Half-Year Financial Report

24 SEPTEMBER 2026

UNAUDITED HALF-YEARLY FINANCIAL REPORT
FOR THE PERIOD ENDED 30 JUNE 2026

FINANCIAL HIGHLIGHTS

• The value of the investment portfolio increased by £3.5 million in the period to 30 June 2026. This was driven by £8.7 million of new and follow-on investments, partly offset by a £5.1 million fall in the valuation of investments and a £0.1 million loan repayment.
• NAV per share was 48.3p as at 30 June 2026, representing a fall in NAV Total Return of 3.0% during the period.
• Three new investments costing £6.0 million and four follow-on investments costing £2.7 million were made during the period.
• Post period end, an interim dividend of 2.5p per share was paid on 24 July 2026, returning £9.8 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.

CHAIR'S STATEMENT

The Company continues to show resilience in the context of mixed wider economic conditions. The first half of 2026 continued to be characterised by economic and geopolitical uncertainty. The UK economy made a relatively strong start to the year, with growth supported by services, manufacturing and construction activity, although business confidence remained sensitive to developments in global markets. Inflation eased during the period but remained above the Bank of England's 2% target, while interest rates were maintained at levels that continued to weigh on borrowing costs for many businesses.

Against this backdrop, market sentiment continued to be influenced by international developments, including ongoing trade tensions and conflicts in Ukraine and the Middle East. These factors have contributed to a more cautious environment for investment and corporate activity. In addition, volatility in the valuations of listed technology companies, which serve as valuation benchmarks for certain investee companies, has contributed to fluctuations in the valuations of parts of the portfolio, reflecting evolving investor sentiment towards artificial intelligence. Despite these headwinds, the Company's portfolio has remained resilient, with most portfolio companies continuing to perform well, notwithstanding specific challenges affecting a small number of investments. The portfolio is well diversified, both from a sector and business life-cycle perspective.

Further, the Company successfully raised £38.6 million net of expenses during the period and continued to deploy capital into attractive investment opportunities, making three new investments and four follow‐on investments.

I believe that the Manager's experienced investment team and regional presence across the UK provide the Company with access to a diverse range of high-quality investment opportunities.

The Board remains confident in the Manager's disciplined investment approach, with a continued focus on backing well‐researched businesses operating in sectors where attractive long-term growth prospects are supported by strong underlying fundamentals. This, together with the Manager's hands-on approach to portfolio management and support to investee companies, gives the Board confidence about the Company's potential for future performance.

Strategy
The Board believes that it is in the best interests of Shareholders to continue to pursue a strategy of:

• Growth in Net Asset Value Total Return above a 5% annual target while continuing to grow the Company's assets
• Payment of annual dividends of at least 5% of the NAV per share based on the opening NAV per share of that financial year
• Implementation of a number of new and follow‐on investments every year, exceeding deployment requirements to maintain VCT status
• Maintaining a programme of regular share buybacks at a discount of 5%, subject to market conditions

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 deliver strong exits.

Performance and portfolio activity
During the period, Net Asset Value per share fell by 3.0% from 49.8p as at 31 December 2025 to 48.3p as at 30 June 2026. With no dividends paid in the period, this was reflected in a NAV Total Return decline of 3.0% in the period. Whilst a decline is always disappointing, this is against a backdrop of continued difficult market conditions and the overall resilience of the portfolio is encouraging.

On 6 January 2026, the Company launched an offer for subscription to raise up to £40 million through the issue of new shares. The offer was closed to applications on 29 January 2026 having raised gross proceeds of £40.0 million, £38.6 million after expenses. We would like to thank those existing Shareholders who have supported the offer and welcome all new Shareholders to the Company. Following the period end, the Company announced its intention to launch a further offer for subscription later in the year.

During the period, the Manager completed three new investments and four follow-on investments costing £6.0 million and £2.7 million respectively. Details of each of these new and existing portfolio companies can be found in the Manager's Review. The Board and the Manager are confident that a strong level of new and follow-on investments can be achieved this year, particularly with the increased investment activity noted above. Post period end, the Manager has completed two new and eight follow-on investments, deploying a further £3.0 million and £4.6 million respectively. The level of deployment in the year to date is encouraging, despite the difficult economic environment.

While no exits were completed during the period, this follows a number of significant realisations achieved over the past few years, which generated substantial proceeds and demonstrated the Company's ability to deliver attractive returns from its portfolio. The Board and Manager remain focused on identifying opportunities to realise value from more mature investments when market conditions and company-specific circumstances are favourable.

The Manager continues to see a strong pipeline of potential investments sourced through its regional networks and well-developed relationships with advisers and the SME community; however, it is also focused on supporting the existing portfolio through the current economic climate.

Responsible investing
The analysis of environmental, social and governance (“ESG”) issues is embedded in the Manager's investment process and, whilst the Company has no specific objective to invest in companies which have an ESG focus, these factors are more generally 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, the portfolio companies are assessed and progress is measured against these principles. More detailed information about the process can be found on pages 23 and 24 in the Unaudited Half-Yearly Financial Report.

