Hargreave Hale AIM VCT plc (LSE:HHV) reported a difficult first quarter of its 2025/26 financial year, with unaudited net asset value per share declining by 1.25p to 35.21p and a NAV total return of -3.43%. Performance was impacted by a weak AIM market and subdued UK economic conditions.
Qualifying investments were slightly negative overall. Strong gains in Hardide, Skillcast, and Tortilla Mexican Grill were more than offset by sharp falls in defence and diagnostics holdings Cohort and Diaceutics, along with weakness in Property Franchise Group. The non-qualifying portfolio provided some stability, particularly through fixed income holdings and UK small-cap funds. The VCT remained well above the HMRC qualifying threshold at 84.11%, increased its exposure to qualifying assets and fixed income, and continued to deploy capital via new and follow-on AIM investments. During the period, it exited Polarean Imaging and a gold miners ETF and repurchased 2.6 million shares, with the shares trading at a modest discount to NAV.
After the quarter end, NAV per share recovered to 36.33p as at 31 January 2026. The trust also committed to making further qualifying investments, pointing to continued portfolio rotation and a cautiously optimistic stance despite ongoing UK macroeconomic pressures and a still-quiet IPO environment.
From an outlook perspective, the VCT benefits from a conservative, debt-free balance sheet, but this is offset by volatile earnings, a sharp revenue decline in 2025, and persistently negative operating cash flow. Technical indicators remain weak, suggesting oversold conditions and negative momentum, while a high dividend yield and recent corporate activity offer partial support.
More about Hargreave Hale AIM VCT plc
Hargreave Hale AIM VCT plc is a UK-listed venture capital trust investing primarily in smaller, high-growth companies quoted on London’s Alternative Investment Market. The trust offers exposure to early-stage and developing businesses through a diversified mix of qualifying and non-qualifying assets, including direct equity investments, UK small-cap funds, and fixed income, with the aim of delivering tax-efficient income and long-term capital growth under the HMRC VCT framework.
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