FORESIGHT ENTERPRISE VCT PLC
LEI: 213800MWJNR3WZZ3ZP42
22 April 2026
Final results
31 December 2025
Foresight Enterprise VCT plc, managed by Foresight Group LLP, today announces the final results for the year ended 31 December 2025.
These results were approved by the Board of Directors on 21 April 2026.
The Annual Report will shortly be available in full at www.foresightenterprisevct.com. All other statutory information can also be found there.
FINANCIAL HIGHLIGHTS
- Adding back dividends paid of 5.9p to Net Asset Value (“NAV”) at the year-end of 49.8p, gives a NAV Total Return per share for the year of 2.2%.
- The value of the investment portfolio increased by £9.5 million in the year. This was driven by an investment sale and loan repayment totalling £8.9 million exclusive of interest, offset by £14.0 million of new and follow-on investments and an increase of £4.4 million in the valuation of investments.
- Six new investments costing £7.9 million and 11 follow-on investments costing £6.1 million were made during the year.
- The Company fully exited its investment in Hospital Services Group Limited, realising gains of £7.6 million in the period. Including accrued interest of £0.5 million, the investment returned proceeds of £9.3 million on completion.
- A special dividend of 3.1p per share was paid on 16 May 2025, returning £9.8 million to Shareholders.
- An interim dividend of 2.8p per share was paid on 18 July 2025, returning £8.8 million to Shareholders.
- The offer for subscription launched on 6 January 2026 was closed to applications on 29 January 2026 and raised a total of £38.6 million after expenses.
- Definitions of these Alternative Performance Measures (“APMs”) can be found in the Glossary on page 120 in the Annual Report.
CHAIR’S STATEMENT
“I am pleased to present the audited Annual Report and Accounts for the year ended 31 December 2025 and to report a Net Asset Value Total Return of 2.2% for the year, including a dividend yield of 12.6%.”
Portfolio overview
49
Investments as at 31 December 2025
£4.4m
Increase in valuation of investments in the year ended 31 December 2025
£8.9m
Cash proceeds generated from loan repayments and disposal of investments in the year ended 31 December 2025
As we publish the Annual Report and Accounts, the geopolitical situation remains a matter of concern, with heightened global tensions, shifting trade dynamics, and continued uncertainty influencing economic conditions across markets. These external factors have created a challenging backdrop for businesses and investors alike, underscoring the importance of resilience, disciplined management, and a clear strategic focus.
Overview of 2025
The UK economy continued its gradual recovery in 2025, building on the modest progress seen in 2024. Economic growth strengthened slightly, with UK GDP forecast to have expanded by around 1.5% over the year, fuelled in part by increased public spending and real wage growth. Nevertheless, this improvement was tempered by ongoing global uncertainty, trade policy instability and a labour market showing signs of softening as the year progressed.
The Company’s portfolio in aggregate performed well against this backdrop, aided by its regional diversification. Though some individual investee companies are still struggling with weak consumer demand, supply chain issues and labour shortages, the Manager continues to work closely with such companies to help them manage through these difficulties.
On the other hand, other investee companies are flourishing and we are encouraged by some profitable exits recently as the M&A market has started to pick up. In the year ended 31 December 2025, the valuation of investments in the portfolio increased by £4.4 million, excluding the impact of exits and new investments.
Strategy
The Board believes that it is in the best interests of Shareholders to continue to pursue a strategy of:
- Payment of annual dividends of at least 5% of the NAV per share based on the opening NAV per share of that financial year
- Growth in Net Asset Value Total Return above a 5% annual target while continuing to grow the Company’s assets
- Maintaining a programme of regular share buybacks at a discount of 5%, subject to market conditions
- Implementation of a significant number of new and follow‑on investments every year, exceeding deployment requirements to maintain VCT status
Central to the Company being able to achieve these objectives is the ability of the Manager to source and complete attractive new qualifying investment opportunities and exits.
Performance and portfolio activity
Net Asset Value per share decreased from 54.5p at 31 December 2024 to 49.8p at 31 December 2025; however, this reduction is largely the mechanical result of distributing 5.9p in dividends over the year. When those dividend payments are added back, the NAV Total Return per share was 2.2% for the year. This highlights that, despite the lower year‑end NAV, Shareholders experienced a meaningful gain once income distributions are taken into account. The NAV Total Return per share from an investment in the Company’s shares made five years ago is 38.3% in total or circa 7.7% per annum, which is well above the minimum target return set by the Board of 5% per annum. Exceeding this target is at the centre of the Company’s current and future portfolio management objectives. Factoring in the 30% upfront income tax relief as well as fees paid on entry, a 5% discount on buyback, and assuming that dividends are reinvested when paid, £10,000 invested on 1 January 2021 would have yielded £15,979 as at 31 December 2025, representing a capital gains tax‑exempt gain of £5,979 or an 12.0% average return per annum. Note this does not include a potential further £2,124 tax‑credit receivable on dividends reinvested.
During the year, the Manager completed six new investments and 11 follow-on investments totalling £7.9 million and £6.1 million respectively. The Manager successfully disposed of Hospital Services Group Limited, generating proceeds of £9.3 million, including £0.5 million of accrued interest, with potential for a further £0.4 million of deferred consideration in the coming years. Including the £0.9 million of cash returned during the investment period, this represents an exceptional return of 8.2 times the original investment.
The Manager also exited two challenged businesses, Biotherapy Services Limited and Vio Healthtech Limited, for nil proceeds during the period and received a £0.1 million loan repayment from Positive Response Corporation Ltd. Further details of these investments and realisations can be found in the Manager’s Review.
After the year end, the Company made one new and four follow-on investments totalling £4.5 million. Further details of these investments can be found in the Manager’s Review.
The Manager continues to see a good pipeline of potential investments sourced through its regional networks and well-developed relationships with advisers and the SME community. It is also focused on supporting the existing portfolio through the current economic climate. Following the successful fundraise launched in January 2026, the Company is in a position to fully support the portfolio, where appropriate, and exploit potential attractive investment opportunities.
