding investment
companies) of 10.7% and a rise in the FTSE All-Share Index of
18.4%, all on a total return basis. Although VCTs face additional
investment restrictions, the AIM Index remains the most
appropriate broad equity market benchmark for comparison,
given the nature of its underlying holdings. The FTSE SmallCap
and FTSE All-Share indices provide useful broader market context.
Last year, the larger indices outperformed, supported by their
significant exposure to major banks, aerospace and defence and
pharmaceuticals. This reflected a continued investor shift away
from growth and momentum stocks toward value opportunities
in more traditional sectors. Additionally, changes to Business
Property Relief (BPR) rules announced in the Autumn Budget
proved destabilising. Historically, AIM BPR funds have been a
key source of support for AIM’s largest companies, but the new
regulations have led to a withdrawal of investment from these
funds, negatively impacting the market’s overall performance
relative to its peers.
Consequently, the pace of IPOs on AIM remained subdued, with
only 10 IPOs during the period compared to 17 in the previous
financial year. While the number of exits remained broadly in
line with historical levels, there has been an increasing trend
of companies migrating to the main market or signalling
their intention to do so. Examples of this include Gamma
Communications plc and Brooks Macdonald Group plc, both of
Investment Manager’s
review
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Octopus AIM VCT plc Annual report 2025
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which are held in the portfolio. The total number of companies listed on AIM stood at 669 as of the end of February, representing a
9.8% decline year-on-year.
Bid activity was also an important theme of the period under review with AIM seeing 27 companies bid for at an average bid premium
of 56%. Positive returns were generated as a result of bids for portfolio companies Mattioli Woods plc, Learning Technologies Group
plc and Intelligent Ultrasound Group plc at 34%, 34% and 17% premiums to the last traded price respectively. It is important to note
that, while these bids took place at relatively modest premiums to their trading prices, due to the long-term nature of our investments
these still represented significant returns on our initial investments. In total, these three bids resulted in more than £8 million of profit
over our initial investment, the majority of which was received post the period end.
Despite these challenges, we remain confident that AIM, and AIM Venture Capital Trusts (VCTs) in particular, continue to play a critical
role in supporting the growth ambitions of smaller public companies. The opportunity to invest in qualifying companies remains. This
was evidenced by the steady flow of secondary fundraisings on AIM throughout the year. In the year to 28 February 2025 AIM raised
£2 billion of new capital for existing companies, an increase on the £1.7 billion raised in the previous year. This robust fundraising activity
highlights that, despite prevailing market headwinds, the pipeline of qualifying companies seeking investment remains healthy. We
believe this environment will continue to offer attractive opportunities to invest in exciting and innovative businesses.
The graph below shows the total fundraising by AIM that has been undertaken in the 12 months to 28 February 2025 and the prior year
comparison.
Funds raised on AIM (£m)
0
100
200
300
400
500
FebruaryJanuaryDecemberNovemberOctoberSeptemberAugustJulyJuneMayAprilMarch
Year ended February 2025
Year ended February 2024
Source: London Stock Exchange
Performance
Adding back the 9.9p of dividends paid in the year, the Company’s NAV total return fell by 4.4% during the year. This compares with
a fall in the FTSE AIM Index of 2.6%, a rise in the FTSE SmallCap (excluding investment companies) of 10.7% and a rise in the FTSE
All-Share Index of 18.4%, all on a total return basis. The FTSE All-Share was lifted by strong performance of financials, consumer
staples, pharmaceuticals and aerospace and defence. Financials were driven by the large banks who benefitted from improved
margins as a result of the continued higher interest rate environment. Standout categories of consumer staples included tobacco and
personal care where demand was resilient. The pharmaceuticals sector was primarily driven by the continued strong performance
of AstraZeneca, which has an outsized impact due to being one of the largest companies in the index. Aerospace and Defence was
fuelled by increasing interest in the sector due to the ongoing heightened geopolitical uncertainty which is likely to result in a significant
increase in investment, particularly in Europe as the EU seeks to reduce its reliance on the US. The outperformance of the FTSE All-
Share Index, driven by these sectors, was largely fuelled by the share price performance of larger more established companies with
investors taking more defensive positioning due to the increased uncertainty. This trend of outperformance by traditional industries
was similar for both the FTSE SmallCap (excluding investment companies) and the FTSE AIM All-Share though returns were less
6
Octopus AIM VCT plc Annual report 2025
pronounced, markedly so for AIM. This variance in performance is
somewhat explained when accounting for the differences in
market cap scale of these indexes and considering the context of
the additional headwinds faced by AIM. For both smaller indexes
financials and consumer staples were also amongst the best
performing sectors, alongside consumer services and industrials
for the FTSE Small Cap (excluding investment companies) and
basic materials and technology for the FTSE AIM All-Share Index.
While technology does not necessarily fit well in this list this is
explained by AIM’s larger weighting towards technology.
The underperformance in the period of the Company compared
to the FTSE AIM All-Share Index is largely explained by the themes
outlined above and the weightings of certain sectors of the
portfolio relative to the index. The largest contributor to the FTSE
AIM All-Share in the period was Keywords Studios plc which was
the subject of a bid at a premium of 67% and contributed more
than a percent to the performance of the index as a result. Strong
performance in the period by typically non-qualifying sectors
such as mining and financials also contributed to the relative
underperformance.
Equipmake Holdings plc was the largest detractor from
the Company’s performance over the year, as the business
struggled with significant component price volatility, resulting in
substantially higher costs than anticipated. This challenge led to
a much larger loss than expected, shortening the company’s cash
runway and necessitating further fundraising at dilutive levels. At
the end of last year, the company undertook a strategic review,
including exploring a potential sale of the business. This process
concluded post-period with a £5 million strategic investment
from Caterpillar, accompanied by a development agreement to
create electric drivetrain products for Caterpillar’s applications.
Next 15 Group plc reported a disappointing trading statement
which subsequently led to downgrades in market expectations
following the unexpected loss of its largest contract by portfolio
company Mach49. While this setback was frustrating, Next 15
remains a global business with a strong portfolio of brands well-
positioned to benefit from a recovery in their respective markets.
Verici Dx plc’s share price saw considerable volatility due to a
delay in local coverage determination for its Tutivia test, which
was resolved after the period end. Despite this headwind, the
company achieved important milestones, including a revenue-
enhancing agreement with Thermo Fisher. Judges Scientific
Group downgraded revenue expectations during the year due
to a delay in Geotek’s large coring contract, coupled with softer
demand in China. However, the company’s proven business
model and strong track record of delivery make it well placed
to resume growth once demand normalises. Haydale Graphene
Industries plc experienced a challenging trading period over the
year, prompting a management change focused on executing
a strategic shift toward near-term commercial opportunities.
Encouragingly, the company successfully raised £3 million in
capital to support this new direction.
On a positive note, many companies in the portfolio delivered
strong trading performances during the period, contributing
positively to overall returns. Breedon Group plc was the largest
contributor, announcing its long-anticipated expansion into the
US market through the acquisition of BMC Enterprises Inc., a
leading regional supplier of ready-mixed concrete, aggregates,
and building products. This acquisition provides a valuable
foothold, positioning Breedon well for further expansion in a
growing but fragmented US market. Performance in Ireland
was strong, delivering growth in profitability which helped offset
a slightly weaker performance in Great Britain, their largest
region, where there was weaker demand exacerbated further
by adverse weather. Beeks Financial Cloud Group plc continued
to demonstrate excellent revenue growth, driven by a series of
significant contract wins and extensions. Nasdaq was confirmed
as an Exchange Cloud customer, and Grupo Bolsa Mexicana de
Valores became the fourth customer to adopt the Exchange
Cloud product. With a strong pipeline and expanding customer
base, Beeks remains well positioned to deliver sustained growth
through contract expansions and new customer acquisitions.
Netcall plc continued its double digit revenue growth,
demonstrating the demand for its cloud solutions, which drive
efficiency resulting in better customer outcomes. The company
completed the acquisitions of Govtech and Parble, enhancing
and complementing the existing suite of Liberty solutions and
creating cross-selling opportunities which underpin future revenue
growth. Diaceutics delivered another excellent performance,
growing revenues at more than 30% while also increasing the
quality and visibility of earnings with an improvement in the
proportion of revenues which are recurring. The company won
three further enterprise wide engagements, taking the total to
seven, including a first commercialisation partner engagement
where Diaceutics is the primary partner for a customer launching
a precision medicine.
In the period under review the private company holdings in our
portfolio performed strongly and had their valuations increased;
Hasgrove continued to see excellent growth in its annual recurring
revenue which was the primary reason for its increased valuation.
This was further improved by an increased valuation multiple
reflective of the level of growth and profitability the company
has experienced. Popsa delivered a strong trading performance in
the year resulting in increased revenue expectations. The business
is continuing its growth trajectory, rolling out new features and
growing its customer base, reaching 1.5 million customers in 2024.
The uplift in valuations contributed positively to the NAV of the
Company and increased the proportion of unquoted investments
in the overall value of the portfolio.
Investment Manager’s review continued
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Portfolio activity
Having made four qualifying investments at a total cost of
£2.1 million in the first half of the year, of which one was a new
investment, we added three new qualifying investments totalling
£3.7 million as well as three follow-on investments totalling
£1.4 million in the second half of the year. This made a total
investment of £7.2 million in qualifying investments for the year,
an increase on last year’s £5.8 million.
The four new qualifying issues invested into in the year were
GETECH Group plc, Windar Photonics plc, Aurrigo International plc
and RC Fornax plc. We invested £0.3 million in GETECH Group plc,
an established AIM-listed company and global leader in locating
subsurface resources, including critical metals essential to the
energy transition. The funds raised will support the company’s
ongoing business development and R&D. £0.9 million was invested
into Windar Photonics plc who manufacture LiDAR monitoring
and optimisation solutions for wind turbines. This technology
allows for optimum yaw alignment which increases the annual
energy production and extends the life of the turbine by reducing
wear caused by misalignment. An investment of £1.6 million
was made into Aurrigo International plc which specialises in the
design and development of fully integrated airside solutions for
the aviation industry. The company has developed autonomous
vehicles for baggage and cargo handling and has announced
partnerships with several of the largest airports globally including
Changi and Schipol. This autonomous technology combined
with their secure management systems boosts operational
efficiency and safety at airports, while supporting the reduction
of emissions. We invested £1.2 million at IPO into RC Fornax plc
an engineering consultancy business which provides solutions for
the defence industry.
The six follow-on investments into existing holdings were PCI-Pal
plc, Cambridge Cognition Holdings plc, Abingdon Health plc,
Ixico plc, Haydale Graphene Industries plc and GENinCode plc.
We invested £1.1 million in Abingdon Health plc, a diagnostics
tests business, to support the expansion of its laboratory
capacity; £0.2 million in PCI-Pal plc, a provider of payment
solutions and services, to strengthen its US expansion; and
£0.5 million in Cambridge Cognition Holdings plc, a digital
solutions provider for brain health assessment, to advance the
execution of its commercial strategy. We invested £0.5 million
into GENinCode plc, a leading provider in genomic testing. We
supported Ixico plc, a leading neuroscience imaging business, with
an investment of £0.6 million. We made a follow-on investment
of £0.3 million in Haydale Graphene Industries plc which engages
in the integration of graphene into next generation industrial
materials.
We invested £4.1 million into non-qualifying, main list stocks
to manage liquidity but also provide increased UK equity
market exposure where we believe that many share prices are
significantly undervalued. This provides an excellent entry point
and the opportunity to generate significant returns on a multi-
year view. Performance of these main list stocks was broadly
flat in the period, but we remain convinced of the value that
exists in these businesses. We invested £0.6 million into JTC plc, a
global professional services business embarking on an ambitious
‘Cosmos Era’ business plan, with the goal to double the business
over the next three to four years. The business has announced
four acquisitions since our initial investment; £0.6 million into
GSK plc, a R&D focussed multinational pharmaceutical and
biotechnology company aiming to positively impact the health
of billions of people. The business has delivered good financial
results, grown revenues and raising dividend expectations;
£0.6 million into WISE plc, a founder-led global payments solutions
business with ambitions to build the best solution to move and
manage money around the world. The company is continuing to
expand into new territories globally and has grown to 9 million
customers, with increased volumes allowing the business to cut
fees for its customers, further enhancing their value proposition;
£0.6 million into Cranswick plc, a leading UK food producer
which operates a vertically integrated business model allowing
it to provide assurances to its customers over the integrity of
practices due to traceability. The company continues to invest in
the resilience of its supply chain, in the period expanding their pig
operations with the acquisition of JSR Genetics to further improve
the quality of the company’s products by ensuring animal health,
playing a vital role in UK food supply; £0.6 million into Ricardo plc,
a global strategic environmental and engineering consultancy
group which executed a transformational acquisition and
disposal to reposition the business as a leader in environmental
and energy solutions, acquiring E3 advisory whilst disposing of its
defence business. The business unfortunately faced unexpected
headwinds with the delay of a major rail project as a result of
the California wildfires; £0.6 million into Bloomsbury Publishing
plc, a leading independent publisher committed to excellent and
original works which continued to benefit from the popularity of
author Sarah J. Maas’s works and began to see the benefits of
the newly acquired academic publishing business, Rowman &
Littlefield. £0.5 million was invested into Bytes Technology Group
plc, an IT solutions and services business which is able to roll out
the use of novel AI technologies such as Copilot to customers.
The business increased share of spend from customers in the
period and increased operating profits. We continue to hold
some existing non-qualifying AIM holdings where we see the
opportunity for further share price progress.
Non-qualifying investments are used to manage liquidity while
awaiting new qualifying investment opportunities. During the
year we increased our holdings in the FP Octopus Micro Cap Fund
and the FP Octopus UK Future Generations Fund and decreased
our holding in the Octopus Multi Cap Income Fund. We made
a net investment of £0.7 million over the period, investing a
combined £1 million and disposing of £0.3 million. The funds
were net detractors in the period, with their portfolios also being
exposed to many of the market headwinds discussed above. This
return was disappointing, but the funds remain well positioned to
benefit from the expected market recovery.
8
Octopus AIM VCT plc Annual report 2025
In the period under review we made partial disposals of four
companies, Judges Scientific plc, IDOX plc, Beeks Financial Cloud
Group plc and Wise plc taking profits into rising share prices. We
also fully disposed of seven holdings being Mattioli Woods plc,
Renalytix plc, Cirata plc, LoopUp Group plc, Cordel Group plc,
Eluceda Limited and Spectral AI Inc. Disposals made a net overall
gain of £0.7 million over original cost and generated £4.9 million
of cash proceeds.
Liquidity
The issue of liquidity within investment funds has remained a topic
of discussion this year. Shareholders may be interested to know
that at the year end 56.4% of the Company’s net assets were held
in individual quoted shares, 13.2% were held in unquoted single
company investments and 30.1% were held in cash or collective
investment funds providing short-term liquidity. Shareholders
should be aware that a proportion of the quoted holdings may
have limited liquidity owing to the size of the investee company
and the overall proportion held by the Company.
VCT regulations
There have been no further changes to the VCT regulations since
the publication of the previous set of audited accounts. The key
requirements are that 30% of funds raised should be invested
in qualifying holdings within twelve months of the end of the
accounting period in which the shares were issued, and the
Company has to maintain a minimum of 80% of the portfolio
(at HMRC value) invested in qualifying holdings. We remain
committed to maintaining a threshold of quality and to invest
where we see the potential for returns from growth. Over time
there has been a gradual change to the profile of the portfolio
towards earlier-stage companies. However, we continue to hold
the larger market capitalisation companies, in which we invested
several years ago as qualifying companies, or which we bought in
the market prior to the rule changes, where we see the potential
for them to continue to grow.
In order to qualify, companies must:
• have fewer than 250 full-time equivalent employees;
• have less than £15 million of gross assets at the time of
investment and no more than £16 million immediately post
investment;
• be less than seven years old from the date of their first
commercial sale (or ten years if a knowledge intensive
company) if raising State Aided (i.e. VCT) funds for the first
time;
• not receive more than £5 million state aided funds in the
previous twelve months (£10 million for a knowledge intensive
company from 6 April 2018), or more than the lifetime limit of
£12 million (£20 million for a knowledge intensive company);
and
• produce a business plan to show that the funds are being
raised for growth and development.
Outlook and future prospects
The recently announced Mansion House Accord has provided a
much-needed boost to the market. The agreement, signed by 17
major UK pension providers managing over £252 billion in assets,
commits to investing at least 10% of defined contribution default
funds into private markets by 2030, with half of this directed
toward UK assets such as infrastructure, private equity, venture
capital, and private credit, unlocking an estimated £50 billion
in investment, including £25 billion into UK growth sectors. This
voluntary initiative aims to enhance long-term pension returns
while supporting UK economic growth and innovation, with a
renewed focus on revitalising AIM as a key platform for UK high-
growth companies benefiting from increased pension fund capital
flows. Additionally, we are hopeful that anticipated regulatory
reforms for AIM, including potential amendments to VCT rules, will
enhance the market’s ability to attract innovative, high-growth
small companies seeking capital. While we remain cautiously
optimistic about the short-term outlook, we are encouraged
by the strong trading performance of many companies within
your portfolio and remain hopeful for continued opportunities
to invest in exciting businesses at attractive valuations. There is
broad consensus that UK equities are undervalued compared to
other developed markets, with smaller companies in particular,
presenting exceptional value at historically low valuations.
The portfolio contains 87 holdings with investments across a
wide range of sectors. The balance of holdings in the portfolio is
towards profitable companies and many are still trading in line or
above market expectations. With many small companies trading
below their long-term average, we still see good growth potential
when the market recovers.
The Octopus Quoted Companies team
20 June 2025
Investment Manager’s review continued
9
Octopus AIM VCT plc Annual report 2025
Call us on 0800 316 2295
Investment portfolio
Portfolio company Sector
Book cost
as at
28 February
2025
£’000
Cumulative
change in
fair value
£’000
Fair value
as at
28 February
2025
£’000
Movement
in year
£’000
% equity
held by
Octopus
AIM VCT
plc
% equity
held by
all funds
managed
by Octopus
Fair value
as a % of
Octopus
AIM VCT plc
NAV
Breedon Group plc Construction and Materials 859 5,409 6,268 995 0.41% 0.72% 5.43%
Learning Technologies Group plc Software and Computer Services 1,051 3,550 4,601 766 0.59% 0.98% 3.99%
Netcall plc Software and Computer Services 308 3,038 3,346 563 1.79% 3.93% 2.90%
Judges Scientific plc Electronic and Electrical Equipment 236 2,818 3,054 (849) 0.57% 0.95% 2.65%
GB Group plc Software and Computer Services 505 2,135 2,640 303 0.33% 6.60% 2.29%
Craneware plc Health Care Providers 183 2,356 2,539 (359) 0.39% 7.55% 2.20%
Brooks Macdonald Group plc Investment Banking and Brokerage Services 746 1,673 2,419 (162) 0.95% 2.00% 2.10%
IDOX plc Software and Computer Services 311 2,047 2,358 (247) 0.90% 15.71% 2.04%
Beeks Financial Cloud Group plc Software and Computer Services 406 1,880 2,286 948 1.21% 2.02% 1.98%
PCI-Pal plc Software and Computer Services 1,294 808 2,102 478 4.68% 8.97% 1.82%
Diaceutics plc Health Care Providers 930 819 1,749 586 1.44% 2.86% 1.52%
Aurrigo International plc Technology Hardware and Equipment 1,597 37 1,634 37 6.27% 16.48% 1.42%
Vertu Motors plc Retailers 1,266 124 1,390 (365) 0.81% 1.38% 1.19%
SDI Group plc Electronic and Electrical Equipment 179 1,182 1,361 (224) 2.13% 3.56% 1.18%
Maxcyte Inc Pharmaceuticals and Biotechnology 1,035 269 1,304 (449) 0.47% 1.22% 1.13%
Animalcare Group plc Pharmaceuticals and Biotechnology 306 938 1,244 66 0.80% 2.07% 1.08%
GENinCode plc Medical Equipment and Services 2,481 (1,345) 1,136 (56) 6.54% 10.89% 0.98%
RC Fornax plc Aerospace and Defense 1,140 (18) 1,122 (18) 6.28% 10.47% 0.97%
Windar Photonics plc Electronic and Electrical Equipment 936 47 983 47 2.43% 4.05% 0.85%
Ixico plc Pharmaceuticals and Biotechnology 1,651 (691) 960 37 10.91% 18.18% 0.83%
Gamma Communications plc Telecommunications Service Providers 274 671 945 62 0.07% 6.26% 0.82%
EKF Diagnostics Holdings plc Medical Equipment and Services 767 148 915 (261) 0.96% 1.76% 0.79%
Ilika plc Electronic and Electrical Equipment 1,058 (172) 886 127 1.26% 2.09% 0.77%
Cambridge Cognition Holdings plc Health Care Providers 1,076 (238) 838 (75) 4.88% 8.12% 0.73%
Abingdon Health plc Medical Equipment and Services 1,615 (792) 823 (312) 6.08% 10.13% 0.71%
Itaconix plc General Industrials 1,588 (778) 810 (249) 4.62% 10.73% 0.70%
Oberon Investments Group plc Investment Banking and Brokerage Services 864 (73) 791 331 2.48% 8.29% 0.69%
Eden Research plc Chemicals 1,621 (848) 773 (599) 4.67% 7. 79% 0.67%
Wise plc Industrial Support Services 545 219 764 158 0.01% 0.02% 0.66%
Nexteq plc Technology Hardware and Equipment 507 253 760 (727) 1.84% 3.07% 0.66%
Pulsar Group plc Software and Computer Services 678 54 732 (143) 1.25% 2.13% 0.63%
Cranswick plc Food Producers 606 55 661 55 0.02% 0.07% 0.57%
NEXT 15 GROUP PLC Media 453 204 657 (1,303) 0.22% 13.24% 0.57%
Sosandar plc Retailers 1,853 (1,249) 604 (845) 4.86% 10.72% 0.52%
JTC plc Investment Banking and Brokerage Services 602 (3) 599 (4) 0.04% 0.43% 0.52%
GSK plc Pharmaceuticals and Biotechnology 603 (49) 554 (49) 0.00% 0.00% 0.48%
Bloomsbury Publishing plc Media 629 (80) 549 (80) 0.11% 0.74% 0.48%
Gear4music (Holdings) plc Leisure Goods 529 4 533 – 1.81% 3.02% 0.46%
Gooch & Housego plc Technology Hardware and Equipment 422 46 468 (9) 0.40% 10.62% 0.41%
Mears Group plc Industrial Support Services 139 309 448 15 0.14% 0.16% 0.39%
Restore plc Industrial Support Services 256 175 431 (12) 0.14% 12.19% 0.37%
DP Poland plc Travel and Leisure 1,016 (604) 412 (38) 0.51% 0.86% 0.36%
Advanced Medical Solutions Group plc Medical Equipment and Services 284 87 371 4 0.08% 12.47% 0.32%
Bytes Technology Group plc Software and Computer Services 489 (119) 370 (119) 0.04% 0.12% 0.32%
Equipmake Holdings plc Electronic and Electrical Equipment 2,121 (1,761) 360 (2,523) 4.29% 7.15% 0.31%
10
Octopus AIM VCT plc Annual report 2025
Portfolio company Sector
Book cost
as at
28 February
2025
£’000
Cumulative
change in
fair value
£’000
Fair value
as at
28 February
2025
£’000
Movement
in year
£’000
% equity
held by
Octopus
AIM VCT
plc
% equity
held by
all funds
managed
by Octopus
Fair value
as a % of
Octopus
AIM VCT plc
NAV
Verici Dx plc Pharmaceuticals and Biotechnology 1,551 (1,197) 354 (1,125) 5.30% 8.86% 0.31%
TPXimpact Holdings plc Software and Computer Services 979 (661) 318 (159) 1.44% 2.39% 0.27%
Tan Delta Systems plc Electronic and Electrical Equipment 453 (139) 314 17 2.38% 3.97% 0.27%
RWS Holdings plc Industrial Support Services 143 158 301 (202) 0.07% 7.11% 0.26%
GETECH Group plc Oil, Gas and Coal 300 (15) 285 (15) 9.84% 16.40% 0.25%
Rosslyn Data Technologies plc Software and Computer Services 1,169 (884) 285 (288) 8.56% 14.26% 0.25%
Ricardo plc Construction and Materials 603 (325) 278 (325) 0.20% 2.14% 0.24%
MyCelx Technologies Corporation Electronic and Electrical Equipment 1,470 (1,218) 252 (73) 3.35% 23.55% 0.22%
Haydale Graphene Industries plc Industrial Materials 1,857 (1,605) 252 (857) 6.71% 11.18% 0.22%
Velocity Composites plc Aerospace and Defense 799 (555) 244 (47) 1.76% 2.93% 0.21%
Engage XR Holdings plc Software and Computer Services 1,879 (1,694) 185 (154) 2.94% 12.14% 0.16%
Feedback plc Medical Equipment and Services 1,500 (1,324) 176 (579) 2.30% 4.46% 0.15%
Creo Medical Group plc Medical Equipment and Services 1,471 (1,303) 168 (179) 0.29% 1.49% 0.15%
KRM22 plc Software and Computer Services 681 (518) 163 (21) 1.91% 3.18% 0.14%
Crimson Tide plc Software and Computer Services 567 (416) 151 (123) 2.87% 4.79% 0.13%
Northcoders Group plc Software and Computer Services 380 (238) 142 (42) 1.58% 2.63% 0.12%
Staffline Group plc Industrial Support Services 334 (218) 116 14 0.27% 0.27% 0.10%
Gelion plc Electronic and Electrical Equipment 1,140 (1,042) 98 (43) 0.53% 0.88% 0.08%
DXS International plc Software and Computer Services 300 (206) 94 49 5.86% 9.76% 0.08%
XP Factory plc Travel and Leisure 988 (907) 81 (29) 0.42% 0.70% 0.07%
Fusion Antibodies plc Health Care Providers 745 (678) 67 34 0.93% 1.56% 0.06%
Strip Tinning Holdings plc Electronic and Electrical Equipment 506 (446) 60 (36) 1.50% 2.50% 0.05%
1Spatial plc Software and Computer Services 300 (241) 59 3 0.08% 3.61% 0.05%
TheraCryf plc Pharmaceuticals and Biotechnology 1,050 (1,017) 33 (85) 0.62% 1.03% 0.03%
Enteq technologies plc Oil, Gas and Coal 1,032 (1,011) 21 (77) 0.99% 1.65% 0.02%
Lunglife AI, INC Pharmaceuticals and Biotechnology 2,079 (2,064) 15 (457) 3.85% 6.42% 0.01%
Tasty plc Travel and Leisure 516 (509) 7 (5) 0.62% 1.19% 0.01%
Genedrive Plc Pharmaceuticals and Biotechnology 217 (212) 5 (8) 0.05% 0.08% 0.00%
Metir plc Electronic and Electrical Equipment 1,384 (1,384) – – 0.02% 0.04% 0.00%
Sorted Group Holdings plc Software and Computer Services 763 (763) – – 0.01% 0.01% 0.00%
Trackwise Designs plc Technology Hardware and Equipment 1,934 (1,934) – – 0.42% 0.70% 0.00%
Cloudified Holdings Limited Software and Computer Services 900 (900) – (20) 2.02% 3.36% 0.00%
ReNeuron Group plc Pharmaceuticals and Biotechnology 1,485 (1,485) – – 3.03% 5.06% 0.00%
The British Honey Company plc General Retailers 1,321 (1,321) – – 7.12% 11.86% 0.00%
Libertine holdings plc Industrial Engineering 3,000 (3,000) – (600) 10.77% 17.96% 0.00%
Total quoted investments 73,811 (8,737) 65,074 (9,931) 56.39%
Investment Manager’s review continued
Investment portfolio continued
11
Octopus AIM VCT plc Annual report 2025
Call us on 0800 316 2295
Portfolio company
Book cost
as at
28 February
2025
£’000
Cumulative
change in
fair value
£’000
Fair value
as at
28 February
2025
£’000
Movement
in year
£’000
% equity
held by
Octopus
AIM VCT
plc
% equity
held by
all funds
managed
by Octopus
Fair value
as a % of
Octopus
AIM VCT
NAV
Unquoted equity investments
Hasgrove Limited 88 7,930 8,018 1,769 2.84% 17.07% 6.95%
Popsa Holdings Limited 1,590 2,617 4,207 990 6.23% 10.39% 3.65%
Intelligent Ultrasound Group Limited 2,156 640 2,796 968 6.18% 10.30% 2.42%
Alusid Limited 299 (60) 240 (60) 3.14% 5.23% 0.21%
Airnow plc 1,257 (1,257) – – 0.41% 0.73% 0.00%
Rated People Ltd 354 (354) – – 0.11% 0.32% 0.00%
The Food Marketplace Ltd 300 (300) – – 6.60% 10.99% 0.00%
Total unquoted equity investments 6,045 9,216 15,261 3,667 13.23%
Loan notes
Strip Tinning Holdings plc 900 – 900 – n/a n/a 0.78%
Haydale Graphene Industries plc 300 – 300 – n/a n/a 0.26%
Total loan notes 1,200 – 1,200 – 1.04%
Total fixed asset investments 81,056 479 81,535 (6,264)
Current asset investments
FP Octopus UK Micro Cap Growth Fund 8,118 78 8,196 (578) n/a n/a 7.10%
FP Octopus UK Multi Cap Income 3,573 540 4,113 195 n/a n/a 3.56%
FP Octopus UK Future Generations Fund 2,076 (102) 1,974 31 n/a n/a 1.71%
Total current asset investments 13,767 516 14,283 (352) 12.37%
Total fixed and current asset investments 95,818
Money market funds 18,204
Cash at bank 2,296
Debtors less creditors (935)
Total net assets 115,383
Investment portfolio continued
12
Octopus AIM VCT plc Annual report 2025
Top ten holdings
Listed below are the ten largest fixed asset investments by value, which comprise of seven quoted Level 1 investments which are
valued at bid price and three Level 3 investments which are valued in accordance with International Private Equity and Venture Capital
Valuation (IPEV) guidelines (explained further on page 63), as at 28 February 2025.
