Annual Report

For the year ended 30 September 2024

Financial Highlights

1

Fund Performance

1

Strategic Update

Chair's Statement

2

Investment Manager’s Review

6

Top Ten Investments (by Value)

13

Investment Portfolio Summary

14

Unquoted Investments Summary

21

Financial and Performance Review

22

Key Performance Indicators

24

The Company and its Business Model

26

Investment Objective

27

Investment Policy

27

Key Policies

28

Section 172(1) Statement

29

Environmental, Social and Governance ("ESG") Report

32

Principal and Emerging Risks

33

The Regulatory Environment

35

Governance

Board of Directors

37

Investment Management Team

40

Directors’ Report

42

Directors’ Remuneration Report

45

Corporate Governance Statement

49

Audit Committee Report

54

Statement of Directors’ Responsibilities

57

Independent Auditor's Report

Independent Auditor’s Report

to the Members of Unicorn AIM VCT plc

58

Financial Statements

Income Statement

65

Statement of Financial Position

66

Statement of Changes in Equity

67

Statement of Cash Flows

68

Notes to the Financial Statements

69

Information

Shareholder Information

87

Glossary

89

Summary of VCT Regulations

90

Corporate Information

91

Notice of the Annual General Meeting

92

Contents

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access

the

Company's

website

www.unicornaimvct.co.uk

scan this QR

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B

Unicorn AIM VCT plc

|

Annual Report

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2024

•

In addition to the 6.5 pence per share ordinary dividends, a special interim dividend of 11.7 pence per share was

also paid during the year.

•

Net Asset Value (“NAV”) total return for the financial year ended 30 September 2024, aſter adding back dividends of

18.2 pence per share paid in the year, rose by 0.3%.* By comparison the FTSE AIM All-Share Total Return Index rose

by 3.9%.*

•

Offer for Subscription raised £19.5 million (aſter costs).

•

Final dividend of 3.5 pence per share proposed and a special dividend declared of 6.0 pence per share for the

financial year ended 30 September 2024.

•

New Offer for Subscription announced to raise up to £25 million.

* Alternative Performance measures.

Financial Highlights

for the year ended 30 September 2024

Ordinary Shares

Shareholders'

Funds*

(£m)

Net asset value

per share

(NAV)

(p)

10 year

cumulative

dividends†

paid per share

(p)

Net asset value

plus cumulative

dividends paid

per share

(p)

Share

price

(p)

30 September 2024

199.4

104.7

117.7

222.4

93.5

31 March 2024

199.5

103.6

114.7

218.3

91.5

30 September 2023

211.9

122.6

99.5

222.1

103.5

31 March 2023

218.4

125.5

96.5

222.0

103.5

* Shareholders' funds/net assets as shown on the Statement of Financial Position on page 66.

†

The Board has recommended a final dividend of 3.5 pence per share and declared a special dividend of 6.0 pence per share for the year ended 30 September 2024 bringing total

dividends for the year to 24.2 pence per share. If the final dividend is approved by Shareholders, then these payments will bring total dividends paid in the last ten years from

30 September 2014 to 127.2 pence per share.

Percentage of Assets Held as at 30 September 2024

Valuation based on fair value

Fund Performance

** The criteria required for a holding to be a qualifying holding are given on pages 89 and 90.

*** Other funds include the Unicorn Ethical Fund, the BlackRock Cash Fund and the Royal London Short-Term Money Market Fund.

I am pleased to present the Company's Audited Annual Report

for the year ended 30 September 2024.

Introduction

The economic and geopolitical environment in both the UK and

globally has been challenging. Following a sustained period of

rising interest rates, aimed at curbing inflation, the UK economy

has shown some tentative signs of stabilisation, albeit that

productivity is still below par and economic growth remains

modest. Despite the rate of inflation having declined, the cost

of living remains high, which has placed a strain on household

budgets and dampened consumer confidence.

The faltering macroeconomic environment has been reflected in

the behaviour of the UK stock market, where investor sentiment

remains fragile. Sectors perceived as being less vulnerable to

geopolitical or economic shocks have benefited from their

global exposure or have been rewarded for strong operational

performance. In contrast, the FTSE AIM All-Share Index ("AIM

Index"),

which

is

composed

of

smaller,

growth-oriented

businesses, has continued to face significant headwinds. Despite

this, the AIM Index delivered a total return of +3.9% for the

year ended 30 September 2024. Increased borrowing costs, a

reduced appetite for risk and a continued reluctance to invest

in smaller early-stage businesses meant however that your

Company underperformed the AIM Index, producing a positive

total return of 0.3%.

Economic & Market Review

The Bank of England’s monetary tightening measures have

brought down the rate of inflation. Despite struggling to generate

meaningful and sustained growth, the economy managed to

avoid falling into a prolonged recession. Rising costs of energy,

raw materials, and labour continued to pose challenges, while the

housing market soſtened as mortgage rates remained elevated,

further constraining consumer spending.

The FTSE All-Share Index delivered a total return of +13.4%

during the period under review, primarily due to its focus on

larger, more liquid, and oſten globally diversified firms. This

significant divergence in performance relative to the AIM Index

emphasises the continued and prevailing preference among

the investor community for stable, liquid assets over higher-risk

investments.

Despite

these

challenges,

certain

AIM

sectors

including

technology, healthcare, and renewable energy demonstrated

resilience. Companies in these areas continued to benefit

from

structural

trends

towards

digital

transformation

and

sustainability, which remain attractive to investors. Additionally,

the relative weakness of the pound continued to support Merger

and Acquisition ("M&A") activity, as undervalued UK assets

appealed to foreign buyers.

A good example of this was the acquisition of Abcam Plc by

Danaher Corporation in January 2024. The Investment Manager

initially backed Abcam at its Initial Public Offering ("IPO")

in November 2005, reflecting a long-term commitment to a

high-growth, innovative business. The successful sale of Abcam

delivered an overall return on investment of 821.9% and led to a

special dividend of 11.7 pence per share being paid to Unicorn

AIM VCT Shareholders in February 2024, underscoring the value

generated by the Investment Manager's early and sustained

investment. The strong returns generated through such M&A

activity over the past 2 years have provided significant benefits

to Shareholders and resulted in the payment of special dividends

totalling 50.7

 pence per share since 1 October 2022.

Net Assets

As at 30 September 2024, the audited net assets of the Company

were £199.4 million, a decline of £12.5 million over the course

of the financial year. There were a number of moving parts

behind this fall, with a decrease in the value of the investment

portfolio of £3.3 million, £32.0 million of dividends paid and a

further £4.9 million returned to Shareholders through share

buybacks all contributing to the reduction in net assets. This

was partially offset by the fully subscribed Offer for Subscription,

which raised net proceeds of £19.5 million and £4.4 million

from Shareholders who invested in the Dividend Reinvestment

Scheme (DRIS). Aſter adding back all dividends paid, the total

return in the period was +0.3%.

The purpose of this Strategic Report is to inform Shareholders of the Company's progress on key matters and assist them in assessing the

extent to which the Directors have performed their legal duty to promote the success of the Company in accordance with section 172 of

the Companies Act 2006.

