Annual Financial Report

Unicorn AIM VCT plc ("the Company")

Annual financial report announcement for the year ended 30 September 2011

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 maximising the stream of dividend distributions to
Shareholders from the income and 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 70% of the Company's
total assets are to be invested in qualifying investments of which 30% by value
must be in ordinary shares carrying no preferential rights to dividends or
return of capital and no rights to redemption.

Investment Policy

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
   
  * good cash generation to finance ongoing development allied with a
    progressive dividend policy.
   
Asset allocation and risk diversification policies, including maximum
exposures, are to an extent governed by prevailing VCT legislation. Specific
conditions for HMRC approval of VCTs include the requirement that no single
holding may represent more than 15% (by value) of the Company's total
investments and cash, at the date of investment.

The Investment Manager 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 and the Administrator
on a monthly basis. When the Investment Manager proposes to make an investment
in an unquoted company, the prior approval of the Board is required.

Where capital is available for investment while awaiting suitable VCT
qualifying opportunities, or in excess of the 70% VCT qualification threshold,
it may be invested in collective investment funds or in non-qualifying shares
and securities in smaller listed UK companies.

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.

Chairman's Statement

I am pleased to present the tenth Annual Report of the Company for the
financial year ended 30 September 2011.

The period under review has been one of modest progress for your Company
despite a progressively deteriorating economic outlook, the consequences of
which were evident in very weak equity markets towards the end of the financial
year.

Audited net asset value per share as at 30 September 2011 was 103.34 pence per
share and the total return for the financial year, after adding back dividends
paid, was 3.1%. During the same period the FTSE All-Share Index lost 4.4% on a
total return basis, whilst the FTSE AIM All-Share Index declined by 9.8%.

The Company remains the largest AIM focused VCT in the market, with audited net
assets as at 30 September 2011 of £60.45m.

As anticipated at the time of the merger with Unicorn AIM VCT II plc, which was
completed in March 2010, the total running costs of the Company reduced during
the period. Total cost savings amount to approximately £350,000 this year
compared to the last full financial year for each VCT before they were merged.
As a result, the total expense ratio remains low by industry standards at 2.69%
of total assets.

The Board continues to buy back shares for cancellation from time to time. A
total of 4.3m shares were purchased for cancellation during the course of the
year at an average price of 97 pence per share. These shares were purchased at
a discount to net assets of between 10% and 20%.

Dividend payments of 4 pence per share totalling £2.38m were made to
shareholders in respect of the year ended 30 September 2011 on 14 January 2011.

During the year a total of £3.3m (net of expenses) was raised under an Offer
for Subscription which closed on 30 June 2011. I would like to take this
opportunity to welcome all new shareholders and to thank our existing
shareholders for their continued support.

The year under review started positively for both the Company and for equity
markets generally as corporate profitability improved and developed economies
appeared to be generating economic growth, however modest. Between October 2010
and early May 2011, the FTSE All-Share Index appreciated by just over 10%, and
the net asset value of the Company increased by a similar amount.

As summer progressed, however, concerns over the sustainability of global
economic recovery began to re-emerge. The continuing sovereign debt crisis in
the Eurozone, exceptionally high levels of borrowing in the US and signs of
slowdown in emerging market economies have all contributed to a heightened
sense of uncertainty. The problems caused by excessive levels of debt continue
to affect all major global economies. The continued absence of a credible,
coherent and politically acceptable financial rescue plan for the Greek economy
is of particular concern and has been a notable contributor to the weak
performance of equity markets in recent months

At the time of writing, the threat that Greece might default on its sovereign
debt obligations remains, despite several rounds of financial support from the
European Central Bank and the International Monetary Fund. The almost
inevitable consequence of such a default would be to trigger a domino effect
amongst the other financially weak members of the European Union, which in turn
could exacerbate the liquidity position of the major European banks.