Hasgrove Limited (unquoted)
Hasgrove is a provider of digital communication services. The company is the owner of Interact, a software company that provides a
range of products and services to improve communication and collaboration within large organisations. The company operates globally
with a growing customer base across Europe, North America and Australia.
Initial investment date:
Cost:
Valuation:
Equity held:
Fair value as a % of NAV:
Last audited accounts:
Revenue:
Profit before tax:
Net assets:
Dividend received in year:
September 2016
£88,000
£8,018,000
2.84%
6.95%
31 December 2023
£37 million
£9.9 million
£13.3 million
£nil
Breedon Group plc
Breedon Group is a supplier of a wide range of materials to the construction industry. Breedon is a leading independent construction
materials group, operating in the UK, Ireland and the USA. The company produces cement, aggregates, asphalt, ready mixed concrete,
Welsh slate and specialist concrete clay products. The company benefited from a series of acquisitions and now employs 4,450 people
with more than 320 operational sites. Breedon’s strategy is to continue growing through organic improvement and consolidation of the
UK’s building materials sector.
Initial investment date:
Cost:
Valuation:
Equity held:
Fair value as a % of NAV:
Last audited accounts:
Revenue:
Profit before tax:
Net assets:
Dividend received in year:
August 2010
£859,000
£6,268,000
0.41%
5.43%
31 December 2024
£1,576.3 million
£125.4 million
£1,170.6 million
£0.2 million
Learning Technologies Group plc
Learning Technologies is a group of businesses who provide innovative learning technology solutions. The company’s businesses are at
the forefront of innovation and best practice in the learning technology sector, and have received numerous awards for their exceptional
performance. Through its portfolio of brands, the company offers large organisations a new approach to digital learning and talent
management. The company benefited from a series of material acquisitions and now has several locations across the UK, Europe, the
United States, Asia-Pacific and South America.
Initial investment date:
Cost:
Valuation:
Equity held:
Fair value as a % of NAV:
Last audited accounts:
Revenue:
Profit before tax:
Net assets:
Dividend received in year:
June 2011
£1,051,000
£4,601,000
0.59%
3.99%
31 December 2023
£562.3 million
£45.6 million
£427.2 million
£0.08 million
learning
technologies
group
Investment Manager’s review continued
13
Octopus AIM VCT plc Annual report 2025
Call us on 0800 316 2295
Popsa Holdings Limited (unquoted)
Popsa is a developer of consumer mobile applications for printing photos in photobooks and other gifting products. The app is now
available in 50 countries around the globe and has been translated into ten different languages. Popsa is a pioneer in the use of narrow AI
technology for the personalised gift market.
Initial investment date:
Cost:
Valuation:
Equity held:
Fair value as a % of NAV:
Last audited accounts:
Revenue:
Loss before tax:
Net assets:
Dividend received in year:
April 2018
£1,590,000
£4,207,000
6.23%
3.65%
31 December 2023
£27.5 million
£0.9 million
£11.2 million
£nil
Netcall plc
Netcall is a UK-based enterprise software company is a leading provider of intelligent automation and customer engagement software and
helps organisations achieve digital transformation by automating workflows and managing customer interactions to enable significant
cost savings and better experiences.
Initial investment date:
Cost:
Valuation:
Equity held:
Fair value as a % of NAV:
Last audited accounts:
Revenue:
Profit before tax:
Net assets:
Dividend received in year:
July 2010
£308,000
£3,346,000
1.79%
2.90%
30 June 2024
£39.1 million
£6.3 million
£40.5 million
£nil
Judges Scientific plc
Judges Scientific specialises in the acquisition and development of a portfolio of scientific instrument businesses. The Group’s companies
are primarily UK based with products sold worldwide to a diverse range of markets including: higher education institutions, manufacturers
and regulatory authorities. The Group is made up of over 20 businesses offering the design, manufacture, and sale of highly specialised
scientific instruments. It has an excellent track record of delivering organic and acquisitive growth. Its approach is to bring profitable
companies with niche products and established reputations under the Group umbrella and provide the environment in which to thrive
and grow.
Initial investment date:
Cost:
Valuation:
Equity held:
Fair value as a % of NAV:
Last audited accounts:
Revenue:
Profit before tax:
Net assets:
Dividend received in year:
March 2005
£236,000
£3,054,000
0.57%
2.65%
31 December 2024
£133.6 million
£13 million
£87.2 million
£0.04 million
Top ten holdings continued
14
Octopus AIM VCT plc Annual report 2025
Investment Manager’s review continued
Top ten holdings continued
Intelligent Ultrasound Group Limited (unquoted)
Intelligent Ultrasound is a UK based ultrasound AI software and simulation business. Working with global leading medical manufacturers
and institutions, Intelligent Ultrasound are a classroom to clinic business with educational and practical applications of their technology.
In the period the business announced the sale of their Clinical AI Business to GE HealthCare for £40.5 million, a demonstration of the
value that had been built. Following this disposal and a strategic review the business was acquired by Surgical Science Sweden AB for
£45.2 million and has delisted.
Initial investment date:
Cost:
Valuation:
Equity held:
Fair value as a % of NAV:
Last audited accounts:
Revenue:
Loss before tax:
Net assets:
Dividend received in year:
August 2019
£2,156,000
£2,796,000
6.18%
2.42%
31 December 2023
£11.2 million
£3.0 million
£9.7 million
£nil
GB Group plc
GB Group is a leading specialist in identity (ID) verification. Recognised as a global leader, GB Group is a technology specialist in
fraud, location and identity data intelligence. Its software helps companies and governments to fight fraud and cybercrime, lower
the cost of compliance and improve the experience for onboarding new customers in today’s digital economy.
Initial investment date:
Cost:
Valuation:
Equity held:
Fair value as a % of NAV:
Last audited accounts:
Revenue:
Loss before tax:
Net assets:
Dividend received in year:
November 2011
£505,000
£2,640,000
0.33%
2.29%
31 March 2024
£277.3 million
£50.4 million
£625.1 million
£0.04 million
Craneware plc
Craneware is the leading provider of optimal operational performance systems and services for the US Healthcare industry. The company
engages in the provision of software and support services for the healthcare industry, and aims to transform healthcare businesses through
its applications and industry-leading team of experts who examine operational, financial, and clinical data to provide valuable insights.
The company’s services and solutions include patient engagement, charge capture and pricing, claims analysis, revenue recovery and
retention, and cost analytics.
Initial investment date:
Cost:
Valuation:
Equity held:
Fair value as a % of NAV:
Last audited accounts:
Revenue:
Loss before tax:
Net assets:
Dividend received in year:
September 2007
£183,000
£2,539,000
0.39%
2.20%
30 June 2024
$189.3 million
$15.7 million
$363.9 million
£0.04 million
15
Octopus AIM VCT plc Annual report 2025
Call us on 0800 316 2295
Top ten holdings continued
Brooks Macdonald Group plc
Leading provider of investment management services, both in the UK and internationally. It offers a range of investment management
services to individuals, pensions funds, institutions, and trusts. The company had £18 billion of Funds Under Management as at the 30 June
2024, and operates from 14 offices across the UK and Channel Islands.
Initial investment date:
Cost:
Valuation:
Equity held:
Fair value as a % of NAV:
Last audited accounts:
Revenue:
Profit before tax:
Net assets:
Dividend received in year:
March 2005
£746,000
£2,419,000
0.95%
2.10%
30 June 2024
£128.3 million
£11.6 million
£152 million
£0.12 million
16
Octopus AIM VCT plc Annual report 2025
Sector analysis
The graph below shows the top ten sectors the equity portfolio was invested in by value as at 28 February 2025. It also shows the sectors of
the AIM market as a whole as at 28 February 2025:
0%
10%
20%
30%
40%
50%
60%
AIM market
AIM VCT plc
Other
1
Industrial Support
Services
Technology Hardware
and Equipment
Investment Banking and
Brokerage Services
Pharmaceuticals
and Biotechnology
Healthcare
Providers
Medical Equipment
and Services
Construction
and Materials
Electronic and
Electrical Equipment
Software and
Computer Services
The graph below shows the top ten sectors the equity portfolio was invested in by value as at 29 February 2024. It also shows the sectors
of the AIM market as a whole as at 29 February 2024:
0%
10%
20%
30%
40%
50%
60%
AIM market
AIM VCT plc
Other
Industrial
Engineering
Technology Hardware
and Equipment
Retailers
Healthcare
Providers
Medical Equipment
and Services
Investment Banking and
Brokerage Services
Construction
and Materials
Pharmaceuticals and
Biotechnology
Electronic and
Electrical Equipment
Software and
Computer Services
1
Other includes Retailers, Aerospace and Defense, Media, Telecommunications Service Providers, General Industrials, Chemicals, Food Producers, Leisure Goods, Travel
and Leisure, Oil, Gas and Coal, Industrial Materials, General Retailers and Industrial Engineering.
17
Octopus AIM VCT plc Annual report 2025
Call us on 0800 316 2295
The Investment Manager
Personal service
Octopus was established in 2000 and has a strong commitment
to both smaller companies and to VCTs. Octopus Investments
Limited also acts as Investment Manager to four other listed
Venture Capital Trusts and has a total of over 13.5 billion of funds
under management. If you have any questions about this report,
or if it would help to speak to one of the fund managers, please
do not hesitate to contact us on 0800 316 2295.
The Quoted Companies team at Octopus comprises:
Freda Isingoma
Freda is the lead manager of the Octopus AIM VCTs. Freda
started her career as an investment analyst at Charterhouse
CCF before joining Close Brothers in 2001 focused on managing
the AIM VCT, inheritance tax and smaller companies portfolios.
In 2008 she moved to South Africa to join Investec Asset
Management, where she co-managed the Africa Fund (a listed
equity portfolio investing across Africa). In 2010 she ventured
into entrepreneurship launching a beauty service brand in
South Africa, and more recently a UK-based art investment
business specialising in providing ecosystem impact solutions
for the African art market. She joined Octopus in January 2022
and is focused primarily on the AIM VCT portfolios. Freda also
provides investment management support across all the Quoted
Companies team products.
Kate Tidbury
Kate is a senior fund manager on the Quoted Companies
team and has over 35 years’ experience within the UK quoted
smaller companies market. Kate started her City career in 1986
as a research analyst with Sheppards and Chase followed by
Panmure Gordon (now Panmure Liberum). From 1993 she was
an Investment Manager responsible for managing ethical and
smaller companies’ funds with the Co-operative Bank and
Colonial First State Investments. In 2000, she joined the AIM team
at Close Brothers Group and was involved in the management of
multiple AIM portfolios including the AIM VCTs. In 2008, she joined
Octopus and is focused primarily on the management of the AIM
VCT portfolios. Kate provides investment management support
across all the Quoted Companies team products.
Mark Symington
Mark is a fund manager on the Quoted Companies team, focusing
predominantly on the Octopus AIM VCTs. Mark joined Octopus
in 2012, having worked previously at asset manager Warwick
Wealth in South Africa. He graduated from the University of Cape
Town in 2010 with a Bcom in Economics and Finance. In addition,
Mark provides analytical and investment management support
across all the Quoted Companies team products.
Martin Jager
Martin is an Investment Analyst on the Octopus Quoted
Companies team, primarily providing analytical and investment
management support across the AIM VCTs as well as assisting on
all wider team mandates. He initially joined Octopus in 2021 as
a member of the Finance team and is a Chartered Accountant
and graduate from the University of Manchester with a degree in
International Management with American Business Studies.
Dominic Weller
Dominic is a senior fund manager on the Quoted Companies
team. He provides analytical and investment support across all
the Quoted Companies team portfolios and co-manages the
FP Octopus UK Future Generations Fund, FP Octopus UK Micro
Cap Growth Fund, FP Octopus UK Multi Cap Income Fund
and the Octopus AIM VCTs. He is a member of the Octopus
Investments Responsible Investment Committee and leads the
team’s stewardship efforts. He is a CFA charterholder.
Richard Power
With overall responsibility for the Quoted Companies team
at Octopus, Richard has over 25 years’ experience of smaller
company investing. He is lead manager of the FP Octopus UK
Micro Cap Growth Fund, also oversees the investment process of
the team which includes the AIM IHT portfolios, and AIM VCTs.
Richard is also a co-manager on the FP Octopus UK Multi Cap
Income and FP Octopus UK Future Generation Funds. Richard
started his career in 1995 at Duncan Lawrie, where he managed a
small companies fund. He subsequently joined Close Brothers to
manage a smaller companies investment trust before moving to
Octopus Investments Limited to head up the Quoted Companies
team in 2004. Richard was awarded Trustnet FE fundinfo Alpha
Manager status in 2022 acknowledging his proven track record.
Chris McVey
Chris is a Senior Fund Manager within the Octopus Quoted
Companies team. He works across all desk portfolios and is
lead manager on the FP Octopus UK Multi Cap Income Fund,
and a co-manager on the FP Octopus UK Micro Cap Growth
and FP Octopus UK Future Generation Funds. He has been a
specialist within the quoted UK Smaller Company market for over
20 years. In 2016 he joined Octopus from Citigroup where he
led the UK Small and Mid-Cap Equity research team focusing
across a variety of sectors. Prior to this he spent almost seven
years on the Smaller Companies team at Gartmore Investment
Management as an analyst and investment manager. Chris was
awarded Trustnet FE fundinfo Alpha Manager status in 2023.
Edward Griffiths
Edward is an experienced portfolio manager, with a City career
spanning over 21 years. Having previously worked at Schroders
Investment Management Pension Funds and State Street, he
joined Octopus Investments in 2004 to launch the Company’s
AIM Inheritance Tax Service. Edward is involved primarily in the
management of the AIM Inheritance Tax Service portfolios for
private individuals and provides investment management and
trading support across all the Quoted Companies team products.
Jessica Bourdon-Pierre
Jessica joined Octopus in 2014 having graduated from the
University of Liverpool the same year, where she studied
International Business. She worked in multiple operations
functions across Octopus, before moving to the Quoted
Companies team in 2018 to co-manage the AIM Inheritance
Tax portfolios. Jessica provides investment and trading support
across all the Quoted Companies team mandates.
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Octopus AIM VCT plc Annual report 2025
Charles Lucas
Charles joined Octopus in 2011 from LV= Asset Management,
having previously worked in the Personal Pensions and SIPP space
for GE Life and LV=. Charles initially joined Octopus as a member
of the operations team, later working as a Project Manager for
MiFID II. He joined the Quoted Companies team as a Product
Development Analyst to enhance trading capabilities and
performance analytics.
Ross MacSween
Ross is a Junior Investment Analyst on the Octopus Quoted
Companies team, primarily providing analytical and investment
management support across the OEIC offerings as well as
assisting on all wider team mandates. He is an Accounting and
Finance graduate from Edinburgh University and initially joined
Octopus in 2022 on a sales and operations rotation programme.
Ben Tyson
Ben is a Product Analyst on the Octopus Quoted Companies team
and is focused on strengthening the team’s trading capabilities,
performance analytics and operational efficiencies. Ben joined
Octopus Investments in 2017, as a member of the operations
team. He joined from PwC’s Investment Management Tax team
and previously worked within the Share Dealing and Share Plans
businesses at Capita. He joined the Quoted Companies team in
December 2023 having moved from the Investment Operations
team where he was a Settlements Subject Matter Expert (SME).
The Investment Manager and responsible
investment
Octopus is an accredited B Corp and signatory to the
internationally recognised Principles for Responsible Investment,
demonstrating its commitment to responsible investment and to
creating a more sustainable financial system.
The investment team make investments that can be a catalyst
for positive, meaningful change. The team believe that in the
future, some of the most successful companies will be a force
for good, and that in today’s hyperconnected transparent world,
how a company behaves is just as important as what it does.
Mission
While the Company doesn’t target specific sustainability goals
or objectives, the team look for companies which will play an
integral role in our future. The purpose of a VCT is to provide
capital for small growth companies. Companies exposed to the
new economy and technologies make up a significant proportion
of the portfolio, which includes those focused on building a
sustainable planet, revitalising healthcare and empowering
people.
Examples of this include:
• Gelion – global energy storage innovator specialising in the
next generation of safe stationary storage technology to
maximise reliable energy storage solutions to stand alone
power systems.
• Mycelx – provider of clean water technology equipment and
related services to the oil and gas, power, marine, and heavy
manufacturing sectors.
• Diaceutics – provider of end-to-end solutions for the launch
of precision medicine diagnostics.
• Learning Technologies – a market leader in the fast-growing
workplace digital learning and talent management market.
Materiality of risks to investments
As part of the investment process, the team incorporate a
material risk review of sustainability issues. These risks include:
• Environmental: emissions, energy management, waste,
ecological impact.
• Social: privacy, security, product quality, selling practices.
• Human: labour, health and safety, diversity.
• Business model: product design, supply chain, material
sourcing.
• Leadership: ethics, competitive behaviour, regulatory, critical
incidents, and risk management.
The Investment Manager considers the exposure to these risks and
how well portfolio companies are managing them. Disclosures
relating to climate risks are set out in ‘climate-related matters’
on page 28.
Responsibility
As part of the investment management approach, the Investment
Manager discusses the portfolio companies’ strategy, financial
performance, data disclosures, capital structure and corporate
governance with the management teams. Existing governance
structures may not be mature (given the small size of portfolio
companies), so the team assess whether weaknesses exist and if
the company management can address these weaknesses. The
team take part in consultations on remuneration and challenge
non-executive directors to align with company objectives,
aiming to influence by giving feedback to corporate advisers and
meeting with non-executive directors and voting on resolutions
at general meetings.
When it comes to voting, all holdings are covered by Institutional
Shareholder Services (ISS), a leading global advisory firm. The
team consider the independent research ISS provides and discuss
votes as a team to create long-term shareholder value.
The Investment Manager continued
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Octopus AIM VCT plc Annual report 2025
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Introduction
The purpose of the report is to provide shareholders with sufficient
information to enable them to assess the extent to which the
Directors have performed their legal duty to act in good faith
and to promote the success of the Company in accordance
with Section 172 of the Companies Act 2006 for the benefit of
shareholders as a whole, as set out in the Strategic Report on
pages 19 and 20. KPIs on performance are on pages 23 and 24.
The directors of a company are required to act in the way they
consider will most likely promote the success of the company for
the benefit of its members as a whole. In doing this, Section 172
requires a director to have regard, amongst other matters, to the:
• likely consequences of any decisions in the long term;
• need to act fairly as between members of the company;
• need to foster the company’s business relationships with
suppliers, customers and others;
• impact of the company’s operations on the community and
environment;
• desirability of the company maintaining a reputation for high
standards of business conduct; and
• interests of the company’s employees.
In discharging the Board’s Section 172 duties regard has been
given to the above factors. The Board also has regard to other
factors where relevant. By considering the Company’s purpose
and objectives together with its strategic priorities and having a
process in place for decision-making, the Board aims to ensure
that decision-making is consistent and predictable.
As a Venture Capital Trust, Octopus AIM VCT plc has no
employees. However, the Directors also assessed the impact of
the Company’s activities on other stakeholders. The Company
considers its shareholders, the Investment Manager, portfolio
companies and other service providers to be its key stakeholders.
Shareholder engagement
Shareholder engagement is given high priority by the Board.
The Company engages with its shareholders via various media
including, but not limited to, the Annual General Meeting (AGM),
the annual and half-year reports and accounts and market
announcements.
The AGM gives shareholders the opportunity to exercise their
right to vote on resolutions and engage with the Board and the
Investment Manager. The voting results from all General Meetings
are published on the Company’s website. The Investment
Manager will give a live presentation to shareholders on the day
of the AGM, which will take place on 23 July 2025.
The Board regularly disseminates information to shareholders,
including a weekly NAV, and through RIS releases on the
London Stock Exchange. Shareholders receive the annual
report and accounts which aims to provide a full understanding
of the Company’s activities and results. This information,
together with the half-yearly reports, prospectus and other
shareholder information, is published via the London Stock
Exchange and on the Investment Manager’s website at
www.octopusinvestments.com.
The Board always welcomes questions from our shareholders at
the AGM. To make sure we are able to respond to any questions
you may have for either the Investment Manager or the Board, we
would request that you please send these via email to
AimAGM@octopusinvestments.com by 5.00pm on 15 July 2025.
Provision 4 of the 2018 UK Corporate Governance Code requires a
company which has received 20% or more of votes cast against
a resolution to explain, when announcing the voting results,
what actions it intends to take to consult shareholders in order
to understand the reasons behind the result. The Company
continues to monitor the 20% threshold for votes cast against
Board recommendations for a resolution but has not yet been
required to take any actions in this regard.
Engagement with the Investment Manager
It is normal practice for Venture Capital Trusts to delegate
authority for day-to-day management of the Company to an
Investment Manager and then to engage with the Investment
Manager in setting, approving and overseeing the execution of
the business strategy and related policies and all administration
and control functions. The Investment Manager attends the
scheduled quarterly Board meetings, and other ad-hoc meetings
as appropriate, of the Company, ensuring an open dialogue.
At every Board meeting a review of financial and operational
performance, as well as legal and regulatory compliance, is
undertaken. The Board also reviews other areas over the course
of the financial year including the Company’s business strategy;
key risks; stakeholder-related matters; diversity and inclusivity;
environmental matters; corporate responsibility; and governance,
compliance and legal matters. The Board formally reviews the
performance of the Investment Manager on an annual basis. This
is done by all Board members completing an annual questionnaire
and discussing the outcome before concluding.
Engagement with portfolio companies
The Company’s performance is directly linked to the performance
of its underlying portfolio companies. The Board has delegated the
monitoring of its portfolio companies to the Investment Manager
which engages with portfolio companies through a programme
of regular company meetings as part of its investment process.
The Board has also given the Investment Manager discretionary
authority to vote on portfolio company resolutions on its behalf
as part of its approach to corporate governance.
Section 172 statement
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Octopus AIM VCT plc Annual report 2025
Engagement with other key stakeholders and
environment
The Investment Manager is the Company’s key business partner,
with responsibility for the provision of investment management,
administration, custody and company secretarial services.
During the period, the Board received sufficient information to
assist in understanding the interests and views of the Company’s
key stakeholders; investors, portfolio companies and service
providers to the Company, including the auditor, lawyers
and registrar.
The Board recognises the importance of responsible investment
and the Octopus Group, of which the Investment Manager forms
a part, certified as a B Corp in February 2021. B Corp certification
is a designation that a business is meeting high standards of
verified performance, accountability and transparency on factors
from employee benefits and charitable giving to supply chain
practices and input materials. Certified B Corps are recognised
as leaders in the global movement for an inclusive, equitable and
regenerative economy.
The Investment Manager is continuing to develop processes and
practices that deliver on its approach to responsible investment,
as set out in the responsible investment policy. This includes the
development and implementation of internal processes and
checks in line with the UN Principles for Responsible Investing
(UNPRI). The Investment Manager will continue to monitor
the ESG practices of existing portfolio companies and over
the coming year we will review our portfolio to confirm our
compliance with these expectations. An example of this is the
ongoing assessment of the carbon emission levels of companies
within the portfolio, and their progression towards furthering
sustainability and environmental goals regarding net zero
ambition and decarbonisation.
Key decisions made during the year
Some of the key decisions made by the Company during the year
that required the Board to take into consideration Section 172(1)
factors include:
• In line with the Company’s objectives, on 23 September 2024,
the Board issued an offer for subscription of shares. This was
discussed with the Investment Manager, and allowed new
and existing shareholders to invest in the Company.
• The Company continued to buy back shares, providing
liquidity to shareholders who wished to sell their shares. The
Board maintained a discount of approximately 4.1% to NAV,
therefore balancing the interests of both remaining and
selling shareholders.