An offer for subscription to raise further funds was launched on 6 January 2026. The offer was closed to applications on 29 January 2026 and raised gross proceeds of £40.0 million, £38.6 million after expenses, as detailed in the post-balance sheet events in note 20 of the Annual Report. The Board would like to thank those existing Shareholders who supported this offer and welcome all new Shareholders to the Company.
The Board and the Manager are confident that a number of new and follow‑on investments can be achieved this year. Details of each of these new, existing and former portfolio companies can be found in the Manager’s Review.
Responsible investing
The analysis of environmental, social and governance (“ESG”) issues is embedded in the Manager’s investment process and these factors are considered key in determining the quality of a business and its long-term success. Central to the Manager’s responsible investment approach are five ESG principles that are applied to evaluate investee companies, acquired since May 2018, throughout the lifecycle of their investment, from their initial review and acquisition to their final sale. Every year, these portfolio companies are assessed and progress is measured against these principles. More detailed information about the process can be found on pages 52 to 55 of the Manager’s Review in the Annual Report.
Dividends
A special interim dividend of 3.1p per share was declared on 15 April 2025 based on an ex-dividend date of 1 May 2025 and a record date of 2 May 2025. This dividend was paid on 16 May 2025, returning £9.8 million to Shareholders. Additionally, an interim dividend of 2.8p per share was declared on 24 June 2025 based on an ex-dividend date of 3 July 2025 and a record date of 4 July 2025. This dividend was paid on 18 July 2025, returning £8.8 million to Shareholders.
As noted in prior Annual Report and Accounts, and in light of the change in portfolio towards earlier-stage, higher‑risk companies as required by the VCT rules, the Board felt it prudent in 2020 to adjust the dividend policy towards a targeted annual dividend yield of 5% of NAV per annum. The Board and the Manager’s aspiration is that this may be enhanced by additional special dividends as and when particularly successful portfolio exits are made.
Buybacks
Buybacks in the year totalled £4.3 million and the Board is pleased to have achieved an average discount of 5.0% to the Net Asset Value per share. The Board continues to have an objective of maintaining buybacks at a discount of 5%, subject to market conditions.
Management charges
The annual management fee is an amount equal to 2.0% of net assets, as it was in the prior year. If the ongoing charges of the Company, as defined in the Glossary of Terms, exceed 2.35%, the Company is entitled to reduce the fees paid to the Manager by the amount of the excess and is borne by the Manager through a reduction in its fees. The excess for the year ended 31 December 2025 was £284,000 (excess for the year ended 31 December 2024: £nil).
Board composition
The Board continues to review its own performance and undertakes succession planning to maintain an appropriate level of independence, experience, diversity and skills in order to be in a position to discharge all its responsibilities.
The forthcoming AGM will be my last as a Director and Chair of the Company. My sincere thanks go to you as Shareholders and to the Manager for your support during the past nine years. I know the Company is in good hands and I wish it and each of you further success in the future.
Annual General Meeting
The Company’s Annual General Meeting will take place on 11 June 2026 and we look forward to meeting as many of you as possible in person. Please refer to the formal notice on pages 116 to 117 in the Annual Report for further details in relation to the format of this year’s meeting.
We would encourage you to submit your votes by proxy ahead of the deadline of 1.30pm on 9 June 2026 and to forward any questions by email to InvestorRelations@foresightgroup.eu in advance of the meeting.
Changes to upfront income tax relief on VCTs
In the November 2025 Budget, the government confirmed that upfront income tax relief on new VCT investments would fall from 30% to 20% from 6 April 2026. Although this reduction is disappointing, it is important to note that the tax‑free status of VCT dividends and capital gains will remain unchanged. Alongside this, the government also outlined plans to raise the investment limits for VCT qualifying businesses.
The overall effect of these changes on the VCT sector is still uncertain. A decrease in tax relief may reduce fundraising activity, particularly during the 2026/27 tax year. However, we continue to view VCTs as an attractive option for investors, especially at a time when fewer tax‑efficient planning opportunities are available elsewhere. We will also keep advocating against this change and highlighting the vital contribution that VCTs make to the wider economy by supporting early‑stage companies, encouraging innovation and boosting employment.
Outlook
The UK economy entered 2026 with cautious signs of improvement before the outbreak of conflict in Iran added significant uncertainty to the outlook. Recent forecasts now expect UK GDP growth of around 1.1% in 2026, downgraded from earlier projections amid escalating energy costs and weakening confidence across households and businesses. Inflation, previously on track to ease towards the Bank of England’s 2% target, is now projected to remain elevated and potentially end the year higher than previously expected due to sustained energy price movements.
The conflict has intensified global geopolitical risks, with economists warning that prolonged disruption to oil and gas supplies could weigh more heavily on UK growth, hinder prospects for interest rate cuts and raise the threat of stagflation later in the year.
Consumer confidence and business investment remain fragile, with private sector investment forecast to contract in 2026 amid reduced profitability, weaker real income growth and tighter fiscal pressures. In addition, uncertainties around long‑term fiscal credibility and the durability of the government’s policy platform have the potential to unsettle financial markets further. These economic conditions may prove challenging for our investee companies, which are unquoted, small, early‑growth businesses and therefore more exposed to fluctuations in demand, labour market constraints and limited liquidity compared with larger listed companies.
Nonetheless, the Company’s current portfolio of investments is highly diversified by number, business sector, size and stage of development and overall has already demonstrated its relative resilience in recent difficult economic and geopolitical circumstances. We are confident that this approach will continue to provide some protection in future volatile market conditions.
The Manager is continuing to see a promising pipeline of potential investments, both new and follow-on, which are sourced nationally through its established regional network. The recent, successful fundraise will provide the necessary resources to make selective acquisitions from emerging investment opportunities. Although economic growth may be subdued, and markets potentially turbulent, in the months ahead, we believe the Company’s generalist and diversified portfolio continues to be well positioned to generate long-term value for Shareholders.
Michael Gray
Chair
21 April 2026
MANAGER’S REVIEW
As at 31 December 2025, the Company’s portfolio comprised 49 investments with a total cost of £86.5 million and a valuation of £118.6 million.
