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Latest News Half-Yearly Results July 22, 2026 10:30 ET | Source: Octopus AIM VCT 2 plc Octopus AIM VCT 2 plc
Octopus AIM VCT 2 plc Half-Yearly Results Octopus AIM VCT 2 plc announces its unaudited half-yearly results for the six
months ended 31 May 2026. Octopus AIM VCT 2 plc (the ‘Company’) is a Venture Capital Trust (VCT) which aims to
provide shareholders with attractive tax-free dividends and long-term capital growth by investing in a diverse portfolio
of predominantly AIM-traded companies. The Company is managed by Octopus Investments Limited (‘Octopus’ or the
‘Investment Manager’). Key financials Six months to 31 May 2026Six months to 31 May 2025Year to 30 November
2025Net assets (£’000)£70,323£80,772£77,423Profit/(loss) after tax (£’000)£675£(1,371)£167Net asset value
(NAV) per share131.8p37.9p36.9pDividends per share paid in period5.4p1.8p3.6pNAV total return20.8%(2.0)%0.0%Interim
dividend declared31.1p1.8p1.8pDividend yield414.6%4.4%8.9%Cumulative dividends paid since launch579.9p72.7p74.5p 1 NAV
per share is calculated on the underlying assets less liabilities of the Company divided by the number of shares.2 NAV
total return is an alternative performance measure calculated as movement in NAV per share in the period plus dividends
paid in the period, divided by the NAV per share at the beginning of the period.3 The proposed interim dividend will be
paid on 26 November 2026 to shareholders on the register on 6 November 2026.4 Dividend yield is calculated as dividends
paid in the period, divided by the NAV per share at the beginning of the period.5 Octopus AIM VCT 2 plc was launched in
March 2006. Chair’s statement Firstly I would like to record my thanks to Keith Mullins, who stepped down as Chair at
the 2026 Annual General Meeting (AGM), for his many years of service and the significant contribution, leadership and
guidance he provided throughout his tenure. I am pleased to welcome Robert (Ted) Holmes to the Board as a Director with
effect from the AGM. Ted brings extensive investment management and financial experience, having held senior roles
across asset management, finance and listed investment companies. We now have a significantly rejuvenated Board as the
result of changes over the last three years and our continuing succession plan. The market, events and changing
legislation During the period there have been major UK and world events that have materially affected global markets and
the specific taxation and investment parameters within which the Company operates, providing an increased investment
environment in which to deploy funds. In the opinion of the Board, this wider short term market volatility and the tax
efficient structure offered by the VCT highlight the attraction and potential of investing patient capital in a growth
market such as AIM, and does so with expert portfolio management from the Octopus team. As reported in the Investment
Manager’s review, the interim period to the end of May 2026 had a mixed backdrop for UK equity markets. The early part
of the period was characterised by returning investor confidence, better market performance, increased fundraising
activity and the long-awaited announcement of VCT reforms. However, equity markets weakened sharply in March with the
Iranian war. This environment weighed particularly on UK domestic equities and economically sensitive growth stocks,
while companies with exposure to oil, gas, and commodities (which are outside our VCT investible universe) proved more
resilient. Markets rebounded strongly in April, proving more supportive for smaller companies. Amidst ongoing
macroeconomic uncertainty, investor sentiment improved towards higher-quality smaller businesses with strong balance
sheets, recurring revenues, and good earnings visibility. As the Investment Manager’s analysis highlights, our
portfolio is strongly represented by businesses that have consistent and progressive underlying performance. The Company
therefore delivered a positive performance relative to the prior year. After adding back the final dividend of 1.8p per
share and a special dividend of 3.6p over the period, the NAV generated a total return of +0.8%. This compares to a 9.7%
increase in the FTSE AIM All Share and a 8.8% rise in the FTSE All Share, both on a total return basis and bolstered by
the major influence of energy and resources investments. The Investment Manager and the portfolio The Board, especially
in times of volatility, is careful to consider the effectiveness of the decisions taken by the Investment Manager and
the performance of the portfolio, providing challenge where necessary and ensuring our understanding of the rationale of
the investment and monitoring processes. While recent returns are modest in absolute terms, this performance should be
viewed in the context of the uneven market environment and with full understanding of the comparative measures. Returns
across AIM over the period were heavily influenced by a concentrated group of non-energy minerals companies, including
precious metals and mining exploration, which accounted for approximately 7.6% of the index but materially contributed
to the overall gain. The Company’s performance therefore reflects the underlying resilience of the portfolio which, in
the context of the trading performance of individual investments, provides some confidence for the future. Returns were
supported by stable earnings and the successful realisation of several investments crystallising net profits over
original cost of £11.0 million, equivalent to an average uplift of 26x. This will be highlighted in greater detail in
the Investment Manager’s Review. The portfolio remains well positioned, with a focus on high-quality, fundamentally
strong businesses with growing earnings. As market conditions normalise and investor sentiment towards smaller companies
continues to improve, the Board would expect this to be better reflected in multiples, valuations and stronger returns
over time. VCT investment scope The Board welcomes the updates to the VCT rules, announced in the November 2025 Budget,
in respect of the increase in scope of businesses eligible for funding and the scale of individual investments. These
changes are intended to ensure enhanced support for early-stage, high-growth businesses while also providing greater
flexibility for follow-on investments. In doing so, they enhance the ability of VCTs to support portfolio companies over