Dividends
An interim dividend of 2.5p per share was declared on 25 June 2026 based on an ex-dividend date of 2 July 2026 and a record date of 3 July 2026. The dividend was paid post period end on 24 July 2026, returning £9.8 million to Shareholders.

The Board and the Manager continue to hope that special dividends can be paid as and when particularly successful portfolio exits are made.

Buybacks
While no buybacks were completed in the period itself, 4,329,240 shares were bought back on 2 July 2026 at a discount of 5.0%. The Board continues to have an objective of maintaining buybacks at a discount of 5.0%, subject to market conditions.

Shareholder communication
We were delighted to hold the AGM on 11 June 2026. We hope many of you will be available to attend our next investor forum event which will be announced in due course. These events have proven very popular with our Shareholders in the past and provide the opportunity to learn first-hand about some of our investee companies from their founders and management.

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.

As planned, Michael Gray stepped down as Chair and retired from the Board at the AGM on 11 June 2026, and I was appointed as Chair by the Board. On behalf of the Company, I would like to thank Mike for his stewardship of the Company and significant contribution to its strong performance over the past nine years.

Post period end, the Board was delighted to appoint James Barnes as a Non-Executive Director with effect from 1 August 2026.

Outlook
As I noted in my introduction, the first half of 2026 was characterised by a challenging economic and geopolitical backdrop. While inflationary pressures, slower economic growth and global uncertainty continue to influence markets, we remain focused on identifying and supporting high-quality businesses with attractive long-term growth prospects.

We continue to benefit from investing in growth companies that are often well positioned to adapt to changing market conditions. Supported by the Manager's experience, extensive network and disciplined investment approach, these businesses are able to respond quickly to both opportunities and challenges as they arise.

Our portfolio remains well diversified and we are confident that the Manager's detailed knowledge of the underlying investee companies, combined with a prudent and selective investment strategy, will help the Company navigate periods of market volatility while positioning the portfolio for long‐term value creation.

Kavita Patel
Chair
24 September 2026

MANAGER'S REVIEW

Portfolio summary
As at 30 June 2026, the Company's portfolio comprised 52 investments with a total cost of £95.1 million and a valuation of £122.1 million. 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 16 to 19 in the Unaudited Half-Yearly Financial Report.

During the six months ended 30 June 2026, the value of the investment portfolio increased by £3.5 million, largely as a result of £8.7 million of new and follow‐on investments. This was partially offset by a decrease of £5.1 million in the valuation of the investment portfolio, and a £0.1 million loan repayment.

In line with the Board's strategic objectives, we remain focused on growing the Company through further development of Net Asset Value Total Return. For the six months ended 30 June 2026, Net Asset Value Total Return fell by 3.0% while net assets increased by 21.0% to £188.3 million, following the successful fundraise early in the year of £38.6 million net of expenses.

Overall, the portfolio has performed well despite ongoing uncertainty in the market, including fluctuations in technology valuations driven by changing sentiment towards artificial intelligence, and operational challenges affecting certain portfolio companies.

New investments
Three new investments of £6.0 million in aggregate were completed in the six months ended 30 June 2026. Follow-on investments totalling £2.7 million were also made into four existing investee companies. There is a strong pipeline of opportunities that we expect to convert during the second half of 2026.

SAMP Technology Holdings Limited
In February 2026, the Company completed a £2.0 million investment 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 of equipment and improving return on investment for the equity owners. The investment will help scale the business and aid in a software platform rollout.

Vestd Ltd
In May 2026, the Company completed a £1.5 million investment into Vestd, a proprietary software platform that enables businesses to establish, manage and report on equity incentive schemes. Founded in 2014, Vestd has developed a proprietary software platform that digitises and automates equity management, replacing manual processes with an integrated, compliant and auditable system. Vestd serves thousands of businesses, predominantly in the UK and India, and has established a strong reputation for ease of use, customer support and deep integrations. The investment will support the company's next phase of growth, including expansion of its enterprise offering, international growth and the development of additional product functionality for private market participants.

Regenerus Limited
In June 2026, the Company completed a £2.5 million investment into Regenerus, a UK-based diagnostic testing company. Regenerus provides advanced diagnostic testing services designed to support personalised care and evidence-based clinical decision-making. The funding will support the expansion of the company's diagnostic testing and digital platform capabilities, strengthen its laboratory network and accelerate commercial growth.

Follow-on investments
The Company made follow-on investments in four companies during the six months ended 30 June 2026, totalling £2.7 million. Further details of each of these are provided below.

The additional equity injections in the period will be used by the investee companies to support their further growth plans, such as launching new products and expansion of commercial capabilities. We continue to successfully navigate the volatility that has been felt across the markets over the course of the year and remain vigilant about the health of the portfolio and the need for follow-on funding during the second half of 2026. Given the size of the portfolio, further opportunities to deploy capital into growing existing investments are expected.