The Investment Manager’s Review on pages 6 to 12 includes a comprehensive analysis of the development of the business during the

financial year and the position of the Company’s main investments at the end of the year.

Chair's Statement

2

Unicorn AIM VCT plc

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Annual Report

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2024

Strategic Update

Governance

Independent Auditor's Report

Financial Statements

Information

Investment Performance Review

The Company’s total return of +0.3% underperformed the AIM

Index, which delivered a total return of +3.9% over the period.

Whilst disappointing, it is worth noting that the average total

return of the other constituents within the AIC VCT AIM-Quoted

Peer Group was -5%.

The investment portfolio remains well-diversified, comprising

holdings

that

range

from

early-stage,

cash-

consuming companies, to more well-established holdings

that are both profitable and cash-generative. At the close of

the financial year, the Company held 79 active VCT qualifying

investments, with 39 of these valued in excess of £500,000. More

than 70% of the qualifying businesses in the Company continue

to maintain a net cash position on their balance sheets.

Despite

resilience

in

the

broader

UK

stock

market,

the

smaller companies listed on AIM underperformed relative to

other, more established, UK-listed smaller companies during

the period. This underperformance can largely be attributed to

risk aversion among investors, who continue to favour larger,

more liquid assets during a period of elevated interest rates

and persistent inflation. AIM-listed companies, especially those

outside of the FTSE AIM 100 Index, are typically early-stage,

cash-consuming businesses with high growth aspirations. It is

unsurprising therefore that many of them have encountered

difficulties in attracting further, much needed capital under these

tighter financial conditions. The small size and limited liquidity

of these companies continues to deter investors and, for the

time being, the focus remains on more established companies

offering stronger cash flow stability.

The specific and rather unusual sector composition of the AIM

Index further heightened its vulnerability to economic headwinds

throughout the year. Sectors that are well represented within the

AIM Index, such as technology, consumer discretionary, and

biotechnology, were negatively affected by rising borrowing

costs and weakening consumer confidence. These conditions

proved particularly challenging for companies with longer paths

to profitability, as they depend heavily on external funding to

sustain their growth. Consequently, the AIM Index experienced

disproportionately weak returns due to its greater weighting in

sectors that are traditionally vulnerable in a rising interest rate

environment. This was in stark contrast to the main UK Indices,

which continued to see capital allocations being directed

towards more stable sectors including energy, commodities, and

financials.

The Company’s performance reflects these broader market

dynamics. While the portfolio’s diversification strategy reduced

risk to some extent, certain holdings within high-growth sectors

faced considerable pressure and, as is normal in Venture Capital

investing, some of our investee companies failed during the

year under review. Nonetheless, we believe that the Company’s

strategic positioning within high growth sectors will ultimately

enable the portfolio to generate Shareholder value over the long

term. As the macroeconomic environment begins to stabilise,

and with expectations of improved investor sentiment towards

smaller, growth-oriented companies, both the Board and the

Investment Manager are optimistic that the Company is well

positioned to deliver positive capital returns.

Portfolio Activity

During the period, there were several opportunities to deploy

capital into both new investments and follow-on opportunities

within existing holdings. Encouragingly, the Investment Manager

continues to identify new and potentially highly attractive

investment prospects, some of which are currently under active

consideration. This pipeline of opportunities reflects a gradual

yet steady recovery in both the quantity and quality of potential

investments available to the Company.

Five new VCT qualifying investments were made during the

period, at a total cost of £7.5 million. In addition, £5.9 million of

capital was allocated across nine of the existing VCT qualifying

investee companies, to support their future growth.

A number of full and partial disposals were also made during

the course of the financial year. Total proceeds from disposals

of qualifying investments amounted to £39.2 million, realising

an overall capital gain of £28.8 million over the lifetime of the

investments.

The Investment Manager continued to utilise two money market

funds, and an investment in the Unicorn UK Ethical Income

Fund, alongside holdings in some large, highly liquid UK equities

during the period. These were non-qualifying investments,

which continued to enable Shareholders to benefit from the

current higher interest rate environment, while maintaining

a strong liquidity position to fund new qualifying investment

opportunities.

A more detailed analysis of investment activity and performance

can

be

found

in

the

Investment

Manager’s

Review

on

pages 6 to 12.

Chair's Statement

(continued)

Unicorn AIM VCT plc

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Annual Report

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2024

3

Strategic Update

Governance

Independent Auditor's Report

Financial Statements

Information

Dividends

A special dividend of 11.7 pence per share, was paid to

Shareholders on 14 February 2024 following the successful

acquisition of Abcam by Danaher Corporation.

An interim dividend of 3.0 pence per share, for the half year ended

31 March 2024, was paid to Shareholders on 13 August 2024.

The Board is also pleased to recommend a further final dividend

of 3.5 pence per share for the financial year ended 30 September

2024. This dividend,

if approved

by Shareholders at

the

Company’s forthcoming AGM, will be payable on 21 February

2025 to Shareholders on the register as at 3 January 2025. In

addition, the Board has declared a special dividend of 6.0 pence

per share as a result of the M&A activity that led to the disposal

of our shareholdings in Mattioli Woods and Keywords Studios

during, and shortly aſter, the period end. This special dividend

will be payable alongside the final dividend on 21 February 2025.

Total

dividends

in

respect

of

the

financial

year

ended

30 September 2024, including these significant special dividends

are therefore expected to be 24.2 pence per share.

Share Buybacks & Share Issues

The Board continues to believe that it is in the best interests of the

Company and its Shareholders to make market purchases of its

shares from time to time. During the period from 1 October 2023

to 30 September 2024, the Company bought back 5,205,225 of

its own Ordinary Shares for cancellation, at an average price of

93.4 pence per share including costs.

Future repurchases of shares will continue to be made in

accordance with guidelines established by the Board and will

be subject to the Company having the appropriate authorities

from Shareholders and sufficient funds available for this purpose.

Share buybacks will also be subject to the Listing Rules and any

applicable law at the relevant time. Shares bought back in the

market are normally cancelled.

An Offer for Subscription was launched on 26 January 2024.

The Offer was again strongly supported and closed, fully

subscribed, on 15 February 2024. The total raised, net of all

costs, was £19.5 million and resulted in the issue of 18.7 million

new shares. On behalf of the Board, I would like to welcome

all new Shareholders and to thank existing Shareholders for

their continued support. As at 30 September 2024, there were

190,437,026 Ordinary Shares in issue.

New Offer

On 27 November 2024, the Company announced the intention

to launch an Offer for Subscription to raise up to £25 million

through the issue of new ordinary shares. The prospectus, which

will contain the full details and terms and conditions of the Offer, is

expected to be available in January 2025.

VCT Status

There were no changes to VCT legislation during the period

under review.

The Government last introduced new legislation pertaining to

Venture Capital Trusts in November 2017. The most important of

these new rules came into effect in the 2019/2020 tax year and are

designed to ensure that capital is directed at young, developing

businesses, which might otherwise find it difficult to secure

funding to finance their planned growth.