a longer period, strengthening alignment between investors and the growth trajectories of the underlying businesses. We
are encouraged to see that these reforms are already having a positive impact on the market and our investment activity,
with an increasing number of attractive opportunities emerging to invest in innovative companies at realistic
valuations. Unquoted investments As stated in the investment policy, the Company is able to make investments in unquoted
companies intending to float. At 31 May 2026, 6.3% (31 May 2025: 13.0% and 30 November 2025: 17.1%) of the Company’s
net assets were invested in unquoted companies. Hasgrove, the Company’s largest unquoted holding, was disposed of
following a bid approach from Castik Capital. The transaction, which completed in January, realised a profit of £9.1
million for the Company which had partially been recognised within our reserves, reflecting the success of our long-term
investment approach and supporting our valuation methodology. Popsa, our largest remaining unquoted holding, also
continued to scale effectively, delivering strong revenue growth with international expansion remaining a key driver of
progress. Transactions with the Investment Manager Details of amounts paid to the Investment Manager are disclosed in
Note 8 to the financial statements and the Company continues to place short-term holdings in other funds managed by the
Octopus team, pending direct corporate investments. As described above, the Board carefully assesses and interrogates
the investment performance of the Investment Manager which naturally receives attention at a time of market change and
uncertainty. Share buybacks In the six months to 31 May 2026, the Company bought back 7,005,971 Ordinary shares for a
total consideration of £2,369,000. It is evident from the conversations between the Investment Manager and investors
and advisors that this facility remains an important feature of the VCT. Principal risks and uncertainties and taxation
The principal risks and uncertainties are set out in Note 7 to the financial statements. Alongside the improvements made
to the scale and target of eligible VCT investments, the level of tax relief offered to individual investors reduced to
20% (from 30%) from 6 April 2026. Investing in a VCT which in turn provides a professionally managed portfolio of
publicly traded (and therefore liquid) interests in growth businesses continues to represent a highly attractive
proposition, in the Board’s opinion. The Board believes the combination of tax relief for investing in more developed
and scalable businesses remains a significant incentive within the current landscape. Dividend On 1 April 2026, the
Company paid a dividend of 3.6p per share following the realisation of exceptional profits from several long-term
investments during the previous year-end, primarily Breedon Group, Learning Technologies Group and Intelligent
Ultrasound Group which were all included in detail within the Investment Manager’s Review in the 2025 annual report.
On 29 May 2026, the Company paid a dividend of 1.8p per share, being the final dividend for the year ended 30 November
2025. As communicated the Company has updated its dividend policy. As previously communicated, the Board now target an
annual dividend of 6% of the opening NAV, with the flexibility to pay additional special dividends where there are
significant portfolio realisations. For the period to 31 May 2026, the Board has therefore declared an interim dividend
of 1.1p per share in respect of the period ended 31 May 2026. The dividend will be payable on 26 November 2026 to
shareholders on the register on 6 November 2026. Further consideration will be given to the potential for special
dividends during the course of the year. Outlook This was indeed a period of change within the Company, in the markets,
in the legislation that governs our business and around the globe. The fact that a VCT has the ability to invest patient
capital with a longer-term mindset allows the Company to ride out these waves of uncertainty while continuing to focus
on being custodians of your capital. Nevertheless, whilst we have rational expectations that the underlying strength of
trading performance of our investments will eventually be better reflected in their market values, we must continue to
examine every aspect of the business for further opportunity. We therefore recommit to ensuring we have the most
effective structure and management to maximise shareholder benefit and attract new investors both now and for the longer
term. We welcome your comments and feedback at all times and look forward to the future. Andy RaynorChair Investment
Manager’s review Overview The interim period began positively following the Autumn Budget announcement of long-awaited
reforms to the VCT rules. These changes, which took effect on 6 April 2026, were well received by the sector and came at
an important time for both VCTs and UK capital markets. Over recent years, VCTs have continued to play a valuable role
in providing capital to small growth companies, particularly against a backdrop of sustained outflows from UK small cap
funds. The reforms significantly broaden the scope for investment. Companies may now qualify with up to £30 million of
gross assets before investment, compared with £15 million previously, and up to £35 million following investment,
compared with £16 million. The annual fundraising limit has increased to £10 million, or £20 million for knowledge
intensive businesses, while their lifetime limit has risen to £24 million, or £40 million for knowledge intensive
businesses. Although the reduction in income tax relief from 30% to 20% is expected to temper demand to some extent, the
wider expansion of the qualifying criteria represents a meaningful and welcome development. It reinforces the VCT
sector’s important role in supporting innovative smaller businesses and providing growth capital where it is often
most needed. In line with our expectations, the impact has been immediate, and the deal pipeline has strengthened
materially. Market conditions were also supportive in the early part of the period, helped by a relatively resilient UK
macroeconomic backdrop. However, sentiment softened towards the end of January as global technology valuations came
under pressure following the derating of AI related stocks. This was then compounded at the end of February by the
outbreak of the war on Iran, which raised concerns about potential disruption to energy prices and supply chains.