• The Board looks to create shareholder value. During the
year, following targets agreed with the Investment Manager,
dividends totalling 9.9p were paid to shareholders (comprising
a final dividend of 2.5p and special dividend of 4.9p in respect
of the previous financial year, and an interim dividend of 2.5p
in respect of this financial year).
Section 172 statement continued
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Octopus AIM VCT plc Annual report 2025
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The Company’s objective
The objective of the Company is to invest in a broad range of
Alternative Investment Market (AIM) or Aquis Stock Exchange
(AQSE) (previously known as New Securities Stock (NEX)
Exchange) traded companies in order to provide shareholders
with attractive tax-free dividends and long-term capital
growth. Investments are made selectively across a range of
sectors in qualifying companies that have the potential to grow
and enhance their value.
The Company has been approved as a Venture Capital Trust by
HMRC under Section 259 of the Income Taxes Act 2007. The shares
of the Company were first admitted to the Official List of the UK
Listing Authority and trading on the London Stock Exchange on
17 March 1998 and can be found under the TIDM code ‘OOA’. The
Company is premium listed.
Investment policy
The Company’s investment policy has been designed and
updated to ensure continuing compliance with the VCT qualifying
conditions. The Board intends that the long-term disposition
of the Company’s assets will be at least 85% in a portfolio of
qualifying AIM, AQSE traded investments or unquoted companies
where the management views an initial public offering (IPO) on
AIM or AQSE as a short-to medium-term objective.
The non-qualifying balance (approximately 3.5% of its net assets)
will be invested in permitted investments held for short-term
liquidity, generally comprising short-term cash or money market
deposits with a minimum Moody’s long-term debt rating of ‘A’.
A proportion of the balance can be invested in funds managed
by Octopus or other direct equity investments. This provides
a reserve of liquidity which should maximise the Company’s
flexibility as to the timing of investments, disposals, dividend
payments and share buybacks.
Risk is spread by investing in a number of different businesses
across a range of industry sectors. The maximum amount
invested in any one company is limited to the amount permitted
pursuant to VCT legislation in a fiscal year and no more than 15%
of the company as measured by HMRC value. The value of an
individual investment is expected to increase over time as a result
of trading progress and a continuous assessment is made of its
suitability for sale. However, shareholders should be aware that
the Company’s qualifying investments are held with a view to
long-term capital growth as well as income and will often have
limited marketability; as a result it is possible that individual
holdings may grow in value, to the point where they represent a
significantly higher proportion of total assets prior to a realisation
opportunity being available.
The Company’s Articles permit borrowings of amounts up to
10% of the adjusted share capital and reserves (as defined in
the Company’s Articles). However, investments will normally be
made using the Company’s equity shareholders’ funds and it is
not intended that the Company will take on any borrowings.
No material changes may be made to the Company’s
investment policy described above without the prior approval
of shareholders by the passing of an Ordinary Resolution. The
Directors will continually monitor the investment process and
ensure compliance with the investment policy.
Future prospects
The Company’s longer-term performance record has allowed the
Company to maintain the dividend payments to shareholders
in line with the dividend policy set out on page 2. This policy
is to target an annual dividend of 5.0p or 5% of the year-end
share price, whichever is greater at the time. We have seen
another year of uncertainty due to the cost of living crisis and
the unstable economic environment, compounded by recent
actions of the US administration, and the Company performed
marginally less well than the FTSE AIM All-Share Index. The
FTSE All-Share performed better due to large financial services,
pharmaceutical, aerospace and defence companies. However,
the Company has a strong cash position which enables us
to invest in new companies and support existing companies.
The outlook statements in both the Chair’s Statement and the
Investment Manager’s Review on pages 3 and 8 respectively
provide further details on the more immediate prospects of
the Company.
Performance
The Board is responsible for the Company’s investment strategy
and performance, although the management of the Company’s
investment portfolio is delegated to Octopus through the
investment management agreement, as referred to in the
Directors’ Report.
The graph on the following page compares the total return of
the Company over the period from February 2005 to February
2025 with the total return from notional investments in the FTSE
All-Share Index, FTSE AIM All-Share Index and FTSE SmallCap
(excluding investment companies) Index over the same period.
The FTSE AIM All-Share Index is a stock market index consisting
of all companies quoted on the Alternative Investment Market
and the FTSE SmallCap Index is an index of small market
capitalisation companies. The Directors consider these to be
the most appropriate benchmarks but would remind investors
that approximately 16.5% of the FTSE AIM All-Share Index is
attributable to resources, investment vehicles and property
sector stocks in which VCTs cannot invest. VCTs are also limited
to investing in companies with certain size and age restrictions.
The inclusion of the FTSE All-Share Index is to provide a wider stock
market context. Investors should be reminded that shares in VCTs
generally continue to trade at a discount to the NAVs.
Business review
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Octopus AIM VCT plc Annual report 2025
Octopus AIM VCT plc – Portfolio performance
400
380
360
340
320
300
280
260
240
220
200
180
160
140
120
100
80
60
40
20
Value of £100 investment (£)
NAV return + reinvestment of all dividends (net of upfront tax relief), based on notional investment of
£100 on 1 March 2005
FTSE All-Share total return, based on £100 notional investment on 1 March 2005 and the reinvestment of all income
FTSE SmallCap ex investment trusts total return, based on £100 notional investment on 1 March 2005 and
the reinvestment of all income
FTSE AIM All-Share total return, based on £100 notional investment on 1 March 2005 and the reinvestment of all income
Feb 05
Feb 06
Feb 07
Feb 08
Feb 09
Feb 10
Feb 11
Feb 12
Feb 13
Feb 14
Feb 15
Feb 16
Feb 17
Feb 18
Feb 19
Feb 20
Feb 21
Feb 22
Feb 23
Feb 24
Feb 25
Business review continued
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Octopus AIM VCT plc Annual report 2025
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Results and dividend
Year ended
28 February 2025
£’000
Year ended
29 February 2024
£’000
Net loss attributable to shareholders
(6,079)
(17,734)
Distributions:
Interim dividend paid – 2.5p (2024: 2.5p)
5,591
5,075
Special dividend paid – nil (2024: 4.9p)
–
9,934
Proposed final dividend – 2.5p (2024: 2.5p)
5,704
5,068
The proposed final dividend of 2.5p for the year ended 28 February 2025 will be paid on 28 August 2025 to shareholders on the register
on 1 August 2025 subject to approval at the AGM. The above proposed final dividend is based on the number of shares in issue at the
date of this report.
Key Performance Indicators (KPIs)
As a VCT, the Company’s objective is to provide shareholders with attractive dividends and capital return by investing its funds in a
broad spread of predominantly quoted UK companies which meet the relevant criteria for VCTs.
The Board has identified five key performance measures to assess the Company’s success in meeting these objectives. Some of these
are classified as alternative performance measures (APMs
1
) in line with Financial Reporting Council (FRC) guidance. The glossary of
terms on page 75 has further details:
1. NAV per share;
2. total return per share;
3. dividends per share payable in respect of the year;
4. ongoing charges; and
5. qualifying % under VCT rules.
1. NAV per share
The NAV per share of the Company is the sum of the underlying assets less the liabilities of the Company divided by the total
number of shares in issue.
Current year
(pence per share)
Prior year
(pence per share) Reason for movement
50.6 63.3 The NAV per share has decreased from last year’s value of 63.3p to 50.6p.
This fall of 20% is largely the result of dividends paid in the period and a
downward valuation of investments.
2. Total return per share
1
Total return is calculated as movement in NAV per share in the period plus dividends paid in the period, divided by the NAV per
share at the beginning of the period. Total return per share enables shareholders to evaluate more clearly the performance of
the Company, as it reflects the underlying value of the portfolio at the reporting date. This is the most widely used measure of
performance in the VCT sector.
Current year % Prior year % Reason for movement
(4.4) (13.0) As previously considered, the NAV per share has decreased from last
year’s value of 63.3p to 50.6p. This gave a total negative return of 4.4%
or 2.8p per share, after adding back dividends of 9.9p paid in the year.
1
These KPIs are defined as alternative performance measures (APMs) and are defined in more detail in the Glossary of Terms on page 75.
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Octopus AIM VCT plc Annual report 2025
The Board notes that for the year under review this was behind the FTSE AIM All-Share Index total return figure of a negative 2.6%.
The Board remains confident about achieving the long-term objective of the Company. Performance is also measured against
the FTSE SmallCap Index and the FTSE All-Share Index, with the latter being provided for wider stock market context. This is also
shown on the graph on page 22. In the year under review the FTSE SmallCap Index (excluding investment companies) rose by 10.7%
and the FTSE All-Share Index rose by 18.4%, all on a total return basis. These indices have been adopted as comparative indices.
Further details on performance can be found within the Investment Manager’s Review on pages 4 to 16.
3. Dividends per share payable in respect of the year
The Company has a target of paying an annual dividend of 5.0p per share, or a 5% yield excluding special dividends, on the year-
end share price, whichever is greater at the time.
Current year
(pence per share)
Prior year
(pence per share) Reason for movement
5.0 9.9 Last year the Company declared ordinary dividends of 5.0p per share and
4.9p per share of special dividend. This year the Company has declared
ordinary dividends of 5.0p per share and no special dividend.
The 5.0p dividends declared in respect of the year gives an annual yield of 10.5% based on the year-end share price of 47.8p,
exceeding the Board’s target of a 5% yield. Dividends will be paid semi-annually. It is the Board’s current policy to pay a minimum
annual dividend of 5.0p per share or a 5% yield based on the year-end share price, whichever is the greater, subject to available
cash and distributable reserves. However, this is not a guarantee, and no projection or forecast is expressed or implied.
4. Ongoing charges
1
The ongoing charges ratio has been calculated using the AIC recommended methodology and excludes exceptional costs and trail
commission. The ratio is calculated by expressing ongoing charges for the year as a percentage of average net asset value during
the year.
Current year % Prior year % Reason for movement
2.3 2.1 The ongoing charges ratio has increased from the previous year due to
decreased average net assets over the period combined with broadly
comparable expenses to last year.
The ongoing charges of the Company for the year to 28 February 2025 is in line with the Board expectations. The expenses incurred
by the Company are summarised in notes 3 and 4 to the financial statements on pages 59 and 60.
5. Qualifying % under VCT rules
The Company must comply with VCT legislation laid down by HMRC. A key requirement is to maintain at least an 80% qualifying
investment level.
Current year % Prior year % Reason for movement
85.1 86.0 85.1% (as measured by HMRC rules) by value of the Company’s
investments was represented at the end of the period by shares or
securities comprised in qualifying holdings of the Company. The
qualification level decreased by 0.9%, though remains comfortably above
the 80% requirement. Further details on VCT regulations can be found
within the Investment Manager’s Review on page 8.
The Company has continued to meet the 80% qualification investment level. There continues to be sufficient investment
opportunities to enable the Investment Manager to comply with these ratios.
The Chair’s Statement, on pages 2 and 3, includes a review of the Company’s activities and future prospects; further details are
also provided within the Investment Manager’s Review on pages 4 to 16.
1
These KPIs are defined as alternative performance measures (APMs) and are defined in more detail in the Glossary of Terms on page 75.
Business review continued
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Octopus AIM VCT plc Annual report 2025
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Viability statement
In accordance with provision 4.31 of the UK Corporate Governance
Code 2018, the Directors have assessed the prospects of the
Company over a longer period than the twelve months required
by the ‘going concern’ provision. The Board conducted this
review for a period of five years, which was considered to be a
reasonable time horizon given that the Company has raised funds
under an offer for subscription which closed to new applications
on 27 March 2025 and, 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 the Company’s strategy, including investor demand for
the Company’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 the Company and its current position.
This includes the impact of the cost of living crisis, the unstable
economic environment and any other risks which may adversely
impact its business model, future performance, solvency or
liquidity. 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 on
the following pages.
The Board has also considered the liquidity of the underlying
investments and the Company’s cash flow projections
considering the material inflows and outflows of the Company
including investment activity, buybacks, dividends and fees and
found these to be realistic and reasonable. The Company’s cash
flow includes cash equivalents which are short-term, highly liquid
investments.
Based on the above assessment the Board confirms that it has
a reasonable expectation that the Company will be able to
continue in operation and meet its liabilities as they fall due over
the five-year period to 28 February 2030.
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Octopus AIM VCT plc Annual report 2025
Principal risks, risk management and regulatory environment
In accordance with the UK Listing Rules under which the Company operates, the Board is required to comment on the potential risks
and uncertainties which could have a material impact on the Company’s performance.
The Board carries out a review of the risk environment in which the Company operates. The main areas of risk identified by the Board
are as follows:
Risk Mitigation
Investment performance: The focus of the
Company’s investments is into VCT qualifying
companies quoted on AIM and the AQSE, which
by their nature entail a higher level of risk and
lower liquidity than investments in larger quoted
companies.
The Investment Manager has significant experience and a strong track record
of investing in AIM and AQSE companies, and appropriate due diligence
is undertaken on every new investment. The overall risk in the portfolio is
mitigated by maintaining a wide spread of holdings in terms of financing stage,
age, industry sector and business models. The Board reviews the investment
portfolio with the Investment Manager on a regular basis.
VCT qualifying status risk: The Company is
required at all times to observe the conditions
for the maintenance of HMRC approved VCT
status. The loss of such approval could lead to
the Company and its investors losing access
to the tax benefits associated with VCT status
and, in certain circumstances, to investors being
required to repay the initial income tax relief
on their investment. The ability of the fund to
invest is dependent on the pipeline of qualifying
investments.
Prior to investment, the Investment Manager seeks assurance from the
Company’s VCT status adviser that the investment will meet the legislative
requirements for VCT investments.
On an ongoing basis, the Investment Manager monitors the Company’s
compliance with VCT regulations on a current and forecast basis to ensure
ongoing compliance with VCT legislation. Regular updates are provided to the
Board throughout the year.
The VCT status adviser formally reviews the Company’s compliance with VCT
regulations on a bi-annual basis and reports their results to the Board.
Operational risk: The Board is reliant on the
Investment Manager to manage investments
effectively, and manage the services of
a number of third parties, in particular
the registrar and tax advisers. A failure of
the systems or controls at the Investment
Manager or third-party providers could lead
to an inability to provide accurate reporting
and to ensure adherence to VCT and other
regulatory rules.
The Board reviews the system of internal control, both financial and non-
financial, operated by the Investment Manager (to the extent the latter are
relevant to the Company’s internal controls). These include controls that are
designed to ensure that the Company’s assets are safeguarded, that proper
accounting records are maintained, and that regulatory reporting requirements
are met. Feedback on other third parties is reported to the Board on at least an
annual basis, including adherence to Service Level Agreements where relevant.
Information security: A loss of key data could
result in a data breach and fines. The Board is
reliant on the Investment Manager 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. The Investment Manager has a dedicated
information security team 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 Investment Manager reports to the Board on an annual basis
to update them on relevant information security arrangements. Significant
and relevant information security breaches are escalated to the Board when
they occur.
Economic: Events such as an economic recession,
movement in interest rates, inflation, political
instability and rising living costs could cause
volatility in the market, adversely impacting the
valuation of investments. This could result in a
reduction in the value of the Company’s assets.
The Company invests in a diverse portfolio of companies across a range of
sectors, which helps to mitigate against the impact of performance in any one
sector. The Company also maintains adequate liquidity to make sure it can
continue to provide follow-on investment to those portfolio companies which
require it and which is supported by the individual investment case.
The Investment Manager monitors the impact of macroeconomic conditions
on an ongoing basis and provides updates to the Board at least quarterly.
Risk and risk management
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Octopus AIM VCT plc Annual report 2025
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Legislative: A change to the VCT regulations
could adversely impact the Company by
restricting the companies the Company can
invest in under its current strategy. Similarly,
changes to VCT tax reliefs for investors could
make VCTs less attractive and impact the
Company’s ability to raise further funds.
Failure to adhere with other relevant legislation
and regulation could result in reputational
damage and/or fines.
The Investment Manager engages with HM Treasury and industry bodies to
demonstrate the positive benefits of VCTs in terms of growing UK companies,
creating jobs and increasing tax revenue, and to help shape any change to
VCT legislation.
The Investment Manager employs individuals with expertise across the legislation
and regulation relevant to the Company. Individuals receive ongoing training
and external experts are engaged where required.
Liquidity/cash flow risk: The risk that the
Company’s available cash will not be sufficient
to meet its financial obligations. The Company
invests in smaller companies, which are inherently
less liquid than stocks on the main market.
Therefore, these may be difficult to realise for
their fair market value at short notice.
The Investment Manager prepares cash flow forecasts to make sure cash
levels are maintained in accordance with policies agreed with the Board.
The Company’s overall liquidity levels are monitored on a quarterly basis by
the Board, with close monitoring of available cash resources. The Company
maintains sufficient cash and readily realisable securities, including money
market funds and OEICs, which can be accessed at short notice. As at 28
February 2025, 17.8% of net assets were held in cash and cash equivalents and
12.4% in OEICs, realisable in seven business days.
Valuation risk: For smaller companies or illiquid
shares, establishing a fair value can be difficult
due to the lack of readily available market data
for similar shares, resulting in a limited number of
external reference points.
Investments in companies traded on AIM and AQSE are valued by the
Investment Manager using closing bid prices as reported on Bloomberg. Where
investments are in unquoted companies or where there are indicators bid price
is not appropriate, alternative valuation techniques are used in accordance
with the IPEV guidelines.
Valuations of unquoted portfolio companies are performed by appropriately
experienced staff, with detailed knowledge of both the portfolio company and
the market in which it operates. These valuations are then subject to review and
approval by the Octopus Valuations Committee, comprised of staff who are
independent of the Investment team and with relevant knowledge of unquoted
company valuations. The Board reviews valuations after they have been agreed
by the Octopus Valuations Committee.
Investment in FP Octopus UK Micro Cap Growth Fund, FP Octopus UK Multi
Cap Income Fund and FP Octopus UK Future Generations Fund are all valued
with reference to the daily prices which are published by Fund Partners, the
Authorised Corporate Director.
Emerging risks
The Board has considered emerging risks. The Board seeks to mitigate emerging risks and those noted below by setting policy, regular
review of 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 that the Board and the Investment Manager are currently monitoring:
• Geo-political protectionism.
• Climate change.
Principal risks, risk management and regulatory environment (continued)
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Octopus AIM VCT plc Annual report 2025
Gender and diversity
The Board of Directors currently comprises two female and two male Non-Executive Directors with considerable experience of the VCT
industry and a broad range of skills and backgrounds. All appointments to the Board are made on the basis of ability and knowledge.
The composition of the Board, including gender and diversity, is reviewed on an annual basis. As at 28 February 2025, the Company
has not met the UK Listing Rule 6.6.6R (9)(a) target for the Board to have at least one member from a minority ethnic background
during the year. The Board believes in the value and importance of diversity in the boardroom, including ethnic diversity, but seeks to
recruit directors whose total attributes best fit the needs of the Board at the time of recruitment.
In line with UK Listing Rule 6 Annex 1 R, the below tables in the prescribed format, show the gender and ethnic background of the
Directors as at 28 February 2025.
Gender identity or sex
Number of
Board members
Percentage of
the Board
Number of senior
positions on the
Board (CEO, CFO,
SID and Chair)
Men 2 50% Not applicable
Women 2 50%
Not specified/prefer not to say — —
Ethnic background
Number of
Board members
Percentage of
the Board
Number of senior
positions on the
Board (CEO, CFO,
SID and Chair)
White British or other White
(including minority white groups)
4 100% Not applicable
Mixed/Multiple Ethnic Groups — —
Asian/Asian British — —
Black/African/Caribbean/Black British — —
Other ethnic group — —
Not specified/prefer not to say — —
As at 28 February 2025, the Board comprised four Directors. The gender breakdown is as follows: two (50% female); two (50% male).
All four Directors identify as White British or other White (including minority White groups).
Whilst the Board ensures that all appointments are made on merit and that any Board vacancies are filled by the most qualified
candidates, the Board supports the recommendations for senior positions to be held by female directors and for ethnic representation
on the Board, both matters will be considered when assessing the Board’s succession plan.
As the Company is externally managed, it has no executive staff and therefore does not have a CEO or CFO, both roles are deemed
as senior Board positions by the FCA. The Chair and Chair of the Audit Committee are considered senior Board positions, with both
currently held by a male. However, a female Director will be taking over as Chair with effect from the conclusion of the AGM to be
held on 23 July 2025.
Employee, human rights, social and community issues, environment policy and greenhouse
gas emissions
The Board’s policy on employee, human rights, social and community issues, environment policy and greenhouse gas emissions is
discussed in the Directors’ Report on page 33.
Risk and risk management continued
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Octopus AIM VCT plc Annual report 2025
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Climate-related matters
Octopus has chosen to continue evolving its responsible investment disclosures in alignment with industry-recognised regulatory and
reporting frameworks, such as the Task Force on Climate Related Financial Disclosures (TCFD). Importantly, due to its structure, the
Company is voluntarily disclosing this information, as opposed to it being a mandated ‘in-scope’ fund. In alignment with the spirit
of the TCFD framework, some initial disclosures have been outlined under the categorisations below, but do not cover the full set of
requirements as per the TCFD framework. Future changes are anticipated as regulatory and reporting frameworks continue to evolve.
• Governance: Day-to-day management of the portfolio, and oversight of investment decisions, sits within the Investment
Manager’s governance structures.
• Strategy: The Company makes investments in a range of sectors but the companies receiving funding are small companies
primarily listed on AIM. Exposure to climate-related risks is assessed on a deal-by-deal basis by the Investment Manager. The
analysis considers transition risks and the physical risks and impacts of climate change for industries and sectors where this has
been identified as a material issue. The Investment Manager is also focused on identifying investment opportunities in companies
that are well positioned to benefit from the transition to a lower carbon economy.
• Risk management: The investment team use guidance from the Sustainability Accounting Standards Board (SASB) to identify
climate-related risks. Where potential material climate-related risks have been identified, the Investment Manager assesses how
well the risk is managed by the Company through further due diligence.
• Metrics: Where relevant for the industry and sector, the team review metrics reported by the Company to understand material
exposures, how they are being managed and Company performance. This includes areas such as energy management, energy
use, carbon footprint disclosures and commitments to appropriate carbon reduction pathways for the sector and industry.
On an aggregated level, the Company’s most material climate risk relates to carbon emission; this is due to the underlying
portfolio companies having to adapt their business models to successfully transition to a lower/zero carbon footprint. As such, the
Investment Manager has taken steps to measure Scope 1, 2 and 3 greenhouse gas emissions. Scope 1 emissions are those directly
from company-owned and controlled resources. Scope 2 emissions are indirect emissions from the generation of purchased
energy, from a utility provider. Scope 3 emissions are all indirect emissions, not included in Scope 2.
While the ultimate goal is to reduce portfolio emissions to minimise these risks, the immediate goal is to increase data coverage
to 100% within the next year. The data coverage is currently 86% (2024: 80%), however, 68% of this data is modelled by ISS
instead of reported by the companies in their annual or sustainability reports. We will engage with the companies to report on
their emissions, to allow for more accurate data, and encourage them to set targets. Furthermore, Octopus Group are in the
process of submitting Science-Based targets using guidance from the Science-Based Targets initiative (SBTi). Therefore, engaging
with the Company to reduce emissions forms part of the Octopus Group targets. Given the intricate modelling, lack of data and
calculations involved, we regard the analysis as indicative. Current greenhouse gas (GHG) emissions:
Metrics for equity holdings
AIM VCT plc
28/02/2025
AIM All-Share
28/02/2025
Variance to index
28/02/2025
Scope 1 & 2 emissions (tCOe) 5,331 12,560 (58%)
Scope 3 emissions (tCOe) 6,553 40,419 (84%)
Scope 1 & 2 footprint (tCOe/mGBP invested) 46 109 (58%)
Scope 1 & 2 weighted average carbon intensity (tCOe/mGBP revenue) 168 102 66%
Percentage of issuer emission data coverage (including estimates) 87% 67% 31%
Scope 1 & 2 and Scope 3 Emissions for the Company are calculated as the sum of a proportion of each portfolio companies total
emissions, equal to the percentage holding in the company. The emissions for the Index have been calculated in the same way using
the relative weight to the index. This has been indexed to the size of the Company to make these more directly comparable based on
mix of companies rather than size.
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Octopus AIM VCT plc Annual report 2025
Consumer Duty
The Directors are aware of the Investment Manager’s obligations to comply with the FCA’s Consumer Duty rules and principles which
came into force in 2023. Firms subject to Consumer Duty must ensure they are acting to deliver good outcomes for consumers and
that this is reflected in their strategies, governance, leadership, and policies. The Investment Manager undertook a review of its
practices to identify and uplift areas of its operations in order to comply with the Consumer Duty principles which concluded ahead of
the Consumer Duty principles coming into force. The Company is not directly captured by Consumer Duty, however the Directors will
receive updates from the Investment Manager in order to monitor how the Investment Manager is meeting its obligations.
The Strategic Report was approved on behalf of the Board by:
Neal Ransome
Chair
20 June 2025
Risk and risk management continued
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Octopus AIM VCT plc Annual report 2025
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The Board comprises four Directors, all of whom are independent
of the Investment Manager. The Directors operate in a non-
executive capacity and are responsible for overseeing the
investment strategy of the Company. The Board has wide
experience of investment in both smaller growing companies and
larger quoted companies. All Directors are members of the Audit
Committee.
Neal Ransome (Chair)
Neal Ransome is a chartered accountant and was a partner at
PwC from 1996 to 2013. He was Chief Operating Officer of PwC’s
Advisory business and led its Pharmaceutical and Healthcare
Corporate Finance practice. Neal was formerly a director of
Quercus (General Partner) Limited, a unit trust invested in
healthcare properties, and Parity Group Plc, an AIM-listed
professional services company. He is currently non-executive
chair of Proven VCT plc, which invests in unquoted companies,
and a non-executive director of Polar Capital Global Healthcare
Trust Plc. He is also a trustee and director of the Conservation
Volunteers, a UK charity dedicated to connecting people and
green spaces. Neal became a Director of the Company in 2016
and was appointed as Chair of Octopus AIM VCT plc in 2021.
Neal will be retiring from the Board at the conclusion of the AGM
on 23 July 2025.
Joanne Parfrey
Joanne Parfrey has a degree in Chemistry from Oxford University
and is an accountant by training. Joanne spent a number of
years in corporate finance with BOC Group plc and Elementis plc
before moving to private equity in 2000, joining LGV Capital. She
was formerly a non-executive director of Guy’s and St Thomas’
Enterprises Limited and Essentia Trading Limited. She is currently
chair of Babraham Research Campus Limited, a non-executive
of the Worldwide Healthcare Trust plc, audit chair of Henderson
International Income Trust plc and audit chair of Ieso Digital
Health Limited. Joanne became a Director of the Company in
2016, and will become Chair of the Company after the conclusion
of the AGM on 23 July 2025.