Portfolio diversification
Technology, Media & Telecommunications (cost 38% | valuation 33%)
Healthcare (cost 26% | valuation 26%)
Industrials & Manufacturing (cost 14% | valuation 10%)
Business Services (cost 13% | valuation 14%)
Consumer & Leisure (cost 8% | valuation 9%)
Other (cost 1% | valuation 8%)
Portfolio summary
The portfolio is diversified by sector, transaction type and maturity profile. Details of the ten largest investments by valuation, including an update on their performance, are provided on pages 29 to 33 in the Annual Report.
In the year to 31 December 2025, the value of the investment portfolio increased by £9.5 million as a result of £14.0 million of new and follow-on investments and an increase of £4.4 million in the valuation of investments, offset by a strong exit and a loan repayment realising £8.9 million of cash. Overall, the portfolio has performed reasonably well despite uncertainty in the wider market, notably significant geopolitical issues, the UK Budget and tariffs.
In line with the Board’s strategic objectives, we remain focused on growing the Company through further development of NAV Total Return. Although in the year under review, the Company fell short of this target with a NAV Total Return of 2.2%, the average annual total return over five years of 7.7% shows that the Company remains broadly on track over a longer time horizon.
New investments
Although the UK M&A market had begun to improve in the latter half of 2025, supported by falling inflation and interest rates, the landscape has shifted following the outbreak of war in Iran and the resulting disruption to global oil supply chains, rising energy prices and heightened inflationary pressures. These factors, together with ongoing disruption from AI and other emerging technologies, require careful consideration when assessing new investment opportunities and in managing portfolio companies.
We have continued to invest in our deal origination capabilities and identified a large number of potentially attractive investment opportunities during the year.
Over the course of 2025, six new investments were completed, investing a total of £7.9 million. New investments were across healthcare, manufacturing, marketing and tech-enabled services. Behind these, there continues to be a strong pipeline of opportunities that we expect to convert during the next 12 months. Follow-on investments totalling £6.1 million were also made in 11 existing investee companies.
Ad Signal Limited
In March 2025, the Company completed a £1.5 million investment into Ad Signal, a provider of digital content management software for the media and entertainment industry. The company’s founder has strong technical skills and significant experience in developing content management solutions. The investment will enable the company to develop further tools to support its customers and add further blue-chip clients. To support these growth ambitions, we invited Tom Toumazis MBE to join the team as Non-Executive Chair. Tom brings a wealth of experience in the media and entertainment industry, as well as being involved with several early-stage technology businesses.
Aircards Ltd
In August 2025, the Company completed a £1.5 million investment into Aircards, a specialist technology-led augmented reality (“AR”) marketing agency, delivering end‑to-end immersive experiences to a range of international blue-chip clients. Aircards has a strong core agency offering, supported by two potentially exciting technology products. The investment will help fund continued growth, professionalise operations and commercialise a scalable product set.
MyWay Digital Health Ltd
In August 2025, the Company invested £1.5 million into MyWay Digital Health, a UK-based digital health company delivering a leading diabetes self-management platform. Spun out from the University of Dundee in 2017, MyWay Digital Health empowers patients and clinicians through integrated personal health records, real-time device data and tailored education. The investment will enable the company to accelerate growth, enhance operational capacity and position itself for a strategic exit.
Bloemteknik Limited
In October 2025, the Company invested £1.0 million into Bloemteknik, a Cardiff-based provider of precision light‑emitting diode (“LED”) lighting systems for commercial greenhouses and vertical farms. The company was founded in 2023 by two former General Electric (“GE”) horticulture executives and has since built a reputation for best-in-class product performance. The investment will support the commercialisation of a proprietary software platform and further penetration into existing and new geographies.
EnterpriseJungle, Inc
In November 2025, the Company invested £1.7 million into EnterpriseJungle, trading as EnterpriseAlumni, a category leader in corporate alumni engagement software. The software provides a platform for global enterprises to build branded alumni communities that drive rehire and referral hiring, brand advocacy and network-led business development. The investment will help scale the business and accelerate growth initiatives.
Asiaverify Limited
In December 2025, the Company invested £0.7 million into Asiaverify, an intelligence platform that provides data and insights into more than 447 million entities across 13 Asian jurisdictions. The platform is used by global businesses performing Know Your Business (“KYB”) and Anti-Money Laundering (“AML”) checks when engaging with merchants and suppliers in Asia. The investment will allow continued product development and expansion of the marketing and sales teams.
Follow-on investments
Given the size of the portfolio, the number of follow-on investments relative to new deals remains high, a trend that is expected to continue. These follow-on investments are to support further growth initiatives for companies within the portfolio, or to support them through a period of challenging trading. We are pleased to report that, despite continuing macroeconomic uncertainty and stubbornly high interest rates, the portfolio remains resilient overall.
We have made follow-on investments in 11 companies during 2025, totalling £6.1 million. Further details of each of these are provided here.
The additional equity injections in the year were used to support further growth plans, such as launching new products and providing cash headroom for further growth. In view of the economic outlook, which remains challenging, we continue to be vigilant about the health of the rest of the portfolio and the need for follow-on funding over the coming months.
Loopr Ltd
In February 2025, the Company completed a £1.5 million follow-on investment into Loopr (trading as “Looper Insights”), a company providing data analytics to content distributors and video-on-demand streaming services. The investment will support the company’s next phase of product development, the growth of the sales and business development teams, and continue the rollout to new and existing customers internationally, including regulators, multinationals and local media outlets.
Fourth Wall Creative Limited
In March 2025, the Company completed a £0.7 million follow-on investment into Fourth Wall Creative. Fourth Wall Creative provides fan engagement services to Premier League and Championship football clubs and other sporting organisations via its technology platforms. It also designs, sources and fulfils membership welcome packs and related products. The investment will support the continued growth and development of the business.
Evolve Dynamics Limited
In March 2025, the Company invested a further £0.6 million into Evolve Dynamics. The investment will support the company’s working capital and research and development initiatives as the business continues to target both private and public sector contracts. Evolve develops and manufactures Unmanned Aircraft Systems and, since investment, it has developed and begun to commercialise two new systems.