Encouragingly, UK markets have since recovered steadily through March and into the remainder of the period, supported by
a sustained improvement in investor sentiment. The UK economy remained stable over the period, despite a complex global
backdrop and heightened political uncertainty at home. Market expectations for rate cuts during the year were later
revised as a result of higher energy prices and the associated impact on inflation. Nonetheless, interest rates were
held at 3.75%, and concerns about potential further increases have since diminished. UK GDP growth for 2026 is currently
expected to be modest, with forecasts generally ranging from around 0.8% to 1.4%, reflecting a background of weaker
consumer confidence, higher energy prices and ongoing uncertainty over the pace of interest rate cuts. As expected, the
larger UK share indices outperformed AIM overall, reflecting a more cautious investor stance towards risk. However,
there were encouraging signs throughout the period, with both IPO activity and secondary fundraisings picking up.
Encouragingly, AIM IPOs outpaced those on the Main Market, with six AIM IPOs compared to three on the Main Market,
underscoring AIM’s continuing role as an important source of growth capital for smaller companies. Performance After
adding back dividends of 5.4p paid during the interim period, net asset value total return increased by 0.8%, reflecting
an encouraging recovery from the decline reported at the previous interim period and the flat performance reported at
the previous year end. This compares with a rise of 9.6% in the FTSE AIM All Share Index and 8.8% in the FTSE All Share
Index over the same period. Investor sentiment remained cautious towards smaller high growth companies, and the
portfolio’s lack of exposure to resource and mining companies, which are outside VCT qualifying criteria, was a key
factor in the relative divergence in performance against this benchmark. More broadly, the AIM index outperformance was
supported by resource and mining stocks, which accounted for more than 75% of the index’s performance over the period,
reflecting continued investor interest in energy and commodity exposure amid favourable pricing conditions. The FTSE All
Share also benefited from broad based sector strength, led by banks, pharmaceuticals, defence and industrial services.
The Company’s well-diversified portfolio of established holdings continues to provide resilience, although individual
investments inevitably influence overall returns. During the period, contributions came principally from Abingdon
Health, Popsa, Animalcare, and TPXimpact Holdings, each of which delivered positive operational and commercial progress.