Andrew Boteler
Andrew Boteler is a chartered accountant and was formerly Chief
Financial Officer of Gooch & Housego plc and Finance Director
of Riverford Organic Farmers Limited, one of the largest organic
fresh food retailers in the UK. In July 2021 Andrew became a
non-executive director of LungLife AI, Inc and holds the positions
of chair of the audit committee, chair of the remuneration
committee and senior independent director. Andrew has over
25 years’ experience working in the manufacturing sector, the last
19 being spent with high technology manufacturing companies.
Andrew became a Director of the Company in 2020 and was
appointed Chair of the Audit Committee in 2021.
Louise Nash
Louise Nash was a UK Small and Mid-Cap Fund Manager for
16 years, initially with Cazenove Capital and subsequently with
M&G Investments. She also held the position of non-executive
director at Stockdale Securities. She is currently a non-executive
director and Senior Independent Director at BlackRock
Throgmorton Trust plc. In addition, she is involved in the family
wine business, Höpler, and provides consultancy services for JLC
Investor Relations. Louise became a Director of the Company
in 2024.
Details of Directors
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Octopus AIM VCT plc Annual report 2025
Directors’ report
The Directors present their report and the audited financial
statements for the year ended 28 February 2025. The Corporate
Governance Report on pages 36 to 39 and the Audit Committee
Report on pages 40 and 41 form a part of this Directors’ Report.
The Directors consider that the annual report and accounts, taken
as a whole, is fair, balanced and understandable and provides the
information necessary for shareholders to assess the Company’s
position, performance, business model and strategy.
Directors
Brief biographical notes on the Directors are given on page 31.
In accordance with the Articles of Association of the Company
and the Association Investment Companies Code of Corporate
Governance, Mr Boteler, Ms Parfrey and Ms Nash will retire as
Directors at the forthcoming AGM, and being eligible, offer
themselves for re-election. As announced previously, Neal
Ransome will be retiring from the Board on the conclusion of
the business of the 2025 AGM. Following a formal performance
evaluation as part of the Board evaluation, the Board believes
that all the Directors continue to be effective Non-Executive
Directors, providing considerable experience and continuity to
the Company and demonstrating commitment to their roles.
In addition the Board has discussed succession planning, and
further details of both of these matters can be found on page 37.
Directors’ and officers’ liability insurance
The Company has, as permitted by s236 of the Companies Act
2006, maintained insurance cover on behalf of the Directors and
Secretary indemnifying them against certain liabilities which may
be incurred by them in relation to the Company.
VCT regulations
Compliance with required rules and regulations is considered
when all investment decisions are made. The Company is further
monitored on a continual basis to ensure compliance. The main
criteria which the Company must adhere to are detailed on
page 72.
The Company intends to continue to comply with the qualification
requirements.
Going concern
The Company’s business activities and the factors likely to affect
its future development, performance and position are set out
in the Chair’s Statement on pages 2 and 3 and the Investment
Manager’s Review on pages 4 to 16. Further details on the
management of financial risk may be found in the Business
Review on page 21 and in note 16 to the financial statements.
The Board receives regular reports from the Investment Manager
and the Directors have a reasonable expectation that the
Company has adequate resources to continue in operational
existence for a period of at least twelve months from the date
of approval of the financial statements. As discussed in the
Viability Statement on page 25, the Directors have considered
the Company’s cash flow projections in a range of scenarios,
including both continuation of normal levels of fundraising as well
as potential no fundraise scenarios. In all scenarios the Board is
confident in the ability of the Company to maintain its VCT status
and meet liabilities as they fall due. Some of the ways in which
the Board could manage the operations of the Company include
adjusting investment strategy and careful consideration of non-
committed cash outflows, including dividends and buybacks.
They are satisfied that no material uncertainties leading to
significant doubt about going concern have been identified. It
is appropriate to continue to adopt the going concern basis in
preparing the financial statements.
The assets of the Company include securities, a large proportion
of which are readily realisable and, accordingly, the Company
has adequate financial resources to continue to satisfy the
expenses of commitments under share buybacks and to remain
in operational existence for a period of at least twelve months.
A resolution will be put to the Company’s AGM to approve the
Company continuing as a venture capital trust. A continuation
vote has been approved annually since 2011.
The outlook and future prospects of the markets have been
considered as part of the Investment Manager’s review.
Dividend
The proposed final dividend of 2.5p for the year ended
28 February 2025 will be paid on 28 August 2025 to shareholders on
the register on 1 August 2025, subject to approval by shareholders
at the AGM being held on 23 July 2025, as set out in the Strategic
Report.
Management
The Company has in place an agreement with Octopus to act
as Investment Manager which is central to the ability of the
Company to continue in business. The principal terms of the
Company’s management agreement with Octopus are set out
in note 3 to the financial statements. The Investment Manager
also provides secretarial, administrative and custodian services
to the Company. Octopus is not entitled to any performance fee.
There are no other contracts which are deemed to be essential to
the business of the Company.
As required by the UK Listing Rules, the Directors confirm that,
in their opinion, the continuing appointment of Octopus as
Investment Manager is in the best interest of the shareholders
as a whole. In reaching this conclusion the Directors have taken
into account the performance of the investment portfolio and
the ability of the Investment Manager to produce satisfactory
investment performance in the future. No Director has an interest
in any contract to which the Company is a party.
The Board has delegated the routine management of decisions,
such as the payment of running costs, to Octopus. Investment
decisions are discussed with the Board.
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Octopus AIM VCT plc Annual report 2025
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Whistleblowing
The Board has considered the arrangements implemented by
the Investment Manager to encourage staff of the Investment
Manager or Company Secretary of the Company to raise
concerns, in confidence, within their organisation about possible
improprieties in matters of financial reporting or other matters.
It is satisfied that adequate arrangements are in place to allow
an independent investigation, and follow-on action where
necessary, to take place within the organisation.
Employee, human rights, social and community
issues
The Board seeks to conduct the Company’s affairs responsibly.
The Company is required by company law to provide details of
employee, human rights, social and community issues, including
information about any policies it has in relation to these matters
and the effectiveness of such policies. As an externally managed
investment company with no employees the Company does not
maintain specific policies in relation to these matters.
Environment policy and greenhouse gas
emissions
The day-to-day operations of the Company are outsourced to
the Investment Manager, and consequently the Company does
not have its own environmental policy, relying instead on the
Investment Manager’s environmental strategy. The Company
does, however, recognise the importance of conducting its
business, including investment decisions, in a manner that is
environmentally responsible. The Company does not produce
any reportable emissions as the fund management is outsourced
to Octopus with no physical assets or property held by the
Company. As the Company has no employees or operations,
it is not responsible for any direct emissions, and as it uses less
than 40,000 kWh of energy during the reporting year it is exempt
from Streamlined Energy and Carbon Reporting (SECR) reporting
requirements.
Financial risk management
The most significant financial risks arising from the Company’s
financial instruments are price risk, interest rate risk, credit risk,
cash flow risk and liquidity risk. The policies for managing these
risks are regularly reviewed by the Board and full details can be
found in note 16 to the financial statements.
Bribery Act
Octopus has an Anti-Bribery policy which introduced robust
procedures to ensure full compliance with the Bribery Act 2010
and to ensure that the highest standards of professional ethical
conduct are maintained. All employees and those working for,
or on behalf of, the Investment Manager are aware of their legal
obligations when conducting Company business.
Share capital
The Company’s share capital as at 28 February 2025 comprised
228,158,686 Ordinary shares of 1p each.
The voting rights of the Ordinary shares on a show of hands is
one vote for each member present or represented, the voting
rights on a poll are one vote for each share held. There are no
restrictions on the transfer of the Ordinary shares and there are
no shares that carry special rights with regard to the control of
the Company.
Share issues and open offers
On 23 September 2024, a prospectus offer was launched
alongside Octopus AIM VCT 2 plc to raise a combined total of
up to £20 million with a £10 million over-allotment facility. This
prospectus closed to further applications on 24 March 2025, being
fully subscribed.
In the year 24,233,113 shares were issued under the fundraise
that was launched on 23 September 2024, raising £12.8 million
after costs for the Company.
During the year 6,765,311 shares were issued to those shareholders
who elected to receive shares under the Dividend Reinvestment
Scheme as an alternative to dividends. This raised £3.7 million.
An additional 37,538 shares were issued to shareholders as a
result of reduced adviser charges, and to Octopus employee
shareholders as a result of a rebate of part of the annual
management fee. These shares were issued to those investors
who, in accordance with the adviser charging terms contained in
each fundraising document offered to the public and published
since 31 December 2012 following the introduction of the retail
distribution, had chosen to pay their adviser less than the 0.5%
ongoing adviser charge; and to employees, who have been
rebated the annual management charge.
Share buybacks and redemptions
During the year, the Company purchased for cancellation 6,705,585
shares at a weighted average price of 56.1p (2024: 6,351,314 shares
with a nominal value of 1p for cancellation, at a weighted average
price of 64.3p) for a total consideration of £3.7 million (2024:
£4.1 million). This represents 2.9% (2024: 3.1%) of the closing share
capital. These were repurchased in accordance with the Company’s
share buyback facility in an attempt to assist the marketability
of the shares and prevent the shares trading at a wide discount
to the NAV.
Post-balance sheet events
A full list of post-balance sheet events since 28 February 2025
can be found in note 17 to the financial statements on page 71.
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Octopus AIM VCT plc Annual report 2025
Rights attaching to the shares and restrictions
on voting and transfer
Subject to any suspension or abrogation of rights pursuant
to relevant law or the Company’s Articles of Association, the
Ordinary shares confer on their holders (other than the Company
in respect of any Treasury shares) the following principal rights:
(a) the right to receive profits available for distribution, such
dividends as may be agreed to be paid (in the case of a
final dividend in an amount not exceeding the amount
recommended by the Board as approved by shareholders in
a general meeting or in the case of an interim dividend in an
amount determined by the Board). All dividends unclaimed
for a period of twelve years after having become due for
payment are forfeited automatically and cease to remain
owing by the Company;
(b) the right, on a return of assets on a liquidation, reduction
of capital or otherwise, to share in the surplus assets of the
Company remaining after payment of its liabilities pari passu
with the other holders of Ordinary shares; and
(c) the right to receive notice of and to attend and speak and
vote in person or by proxy at any general meeting of the
Company. On a show of hands, every member present or
represented and voting has one vote, and on a poll, every
member present or represented and voting has one vote
for every share of which that member is the holder. The
appointment of a proxy must be received not less than
48 hours before the time of the holding of the relevant
meeting or adjourned meeting or, in the case of a poll
taken otherwise than at or on the same day as the relevant
meeting or adjourned meeting, be received after the poll has
been demanded and not less than 24 hours before the time
appointed for the taking of the poll.
These rights can be suspended. If a member, or any other person
appearing to be interested in shares held by that member,
has failed to comply within the time limits specified in the
Company’s Articles of Association with a notice pursuant to s793
of the Companies Act 2006 (notice by the Company requiring
information about interests in its shares), the Company can,
until the default ceases, suspend the right to attend and speak
and vote at a general meeting. If the shares represent at least
0.25% of their class the Company can also withhold any dividend
or other money payable in respect of the shares (without any
obligation to pay interest) and refuse to accept certain transfers
of the relevant shares. Shareholders, either alone or with other
shareholders, have other rights as set out in the Company’s
Articles of Association and in company law (principally the
Companies Act 2006).
A member may choose whether his shares are evidenced by
share certificates (certificated shares) or held in electronic
(uncertificated) form in CREST (the UK electronic settlement
system). Any member may transfer all or any of his shares,
subject in the case of certificated shares to the rules set out in the
Company’s Articles of Association or in the case of uncertificated
shares to the regulations governing the operation of CREST (which
allow the Directors to refuse to register a transfer as therein set
out); the transferor remains the holder of the shares until the
name of the transferee is entered in the Register of Members.
The Directors may refuse to register a transfer of certificated
shares in favour of more than four persons jointly or where there
is no adequate evidence of ownership or the transfer is not duly
stamped (if so required). The Directors may also refuse to register
an Ordinary share transfer if it is in respect of a certificated
share which is not fully paid up or on which the Company has a
lien provided that, where the share transfer is in respect of any
share admitted to the Official List maintained by the UK Listing
Authority, any such discretion may not be exercised so as to
prevent dealings taking place on an open and proper basis, or
if, in the opinion of the Directors (and with the concurrence of
the UK Listing Authority), exceptional circumstances so warrant,
provided that the exercise of such power will not disturb the
market in those shares. Whilst there are no squeeze-out and
sell-out rules relating to the shares in the Company’s Articles
of Association, shareholders are subject to the compulsory
acquisition provisions in s974 to s991 of the Companies Act 2006.
Independent auditor and disclosure of information
to auditor
BDO LLP is the appointed auditor of the Company and offer
themselves for re-appointment. A resolution to re-appoint BDO
LLP as auditor and to authorise the Directors to determine their
remuneration will be proposed at the forthcoming AGM.
As far as the Directors are aware, there is no relevant audit
information of which the auditor is unaware and the Directors
have taken all the steps they ought to have taken as a Director
in order to make them aware of any relevant audit information
and to establish that the Company’s auditor is aware of that
information.
Resolutions being put to shareholders in 2025
Directors’ authority to allot shares, to disapply
pre-emption rights
The authority proposed under Resolution 8 is required so that
the Directors may offer existing shareholders the opportunity
to add to their investment or to offer potential shareholders an
opportunity to invest in the Company in a cost-efficient manner.
Any consequent modest increase in the size of the Company will,
in the opinion of the Directors, be in the interests of shareholders
generally. Any issue proceeds will be available for investment in
line with the Company’s investment policy and may be used, in
part, to purchase Ordinary shares in the market.
Resolution 8 renews the Directors’ authority to allot Ordinary
shares. Such authority would expire 15 months after the date of
the passing of the Resolution or, if earlier, the conclusion of the
next AGM of the Company, giving the Directors authority to allot
up to 20% of the Company’s issued share capital at the date
of the Notice of AGM. This authority is in addition to existing
authorities. The Board intends to utilise this authority in respect
of the Company’s fundraising activities. Any shares allotted under
this authority would be issued at prices at or above NAV.
Directors’ report continued
35
Octopus AIM VCT plc Annual report 2025
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Resolution 9 authorises the Directors to allot Ordinary shares in
connection with the Dividend Re-investment Scheme (DRIS), up
to 5% of the Company’s issued share capital at the date of the
Notice of AGM. Such authority will expire 15 months after the
passing of the Resolution or, if earlier, the conclusion of the next
AGM of the Company.
Resolutions 10 and 11 renew and extend the Directors’ authority
to allot equity securities for cash without pre-emption rights
applying in certain circumstances. These Resolutions will
authorise the Directors, until the date falling 15 months after the
date of the passing of the Resolution or, if earlier, the conclusion
of the next AGM of the Company, to issue Ordinary shares for
cash without pre-emption rights applying by way of an offer
to existing shareholders, or re-issuing shares out of Treasury up
to a maximum of Ordinary shares (representing approximately
0% of the Company’s issued share capital as at the date of this
report). These powers will be exercised only if, in the opinion of the
Directors, it would be in the best interests of shareholders, as a
whole. Any shares allotted under this authority would be issued
at prices at or above NAV.
Directors’ authority to make market purchase of
its own shares
The authority proposed under Resolution 12 is required so that
the Directors may make purchases of up to 35,044,725 Ordinary
shares (representing approximately 14.99% of the Company’s
issued share capital as at the date of the Notice of AGM) and the
Resolution seeks renewal of such authority until the next AGM (or
the expiry of 15 months, if earlier). Any shares bought back under
this authority will be at a price determined by the Board (subject
to a minimum of 1p (being the nominal value of such shares) and
a maximum of 5% above the average mid-market quotation for
such shares on the London Stock Exchange and the applicable
regulations thereunder). This power will be exercised only if, in
the opinion of the Directors, a repurchase would be in the best
interests of shareholders as a whole. Any shares repurchased
under this authority will either be cancelled or held in Treasury for
future re-sale in appropriate market conditions.
Cancellation of share premium account
The Board considers it appropriate to obtain shareholders’
approval for the cancellation of the amount standing to the
share premium account of the Company, at the date of the
Court Order, to create (subject to Court approval) a pool of
distributable reserves. A Special Resolution to this effect is being
proposed at Resolution 13.
Substantial shareholdings
As at the date of this report, no disclosures of major shareholdings
had been made to the Company under Disclosure Guidance and
Transparency Rule 5 (Vote Holder and Issuer Notification Rules).
On behalf of the Board
Neal Ransome
Chair
20 June 2025
36
Octopus AIM VCT plc Annual report 2025
1
Please see the AIC Code at www.theaic.co.uk.
The Board of the Company has considered the principles and
recommendations of the Association of Investment Companies
Code of Corporate Governance (‘AIC Code’). The AIC Code
addresses the Principles and Provisions set out in the UK
Corporate Governance Code (‘UK Code’), as well as setting out
additional Provisions on issues that are of specific relevance to
the Company.
The Board considers that reporting against the principles and
provisions of the AIC Code, which has been endorsed by the
Financial Reporting Council, provides more relevant information
to shareholders.
Corporate governance within the closed-ended investment
company industry differs from that of other companies. In
addition, VCTs differ from most other investment companies in
that they have, developed over many years, a complex range of
additional legal, tax and regulatory requirements.
Octopus AIM VCT plc, as a VCT and closed-ended investment
company, has particular factors which have an impact on its
governance arrangements. The Company:
• outsources all day-to-day activities (such as portfolio
management, administration, accounting, custody and
company secretarial). This means that it is governed
entirely by a Board of Non-Executive Directors. In these
circumstances, the proper oversight of these relationships is
the key aspect of achieving good corporate governance;
• does not have executive directors or employees. As a
consequence, the only ‘corporate memory’ is that of the
Non-Executive Directors; and
• does not have customers, only shareholders.
The AIC Code deals with matters such as the relationship with
the Investment Manager and other service providers. In practice,
most of the time spent by the Board of a well-functioning
investment company should be spent on matters of general
corporate governance (e.g. the investment strategy, policy and
performance) which is what we do.
1
The Company is committed to maintaining high standards in
corporate governance. The Directors consider that the Company
has, throughout the year under review, complied with the
provisions set out in the AIC Code with the exceptions set out in
the Compliance Statement on page 39.
Board of Directors
The Company has a Board of four Non-Executive Directors, all
of whom are considered to be independent. The Board meets
at least four times a year, and on other occasions as required,
to review the investment performance and monitor compliance
with the investment policy laid down by the Board.
Louise Nash joined the Board on 1 July 2024. Trust Associates
Limited, who are independent of the Company, were engaged
for the recruitment.
The Board has a formal schedule of matters specifically reserved
for its decision, which include:
• the consideration and approval of future developments or
changes to the investment policy, including risk and asset
allocation;
• consideration of corporate strategy;
• approval of the appropriate dividend to be paid to the
shareholders;
• the appointment, evaluation, removal and remuneration of
the Investment Manager;
• the performance of the Company, including monitoring of
the discount of the NAV to the share price; and
• monitoring shareholder profiles and considering shareholder
communications.
The Chair leads the Board in the determination of its strategy and
in the achievement of its objectives. The Chair is responsible for
organising the business of the Board, ensuring its effectiveness
and setting its agenda, and has no involvement in the day-to-day
business of the Company. He facilitates the effective contribution
of the Directors and ensures that they receive accurate, timely
and clear information and that they communicate effectively
with shareholders.
The Company Secretarial function is discharged by Octopus
Company Secretarial Services Limited, which is responsible
for advising the Board, through the Chair, on all governance
matters. All of the Directors have access to the advice and
services of the Company Secretary, which has administrative
responsibility for the meetings of the Board and its committees.
Directors may also take independent professional advice at
the Company’s expense where necessary in the performance of
their duties.
As all of the Directors are non-executive, it is not considered
necessary to identify a member of the Board as the senior
independent director of the Company.
The Company’s Articles of Association and the schedule of
matters reserved for the Board for decision provide that the
appointment and removal of the Company Secretary is a matter
for the full Board.
Corporate governance
report
37
Octopus AIM VCT plc Annual report 2025
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Board of Directors continued
During the year the following meetings were held as part of the regular programme of meetings:
Full Board
meetings held
No. of meetings
attended
Audit Committee
meetings held
Audit Committee
meetings
attended
Stephen Hazell-Smith¹ 9 3 2 1
Joanne Parfrey 9 8 2 2
Neal Ransome 9 9 2 2
Andrew Boteler 9 9 2 2
Louise Nash 9 6 2 1
Stephen Hazell-Smith resigned as a Non-Executive Director on 18 July 2024.
Louise Nash was appointed as a Non-Executive Director on 1 July 2024.
Additional meetings were held as required to address specific issues, including approval of the Company’s annual report and accounts,
half-yearly results and fundraising.
Performance evaluation and independence of Directors
Each year a formal performance evaluation is undertaken of the Board, its Committee and the Directors in the form of a questionnaire
completed by each Director. The Chair provides a summary of the findings to the Board, which is discussed and an action
plan agreed. During the year no issues were identified requiring an action plan. The performance of the Chair is evaluated by the
other Directors.
Length of service
Date of original appointment Due date for election/re-election
Joanne Parfrey 06/10/2016 AGM 2025
Neal Ransome 06/10/2016 N/A
Andrew Boteler 19/03/2020 AGM 2025
Louise Nash 01/07/2024 AGM 2025
Length of service of the Chair and other Directors is one of a number of factors taken into account when considering the contribution
and ongoing independence of the Board, both individually and in terms of overall composition. The Board considers the experience,
range of skills, knowledge of the Company and its operating environment and diversity of the Directors. Accordingly, the Board’s policy
on tenure is that the term the Chair and other Directors serve on the Board should not be restricted to a fixed time limit in order to
ensure sufficient corporate memory and consistent adherence to strategy. We believe (in line with the AIC Code) that members of the
Board are independent in character and judgement with respect to their duties to the shareholders.
The Company’s Articles of Association require that one-third of Directors should retire by rotation each year and seek re-election at the
AGM and that Directors appointed by the Board should seek re-appointment at the next AGM. The Directors have agreed to submit
themselves for annual re-election. This practice was followed during the year under review.
Notwithstanding the policy for one-third of the Directors to retire at each AGM, in order to follow best practice, all Directors stand for
re-election annually. The Companies Act allows shareholders in a general meeting by Ordinary Resolution (requiring a simple majority
of the persons voting on the relevant Resolution) to remove any Director before the expiration of his or her period of office, but without
prejudice to any claim for damages which the Director may have for breach of any contract of service between him or her and the
Company.
Neal Ransome will be retiring at the AGM to be held on 23 July 2025.
38
Octopus AIM VCT plc Annual report 2025
Powers of the Directors
Subject to the provisions of the Companies Act 2006, the
Memorandum and Articles of Association of the Company and
any directions given by shareholders by Special Resolution, the
Articles of Association specify that the business of the Company
is to be managed by the Directors, who may exercise all the
powers of the Company, whether relating to the management
of the business or not. In particular, the Directors may exercise on
behalf of the Company its powers to purchase its own shares to
the extent permitted by shareholders.
Authority was given at the Company’s 2024 AGM to
make market purchases of up to 14.99% of the issued
Ordinary share capital at any time up to the 2025 AGM and
otherwise on the terms set out in the relevant resolution. A
renewed authority is being sought at the 2025 AGM, as set
out in the Notice of Meeting.
Board committees
There is no formal Management Engagement Committee
as matters of this nature are dealt with by the independent
Non-Executive Directors. The Board does not have a separate
Remuneration Committee as the Company has no employees
or executive directors. Detailed information relating to the
remuneration of Directors is given in the Directors’ Remuneration
Report on pages 42 to 44. The Board does not have a separate
Nomination Committee as there has not been a requirement for
a Committee. Whilst diversity considerations would normally be
a function of a Nomination Committee, these are dealt with by
the Board as a whole on an annual basis. The Board considers its
composition to be appropriate with due regard for the benefits
of diversity and gender.
The Board has appointed one committee to make
recommendations to the Board in a specific area:
Audit Committee
Andrew Boteler is Chair of the Audit Committee and all
Directors are members of this Committee. The Board confirms
that, in accordance with the recommendation of the AIC
Code, at least one member of the Audit Committee has
recent and relevant financial experience. Andrew Boteler, as
Audit Chair, Neal Ransome and Joanne Parfrey are Chartered
Accountants and the Board is confident that the Committee as a
whole has competence relevant to the sector in which the
Company operates.
The Audit Committee Report is given on pages 40 and 41.
Internal controls
The purpose of these controls is to make sure that proper
accounting records are maintained, the Company’s assets are
safeguarded and the financial information used within the
business and for publication is accurate and reliable; such a
system can only provide reasonable and not absolute assurance
against material misstatement or loss. The system of internal
controls is designed to manage rather than eliminate the risk
of failure to achieve the business objectives. The Board regularly
reviews financial results and investment performance with its
Investment Manager.
The Board delegates the identification of appropriate
opportunities and the investment of funds to the Investment
Manager. The Board regularly review reports upon the
investments made and on the status of existing investments.
The Investment Manager is also engaged to carry out the
accounting and custodian functions of the Company. All quoted
investments are held in CREST. Unquoted investments are held in
certificated form.
The Directors confirm that they have established a continuing
process throughout the year and up to the date of this report for
identifying, evaluating and managing the significant potential
risks faced by the Company and have reviewed and were
satisfied with the effectiveness of the internal control systems.
As part of this process, an annual review of the internal control
systems is carried out, by Octopus, in accordance with the
Financial Reporting Council’s Guidance on Risk Management,
Internal Control and Related Financial and Business Reporting.
As explained in the Audit Committee Report, the Board does not
consider it necessary to maintain an internal audit function.
Internal control systems include the production and review of
monthly bank reconciliations and management accounts. All
outflows made from the VCT’s accounts require the authority of
two signatories from Octopus. The Investment Manager is subject
to ongoing review by the Octopus Compliance Department.
Financial risk management, objectives and
policies
The Company is exposed to the risks arising from its operational
and investment activities. Further details can be found in note 16
to the financial statements.
Statement of voting at the Annual General
Meeting
The most significant portion of the votes cast against a resolution
at the 2024 AGM were for the resolutions relating to the approval
of the Directors’ remuneration report (3.87% of votes cast) and
the re-election of Andrew Boteler as a Director (3.04% of votes
cast). No communication was received from shareholders giving
reasons for the votes against the resolutions.
Shareholders’ views are always welcomed and considered by the
Board. The methods of contacting the Board are set out below.
Corporate governance report continued
39
Octopus AIM VCT plc Annual report 2025
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Relations with shareholders
The Investment Manager will provide an update on the
Company’s activities and future plans at the AGM to be held on
23 July 2025. This will also provide an opportunity for shareholders
to ask questions of the Board relating to the AGM resolutions and
annual report and accounts.