One of the key tests is the requirement for at least 80% of

a Venture Capital Trust’s total assets to be invested in VCT

qualifying companies. I am pleased to report that, excluding

new capital raised in Offers for Subscription within the last three

years, Unicorn AIM VCT’s qualifying percentage was 100% of

total assets as of 30 September 2024. All other HM Revenue &

Customs tests have also been complied with during the period,

and the Board has been advised by its VCT status advisor,

PricewaterhouseCoopers ("PwC"), that the Company continues

to maintain its Venture Capital Trust status. It will, of course,

remain a key priority of the Board to ensure that the Company

retains this VCT status. We welcome the new government’s swiſt

action to extend the State Aid rules for venture capital trusts until

2035.

Board changes

Jeremy Hamer will not be seeking re-election at the forthcoming

AGM. We would like to take this opportunity to thank Jeremy

for his invaluable service as a Non-Executive Director and Audit

Committee Chair of the Company.

We also take this opportunity to welcome Julian Bartlett, who

was appointed to the Board as a new Non-Executive Director on

2 October 2024. Jeremy's wealth of experience and wise counsel

will be difficult to replace; however, we are pleased to have

secured such a highly experienced director in Julian, following

an extensive and open executive search process.

Chair's Statement

(continued)

4

Unicorn AIM VCT plc

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Annual Report

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2024

Strategic Update

Governance

Independent Auditor's Report

Financial Statements

Information

Annual General Meeting

I would like to take this opportunity to thank all Shareholders

for their continued support of the Company and to invite you

to attend the Company’s Annual General Meeting, which is to

be held on 12 February 2025. Full details of the AGM including;

location, timing, and the business to be conducted, are given

in the Notice of the Meeting on pages 92 and 93. Shareholders’

views are important, and the Board therefore encourages all

Shareholders to vote on the resolutions within the Notice of

Annual General Meeting on pages 92 and 93 using the proxy

form, or electronically at https://unicorn.city-proxyvoting.uk.

The Board has carefully considered the business to be approved

at the AGM and recommends that Shareholders vote in favour of

all the resolutions being proposed.

Outlook

The current financial year is expected to reflect many of the same

themes that have shaped recent performance, with investor

sentiment toward smaller quoted companies likely to remain

fragile. The Company is however, well-positioned to navigate this

environment, benefiting, as it does, from a diversified portfolio

that has consistently demonstrated resilience.

The Investment Manager is seeing early indications of renewed

investor interest in the AIM, driven by attractive valuations. The

IPO market has also shown modest signs of recovery, with several

new companies preparing to list. The Investment Manager

remains highly selective, ensuring that new investments align

with the Company’s long-term growth strategy. This disciplined

approach, coupled with an improved deal pipeline, suggests

promising opportunities for capital deployment in the coming

year.

The Budget on 30 October 2024 brought in a number of

measures that will impact UK businesses in general, and AIM-

listed Companies in particular. The 1.2% increase in Employers'

NI, coupled with the reduction in earnings thresholds on which

it is paid, will have a negative effect on all businesses that employ

more than a handful of people. The increase in CGT to 24%

and the increase in rates for Business Asset Disposal Relief, and

Entrepreneurs/Investors Relief to 14% next year and 18% the year

aſter, may well discourage current and potential entrepreneurs

from taking on risk to grow existing businesses or start new

ones. Finally, AIM-listed shares will be partially brought inside the

net for Inheritance Tax purposes with Business Relief applying to

only 50% of their value. This may well reduce the attractiveness

of AIM shares to potential investors and have a detrimental

effect on the AIM in general. Meanwhile, making assets held in

pension schemes subject to Inheritance Tax from April 2027 may

also alter attitudes to long-term saving and investor behaviour.

It is possible that the prospect of paying 40% Inheritance Tax

on pension assets, may encourage the wealthy to mitigate tax

liabilities by increasing their exposure to AIM-listed stocks,

where partial relief will at least remain available. Nonetheless, it

is currently hard to see how any of these measures are going to

stimulate much needed economic growth.

Nevertheless, the Board shares the Investment Manager’s

confidence that the investment portfolio is well-positioned to

deliver capital gains as and when market conditions improve.

Although near-term headwinds persist, the Board remains

cautiously

optimistic

about

the

outlook.

The

Company’s

strategic positioning within high-growth sectors, combined

with an expanding pipeline of investment opportunities, places

it in a strong position to capture any recovery in market value

and deliver meaningful capital growth for Shareholders.

Tim Woodcock

Chair

5 December 2024

Chair's Statement

(continued)

Unicorn AIM VCT plc

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Annual Report

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2024

5

Strategic Update

Governance

Independent Auditor's Report

Financial Statements

Information

Introduction

The twelve-month period ended 30 September 2024 was a

challenging period for the Company in both absolute and relative

performance terms. The Company’s net asset value total return of

+0.3% in the financial year, compares to a total return of +3.9% for

the AIM Index over the same period.

While this is a slightly disappointing relative performance, it was

largely the result of a clear gulf in performance between the largest

and smallest companies listed on AIM. The FTSE AIM 50 Index,

which represents the fiſty largest companies on AIM, registered a

total return of +9.2% over the twelve-month period. Meanwhile,

the Company’s performance remains governed by its requirement

to invest in early-stage, scale-up companies. Unfortunately, the

conditions for these smaller companies remained challenging,

making it harder for our portfolio of investee companies to

outperform the larger more established companies on AIM.

The financial year commenced with high levels of economic

and geopolitical uncertainty. The UK economy entered a mild

technical recession in the second half of 2023, reporting a small

decline in quarterly gross domestic product ("GDP") for two

consecutive quarters. Also, in September 2023, the UK consumer

price index ("CPI") was running at an annual inflation rate of 6.7%,

more than triple the 2% level set by the Government as a target

for the Bank of England ("BoE") to reach and maintain. As inflation

continued to pose a serious threat to economic growth, the BoE

initiated the sharpest rate hiking cycle for many decades, which

saw the Bank Rate peak at 5.25% in September 2023. Politically,

the UK has also now experienced five Prime Ministers in just seven

years, reflecting persistent instability in the post-Brexit era.

Globally, geopolitical risks remained at elevated levels throughout

the period under review including: the war of attrition being

waged by Russia against Ukraine in Europe, the resurgence of

conflict in the Middle East between Israel and a number of Iranian

backed militant groups, and growing tensions between China and

Taiwan in the Far East.

Set against this volatile and unpredictable macro-economic

backdrop, it was somewhat surprising to see global stock market

indices rally so strongly during the financial year, from a low point

reached in October 2023. US equity indices registered notably

strong returns over the twelve-month period, as investors bet

that the US Federal Reserve would successfully navigate macro-

economic challenges and guide the American economy to a so-

called ‘soſt-landing’, thereby reducing inflation without putting

the economy into recession. The S&P 500 Index registered a total

return of +36.3% over the twelve months ended 30 September

2024. Meanwhile, the NASDAQ Composite Index posted a total

return of +38.7% over the same period. Most notably, Nvidia’s

stock price surged by over +179%, as investors concluded that

demand for its computer chips would continue to strengthen

significantly in an effort to satisfy the phenomenal growth in

generative AI computing power.

