Unicorn Asset Management Regulatory News (UAV)

Unicorn AIM VCT plc ("The Company")

Half-Yearly Report Announcement for the six months ended 31 March 2021

Financial Highlights

For the six months ended 31 March 2021

- Net Asset Value ("NAV") total return per share for the six months ended 31 March 2021, after adding the back the dividend paid in the period, was 31.9%.

- £11.5 million of qualifying investments (£8.3 million new, £3.2 million follow-on) made in the period.

- Interim dividend of 3.0p per share declared for the six months ended 31 March 2021.

- The Offer for Subscription, launched on 28 January 2021, was over subscribed by 11 February 2021, and had raised £12.0 million (after costs of £292,500) by 31 March 2021, with a further £2.6 million (after costs of £62,900) raised on 8 April 2021.

Fund Performance

* Shareholders' funds/net assets as shown in the Condensed Statement of Financial Position below.

** Since the merger of the Company with Unicorn AIM VCT II plc on 9 March 2010 and merger of all former share classes.

Chairman's Statement

I am pleased to present the unaudited Half-Yearly Report of the Company for the six month period ended 31 March 2021.

As at 31 March 2021, net assets were £346.3 million. This represents an increase of £179.3 million from 31 March 2020 and an increase of £86.1 million since 30 September 2020. After adding back the dividend paid in the period, the total return in the six month period under review was +31.9% per share.

The Company's total return compared favourably to the FTSE AIM All-Share Index, which increased by 25.3% over the same period, while the total return of the FTSE All-Share Index was +18.5%.

The growth in capital value, from the low point reached in March 2020, is gratifying and performance over the past six months has been particularly pleasing, since it contrasts so sharply with the painful decline in value experienced in the equivalent six month period ended 31 March 2020 following the outbreak of the Covid-19 pandemic. This welcome reversal in fortunes highlights the advantages of adopting a diversified and long-term approach to managing a portfolio of predominantly AIM listed companies, whose value can fluctuate rapidly during periods of stress and subsequent recovery.

Investment Performance

A review of the ten most meaningful contributions to performance in the period in absolute terms (both positive and negative) follows.

Contributors:-

MaxCyte (+£16.1 million) is a clinical-stage, cell-based therapies and life sciences business that has developed a unique and patented cell-engineering platform. Final results released at the end of March 2021, confirmed that the business made significant progress in 2020. Although MaxCyte remains loss-making, revenues grew by an impressive 21% to $26.2 million, while pre-tax losses narrowed significantly. Further revenue growth is anticipated during 2021, driven by continued progress with existing commercial partners and the conversion of significant new pipeline opportunities. More important, the possible total value of future milestone payments has now risen to over $950 million. During the period, MaxCyte successfully raised £40 million, which bolstered its balance sheet and brought new shareholders to the company's register in advance of an expected listing on NASDAQ later in 2021.

Renalytix AI (+£6.3 million) is an artificial intelligence enabled 'in vitro' diagnostics company focused on optimising the clinical management of kidney disease. Interim results for the six months ended 31 December 2020 confirmed significant operational and regulatory progress including the first commercial orders for its key KidneyIntelX tests. In February 2021, the United States Office of Management and Budget cleared KidneyIntelX under the Medicare Coverage of Innovation Technology rule, which grants nationwide reimbursement approval for the IntelX test following regulatory clearance from the US Food and Drug Administration. At the end of April 2021, Renalytix AI announced its first major commercial contract. Under the terms of the 10-year, US government contract for KidneyIntelX testing, pricing has been set at $950 per reportable result. The specific test is for diabetic kidney disease, and the contract covers 140 US government departments, including the military. This contract is a major breakthrough for Renalytix AI and represents comprehensive validation of their AI driven technology platform.

Hasgrove (+£6.2 million) is the holding company for Interact; a Software as a Service ("SaaS") business, which delivers internal business communications software that helps global corporations to develop fully engaged and productive work environments. Trading at Interact exceeded expectations during its financial year to 31 December 2020, despite a challenging operational backdrop, with annual revenues growing by 26% to £20.1 million. Subscription sales have continued to grow strongly as the business expands its operations and strategic focus on North America. In addition, Interact continues to benefit from the need for businesses to enable their employees to work from home during the ongoing global pandemic.