We always welcome questions from our shareholders at the AGM,
which will take place on 23 July 2025 at 10.30am. To make sure
we are able to respond to any questions you may have for either
the Investment Manager or AIM VCT Board, please send these
via email to AimAGM@octopusinvestments.com by 5.00pm
on 15 July 2025. The Board is also happy to respond to any written
queries made by shareholders during the course of the year and
can be contacted at 33 Holborn, London EC1N 2HT. Alternatively,
please call the team at Octopus to answer any queries. They can
be contacted on 0800 316 2295.
Corporate Governance Code
The Board is aware of the revised UK Corporate Governance
Code as published by the FRC on 22 January 2024, which will
apply to accounting periods beginning on or after 1 January
2025, with the exception of a new provision (29) relating to risk
management and internal controls, which will be applicable for
accounting periods beginning on or after 1 January 2026. The
Board is further aware of the updated Association of Investment
Companies Code of Corporate Governance as published in
August 2024, which applies to accounting periods beginning on
or after 1 January 2025, with the exception of provision 34 which
will be applicable for accounting periods beginning on or after 1
January 2026.
Compliance statement
The Board recognises the importance of good governance. With
the exception of the limited items outlined below, the Board
believes, for the year ended 28 February 2025, the Company has
complied with the principles and provisions of the AIC Code:
1. The Company does not have a senior independent director.
The Board does not consider this necessary for the size of the
Company.
2. The Chair is a member of the Audit Committee, which is
considered appropriate as he has significant experience as a
chartered accountant, and there being only four Directors.
3. The Company does not have a separate Nomination
Committee due to the relatively small size and structure of
the Company. Appointments are dealt with by the full Board
as and when appropriate.
4. The Company does not have a Remuneration Committee
given the size of the Company and as it does not have any
executive directors. The whole Board deals with any matters
pertaining to remuneration.
5. The Company has no major shareholders, therefore
shareholders are not given the opportunity to meet any
Non-Executive Directors at a specific meeting other than
the AGM, or other designated shareholder events, but are
welcome to contact the Board or the Investment Manager
at any time.
By Order of the Board
Neal Ransome
Chair
20 June 2025
40
Octopus AIM VCT plc Annual report 2025
This report is submitted in accordance with the AIC Code in
respect of the year ended 28 February 2025 and describes the
work of the Audit Committee in discharging its responsibilities.
The Committee’s key objective is the provision of effective
governance of the appropriateness of the Company’s financial
reporting, the performance of the auditor and the management
of the internal control and business risks systems. The Directors
forming the Audit Committee can be found on page 38.
Matters considered by the Audit Committee in
the year
The Audit Committee’s terms of reference include the following
responsibilities:
• reviewing and making recommendations to the Board in
relation to the Company’s published annual report and
financial statements and other formal announcements
relating to the Company’s financial performance;
• reviewing and making recommendations to the Board
in relation to the Investment Manager’s internal controls
(including internal financial control) and risk management
systems to the extent they are relevant to the Company’s
internal controls;
• periodically considering the need for an internal audit
function;
• making recommendations to the Board in relation to the
appointment, re-appointment and removal of the external
auditor and approving the remuneration and terms of
engagement of the external auditor;
• reviewing and monitoring the external auditor’s independence
and objectivity and the effectiveness of the audit process,
taking into consideration relevant UK professional regulatory
requirements;
• monitoring the extent to which the external auditor is
engaged to supply non-audit services; and
• ensuring that the Investment Manager has arrangements
in place for the investigation and follow-up of any concerns
raised confidentially by staff in relation to propriety of
financial reporting or other matters.
The Committee reviews its terms of reference and its effectiveness
annually and recommends to the Board any changes required as
a result of the review. The terms of reference are available on
request from the Company Secretary. The Committee meets
twice per year and has direct access to BDO LLP, the Company’s
external auditor.
Auditor appointment
The Audit Committee undertook a competitive audit tender
process in 2019 as required for all Public Interest Entities who have
had the same auditor for ten years, following which BDO LLP
were re-appointed. When considering whether to recommend
the re-appointment of the external auditor, the Committee
takes into account the tenure of the current auditor in addition
to comparing the fees charged to similar sized VCTs. The current
auditor was first appointed in 2008 under the name of PKF (UK)
LLP, which subsequently merged with BDO LLP, and has held the
position for nearly 17 years. Under FRC ethical standards, in the
event that the Audit Committee has decided not to change the
auditor beforehand, an audit tender will be mandatory for the
year ended 28 February 2028. The year ended 28 February 2025
represents Elizabeth Hooper’s second year as audit partner.
Independence and objectivity of the auditor
Non-audit services were not provided by the external auditor
during the period. The external auditor confirmed that they
have not identified any other relationships or threats that
may reasonably be thought to bear on their objectivity and
independence, which was agreed by the Audit Committee.
Auditor evaluation
The effectiveness of the external audit is assessed as part of the
Board evaluation conducted annually and by the quality and
content of the Audit Plan and Report provided to the Committee
by the Auditor and the resultant discussions on topics raised.
The Committee also challenges the Auditor when present at a
Committee meeting, if appropriate. The Audit Committee is
satisfied that BDO LLP provided effective challenge in carrying
out its responsibilities.
Once the Committee has made a recommendation to the Board,
in relation to the appointment of the external auditor, this is then
ratified at the AGM through an Ordinary Resolution.
Internal audit
The Company does not have an independent internal audit
function as it is not deemed appropriate given the size of the
Company and the nature of the Company’s business. However,
the Committee considers annually whether there is a need for such
a function and if so would recommend this to the Board. Octopus
has an internal audit team, which is supported as required by
external consultants. The Octopus Compliance Department
reports to the Board on the outcome of the internal audits that
have taken place insofar as these relate to the Company and
confirms the absence of any issues relating to internal audit
of which the Board should be aware. Octopus undertakes to
immediately raise to the Committee any significant issues arising
from the Octopus internal audit that affect the Company.
The Committee will monitor the significant risks at each meeting
and Octopus will work closely with the Board to mitigate the risks
and the resultant impact.
Audit Committee report
41
Octopus AIM VCT plc Annual report 2025
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Financial reporting matters
The Audit Committee is responsible for considering issues in
relation to the financial statements, which are either significant
financial reporting matters or other financial reporting matters.
The Committee has identified the most significant financial
reporting matter for the Company as:
• Valuation and ownership of investments: The Committee
gives special audit consideration to the valuation of
investments and supporting data provided by Octopus.
The impact of this risk would be a large gain or loss in the
Company’s results. The valuations are supported variously
by stock market quotations, portfolio company audited
accounts, third party evidence and (where relevant for
unquoted investments) valuations confirmed to be in
accordance with IPEV guidelines. These, together with
reconciliations and independent confirmations performed
by the auditor give comfort to the Audit Committee.
The Committee has identified the following as other financial
reporting matters:
• Management override of financial controls: The
Committee specifically reviews all significant accounting
estimates that form part of the financial statements and
considers any material judgements applied by management
during the completion of the financial statements.
• Recognition and categorisation of revenue from
investments: Investment income is the Company’s main
source of revenue. The revenue return is recognised when the
Company’s right to the return is established in accordance
with the Statement of Recommended Practice, as either
revenue or capital income. The Investment Manager confirms
to the Audit Committee that the revenues are recognised
appropriately.
In addition to the above, the Committee has also considered the
implications of inflation and high interest rates. As at the date
of issuing this Report, whilst the Committee anticipates further
market volatility affecting the underlying investments, it does
not consider that this will have an impact upon the long-term
viability of the Company. This is discussed further in the Viability
Statement on page 25.
These issues were discussed with the Investment Manager and the
auditor at the conclusion of the audit of the financial statements.
The Committee has considered the whole annual report and
accounts for the period ended 28 February 2025 and has
reported to the Board that it considers them to be fair, balanced
and understandable, providing the information necessary for
shareholders to assess the Company’s performance, business
model and strategy.
The Audit Committee is also responsible for considering and
reporting on any significant issues that arise in relation to the
audit of the financial statements. The Audit Committee can
confirm that there were no significant issues to report to the
shareholders in respect of the audit of the financial statements
to 28 February 2025.
Andrew Boteler
Audit Committee Chair
20 June 2025
42
Octopus AIM VCT plc Annual report 2025
Introduction
This report is submitted in accordance with Regulation 3 of the
Large and Medium-sized Companies and Groups (Accounts
and Reports) (Amendment) Regulations 2013 (‘Regulations’) in
respect of the year ended 28 February 2025.
The Company’s auditor, BDO LLP, is required to give their opinion
on certain information included in this report, comprising
the Directors’ emoluments section and shareholdings below,
and their report on these and other matters is set out on pages
46 to 52.
Consideration by the Directors of matters
relating to Directors’ remuneration
The Board as a whole considers Directors’ remuneration and has
not appointed a separate committee in this respect.
The Board has not sought advice or services from any external
person in respect of its consideration of Directors’ remuneration
during the year although the Directors expect from time to time
to review the fees against those paid to the board of directors of
other VCTs. The Company does not have a chief executive officer,
senior management or any employees.
Directors’ remuneration policy report
The Board consists entirely of Non-Executive Directors, who meet
at least quarterly and on other occasions as necessary, to deal
with the important aspects of the Company’s affairs. Directors are
appointed with the expectation that they will serve for a period of
at least three years. All Directors are subject to election at the first
AGM after their appointment and one-third of all Directors are
subject to retirement by rotation at the AGMs. However, as best
practice, all the Directors retire and stand for re-election annually.
Re-election will be recommended by the Board but is dependent
upon shareholder votes.
Each Director received a letter of appointment. A Director may
resign at any time by giving three months’ notice in writing to
the Board. None of the Directors are entitled to compensation
payable upon early termination of their contract other than in
respect of any unexpired notice period.
The Company’s policy is that the fees payable to the Directors
should reflect the time spent by the Board on the Company’s
affairs and the responsibilities borne by the Directors. They should
be sufficient to attract candidates of high calibre to be recruited.
The policy is for the Chair of the Board and the Chair of the Audit
Committee to be paid higher fees than the other Directors in
recognition of their more onerous roles. The Remuneration policy
is to review the Directors’ fees from time to time, benchmarking
the fees against other VCT boards, although such review will
not necessarily result in any changes. Due to the nature of the
Company, there are no employees other than the Directors
and therefore no such issues to consider when determining the
Directors’ remuneration.
The Company’s policy is for the Directors to be remunerated
in the form of fees, payable monthly in arrears. The fees are
not specifically related to the Directors’ performance, either
individually or collectively. There are no long-term incentive
schemes, share option schemes or pension schemes in place.
The Board is also entitled to be repaid all reasonable travelling,
subsistence and other expenses incurred by them respectively
whilst conducting their duties as Directors. No other remuneration
or compensation was paid or payable by the Company during the
year to any of the current Directors. There will be no payment
for loss of office unless approved by a separate shareholder
resolution.
An Ordinary Resolution to approve the remuneration policy of
the Company was put to, and approved by, shareholders at the
2023 AGM and will remain in force for a three-year period. The
Board will review the remuneration of the Directors if thought
appropriate and monitors competitors in the VCT industry on an
annual basis.
Annual remuneration report
This section of the report is subject to approval by a
simple majority of shareholders at the AGM in July 2025, as in
previous years.
Statement of voting at the Annual General
Meeting on remuneration matters
The 2024 Directors’ Remuneration Report was presented to the
AGM in July 2024 and received shareholder approval following a
vote by way of a poll. 96.13% of the votes cast were in favour of
the Directors’ Remuneration Report or at the Chair’s discretion,
3.87% were against the resolution and 105,998 votes were
withheld. The proxy forms returned to the Registrars contained
no explanation for the votes against the resolution.
Shareholders’ views are always considered by the Board, and the
methods of contacting the Board are set out on page 39.
Directors’ remuneration
report
43
Octopus AIM VCT plc Annual report 2025
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Company performance
The Board is responsible for the Company’s investment strategy and performance, although the management of the Company’s
investment portfolio is delegated to Octopus through the investment management agreement, as referred to in the Directors’ Report.
The performance graph on page 22 also shows the performance of the Company on a total return basis, compared to the performance
of the FTSE AIM All-Share Index, the FTSE SmallCap (excluding investment companies) Index and the FTSE All-Share Index.
Directors’ fees (audited)
The amount of each Director’s fees for the year were:
Year ended
28 February 2025
£
Year ended
29 February 2024
£
Stephen Hazell-Smith
9,486
23,850
Joanne Parfrey
24,500
23,850
Neal Ransome
30,000
29,150
Andrew Boteler
27,250
26,500
Louise Nash
16,333
n/a
Total
107,569
103,350
Retired from the Board on 18 July 2024.
Appointed to the Board on 1 July 2024 and received fees for eight months of the year ended 28 February 2025.
The Directors do not receive any other form of emoluments in addition to the Directors’ fees, their total remuneration is not linked to
the performance of the Company and no bonuses were or will be paid to the Directors.
The Chair of the Company and Audit Committee Chair receive additional remuneration over the basic Directors’ fee in recognition of
the additional responsibilities and time commitment, and additionally, to be fair and comparable to similar VCTs.
Directors’ fees are considered annually. Following a review, the Board agreed the following fee rates with effect from 1 March 2025
(previous fees shown in brackets): Chair of the Board £31,000 (£30,000); Chair of the Audit Committee £28,000 (£27,250); and all other
Directors £25,000 (£24,500). These fee rates represent increases of 2.0%-3.3%, compared to a 3.4% increase in CPI over the preceding
year.
Directors’ fees annual percentage change
2025 % change 2024 % change 2023 % change 2022 % change 2021 % change
Stephen Hazell-Smith (60.2) 6.0 4.7 7.5 0.0
Joanne Parfrey 2.7 6.0 4.7 7.5 0.0
Neal Ransome 2.9 6.0 7.8 13.3 0.0
Andrew Boteler 2.8 6.0 8.7 15.0 0.0
Louise Nash n/a n/a n/a n/a n/a
Stephen Hazell-Smith resigned as a Director on 18 July 2024.
Louise Nash was appointed as a Director on 1 July 2024.
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Octopus AIM VCT plc Annual report 2025
Relative importance of spend on pay
The actual expenditure in the current year is as follows:
Year to
28 February 2025
£’000
Year to
29 February 2024
£’000 % change
Total dividends paid
20,521
9,526 115.4
Total buybacks
3,687
4,083 (9.7)
Total directors’ fees
108
103 4.9
The Directors do not consider there to be any other significant distributions during the year relevant to understanding the relative
importance of spend on pay.
Directors’ interest in shares (audited)
There are no guidelines or requirements for Directors to own shares in the Company. The interests of the Directors, and their connected
persons, in shares of the Company during the year (in respect of which transactions are notifiable under Disclosure Guidance and
Transparency Rule 3.1.2) in the issued Ordinary shares of 1p are shown in the table below:
Ordinary shares of 1p each
28 February 2025
Ordinary shares of 1p each
29 February 2024
Stephen Hazell-Smith
n/a
139,003
Neal Ransome
63,445
63,445
Joanne Parfrey
33,911
33,911
Andrew Boteler
46,921
46,921
Louise Nash
18,695
n/a
Stephen Hazell-Smith resigned as a Director on 18 July 2024.
Louise Nash was appointed as a Director on 1 July 2024.
All of the shares held by the Directors, or their connected persons, were held beneficially, in their own name. There have been no
changes in the Directors’ share interests between 28 February 2025 and the date of this report.
Shareholders’ proxy voting information
As required by Schedule 8:23 of the Regulations, the votes received for the Directors’ Remuneration policy (approved at the AGM in
2023) and the Directors’ Remuneration Report (approved at the AGM in 2024) were as follows:
For (including discretionary) Against
No. of
Shares %
No. of
Shares %
Approval of Directors’ remuneration policy
(approved at the AGM held in 2023)
3,332,443 94.96 176,792 5.04
Approval of Directors’ remuneration report
(approved at the AGM held in 2024)
3,986,325 96.13 160,313 3.87
By Order of the Board
Neal Ransome
Chair
20 June 2025
Directors’ remuneration report continued
45
Octopus AIM VCT plc Annual report 2025
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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 laws and
regulations. They are also responsible for ensuring that the annual
report and accounts include information required by the 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
are required to prepare the financial statements and have elected
to prepare the Company’s financial statements in accordance
with United Kingdom Generally Accepted Accounting Practice
(GAAP) (United Kingdom Accounting Standards and applicable
law) including FRS 102 – ‘The Financial Reporting Standard
applicable in the UK and Republic of Ireland’ (FRS 102). 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 of the Company and of the profit or
loss for 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, a Director’s Report and Director’s
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 ensuring that the annual
report and accounts, taken as a whole, are fair, balanced,
understandable and provide the information necessary for
shareholders to assess the Company’s position and performance,
business model and strategy.
Website publication
The Directors are responsible for ensuring the annual report
and the accounts are made available on a website. Financial
statements are published on the Investment Manager’s website
in accordance with legislation in the United Kingdom governing
the preparation and dissemination of financial statements, which
may vary from legislation in other jurisdictions. The maintenance
and integrity of the Company’s website is the responsibility of the
Directors. The Directors’ responsibility also extends to the ongoing
integrity of the financial statements contained therein.
Directors’ responsibilities pursuant to Disclosure
Guidance and Transparency Rule 4 (DTR4)
Neal Ransome (Chair), Andrew Boteler, Joanne Parfrey and Louise
Nash, the Directors, confirm to the best of their knowledge that:
• the financial statements have been prepared in accordance
with the Financial Reporting Standard applicable in the
United Kingdom and Republic of Ireland (‘FRS 102’) and give
a true and fair view of the assets, liabilities, financial position
and profit and loss of the Company; and
• the annual report includes a fair review of the development
and performance of the business and the financial position
of the Company, together with a description of the principal
risks and uncertainties that it faces.
By Order of the Board
Neal Ransome
Chair
20 June 2025
46
Octopus AIM VCT plc Annual report 2025
Opinion on the financial statements
In our opinion the financial statements:
• give a true and fair view of the state of the Company’s affairs
as at 28 February 2025 and of its loss for the year then ended;
• have been properly prepared in accordance with having
been prepared in accordance with United Kingdom Generally
Accepted Practice; and
• have been prepared in accordance with the requirements of
the Companies Act 2006.
We have audited the financial statements of Octopus AIM
VCT Plc (the ‘Company’) for the year ended 28 February 2025
which comprise the Income statement, the Balance sheet, the
Statement of changes in equity, the Statement of cash flows
and Notes to the financial statements, including a summary of
significant accounting policies. The financial reporting framework
that has been applied in their preparation is applicable law and
United Kingdom Accounting Standards, including Financial
Reporting Standard 102 The Financial Reporting Standard
applicable in the UK and Republic of Ireland (United Kingdom
Generally Accepted Accounting Practice).
Basis for opinion
We conducted our audit in accordance with International
Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our
responsibilities under those standards are further described in the
Auditor’s responsibilities for the audit of the financial statements
section of our report. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our
opinion. Our audit opinion is consistent with the additional report
to the audit committee.
Independence
Following the recommendation of the audit committee, we
were appointed by the Board of Directors to audit the financial
statements for the year ended 28 February 2009 and subsequent
financial periods. The period of total uninterrupted engagement
including retenders and re-appointments is 17 years, covering the
years ended 28 February 2009 to 28 February 2025. We remain
independent of the Company in accordance with the ethical
requirements that are relevant to our audit of the financial
statements in the UK, including the FRC’s Ethical Standard as
applied to listed public interest entities, and we have fulfilled
our other ethical responsibilities in accordance with these
requirements. The non-audit services prohibited by that standard
were not provided to the Company.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that
the Directors’ use of the going concern basis of accounting in
the preparation of the financial statements is appropriate. Our
evaluation of the Directors’ assessment of the Company’s ability
to continue to adopt the going concern basis of accounting
included:
• obtaining the VCT compliance reports during the year and as
at year end and reviewing the calculations therein to check
that the Company was meeting its requirements to retain
VCT status;
• consideration of the Company’s expected future compliance
with VCT legislation, the absence of bank debt, contingencies
and commitments and any market or reputational risks;
• reviewing the forecasted cash flows that support the
Directors’ assessment of going concern, challenging
assumptions and judgements made in the forecasts,
and assessing them for reasonableness. In particular, we
considered the available cash resources relative to the
forecast expenditure which was assessed against the prior
year for reasonableness; and
• evaluating the Directors’ method of assessing the going
concern in light of market conditions.
Based on the work we have performed, we have not identified
any material uncertainties relating to events or conditions that,
individually or collectively, may cast significant doubt on the
Company’s ability to continue as a going concern for a period of
at least twelve months from when the financial statements are
authorised for issue.
In relation to the Company’s reporting on how it has applied the
UK Corporate Governance Code, we have nothing material to
add or draw attention to in relation to the Directors’ statement in
the financial statements about whether the Directors considered
it appropriate to adopt the going concern basis of accounting.
Our responsibilities and the responsibilities of the Directors with
respect to going concern are described in the relevant sections
of this report.
Independent auditor’s
report to the members of
Octopus AIM VCT plc
47
Octopus AIM VCT plc Annual report 2025
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Overview
2025 2024
Key audit matters Valuation and Ownership of Investments 4 4
Materiality
Based on 1% of Net Assets £1,153,000 £1,291,000
An overview of the scope of our audit
Our audit was scoped by obtaining an understanding of the Company and its environment, including the Company’s system of internal
control, and assessing the risks of material misstatement in the financial statements. We also addressed the risk of management
override of internal controls, including assessing whether there was evidence of bias by the Directors that may have represented a risk
of material misstatement.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial
statements of the current period and include the most significant assessed risks of material misstatement (whether or not due to
fraud) that we identified, including those which had the greatest effect on: the overall audit strategy, the allocation of resources in the
audit, and directing the efforts of the engagement team. These matters were addressed in the context of our audit of the financial
statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
Key Audit Matter How the scope of our audit addressed the key audit matter
Valuation and Existence of investments (Notes 1
and 10 of the financial statements)
The investment portfolio comprises of level 1 quoted
equity and level 3 unquoted investments.
The Investment Manager’s fee is based on the
value of the net assets of the fund, as shown in
note 3.
As the Investment Manager is also responsible for
preparing the valuation of investments for the
financial statements, there is a potential risk of
misstatement in the investment valuations.
There is a risk that the investment balance includes
investments which are no longer owned by the
Company or the holdings % may have changed or
that the bid price used to value the investment is
incorrect.
There is a high level of estimation uncertainty
involved in determining the unquoted investment
valuations.
There is an inherent risk of management override
arising from the unquoted investment valuations
being prepared by the Investment Manager, who is
remunerated based on a percentage of the value of
the net assets of the fund, as shown in note 3.
Quoted Investments: £65 million (80%) of the
Company’s investments held at fair value through
profit and loss are quoted investments.
We assessed the design and implementation of controls in relation to the
valuation of investments.
In respect of 100% of level 1 quoted equity investments, we responded to this
matter by testing the valuation and existence of the whole portfolio of quoted
investments.
We performed the following procedures:
• Confirmed the year-end bid price was used by agreeing to externally
quoted prices;
• Assessed if there were contra indicators, such as liquidity considerations,
to suggest bid price is not the most appropriate indication of fair value;
• Recalculated the valuation by multiplying the number of shares held per
the statement obtained from the custodian by the valuation per share;
and
• Obtained direct confirmation from the custodian and agreed all
investments held at the balance sheet date to CREST records.
On a sample basis covering 98% (by value) of the unquoted investments,
we have:
• Challenged and corroborated the inputs to the valuation with reference
to management information of investee companies, market data and
our own understanding and assessed the impact of the estimation
uncertainty concerning these assumptions and the disclosure of these
uncertainties in the financial statements;
• Obtained share capital tables directly from the investee company to
confirm ownership at year end and recalculated the value attributable
to the Company;
• Reviewed the historical financial statements and any recent management
information available to support assumptions about maintainable
revenues, earnings or cash flows used in the valuations;
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Octopus AIM VCT plc Annual report 2025
Unquoted investments: £17 million (20%) of the
Company’s investments held at fair value through
profit and loss are unquoted and are valued using
more subjective techniques (Level 3).
For these reasons we considered the valuation and
existence of unquoted and quoted investments to
be a key audit matter.
• Considered the revenue or earnings multiples applied and the discounts
applied by reference to observable listed company market data; and
• Challenged the consistency and appropriateness of adjustments made
to such market data in establishing the revenue, cash flow or earnings
multiple applied in arriving at the valuations adopted by considering the
individual performance of investee companies against plan and relative
to the peer group, the market and sector in which the investee company
operates and other factors as appropriate.
Where appropriate, we performed a sensitivity analysis by developing our
own point estimate where we considered that alternative input assumptions
could reasonably have been applied and we considered the overall impact of
such sensitivities on the portfolio of investments in determining whether the
valuations as a whole are reasonable and free from bias.
Key observations:
Based on the procedures performed we did not identify any matters to
suggest the valuation or existence of the investments was not appropriate
and we are satisfied that the estimates and judgements made in the
unquoted investment valuations are appropriate considering the level of
estimation uncertainty.
Our application of materiality
We apply the concept of materiality both in planning and performing our audit, and in evaluating the effect of misstatements. We
consider materiality to be the magnitude by which misstatements, including omissions, could influence the economic decisions of
reasonable users that are taken on the basis of the financial statements.
In order to reduce to an appropriately low level the probability that any misstatements exceed materiality, we use a lower materiality
level, performance materiality, to determine the extent of testing needed. Importantly, misstatements below these levels will not
necessarily be evaluated as immaterial as we also take account of the nature of identified misstatements, and the particular
circumstances of their occurrence, when evaluating their effect on the financial statements as a whole.
Based on our professional judgement, we determined materiality for the financial statements as a whole and performance materiality
as follows:
Company financial statements
2025 2024
Materiality
£1,153,000 £1,291,000
Basis for determining materiality
1% of net assets.
Rationale for the benchmark applied
Net asset value is the primary measure used by the users in assessing
the performance of the Company as an investment entity. In setting
materiality, we have had regard to the nature and disposition of the
investment portfolio. Given that the VCT’s portfolio is comprised primarily
of quoted investments, we have applied a percentage of 1% of net assets
value.
Performance materiality
£864,000 £968,000
Basis for determining performance materiality
75% of materiality
Rationale for the percentage applied for
performance materiality
The level of performance materiality applied was set after having considered
a number of factors including the expected total value of known and likely
misstatements and the level of transactions in the year.
Independent auditor’s report to the members of
Octopus AIM VCT plc continued
49
Octopus AIM VCT plc Annual report 2025
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Reporting threshold
We agreed with the Audit Committee that we would report to them all individual audit differences in excess of £57,000 (2024: £64,000).
We also agreed to report differences below this threshold that, in our view, warranted reporting on qualitative grounds.