In the UK, over the same twelve-month period, equity market

performance was led by the FTSE 250 (excluding Investment

Trusts) Index, which recorded a total return of +21.4%, followed

by the FTSE 100 Index, which delivered a total return of +12.4%.

The strong performance of the mid-cap index reflected positive

contributions from sectors most sensitive to a reduction in

interest rates including: Non-Banking Financial Services, Real

Estate and House Builders. Meanwhile, the UK’s large-cap index

also benefited from its large weighting in Banks and Defence

sectors, which both performed strongly. Banks have benefited

from the higher interest rate environment, which enabled them

to earn a greater net interest margin on their loans. Ongoing

geopolitical tensions fuelled a significant increase in defence

spending by NATO countries, driving strong order intake at BAE

Systems, among others.

However, investor appetite for backing UK smaller companies,

particularly AIM listed shares, remained muted, and was clearly

reflected in the much lower +3.9% total return registered by the

AIM Index over the same twelve-month period. This divergence in

performance underscores the persistent re-allocation of capital by

investors away from smaller, higher risk, higher growth companies

listed on AIM and towards large, more liquid, and globally

diversified businesses in the UK and US equity markets. The FTSE

AIM All-Share Index as at 30 September 2024 was almost 44%

below its previous peak level reached in September 2021. Clearly,

a sharp improvement in investor appetite for AIM-listed shares is

necessary for this situation to change for the better.

Headwinds to equity performance subsided during the second

half of the Company’s financial year ended 30 September 2024.

Inflation fell steadily to reach 2.2% in August 2024 and the BoE

implemented its first interest rate cut since 2016, signalling the

start of a new phase of easing monetary policy. This scenario

should ultimately help support the performance of smaller AIM

listed companies via lower borrowing costs and a more benign

inflationary cost environment. M&A activity also grew during the

year, as private equity investors and larger corporations were

increasingly attracted by the generally depressed valuations of

AIM listed companies.

The Labour Party’s victory in July’s General Election ought to bring

about a more stable political outlook for the UK. One of the new

Government’s key pledges is to increase levels of investment

in areas that will drive economic growth. The Chancellor,

Rachel Reeves has however repeatedly stated that the new

Government inherited a ‘black hole’ in the public purse and is

now implementing plans to progressively increase taxation to

help fund further increases in public sector expenditure. Investor

concern surrounding the possible removal of tax reliefs also led to

weaker sentiment towards AIM stocks in particular.

Investment Manager’s Review

6

Unicorn AIM VCT plc

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Annual Report

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2024

Strategic Update

Governance

Independent Auditor's Report

Financial Statements

Information

Net Asset Performance

As at 30 September 2024, the audited net assets of the Company

amounted to £199.4 million, which equates to a decline of

£12.5 million during the twelve-month period under review.

The audited Net Asset Value per Share was 104.7 pence as at

30 September 2024, which represents a capital decline (excluding

dividends paid) of -14.6% on the closing NAV per share of 122.6

pence as at 30 September 2023. Aſter adding back dividends paid

during the financial year, the Net Asset Value (“NAV”) Total Return

of the Company was +0.3%.

Despite the substantial net proceeds received from a fully

subscribed Offer for Subscription together with a positive return

generated by the Company’s investment portfolio, net assets

registered a decline overall during the period under review. This

decline was largely due to the £32.0 million in dividends that were

paid to Shareholders in the period. A further £4.9 million was also

returned to Shareholders by way of share buybacks during the

financial year.

The Investment Manager has always adopted a cautious approach

to deploying new capital. While total investment in AIM IPOs and

AIM-listed companies reduced in 2024 in comparison to previous

years, it is nonetheless pleasing to report that several new VCT

qualifying investments were concluded during the period. In

addition, a number of follow-on investment opportunities have

also been completed since the proceeds from the Offer for

Subscription were received. While the short-term performance

of these new VCT qualifying investments has been volatile, the

Investment Manager believes the current portfolio of investments

is particularly well-positioned to deliver meaningful long-term

growth in net assets.

Performance Review

The financial year under review has been another challenging

period for the Company.

A number of investee companies suffered further declines in their

market values, which is particularly disappointing since it follows

on from the significant share price declines experienced in the

prior financial year. The Company’s holdings in early-stage, scale-

up businesses, including those in the Life Sciences, Technology

and Pharmaceutical sectors, came under particular pressure since

they typically require multiple funding rounds, and were therefore

disproportionately affected by the difficult market conditions.

By contrast, the more established, profitable and cash generative

businesses in the portfolio generally delivered positive total

returns. Several of these more mature investee companies received

take-over approaches during the year. Notably, the Company’s

long-standing holdings in Mattioli Woods, Keywords Studios,

City Pub Group and Belvoir Group all received recommended

takeover offers at healthy premia to their underlying share prices.

Given the current circumstances, it seems likely that the Company

will continue to experience elevated levels of takeover activity

amongst its portfolio of investments.

As a reminder, the Investment Manager is required by prevailing

VCT legislation to ensure that capital is deployed in early-

stage, scale-up businesses. Clearly, investment in immature

businesses carries a high degree of risk. We therefore anticipate

further divergence of returns from within the portfolio of

investee companies.

Over the past two decades however, many of the Company’s

longer-standing investments have developed into established,

sustainably profitable, cash-generative businesses and, in the

course of this development, have also generated substantial

capital gains. We remain confident that this trend will continue.

The investment portfolio remains diversified, both by number of

holdings and by sector exposure. At the financial year end, the

Company held investments in 79 active VCT qualifying companies

and 10 non-qualifying investments. These investments are spread

across 27 different sectors.

A review of the ten most meaningful contributors to performance

from VCT qualifying investments (both positive and negative)

follows:–

Largest Contributors

Hasgrove

(20.2% of net assets, +£17.4 million) is an unquoted

holding company, which wholly-owns an operating subsidiary

called Interact. Interact is a fast-growing global provider of

corporate intranet solutions that operates a Soſtware-as-a-Service

(SaaS) business model.

In

its

most

recent

results

for

the

financial

year

ended

31 December 2023, Hasgrove reported revenue growth of

over 26% to £37.0 million and operating profit growth of 19%

to £9.6 million, when compared to its prior financial year.

Hasgrove continues to perform strongly, with profits growth

continuing to exceed expectations, a growing customer base,

and an accelerating stream of highly predictable recurring

revenues. As a consequence of this continued strong financial

and operational performance, the carrying fair value of the

Company’s investment in Hasgrove was raised to £40.3 million,

representing an increase of +70.8% on the closing fair value of

£23.6 million as at 30 September 2023.

Cohort

(5.7% of net assets, +£5.5 million) is a defence technology

group, focused on providing advanced solutions in defence,

security, and related markets. Through its subsidiaries, it delivers

innovative services such as electronic warfare systems, cyber

security,

and

surveillance

technologies.

These

capabilities

support critical operations for defence organisations worldwide,

ensuring enhanced safety and security across complex and high-

risk environments.