Abingdon Health is a leading international developer, manufacturer and regulatory services provider for rapid diagnostic
tests and medtech, whose shares rose strongly amid renewed interest in smaller healthcare diagnostics. Recently, the
company announced the UK launch of its LVOne Stroke Triage Test, as well as satisfying the earn-out on its IVDeology
acquisition, after it hit the maximum two-year revenue target. Popsa, a leading UK photobook and memory products
company, continues to trade strongly and grow their market share in the UK. Furthermore, their US division is trading
well and gaining market share. Animalcare, a UK-based veterinary health business that develops, sells and distributes
licensed pharmaceuticals and related products for companion animals and horses, agreed a £235.2 million takeover bid
from Charterhouse Capital Partners. Shareholders were offered 336p in cash per share representing a 36% bid premium. The
company will delist on AIM in early August. Leading technology-enabled services company TPXimpact Holdings has won
several public-sector contracts, upgraded earnings guidance, and reported stronger preliminary results with better cash
generation and a healthier pipeline. Offsetting these gains, the main detractors were Craneware, Beeks Financial Cloud
Group and Equipmake. Craneware, a leading US healthcare technology company, saw its share price underperform for much of
the period amid a broader derating in global technology valuations, despite reporting solid operational performance at
its interim results. Following the period end, the share price was further affected by news that US drug manufacturers
had restricted access to certain drugs in hospitals, which delayed its planned rebate pilot programme. This programme is
now expected to resume later in the year. Beeks Financial Cloud Group, a cloud computing and connectivity provider for
financial markets, also underperformed after revenues were affected by delayed contract recognition and a move to
revenue share models for Exchange Cloud contracts, a transformative cloud infrastructure solution specifically designed
for trading venues. Although this had been flagged previously by the company, gross margins also declined from 38% to
30% as the business invested in infrastructure ahead of customer launches and due to lower upfront Proximity Cloud
revenue. Nevertheless, the company continues to win new contracts and remains on track to meet market expectations for
the full year. Equipmake, a developer and manufacturer of electric drivetrains, announced a series of orders over recent
months and, more positively, received a further strategic investment of £3 million from Caterpillar in February this
year. The order book now stands at £10.7 million. However, the share price remained weak as the market continued to
focus on the company’s loss-making profile, strategic uncertainty and future cash requirements. Outlook Despite mixed
performance across UK capital markets, we remain confident in the outlook for the period ahead. Ongoing uncertainty
around interest rates, geopolitical tensions and energy price volatility continues to weigh on near term sentiment. As a
result, valuations across UK smaller companies remain subdued, reflecting an extended period of investor caution rather
than any fundamental weakening in underlying business performance. Against this backdrop, the operational progress
delivered across the portfolio provides reassurance. Many of our holdings continue to demonstrate strong execution,
reinforcing our conviction that the portfolio represents a compelling source of long-term value for investors. We
believe valuations within the UK smaller companies universe remain highly attractive, both in historical terms and
relative to global peers. This is particularly evident among businesses with strong competitive domestic and
international positions, resilient cash generation and clear earnings visibility. We have also been encouraged by the
strength of the deal pipeline following the recent VCT reforms, which is providing access to a range of innovative, high
growth opportunities at appealing entry valuations. The Octopus Quoted Companies team Directors’ responsibilities
statement We confirm that to the best of our knowledge: the half-yearly financial statements have been prepared in
accordance with Financial Reporting Standard 104 ‘Interim Financial Reporting’ issued by the Financial Reporting
Council;the half-yearly financial statements give a true and fair view of the assets, liabilities, financial position
and profit or loss of the Company; andthe half-yearly report includes a fair review of the information required by the
Financial Conduct Authority Disclosure Guidance and Transparency Rules, being: we have disclosed an indication of the
important events that have occurred during the first six months of the financial year and their impact on the condensed
set of financial statements;we have disclosed a description of the principal risks and uncertainties for the remaining
six months of the year; andwe have disclosed a description of related party transactions that have taken place in the
first six months of the current financial year, that may have materially affected the financial position or performance