Between the start of July and the end of September 2011, the FTSE All-Share
Index lost more than 13% in value, whilst the FTSE AIM All-Share Index fell by
over 18%, wiping out all the gains made in the previous three quarters of the
period under review. The declines in Europe were even more extreme, with the
main German and French stock indices down by more than 28%. It therefore gives
me some comfort to report that the performance of the investment portfolio has
been relatively resilient in the face of this market turmoil, with net assets
falling by 9.2% over the same three month period.

The uncertain economic environment combined with increasingly volatile market
conditions meant that it was a quiet year for Initial Public Offerings with
only 78 UK companies listing on AIM in the 12 month period to 30 September
2011, of which relatively few were VCT qualifying. This compares with a peak of
almost 400 admissions during 2005. Our Investment Manager maintains a highly
selective approach to new investments and participated in four VCT qualifying
opportunities in the period. Of these new investments, two were in companies
new to AIM, whilst the other two took the form of secondary placings. In
addition to these new investments, four qualifying follow-on investments were
made in companies in which the Company already held a stake.

In terms of disposals, M & A activity resulted in three qualifying companies
being sold, and a partial disposal was made of Abcam through a series of
secondary market trades.

The non-qualifying portfolio continued to develop during the year with the
Investment Manager making ten new investments, three follow-on investments,
seven outright disposals and a number of partial disposals. In addition, one
non-qualifying company was sold, following its acquisition by a trade buyer.

Over the twelve months to 30 September 2011 there was a net gain on investments
of £1.95 million and the total gain on ordinary activities after taxation was £
1.41 million, the equivalent of 2.37 pence per share. The profit on the revenue
account was £288,000. At the financial year end, the qualifying portfolio
consisted of 55 holdings whilst the non-qualifying portfolio had grown to 33.
The Company remains comfortably above one of the key thresholds required by
HMRC, whereby 70% of total assets must be invested in VCT qualifying companies.
At the financial year end, the Company held 77.4% (reflecting the tax value of
investments as defined in the tax legislation), of its total investment assets
in VCT qualifying

companies.

A detailed report on the performance of both the qualifying and the
non-qualifying portfolios is contained in the Investment Manager's Review on
pages 7 to 13 in the Annual Report and Accounts ("Annual Report").

The Board remains committed to a policy of maximising the stream of dividend
distributions to shareholders from the income and capital gains generated by
the portfolio. Since the original launch in 2001, shareholders have received in
excess of £23m in tax free dividend distributions. The Board has now considered
the payment of a final dividend for the financial year ended 30 September 2011.
Despite the relatively modest income and capital gains made during the year,
your Company retains significant distributable reserves and taking this into
account, the Board is pleased to recommend a dividend of 5 pence per share.

Finally, it is worth noting that your Investment Manager has this year been
recognised by the wider investment community, winning five investment
performance awards across a range of funds, whilst being shortlisted for a
further three. It is particularly pleasing to report that Unicorn Asset
Management was named `VCT Manager of the Year' at the 2011 Growth Company
Awards, whilst Unicorn AIM VCT was awarded `Best Venture Capital Trust' by What
Investment Magazine. The awards were based on an assessment of net asset value
performance over three and five year time periods respectively and are an
encouraging endorsement of the Unicorn team's conservative, disciplined and
long-term approach to investment management. I look forward to being able to
report on further progress in due course, hopefully when the wider fears
surrounding sovereign debt and global economic slowdown have begun to ease.

Peter Dicks
Chairman
15 December 2011

Directors' Responsibilities Statement

The Directors confirm to the best of their knowledge that:

(a) that the financial statements, which have been prepared in accordance with
UK Generally Accepted Accounting Practice and the 2009 Statement of Recommended
Practice, `Financial Statements of Investment Trust Companies and Venture
Capital Trusts' give a true and fair view of the assets, liabilities, financial
position and profit or loss of the Company; and

(b) that the management report, comprising the Chairman's Statement, Investment
Manager's Review, Investment Portfolio Summary and Directors' Report includes a
fair review of the development and performance of the business and the position
of the Company, together with a description of the principal risks and
uncertainties that it faces.