Investment Manager’s Review

(continued)

Unicorn AIM VCT plc

|

Annual Report

|

2024

7

Strategic Update

Governance

Independent Auditor's Report

Financial Statements

Information

Investment Manager’s Review

(continued)

In its most recent annual results for the financial year ended

30 April 2024, Cohort reported record revenues, operating profits,

and order intake levels. Its current order book underpins over 90%

of forecast revenues for its current financial year and management

expect another year of good growth. Cohort also announced five

substantial contract wins during the year totalling over £45 million

in additional revenues.

Mattioli Woods

(sold in year, +£2.3 million) is a specialist provider

of wealth management and employee benefits services. Mattioli

Woods offers tailored financial planning, asset management, and

advisory solutions for individuals and corporate clients. Through

its expertise in pension consultancy and investment strategies,

Mattioli Woods ensures long-term financial security and growth,

addressing the diverse needs of its clients across the UK.

In March 2024, Mattioli Woods announced the terms of a

recommended takeover offer from Pollen Street Capital, a UK

listed private equity firm, specialising in investments within

the financial services sector. The offer valued Mattioli Woods

at approximately £432 million, or 804 pence per share, which

represented a 34% premium over Mattioli’s closing price prior to

the announcement. The transaction completed on 2 September

2024, generating proceeds of £7.8 million and realised a capital

profit on book cost of £6.1 million.

Belvoir

Group

(“

Belvoir

”)/

The

Property

Franchise

Group

(“

TPFG

”) (3.2% of net assets, +£2.3 million) is a UK based franchised

property services company that specialises in residential lettings

and sales through a network of franchisees. In January 2024, Belvoir

announced a recommended all-share merger with TPFG to form

one of the UK’s largest multi-brand lettings and estate agency

groups, integrating both companies' networks and services.

Under the merger terms, Belvoir shareholders were entitled to

approximately 48.25% of the combined entity, valuing Belvoir

at around £110 million pre-merger. The transaction completed

in March 2024, and we received new shares in TPFG in exchange

for our shares in Belvoir. Following receipt of these shares, we

disposed of the portion of shares which were non-qualifying and

retained the qualifying element.

Keywords Studios

(“

Keywords

”) (3.0% of net assets, +£2.2 million)

is a leading provider of creative and technological solutions for

the video games and entertainment sectors. Keywords’ offerings

include: game development, art creation, audio production,

quality assurance testing, localisation, and marketing services.

Its comprehensive solutions ensure the smooth production and

global distribution of engaging content, significantly enhancing

player experience, and contributing to the success of top gaming

titles worldwide.

Following a number of unsolicited and rejected bids from EQT,

a global private equity firm, Keywords announced in July 2024 a

final, recommended takeover offer, which valued Keywords at

approximately £2.1 billion, or 2,450 pence per share, reflecting

a premium of 66.7% over the closing price prior to the initial

announcement. This offer completed on 23 October 2024,

generating proceeds of £6.0 million and a realised gain of

£5.7 million.

City Pub Group

(sold in year, +£1.7 million) is a UK-based

pub company that owns and manages a portfolio of over fiſty pubs

located in the southern regions of England and Wales.

In November 2023, Young & Co’s Brewery (“Young’s”) announced

a recommended takeover offer for City Pub Group valuing

the company at approximately £162 million, or about 1,110 pence

per share, reflecting a 46% premium over the company's closing

share price prior to the announcement. The offer was satisfied

through a combination of cash and new Young’s shares. The

transaction completed on 4 March 2024 and resulted in cash

proceeds of £4.2 million and realised a profit on the Company’s

book cost of the holding in City Pub Group of £0.6 million.

Following receipt of the new Young’s shares, the Investment

Manager disposed of the portion of shares that were non-

qualifying and retained the qualifying portion of shares.

Anpario

(3.1% of net assets, +£1.4 million) is a leading provider

of natural animal health products. Anpario develops and

manufactures innovative solutions for poultry, livestock, and

aquaculture, focusing on nutritional additives and biosecurity

measures. Anpario's range of products aim to enhance the

health and welfare of farm animals, while promoting sustainable

farming practices.

Anpario recently released positive interim results, which covered

the period ended 30 June 2024. These results highlighted

a

recovery

in

global

agricultural

markets,

leading

to

an

improvement in sales volumes and a stabilisation of raw material

costs. As a result, Anpario experienced strong growth in revenue

(+11% to £17.0 million) and pre-tax profits (+53% to £2.1 million)

year-on-year. Management also indicated a robust start to the

second half of the year, with a sustained recovery in volumes

across all product lines.

SulNOx Group

(1.2% of net assets, +£1.0 million) specialises

in providing responsible solutions for decarbonising liquid

hydrocarbon fuels. SulNOx’s natural, biodegradable fuel additives

effectively reduce harmful greenhouse gas emissions.

SulNOx’s results for the year to 31 March 2024 reported record

turnover of £0.5 million as the business won its first sales of

product

to

marine

customers.

Despite

operational

losses,

SulNOx's now has positive business momentum, is expanding

its operations globally and has added new board members with

expertise in the marine sector. SulNOx has identified potential

growth opportunities in the African, Asian, US, and European

markets. In a recently released, independent report, the results of a

generator-based study, unequivocally demonstrate commercially

meaningful fuel savings and emissions reductions, which should

assist SulNOx to achieve further commercial traction.

8

Unicorn AIM VCT plc

|

Annual Report

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2024

Strategic Update

Governance

Independent Auditor's Report

Financial Statements

Information

Animalcare Group

(1.9% of net assets, +£0.9 million) is an

international veterinary sales and marketing organisation which is

headquartered in York. In April 2024, Animalcare released results

for the financial year ending 31 December 2023, which reported

an improved trading performance driven by management’s

focus on growing sales of its more popular and more profitable

products in the group’s portfolio. This approach facilitated an

improvement in gross margins and improved cash generation.

The group also disposed of its stake in Identicare, which is a

UK-based pet microchipping business, for a cash consideration

of circa £25 million. Management intends to prioritise growth

in the animal pharmaceuticals business, via a combination of

organic and acquisitive investment opportunities. In September

2024, Animalcare announced interim results for the six months

ended 30 June 2024, which reported a continued positive trading

performance and outlook.

Incanthera

(1.4%

of

net

assets,

+£0.9

million)

is

a

UK-

based

dermatology

company

currently

wholly

focused

on commercialising a range of luxury skincare targeted solutions.

A recently announced partnership agreement with Marionnaud

has resulted in an exclusive Europe-wide product launch and

underscores the growth potential of their proprietary Skin +

CELL brand. Incanthera's specialist expertise in formulation

and delivery, coupled with a significant market opportunity,

positions the business well for rapid revenue growth. In order to

fund the short-term increase in working capital, the business has

strengthened the balance sheet by way of a further funding round

of £1.1 million, in which we were pleased to participate.

Largest Detractors

Oxford Biodynamics

(“OBD”) (0.4% of net assets, -£5.8 million) is

a biotechnology company dedicated to advancing healthcare by

creating and distributing precision tests for life-changing diseases.