of the Company during that period and any changes in the related party transactions described in the last annual report
that could do so. By Order of the Board Andy RaynorChair Income statement UnauditedSix months to 31 May
2026UnauditedSix months to 31 May 2025AuditedYear to 30 November
2025 RevenueCapitalTotalRevenueCapitalTotalRevenueCapitalTotal £’000£’000£’000£’000£’000£’000£’000£’000£’000(Loss)/gain
on disposal of fixed asset investments– (38) (38)– 251 251 – (1,181)(30)Gain/(loss) on disposal of current
asset investments– 109 109 – (20)(20)– (24)57 Gain/(loss) on valuation of fixed asset
investments– 497 497 – (788)(788)– 2,402 (837)Gain/(loss) on valuation of current asset
investments– 676 676 – (567)(567)– (510)881 Investment
income543 – 543 610 – 610 1,303 – 1,303 Investment management
fees(175)(526)(701)(158)(471)(629)(326) (977)(1,303)Other
expenses(411)– (411)(228)– (228)(520) – (520)(Loss)/profit before
tax(43)718 675 224 (1,595)(1,371)457 (290)167 Tax– – – – – – – – – (Loss)/profit after
tax(43)718 675 224 (1,595) (1,371)457 (290)167 Earnings per share – basic and
diluted0.0p 0.3p 0.3p 0.1p (0.8p)(0.7p)0.2p (0.1p)0.1p • The ‘Total’ column of this statement is the profit
and loss account of the Company; the supplementary revenue return and capital return columns have been prepared in
accordance with the AIC Statement of Recommended Practice. • All revenue and capital items in the above statement
derive from continuing operations. • The Company has only one class of business and derives its income from
investments made in shares and securities and from bank and money market funds (MMF), as well as Open Ended Investment
Company (OEIC) funds. The Company has no recognised gains or losses other than the results for the period as set out
above. Accordingly, a statement of comprehensive income is not required. The accompanying notes form an integral part of
the financial statements. Balance sheet UnauditedAs at 31 May 2026UnauditedAs at 31 May 2025AuditedAs at 30 November
2025 £’000£’000£’000£’000£’000£’000Fixed asset investments 43,495 50,312 49,780Current
assets: Investments8,567 9,263 9,366 Money market
funds17,070 19,816 16,898 Debtors239 228 250 Cash at
bank1,431 1,520 1,617 27,307 30,827 28,131 Creditors: amounts falling due within one
year(479) (367) (488) Net current assets 26,828 30,460 27,643Total assets less current
liabilities 70,323 80,772 77,423 Called up equity share capital 22 21 21Share
premium 6,938 14,616 692Capital redemption reserve 6 4 5Special distributable
reserve 65,907 70,894 79,930Capital reserve realised (3,675) (7,667) (14,184)Capital reserve
unrealised 2,481 4,450 12,272Revenue reserve (1,356) (1,546) (1,313)Total equity shareholders’
funds 70,323 80,772 77,423NAV per share – basic and diluted 31.8p 37.9p 36.9p The statements were approved
by the Directors and authorised for issue on 22 July 2026 and are signed on their behalf by: Andy Raynor Chair Company
Number: 05528235 The accompanying notes form an integral part of the financial statements. Statement of changes in
equity Share capitalShare premiumCapital redemption reserveSpecial distributable reserves1Capital reserve
realised1Capital reserve unrealisedRevenue
reserve1Total£’000£’000£’000£’000£’000£’000£’000£’000As at 1 December
202521692579,930(14,184)12,272(1,313)77,423Total comprehensive (loss)/profit for the
period––––(455)1,173(43)675Contributions by and distributions to owners: Repurchase and
cancellation of own shares(1)–1(2,369)–––(2,369)Issue of shares26,459–––––6,461Share issue
costs–(213)–––––(213)Dividends paid–––(11,654)–––(11,654)Total contributions by and
distributions to owners16,2461(14,023)–––(7,775)Other movements: Prior years’ holding losses now
realised––––10,964(10,964)––Total other movements––––10,964(10,964)––Balance as at 31 May
2026226,938665,907(3,675)2,481(1,356)70,323 The accompanying notes form an integral part of the financial statements. 1
The sum of these reserves is an amount of £60,876,000 (31 May 2025: £61,680,000 and 30 November 2025: £64,433,000)
which is considered distributable to shareholders. The Income Taxes Act 2007 restricts distribution of capital from
reserves created by the conversion of the share premium account into a special distributable reserve until the third
anniversary of the share allotment that led to the creation of that part of the share premium account. As at 31 May
2026, £36,808,000 of the special reserve is distributable under this restriction. . Share capitalShare
premiumCapital redemption reserveSpecial distributable reservesCapital reserve realisedCapital reserve unrealisedRevenue
reserveTotal£’000£’000£’000£’000£’000£’000£’000£’000As at 1 December
2024206,314476,116(13,501)11,879(1,770)79,062Total comprehensive (loss)/profit for the
period––––(240)(1,355)224(1,371)Contributions by and distributions to owners: Repurchase and
cancellation of own shares–––(1,419)–––(1,419)Issue of shares18,803–––––8,804Share issue
costs–(501)–––––(501)Dividends paid–––(3,803)–––(3,803)Total contributions by and distributions
to owners18,302–(5,222)–––3,081Other movements: Prior years’ holding losses now
realised––––6,074(6,074)––Total other movements––––6,074(6,074)––Balance as at 31 May
20252114,616470,894(7,667)4,450(1,546)80,772 The accompanying notes form an integral part of the financial statements.