Surface Transforms ("ST") (+£5.3 million) is a manufacturer of carbon fibre reinforced ceramic automotive brake discs. In a trading update covering the twelve month period ended 31 December 2020, management reported on a transformational year of progress for the company, with ST's patented ceramic brake discs being specified on a number of new vehicle models from a variety of automotive manufacturers. As a result, contracted pipeline revenues have increased significantly. Management remains confident of securing nomination on further vehicle models, with pilot testing programmes and commercial negotiations both reported to be progressing well. In January 2021, ST successfully raised £18 million of additional capital to fund an expansion of existing production capacity.

Interactive Investor (ii) (+£4.3 million) is the UK's second largest direct-to-consumer investment platform with assets under administration of £45 billion and more than 350,000 customers. ii currently has corporate net assets of more than £200 million and operates with no debt. In its financial year ended 31 December 2020, ii generated revenues of £121.3 million and EBITDA of £48.3 million representing growth on the previous financial year of 46% and 90% respectively. In March 2021, ii agreed to acquire the direct-to consumer retail customer book from EQ, for a total consideration of up to £48.5 million. On completion of this latest transaction, ii's assets under administration are expected to increase further, to around £50 billion, while customer numbers are likely to be more than 400,000.

Access Intelligence (+£3.8 million) provides Software-as-a-Service ("SaaS") solutions for the public relations, communications and marketing divisions of large corporates. Final results for the financial year ended 30 November 2020 confirmed that the business has made considerable progress in winning new international 'blue-chip' clients including; Amazon, Twitter and AstraZeneca. These important customer wins helped to fuel strong growth in annual contract value of 21% to £21.9 million, which supports growth in future revenues. Access Intelligence successfully raised £10 million in new capital in December 2020, which will be used to invest in enhancing the product portfolio and to enable further geographic expansion.

Anpario (+£3.6 million) is a manufacturer and distributor of natural feed additives for animal health, nutrition and biosecurity. Anpario reported resilient results for the 12 months ended 31 December 2020, despite the broader challenges associated with the Covid-19 pandemic. Group revenues increased 5% to £30.5 million, while profit before tax increased by 22% to £5.4 million. This impressive financial performance was primarily driven by strong sales growth in the Americas, Europe and China, combined with tight cost control, which resulted in the business generating a record level of annual profit. Anpario's natural products are particularly well placed to capture further demand, due to increasing legal restrictions surrounding the use of antibiotic growth promoters in production animals.

Ilika (+£3.1 million) is a pioneer in the development of solid state battery technology, enabling solutions for many different customers that require safe, portable, flexible, fast charging, high energy battery solutions. Ilika has continued to develop and commercialise its thin-film 'Stereax' miniature solid-state batteries that are primarily designed to power medical devices and industrial wireless sensors in hostile environments. In addition, Ilika has made good progress in developing its large-format 'Goliath' battery cells for use in electric vehicles and has recently signed a framework agreement with the UK Battery Industrialisation Centre, which is designed to facilitate growth in battery production from 1 kilo-watt hour per week to 5 Mega-watt hour per week by 2024.

Destiny Pharma (+£3.1 million) is a clinical phase biotechnology company dedicated to the development of novel gels focused on infection prevention. Destiny Pharma recently announced positive results from a clinical study which tests its XF-73 nasal gel for the prevention of post-surgical infections such as methicillin-resistant Staphylococcus aureus (commonly known as MRSA). Following this positive development, the business now plans to develop a Phase 3 clinical study alongside regulatory bodies, including the US Food & Drug Administration. Destiny's management team has identified a significant potential commercial opportunity for XF-73 in hospitals to help tackle the fight against MRSA.