OBD’s

pioneering

EpiSwitch

technology

is

acknowledged

for its ability to assist in a more accurate diagnosis of prostate

cancer. OBD’s Prostate Screening Test (PSE) was launched ahead

of schedule earlier this year and has received approval codes

for reimbursement in the US by health insurers. However, a

laboratory expansion and an increased investment in sales &

marketing capacity, resulted in high levels of cash outflows during

the financial year. In March 2024, OBD raised a further £10 million

despite the difficult market conditions. In October 2024, OBD’s

management team announced a strategic review of the business,

including a material reduction in costs in an effort to maximise

the cash runway. Nonetheless, it is likely that OBD will require

additional funding by early 2025. OBD’s management team will

be providing an update on the progress of the strategic review in

due course.

Surface Transforms

(0.0% of net assets, -£4.7 million) is a

manufacturer of carbon fibre ceramic brake discs for the

automotive industry. Surface Transforms has faced extreme

challenges over the past year and slowly improving levels of

manufacturing output have been insufficient to meet the forecast,

and necessary levels of revenue growth. The implementation of

capacity upgrade projects has taken longer, and cost more than

originally anticipated. This has resulted in increased operational

and working capital costs, which have led to a material decline

in the company's cash balance. Revenues for the financial year

ending 31 December 2024 are likely to fall significantly short of

prior expectations and management have since enacted measures

to carefully manage working capital, while also reviewing all

available future funding options.

Tracsis

(4.5% of net assets, -£4.3 million) is a leading provider

of soſtware, hardware, data analytics and services for the rail,

traffic data, and wider transport industries. Products and services

provided by Tracsis help their customers improve the efficiency

and safety of their operations, reduce costs, make better

decisions, and improve customer service. During the summer,

Tracsis warned that its business had been negatively affected by

a period of pre-election inactivity, which imposed restrictions on

spending across central government, local authorities, and train

operating companies. Current fiscal year revenue forecasts were

trimmed by circa 5%, however, earnings forecasts were cut by

a more substantial 30%, reflecting Tracsis’s relatively high fixed

cost base. In counterbalance to this setback, the management

team emphasised that overall momentum in the group remained

strong and that the market opportunity for its rail enterprise

soſtware continues to grow.

Avacta

Group

(1.0%

of

net

assets,

-£3.1

million)

is

a

biopharmaceutical company focused on developing innovative

cancer therapies and diagnostics using its proprietary Affimer®

technology. In its recent interim results, Avacta reported strong

progress with its Phase 1a clinical trial for AVA6000, supported by

a successful fundraise of £30 million earlier this year. Management

emphasised that both preclinical studies and ongoing clinical data

support confidence in the broader potential of its pre|CISION™

platform. Additionally, a process is underway to divest its

diagnostics division to sharpen focus on the therapeutics division.

Aurrigo

International

(“

Aurrigo

”)

(2.9%

of

net

assets,

-£2.8 million), is a leading global provider of innovative transport

technology, specialising in autonomous and semi-autonomous

solutions. Aurrigo’s patented products and services tackle the

ongoing transport issues that the aviation industry around the

world is still facing due to labour shortages caused by the COVID

pandemic. In November 2023, Aurrigo secured an additional

£3.84 million, including £1.5 million from the Company, to

support its development plans. This important funding round

was completed at a significant discount to the underlying

share price, immediately prior to the announcement of the

latest investment round. Since then, Aurrigo has released half-

year financial results, which confirmed significant growth in

revenues in both its Autonomous and Automotive divisions.

Total revenues increased by 26% (£3.9 million), gross profit was

up 100% (£1.4 million). Cash reserves were £1.8 million. Aurrigo’s

management team anticipates delivering significant growth in

Investment Manager’s Review

(continued)

Unicorn AIM VCT plc

|

Annual Report

|

2024

9

Strategic Update

Governance

Independent Auditor's Report

Financial Statements

Information

Investment Manager’s Review

(continued)

revenues during the 2025 financial year. Meanwhile, by exerting a

tight control of overheads, management is confident that margins

will improve during the remainder of the current financial year.

Directa Plus

(0.5% of net assets, -£2.4 million) is a leading

supplier of graphene, an innovative material with a wide range

of applications across a variety of industries including consumer,

energy, automotive, and aerospace. Directa Plus reported lower

sales and profitability in its most recent interim results, reflecting a

variety of challenges, including a delayed start to a key contract, the

cessation of lower-margin contracts and a temporary slowdown

in orders from a major workwear client. Despite these short-

term setbacks, Directa Plus remains focused on strengthening

its commercial capabilities, driving growth through production

efficiencies, cost restructuring, and converting contracts from its

growing pipeline of opportunities.

Destiny

Pharma

(0.0%

of

net

assets,

-£2.0

million)

is

a

biotechnology firm focused on creating innovative anti-infection

solutions. Its lead product, XF-73 Nasal, is an antimicrobial gel

designed

to

prevent

post-surgical

infections and currently

remains in late-stage development.

In July 2024, Destiny Pharma's Board came to the conclusion

that staying on public markets hindered their ability to secure

adequate funding for the Phase 3 clinical trials of this product.

Despite the strong market potential of XF-73 Nasal, the company

has faced challenges in raising further capital and delays in

securing a commercially viable licensing deal. Given limited

funding opportunities in public markets and significant cash

constraints, the Board concluded that transitioning to private

ownership would enhance access to the necessary capital.

Unfortunately, this initiative was unsuccessful and, on 22 August

2024, Destiny Pharma entered administration, having failed to

secure the necessary capital from alternative sources. At this

point, the value of our investment in Destiny Pharma was written

down to zero.

Lunglife AI

(0.2% of net assets, -£1.7 million) is a biotechnology

company focused on using artificial intelligence to improve the

early detection and diagnosis of lung cancer. By analysing lung

samples using its proprietary algorithms, Lunglife aims to enhance

diagnostic accuracy and ultimately improve patient outcomes.

Despite past delays in the clinical development of its diagnostic

tests, LungLife AI is now laying the groundwork for commercial

progress. The company has secured a reimbursement code and

favourable Medicare pricing for its test, coupled with initial orders

generated from its early access program, indicating increasing

interest from physicians. LungLife AI is actively seeking to secure

funding from a strategic partner, while also implementing

effective cost-control measures to extend its current cash runway.

Arecor Therapeutics

(“

Arecor

”) (0.4% of net assets, -£1.5 million)

is

a clinical-stage

biopharmaceutical company

focused on

developing novel therapies through its proprietary Arestat™

technology. Arecor's portfolio includes next-generation insulin

therapies and other advanced biologics, which target unmet

medical needs across a range of therapeutic areas.

During the period under review, Arecor achieved notable pipeline

advancements and secured a further £6 million in funding.

Although the fundraise led to a decline in the company’s share

price, Arecor has since reported encouraging Phase I clinical

results

for AT278, showcasing

its

potential

to significantly

improve outcomes for diabetic patients. Discussions are currently

underway to secure a development partner for this key asset.

Tribe Technology

(“

Tribe Tech

”) (0.4% of net assets, -£1.0 million)

specialises in the development and manufacture of autonomous

mining equipment. Tribe Tech has made significant progress in

developing its autonomous drill rig and sample system products.