Share capitalShare premiumCapital redemption reserveSpecial distributable reserves1Capital reserve realised1Capital
reserve unrealisedRevenue reserveTotal£’000£’000£’000£’000£’000£’000£’000£’000As at 1 December
202420 6,314 4 76,116 (13,501)11,879 (1,770)79,062 Total comprehensive (loss)/profit for the
year– – – – (2,182)1,892 457 167 Contributions by and distributions to owners: Repurchase
and cancellation of own shares(1)– 1 (3,230)– – – (3,230)Issue of
shares2 9,492 – – – – – 9,494 Share issue costs– (501)– – – – – (501)Dividends
paid– – – (7,569)– – – (7,569)Total contributions by and distributions to
owners1 8,991 1 (10,799)– – – (1,806)Other movements: Cancellation of share
premium– (14,613)– 14,613 – – – – Prior years’ holding gains now
realised– – – – 1,499 (1,499)– – Total other
movements– (14,613)– 14,613 1,499 (1,499)– – Balance as at 30 November
202521 692 5 79,930 (14,184)12,272 (1,313)77,423 The accompanying notes form an integral part of the financial
statements. Cash flow statement UnauditedSix months to31 May 2026UnauditedSix months to31 May 2025 AuditedYear to 30
November 2025 £’000£’000£’000Cash flows from operating activities Profit/(loss) before
tax 675 (1,371)167 Adjustments for: Decrease/(increase) in debtors 11 (76) (98)Decrease in
creditors (9)(169)(48)Loss/(gain) on disposal of fixed asset investments 38 (251)1,181 (Gain)/loss on disposal of
current asset investments (109)20 24 (Gain)/loss on valuation of fixed asset
investments (497)788 (2,402)(Gain)/loss on valuation of current asset investments (676)567 510 Net cash utilised in
operating activities (567)(492)(666) Cash flows from investing activities Purchase of fixed asset
investments (4,964)(3,190)(4,569)Proceeds from sale of fixed asset investments 11,708 9,482 13,151 Purchase of
current asset investments – – (300)Proceeds from sale of current asset investments 1,584 296 546 Net cash
flows generated from investing activities 8,328 6,588 8,828 Cash flows from financing
activities Purchase of own shares (2,369)(1,419)(3,230)Share issues (net of DRIS) 4,426 8,804 8,102 Share
issue costs (213)(501)(501)Dividends paid (net of DRIS) (9,619)(3,803)(6,177)Net cash flows (utilised) in/generated
from financing activities (7,775)3,081 (1,806) (Decrease)/increase in cash and cash
equivalents (14)9,177 (6,356) Opening cash and cash equivalents 18,515 12,159 12,159 Increase in cash and
cash equivalents 18,501 21,336 18,515 Closing cash and cash equivalents is represented by: Cash at
bank 1,431 1,520 1,617 Money market funds 17,070 19,816 16,898 Total cash and cash
equivalents 18,501 21,336 18,515 The accompanying notes form an integral part of the financial statements.
Condensed notes to the financial statements 1. Basis of preparation The unaudited half-yearly report which covers
the six months to 31 May 2026 has been prepared in accordance with the Financial Reporting Council’s (FRC) Financial
Reporting Standard (FRS) 104 Interim Financial Reporting (January 2022) and the Statement of Recommended Practice (SORP)
for Investment Companies issued by the Association of Investment Companies in 2014 (updated in July 2022). The Directors
consider it appropriate to adopt the going concern basis of accounting. The Directors have not identified any material
uncertainties to the Company’s ability to continue to adopt the going concern basis over a period of at least twelve
months from the date of approval of the financial statements. In reaching this conclusion the Directors have had regard
to the potential impact on the Company of the current economic and geopolitical climate. The principal accounting
policies have remained unchanged from those set out in the Company’s 2025 Annual Report and Accounts.
2. Publication of non-statutory accounts The unaudited half-yearly report for the six months ended 31 May 2026 does
not constitute statutory accounts within the meaning of Section 415 of the Companies Act 2006. The comparative figures
for the year ended 30 November 2025 have been extracted from the audited financial statements for that year, which have
been delivered to the Registrar of Companies. The independent auditor’s report on those financial statements, in
accordance with chapter 3, part 16 of the Companies Act 2006, was unqualified. 3. Earnings per share The earnings
per share at 31 May 2026 are calculated on the basis of 212,395,356 shares (31 May 2025: 204,542,613 and 30 November