Avacta Group (+£3.0 million) develops innovative cancer therapies and diagnostics based on its proprietary Affimer® and pre|CISION™ platforms. Avacta recently released its final results for the financial year ended 31 December 2020, which highlighted the remarkable progress made in its Diagnostics division over the past twelve months. Importantly, Avacta has achieved excellent clinical sensitivity and specificity for its rapid coronavirus antigen 'lateral flow' test. The mass manufacture and commercialisation of this test is now dependent upon securing a CE Mark that will serve to validate the safety and conformity of the product. On 10 May 2021, Avacta reported that the Declaration of Conformity for the CE Mark had been submitted to Medicines and Healthcare Products Regulatory Agency ("MHRA"). Avacta's Therapeutics division also made substantial progress during 2020, despite the significant constraints on operations imposed as a result of the Covid-19 pandemic. In addition to various key licensing and partnership agreements, Avacta has also secured critical approval from the MHRA to trial its proprietary pre|CISION™ chemistry in a phase 1 'in-human' trial on patients who have locally advanced cancerous tumours.

In view of the buoyant equity markets that prevailed during the period under review, positive contributions were broadly spread throughout the portfolio. The ten best performing stocks, as reported on above, in aggregate, delivered realised and unrealised capital gains amounting to more than £53 million.

Detractors:-

There were no material detractors from performance during the period under review. In absolute terms, the ten largest detractors from performance registered, in aggregate, an unrealised capital loss of £3 million, which equates to less than 1% in negative performance contribution overall.

Investment Activity

The pipeline of investment opportunities strengthened during the period under review, as the UK equity market continued to recover from the sell-off triggered by the onset of the Covid-19 pandemic in early 2020. As a result, the number and value of deals completed in the first half of the Company's current financial year increased significantly. In total, five new VCT qualifying transactions were completed in the period, while follow-on investments were made in three portfolio companies that remained eligible for further State Aided funding. In aggregate, £11.5 million was allocated to VCT qualifying companies in the period. A detailed review of the new investments made in the period will be contained in the Annual Report for the financial year ending 30 September 2021.

In aggregate, over £9.3 million was raised from the partial disposal of a number of holdings during the period. The purpose of such disposals is threefold; to manage stock specific risk, to lock in capital profits for future distribution to Shareholders via dividend payments, and to help manage liquidity requirements.

Offer for Subscription

The latest Offer for Subscription was launched on 28 January 2021. The Offer was heavily oversubscribed and closed to applications on 11 February 2021. In relation to the tax year ended 5 April 2021, new shares to the value of £12.0 million were allotted and issued. On behalf of the Board, I welcome all new Shareholders and thank existing Shareholders for their continued support.

Dividends

The Board has declared an interim dividend of 3.0 pence per share, for the six months ended 31 March 2021. This interim dividend will be paid on 12 August 2021 to Shareholders on the register on 16 July 2021. The shares will be quoted ex-dividend on 15 July 2021.

Dividend decisions are taken by the Board of the Company and are always subject to a number of factors including; market conditions, satisfactory performance, and/or availability of cash and distributable reserves.

Dividend Reinvestment Scheme ("DRIS")

On 11 February 2021, 182,131 Ordinary Shares were allotted at a price of 215.3 pence per share, being the latest published net asset value at 31 January 2021, to Shareholders who elected to receive Ordinary Shares under the DRIS as an alternative to the final cash dividend for the year ended 30 September 2020.

Share Buybacks

During the period from 1 October 2020 to 31 March 2021, the Company bought back 1,878,400 of its own Ordinary Shares for cancellation, at an average price of 181.3 pence per share including costs.

As at 31 March 2021, there were 149,221,613 Ordinary Shares in issue.

Material Transactions

Other than the allotment of shares under the Offer for Subscription, share buybacks and the purchase and sale of investments described above, there were no material transactions in the six month period ended 31 March 2021. Subsequent to the end of the period under review, a further 1,129,286 new Ordinary Shares were allotted and issued under the Offer for Subscription. These new shares were issued to applicants who requested that their shares be allotted in the 2021/2022 tax year. Following this allotment, the Company had 150,350,899 Ordinary Shares in issue.

VCT Status

The Company remains above the VCT qualifying threshold required by HM Revenue & Customs, with approximately 89.4% (excluding new capital) of total assets by VCT value being invested in VCT qualifying companies. The Company has complied with all other HM Revenue & Customs regulations, and your Board has been advised by its VCT Tax Adviser, PricewaterhouseCoopers LLP, that the Company has maintained its venture capital trust status.