Principal risks and uncertainties

The Directors review the principal risks faced by the Company as part of the
internal controls process (see the Corporate Governance Statement on page 32 in
the Annual Report for further information). The principal risks identified by
the Directors are:

  * Investment and strategic risk - Unsuitable investment strategy or stock
    selection could lead to poor returns to shareholders.
   
  * Regulatory and tax risk - The Company is subject to relevant laws and
    regulations including Companies Act 2006, Income Tax Act 2007, UK Listing
    Authority Rules and United Kingdom Accounting Standards. There is a risk
    that the Company may breach these rules and face public censure, suspension
    from the Official List and/or financial penalties. There is a risk that the
    Company may lose its VCT status under the Income Tax Act 2007 before
    shareholders have held their shares for the minimum period required to
    retain their tax reliefs. Should the Company lose its VCT status,
    shareholders may lose any upfront income tax relief they received and be
    taxed on any future dividends paid and capital gain received if they
    dispose of their shares. Inappropriate accounting policies or failure to
    comply with accounting standards could lead to misreporting or breaches of
    regulations.
   
  * Operational risk - The Company has no employees and is therefore reliant on
    third party service providers. Failure of the systems at third party
    service providers could lead to inaccurate reporting or monitoring.
    Inadequate controls could lead to the misappropriation or insecurity of
    assets.
   
  * Fraud and dishonesty risks - Fraud may occur involving company assets
    perpetrated by a third party, the Investment Manager or other service
    provider.
   
  * Financial Instruments risks - The main risks arising from the Company's
    financial instruments are due to fluctuations in the market price and
    interest rates, credit risk and liquidity risk. The Board regularly reviews
    and agrees policies for managing these risks and full details can be found
    in note 19 on pages 49 to 53 in the Annual Report.
   
  * Economic risk - Events such as recession, inflation or deflation and
    movements in interest rates could affect trading conditions for smaller
    companies and consequently the value of the Company's investments.
   
Investment Manager's Review

Investment Policy

It is the aim of the Investment Manager to identify and invest in a diversified
portfolio of companies 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
   
  * good cash generation to finance ongoing development allied with a
    progressive dividend policy.
   
Performance

The audited net assets of the Company as at 30 September 2011 totalled £60.4m,
equivalent to 103.34 pence per share. This compares with an audited net asset
per share of 104.15 pence as at 30 September 2010. After adding back dividends
paid of 4 pence per share in the period, the total return amounted to 3.1%.

Investment strategy

The policy of investing in companies which have a demonstrable record of
profitability and positive cash generation remains unchanged. The VCT
qualifying and the non-qualifying portfolios are diversified both by sector and
by number of investments held. The Company remains comfortably above the
threshold required to retain VCT qualifying status (whereby 70% of total
investment assets must be invested in VCT qualifying companies). Your
Investment Manager will continue to adopt a highly selective approach to new
investment opportunities.

Alternative Investment Market(AIM)review

UK equity markets, which had remained relatively resilient for much of the
period under review, came under severe pressure during August and September as
fears of another financial crisis eroded confidence. The FTSE AIM All-Share
Index ended the twelve months to 30 September 2011 down by 9.8% on a total
return basis, whilst the FTSE All-Share Index fell by 4.4% over the same
period. Interestingly, the worst performing sector across both indices was the
mining sector, which reacted negatively to a collapse in commodity prices.
Precious metals, including silver and gold and base metals, such as nickel and
lead all fell by around 20% from their peaks. These declines were triggered by
fears of a sharp slowdown in economic growth in China combined with increasing
fears that sovereign nations such as Greece, could default on their debt
repayment obligations thus potentially triggering another banking crisis.

As noted in previous years, the performance of the AIM Index is closely linked
to the performance of the Mining and Oil & Gas sectors, which account for over
40% of the Index by value.

Unicorn AIM VCT has had minimal exposure to Mining & Resource companies, which
in part explains the strong relative performance achieved during the financial
year under review.