Ten Health Holdings Limited
In March 2025, the Company completed a £0.6 million follow-on investment into Ten Health Holdings, alongside a £0.2 million co-investment from senior management. This funding will primarily be used to launch a new franchise model and enable Ten Health Holdings to open a presence in locations across the UK, specifically beyond London, and internationally.
NorthWest EHealth Limited
In April 2025, the Company completed a £0.3 million investment into NorthWest EHealth (“NWEH”). This was followed by a further £0.3 million in May 2025. NWEH is a provider of technology‑enabled clinical trials services to the pharmaceutical and life sciences sectors, leveraging NHS electronic health records. The investments during the year will enable NWEH further cash runway to convert an important commercial opportunity, which has since commenced.
HomeLink Healthcare Limited
In May 2025, the Company completed a £0.9 million follow‑on investment into HomeLink Healthcare. The Company first invested into HomeLink in March 2022 and completed a follow-on investment in March 2024. The business partners with the NHS and private hospitals to provide patients with wound care, physiotherapy and intravenous therapies in their own homes. HomeLink is also a leader in remote patient monitoring practices and offers a virtual ward solution, which has now saved the NHS over 150,000 hospital bed days. The investment will support the organic expansion of the company.
Strategic Software Applications Ltd
In July 2025, the Company completed a further investment of £0.1 million into Strategic Software Applications, trading as Ruleguard. Ruleguard is a SaaS regulatory compliance platform for financial services institutions. The investment will enable Ruleguard to continue to invest in its team and secure high‑quality SaaS revenues from a growing customer base.
Sprintroom Limited
In July and November 2025, the Company completed two follow-on investments totalling £0.6 million in Sprintroom, which trades as Sprint Electric. The business designs and manufactures drives for controlling electric motors in light and heavy industrial applications, as well as recovering and reusing otherwise lost energy. The investment will be used to drive continued revenue growth and develop further iterations of the new product range.
Navitas Group Limited
In September 2025, the Company completed a further investment of £0.1 million into Navitas Group. The company uses a combination of hardware and software to provide a complete food safety management solution to hospitality sector customers. The investment will support the company’s effort to expand its commercial capabilities and further develop the platform.
Kognitiv Spark Inc
In September 2025, the Company invested a further £0.2 million into Kognitiv Spark, a developer of augmented reality software that enables the remote sharing of critical data to on-site employees. Developed specifically for industrial communications, the company’s core product offers superior performance in terms of data compression and visualisation. The funding will be used to expand the management team and explore new commercial opportunities.
Weduc Holdings Limited
In December 2025, the Company invested £0.2 million into Weduc Holdings, a software business providing a communication platform into the education sector. The new funding will accelerate growth and support product-led growth initiatives.
Realisations
The M&A climate has proved more challenging recently in light of the macroeconomic conditions of relatively high interest rates and geopolitical uncertainty. Despite this, we were pleased to report a particularly strong realisation, as well as the disposal of some of the more challenged businesses within the portfolio. We continue to engage with a range of potential acquirers of several portfolio companies and to carefully consider the timing of exit for each. Demand remains for high-quality, high‑growth businesses from both private equity and trade buyers.
Hospital Services Group Limited
In January 2025, the Company completed its sale of Hospital Services Group Limited (“HSL”), a provider of high‑quality healthcare equipment and consumables. The transaction generated proceeds of £8.8 million at completion and £0.9 million in interest over the life of the investment, with potential for a further £0.4 million of deferred consideration over the coming years. This implies a return and IRR of 8.2 times the original investment and 25.6% respectively. HSL provides equipment to a growing number of customers on both sides of the Irish Sea, with over 500 medical facilities supported in 2024. Since investment, HSL has seen strong organic growth and has made eight strategic bolt-on acquisitions, most notably in Ireland. The exit is reflective of Foresight’s commitment to supporting sustainable growth.
Biotherapy Services Limited
In March 2025, the Company exited its holding in Biotherapy Services Limited (“BTS”) to management for a nil proceeds. Despite promising early clinical results, BTS struggled to complete its Phase IIB trial of its RAPID gel product within its funding runway. The trial was significantly hampered by COVID-19, with diabetic trial participants needing to shield. BTS has recently published its data and analysis. The company was fully written down in December 2022.
Vio Healthtech Limited
In August 2025, the Company announced the sale of Vio Healthtech to Ultrahuman, an Indian smart-ring technology company, for nil value after the business failed to build commercial traction. Vio Healthtech was fully written down in December 2022 and the sale will allow the technology to continue to support women with their fertility goals under new ownership.
Realisations in the year ended 31 December 2025
| Accounting cost | Valuation at | ||||
| at date | Realised | 31 December | |||
| of disposal | Proceeds1 | gain/(loss) | 2024 | ||
| Company | Detail | £ | £ | £ | £ |
| Hospital Services Group Limited2 | Full disposal | 1,200,000 | 8,787,773 | 7,587,773 | 9,272,696 |
| Biotherapy Services Limited | Full disposal | 2,250,000 | — | (2,250,000) | — |
| Vio Healthtech Limited | Full disposal | 689,928 | — | (689,928) | — |
| Positive Response Corporation Ltd | Loan repayment | 100,000 | 100,000 | — | 100,000 |
| Total disposals | 4,239,928 | 8,887,773 | 4,647,845 | 9,372,696 |
- Proceeds on exit excluding interest, dividends and exit fees where applicable.
- Excludes £0.2 million of deferred consideration recognised within debtors as at 31 December 2025.
Pipeline
At 31 December 2025, the Company had cash reserves of £35 million, which will be used to fund new and follow‑on investments, buybacks, dividends and corporate expenditure. We are seeing a strong pipeline of new opportunities, with several opportunities in due diligence or in exclusivity stages, with further deal completions expected to be announced in the months to follow.
