30 July 2026
HARGREAVE HALE AIM VCT PLC
(the "Company")
Interim Management Statement
Q3 2026
Introduction
This interim management statement covers the third quarter of the 2025/26 financial year, 1 April 2026 to 30 June 2026. Investment performance measures contained in this report include realised and unrealised gains and losses and income.
Overview
It was another highly eventful quarter. The United States and Iran signed a memorandum of understanding to end military operations for 60-days to create a window to negotiate a more comprehensive peace treaty. Oil prices retrenched sharply and global equities rallied hard.
In the event, it only took eight days for Iran to launch its first attack on a tanker and so began a gradual re-escalation of hostilities that again threatens to push up energy prices.
Closer to home, Andy Burnham was elected as the Member of Parliament for Makerfield and, subsequently, Leader of the Labour Party and Prime Minister, ushering in a new period of political uncertainty pending further clarification of his economic and fiscal priorities.
Political and geopolitical risks, both domestic and international, have added further pressure to UK consumer and business confidence. UK economic indicators remained weak with UK GDP declining by -0.1% in April before improving slightly to +0.1% in May. PMI data suggests the economy may have shrunk in June. The outlook for UK GDP remains largely unchanged with market consensus calling for GDP growth of 1.0% in 2027. Meanwhile, the labour market remains soft with unemployment expected to increase to 5.2% as the year progresses.
Inflation, whilst trending lower, remains persistent. With energy prices expected to put upwards pressure on inflation, CPI is forecast to increase from 2.6% in June to 3.2% in Q4 2026. The Bank of England, which has held the Bank Rate at 3.75% throughout the year, is expected to increase the base rate at least once this year.
Despite the caution around the UK economy, we continued to see strong trading from within our portfolio. 82% of the updates received in the period were in line or ahead of expectations. The outcome is similar when measured over six months. For domestically focused equities, the quarter was dominated by the evolving expectations surrounding the political and geopolitical landscape. For the most part, the market was risk on and the US-Iran ceasefire allowed AIM to fully recover its March losses by mid-May. June saw a modest consolidation as domestic considerations, a return to hostilities in the Middle East and a pullback in certain US and Asian technology stocks contributed to a more cautious tone. Investor sentiment remains highly event-driven and sensitive to developments both here and abroad. AIM(1) returned +6.52% in the period.
Performance
In the three months to 30 June 2026, the unaudited NAV per share increased by 1.75 pence from 30.62 pence to 32.37 pence (cum-dividend), giving a total return of +5.72%.
The qualifying investments returned +1.49 pence per share whilst the non-qualifying investments returned +0.45 pence per share over the period.
Qualifying Investments
Positive Contributors
Hardide (+125.8%, +£2.26m) delivered exceptionally strong progress. In April, the company announced a further £1.8m order from its large North American energy customer, taking announced orders from this customer to more than £6m since December 2025. Management indicated that FY26 revenue and financial performance would be materially ahead of expectations despite higher tungsten input costs. Interim results confirmed 61% revenue growth to c.£4.5m, EBITDA of c.£1.3m and operating margins of c.20%.
Eagle Eye (+46.7%, +£1.21m) continued its recovery following the loss of the NRS contract at the start of FY26. Management replaced the lost revenue through new customer wins, expansion within existing accounts and growing OEM partner contributions. Post period end, Eagle Eye reported FY26 revenue of £46.7m, adjusted EBITDA of £9.8m and net cash of £16.1m, all ahead of expectations. ARR increased 31% to £44.5m, with recurring revenue at 87% of Group revenue. Growing ARR, sustained win momentum and a strengthened route to market support guidance for double-digit revenue and EBITDA growth.
Abingdon Health (+33.3%, +£1.13m) continued to perform well following interim results and contract wins announced in March, although there was no company news during the period.
Negative Contributors
Skillcast (-18.2%, -£0.42m) reported a strong FY25 outcome, with ARR growth of 19% to £13.8m, revenue up 16% to £15.3m and EBITDA increasing to £1.5m. Net cash rose to £12.7m and recurring revenue represented 87% of total revenue. Demand for governance, risk and compliance software remained supportive. Post period end, the company confirmed trading for the six months to 30 June 2026 remained in line with expectations.
