Unicorn AIM VCT Eyes £87m Hasgrove Windfall and Special Dividend Amid Annual NAV Decline

Unicorn AIM VCT’s 2025 results: modest NAV slip, chunky cash returns, and a potential Hasgrove payday

Unicorn AIM VCT has posted annual results for the year to 30 September 2025. The headline mix is unusual but interesting for investors: a small negative total return, generous cash returned to shareholders, and the prospect of a very large realisation from its biggest holding, Hasgrove, that could trigger a special dividend.

Here is what stood out, why it matters, and what to watch next.

Key numbers from the annual report

Net asset value per share (NAV)	90.3p
Share price at year end	76.5p
Discount to NAV	15.3%
Shareholders’ funds	£194.4 million
NAV total return for the year	-1.8% (after adding back 12.5p of dividends)
Dividends paid in the year	12.5p per share (6.5p ordinary, 6.0p special)
Proposed final dividend	3.5p per share, payable 13 February 2026 (record date 5 January 2026)
Offer for Subscription (net)	£24.1 million raised
New Offer announced	Up to £25.0 million
VCT qualifying percentage	90.6% (excluding recent offer proceeds)

Hasgrove sale could deliver about £87 million and a special dividend

The marquee development arrived just after year end. On 28 November 2025, Unicorn agreed terms for Castik Capital to acquire a majority stake in Hasgrove, the VCT’s largest holding. Unicorn expects total net proceeds of approximately £87 million, split between around £65 million in cash and about £22 million in shares in a new holding company that will own Hasgrove.

The Board says the valuation will be “materially higher” than the £46.7 million previously used in the 31 October 2025 NAV update. Once completed and proceeds are confirmed, the Board will consider a special dividend. Quantum and timing are not disclosed. Expect an updated NAV “as soon as practicable” following completion.

Why it matters: Hasgrove was 24.0% of net assets at the year end. A cash realisation of this size would be transformative for liquidity, reduce concentration risk, and potentially fund both a special dividend and new qualifying investments. It also demonstrates the value-add of Unicorn’s unquoted strategy when it works.

Performance context: why a -1.8% total return is not as bad as it looks

NAV total return for the year was -1.8% after adding back the 12.5p of dividends. That lagged the FTSE AIM All-Share Total Return at +7.9%, although the AIM result was unusually narrow. Metals and Mining delivered 102% of the index’s gains despite being just 11.8% of the index by weight – and most of those companies are not VCT-qualifying. Versus the AIC VCT AIM-Quoted Peer Group at -1.9%, Unicorn was broadly in line.

Excluding dividends, the capital decline in NAV per share was 13.8% from 104.7p to 90.3p. In cash terms, the investment portfolio slipped by £1.9 million while the Company paid out £24.4 million of dividends and £5.3 million via buybacks, partly offset by £24.1 million of new money raised and £3.6 million via the dividend reinvestment scheme.

Portfolio movers: defence and SaaS helped; early-stage health and tech hurt

• Positive contributors: Hasgrove (+£6.4 million), defence group Cohort (+£5.7 million), Anpario (+£2.9 million), The Property Franchise Group (+£2.3 million), and Avingtrans (+£1.4 million) all moved the dial.
• Negative contributors: Maxcyte (-£4.3 million), Aurrigo (-£2.7 million), Incanthera (-£2.6 million), Tracsis (-£2.3 million), and Futura Medical (-£1.8 million) weighed on returns.

The pattern is familiar for AIM VCTs: established, profitable holdings did relatively well while earlier stage life sciences and technology names – the part of the book VCT rules require managers to fund – bore the brunt of risk aversion and choppy funding markets.

Dividends, buybacks and the 10‑year tally

Unicorn paid 12.5p in the year, combining ordinary and special dividends. The Board proposes another 3.5p final dividend for FY25, split 3.1p capital and 0.4p revenue, payable on 13 February 2026 to holders on 5 January 2026. Over the last decade to 30 September 2025, cumulative dividends total 124.2p per share. If the new final is approved, the 10‑year figure from 30 September 2014 would rise to 127.7p.

Buybacks also supported the share price: 6,397,687 shares were repurchased for cancellation at an average of 83.5p, helping liquidity and modestly enhancing NAV for continuing holders.

Fundraising and liquidity: dry powder maintained

Despite tough markets for small caps, Unicorn raised £24.1 million net through a fully subscribed Offer for Subscription, closing March 2025. A new Offer to raise up to £25.0 million is planned, with full details expected in January 2026.

As at year end, the VCT held £2.6 million in cash, £21.4 million in fully listed stocks, and £14.8 million in daily dealing funds. Non‑qualifying holdings, including money market funds, generated an average yield of 4.8% – useful income while waiting for the right qualifying deals.

What Unicorn bought and sold

• Seven new qualifying investments cost £9.1 million. Early marks were mixed, with standout Windar Photonics up 52.5% and others down in the short term.
• Follow-on funding into ten existing qualifiers totalled £6.6 million.
• Qualifying disposals delivered £8.9 million of proceeds and a £5.2 million gain. M&A exits included Keywords Studios, Kingswood Holdings and Syndicate Room Group.

At the year end, Unicorn held 79 active qualifying positions plus 11 non‑qualifying investments across 26 sectors. More than 73% of qualifying businesses held net cash on their balance sheets – reassuring in a higher-rate world.

Costs and VCT status

Ongoing charges were 2.4% of net assets, with management fees making up the bulk under the tiered schedule. The qualifying percentage stood at 90.6% (excluding recent offers), and all HMRC tests were met. The Government has extended State Aid rules for VCTs to 2035.

VCT rule changes from April 2026: what investors should know

The Autumn Budget 2025 set two important changes from April 2026:

• Upfront income tax relief on new VCT subscriptions will drop from 30% to 20%.
• Eligibility thresholds for investee companies will be doubled, widening the investable universe.

In my view, the lower relief may pull forward demand into the 2025-26 tax year, while the expanded investee rules should improve deal flow and allow VCTs to support businesses across more stages. Unicorn’s planned £25.0 million Offer in early 2026 sits right in the middle of that shift.

How to think about the shares today

The shares closed the year at 76.5p, a 15.3% discount to the 90.3p NAV. That discount gives a margin of safety, but the bigger swing factor is Hasgrove. If the sale completes as guided, expect a material NAV uplift, a stronger cash position, and a credible case for a special dividend. The flip side is execution risk until the money is banked, and the fact that many early-stage holdings are still sensitive to sentiment.

What to watch next

• Completion of the Hasgrove deal, the updated NAV, and clarity on any special dividend.
• The January 2026 Offer for Subscription up to £25.0 million and investor appetite ahead of the April 2026 tax relief change.
• Signs that small-cap fund flows normalise. A broadening of the AIM rally would help the earlier‑stage names that have lagged.
• Dividend policy post-Hasgrove and continued use of buybacks to manage the discount.

Final take

On the face of it, a -1.8% total return year is hardly thrilling. But the cash distributed, the persistent buybacks, and the prospective £87 million Hasgrove windfall change the complexion. If Hasgrove completes as planned, 2026 could look very different, with more liquidity, a lower concentration in the top holding, and scope for a special dividend on top of the ordinary payout.

The full Annual Report and Accounts are available at www.unicornaimvct.co.uk.