Despite falling inflation and interest rates, debt remains expensive by recent standards and the Bank of England has not reduced interest rates at the speed expected. At the global level, uncertainty remains with the Russia–Ukraine conflict ongoing, a new widespread conflict in the Middle East and ongoing tensions between China and the West. These conflicts are likely to disrupt supply chains and create volatility in the medium term. These conditions make equity investment attractive for SMEs, wishing to strengthen their balance sheets and manage uncertainty.
We continue to see an attractive pipeline of opportunities and do not see this changing in the medium term. The Company is able to access these opportunities through its wide and proprietary network across the country, delivered by its network of regional offices. We consider the Company’s strategy to be well suited to market volatility, due to its balanced mix of companies across sectors and stages, experienced investment team and network of high‑quality non-executives.
Post year-end activity
Resi Design Limited
In January 2026, the Company made a £0.7 million follow‑on investment into Resi Design, a technology-enabled architectural business that manages structural home improvement projects from concept through to planning, design, build and sign-off. This latest investment is expected to support the refreshed management team in implementing an improved business plan.
SAMP Technology Holdings Limited
In February 2026, the Company invested £2.0 million into SAMP Technology Holdings, a technical engineering consultancy with a bespoke asset performance management and risk analysis software platform. The platform enables customers to plan predictive and preventative maintenance events, reducing plant stoppages, extending useful lives and improving returns. The investment will help scale the business and aid in a software platform rollout.
Fourth Wall Creative Limited
In February 2026, the Company completed a £1.1 million follow-on investment into Fourth Wall Creative to support the continued growth of the business. For further details on Fourth Wall Creative, please see above.
Sprintroom Limited
In February 2026, the Company completed a £0.4 million follow‑on investment into Sprintroom, which trades as Sprint Electric. The business designs and manufactures drives for controlling electric motors in light and heavy industrial applications, as well as recovering and reusing otherwise lost energy. The investment will be used to drive continued revenue growth and develop further iterations of the new product range.
Evolve Dynamics Limited
In February 2026, the Company completed a £0.3 million follow-on investment into Evolve Dynamics Limited (“Evolve”). The investment will support the company’s working capital and research and development initiatives as the business continues to target both private and public sector contracts. Evolve develops and manufactures Unmanned Aircraft Systems and, since investment, it has developed and begun to commercialise two new systems.
Key portfolio developments
Material changes in valuation, defined as increasing or decreasing by £1.0 million or more since 31 December 2024, are detailed below. Updates on these companies are included below, in the Post year-end activity section on page 23 in the Annual Report, or in the Top Ten Investments section on pages 29 to 33 in the Annual Report.
Key valuation changes in the year
| Net movement | ||
| Company | Valuation methodology | £ |
| NorthWest EHealth Limited | Discounted revenue multiple | 2,694,246 |
| Hexarad Group Limited | Discounted revenue multiple | 1,672,650 |
| Aerospace Tooling Corporation Limited | Discounted earnings multiple | 1,528,509 |
| Mizaic Ltd | Discounted revenue multiple | 1,189,861 |
| TLS Holdco Limited | Net assets | (1,200,781) |
| Fourth Wall Creative Limited | Discounted revenue multiple | (1,685,981) |
| Rovco Limited | Nil value | (2,033,874) |
Aerospace Tooling Corporation Limited
Aerospace Tooling Corporation Limited (“ATL”) provides specialist inspection, maintenance, repair and overhaul (“MRO”) services for components in high-specification aerospace and industrial turbine engines. A core focus for ATL is in “legacy” components and engines that are still in widespread use but have ceased production and do not have easily available spare parts. The company also provides services on a wide range of “in production” turbines, providing a cost‑effective alternative to expensive replacement parts.
31 December 2025 update
Throughout 2025, ATL implemented a series of cost‑reduction measures, enhanced quality and operational efficiency on the factory floor, and introduced significant price increases across its customer base. These actions collectively enabled the business to return to profitability. The company also invested heavily in new CAPEX, which secured a major new order. We remain supportive of the business as it continues to grow its customer base and expand its service offering.
Mizaic Ltd
Mizaic has developed MediViewer, an electronic document management solution (“EDMS”) for healthcare providers. Mizaic helps digitise and provide a single interface to provide easy access to archived, paper-based patient records and is supporting the transition to a paperless NHS.
31 December 2025 update
Across 2025, Mizaic has continued to grow its core business, onboarding additional NHS trusts during the year on to the MediViewer platform and growing underlying ARR. Mizaic completed the acquisition of an early-stage, two-person AI healthcare company in October, which adds a new workflow offering to Mizaic’s product suite.
Rovco Limited
Rovco, trading as Beam, was established in 2015 by CEO Brian Allen as a provider of subsea infrastructure surveying services, primarily for offshore wind.
31 December 2025 update
Despite positive interest from investors in a large growth funding round at the beginning of 2025, this failed to materialise, leaving the company insolvent. As such, after thoroughly exploring all options, the directors resolved to put the company into administration at the end of April 2025.
Outlook
2025 was another year of measured recovery in the UK economy, although global volatility remains given the geopolitical environment. Inflation remained at historically normalised levels, with the CPI index rising by 3.2% in the year. This trend led to several interest rate reductions by the Bank of England over the course of the year, totalling 1% and resulting in a base rate of 3.75%. UK GDP growth was estimated at 1.3%, an improvement on 2024, which was low by global standards but in line with other mature economies. Fourth-quarter GDP growth was 0.1%, so momentum is limited heading into 2026.
UK GDP performance is expected to be the second strongest in the G7 according to the IMF after the US, where growth is underpinned by investment in AI among other factors. However, inflation remains high compared with other countries. The FTSE 100 performed strongly in 2025, rising by 24%, outstripping growth seen by other developed stock markets, such as the S&P 500. This strong performance has been attributed to robust earnings and dividends and continued overseas interest in UK assets. This trend has continued so far in 2026 with improving economic conditions, whilst other tech-heavy indices have suffered from the higher volatility experienced in those sectors. CPI growth in January fell further to 3.0%.
At the macro level, volatility and uncertainty remain. The geopolitical landscape remains strained, with the Russia–Ukraine conflict entering its fifth year and a new conflict erupting in the Middle East, as well as continuing tensions between the West and China. Further widespread tariffs have recently been imposed by the US under the current administration. The narrative around global investment in AI and the impact this may have on the labour market is driving further volatility in markets.