The number of companies listing on AIM remains at historically low levels, with
only 55 UK and 17 International admissions in the first nine months of 2011. In
total, these companies raised £531.5m in new money, which puts 2011 on course
to be the worst year for new fundraising on AIM for almost a decade. There can
be little doubt that this paucity of transactions is a reflection of wider
economic concerns. Nonetheless, it has to be of concern that, due to a
significant increase in delistings, there are now almost a third fewer
companies listed on AIM than there were at the peak in 2007. On a positive
note, average daily volumes and average daily value of trades have recovered
quite sharply during 2011 (source: London Stock Exchange).

Qualifying investments

Despite a difficult end to the financial year, it is pleasing to report that
the majority of our VCT qualifying companies remain in good health, both
operationally and financially. Clearly, the outlook has become more uncertain
in recent months and, as a result, management teams are expressing a cautious
view on prospects. However, the fact that so many of these companies survived
the financial crisis of 2008 and the subsequent recession bodes well for their
future prospects. One of the few benefits that can result from a retrenchment
in economic activity is that capable management teams can seize the opportunity
to examine their cost base, focus on cash generation, improve productivity and
refine their approach to customer service. For those businesses that are swift
to respond to more challenging trading conditions the benefits can be
considerable and are often manifested in improved profitability, stronger
balance sheets, a more motivated workforce and greater loyalty from customers.
It is for these reasons that many of the constituents of the qualifying
portfolio performed relatively resiliently in what was a difficult year for
quoted companies generally.

A review of the main positive contributors to performance in the VCT qualifying
portfolio follows (bracketed figures represent the share price movement for the
year under review on a bid price basis):-

Abcam (+5.7%) is a global leader in the manufacture and supply of therapeutic
antibodies and protein research tools to the worldwide life science research
market. This company continues to expand. Results for the financial year ended
30 June 2011 confirmed that growth has remained strong. Annual revenues
increased by 17% to £83.3m, whilst pre-tax profits grew by 25% to £32.1m. This
company remains strongly cash generative with net cash increasing to £55.6m
(2010 - £40.2m) despite a £10m outflow to fund acquisitions and dividend
payments. Abcam shares rose by 5.7% during the period under review, once again
significantly outperforming the AIM Index. As a result, the relative weighting
of Abcam within the qualifying portfolio remains significant. In order to
mitigate this stock specific risk, further partial disposals were made during
the financial year. The net amount of these realisations was £855k and the
realised capital gain was £615k, at an average price on disposal of over £4 per
share. As at 30 September 2011, Abcam had a market capitalisation in excess of
£660m.

Animalcare (+71.8%) is a leading UK supplier of veterinary medicines,
identification and welfare products to the companion animal market. In the
twelve months to 30 June 2011, this company grew turnover by 5%, which
translated into a 21% increase in profit before tax of £3m. Although there is
currently little or no growth in the veterinary medicines market in the UK, the
Board of Animalcare believes that the business can continue to grow through
product launches and increased market share. Animalcare has launched six new
products since the beginning of July 2010 and is planning to launch a further
four drugs during its current financial year.

Avingtrans (+17.6%) designs, manufactures and supplies critical components to
the medical, energy, industrial and global aerospace sectors. Following a
difficult year in 2010, this company is now witnessing improving demand across
the majority of its markets. Global economic recovery combined with operational
efficiency improvements have resulted in a much improved financial performance.
The results for the twelve months to 31 May 2011 reflect this recovery with
turnover up 27% to £36.3m and operating profit increasing almost threefold to £
1.4m, highlighting the inherent operational gearing of the business. The Board
has also reinstated the final dividend and confirmed its commitment to pursuing
a progressive dividend policy.

Belgravium (+182.3%) designs and manufactures real-time data capture systems.
In the six month period to 30 June 2011, turnover improved by 30.5% to £4.77m
(2010 - £3.66m) generating a profit before tax of £321,000 compared to an
effective break even position during the equivalent period in 2010. It is
particularly pleasing to report a significant strengthening of the balance
sheet with net cash of £638,000 versus a net debt position of £711,000 twelve
months ago.