The company has successfully manufactured its first drill rig for

Master Drilling, a mining contractor, and is currently manufacturing

a second drill rig for Anglo American, a global mining corporation.

However, delays in delivering the first drill rig to Master Drilling

have resulted in much needed revenue generation slipping into

2025. Tribe Tech raised a further £1.41 million in June 2024 via the

issue of new shares and a Convertible Loan Note. The company’s

management team has also enacted cost reductions to preserve

working capital where possible.

Non-Qualifying Investments

The non-qualifying investments in the portfolio are typically

made in larger, more liquid quoted companies that are listed on

the FTSE 350 Index. Non-qualifying investments are normally held

in the portfolio in lieu of cash, allowing us to generate additional

dividend income for future distribution to Shareholders while

awaiting suitable VCT qualifying investment opportunities. In

the main, these investments performed satisfactorily during the

period under review.

During the twelve-month period ended 30 September 2024, the

Investment Manager continued to take advantage of the attractive

yields available on short-term money market funds to generate

additional income. While short-term bond yields remain high, we

expect this to remain an attractive means of generating additional

income at minimal risk, while awaiting suitable VCT qualifying

opportunities.

Offer for Subscription

The

fully

subscribed

Offer

for

Subscription

that

closed

in February 2024, was a very pleasing outcome and is a humbling

endorsement, in particularly challenging times, of the Investment

Manager’s proven and successful long-term approach. The new

funds raised will enable the Investment Manager to continue

the established and successful strategy of selectively growing

the existing portfolio of investments by providing much needed

capital to emerging ‘scale-up’ businesses. The deployment of

capital into new investment opportunities will continue to be

rigorously controlled, especially in view of the difficult investment

landscape.

10

Unicorn AIM VCT plc

|

Annual Report

|

2024

Strategic Update

Governance

Independent Auditor's Report

Financial Statements

Information

Investment Activity

In terms of investment activity, the number of companies raising money on AIM remained at historically low levels due to the difficult

market conditions. Initial Public Offerings ("IPOs") were largely absent during the twelve-month period. By number, the majority of the

fund-raises in which we participated were in companies in which we already held an equity stake and were designed to provide additional

capital to enable them to accelerate their development plans. A total of £5.9 million was invested in these follow-on funding rounds,

across nine qualifying companies already held in the portfolio.

In addition, five VCT qualifying investments were made in businesses already listed on AIM or the Aquis Exchange, but which were new

introductions to the Company’s portfolio. In total, £7.5 million was invested in these VCT qualifying companies.

As highlighted in the table below, the VCT qualifying investments made during the financial year have delivered disappointing initial

returns, which starkly illustrates the difficult market conditions for small, early-stage AIM- listed businesses. The standout performer in a

positive sense, was our investment in Incanthera, which has generated strong short-term gains.

Trade Date

Cost

£

Value at

30 September

2024

£

Profit/(loss)

£

Return

%

NEW INVESTEE COMPANIES

Eden Research

6 October 2023

1,500,000

900,000

(600,000)

(40.0)

SkinBioTherapeutics

22 November 2023

1,500,000

848,684

(651,316)

(43.4)

Equipmake Holdings

15 February 2024

1,500,000

625,000

(875,000)

(58.3)

EDX Medical Group

4 March 2024

1,000,000

791,667

(208,333)

(20.8)

Incanthera*

21 June 2024

2,000,000

2,933,333

†

933,333

†

46.7

Total

7,500,000

6,098,684

(1,401,316)

(18.7)

FOLLOW ON INVESTMENTS

Aurrigo International

20 November 2023

1,500,000

1,125,000

(375,000)

(25.0)

Verici DX

20 February 2024

1,000,000

722,222

(277,778)

(27.8)

PCI-PAL

18 March 2024

123,064

102,846

(20,218)

(16.4)

LungLife Al

22 March 2024

755,000

215,714

(539,286)

(71.4)

Oxford Biodynamics

5 April 2024

748,201

267,690

(480,511)

(64.2)

Polarean Imaging

17 June 2024

350,000

507,500

157,500

45.0

Tribe Technology Conv LN 7.5%

26 June 2024

600,000

600,000

–

–

Directa Plus

1 July 2024

640,000

391,111

(248,889)

(38.9)

Oberon Investments Group

9 August 2024

224,400

192,343

(32,057)

(14.3)

Total

5,940,665

4,124,426

(1,816,239)

(30.6)

* During the period, sales were made realising a gain of £40,774.

† Based on original investment.

While initial performance has been disappointing, the Investment Manager believes that each of these has the potential to generate a

significant contribution to long-term capital growth.

As a reminder, the Investment Manager is required, by virtue of the strict investment rules surrounding Venture Capital Trusts, to invest in

businesses that are typically at an early stage in their development. These rules, which the Investment Manager fully supports, do however

increase the risk of incurring capital losses, especially given that progress toward sustainable profitability is rarely straightforward. In

testing macro-economic conditions, such as those currently being experienced, it is therefore unsurprising that some of the investments

made in recent years, have struggled to perform in share price terms.

Investment Manager’s Review

(continued)

Unicorn AIM VCT plc

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Annual Report

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2024

11

Strategic Update

Investment Manager’s Review

(continued)

Realisations

In aggregate, £0.9 million was raised from the partial disposal of

VCT qualifying shares during the period. A further £37.8 million

was received in net proceeds from VCT qualifying investments,

which were fully disposed as a consequence of M&A activity.

These corporate exits realised an aggregate gain on book cost of

£29.1 million.

The largest corporate exit was Abcam, which was acquired by

Danaher Corporation. This transaction completed in December

2023, generating net proceeds of £20.3 million and a realised

capital gain on remaining book cost of £19.2 million. As a

reminder,

the

Investment

Manager

has

also

realised very

substantial capital profits throughout the 18 year investment

holding period, by making a series of regular partial disposals of

shares in Abcam. The Company’s initial investment in Abcam was

made in November 2005.

Other corporate

takeovers of VCT qualifying

investments,

which completed during the twelve-month period, included;

Mattioli Woods, Instem, Smoove and City Pub Group. In

aggregate, these four additional exits generated net proceeds

of £17.4 million and realised capital gains of £11.1 million on book

cost.

Corporate actions also resulted in the full exit of non-qualifying

investments. These included the takeover of non-qualifying

shares in City Pub Group, which generated net proceeds of

£1.2 million and a realised loss on book cost of £0.1 million.

The Company also tendered its non-qualifying shares in Gama

Aviation, ahead of Gama’s delisting from AIM, which generated

proceeds of £0.3 million and a realised loss of £0.5 million. A

qualifying stake in Gama Aviation was retained in the portfolio as

an unlisted investment.

Outlook

The headwinds faced by the UK economy over recent years

finally appear to be abating. Inflation is moderating and the

‘core’ Consumer Price Index ("CPI") is expected to soſten further

to 2.2% in 2025 and 2.1% in 2026. Core CPI is an important

indicator of economic health, which is closely monitored by

the Bank of England since it excludes the highly volatile costs of

energy and food.