PCI Pal (-10.4%, -£0.38m) continued to deliver positive commercial progress. The company announced a major reseller partnership with a global telecommunications provider and achieved several industry accreditations. Interim results reported ARR growth of 21% to £20.3m and contracted ARR growth of 18% to £24.0m. Management highlighted a growing enterprise pipeline and continued partner expansion. Post period end, the company renewed its HMRC contract for a further eight years and reported that trading for 12 months to 30 June 2026 was ahead of expectations.
Equipmake (-40.0%, -£0.37m) continued to recover revenues under its refocused strategy, shifting from project-based electrification engineering to a more focused product and systems supplier. In April, the company secured a further £0.95m order from Agrale, taking orders from the relationship to approximately £8.8m since September 2025. Post period end, FY26 revenue was reported at approximately £8.2m, up 134% year on year, with positive adjusted EBITDA in H2 and £2.0m cash at 30 June 2026.
Non-Qualifying Investments
Within the non-qualifying portfolio, the IFSL Marlborough UK Micro-Cap Growth Fund and IFSL Marlborough Special Situations Fund rose by £0.99m over the period. The non-qualifying direct equity investments returned £0.45m. Notable positive contributors included global broking business TP ICAP which delivered record first quarter revenues and Hollywood Bowl which grew first half revenues by 9.5% and continued to expand in Canada. There were no major detractors. Post period end, Rotork received a takeover offer from ABB at a 73% premium to the prior share price. The fixed income portfolio returned £0.25m.
Portfolio structure
The Company is comfortably above the HMRC defined investment test and ended the period at 89.42% invested, as measured by the HMRC venture capital trust ("VCT") investment test.
Although there were no VCT qualifying IPOs in the quarter, our pipeline currently includes two potential IPOs. More generally, we are hearing a number of brokers talking up their IPO pipelines, albeit with some delay following the start of the US war with Iran.
Within the qualifying portfolio, we completed two follow-on investments into AIM listed companies Eden Research and Ixico. We also completed a small follow-on CLN investment into Rosslyn Data Technologies. In aggregate, we deployed £3.3 million into qualifying companies, broadly in line with our plan.
We reduced our investment in Abingdon Health following strong share price performance and made complete exits from CellBx, Everyman Media Group, Idox and Faron Pharma.
By market value, the VCT had an increased 65.3% weighting to Qualifying Investments, a reduced 9.9% weighting to non-qualifying fixed income, a reduced combined 9.8% weighting to the IFSL Marlborough UK Micro-Cap Growth Fund and IFSL Marlborough Special Situations Fund and a reduced 5.5% weighting to non-qualifying direct equities. The VCT had an increased 9.5%(2) weighting to cash pending payment of the interim dividend.
The HMRC VCT investment tests are set out in Chapter 3 of Part 6 Income Tax Act 2007, which should be read in conjunction with this interim management statement. Funds raised by VCTs are first included in the investment tests from the start of the accounting period containing the third anniversary of the date on which the funds were raised. Therefore, the allocation of qualifying investments as defined by the legislation can be different to the portfolio weighting as measured by market value relative to the net assets of the VCT.
Share Buy Backs & Discount
The Company acquired 2.9 million of its own shares in the quarter at an average price of 31.06 pence per share. The share price increased from 29.90 to 31.00 pence per share and on 30 June 2026 traded at a discount of 2.12% to the last published NAV per share (as at 30 June 2026), published on 8 July 2026.
Post Period End
The Company’s unaudited NAV per share increased from 32.37 pence (cum-dividend) to 32.61 pence (cum-dividend) as at 24 July 2026, an increase of 0.74%. AIM(1) increased by 0.25% over the same period.
END
For further information please contact:
Oliver Bedford, Canaccord Genuity Asset Management
Tel: 020 7523 4837
____________________________
1: As measured by the Deutsche Numis Alternative Markets (excluding investment companies) Total Returns Index.
2: Net of prepayments and accruals.