2025: 207,798,492), being the weighted average number of shares in issue during the period. There are no potentially
dilutive capital instruments in issue and, so no diluted returns per share figures are relevant. 4. Net asset value
per share The net asset value per share is based on net assets as at 31 May 2026 divided by 221,296,307 shares in issue
at that date (31 May 2025: 212,855,191 and 30 November 2025: 209,759,363). 5. Dividends The Directors have declared
an interim dividend of 1.1p per share (2025: 1.8p per share) payable from the special distributable reserve. This
dividend will be paid on 26 November 2026 to those shareholders on the register at 6 November 2026. The 2026 AGM
approved final dividend of 1.8p per share was paid on 29 May 2026. 6. Buybacks and share issues During the six
months ended 31 May 2026 the Company repurchased the following shares: DateNo. of sharesPrice (p)Cost (£)18 December
2025 1,968,953 35.4 697,000 22 January 2026 1,455,988 36.2 527,000 19 February 2026 877,140 35.5 311,000 19
March 2026 869,270 31.1 270,000 23 April 2026 678,509 31.8 216,000 21 May
2026 1,156,111 30.1 348,000 Total 7,005,971 2,369,000 The weighted average price of all buybacks during the
period was 34.6p per share. During the six months ended 31 May 2026 the Company issued the following shares: DateNo. of
sharesPrice (p)Net proceeds (£)9 March 2026 8,227,93036.8 3,028,000 26 March 2026 2,393,87231.2 747,000 1 April
2026 (DRIS) 4,292,42631.0 1,331,000 3 April 2026 1,355,69231.1 422,000 15 May 2026 49,61131.6 16,000 29 May
2026 (DRIS) 2,226,38431.6 704,000 Total18,545,915 6,248,000 Excluding the value of shares issued under the DRIS, the
total value of shares issued net of share issue costs was £4,213,000 (31 May 2025: £8,303,000 and 30 November 2025:
£7,601,000). This is shown in the Cash Flow Statement. 7. Principal risks and uncertainties The Company’s
principal risks are: Investment risk, VCT qualifying status risk, Operational risk, Cyber and information security risk,
Valuation risk, Legislative risk, Liquidity risk and Economic risk. These risks, and the way in which they are managed,
are described in more detail in the Company’s Annual Report and Accounts for the year ended 30 November 2025. The
Board has also considered emerging risks, including geo-political tensions, adverse changes in the global macroeconomic
environment and climate change, which the Board seeks to mitigate by setting policy and reviewing performance.
Otherwise, the Company’s principal risks and uncertainties have not changed materially since the date of that report.
8. Related party transactions The Company has employed Octopus Investments Limited (‘Octopus’ or the
‘Investment Manager’) throughout the period as Investment Manager. Octopus has also been appointed as Custodian of
the Company’s investments under a Custodian Agreement. The Company has been charged £702,000 by Octopus as a
management fee in the period to 31 May 2026 (31 May 2025: £631,000 and 30 November 2025: £1,303,000). The management
fee is payable quarterly and is based on 2% of net assets measured at quarterly intervals. The Company receives a
reduction in the management fee for the investments in other Octopus managed funds, being the FP Octopus UK Multi Cap
Income Fund, FP Octopus UK Micro Cap Growth Fund and FP Octopus UK Future Generations Fund, to ensure the Company is not
double charged on these products. This amounted to £25,000 in the period to 31 May 2026 (31 May 2025: £27,000 and 30
November 2025: £54,000). For further details please refer to the Company’s Annual Report and Accounts for the year
ended 30 November 2025. 9. Post-balance sheet events The following events occurred between the balance sheet date
and the signing of these financial statements: • On 18 June 2026, the Company purchased for
cancellation 802,568 Ordinary shares at a price of 30.6p. 10. Fixed asset investments Accounting policy The
Company’s principal financial assets are its investments and the policies in relation to those assets are set out
below. Purchases and sales of investments are recognised in the financial statements at the date of the transaction
(trade date). These investments will be managed and their performance evaluated on a fair value basis in accordance with
a documented investment strategy and information about them has to be provided internally on that basis to the Board.