Cohort (+39.5%) is a technology group with three operating subsidiaries each of
which is focused on providing specialist technical products or services,
primarily to the defence market. In the financial year ended 30 April 2011,
Cohort posted revenue of £65.1m and a profit before tax of £2.7m. Having
suffered a number of significant operational issues during the past two years,
the three operating businesses now appear to have solid prospects. The order
book at this company's financial year end stood at £103.2m and this provides a
solid platform for the current financial year, despite continuing uncertainty
in the UK defence market. Cohort's businesses have strong market positions and
the Group has a solid balance sheet with net cash of £6.7m as at 30 April 2011.

Dillistone (+62.2%) is a global supplier of executive recruitment software to
the search and selection market. This company's core product is a software
system known as Filefinder, which is specifically designed to support
everything that an executive recruiter does. Filefinder is used by over 1,000
firms in more than 55 countries around the world. The recently reported interim
results for the six months ended 30 June 2011, showed revenues up 16% to £2.3m
and pre-tax profits up 8% at £551,000.

Idox (+89.4%) is a leading independent supplier of software and services to the
UK public sector and other markets. In the six month period ended 30 April
2011, Idox delivered revenue growth of 21% to £18m whilst pre-tax profit
declined 8% to £2m on higher amortisation and share option charges. This
company's net cash position improved to £4.1m despite funding four
acquisitions, increasing the dividend and paying off remaining debt early. The
interim dividend was increased by 140%, reflecting the Board's confidence in
the long term strength of the business.

Mattioli Woods (+10.9%) is a specialist pensions consultancy and wealth
management business. Mattioli Woods recently recorded a sixth consecutive year
of growth since listing on AIM in 2006. In the financial year ended 31 May 2011
revenues increased by 12.3% to £15.4m, whilst adjusted earnings per share grew
by 14.1%. Assets under administration grew by 21.7% to £2.3bn and the dividend
was increased by 13.8%.

Surgical Innovations (+186.4%), the designer and manufacturer of innovative
medical devices for minimally invasive surgery, continues to make positive
progress. In the first half of the financial year ended 30 June 2011 sales and
profits were lower on a like-for-like basis primarily because of an anticipated
reduction in business with an industrial customer. Demand for branded products
was strong however, and significant investment in people, product development
and infrastructure has therefore continued in anticipation of further growth in
2012. Current trading and customer demand across the business is reported as
being encouraging, with strong demand for its branded products as well as a
significant improvement in OEM sales.

Tangent Communications (+48.8%) is a market leading provider of technology and
digital marketing services. For the financial year ended 28 February 2011
turnover increased by 23% to £22.4m, whilst underlying operating profit
increased by 65% to £1.3m. Cash generated from operations also increased
significantly to £1.8m representing 135% of underlying operating profit.
Trading in the first half of this company's current financial year is reported
to be in line with management expectations.

Tracsis (+26.6%) is a provider of operational planning software and consultancy
services to the transport industry. In August, Tracsis reported that trading in
the second half of its financial year to 31 July 2011 was ahead of market
expectations and that the enlarged group anticipates delivering full year
revenues and profits significantly ahead of forecast, including over £1m of
revenue contribution from the acquired operations of MPEC Technology Limited
completed on 1 June 2011.

Zetar (+21.8%) is a leading manufacturer of confectionery and natural snacks
with a reputation for quality and product innovation. Financial results for the
year ended 30 April 2011 demonstrated the resilience of the business despite a
dramatic rise in commodity prices. The confectionery division achieved a record
result reflecting an increase in sales and an improved mix of higher margin
products allied to further cost efficiencies, whilst margins in the natural
snacks division improved significantly in the second half as price increases
were implemented. Overall, revenues were up marginally to £135m, whilst
earnings per share increased by 9% to 35.8 pence. Management's confidence in
the prospects for the business was reflected in the Board's decision to pay an
inaugural dividend.