There is room for some optimism, however, as the UK continues to be a global leader in key sectors such as technology, life sciences and financial services. The UK has a strong culture of innovation, driven by leading universities and attracting top global talent. There is a strong and established network of support for growing young companies, and world-class universities continue to nurture exciting spin-outs. Multinationals continue to see the UK as an attractive place to invest and grow their businesses, and the anticipated increase in the capital gains tax rate did not materialise. While the UK government has delivered sharp tax rises, many of which have impacted SMEs, the expectation is that tax rises for the remainder of this government should be modest.
2025 represented the strongest year for M&A in the UK since the pandemic. Despite the performance of the FTSE 100, valuations of UK companies generally lag behind those of US and European counterparts, making them attractive targets for international acquisition. This makes the UK an attractive place to invest, with well-trodden exit routes to US and European buyers a feature of the market.
The Company has continued its strong recent exit track record with the sale of Hospital Services Group to a trade buyer, generating 8.2x money. The exits of Biotherapy Services and Vio Healthtech, conversely, show the risk inherent in making early-stage investments. These exits allowed the Company to return material value to Shareholders in the year, paying dividends of 5.9p per share. This represents a dividend yield of an attractive 12.6%, exceeding the Company’s target. Overall NAV return was 2.2%, with the Company returning most of the realised gains made in the year to Shareholders. The Company retains a portfolio that is well balanced across sectors and stages, with some companies delivering strong profitability, whilst other earlier-stage investments continue to display strong growth.
We continue to work closely with portfolio companies to manage leverage and navigate the various challenges posed by external factors.
2026 was forecast to demonstrate marginal improvements across several fronts, with a slightly improved GDP forecast, lower inflation and consequently lower interest rates. However, the emergence of the Iran-US war and subsequent oil price shock seems likely to drive inflation interest rates upwards, reduce consumer and business confidence and potentially push the UK into recession. That said, the UK is an attractively valued market compared to certain other countries.
We are reasonably pleased with the performance in the year, with the Company navigating the economic and geopolitical uncertainty well, particularly with the strong realisation of Hospital Services Group. The Company’s strong performance over the medium and long term has maintained its position in the VCT market, enabling a highly successful fundraise which will provide further capital to continue our track record of delivering value from investments and supporting portfolio companies. The portfolio remains diversified and resilient to macroeconomic headwinds, supported by a collaborative, hands-on approach from Foresight Group.
James Livingston
on behalf of Foresight Group LLP
Co-Head of Private Equity
21 April 2026
STATEMENT OF COMPREHENSIVE INCOME
For the year ended 31 December 2025
| Year ended 31 December 2025 | Year ended 31 December 2024 | |||||
| Revenue | Capital | Total | Revenue | Capital | Total | |
| £’000 | £’000 | £’000 | £’000 | £’000 | £’000 | |
| Gains on investments | — | 4,675 | 4,675 | — | 14,494 | 14,494 |
| Income | 3,237 | — | 3,237 | 3,249 | — | 3,249 |
| Investment management fees | (799) | (2,715) | (3,514) | (888) | (4,629) | (5,517) |
| Other expenses | (788) | — | (788) | (817) | — | (817) |
| Return on ordinary activities before taxation | 1,650 | 1,960 | 3,610 | 1,544 | 9,865 | 11,409 |
| Taxation | (405) | 405 | — | (345) | 345 | — |
| Return on ordinary activities after taxation | 1,245 | 2,365 | 3,610 | 1,199 | 10,210 | 11,409 |
| Return per share | 0.4p | 0.7p | 1.1p | 0.4p | 3.8p | 4.2p |
The total columns of this statement are the profit and loss account of the Company and the revenue and capital columns represent supplementary information.
No operations were acquired or discontinued in the year.
The Company has no recognised gains or losses other than those shown above; therefore, no separate statement of total comprehensive income has been presented.
The Company has only one class of business and one reportable segment, the results of which are set out in the Statement of Comprehensive Income and Balance Sheet.
There are no potentially dilutive capital instruments in issue and, therefore, no diluted earnings per share figures are relevant. The basic and diluted earnings per share are, therefore, identical.
The notes on pages 97 to 115 in the Annual Report form part of these financial statements.
RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS’ FUNDS
| Called-up | Share | Capital | |||||
| share | premium | redemption | Distributable | Capital | Revaluation | ||
| capital | account | reserve | reserve1 | reserve1 | reserve | Total | |
| Year ended 31 December 2025 | £’000 | £’000 | £’000 | £’000 | £’000 | £’000 | £’000 |
| As at 1 January 2025 | 2,988 | 32,659 | 164 | 98,440 | (6,831) | 35,424 | 162,844 |
| Share issues in the year2 | 227 | 12,292 | — | — | — | — | 12,519 |
| Expenses in relation to share issues3 | — | (404) | — | — | — | — | (404) |
| Repurchase of shares | (91) | — | 91 | (4,340) | — | — | (4,340) |
| Realised gains on disposal of investments | — | — | — | — | 6,014 | — | 6,014 |
| Investment holding losses | — | — | — | — | — | (1,339) | (1,339) |
| Dividends paid | — | — | — | (18,615) | — | — | (18,615) |
| Management fees charged to capital | — | — | — | — | (2,715) | — | (2,715) |
| Revenue return for the year before taxation | — | — | — | 1,650 | — | — | 1,650 |
| Taxation for the year | — | — | — | (405) | 405 | — | — |
| As at 31 December 2025 | 3,124 | 44,547 | 255 | 76,730 | (3,127) | 34,085 | 155,614 |
- Distributable reserve accounts at 31 December 2025 total £73,603,000 (2024: £91,609,000). Share premium cancelled during the year included amounts arising on share allotments less than three years old, which comprise protected capital under VCT regulations. Amounts available for distribution at 31 December 2025 are therefore £38,899,000 (2024: £41,673,000). The remaining cancelled share premium will become distributable on the third anniversary of the share allotment on which it arose.