Outlook

The impressive roll-out of the nationwide vaccination programme, means that almost 37 million people, being approximately 70% of the UK adult population, have already received their first dose of vaccine and over 38% have also received a second dose. When taken in conjunction with the extended national lockdown measures that have been in place since December 2020, the UK is currently experiencing a welcome and sustained fall in the number of new Covid-19 infections.

The negative long term economic consequences of the global pandemic are likely to be significant. The huge increase in government debt, the likelihood of a significant rise in structural unemployment and the possibility of a return of inflation, despite stagnant economic growth, all suggest there will be a heavy price to pay in future for protecting the UK population today. In the short term however, the UK's emergence from a third national lockdown will lead to a sharp recovery in consumer spending. The restrictions have resulted in a significant increase in the UK household savings ratio, which had risen to a near record high of 16.1% by the end of March 2021, according to data recently released by the Office for National Statistics. As a result, household savings are forecast to have increased by at least £150 billion in the past twelve months. Meanwhile, incomes and vulnerable jobs have largely been protected over the past year by government initiatives such as the furlough scheme. As national lockdown restrictions are eased, the early evidence of consumer behaviour suggests that this excess disposable income may well be deployed in a short-term spending spree that reflects significant pent-up consumer demand, especially across the hospitality, leisure, retail and travel sectors. Current economic forecasts suggest that UK Gross Domestic Product may grow by up to 7% in 2021, despite the lockdown in the first quarter, which gives a clear indication of the potential strength of this pent-up demand.

In the absence of a further serious wave of Covid-19 infections in the UK, the Board is cautiously optimistic about the prospect of delivering net asset growth in the second half of the Company's financial year. This cautious optimism is however, moderated by worrying developments elsewhere, particularly in India, where virus mutations appear to have facilitated an explosive growth in the rate of new and serious infections.

Conclusion

The Board is pleased with the strong progress made by the Company in the six months ended 31 March 2021. The performance of the portfolio during the period was exceptional, however, we should not expect that to be repeated in the second half of the year. The positive absolute and relative performance, combined with an over-subscribed Offer for Subscription, led to the net assets of the Company closing the period at a record high level of £346.3 million.

As ever, the long-term aim remains to deliver meaningful capital returns, while maintaining the long established track record of distributing a steady and attractive flow of tax free dividends to eligible Shareholders.

Notwithstanding the risks posed by the ongoing Covid-19 crisis, I am hopeful of being in a position to report on further progress after the end of the current financial year.

Tim Woodcock

Chairman

18 May 2021

Investment Objective

The Company's objective is to provide Shareholders with an attractive return from a diversified portfolio of investments, predominantly in the shares of AIM quoted companies, by maintaining a steady flow of dividend distributions to Shareholders from the income as well as capital gains generated by the portfolio.

It is also the objective that the Company should continue to qualify as a Venture Capital Trust, so that Shareholders benefit from the taxation advantages that this brings. To achieve this at least 80% for accounting periods commencing after 6 April 2019 (previously 70%) of the Company's total assets are to be invested in qualifying investments of which 70% by VCT value (30% in respect of investments made before 6 April 2018 from funds raised before 6 April 2011) must be in ordinary shares which carry no preferential rights (save as permitted under VCT rules) to dividends or return of capital and no rights to redemption.

In order to achieve the Company's investment objective, the Board has agreed an investment policy which requires the Investment Manager to identify and invest in a diversified portfolio, predominantly of VCT qualifying companies quoted on AIM that display a majority of the following characteristics:

➢ experienced and well-motivated management;

➢ products and services supplying growing markets;

➢ sound operational and financial controls; and

➢ potential for good cash generation to finance ongoing development and support for a progressive dividend policy.

Asset allocation and risk diversification policies, including maximum exposures, are to an extent governed by prevailing VCT legislation. No single holding may represent more than 15% (by VCT value) of the Company's total investments and cash, at the date of investment.

There are a number of VCT conditions which need to be met by the Company which may change from time to time. The Investment Manager will seek to make qualifying investments in accordance with such requirements.

Where capital is available for investment while awaiting suitable VCT qualifying opportunities or is in excess of the 80% VCT qualification threshold for accounting periods commencing after 6 April 2019, it may be held in cash or invested in money market funds, collective investment vehicles or non-qualifying shares and securities of fully listed companies registered in the UK.