Of the qualifying investments that fared less well during the year, the
majority remain in sound financial health, despite operating in particularly
challenging markets. A review of these investments follows:-

Access Intelligence (Ordinary Shares -47.4%) comprises a group of Software as a
Service (Saas) businesses that delivers compliance solutions to the public and
private sectors. This company's strategy has been to acquire growth businesses
in targeted sectors and then build value through driving organic growth and
increasing cross-selling opportunities. In the six month period to 31 May 2011,
turnover declined marginally to £4.0m (2010 - £4.1m) whilst profits before tax
fell to break-even levels. The principal cause of the decline in profitability
relates to difficulties encountered at the acquired compliance training
business, Cobent, where sales opportunities have proven slow to close in the
prevailing economic environment. A new management team has been installed at
Cobent and costs are being streamlined to bring them in line with current sales
levels. In July 2011, Access Intelligence announced the disposal of another
subsidiary, Solcara, realising cash proceeds of £2.5m. The disposal of this
business was achieved on a multiple of 3.3x Solcara's revenues for the year
ended 30 November 2010 and will therefore significantly increase Access
Intelligence's reported cash balance of £2.7m once the transaction has
completed. Importantly, Access Intelligence has also established a sizeable
customer base from which it derives recurring revenues, currently representing
65% of annual turnover.

Crawshaw Group (-59.1%) operates a chain of retail butchers in the North of
England. In its interim results for the six months to 31 July 2011, this
company reported on a particularly challenging retail climate, where rising
meat prices coupled with reduced levels of disposable income were conspiring to
depress footfall and average spend. Despite an increase in the number of
operating units, total revenues for the period were flat, whilst like for like
sales were down by 4%. As a consequence, profit before tax declined to £68,000
from £233,000 during the equivalent period in 2010.

Green Compliance (-24.3%) is a provider of water, fire and pest control services
to UK businesses nationwide. The business continues to develop positively and
has recently delivered results that were in line with expectations. However,
share price performance remains a disappointment. In the period under review
the share price fell by almost a quarter. Following a share consolidation in
August 2011, and the successful clearing of a large overhang of shares, the
share price has stabilised.

Maxima Holdings (-63.1%) is an IT business systems and managed services
company, which grew rapidly through acquisition after floating on AIM in
November 2004. The business has struggled in recent years as management
attempted a controlled migration of customers from legacy mainframe support to
new, more focused and higher margin, managed services and solutions. Following
the completion of a strategic review in September 2011, Maxima has undergone a
change of management and successfully raised £2m via an issue of equity. The
newly appointed Executive Chairman has also announced the sale of non-core
operating units. This process is to be conducted over the coming months,
following which it is to be hoped that Maxima will be well positioned to focus
on providing next generation IT managed services and solution to new and
existing customers.

Snack Time (Ordinary Shares -52.0%) is the third largest vending company in the
UK following a series of acquisitions. In an update related to trading in the
first six months of its financial year, this company reported that it was
making good progress despite the impact of high input inflation, the increase
in VAT and ongoing deterioration in consumer confidence. Snacktime has also
successfully completed a major restructuring in the period, which has resulted
in significant upfront exceptional costs. Savings from the restructuring of the
operating division began to be evident toward the end of the six month period
to 30 September 2011. These savings are expected to offset the impact of input
price inflation following the large increases in commodity prices experienced
over the last 12 months. The combination of new customer contracts and further
efficiencies means that the management of SnackTime expect to deliver margin
improvements during the second half of the financial year.

Other qualifying holdings which struggled in share price terms include Pressure
Technologies (-22.3%), Tristel (-23.1%) and Vianet, formerly Brulines (-22.5%).
Each of these businesses remains fundamentally sound, with good long term
prospects, capable management and strong balance sheets. The Investment Manager
is confident that their market valuations will recover in due course.