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.

Evolve Dynamics Limited
In March 2026, the Company completed a £0.3 million follow-on investment into Evolve Dynamics (“Evolve”). This was followed by a further £0.2 million in June 2026. These investments 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.

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 Limited, please see page 17 in the Unaudited Half-Yearly Financial Report.

Sprintroom Limited
In March 2026, the Company completed a £0.4 million follow‐on investment into Sprintroom, which trades as Sprint Electric. The business develops and produces drives used to control electric motors across both light and heavy industrial applications, while also enabling the recovery and reuse of energy that would otherwise be wasted. The investment will support ongoing revenue growth and the development of additional iterations within the new product range.

Post period end activity
After the period end, the Company completed eight follow-on investments totalling £4.6 million into Loopr Ltd, EnterpriseJungle, Inc, Live Group Holdings Limited, Strategic Software Applications Ltd, Ad Signal Limited, Sprintroom Limited, Red Flag Alert Technology Group Limited and Aircards Ltd. The Company also completed two new investments totalling £3.0 million into Ekkosense Ltd and Round Group Limited.

Realisations
No exits were completed during the period, following some years of significant realisations. The Company did, however, receive a £0.1 million loan repayment from Positive Response Corporation Ltd. While M&A activity continues to be influenced by prevailing macroeconomic conditions and geopolitical uncertainty, levels of engagement from both private equity and trade buyers remain encouraging and transaction activity has shown signs of improvement. We continue to work closely with the management teams of portfolio companies to maximise value and are actively assessing potential exit opportunities across a number of investments. We remain focused on achieving attractive realisations at the appropriate time and valuation for Shareholders.

Realisations in the period ended 30 June 2026

The Company received £125,000 from the repayment of a loan during the period. The book cost of this loan was £125,000.

Reconciliation of realised gains and investment holding losses to the Statement of Comprehensive Income:

	Six months ended 30 June 2026 £'000	Six months ended 30 June 2025 £'000	Year ended 31 December 2025 £'000
Realised gains	-	5,338	4,648
Investment holding losses	(5,108)	(4,190)	(205)
Deferred consideration receipts	746	1,361	1,366
Deferred consideration debtor movement	(669)	(1,590)	(1,134)
(Losses)/gains on investments per the Statement of Comprehensive Income	(5,031)	919	4,675

Breakdown of deferred consideration movements in the six months ended 30 June 2026:

	Deferred consideration receipts £'000	Deferred consideration debtor movements £'000
Specac International Limited	449	(428)
Callen-Lenz Associates Limited	297	(241)
	746	(669)

8 Performance incentive fee
In order to incentivise the Manager to generate enhanced returns for Shareholders, the Manager is entitled to a performance incentive fee, designated a share-based payment due to its nature. This fee is equal to 15% of dividends paid to Shareholders, subject to the total return (Net Asset Value plus cumulative dividends paid per share on or after 11 January 2011) exceeding 100p (“High Watermark”), both immediately before and after the performance incentive fee is paid. After each distribution is made to Shareholders where a performance incentive is paid, the High Watermark required to be achieved to trigger a further performance incentive fee will be amended to take account of the dividend paid.

The High Watermark at 30 June 2026 was 117.4p and the total return was 117.2p. As a result of the total return being below the High Watermark and no dividend having been paid in the period, no performance incentive fee was accrued during the period (31 December 2025: £nil).

9 Transactions with the Manager
Foresight Group LLP advises the Company on investments under an agreement dated 30 July 2004. During the period, Foresight Group LLP earned fees of £1,871,000 (30 June 2025: £1,817,000; 31 December 2025: £3,196,000). No performance incentive fee was paid in the period (30 June 2025: £nil; 31 December 2025: £318,000) and no additional provision was recognised as at the period end (30 June 2025: £318,000; 31 December 2025: £nil).

Foresight Group LLP is the Company Secretary and received accounting and company secretarial services fees of £109,000 during the period (30 June 2025: £104,000; 31 December 2025: £215,000).

Foresight Group LLP also received from investee companies arrangement fees of £206,000 (30 June 2025: £190,000; 31 December 2025: £420,000) and directors' fees of £477,000 (30 June 2025: £431,000; 31 December 2025: £857,000). Arrangement fees cover the cost of each deal process, including conducting due diligence and negotiating with management and shareholders, and directors' fees cover the cost of Foresight employees acting as directors on the Boards of each investee company. Foresight Promoter LLP, a related party to the Manager, earned fees of £821,000 (30 June 2025: £197,000; 31 December 2025: £197,000) in respect of costs incurred related to share allotments in the period.

At 30 June 2026, the amount due from Foresight Group LLP was £nil (30 June 2025: £nil; 31 December 2025: £284,000).

In accordance with UK Listing Rules 11.4.1R, 6.4.1R and 6.4.3R, a copy of the Half-Yearly Report and Accounts will be submitted to the Financial Conduct Authority via the National Storage Mechanism.

END

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