To date the Company has operated without recourse to borrowing. The Board may however consider the possibility of introducing modest levels of gearing up to a maximum of 10% of the adjusted capital and reserves, should circumstances suggest that such action is in the interests of Shareholders.

Venture Capital Trust Status

The Company has satisfied the requirements for approval as a Venture Capital Trust ("VCT") under section 274 of the Income Tax Act 2007 (ITA). It is the Directors' intention to continue to conduct the business of the Company so as to maintain compliance with that section.

 * Based on fair value not VCT carrying value

** The holding in Interactive Investor consists of both qualifying and non-qualifying shares.

The important events that have occurred during the period under review and the key factors influencing the financial statements are set out in the Chairman's Statement above.

In accordance with DTR 4.2.7, the Directors consider that the principal risks and uncertainties facing the Company have not materially changed since the publication of the Annual Report and Accounts for the year ended 30 September 2020.

The principal risks faced by the Company include, but are not limited to:

• investment and strategic

• regulatory and tax

• operational

• fraud and dishonesty

• financial instruments

• economic and political

• global pandemics

A more detailed explanation of these risks and the way in which they are managed can be found in the Strategic Report on page 26 and in the Notes to the Financial Statements on pages 64 and 65 of the 2020 Annual Report and Accounts - copies can be found via the Company's website, www.unicornaimvct.co.uk.

Global Pandemics

Covid-19 remains a significant risk which has impacted global commercial activities. The Board continues to monitor the pandemic and has considered the impact it has had to date and assessed the impact it may have in the future. We cannot ignore the impact of Covid-19 and the Chairman's Statement covers this subject in more detail. The Board continues to liaise with the Investment Manager to obtain a full understanding of the impact on the investee companies.

Directors' Statement of Responsibilities in Respect of the Financial Statements

In accordance with Disclosure and Transparency Rule (DTR) 4.2.10, Tim Woodcock (Chairman), Charlotta Ginman, Jeremy Hamer (Chairman of the Audit Committee) and Jocelin Harris (Senior Independent Director), the Directors, confirm that to the best of their knowledge:

● the condensed set of financial statements, which have been prepared in accordance with FRS 104 "Interim Financial Reporting" give a true and fair view of the assets, liabilities, financial position and profit of the Company for the period ended 31 March 2021, as required by DTR 4.2.4;

● this Half-Yearly Report includes a fair review of the information required as follows:

the interim management report included within the Chairman's Statement, and the Investment Portfolio Summary, includes a fair review of the information required by DTR 4.2.7 being an indication of important events that have occurred during the first six months of the financial year and their impact on the condensed set of financial statements; and a description of the principal risks and uncertainties facing the Company for the remaining six months of the year; and

there were no other related party transactions in the first six months of the current financial year that are required to be disclosed in accordance with DTR 4.2.8.

This report may contain forward looking statements with regards to the financial condition and results of the Company, which are made in the light of current economic and business circumstances. Nothing in this report should be construed as a profit forecast.

The Half-Yearly Report was approved by the Board of Directors on 18 May 2021 and the above responsibility statement was signed on its behalf by:

Tim Woodcock

Chairman

18 May 2021

The Board has overall responsibility for the Company's affairs including the determination of its investment policy. Risk is spread by investing in a number of different businesses across different industry sectors. The Investment Manager, Unicorn Asset Management Limited, is responsible for managing sector and stock specific risk and the Board does not impose formal limits in respect of such exposures. However, in order to maintain compliance with HMRC rules and to ensure that an appropriate spread of investment risk is achieved, the Board receives and reviews comprehensive reports from the Investment Manager on a monthly basis. When the Investment Manager proposes to make any investment in an unquoted company, the prior approval of the Board is required. The Board continues to take the need for transparency and independence seriously. When a conflict arises involving a relationship between any Director and an investee or proposed investee company, that Director abstains from any discussion or consideration on any such investment by the Company.

The Administrator, ISCA Administration Services Limited, provides Company Secretarial and Accountancy services to the Company.

All revenue and capital items in the above statement derive from continuing operations of the Company.