- Includes the dividend reinvestment scheme.
- Expenses in relation to share issues includes trail commission for prior years’ fundraising.
The notes on pages 97 to 115 in the Annual Report form part of these financial statements.
| Called-up | Share | Capital | |||||
| share | premium | redemption | Distributable | Capital | Revaluation | ||
| capital | account | reserve | reserve1 | reserve1 | reserve | Total | |
| Year ended 31 December 2024 | £’000 | £’000 | £’000 | £’000 | £’000 | £’000 | £’000 |
| As at 1 January 2024 | 2,567 | 102,801 | 679 | 44,046 | (31,047) | 49,430 | 168,476 |
| Share issues in the year2 | 586 | 33,791 | — | — | — | — | 34,377 |
| Expenses in relation to share issues3 | — | (1,132) | — | — | — | — | (1,132) |
| Repurchase of shares | (165) | — | 165 | (9,399) | — | — | (9,399) |
| Realised gains on disposal of investments | — | — | — | — | 28,500 | — | 28,500 |
| Investment holding losses | — | — | — | — | — | (14,006) | (14,006) |
| Dividends paid | — | — | — | (40,887) | — | — | (40,887) |
| Cancellation of share premium1 | — | (102,801) | (680) | 103,481 | — | — | — |
| Management fees charged to capital | — | — | — | — | (4,629) | — | (4,629) |
| Revenue return for the year before taxation | — | — | — | 1,544 | — | — | 1,544 |
| Taxation for the year | — | — | — | (345) | 345 | — | — |
| As at 31 December 2024 | 2,988 | 32,659 | 164 | 98,440 | (6,831) | 35,424 | 162,844 |
- Distributable reserve accounts at 31 December 2024 total £91,609,000 (2023: £12,999,000). Share premium cancelled during the year included amounts arising on share allotments less than three years old, which comprise protected capital under VCT regulations. Amounts available for distribution at 31 December 2024 are therefore £41,673,000 (2023: £12,999,000). The remaining cancelled share premium will become distributable on the third anniversary of the share allotment on which it arose.
- Includes the dividend reinvestment scheme.
- Expenses in relation to share issues includes trail commission for prior years’ fundraising.
The notes on pages 97 to 115 in the Annual Report form part of these financial statements.
BALANCE SHEET
As at 31 December 2025
| As at | As at | |
| 31 December | 31 December | |
| 2025 | 2024 | |
| £’000 | £’000 | |
| Fixed assets | ||
| Investments held at fair value through profit or loss | 118,632 | 109,110 |
| Current assets | ||
| Debtors | 2,351 | 3,206 |
| Cash and cash equivalents1 | 34,806 | 50,859 |
| 37,157 | 54,065 | |
| Creditors | ||
| Amounts falling due within one year | (175) | (331) |
| Net current assets | 36,982 | 53,734 |
| Total assets less current liabilities | 155,614 | 162,844 |
| Net assets | 155,614 | 162,844 |
| Capital and reserves | ||
| Called-up share capital | 3,124 | 2,988 |
| Share premium account | 44,547 | 32,659 |
| Capital redemption reserve | 255 | 164 |
| Distributable reserve | 76,730 | 98,440 |
| Capital reserve | (3,127) | (6,831) |
| Revaluation reserve | 34,085 | 35,424 |
| Equity Shareholders’ funds | 155,614 | 162,844 |
| Net Asset Value per share | 49.8p | 54.5p |
- Cash and cash equivalents are composed of cash at bank and in hand of £3,745,000 (2024: £5,180,000), fixed-term funds totalling £24,955,000 (2024: £36,873,000) and money market funds totalling £6,106,000 (2024: £8,806,000).
The financial statements were approved by the Board of Directors and authorised for issue on 21 April 2026 and were signed on its behalf by:
Michael Gray
Chair
Registered number: 03506579
The notes on pages 97 to 115 in the Annual Report form part of these financial statements.
CASH FLOW STATEMENT
For the year ended 31 December 2025
| Year ended | Year ended | |
| 31 December | 31 December | |
| 2025 | 2024 | |
| £’000 | £’000 | |
| Cash flow from operating activities | ||
| Loan interest received from investments | 1,322 | 932 |
| Dividends received from investments | 31 | 165 |
| Deposit and similar interest received | 1,894 | 2,174 |
| Investment management fees paid | (3,514) | (3,483) |
| Performance incentive fees paid | (318) | (3,079) |
| Secretarial fees paid | (215) | (207) |
| Other cash payments | (628) | (591) |
| Net cash outflow from operating activities | (1,428) | (4,089) |
| Cash flow from investing activities | ||
| Purchase of investments | (13,967) | (14,444) |
| Proceeds on sale of investments | 8,888 | 34,611 |
| Proceeds on deferred consideration | 1,366 | 4,257 |
| Net cash (outflow)/inflow from investing activities | (3,713) | 24,424 |
| Cash flow from financing activities | ||
| Proceeds of fundraising | 9,811 | 28,787 |
| Expenses of fundraising | (296) | (856) |
| Repurchase of own shares | (4,338) | (9,418) |
| Equity dividends paid | (16,089) | (35,832) |
| Net cash outflow from financing activities | (10,912) | (17,319) |
| Net (decrease)/increase of cash for the year | (16,053) | 3,016 |
| Reconciliation of net cash flow to movement in net funds | ||
| (Decrease)/increase in cash and cash equivalents for the year | (16,053) | 3,016 |
| Net cash and cash equivalents at start of year | 50,859 | 47,843 |
| Net cash and cash equivalents at end of year | 34,806 | 50,859 |
The notes on pages 97 to 115 in the Annual Report form part of these financial statements.
Notes
1 These are not statutory accounts in accordance with S436 of the Companies Act 2006. The full audited accounts for the year ended 31 December 2025, which were unqualified and did not contain statements under S498(2) of the Companies Act 2006 or S498(3) of the Companies Act 2006, will be lodged with the Registrar of Companies. Statutory accounts for the year ended 31 December 2025 including an unqualified audit report and containing no statements under the Companies Act 2006 will be delivered to the Registrar of Companies in due course.