Other information
The directors are responsible for the other information. The other information comprises the information included in the annual report
and accounts other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not
cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance
conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is
materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be
materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine
whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed,
we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Corporate governance statement
The UK Listing Rules require us to review the Directors’ statement in relation to going concern, longer-term viability and that part of
the Corporate Governance Statement relating to the Company’s compliance with the provisions of the UK Corporate Governance
Code specified for our review.
Based on the work undertaken as part of our audit, we have concluded that each of the following elements of the Corporate
Governance Statement is materially consistent with the financial statements or our knowledge obtained during the audit.
Going concern and longer-
term viability
• The Directors’ statement with regards to the appropriateness of adopting the going concern
basis of accounting and any material uncertainties identified as set out on page 32; and
• The Directors’ explanation as to their assessment of the Company’s prospects, the period
this assessment covers and why the period is appropriate as set out on page 25.
Other Code provisions
• Directors’ statement on fair, balanced and understandable as set out on page 45;
• Board’s confirmation that it has carried out a robust assessment of the emerging and
principal risks as set out on page 26;
• The section of the annual report that describes the review of effectiveness of risk
management and internal control systems as set out on page 38; and
• The section describing the work of the Audit Committee as set out on page 40.
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Octopus AIM VCT plc Annual report 2025
Other Companies Act 2006 reporting
Based on the responsibilities described below and our work performed during the course of the audit, we are required by the Companies
Act 2006 and ISAs (UK) to report on certain opinions and matters as described below.
Strategic report and
Directors’ report
In our opinion, based on the work undertaken in the course of the audit:
• the information given in the Strategic report and the Directors’ report for the financial year
for which the financial statements are prepared is consistent with the financial statements;
and
• the Strategic report and the Directors’ report have been prepared in accordance with
applicable legal requirements.
In light of the knowledge and understanding of the Company and its environment obtained in
the course of the audit, we have not identified material misstatements in the strategic report
or the Directors’ report.
Directors’ remuneration
In our opinion, the part of the Directors’ remuneration report to be audited has been properly
prepared in accordance with the Companies Act 2006.
Matters on which we
are required to report by
exception
We have nothing to report in respect of the following matters in relation to which the Companies
Act 2006 requires us to report to you if, in our opinion:
• adequate accounting records have not been kept, or returns adequate for our audit have
not been received from branches not visited by us; or
• the financial statements and the part of the Directors’ remuneration report to be audited
are not in agreement with the accounting records and returns; or
• certain disclosures of Directors’ remuneration specified by law are not made; or
• we have not received all the information and explanations we require for our audit.
Responsibilities of Directors
As explained more fully in the Directors’ responsibilities statement, the Directors are responsible for the preparation of the financial
statements and for being satisfied that they give a true and fair view, and for such internal control as the Directors determine is
necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the Directors are responsible for assessing the Company’s ability to continue as a going concern,
disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Directors either
intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.
Independent auditor’s report to the members of
Octopus AIM VCT plc continued
51
Octopus AIM VCT plc Annual report 2025
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Auditor’s responsibilities for the audit of the
financial statements
Our objectives are to obtain reasonable assurance about whether
the financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an
auditor’s report that includes our opinion. Reasonable assurance
is a high level of assurance, but is not a guarantee that an audit
conducted in accordance with ISAs (UK) will always detect a
material misstatement when it exists. Misstatements can arise
from fraud or error and are considered material if, individually or
in the aggregate, they could reasonably be expected to influence
the economic decisions of users taken on the basis of these
financial statements.
Extent to which the audit was capable of detecting
irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance
with laws and regulations. We design procedures in line with our
responsibilities, outlined above, to detect material misstatements
in respect of irregularities, including fraud. The extent to which
our procedures are capable of detecting irregularities, including
fraud is detailed below:
Non-compliance with laws and regulations
Based on:
• our understanding of the Company and the industry in which
it operates;
• discussion with management and those charged with
governance; and
• obtaining an understanding of the Company’s policies and
procedures regarding compliance with laws and regulations.
We considered the significant laws and regulations to be the
Companies Act 2006, the UK Listing Rules and Disclosure
Guidance and Transparency Rules, the principles of the UK
Corporate Governance Code, industry practice represented by
the SORP and the applicable financial reporting framework. We
also considered the Company’s qualification as a VCT under UK
tax legislation.
Our procedures in respect of the above included:
• obtaining an understanding of the control environment in
monitoring compliance with laws and regulations;
• reviewing minutes of meeting of those charged with
governance for instances of non-compliance with laws and
regulations;
• enquiries of management and those charged with
governance relating to the existence of any non-compliance
with laws and regulations;
• agreement of the financial statement disclosures to
underlying supporting documentation; and
• obtaining the VCT compliance reports during the year and as
at year end and reviewing their calculations to check that the
Company was meeting its requirements to retain VCT status.
Fraud
We assessed the susceptibility of the financial statement to
material misstatement including fraud.
Our risk assessment procedures included:
• Enquiry with management and those charged with
governance regarding any known or suspected instances of
fraud;
• Obtaining an understanding of the Company’s policies and
procedures relating to:
• Detecting and responding to the risks of fraud; and
• Internal controls established to mitigate risks related to
fraud.
• Review of minutes of meeting of those charged with
governance for any known or suspected instances of fraud;
and
• Discussion amongst the engagement team as to how and
where fraud might occur in the financial statements.
Based on our risk assessment, we considered the areas most
susceptible to be management override of controls and the
valuation of unquoted investments.
Our procedures in respect of the above included but were not
limited to :
• The procedures set out in the Key Audit Matters section
above relating to valuation of the unquoted investments;
• Review of estimates and judgements applied by
management in the financial statements to assess their
appropriateness and the existence of any systematic bias;
• Review and consideration of the appropriateness of
adjustments made in the preparation of the financial
statements; and
• Review of unadjusted audit differences, if any, for indication
of bias or deliberate misstatement.
We also communicated relevant identified laws and regulations
and potential fraud risks to all engagement team members
who were all deemed to have appropriate competence and
capabilities and remained alert to any indications of fraud or
non-compliance with laws and regulations throughout the audit.
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Octopus AIM VCT plc Annual report 2025
Our audit procedures were designed to respond to risks of
material misstatement in the financial statements, recognising
that the risk of not detecting a material misstatement due
to fraud is higher than the risk of not detecting one resulting
from error, as fraud may involve deliberate concealment by, for
example, forgery, misrepresentations or through collusion. There
are inherent limitations in the audit procedures performed and
the further removed non-compliance with laws and regulations
is from the events and transactions reflected in the financial
statements, the less likely we are to become aware of it.
A further description of our responsibilities is available on the
Financial Reporting Council’s website at:
www.frc.org.uk/auditorsresponsibilities.
This description forms part of our auditor’s report.
Use of our report
This report is made solely to the Company’s members, as a body,
in accordance with Chapter 3 of Part 16 of the Companies Act
2006. Our audit work has been undertaken so that we might
state to the Company’s members those matters we are required
to state to them in an auditor’s report and for no other purpose.
To the fullest extent permitted by law, we do not accept or
assume responsibility to anyone other than the Company and
the Company’s members as a body, for our audit work, for this
report, or for the opinions we have formed.
Elizabeth Hooper (Senior Statutory Auditor)
For and on behalf of BDO LLP, Statutory Auditor
London, UK
20 June 2025
BDO LLP is a limited liability partnership registered in England and
Wales (with registered number OC305127).
Independent auditor’s report to the members of
Octopus AIM VCT plc continued
53
Octopus AIM VCT plc Annual report 2025
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Year to 28 February 2025
Year to 29 February 2024
Notes
Revenue
£’000
Capital
£’000
Total
£’000
Revenue
£’000
Capital
£’000
Total
£’000
Gain on disposal of fixed asset
investments
10
– 1,059 1,059
– 813 813
Loss on disposal of current asset
investments
– – –
– (246) (246)
Loss on valuation of fixed asset
investments
10
– (6,264) (6,264)
– (16,322) (16,322)
Loss on valuation of current asset
investments
– (352) (352)
– (1,137) (1,137)
Investment income 2
2,209 – 2,209
2,060 – 2,060
Investment management fees 3
(518) (1,561) (2,079)
(555) (1,666) (2,221)
Other expenses 4
(652) – (652)
(681) – (681)
Profit/(loss) before tax 1,039 (7,118) (6,079)
824 (18,558) (17,7 34)
Tax 6
– – –
– – –
Profit/(loss) after tax 1,039 (7,118) (6,079)
824 (18,558) (17,7 34)
Earnings per share – basic and
diluted
8
0.5p (3.4p) (2.9p)
0.4p (10.0p) (9.6p)
• The ‘Total’ column of this statement represents the statutory income statement of the Company prepared in accordance with
the accounting policies detailed in the Notes to the financial statements; the supplementary revenue return and capital return
columns have been prepared in accordance with the AIC Statement of Recommended Practice.
• All revenue and capital items in the above statement derive from continuing operations.
• The Company has only one class of business and derives its income from investments made in shares and securities and money
market funds, as well as OEIC funds.
The Company has no recognised gains or losses other than the results for the period as set out above. Accordingly, a statement of
comprehensive income is not required.
The accompanying notes on pages 57 to 71 form an integral part of these financial statements.
Income statement
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Octopus AIM VCT plc Annual report 2025
As at 28 February 2025
As at 29 February 2024
Notes £’000 £’000 £’000 £’000
Fixed asset investments 10
81,535
80,350
Current assets:
Investments 11
14,283
13,897
Money market funds 11
18,204
33,641
Debtors 12
252
666
Applications cash
1
11
4,350
4
Cash at bank 11
2,296
1,276
39,385
49,484
Creditors: amounts falling due within
one year
13
(5,537)
(725)
Net current assets
33,848
48,759
Total assets less current liabilities 115,383
129,109
Called up equity share capital 14
2,282
2,038
Share premium
16,226
18,041
Capital redemption reserve
408
341
Special distributable reserve
118,070
124,213
Capital reserve realised
(33,351)
(24,622)
Capital reserve unrealised
12,081
10,470
Revenue reserve
(333)
(1,372)
Total equity shareholders’ funds 115,383
129,109
NAV per share – basic and diluted
9
50.6p
63.3p
1
Cash held but not yet allotted.
The statements were approved by the Directors and authorised for issue on 20 June 2025 and are signed on their behalf by:
Neal Ransome
Chair
Company number: 03477519
The accompanying notes on pages 57 to 71 form an integral part of these financial statements.
Balance sheet
55
Octopus AIM VCT plc Annual report 2025
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Share
capital
£’000
Share
premium
£’000
Capital
redemption
reserve
£’000
Special
distributable
reserves
1
£’000
Capital
reserve
realised
1
£’000
Capital
reserve
unrealised
£’000
Revenue
reserve
1
£’000
Total
£’000
As at 1 March 2024 2,038 18,041 341 124,213 (24,622) 10,470 (1,372) 129,109
Comprehensive income for the year:
Management fee allocated as capital
expenditure
– – – – (1,561) – – (1,561)
Current period gain on disposal – – – – 1,059 – – 1,059
Current period loss on revaluation of
investments
– – – – – (6,616) – (6,616)
Profit after tax – – – – – – 1,039 1,039
Total comprehensive loss for the year – – – – (502) (6,616) 1,039 (6,079)
Contributions by and distributions to
owners:
Repurchase and cancellation of own
shares
(67) – 67 (3,687) – – – (3,687)
Issue of shares 311 17,114 – – – – – 17,425
Share issue costs – (864) – – – – – (864)
Dividends paid – – – (20,521) – – – (20,521)
Total contributions by and distributions
to owners
244 16,250 67 (24,208) – – – ( 7,647)
Other movements:
Cancellation of share premium – (18,065) – 18,065 – – – –
Prior years’ holding gains now realised – – – – (8,228) 8,228 – –
Total other movements – (18,065) – 18,065 (8,228) 8,228 – –
Balance as at 28 February 2025 2,282 16,226 408 118,070 (33,351) 12,081 (333) 115,383
As at 1 March 2023 1,798 18,924 279 118,015 (23,143) 27,54 5 (2,196) 141,222
Comprehensive income for the year:
Management fee allocated as capital
expenditure
– – – – (1,666) – – (1,666)
Current period gain on disposal – – – – 571 – – 571
Current period loss on revaluation of
investments
– – – – – (17,459) – (17,459)
Profit after tax – – – – – – 824 824
Total comprehensive loss for the year – – – – (1,095) (17,4 59) 824 (17,730)
Contributions by and distributions to
owners:
Repurchase and cancellation of own
shares
(62) – 62 (4,083) – – – (4,083)
Issue of shares 302 20,082 – – – – – 20,384
Share issue costs – (1,158) – – – – – (1,158)
Dividends paid – – – (9,526) – – – (9,526)
Total contributions by and distributions
to owners
240 18,924 62 (13,609) – – – 5,617
Other movements:
Cancellation of share premium – (19,807) – 19,807 – – – –
Prior years’ holding gains now realised – – – – 2,871 (2,871) – –
Transfer in reserves – – – – (3,255) 3,255 – –
Total other movements – (19,807) – 19,807 (384) 384 – –
Balance as at 29 February 2024 2,038 18,041 341 124,213 (24,622) 10,470 (1,372) 129,109
1
Included within these reserves is an amount of £84,386,000 (2024: £98,219,000) which is considered distributable to shareholders. The Income Taxes Act 2007 restricts
distribution of capital from reserves created by the conversion of the share premium account into a special distributable reserve until the third anniversary of the share
allotment that led to the creation of that part of the share premium account. As at 28 February 2025, £50,328,000 of the special reserve is distributable under this restriction.
The accompanying notes on pages 57 to 71 form an integral part of these financial statements.
Statement of changes in
equity
56
Octopus AIM VCT plc Annual report 2025
Cash flow statement
Notes
Year to 28 February 2025
£’000
Year to 29 February 2024
£’000
Cash flows from operating activities
Loss before tax
(6,079)
(17,734)
Adjustments for:
Decrease in debtors
414
131
Increase/(decrease) in creditors
466
(134)
Gain on disposal of fixed asset investments 10
(1,059)
(813)
Loss on disposal of current asset investments
–
246
Loss on valuation of fixed asset investments 10
6,264
16,322
Loss on valuation of current asset investments
352
1,137
Net cash generated from/(utilised in) operating
activities
358
(845)
Cash flows from investing activities
Purchase of fixed asset investments 10
(11,280)
(7,149)
Proceeds from sale of fixed asset investments 10
4,890
13,517
Purchase of current asset investments
(1,008)
(1,080)
Proceeds from sale of current asset investments
270
1,988
Total cash flows (utilised in)/generated from
investing activities
(7,128)
7,276
Cash flows from financing activities
Movement in applications account 13
4,346
(1)
Purchase of own shares 14
(3,687)
(4,083)
Proceeds from share issues (net of DRIS) 14
13,678
18,558
Share issue costs 14
(864)
(1,157)
Dividends paid (net of DRIS) 7
(16,774)
(7,700)
Net cash flows (utilised in)/generated from
financing activities
(3,301)
5,617
(Decrease)/increase in cash and cash equivalents (10,071)
12,048
Opening cash and cash equivalents
34,921
22,873
Closing cash and cash equivalents 24,850
34,921
Cash and cash equivalents is represented by:
Cash at bank 11
2,296
1,276
Applications cash 11
4,350
4
Money market funds 11
18,204
33,641
Total cash and cash equivalents
24,850
34,921
The notes on pages 57 to 71 form an integral part of these financial statements.
57
Octopus AIM VCT plc Annual report 2025
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1. Significant accounting policies
The Company is a Public Limited Company (plc) incorporated
in England and Wales and its registered office is 33 Holborn,
London EC1N 2HT.
The Company’s principal activity is to invest in a diverse
portfolio of predominantly AIM-traded companies with
the aim of providing shareholders with attractive tax-free
dividends and long-term capital growth.
Basis of preparation
The financial statements have been prepared 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’), and with the Companies Act
2006 and the Statement of Recommended Practice (SORP)
‘Financial Statements of Investment Trust Companies and
Venture Capital Trusts (issued 2014 and updated in July 2022).’
The significant accounting policies have remained unchanged
from those set out in the Company’s 2024 annual report and
accounts. A summary of the significant accounting policies
is set out below.
FRS 102 Sections 11 and 12 have been adopted with regard to
the Company’s financial instruments. The Company holds
all fixed asset investments at fair value through profit or
loss (FVTPL); therefore all gains and losses arising from such
investments held are attributable to financial assets held at
FVTPL. Accordingly, all interest income, fee income, expenses
and gains and losses on investments are attributable to
assets held at FVTPL.
Going concern
After reviewing the Company’s forecasts and expectations,
the Directors have a reasonable expectation that
the Company has adequate resources to continue in
operational existence for the foreseeable future. The Company
has sufficient cash and liquid resources to meet its liabilities as
they fall due and methods through which it could manage its
operations include adjusting investment strategy and careful
consideration of non-committed cash outflows, including
dividends and buybacks. The Company therefore continues
to adopt the going concern basis in preparing its financial
statements. In reaching this conclusion the Directors have
had regard to the potential impact of economic instability on
the Company. See the Directors’ Report on pages 32 to 35 for
further details.
Revenue and capital
The Company presents its income statement in a three-
column format to give shareholders additional detail of
the performance of the Company, split between items of a
revenue or capital nature as required by the SORP.
The revenue column of the income statement includes all
income and revenue expenses of the Company. The capital
column includes gains and losses on disposal and holding
gains and losses on investments.
Upon disposal of investments, gains relating to the assets are
transferred from the capital reserve unrealised to the capital
reserve realised.
Investment management fees are split between revenue
(25%) and capital (75%), in line with the Board’s expected
long-term return in the form of income and capital gains
respectively from the Company’s investment portfolio.
Key judgements and estimates
The preparation of the financial statements requires the
Board to make judgements and estimates that affect the
application of policies and reported amounts of assets,
liabilities, income and expenses. Estimates and assumptions
mainly relate to the fair valuation of the fixed asset
investments, particularly unquoted investments. Estimates
are based on historical experience and other assumptions
that are considered reasonable under the circumstances.
The estimates and the assumptions are under continuous
review with particular attention paid to the carrying value
of the investments.
Investment valuation policies are important to the depiction
of the Company’s financial position and require the
application of subjective and complex judgements, notably
with regard to unquoted holdings, often as a result of the
need to make estimates about the effects of matters that
are inherently uncertain and may change in subsequent
periods. The main accounting and valuation policies used by
the Company are disclosed below.
Investments are regularly reviewed to ensure that the fair
values are appropriately stated. Unquoted investments are
valued in accordance with current IPEV guidelines, although
this does rely on subjective estimates such as appropriate
sector earnings multiples, forecast results of portfolio
companies, asset values of the subsidiary companies of
portfolio companies and liquidity or marketability of the
investments held.
Although the Company believes that the assumptions
concerning the business environment and estimate of
future cash flows are appropriate, changes in estimates and
assumptions could require changes in the stated values. This
could lead to additional changes in fair value in the future
(see note 10).
Notes to the financial
statements
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Octopus AIM VCT plc Annual report 2025
1. Significant accounting policies continued
Financial instruments
The Company’s significant financial assets are its investments
and the policies in relation to those assets are set out above
and in note 10. Financial liabilities and equity instruments
are classified according to the substance of the contractual
arrangements entered into. An equity instrument is any
contract that evidences a residual interest in the assets of
the entity after deducting all of its financial liabilities. Where
the contractual terms of share capital do not have any terms
meeting the definition of a financial liability then this is
classed as an equity instrument. Dividends and distributions
relating to equity instruments are debited direct to equity.
The Company’s trade receivables are initially recognised
at fair value which is normally transaction cost and
subsequently measured at amortised cost.
Financing strategy and capital structure
Capital management is monitored and controlled by
forecasting income and expenditure over both the short
and medium terms to enable investments to be made
at the same time as controlling short-term liquidity. The
investments being managed include equity and short-
term liquidity, which comprises cash and cash equivalents
including debtors and creditors.
The Company defines capital as shareholders’ funds and
its financial strategy in the medium term is to manage a
level of cash that balances the risks of the business with
optimising the return on equity. The Company currently has
no borrowings nor does it anticipate that it will enter into
any borrowing facilities in the future to fund the acquisition
of investments.
As the Company is registered as an AIFM, it is subject
to externally imposed capital requirements, namely if
the value of assets under management (AUM) exceeds €250
million then an additional amount of Company funds equal
to 0.02% of the excess over €250 million (subject to a cap of
€10 million capital requirement) will be required.
Cash and liquid resources
For the purpose of the Cash Flow Statement, cash and cash
equivalents comprises cash at bank, Applications cash and
money market funds. Liquid resources are current asset
investments which are disposable without curtailing or
disrupting the business and are either readily convertible
into known amounts of cash at or close to their carrying
values or traded in an active market. Investments in OEICs
and MMFs are subject to insignificant changes in fair value.
The Company holds £4,350,000 (2024: £4,000) of cash
on behalf of the Company and Octopus AIM VCT 2 plc, in
accordance with their joint prospectus. Of this, £2,610,000
(2024: £2,000) is attributable to the Company. This cash is
held in an applications bank account until shares are issued.
A corresponding creditor is recognised in note 13 on page 66.
Reserves
Called up equity share capital – represents the nominal
value of shares that have been issued.
Share premium account – includes any premiums received
on issue of share capital. Any transaction costs associated
with the issuing of shares are deducted from share premium.
Capital redemption reserve – represents the nominal value
of shares bought back from shareholders and cancelled from
share capital.
Special distributable reserve – includes cancelled share
premium available for distribution.
Capital reserve realised – when an investment is sold,
any balance held in capital reserve unrealised is transferred
to capital reserve realised on disposal, as a movement in
reserves. The portion of the management fee allocated
to capital expenditure is also included in this reserve. This
reserve is available for distribution.
Capital reserve unrealised – when the Company revalues
the investments still held during the period, any gains or losses
arising are credited/charged to capital reserve unrealised.
Revenue reserve – net revenue profits and losses of the
Company. This reserve is available for distribution.
Functional and presentational currency
The financial statements are presented in sterling (£). The
functional currency is also sterling (£).
Notes to the financial statements continued
59
Octopus AIM VCT plc Annual report 2025
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2. Income
Accounting policy
Investment income includes interest earned on money market securities is shown net of income tax withheld at source. Dividend
income is shown net of any related tax credit. Dividends are allocated to revenue or capital depending on whether the dividend
is of a revenue or capital nature.
Dividends receivable are brought into account when the Company’s right to receive payment is established and it is probable that
payment will be received. Fixed returns on debt and money market securities are recognised on a time apportionment basis so as
to reflect the effective yield, provided there is no reasonable doubt that payment will be received in due course.
Disclosure
28 February 2025
£’000
29 February 2024
£’000
Dividends receivable from fixed asset investments
906
866
Loan note interest receivable
111
41
Income receivable on money market securities
1,192
1,153
2,209
2,060
3. Investment management fees
28 February 2025
29 February 2024
Revenue
£’000
Capital
£’000
Total
£’000
Revenue
£’000
Capital
£’000
Total
£’000
Investment management fee
518 1,561 2,079
555 1,666 2,221
Octopus provides investment management and accounting and administration services to the Company under a management
agreement which initially ran with Close Investment Limited from 3 February 1998 and was then novated to Octopus for a period
of five years with effect from 29 July 2008 and may be terminated at any time thereafter by not less than twelve months’ notice
given by either party. No compensation is payable in the event of terminating the agreement 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. The management fee is an annual charge set at 2% of
the Company’s net assets, less deductions outlined below, calculated on a quarterly basis. The Investment Manager is not entitled
to any annual performance incentive scheme.
During the year Octopus charged gross management fees of £2,469,000 (2024: £2,614,000). When the various allowances detailed
below are included, the net management fees for the year are £2,079,000 (2024: £2,221,000). At the year-end there was £503,000
payable to Octopus (2024: £499,000). Octopus received £165,000 as a result of upfront fees charged on allotments of Ordinary
shares (2024: £243,000).
The Company pays ongoing adviser charges to independent financial advisers (IFAs). Ongoing adviser charges are an ongoing
fee of up to 0.5% per annum for a maximum of nine years paid to advisers who are on an advised and ongoing fee structure.
The Company is rebated for this cost by way of a reduction in the annual management fee. For the year to 28 February 2025 the
rebate received was £131,000 (2024: £140,000).
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Octopus AIM VCT plc Annual report 2025
3. Investment management fees continued
The Company also facilitates upfront fees to IFAs where an investor has invested through a financial adviser and has received
upfront advice. Where an investor agrees to an upfront fee only, the Company can facilitate a payment of an initial adviser charge
of up to 4.5% of the investment amount. If the investor chooses to pay their intermediary/adviser less than the maximum initial
adviser charge, the remaining amount will be used for the issue and allotment of additional new shares for the investor. In these
circumstances the Company does not facilitate ongoing annual payments. To make sure that the Company is not financially
disadvantaged by such payment, a notional ongoing adviser charge equivalent to 0.5% per annum will be deemed to have been
paid by the Company for a period of nine years. The Company is rebated for this cost, also by way of a reduction in the annual
management fee. For the year to 28 February 2025 the rebate received was £171,000 (2024: £171,000).
The Company also receives a reduction in the management fee for the investments in other Octopus managed funds, being the
Multi Cap, Micro Cap and Future Generations products, to ensure the Company is not double charged on these products. This
amounted to £86,000 for the year to 28 February 2025 (2024: £80,000).
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 the Company’s investment portfolio.
4. Other expenses
Accounting policy
All expenses are accounted for on an accruals basis and are charged wholly to revenue, apart from management fees which are
charged 25% to revenue and 75% to capital.
Disclosure
28 February 2025
£’000
29 February 2024
£’000
IFA charges
131
140
Directors' remuneration
108
103
Registrars' fees
56
69
Audit fees
49
48
Directors’ and officers’ liability insurance
49
49
Printing and postage
19
19
VCT monitoring fees
14
17
Broker’s fees
6
6
Other administration expenses
220
230
652
681
The fees payable to the Company’s auditor are stated net of VAT and the VAT is included within other administration expenses.
No non-audit services were provided by the Company’s auditor.
The ongoing charges of the Company were 2.3% of average net assets during the year to 28 February 2025 (2024: 2.1%). Ongoing
charges are calculated using the AIC methodology and exclude exceptional costs and trail commission.
Notes to the financial statements continued
61
Octopus AIM VCT plc Annual report 2025
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5. Directors’ remuneration
Directors were paid £108,000 in the year to 28 February 2025 (2024: £103,000). This excludes Employer’s National Insurance
contributions of £9,000 (2024: £9,000). None of the Directors received any other remuneration, pension contributions or benefits
from the Company during the year. The Company has no employees other than Non-Executive Directors. The average number of
Non-Executive Directors in the year was four (2024: four).