The total column of this statement is the Statement of Total Comprehensive Income of the Company prepared in accordance with Financial Reporting Standards ("FRS"). The supplementary revenue return and capital return columns are prepared in accordance with the Statement of Recommended Practice ("AIC SORP") issued in October 2019 by the Association of Investment Companies.

Other than revaluation movements arising on investments held at fair value through Profit or Loss Account, there were no differences between the profit/(loss) as stated above and at historical cost.

The notes form part of these Half-Yearly financial statements.

The financial information for the six months ended 31 March 2021 and the six months ended 31 March 2020 has not been audited.

The notes form part of these Half-Yearly financial statements.

The financial information for the six months ended 31 March 2021 and the six months ended 31 March 2020 has not been audited.

The profit and loss account comprises the revenue reserve of £40,000 and the realised capital reserve of £7,119,000.

\* The special reserve and profit and loss account are distributable to Shareholders. The special reserve is used to fund market purchases of the Company's own shares, to make distributions and to write-off existing and future losses.

The notes form part of these Half-Yearly financial statements.

The financial information for the six months ended 31 March 2021 and the six months ended 31 March 2020 has not been audited.

The notes form part of these Half-Yearly financial statements.

1. Principal accounting policies

In order to better reflect the activities of a VCT and in accordance with the SORP, supplementary information which analyses the Income Statement between items of a revenue and capital nature has been presented alongside the Statement of Comprehensive Income. The revenue column of profit attributable to Shareholders is the measure the Directors believe appropriate in assessing the Company's compliance with certain requirements set out in Section 274 Income Tax Act 2007.

All investments held by the Company are classified as "fair value through profit or loss", in accordance with FRS102. This classification is followed as the Company's business is to invest in financial assets with a view profiting from their total return in the form of capital growth and income and in accordance with the Company's risk management and investment policy. In the preparation of the valuation of assets, in accordance with current IPEV guidelines, the Directors are required to make judgements and estimates that are reasonable and incorporate their knowledge of the performance of the investee companies.

· For investments actively traded on organised financial markets, fair value is generally determined by reference to Stock Exchange market quoted bid prices at the close of business on the balance sheet date. Purchases and sales of quoted investments are recognised on the trade date where a contract of sale exists whose terms require delivery within a time frame determined by the relevant market.

· Unquoted investments are reviewed at least quarterly to ensure that the fair values are appropriately stated and are in accordance with current IPEV guidelines as updated in December 2018, which relies on subjective estimates. Fair value is established by assessing different methods of valuation, such as price of recent transaction, earnings multiples, discounted cash flows and net assets. Purchases and sales of unlisted investments are recognised when the contract for acquisition or sale becomes unconditional.

· Where a company's underperformance against plan indicates a diminution in the value of the investment, provision against cost is made, as appropriate. Where it is considered the value of an investment has fallen permanently below cost, the loss is treated as a permanent impairment and as a realised loss, even though the investment is still held. The Board assesses the portfolio for such investments and, after agreement with the Investment Manager, will agree the values that represent the extent to which an investment loss has become realised. This is based upon an assessment of objective evidence of that investment's future prospects, to determine whether there is potential for the investment to recover in value.

· Redemption premiums on loan stock investments are recognised at fair value when the Company receives the right to the premium and when considered recoverable.

f) Capital reserves

(i) Realised (included within the Profit and Loss Account reserve)

The following are accounted for in this reserve:

• Gains and losses on realisation of investments;

• Permanent diminution in value of investments; and

• Transaction costs incurred in the acquisition of investments.

(ii) Unrealised capital reserve (Revaluation reserve)

Increases and decreases in the valuation of investments held at the period end are accounted for in this reserve, except to the extent that the diminution is deemed permanent.

In accordance with stating all investments at fair value through profit or loss, all such movements through both unrealised and realised capital reserves are shown within the Income Statement for the period.

(iii) Special reserve

The costs of share buybacks are charged to this reserve. In addition, any realised losses on the sale of investments, and 75% of the management fee expense, and the related tax effect, are transferred from the Profit and Loss Account reserve to this reserve. This reserve can also be used for distributions made by the Company.