Accordingly, as permitted by FRS 102, the investments are measured as being fair value through profit or loss (FVTPL) on
the basis that they qualify as a group of assets managed, and whose performance is evaluated, on a fair value basis in
accordance with a documented investment strategy. The Company’s investments are measured at subsequent reporting dates
at fair value. In the case of investments quoted on a recognised stock exchange, fair value is established by reference
to the closing bid price on the relevant date or the last traded price, depending upon convention of the exchange on
which the investment is quoted. In the case of unquoted investments and loan notes, fair value is established by
assessing different methods of valuation, such as price of recent transaction, earnings or revenue-based multiples,
discounted cash flows and net assets. Where price of recent investment is used as a starting point for estimating fair
value at subsequent measurement dates, this has been benchmarked using an appropriate valuation technique. These
methodologies are consistent with International Private Equity and Venture Capital Valuation (IPEV) guidelines. Gains
and losses arising from changes in fair value of investments are recognised as part of the capital return within the
Income Statement and allocated to the capital reserve unrealised. The Investment Manager reviews changes in fair value
of investments for any permanent reductions in value and will give consideration to whether these losses should be
transferred to the capital reserve realised. In the preparation of the valuations of assets the Directors are required
to make judgements and estimates that are reasonable and incorporate their knowledge of the performance of the investee
companies. Fair value hierarchy Paragraph 34.22 of FRS 102 suggests following a hierarchy of fair value measurements,
for financial instruments measured at fair value in the balance sheet, which gives the highest priority to unadjusted
quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable
inputs (Level 3). This methodology is adopted by the Company and requires disclosure of financial instruments to be
dependent on the lowest significant applicable input, as laid out below: Level 1: The unadjusted, fully accessible and
current quoted price in an active market for identical assets or liabilities that an entity can access at the
measurement date. Level 2: Inputs for similar assets or liabilities other than the quoted prices included in Level 1
that are directly or indirectly observable, which exist for the duration of the period of investment. Level 3: This is
where inputs are unobservable, where no active market is available and recent transactions for identical instruments do
not provide a good estimate of fair value for the asset or liability. There have been no reclassifications between
levels in the period. The change in fair value for the current and previous period is recognised through the profit and
loss account.Disclosure Level 1: Quoted equity investmentsLevel 3: Unquoted
investmentsTotal £’000£’000£’000Cost at 1 December 202543,028 3,487 46,515 Opening unrealised (loss)/gain
at 1 December 2025 (6,462)9,727 3,265 Valuation at 1 December 202536,566 13,214 49,780 Purchases at
cost4,904 60 4,964 Disposal proceeds(2,407)(9,301)(11,708)Loan to equity conversion200 (200)– Gain/(loss) on
realisation of investments81 (119)(38)Change in fair value in period(291)788 497 Valuation at 31 May 2026
39,053 4,442 43,495 Cost at 31 May 202642,665 7,946 50,611 Closing unrealised (loss)/gain at 31 May
2026 (3,612)(3,504)(7,116)Valuation at 31 May 2026 39,053 4,442 43,495 Level 1 valuations are valued in accordance with
the bid price on the relevant date. Further details of the fixed asset investments held by the Company are shown within
the Interim Management Report. Level 3 investments are reported at fair value in accordance with FRS 102 Sections 11 and
12, which is determined in accordance with the latest IPEV guidelines. In estimating fair value, there is an element of
judgement, notably in deriving reasonable assumptions, and it is possible that, if different assumptions were to be
used, different valuations could have been attributed to some of the Company’s investments. Level 3 investments
include £600,000 (31 May 2025: £800,000 and 30 November 2025: £800,000) of convertible loan notes held at cost, which
is deemed to be current fair value. In addition to this the Company holds nine unquoted investments which are classified
as level 3 in terms of fair value hierarchy. These are valued based on a range of valuation methodologies, determined on
an investment specific basis. The price of recent investment is used where a transaction has occurred sufficiently close
to the reporting date to make this the most reliable indicator of fair value. Where recent investment is not deemed to
indicate the most reliable indicator of fair value (i.e. the most recent investment is too distant from the reporting
date for this to be deemed a reasonable indicator), other market based approaches including earnings multiples,
annualised recurring revenues, discounted cashflows or net assets are used to determine a fair value for the
investments. All capital gains or losses on investments are classified at Fair Value Through Profit or Loss (FVTPL).
Given the nature of the Company’s venture capital investments, the changes in fair value of such investments
recognised in these financial statements are not considered to be readily convertible to cash in full at the balance
sheet date and accordingly these unrealised gains and losses are treated as holding gains or losses.
11. Half-Yearly Report The unaudited half-yearly report for the six months ended 31 May 2026 will shortly be
available to view at https://octopusinvestments.com/our-products/venture-capital-trusts/octopus-aim-vcts/ A copy of the
half-yearly report will be submitted to the National Storage Mechanism and will shortly be available for inspection at:
https://data.fca.org.uk/#/nsm/nationalstoragemechanism For further information please contact: Andrew HumphriesOctopus
Company Secretarial Services LimitedTel: +44 (0)80 0316 2067 LEI: 213800BW27BKJCI35L17 GlobeNewswire Recommended Reading
July 22, 2026 06:45 ET | Source: Octopus AIM VCT 2 plc Net Asset Value Octopus AIM VCT 2 plc Net Asset Value Octopus AIM
VCT 2 plc announces that as at 20 July 2026 the unaudited net asset value of the Ordinary shares was approximately
31.2 pence per share. For... Read More July 20, 2026 10:30 ET | Source: Octopus AIM VCT 2 plc Net Asset Value Octopus
AIM VCT 2 plc Net Asset Value Octopus AIM VCT 2 plc announces that as at 13 July 2026 the unaudited net asset value of
the Ordinary shares was approximately 31.1 pence per share. For... Read More