6. Tax
Accounting policy
Current tax is recognised for the amount of income tax payable in respect of the taxable profit/(loss) for the current or past
reporting periods using the current UK corporation tax 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 on an undiscounted basis in respect of all timing differences that have originated but not reversed at
the balance sheet date, except as otherwise indicated.
Deferred tax assets are only recognised to the extent that it is probable that they will be recovered against the reversal of deferred
tax liabilities or other future taxable profits.
The corporation tax charge for the year was £nil (2024: £nil).
Disclosure
Tax reconciliation
28 February 2025
£’000
29 February 2024
£’000
Loss before tax
(6,079)
(17,734)
Current tax at 25% (2024: 24.49%)
(1,519)
(4,329)
Effects of
Non-taxable income
(525)
(492)
Non-taxable capital gains
1,389
4,123
Non-deductible expenses
9
(6)
Excess management expenses on which deferred tax
not recognised
646
704
Total tax charge –
–
Approved VCTs are exempt from tax on capital gains within the Company. Since the Directors intend that the Company will
continue to conduct its affairs so as to maintain its approval as a VCT, no deferred tax has been provided in respect of any capital
gains or losses arising on the revaluation or disposal of investments.
As at 28 February 2025 there is an unrecognised deferred tax asset of £7,558,000 (2024: £7,210,000) in respect of accumulated
surplus management expenses of £30,232,000 (2024: £28,841,000), based on a prospective corporation tax rate of 25% (2024:
25%). This deferred tax asset could in future be used against taxable profits.
Provided the Company continues to maintain its current investment profile, it is unlikely that the expenses will be utilised and that
the Company will obtain any benefit from this asset.
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Octopus AIM VCT plc Annual report 2025
7. Dividends
Accounting policy
Dividends payable are recognised as distributions in the financial statements when the Company’s liability to make payment has
been established. This liability is established on the record date, the date on which those shareholders on the share register are
entitled to the dividend.
Disclosure
28 February 2025
£’000
29 February 2024
£’000
Dividends paid on Ordinary shares during the year
Final dividend – 2.5p paid 15 August 2024 (2024: 2.5p)
5,044
4,451
Special dividend – 4.9p paid 15 August 2024 (2024: nil)
9,886
–
Interim dividend – 2.5p paid 10 January 2025 (2024: 2.5p)
5,591
5,075
20,521
9,526
During the year £3,747,000 (2024: £1,826,000) of dividends were reinvested under the DRIS, see note 14.
28 February 2025
£’000
29 February 2024
£’000
Dividends paid and proposed in respect of the year
Interim dividend – 2.5p paid 10 January 2024 (2024: 2.5p)
5,591
5,075
Special dividend proposed – nil (2024: 4.9p)
–
9,934
Final dividend proposed – 2.5p payable 28 August 2025
(2024: 2.5p)
5,704
5,068
11,295
20,077
Under Section 32 of FRS 102 ‘Events After Balance Sheet Date’, dividends payable at year end are not recognised as a liability in
the financial statements.
The above proposed final dividend is based on the number of shares in issue at the date of this report. The actual dividend paid will
differ from this number as the dividend payable will be based on the number of shares in issue on the record date and will reflect
any changes in the share capital between the year end and the record date.
8. Earnings per share
28 February 2025
29 February 2024
Revenue Capital Total Revenue Capital Total
Loss attributable to ordinary shareholders
(£’000)
1,039 (7,118) (6,079)
824 (18,558) (17,734)
Earnings per ordinary share (p)
0.5p (3.4p) (2.9p)
0.4p (10.0p) (9.6p)
The earnings per share is based on 209,959,577 Ordinary shares (2024: 185,664,255, being the weighted average number of shares
in issue during the year), and the loss on ordinary activities after tax for the year of £6,079,000 (2024: loss £17,734,000).
There are no potentially dilutive capital instruments in issue and, as such, the basic and diluted earnings per share are identical.
Notes to the financial statements continued
63
Octopus AIM VCT plc Annual report 2025
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9. Net asset value per share
28 February 2025
29 February 2024
Net assets (£’000)
115,383
129,109
Shares in issue
228,158,686
203,828,309
NAV per share (p)
50.6
63.3
There are no potentially dilutive capital instruments in issue and, as such, the basic and diluted NAV per share are identical.
10. Fixed asset investments
The Company’s principal financial assets are its investments and the policies in relation to those assets are set out below.
Purchases and sales of investments are recognised in the financial statements at the date of the transaction (trade date).
These investments will be managed and their performance evaluated on a fair value basis in accordance with a documented
investment strategy and information about them has to be provided internally on that basis to the Board. Accordingly, as
permitted by FRS 102, the investments are measured as FVTPL on the basis that they qualify as a group of assets managed, and
whose performance is evaluated, on a fair value basis in accordance with a documented investment strategy. The Company’s
investments are measured at subsequent reporting dates at fair value.
In the case of investments quoted on a recognised stock exchange, fair value is established by reference to the closing bid price
on the relevant date or the last traded price, depending upon convention of the exchange on which the investment is quoted. In
the case of unquoted investments, fair value is established by assessing different methods of valuation, such as price of recent
transaction, earnings or revenue-based multiples, discounted cash flows and net assets. Where price of recent investment is used
as a starting point for estimating fair value at subsequent measurement dates, this has been benchmarked using an appropriate
valuation technique. These methodologies are consistent with IPEV guidelines.
Gains and losses arising from changes in fair value of investments are recognised as part of the capital return within the Income
Statement and allocated to the capital reserve unrealised. The Investment Manager reviews changes in fair value of investments
for any permanent reductions in value and will give consideration to whether these losses should be transferred to the capital
reserve realised.
In the preparation of the valuations of assets the Directors are required to make judgements and estimates that are reasonable
and incorporate their knowledge of the performance of the portfolio companies.
Fair value hierarchy
Paragraph 34.22 of FRS 102 recognises a hierarchy of fair value measurements, for financial instruments measured at fair value in
the balance sheet, which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities
(Level 1) and the lowest priority to unobservable inputs (Level 3). This methodology is adopted by the Company and requires
disclosure of financial instruments to be dependent on the lowest significant applicable input as laid out below:
Level 1: The unadjusted, fully accessible and current quoted price in an active market for identical assets or liabilities that an entity
can access at the measurement date.
Level 2: Inputs for similar assets or liabilities other than the quoted prices included in Level 1 that are directly or indirectly observable,
which exist for the duration of the period of investment.
Level 3: This is where inputs are unobservable, where no active market is available and recent transactions for identical instruments
do not provide a good estimate of fair value for the asset or liability.
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Octopus AIM VCT plc Annual report 2025
10. Fixed asset investments continued
Level 1:
Quoted equity
investments
£’000
Level 3:
Unquoted
investments
£’000
Total
£’000
Cost at 1 March 2024 68,725 5,268 73,993
Opening unrealised gain at 1 March 2024 780 5,577 6,357
Valuation at 1 March 2024 69,505 10,845 80,350
Purchases at cost 10,980 300 11,280
Disposal proceeds (4,883) (7) (4,890)
Loan to equity conversion 180 (180) –
Transfer of investment between Level 1 and 3 at cost (2,156) 2,156 –
Transfer of unrealised loss between Level 1 and 3 328 (328) –
Profit on realisation of investments 1,051 8 1,059
Change in fair value in year (9,931) 3,667 (6,264)
Closing valuation at 28 February 2025 65,074 16,461 81,535
Closing cost at 28 February 2025 73,811 7,245 81,056
Closing unrealised gain at 28 February 2025 (8,737) 9,216 479
Valuation at 28 February 2025 65,074 16,461 81,535
The Company received £5,070,000 (2024: £13,957,000) from investments sold in the year. The book cost of these investments when
they were purchased was £4,398,000 (2024: 10,490,000). These investments have been revalued over time and until they were sold
any unrealised gains/losses were included in the fair value of the investments.
Level 1 valuations are valued in accordance with the closing bid price on the relevant date. Further details of the fixed asset
investments held by the Company are shown within the Investment Manager’s Review.
Level 3 investments are reported at fair value in accordance with FRS 102 Sections 11 and 12, which is determined in accordance with
the latest IPEV guidelines. In estimating fair value, there is an element of judgement, notably in deriving reasonable assumptions,
and it is possible that, if different assumptions were to be used, different valuations could have been attributed to some of the
Company’s investments. Level 3 investments include £1,200,000 (2024: £1,080,000) of loan notes held at cost, which is deemed
to be current fair value.
There has been one transfer between these classifications in the year (2024: none). Intelligent Ultrasound Group Limited was
transferred from Level 1 to Level 3 following its delisting from the AIM market on 19 February 2025. Post year-end Intelligent
Ultrasound Group Limited was acquired for 13p per share which was its year-end valuation.
The Company holds seven unquoted equity investments and two unquoted loan notes which are classified as Level 3 in terms of
fair value hierarchy. These are valued based on a range of valuation methodologies, determined on an investment-specific basis.
The price of recent investment is used where a transaction has occurred sufficiently close to the reporting date to make this the
most reliable indicator of fair value. Where recent investment is not deemed to indicate the most reliable indicator of fair value
i.e. the most recent investment is too distant from the reporting date for this to be deemed a reasonable indicator, other market-
based approaches including earnings multiples, annualised recurring revenues, discounted cash flows or net assets are used to
determine a fair value for the investments.
FRS 102 requires the Directors to consider the impact of changing one or more of the inputs used as part of the valuation process
to reasonable possible alternative assumptions. The Company’s holdings in Hasgrove Limited and Popsa Holdings Limited make up
over 74.3% of the market value of the Level 3 investments on the balance sheet and therefore we have taken into account these
valuations when considering possible alternative assumptions. See below for the results of our analysis:
Notes to the financial statements continued
65
Octopus AIM VCT plc Annual report 2025
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10. Fixed asset investments continued
Valuation
technique
Portfolio
company Input Input selected
Change in
inputs
Change in
fair value of
investments
(£m)
Change in
NAV
(pence per
share)
Revenue
multiple
Hasgrove
Limited
ARR multiple 7. 26
0.5x 0.5 0.22
(0.5x) (0.5) (0.22)
Revenue
multiple
Popsa Holdings
Limited
EV/Sales
multiple
1.80
0.2x 0.5 0.22
(0.2x) (0.5) (0.22)
The Board and the Investment Manager believe that the valuations as at 28 February 2025 reflect the most reasonable assumptions
at that date, giving due regard to all information available from each portfolio company.
All capital gains or losses on investments are classified at FVTPL (‘fair value through profit and loss’). Given the nature of the
Company’s venture capital investments, the changes in fair value of such investments recognised in these financial statements
are not considered to be readily convertible to cash in full at the balance sheet date and accordingly these gains are treated as
holding gains or losses.
At 28 February 2025 there were no commitments in respect of investments approved by the Investment Manager but not yet
completed (2024: £nil).
11. Current asset investments and cash at bank
Accounting policy
For the purpose of the Cash Flow Statement, cash and cash equivalents comprise of cash at bank, applications cash and money
market funds. Cash equivalents are money market funds which are disposable without curtailing or disrupting the business and
are either readily convertible into known amounts of cash at or close to their carrying values or traded in an active market. They
are also subject to insignificant risk of valuation changes.
Current asset investments on the Balance Sheet comprise OEICs (‘Open Ended Investment Companies’), which are valued on a
FVTPL basis. Gains and losses arising from changes in fair value of investments are recognised as part of the capital return within
the Income Statement and allocated to the capital reserve unrealised. Realised gains and losses on disposals are allocated to the
capital reserve realised.
Money market funds are carried at fair value at the latest published price.
The current asset investments are readily convertible into cash at the choice of the Company within seven days. The current asset
investments are held for trading, are actively managed and the performance is evaluated on a fair value basis in accordance with
a documented investment strategy.
66
Octopus AIM VCT plc Annual report 2025
11. Current asset investments and cash at bank continued
Disclosure
As at 28 February 2025 and 29 February 2024, current asset investments, money market funds and cash at bank fall into Level 1
of the fair value hierarchy as defined in the fixed asset investment accounting policy in note 10 above.
28 February 2025
£’000
29 February 2024
£’000
OEICs:
FP Octopus UK Micro Cap Growth Fund
8,196
8,174
FP Octopus UK Multi Cap Income Fund
4,113
4,386
FP Octopus UK Future Generations Fund
1,974
1,337
Total OEICs 14,283
13,897
Money market funds
18,204
33,641
Total current asset investments and money market
funds
32,487
47, 538
Applications cash 4,350
4
Cash at bank 2,296
1,276
Total current asset investments and cash and cash
equivalents
39,133
48,818
12. Debtors
28 February 2025
£’000
29 February 2024
£’000
Other debtors
4
442
Prepayments and accrued income
248
224
Total 252
666
13. Creditors: amounts falling due within one year
28 February 2025
£’000
29 February 2024
£’000
Accruals
674
691
Other creditors
22
22
Applications creditor
4,350
4
Trade creditors
491
8
Total 5,537
725
Creditors includes £4,350,000 (2024: £4,000) cash held on behalf of the Company and Octopus AIM VCT 2 plc (also managed by
Octopus Investments). This cash is held in an applications bank account until shares are issued, of this £2,610,000 (2024: £2,000)
is attributable to the Company.
Notes to the financial statements continued
67
Octopus AIM VCT plc Annual report 2025
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14. Share capital
28 February 2025
£’000
29 February 2024
£’000
Allotted and fully paid up:
228,158,686 Ordinary shares of 1.0p (2024: 203,828,309)
2,282
2,038
Closing cost and valuation at 28 February 2025 2,282
2,038
The capital of the Company is managed in accordance with its investment policy with a view to the achievement of its investment
objective as set out on page 21. As the Company is registered as an AIFM, it is subject to externally imposed capital requirements
of €300,000. If the value of assets under management (AUM) exceeds €250 million then an additional amount of Company funds
equal to 0.02% of the excess over €250 million (subject to a cap of €10 million capital requirement) will be required.
During the year the Company repurchased the following shares to be cancelled:
Date Number of shares
Price per share
(p)
Total cost of shares
repurchased
(£)
21 March 2024 691,776 62.1 430,000
25 April 2024 406,159 61.2 249,000
24 May 2024 346,056 63.2 219,000
20 June 2024 428,126 61.7 264,000
18 July 2024 230,467 62.3 144,000
15 August 2024 658,737 54.4 358,000
12 September 2024 621,286 53.8 334,000
10 October 2024 628,786 52.4 329,000
14 November 2024 723,329 52.1 377,000
19 December 2024 530,605 52.2 277,000
30 January 2025 803,136 48.9 393,000
20 February 2025 637,122 49.2 313,000
Total 6,705,585 3,687,000
The total nominal value of the shares repurchased for cancellation was £67,056 representing 2.9% of the issued share capital.
The Company issued the following shares during the year to 28 February 2025:
Date Number of shares
Price per share
(p)
Net proceeds of
shares issued
(£)
16 May 2024 37, 538 65.1 25,000
15 August 2024 4,742,400 56.7 2,689,000
29 October 2024 12,619,732 52.7 6,656,000
12 December 2024 7,692,508 53.8 4,141,000
10 January 2025 2,022,911 52.3 1,058,000
23 January 2025 3,920,873 50.8 1,992,000
Totals 16,561,000
1
Shares issued as a result of reduced adviser charges.
2
Shares issued under the Dividend Reinvestment Scheme (DRIS).
Excluding the value of shares issued under the DRIS, the total value net of share issue costs was £12,814,000 (2024: £17,401,000).
This is shown in the Cash Flow Statement.
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Octopus AIM VCT plc Annual report 2025
15. Financial instruments
The Company’s financial instruments comprise of equity investments, loan notes, OEICs, cash balances, investments in money
market funds and debtors and creditors. The Company holds financial assets in accordance with its investment policy of
investing mainly in a portfolio of VCT qualifying AIM-traded securities whilst holding a proportion of its assets in cash or near-cash
investments in order to provide a reserve of liquidity.
28 February 2025
£’000
29 February 2024
£’000
Financial assets at fair value through profit or loss
Fixed asset investments
81,535
80,350
Money market securities
18,204
33,641
OEICs
14,283
13,897
Total financial assets at fair value through profit
or loss
114,022
127,888
Financial assets measured at amortised cost
Cash at bank
6,646
1,280
Debtors
252
666
Total financial assets measured at amortised cost 6,898
1,946
Financial liabilities measured at amortised cost
Accruals and creditors
(5,537)
(725)
Total financial liabilities measured at amortised cost (5,537)
(725)
The Company holds seven qualifying, unquoted investments: Popsa Holdings Limited, Rated People Limited, Airnow plc, The Food
Marketplace, Alusid Limited, Hasgrove Limited and Intelligent Ultrasound Group Limited. The Company also holds two unquoted
loan note investments in Strip Tinning Holdings plc and Haydale Graphene Industries plc, both held at cost. Unquoted investments
and loan notes are included in fixed asset investments in the table above.
Fixed and current asset investments (see notes 10 and 11) are initially recognised at FVTPL. For quoted investments this is bid price.
The Directors believe that the fair value of the assets held at the year end is equal to their book value. Unquoted investments are
valued in accordance with IPEV Guidelines.
The Company’s creditors and debtors are initially recognised at fair value, which is usually the transaction cost, and subsequently
measured at amortised cost using the effective interest method.
The fair value of all other financial assets and liabilities is represented by their carrying value in the balance sheet. The Directors
believe that the fair value of the assets held at the year end is equal to their book value.
Notes to the financial statements continued
69
Octopus AIM VCT plc Annual report 2025
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16. Financial risk management
In carrying on its investment activities, the Company is exposed to various types of risk associated with the financial instruments
and markets in which it invests. The most significant types of financial risk facing the Company are market risk, interest rate risk,
credit risk and liquidity risk. The Company’s approach to managing these risks is set out below together with a description of the
nature and amount of the financial instruments held at the balance sheet date.
Market risk
The Company’s strategy for managing investment risk is determined with regard to the Company’s investment objective, as
outlined on page 21. The management of market risk is part of the investment management process and is a central feature
of venture capital investment. The Company’s portfolio is managed in accordance with the policies and procedures described
in the Corporate Governance Statement on pages 36 to 39, having regard to the possible effects of adverse price movements,
and other macroeconomic effects on the market such as the cost of living crisis, rising inflation and geopolitical unrest with the
objective of maximising overall returns to shareholders. Investments in smaller companies, by their nature, usually involve a higher
degree of risk than investments in larger companies quoted on a recognised stock exchange, though the risk can be mitigated to
a certain extent by diversifying the portfolio across business sectors and asset classes. The Company’s portfolio is well diversified
with holdings in technology, industrials, pharmaceuticals, support services and many more growing sectors. The overall disposition
of the Company’s assets is regularly monitored by the Board.
Details of the Company’s investment portfolio at the balance sheet date are set out in the Investment Manager’s Review on
pages 9 to 11.
By value, 56% (2024: 54%) of the Company’s net assets comprises equity securities listed on the London Stock Exchange or
admitted to trading on AIM. In the context of the continued short-term market volatility caused by the unstable economic
environment, we have maintained the sensitivity analysis at 20%, consistent with 2024. Therefore, a decrease in the bid price of
these securities as at 28 February 2025 would have decreased net assets and the total return for the year by £13,015,000 (2024:
£13,901,000); and an equivalent change in the opposite direction would have increased net assets for the year by the same
amount.
OEIC investments comprised 12% of the Company’s net assets by value (2024: 11%). A 20% decrease (2024: 20%) in the price of
these securities at 28 February 2025 would have decreased net assets by £2,857,000 (2024: £2,779,000); and an equivalent change
in the opposite direction would have increased net assets for the year by the same amount.
Unquoted investments comprised 14% of the Company’s net assets by value (2024: 8%). A 20% decrease (2024: 20%) in the
price of these securities at 28 February 2025 would have decreased net assets by £3,292,000 (2024: £2,169,000); and an equivalent
change in the opposite direction would have increased net assets for the year by the same amount.
Interest rate risk
Some of the Company’s financial assets are interest-bearing. As a result, the Company is exposed to fair value interest rate risk
due to fluctuations in the prevailing levels of market interest rates.
Fixed rate
The table below summarises weighted average effective interest rates for the interest-bearing loans made to portfolio companies.
28 February 2025
29 February 2024
Total loan
portfolio
by value
£’000
Weighted
average
interest rate
%
Weighted
average
time for
which rate
is fixed
Years
Total loan
portfolio
by value
£’000
Weighted
average
interest rate
%
Weighted
average time
for which
rate is fixed
Years
Unquoted interest bearing loans
1,200 10 5.1
1,080 10.0 5.1
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Octopus AIM VCT plc Annual report 2025
16. Financial risk management continued
Floating rate
The Company’s floating rate investments comprise cash held on interest bearing money market securities. The benchmark rate
which determines the rate of interest receivable on such investments is the bank base rate, which was 4.5% at 28 February 2025
(2024: 5.25%). The amounts held in floating rate investments at the balance sheet date were as follows:
28 February 2025
£’000
29 February 2024
£’000
Money market funds
18,204
33,641
18,204
33,641
A 1% increase in the base rate would increase income receivable from these investments and the total return for the year by
£182,000 (2024: 336,000).
Every 1% increase and decrease in the base rate would increase income receivable from these investments for the year by £182,000
(2024: £336,000).
Credit risk
Credit risk is the risk that a counterparty to a financial instrument will fail to discharge an obligation or commitment that it has
entered into with the Company. Octopus and the Board carry out a regular review of counterparty risk. The carrying values of
financial assets represent the maximum credit risk exposure at the balance sheet date.
28 February 2025
£’000
29 February 2024
£’000
Loan notes
1,200
1,080
Cash on deposit
6,646
1,280
Accrued dividends and interest receivable
194
167
Money market funds
18,204
33,641
26,244
36,168
Other than cash, loan notes or liquid money market funds, there were no significant concentrations of credit risk to counterparties
at 28 February 2025 or 29 February 2024. By value, no individual bank holding or fixed rate note investment exceeded 11% of the
Company’s net assets at 28 February 2025 (2024: 9%).
The Company’s interest-bearing deposit and current accounts are maintained with HSBC and Money Market Funds held
with BlackRock, HSBC and JP Morgan. The risk of loss to this cash is deemed to be low due to the historical credit ratings and
a current Moody’s rating of Aaa for HSBC, JP Morgan and BlackRock Money Market Funds. The Investment Manager has in
place a monitoring procedure in respect of counterparty risk which is reviewed on an ongoing basis. Should the credit quality or
the financial position of these counterparties deteriorate significantly, the Investment Manager will move the cash holdings to
another bank.
Credit risk relating to listed money market securities is mitigated by investing in a portfolio of investment instruments of high credit
quality comprising major UK companies and institutions.
Those assets of the Company which are traded on recognised stock exchanges are held on the Company’s behalf by third-party
sub-custodians (for example, BlackRock in the case of listed money market securities and Octopus Investments Limited in the case
of quoted equity securities). Bankruptcy or insolvency of a custodian could cause the Company’s rights with respect to securities
held by the custodian to be delayed or limited or by bankruptcy proceedings.
Liquidity risk
The Company’s financial assets include investments in AIM-traded companies, which by their nature involve a higher degree of risk
than investments on the main market, as well as unquoted securities which are not traded on a recognised stock exchange and
which generally may be illiquid. As a result, the Company may not be able to realise some of its investments in these instruments
quickly at an amount close to their fair value in order to meet its liquidity requirements, or to respond to specific events such as
deterioration in the creditworthiness of any particular issuer.
Notes to the financial statements continued
71
Octopus AIM VCT plc Annual report 2025
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16. Financial risk management continued
The Company’s listed money market securities are considered
to be readily realisable as they are of high credit quality as
outlined above.
The Company’s OEIC investments are considered to be
readily realisable as under the terms of the product, funds
can be withdrawn at any point and received within seven
working days. There is a risk that the value of the investment
will fall, but this is monitored continually by the Investment
Manager.
The Company’s liquidity risk is managed on a continuing
basis by the Investment Manager in accordance with policies
and procedures laid down by the Board. The Company’s
overall liquidity risks are monitored on a quarterly basis by
the Board.
The Company maintains sufficient investments in cash and
readily realisable securities to pay accounts payable and
accrued expenses. At 28 February 2025 these investments
were valued at £39,134,000 (2024: £48,818,000). The
Company has no debt, therefore no maturity analysis is
required as all financial liabilities fall due within twelve
months.
17. Events after the end of the reporting period
The following events occurred between the balance sheet
date and the signing of these financial statements.
The following shares have been allotted since the year end:
• 27 March 2025: 8,893,138 shares at a price of 52.2p per
share.
• 22 May 2025: 43,183 shares at a price of 50.1p per share.
The following shares have been bought back since the
year end:
• 20 March 2025: 1,053,974 shares at a price of 47.37p per
share.
• 16 April 2025: 888,536 shares at a price of 45.45p per
share.
• 15 May 2025: 590,908 shares at a price of 47.27p per
share.
• 19 June 2025: 774,234 shares at a price of 49.59p per
share.
18. Contingencies, guarantees and financial
commitments
At 28 February 2025 there were no commitments in respect
of investments approved by the Investment Manager but not
yet completed (2024: £nil).
19. Transactions with the Investment Manager
The Company has employed Octopus throughout the year
as Investment Manager. Octopus has also been appointed
the custodian of the Company’s investments under a
custodian agreement.
The Company has paid Octopus £2,079,000 (2023: £2,221,000)
in the year as a management fee. The management fee is
payable quarterly in arrears and is based on 2.0% of net
assets at six-month intervals.
The Company receives a reduction in the management
fee for the investments in other Octopus managed funds,
being the Multi Cap Income Fund, Micro Cap Growth Fund
and Future Generations Fund, to ensure the Company is
not double charged on these products. This amounted to
£86,000 in the year to 28 February 2025 (2024: £80,000).
For further details please refer to note 3. Details of amounts
invested in Octopus managed funds can be found on
page 66.
20. Related party transactions
As at 28 February 2025, Octopus Investments Nominees
Limited (OINL) held nil shares (2024: nil) in the Company as
beneficial owner from shareholders to protect their interests
after delays or errors with shareholder instructions and other
similar administrative tasks. Throughout the period to 28
February 2025 OINL purchased nil shares (2024: 2,791) at a
cost of £nil (2024: £2,000) and sold nil shares (2024: 10,389)
for proceeds of £nil (2024: £7,000). In accordance with the
listing rules, this is classed as a related party transaction as
Octopus, the Investment Manager, and OINL are part of the
same group of companies. Any such future transactions,
where OINL takes over the legal and beneficial ownership
of Company shares will be announced to the market and
disclosed in annual and half yearly reports.
Octopus received £nil (2024: £nil) transaction fees and
directors’ fees from portfolio companies.
The Company holds £4,350,000 (2024: £4,000) of cash on
behalf of the Company and AIM VCT 2 plc, in accordance
with their joint prospectus. Of this, £2,610,000 (2024: £2,000)
is attributable to the Company.