2. Investment Management Fees

Unicorn Asset Management Limited ("UAML") receives an annual management fee, calculated and payable quarterly in arrears, of 2.0% of the net asset value of the Company, excluding the value of the investments in the OEICs which are also managed by UAML, up to net assets of £200 million and 1.5% of net assets in excess of £200 million. If the Company raises further funds during a quarter the net asset value for that quarter shall be reduced by an amount equal to the amount raised, net of costs, multiplied by the percentage of days in that quarter prior to the funds being raised.

The Directors have charged £2,126,000 being 75% of the investment management fees to the capital reserve and the balance of 25% being £709,000 to revenue.

At 31 March 2021, £1,498,000 payable to the Investment Manager is included in creditors due within one year.

3. Taxation

The total allowable expenses exceed income hence there is no tax charge for the period.

4. Income

5. Basic and diluted earnings and return per share

There are no instruments in place that may increase the number of shares in issue in the future. Accordingly, the above figures represent both basic and diluted earnings per share.

6. Dividends

* The difference between total dividends paid and that shown in the Condensed Cash Flow Statement is £391,000, which is the amount of dividends reinvested under the Dividend Reinvestment Scheme ("DRIS"). To arrive at the movement of £376,000 shown in the Condensed Statement of Changes in Equity, expenses of £15,000 have been deducted.

7. Investments at fair value

\* Transaction costs on the purchase and disposal of investments of £10,000 were incurred in the period. These are excluded from realised gains shown above of £3,616,000 but were included in arriving at gains on realisations of investments disclosed in the Condensed Income Statement of £3,606,000.

Reconciliation of cash movements in investment transactions

The difference between the sales in Note 7 and that shown in the Condensed Cash Flow Statement. is £524,000 which is the result of outstanding trades at 30 September 2020.The difference between purchases per Note 7 above and that shown in the Condensed Cash Flow Statement is £12,000, which is the reinvested dividends in the Unicorn Ethical Fund.

Fair value hierarchy

The table below sets out fair value measurements using FRS 102 s11.27 fair value hierarchy. The Company has one class of assets, being at fair value through profit or loss.

There are currently no financial liabilities at fair value through profit or loss.

Categorisation within the hierarchy has been determined on the lowest level input that is significant to the fair value measurement of the relevant asset as follows:

Level 1 - valued using quoted prices in active markets for identical assets.

Level 2 - valuation by reference to valuation techniques using directly observable inputs other than quoted prices included within Level 1.

Level 3 - valued by reference to valuation techniques using inputs that are not based on observable market data.

The valuation techniques used by the Company are explained in the accounting policies in Note 1.

The fair value of unquoted investments, categorised as Level 3, is established by assessing different methods of valuation, such as price of recent transaction, earnings multiples, discounted cash flows and net assets, therefore no assumptions are disclosed or sensitivity analysis provided.

A transfer of £1,301,000 has been made from Level 1 to Level 3 in the period in respect of investments delisted from AIM, as detailed below.

A reconciliation of fair value measurements in Level 3 is set out below:

The transfer into Level 3 relates to HML Holdings which delisted during the period and was subsequently sold under a tender offer.

8. Net asset values

9. Post Balance Sheet Events

On 8 April 2021, the Company allotted and issued 1,129,286 Ordinary shares representing approximately 0.8% of the share capital at prices ranging from 237.44 pence per share to 238.15 pence per share, raising net funds of £2,621,000 from gross subscriptions of £2,684,000.

10. Related party transactions

During the first six months of the financial year, no transactions with related parties have taken place which have materially affected the financial position or the performance of the Company.

11. Copies of this statement are being sent to Shareholders.

Further copies are available free of charge from the Company Secretary, ISCA Administration Services Limited on 01392 487056, email: unicornaimvct@iscaadmin.co.uk, or from the Company's website: www.unicornaimvct.co.uk.

Neither the contents of the Company's website nor the contents of any website accessible from hyperlinks on this announcement (or any other website) is incorporated into, or forms part of this announcement.

A copy of the 2021 Half Yearly Report will be submitted shortly to the National Storage Mechanism ("NSM") and will be available for inspection at the NSM, which is situated at:

https://data.fca.org.uk/#/nsm/nationalstoragemechanism