2 The audited Annual Financial Report has been prepared on the basis of accounting policies set out in the statutory accounts of the Company for the year ended 31 December 2025. All investments held by the Company are classified as ‘fair value through the profit and loss’. Unquoted investments have been valued in accordance with IPEV guidelines. Quoted investments are stated at bid prices in accordance with the IPEV guidelines and Generally Accepted Accounting Practice.
3 Copies of the Annual Report will be sent to shareholders and can be accessed on the following website: www.foresightenterprisevct.com
4 Net Asset Value per share
The Net Asset Value per share is based on net assets at the end of the year and on the number of shares in issue at that date.
| 31 December | 31 December | |
| 2025 | 2024 | |
| Net assets | £155,614,000 | £162,844,000 |
| No. of shares at year end | 312,434,761 | 298,828,254 |
| Net Asset Value per share | 49.8p | 54.5p |
5 Return per share
| Year ended | Year ended | |
| 31 December | 31 December | |
| 2025 | 2024 | |
| £’000 | £’000 | |
| Total return after taxation | 3,610 | 11,409 |
| Total return per share (note a) | 1.1p | 4.2p |
| Revenue return after taxation | 1,245 | 1,199 |
| Revenue return per share (note b) | 0.4p | 0.4p |
| Capital return after taxation | 2,365 | 10,210 |
| Capital return per share (note c) | 0.7p | 3.8p |
| Weighted average number of shares in issue in the year (note d) | 315,236,047 | 271,803,550 |
Notes:
a) Total return per share is total return after taxation divided by the weighted average number of shares in issue during the year.
b) Revenue return per share is revenue return after taxation divided by the weighted average number of shares in issue during the year.
c) Capital return per share is capital return after taxation divided by the weighted average number of shares in issue during the year.
d) The weighted average number of shares is calculated by taking the number of shares issued and bought back during the year, multiplying each by the percentage of the year for which that share number applies and then totalling with the number of shares in issue at the beginning of the year.
6. Annual General Meeting
The Annual General Meeting of the Company will be held at the offices of Foresight Group LLP, The Shard, 32 London Bridge Street, SE1 9SG on 11 June 2026 at 1.30pm. Details will be published on both the Company’s and the Manager’s website at www.foresightenterprisevct.com.
7 Income
| Year ended | Year ended | |
| 31 December | 31 December | |
| 2025 | 2024 | |
| £’000 | £’000 | |
| Deposit and similar interest received | 1,894 | 2,174 |
| Loan stock interest | 1,312 | 910 |
| Dividends receivable | 31 | 165 |
| 3,237 | 3,249 |
8 Investments held at fair value through profit or loss
| 31 December | 31 December | |
| 2025 | 2024 | |
| £’000 | £’000 | |
| Unquoted investments | 118,632 | 109,110 |
| £’000 | ||
| Book cost at 1 January 2025 | 76,774 | |
| Investment holding gains | 32,336 | |
| Valuation at 1 January 2025 | 109,110 | |
| Movements in the year: | ||
| Purchases at cost | 13,967 | |
| Disposal proceeds1 | (8,888) | |
| Realised gains | 4,648 | |
| Investment holding losses | (205) | |
| Valuation at 31 December 2025 | 118,632 | |
| Book cost at 31 December 2025 | 86,501 | |
| Investment holding gains | 32,131 | |
| Valuation at 31 December 2025 | 118,632 |
- The Company received £8,888,000 from the disposal of investments and a loan repayment during the year. The book cost of these investments when they were purchased was £4,240,000. These investments have been revalued over time and until they were sold, any unrealised gains or losses were included in the fair value of the investments.
Reconciliation of realised gains and investment holding losses to the Statement of Comprehensive Income:
| Year ended | Year ended | |
| 31 December | 31 December | |
| 2025 | 2024 | |
| £’000 | £’000 | |
| Realised gains | 4,648 | 24,243 |
| Investment holding losses | (205) | (14,553) |
| Deferred consideration receipts | 1,366 | 4,257 |
| Deferred consideration debtor movement | (1,134) | 547 |
| Gains on investments per the Statement of Comprehensive Income | 4,675 | 14,494 |
Breakdown of deferred consideration movements in the year ended 31 December 2025:
| Deferred | ||
| Deferred | consideration | |
| consideration | debtor | |
| receipts | movements | |
| £’000 | £’000 | |
| Datapath Group Holdings Limited | 583 | (583) |
| Specac International Limited | 476 | (276) |
| Callen-Lenz Associates Limited | 300 | (272) |
| Codeplay Software Limited | 4 | — |
| Mologic Ltd | 3 | (3) |
| Total | 1,366 | (1,134) |
9 Related party transactions
No Director has an interest in any material contract to which the Company is a party other than their appointment and remuneration as Directors. Please refer to page 81 in the Annual Report for the Directors’ remuneration tables.
10 Transactions with the Manager
Foresight Group LLP earned fees of £3,196,000 in the year ended 31 December 2025 (2024: £3,553,000). Additionally, a performance fee of £318,000 was paid in the year (2024: £3,079,000) and a liability of £nil has been recognised as at 31 December 2025 (2024: £nil).
Foresight Group LLP is the Company Secretary and received accounting and company secretarial services fees of £215,000 during the year (2024: £207,000). Foresight Promoter LLP, a related party to the Manager, earned fees of £197,000 (2024: £554,000) in respect of costs incurred related to share allotments in the year.
As at 31 December 2025, the amount due from Foresight Group LLP was £284,000 (2024: £34,000 due to Foresight Group LLP).
No amounts have been written off in the year in respect of debts due to or from the Manager.
A copy of the Annual Report and Accounts will be submitted to the National Storage Mechanism in accordance with UK Listing Rules (“UKLR”)11.4.1 / UKLR 6.4.1 and UKLR 6.4.3.
END
For further information, please contact:
Company Secretary
Foresight Group LLP
Contact: Stephen Thayer Tel: 0203 667 8100
Investor Relations
Foresight Group LLP
Contact: Andrew James Tel: 0203 667 8181
