Final Results

Why It Matters

The results show Foresight VCT’s ability to deliver strong tax‑advantaged returns and raise fresh capital despite a challenging macro environment, underscoring its appeal to income‑seeking investors and its resilience as a diversified VCT.

Key Takeaways

• Special interim dividend of 6.4p per share paid, £19.3m distributed
• NAV fell to 71.6p per share, total return 0.1%
• Hospital Services exit returned £27.1m, 8.3x cash-on-cash multiple
• Subscription raise secured £38.6m after expenses, boosting liquidity
• Board announces chair succession; Patricia Dimond to become new chair

Pulse Analysis

Foresight VCT’s 2025 annual results illustrate how a diversified venture capital trust can navigate a volatile UK economy. While GDP grew modestly to 1.3% and inflation eased to 3.4%, the trust’s portfolio weathered sector‑specific headwinds, delivering a 16% dividend yield that includes a 6.4p special interim payout. The exit of Hospital Services Group, a £3.3m seed investment that returned £27.1m, highlights the upside potential of early‑stage healthcare assets and reinforces the trust’s strategy of balancing risk with high‑growth opportunities.

Capital raising remained a priority as the subscription offer closed in early February 2026, netting £38.6m after expenses. This infusion not only replenished liquidity for new and follow‑on investments but also enabled a disciplined share‑buyback programme, with over 10 million shares repurchased at a 7.5% discount to NAV. Management fees stayed competitive at 2.1% of net assets, and a £2.2m performance fee accrual reflects the trust’s five‑year NAV total return of 55.6%, well above the 5% annual target. Such financial discipline positions Foresight VCT to sustain its dividend policy and pursue further high‑return exits.

The broader VCT landscape faces a policy shift: upfront income‑tax relief is set to drop from 30% to 20% in April 2026. Although this may temper fundraising momentum, the trust’s strong track record, diversified sector exposure—spanning technology, healthcare, and business services—and robust pipeline of investable opportunities suggest it can continue to attract investors seeking tax‑efficient growth. Board succession, with Patricia Dimond assuming the chair role, adds governance stability as the trust prepares for a year of geopolitical uncertainty and potential inflationary pressure from rising oil prices. Overall, Foresight VCT’s resilient performance and strategic capital management underscore its capacity to generate long‑term shareholder value in a challenging environment.