Interim Management Statement Q4 2025

10 November 2025

HARGREAVE HALE AIM VCT PLC
(the “Company”)

Interim Management Statement

Q4 2025

Introduction

This interim management statement covers the final quarter of the 2024/25 financial year, 1 July 2025 to 30 September 2025. Investment performance measures contained in this report include realised and unrealised gains and losses.

Overview

The final quarter of 2025 marked a period of gradual improvement in both sentiment and stability across UK financial markets, as investors began to look beyond the turbulence of the early summer. The quarter opened amid concern that persistent inflation and weak household demand might derail the fragile recovery. Monthly GDP reports were weak but in line for July and August. PMI reports suggested further weakness through September followed by an uptick in October. This pattern of moribund growth is expected to persist into 2026.

UK CPI increased to 3.8% July and then plateaued in August and September. The September reading was lower than expected and will hopefully herald in a period of lower inflation. With unemployment continuing to grind higher to 4.8% in August and inflation starting to ease, the Bank of England will have further scope to ease interest rates following a 25bps cut to 4.00% in August. Markets expect a further two or three cuts over the next 12 months, with the next cut expected in December 2025 or February 2026.

Consumer sentiment, whilst still fragile, improved steadily. UK households continued to be cautious with an elevated savings rate and further reductions in household debt, potentially reflecting concerns about weakening employment markets and the risk of higher taxes. 

Gilt yields increased steadily through the quarter as markets became more restless about UK public spending, fiscal headroom and persistently high inflation, setting the scene for a difficult 2025 Autumn Budget. Companies have taken note with business confidence surveys rolling over.

Moves by the US Government to soften some of its more extreme positioning on trade were well received by global equity markets, including the UK. AIM posted another quarter of positive returns and gained 1.21%¹, broadly in line with the domestically focussed FTSE 250 Index.

Performance

In the three months to 30 September 2025, the unaudited NAV per share increased from 36.43 pence per share to 36.46 pence. An interim dividend for the six months to 31 March 2025 of 0.75 pence and a special dividend of 0.50 pence were paid on 25 July 2025, giving a NAV total return to shareholders of +1.28 pence per share, which translates to a gain of +3.51%.