Provided that the downward trend in inflation continues, the

Bank of England is expected to continue to reduce interest

rates beyond the initial 25 basis point reduction made in August

2024. Market forecasts currently indicate the potential for an

additional 50 basis point reduction to 4.5% by the end of 2024.

Declining interest rates should help to support listed company

valuations, particularly those at the smaller end of the market

capitalisation range.

Following years of political disruption and uncertainty, the

election of a government with a large majority should provide

stability and boost levels of confidence among retail and

institutional investors. It is to be hoped that the UK becomes more

widely perceived as being an attractive place in which to invest.

However, near-term optimism has recently been tempered in the

aſtermath of the new Chancellor’s first Budget. While anticipated

reductions in the tax reliefs enjoyed by certain AIM businesses

did not fully materialise, other aspects of the Budget were clearly

designed to rapidly increase HMRC’s overall tax take. This is

disappointing, especially given the Labour Party’s pro-growth

and pro-business rhetoric prior to the General Election.

Globally, geopolitical risks remain significant. Conflict between

Russia and Ukraine is likely to grind on. Elsewhere, dramatic

escalation of military conflict in the Middle East, poses a threat

to stability throughout the Middle East region. In Asia, increasing

military tension between China and Taiwan may lead to global

economic and supply chain disruption or, in the worst-case

scenario, military conflict. The outcome of these risks, and the

effects they may have on equity markets, is highly unpredictable.

However, the Investment Manager takes comfort from the

diversified nature of the portfolio, which has always demonstrated

resilience in previous periods of extreme market dislocation.

In the meantime, the portfolio of investee companies remains in

reasonably good health. Importantly, most of these businesses

remain well-funded and are operating with balance sheets that

are sufficiently robust to enable them to successfully navigate a

further period of economic and equity market uncertainty.

Overall, IPO activity on AIM is likely to take longer to recover

than previously expected. However, VCT qualifying pipeline

opportunities remain satisfactory in terms of both quantity and

quality. As a reminder, the Investment Manager’s approach to

raising new capital through Offers for Subscription has always

been prudent. This cautious approach will remain in place,

thereby allowing us to maintain a selective approach when

considering new VCT qualifying investment opportunities.

We remain confident in the potential for significant capital growth

from the existing investment portfolio over the longer term and

are cautiously optimistic about prospects for an improvement in

investor sentiment during the current financial year.

Chris Hutchinson

Unicorn Asset Management Limited

5 December 2024

12

Unicorn AIM VCT plc

|

Annual Report

|

2024

Strategic Update

Governance

Independent Auditor's Report

Financial Statements

Information

Top Ten Investments (by Value)

at 30 September 2024 with prior year comparative values

30 September 2024

30 September 2023

Book

cost

£'000

Valuation

£'000

% of net

assets by

value

Book

cost

£'000

Valuation

£'000

% of net

assets by

value

Hasgrove (unlisted)

1,277

40,306

20.2

1,303

23,607

11.2

Cohort

1,278

11,376

5.7

1,278

5,904

2.8

Tracsis

1,500

8,910

4.5

1,500

13,200

6.2

Avingtrans*

1,864

7,979

4.0

1,864

7,979

3.8

MaxCyte

2,926

7,208

3.6

2,926

6,214

2.9

Tristel

878

6,411

3.2

878

7,195

3.4

The Property Franchise Group (formerly Belvoir Group)*

2,202

6,308

3.2

2,362

4,351

2.0

Anpario

1,423

6,248

3.1

1,423

4,849

2.3

Keywords Studios

303

6,007

3.0

303

3,818

1.8

Aurrigo International

4,458

5,747

2.9

2,980

7,139

3.4

Total

18,109

106,500

53.4

16,817

84,256

39.8

* The holding consists of both qualifying and non-qualifying shares as shown on pages 14 and 20.

Unicorn AIM VCT plc

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Annual Report

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2024

13

Strategic Update

Governance

Independent Auditor's Report

Financial Statements

Information

Investment Portfolio Summary

at 30 September 2024

Year first

invested

Book

cost

£'000

Value

£'000

Market sector

% of net

assets by

value

% of

equity

held

% of

equity

managed

by UAML*

QUALIFYING AIM QUOTED INVESTMENTS

Cohort

Provision of a wide range of technical services to

clients in the defence and security sectors

2006

1,278

11,376

Aerospace & defence

5.7

2.9

3.2

Tracsis

Developer and supplier of resource optimisation

and data capture technologies to the transport

industry

2007

1,500

8,910

Soſtware & computer

services

4.5

5.4

5.9

MaxCyte

Developer of cell -engineering platforms based on

Flow Electroporation technology

2016

2,926

7,208

Pharmaceuticals &

biotechnology

3.6

2.4

2.4

Avingtrans

Provision of precision engineering services

2004

996

6,806

Industrial engineering

3.4

5.9

5.9

Tristel

Manufacturer of contamination and infection

control products

2009

878

6,411

Healthcare providers

3.2

3.4

4.0

Anpario

Manufacturer of natural feed additives for global

agricultural markets

2006

1,423

6,248

Pharmaceuticals &

biotechnology

3.1

9.2

9.2

Keywords Studios

Provider of technical service

to the global video

game industry

2013

303

6,007

Leisure goods

3.0

0.3

0.3

Aurrigo International

An international provider of transport technology

solutions

2022

4,458

5,747

Technology hardware

& equipment

2.9

16.7

16.7

The Property Franchise Group (formerly Belvoir

Group)

Residential property lettings and sales

2015

1,883

5,388

Real estate investment

& services

2.7

2.4

2.4

AB Dynamics

Designer, manufacturer and supplier to the global

automotive industry of advanced testing and

measurement products for vehicle suspension,

brakes and steering

2016

792

4,875

Industrial engineering

2.5

1.1

1.4

Idox

Information and knowledge management soſtware

2007

1,242

3,868

Soſtware & computer

services

1.9

1.4

1.4

Pulsar Group (formerly Access Intelligence)

Compliance soſtware solutions for the public and

private sectors

2004

3,159

3,848

Soſtware & computer

services

1.9

5.1

5.1

Animalcare Group

Specialist veterinary pharmaceuticals and animal

health products

2007

2,401

3,844

Pharmaceuticals &

biotechnology

1.9

2.7

2.7

Incanthera**

Dermatology and oncology therapeutics company

focusing on discovery and development of

targeted solutions

2024

1,960

2,874

Pharmaceuticals &

biotechnology

1.4

11.2

11.2

SulNOx Group**

The development and marketing of fuel emulsifiers

and conditioners

2021

1,800

2,353

Chemicals

1.2

5.4

5.4

Avacta Group

Developer of protein based reagents for research

and diagnostics

2018

932

2,064

Pharmaceuticals &

biotechnology

1.0

1.2

1.2

* Unicorn Asset Management Limited.

** Listed on Acquis Exchange.

14

Unicorn AIM VCT plc

|

Annual Report

|

2024

Strategic Update

Governance

Independent Auditor's Report

Financial Statements

Information

Investment Portfolio Summary

(continued)

at 30 September 2024

Year first

invested

Book

cost

£'000

Value

£'000

Market sector

% of net