Details of the Directors and their remuneration can be found
in the Directors’ Remuneration Report on pages 42 to 44.
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Octopus AIM VCT plc Annual report 2025
Octopus AIM VCT plc was launched as Close AIM VCT PLC in
the spring of 1998 and raised £10.1 million from private investors
through an issue of Ordinary shares.
Between October 2000 and March 2001 a further £20.0 million
was raised through an issue of C shares. Furthermore, between
16 March 2004 and final closing on 5 April 2004 the Company
raised £3.3 million by way of a D share issue.
The C Shares were merged and converted into Ordinary shares
on 31 May 2004 at a conversion ratio determined by a price
mechanism related to the respective net assets per share of both
the Ordinary shares and C shares at 29 February 2004 (which
resulted in C Shareholders receiving 1.0765 Ordinary shares for
each C share held).
A further £15.0 million was raised between 6 January 2005 and
8 April 2005 through an issue of new D shares.
On 31 May 2008, the Ordinary shares converted into D shares at a
conversion ratio of 0.5448 D shares for each Ordinary share. All of
the D shares were then re-designated into new Ordinary shares.
With effect from 1 August 2008, the management of the
Company was transferred to Octopus.
On 4 August 2010, the share capital was restructured and each
existing Ordinary share of 50p was subdivided into one Ordinary
share of 1p and one deferred share of 49p. The deferred shares
had no economic value and were bought back by the Company
for an aggregate amount of 1p and cancelled.
On 12 August 2010, following approval at the Extraordinary
General Meeting on 4 August 2010, shareholders of Octopus
Phoenix VCT had their shares converted into Octopus AIM VCT
shares on a relative NAV basis using the conversion factor of
0.42972672. On the same day, Octopus Phoenix VCT was placed
into members’ voluntary liquidation.
The offer for subscription in the prospectus dated 9 July 2010
relating to the issue of new shares in connection with the merger
with Octopus Phoenix VCT Plc was extended by a supplemental
prospectus and closed on 19 April 2011 raising £10 million. A
subsequent offer raised £1.9 million, closing on 5 April 2012.
A further offer was launched on 25 April 2012 and closed on
31 July 2012. The offer resulted in the issue of 2,843,092 new
shares, raising a total of £2.6 million.
On 23 October 2012, the Company announced an Enhanced
Buyback Facility (EBB) in respect of up to 50% of the issued share
capital. The EBB closed on 31 January 2013. As a result of the
EBB, the Company repurchased 10,801,537 Ordinary shares and
10,289,443 new Ordinary shares were issued.
An offer for subscription of up to £10 million, which opened on
1 February 2013 and closed on 17 December 2013, raised
£9.4 million. The Company opened a non-prospectus offer to
raise £4.1 million that opened on 2 February 2014 and closed fully
subscribed on 28 March 2014. Since then the Company has raised
additional investment through further fundraise as follows:
• Combined total up to £20 million with a £10 million over-
allotment facility with Octopus AIM VCT 2 plc during the year
to 29 February 2016;
• Combined total up to £16.3 million with a £6 million over-
allotment facility with Octopus AIM VCT 2 plc during the year
to 28 February 2017;
• Combined total up to £30 million with a £10 million over-
allotment facility with Octopus AIM VCT 2 plc during the year
to 28 February 2018;
• Combined total up to £20 million with a £10 million over-
allotment facility with Octopus AIM VCT 2 plc during the year
to 28 February 2019;
• Combined total up to £20 million with a £10 million over-
allotment facility with Octopus AIM VCT 2 plc during the year
to 29 February 2020;
• Combined total up to £20 million with a £10 million over-
allotment facility with Octopus AIM VCT 2 plc during the year
to 28 February 2021;
• Combined total up to £30 million with a £10 million over-
allotment facility with Octopus AIM VCT 2 plc during the year
to 28 February 2022;
• Combined total up to £20 million with a £10 million over-
allotment facility with Octopus AIM VCT 2 plc during the year
to 28 February 2023;
• Combined total up to £20 million with a £10 million over-
allotment facility with Octopus AIM VCT 2 plc during the year
to 28 February 2024; and
• Combined total up to £20 million with a £10 million over-
allotment facility with Octopus AIM VCT 2 plc during the year
to 28 February 2025.
About VCTs
VCTs were introduced in the Finance Act 1995 to provide a means
for private individuals to invest in unlisted companies in the
UK. Subsequent Finance Acts have introduced changes to VCT
legislation. The tax benefits currently available to eligible new
investors in VCTs include:
• up to 30% upfront income tax relief;
• exemption from income tax on dividends paid; and
• exemption from capital gains tax on disposals of shares
in VCTs.
Shareholder information
and contact details
73
Octopus AIM VCT plc Annual report 2025
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The Company has been approved as a VCT by HMRC. In order to
maintain its approval, the Company must comply with certain
requirements on a continuing basis including the provisions of
chapter 3 of the Income Tax Act 2007; in particular s280A:
• at least 80% of the Company’s investments must comprise
‘qualifying holdings’
1
(as defined in the legislation);
• at least 70% of the qualifying holdings must be invested into
Ordinary shares with no preferential rights (30% for funds
invested before 6 April 2011);
• no single investment made can exceed 15% of the total
company value at the time of investment; and
• a minimum of 10% of each qualifying investment must be in
Ordinary shares with no preferential rights.
1
A ‘qualifying holding’ consists of up to £5 million invested in any one year in new
shares or securities in a company admitted to trading on AIM (or an unquoted UK
company) which is carrying on a qualifying trade and whose gross assets do not
exceed a prescribed limit at the time of investment. The definition of a ‘qualifying
trade’ excludes certain activities such as property investment and development,
financial services and asset leasing.
Dividends
Dividends will be paid by the Registrar on behalf of the
Company. Shareholders who wish to have dividends paid
directly into their bank account rather than by cheque
sent to their registered address can complete a mandate
form for this purpose or complete an instruction electronically
by visiting the Computershare Investor Centre at:
www-uk.computershare.com/investor/.
Queries relating to dividends, shareholdings or requests for
mandate forms should be directed to Computershare by calling
0370 703 6325 (calls are charged at the standard geographic rate
and will vary by provider. Calls from outside the United Kingdom
will be charged at the applicable international rate. Lines are
open between 9.00am-5.30pm, Monday to Friday, excluding
public holidays in England and Wales), or by writing to them at:
The Registrar
Computershare Investor Services PLC
The Pavilions
Bridgwater Road
Bristol
BS99 6ZZ
Dividend Reinvestment Scheme (DRIS)
The Company established a DRIS in 2014, under which
shareholders are given the opportunity to automatically reinvest
future dividend payments by subscribing for new Ordinary shares.
This allows participating shareholders to re-invest the growth
in their shareholdings and, subject to personal circumstances,
benefit from additional income tax reliefs.
Any shareholder wishing to reinvest their dividends can
request a DRIS instruction form by calling Computershare on
0370 703 6325. The application form and rules can also be
found in the Document Library on the Octopus website:
https://octopusinvestments.com/our-products/venture-
capital-trusts/octopus-aim-vcts/shareholder-information/.
Share price
The Company’s share price can be found on various financial
websites, such as www.londonstockexchange.com, by typing
the following TIDM/EPIC code in the ‘Quotes search’:
Ordinary shares
TIDM/EPIC code OOA
Latest share price 19 June 2025 49.5p per share
Buying and selling shares
The Company’s Ordinary shares can be bought and sold in the
same way as any other company quoted on the London Stock
Exchange via a stockbroker. There may be tax implications in
respect of selling all or part of your holdings, so shareholders
should contact their independent financial adviser if they have
any queries.
Buyback of shares
The Company operates a policy of buying its own shares for
cancellation as they become available, and envisages that
purchases will be made at up to a 5% discount to the prevailing
NAV. The Company is, however, unable to buy back shares directly
from shareholders. If you are considering selling your shares
or trading in the secondary market, please contact Panmure
Liberum Limited, the Company’s broker.
Panmure Liberum Limited is able to provide details of close
periods (when the Company is prohibited from buying in shares)
and details of the price at which the Company has bought
its shares. Panmure Liberum Limited can be contacted
as follows:
Chris Lloyd 020 7886 2716 chris.lloyd@panmureliberum.com
Paul Nolan 020 7886 2717 paul.nolan@panmureliberum.com
Secondary market
UK income tax payers, aged 18 or over, can purchase shares in the
secondary market and benefit from:
• Tax free dividends.
• Realised gains not being subject to capital gains tax
(although any realised losses are not allowable).
• No minimum holding period.
• No need to include VCT dividends in annual tax returns.
The UK tax treatment of VCTs is on a first-in and first-out basis
and therefore tax advice should be obtained before shareholders
dispose of their shares.
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Notification of change of address
Communications with shareholders are mailed to the
registered address held on the share register. In the event
of a change of address or other amendment this should
be notified to Computershare, under the signature of the
registered holder, or via the Computershare online share portal
at: www-uk.computershare.com/investor/. Computershare’s
contact details are provided on page 72.
Other information for shareholders
Previously published Annual Reports and Half-yearly Reports are
available for viewing on the Investment Manager’s website at
https://octopusinvestments.com/our-products/venture-
capital-trusts/octopus-aim-vcts/shareholder-information/
by navigating to Investor, Shareholder Information, Octopus AIM
VCT plc. Other statutory information can also be found there.
For any queries regarding access to this, please call Octopus on
0800 316 2295.
Electronic communications
We also publish reports and accounts and all other correspondence
electronically. This cuts the cost of print and reduces the impact
on the environment. If, in future, you would prefer to receive a
letter or email telling you a report is available to view or to receive
documents by email, please contact Octopus on 0800 316 2295
or Computershare on 0370 703 6325. Alternatively, you can sign
up to receive e-communications via the Computershare online
shareholder portal: www-uk.computershare.com/investor/.
Warning to shareholders
Many companies are aware that their shareholders have received
unsolicited phone calls or correspondence concerning investment
matters. These are typically from overseas based ‘brokers’ who
target UK shareholders offering to sell them what often turn out
to be worthless or high risk shares in US or UK investments. They
can be very persistent and extremely persuasive. Shareholders are
therefore advised to be wary of any unsolicited advice, offer to
buy shares at a discount or offer for free company reports.
Please note that it is very unlikely that either the Company,
Octopus or the Registrar would make unsolicited telephone
calls to shareholders and that any such calls would relate only
to official documentation already circulated to shareholders and
would never be in respect of investment advice.
If you are in any doubt about the authenticity of an unsolicited
phone call, please call Octopus on 0800 316 2295.
The Financial Conduct Authority have also issued guidelines
on how to avoid share fraud and further information can be
found on their website: www.fca.org.uk/consumers/scams/
investment-scams/share-fraud-and-boiler-room-scams.
You can report any share fraud to them by calling 0800 111 6768.
Shareholder information and contact details continued
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Alternative performance measure (APM)
A financial measure of historical or future financial performance,
financial position, or cash flows, other than a financial measure
defined or specified in the applicable financial reporting
framework. These APMs will help shareholders to understand and
assess the Company’s progress. A number of terms within this
glossary have been identified as APMs.
Net asset value or NAV
The value of the Company’s total assets less liabilities. It is equal
to the total shareholders’ funds.
Net asset value per share or NAV per share
The sum of the underlying assets less the liabilities of the
Company divided by the total number of shares in issue.
Ongoing charges ratio (APM)
The ongoing charges ratio has been calculated using the AIC
recommended methodology and excludes irrecoverable VAT,
exceptional costs and trail commission. The figure shows the
annual percentage reduction in shareholder returns as a result
of recurring operational expenses. It informs shareholders
of the likely costs that will be incurred in managing the fund in
the future.
This is calculated by expressing expenses of £2,731,000 which
includes the expenses listed out in note 3 and 4 on pages 59
and 60 excluding irrecoverable VAT, exceptional costs and trail
commission, as a percentage of average net assets during the
year of £121,076,190.
Total return (APM)
Total return is calculated as movement in NAV per share in the
period plus dividends paid in the period. Total return per share
enables shareholders to evaluate more clearly the performance
of the Company, as it reflects the underlying value of the portfolio
at the reporting date.
Total return % (APM)
Total return % is calculated as movement in NAV per share in
the period plus dividends paid in the period, divided by the NAV
per share at the beginning of the period. Total return % on the
NAV per share enables shareholders to evaluate more clearly the
performance of the Company, as it reflects the underlying value
of the portfolio at the reporting date.
Money Market Fund (MMF)
A mutual fund that invests in highly liquid, short-term
instruments. These instruments include cash, cash equivalent
securities, and high credit rating debt based securities with a
short-term maturity. They are intended to offer investors high
liquidity with a low level of risk.
Open Ended Investment Company (OEIC)
A type of investment fund that invests in equities, bonds and
other securities. The price of the shares is based on the underlying
assets of the fund. These are highly liquid as new shares can be
created to meet investor demand and the fund will cancel shares
of investors who exit the fund.
Glossary of terms
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Directors and advisers
Board of Directors
Neal Ransome (Chair)
Andrew Boteler
Joanne Parfrey
Louise Nash
Company Number
Registered in England No: 03477519
Legal Entity Identifier (LEI)
213800C5JHJUQLAFP619
Secretary and Registered Office
Octopus Company Secretarial Services Limited
33 Holborn
London
EC1N 2HT
Investment and Administration Manager
Octopus Investments Limited
33 Holborn
London
EC1N 2HT
Tel: 0800 316 2295
www.octopusinvestments.com
Custodians
Octopus Investments Limited
33 Holborn
London
EC1N 2HT
Bankers
HSBC Bank Plc
31 Holborn
London
EC1N 2HR
LEI: 213800C5JHJUQLAFP619
Independent Auditor
BDO LLP
55 Baker Street
London
W1U 7EU
Tax Adviser
James Cowper Kreston
The White Building
1-4 Cumberland Place
Southampton
SO15 2NP
VCT Status Adviser
Shoosmiths LLP
Apex Plaza
Forbury Road
Reading
RG1 1SH
Registrar
Computershare Investor Services PLC
The Pavilions
Bridgwater Road
Bristol
BS99 6ZZ
Tel: 0370 703 6325
(Calls are charged at the standard geographic rate and will vary
by provider. Calls from outside the United Kingdom will
be charged at the applicable international rate.)
www.computershare.com/uk
www-uk.computershare.com/investor/
Corporate Broker
Panmure Liberum Limited
Ropemaker Place, Level 12
25 Ropemaker Street
London
EC2Y 9LY
Tel: 020 3100 2000
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Notice is hereby given that the Annual General Meeting
of Octopus AIM VCT plc will be held at 33 Holborn, London,
EC1N 2HT on 23 July 2025 at 10.30am for the purposes of
considering and, if thought fit, passing the following resolutions,
of which Resolutions 1 to 9 and 14 will be proposed as Ordinary
Resolutions and Resolutions 10 to 13 will be proposed as Special
Resolutions:
Ordinary Business
1. To receive and adopt the annual report and accounts for the
year to 28 February 2025.
2. To approve a final dividend of 2.5p per Ordinary share.
3. To approve the Directors’ remuneration report.
4. To re-elect Andrew Boteler as a Director.
5. To re-elect Joanne Parfrey as a Director.
6. To re-elect Louise Nash as a Director.
7. To re-appoint BDO LLP as auditor of the Company in
accordance with Section 489 of the Companies Act 2006
(the ‘Act’), until the conclusion of the next general meeting
of the Company at which audited accounts are laid before
members, and to authorise the Directors to determine their
remuneration.
Special Business
To consider and, if thought fit, pass Resolutions 8, 9 and 14
as Ordinary Resolutions and Resolutions 10 to 13 as Special
Resolutions:
8. Authority to allot relevant securities
THAT, in addition to existing authorities, the Directors
be and are generally and unconditionally authorised in
accordance with s551 of the Act to exercise all the powers
of the Company to allot shares in the Company up to
a maximum nominal amount of £467,575 (representing
approximately 20% of the Ordinary share capital in issue at
the date of this Notice) such authority to expire at the earlier
of the conclusion of the Company’s AGM next following the
passing of this Resolution and the expiry of 15 months from
the passing of this Resolution (unless previously renewed,
varied or revoked by the Company in a general meeting) but
so that such authority allows the Company to make offers or
agreements before the expiry thereof, which would or might
require relevant securities to be allotted after the expiry of
such authority.
9. Authority to allot relevant securities under the DRIS
THAT, in addition to existing authorities, the Directors of the
Company be and hereby are generally and unconditionally
authorised in accordance with Section 551 of the Act to
exercise all the powers of the Company to allot shares in the
Company up to a maximum nominal amount of £116,894
in connection with the Company’s dividend reinvestment
scheme (representing approximately 5% of the Ordinary
share capital in issue as at the date of this Notice) provided
that the authority conferred by this Resolution shall expire on
the date falling 15 months from the date of the passing of
this Resolution (unless previously renewed, varied or revoked
by the Company in general meeting) save that this authority
shall allow the Company to make, before the expiry of this
authority, any offers or agreements which would or might
require shares to be allotted or rights to be granted after
such expiry and the Directors may allot shares in pursuance
of any such offer or agreement notwithstanding the expiry
of such authority.
10. Empowerment to make allotments of equity securities
THAT, conditional upon the passing of Resolution 9 above,
and in addition to existing authorities, the Directors of the
Company be and are hereby empowered pursuant to s571 of
the Act to allot or make offers or agreements to allot equity
securities (as defined in s560(1) of the Act) for cash pursuant
to the authority granted by Resolution 9 as if s561 of the Act
did not apply to any such allotment and so that:
(a) reference to allotment of equity securities in this
Resolution shall be construed in accordance with s560(2)
of the Act; and
(b) the power conferred by this Resolution shall enable the
Company to make any offer or agreement before the
expiry of the said power which would or might require
equity securities to be allotted after the expiry of the said
power and the Directors may allot equity securities in
pursuance of such offer or agreement notwithstanding
the expiry of such power.
The power provided by this Resolution shall expire on the date
falling on the earlier of the conclusion of the Company’s AGM
next following the passing of this Resolution and 15 months
from the date of the passing of this Resolution (unless
previously renewed, varied or revoked by the Company in
general meeting).
Notice of Annual General
Meeting
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Octopus AIM VCT plc Annual report 2025
11. Empowerment to make allotments of equity securities
under the DRIS
THAT, conditional upon the passing of Resolution 10 above
and in addition to existing authorities, the Directors of the
Company be and hereby are empowered pursuant to Section
571 of the Act to allot or make offers or agreements to allot
equity securities (which expression shall have the meaning
ascribed to it in Section 560(1) of the Act) for cash pursuant
to the authority granted by Resolution 10 above, as if Section
561 of the Act did not apply to any such allotment and
so that:
(a) reference to allotment of equity securities in this
Resolution shall be construed in accordance with Section
560(2) of the Act; and
(b) the power conferred by this Resolution shall enable
the Company to make any offer or agreement before
the expiry of the said power which would or might
require equity securities to be allotted after the expiry
of the said power and the Directors may allot equity
securities in pursuance of any such offer or agreement
notwithstanding the expiry of such power.
The power provided by this Resolution shall expire on the
date falling 15 months from the date of the passing of this
Resolution (unless previously renewed, varied or revoked by
the Company in general meeting).
12. Authority to make market purchases
THAT, in addition to existing authorities, the Company be
and is hereby generally and unconditionally authorised to
make market purchases (within the meaning of s693(4)
of the Act) of Ordinary shares of 1p each in the Company
(‘Ordinary shares’) provided that:
(a) the maximum number of Ordinary shares so authorised
to be purchased shall not exceed 35,044,725 Ordinary
shares, representing approximately 14.99% of the
Company’s issued share capital at the date of this
Notice;
(b) the minimum price which may be paid for an Ordinary
share shall be its nominal value;
(c) the maximum price, exclusive of expenses, which may
be paid for an Ordinary share is an amount equal to
the higher of (i) 105% of the average of the middle
market quotation for an Ordinary share taken from the
London Stock Exchange Daily Official List for the five
business days immediately preceding the day on which
the Ordinary share is contracted to be purchased; and
(ii) the amount stipulated by Article 5(6) of the Market
Abuse Regulation;
(d) the authority conferred comes to an end at the
conclusion of the next AGM of the Company or upon the
expiry of 15 months from the passing of this Resolution,
whichever is the earlier; and
(e) that the Company may enter into a contract to
purchase its Ordinary shares under this authority prior
to the expiry of this authority which would or might
be completed wholly or partly after the expiry of this
authority.
13. Cancellation of share premium
THAT, subject to the sanction of the High Court, the amount
standing to the credit of the share premium account of the
Company, at the date an order is made confirming such
cancellation by the Court, be and hereby is cancelled, and
the amount by which the share capital is so reduced be
credited to a reserve of the Company.
14. Continuation of the Company as a VCT
THAT the Company continue as a Venture Capital Trust.
By Order of the Board
Neal Ransome
Chair
20 June 2025
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Notes:
(a) A member entitled to attend and vote at the AGM may
appoint one or more proxies to attend and vote on his or her
behalf. A proxy need not be a member.
(b) Pursuant to Regulation 41 of the Uncertificated Securities
Regulations 2001, entitlement to attend and vote at the
meeting and the number of votes which may be cast thereat
will be determined by reference to the Register of Members
of the Company at close of business on the day which is two
days before the day of the meeting. Changes to entries on
the Register of Members after that time shall be disregarded
in determining the rights of any person to attend and vote at
the meeting.
(c) A form of proxy is enclosed which, to be effective,
must be completed and delivered to the Company’s
registrars, Computershare Investor Services PLC,
The Pavilions, Bridgwater Road, Bristol, BS99 6ZZ or
alternatively, you may register your proxy electronically at
www.investorcentre.co.uk/eproxy, in each case, so as
to be received by no later than 48 hours before the time
the AGM is scheduled to begin. To vote electronically, you
will be asked to provide your Control Number, Shareholder
Reference Number and PIN which are detailed on your
proxy form.
Appointment of a proxy, or any CREST proxy instruction
(as described in paragraph (d) below) will not preclude a
member from subsequently attending and voting at the
meeting should he or she choose to do so. This is the only
acceptable means by which proxy instructions may be
submitted electronically.
(d) To appoint one or more proxies or to give an instruction to
a proxy (whether previously appointed or otherwise) via the
CREST system, CREST messages must be received by the
issuer’s agent (ID number 3RA50) not later than 48 hours
(excluding non-working days) before the time appointed for
holding the meeting. For this purpose, the time of receipt
will be taken to be the time (as determined by the time
stamp generated by the CREST system) from which the
issuer’s agent is able to retrieve the message. After this time
any change of instructions to a proxy appointed through
CREST should be communicated to the proxy by other
means. CREST personal members or other CREST sponsored
members, and those CREST members who have appointed
voting service provider(s) should contact their CREST sponsor
or voting service provider(s) for assistance with appointing
proxies via CREST. For further information on CREST
procedures, limitations and system timings please refer to
the CREST manual. The Company may treat as invalid a
proxy appointment sent by CREST in the circumstances set
out in Regulation 35(5)(a) of the Uncertificated Securities
Regulations 2001.
(e) Any person receiving a copy of the Notice as a person
nominated by a member to enjoy information rights under
Section 146 of the Companies Act 2006 (a ‘Nominated
Person’) should note that the provisions in notes (a) and (b)
above concerning the appointment of a proxy or proxies to
attend the meeting in place of a member, do not apply to
a Nominated Person as only shareholders have the right to
appoint a proxy. However, a Nominated Person may have a
right under an agreement between the Nominated Person
and the member by whom he or she was nominated to be
appointed, or to have someone else appointed, as a proxy
for the meeting. If a Nominated Person has no such proxy
appointment right or does not wish to exercise it, he/she
may have a right under such an agreement to give
instructions to the member as to the exercise of voting rights
at the meeting.
(f) Section 319A of the Companies Act 2006 requires the
Directors to answer any question raised at the AGM which
relates to the business of the meeting although no answer
need be given (a) if to do so would interfere unduly with
the preparation of the meeting or involve disclosure of
confidential information; (b) if the answer has already been
given on the Company’s website; or (c) if it is undesirable
in the best interests of the Company or the good order of
the meeting.
Questions from our shareholders in relation to the AGM can
be sent via email to AimAGM@octopusinvestments.com.
The Company may, however, elect to provide answers to
questions raised within a reasonable period of days after the
conclusion of the AGM.
(g) Members satisfying the thresholds in Section 527 of the
Companies Act 2006 can require the Company to publish
a statement on its website setting out any matter relating
to (a) the audit of the Company’s accounts (including the
auditor’s report and the conduct of the audit) that are to
be laid before the AGM; or (b) any circumstances connected
with an auditor of the Company ceasing to hold office
since the last AGM, that the members propose to raise at
the meeting. The Company cannot require the members
requesting the publication to pay its expenses. Any statement
required to be placed on the website must also be sent to
the Company’s auditors no later than the time it makes its
statement available on the website. The business which may
be dealt with at the meeting includes any statement that
the Company has been required to publish on its website.
Notice of Annual General Meeting continued
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(h) Under Sections 338 and 338A Companies Act 2006, members
meeting the threshold requirements in those sections have
the right to require the Company:
(i) to give, to members of the Company entitled to receive
notice of the meeting, notice of a resolution which may
properly be moved and is intended to be moved at the
meeting; and/or
(ii) to include in the business to be dealt with at the meeting
any matters (other than a proposed resolution) which
may be properly included in the business.
A resolution may properly be moved or a matter may
properly be included in the business unless:
(i) (in the case of a resolution only) it would, if passed, be
ineffective (whether by reason of inconsistency with any
enactment or the Company’s constitution or otherwise);
(ii) it is defamatory of any person; or
(iii) it is frivolous or vexatious.
Such a request may be in hard copy form or in electronic
form, and must identify the resolution of which notice is to
be given or the matter to be included in the business, must
be authorised by the person or persons making it, must be
received by the Company not later than six weeks before the
meeting, and (in the case of a matter to be included in the
business only) must be accompanied by a statement setting
out the grounds for the request.
(i) A copy of the Notice of AGM and the information required
by Section 311A Companies Act 2006 is included on the
Company’s website, www.octopusinvestments.com
under Venture Capital Trusts. Copies of the Directors’ letters
of appointment, the register of Directors’ interests in the
Ordinary shares of the Company kept in accordance with
the Listing Rules and a copy of the Memorandum and
Articles of Association of the Company will be available for
inspection at the registered office of the Company during
usual business hours on any weekday from the date of this
notice until the AGM, and at the place of that meeting for at
least 15 minutes prior to the commencement of the meeting
until its conclusion.
(j) As at 19 June 2025 (being the last practicable date prior to
the publication of this Notice) the Company’s issued share
capital consists of 233,787,355 Ordinary shares, carrying one
vote each. Therefore, the total voting rights in the Company
as at 19 June 2025 are 233,787,355.
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Octopus AIM VCT plc