New qualifying investments

At the financial year end the Company held over 77% of total investment assets
in VCT qualifying businesses as calculated in accordance with HMRC tax
valuation rules. New VCT qualifying investments are only made if the companies
concerned meet the Investment Manager's clearly defined investment criteria.
During the period, four VCT qualifying companies were introduced to the
portfolio. These were:-

Accumuli (+31%) is a `buy and build' company focused on acquiring businesses
operating in the managed security services sector of the IT market. Following a
period of restructuring and management change, this company successfully
completed a fundraising in November 2010 and has since announced that it is to
acquire three businesses, all operating in the fast growing IT security sector.

Hangar 8 (-8.0%) is one of Europe's largest operators of privately owned
passenger jet aircraft. This company currently manages twenty-one jets on
behalf of their owners and charters them out to third party customers. The size
of Hangar 8's fleet today enables it to offer cost effective management fees
and attractive levels of charter income for owners, whilst providing charter
customers with a competitively priced service. This company listed on AIM in
November 2010. Final results for the 14 month period ended 30 June 2011 showed
strong growth in turnover, profitability and net cash.

Instem Life Science Systems (+27.1%) is a software company focused on the life
sciences and biotechnology markets. Instem has developed world leading software
to enable pharmaceutical companies to collect, analyse and report large volumes
of complex scientific data in an accurate and efficient manner. The business
has been consistently profitable and cash generative over recent years. This
company was admitted to AIM in October 2010 following a successful placing of
shares which raised £9m. Interim results for the six months to 30 June 2011
were in line with expectations and the outlook statement highlighted
management's confidence in delivering further growth in the current financial
year.

Omega Diagnostics (+21.08%) is an AIM-listed medical diagnostics company which
raised £7.8m from institutional investors, including Unicorn AIM VCT, in
November 2010. The proceeds of the placing have been used to fund the
acquisition of a profitable European allergy testing business. The combined
businesses now establish Omega as one of the UK's leading companies in the fast
growing areas of food intolerance and allergy testing. This company is also a
specialist in testing for infectious diseases such as Syphilis, TB, Dengue
Fever and Malaria.

In addition, four qualifying follow-on investments were made during the period
in Brady, Green Compliance, IS Pharma and Tristel.

Non-qualifying, follow-on investments were made in Dillistone, HML Holdings and
Tangent Communications.

Realisations

There were a limited number of realisations in the year to 30 September 2011.

As previously reported, the disposal of Amber Taverns was concluded in October
2010. Amber Taverns is an unquoted operator of public houses in the North West
of England which was acquired by a private equity firm following a competitive
sales process. Total cash proceeds from this disposal amounted to more than £
5.3m and were received in full in October 2010, generating a realised capital
profit of £3.3m, the majority of which was recognised as an unrealised gain in
the previous year's report and accounts.

The acquisition of Mount Engineering by Cooper Controls was also concluded
early in the financial year realising net proceeds of £351,000 and a capital
gain of £86,000.

Individual Restaurant Company was delisted in June 2011 following an offer by
management to take the business private, generating cash proceeds of £69,000
and crystallising a capital loss of £496,000.

Shieldtech, the designer and manufacturer of body armour, was placed into
administration in October 2010. The value of the holding had already been
written down to zero in last year's Report & Accounts.

The portfolio's holding in Universe Group was sold to Brookwell, a portfolio
realisation specialist, in exchange for an equivalent value of shares in
Brookwell.

Non-qualifying portfolios

Following the merger with Unicorn AIM VCT II plc in March 2010, the combined
assets of the Company remain diversified and the level of qualifying investment
was comfortably above the threshold required by HMRC to retain VCT qualifying
status at the financial year end. As a result, the process of developing the
non-qualifying portfolio has continued. During the period, ten new
non-qualifying companies were added to the portfolio. The total cost of these
investments amounted to £3.4m.

A brief description of the new holdings follows:-

ATH Resource                           Share price as at 30 September       41p
                                       2011                                    
                                                                               
ATH Resources operates surface coal mines and is one of the largest producers  
of coal in the UK, providing coal principally to the electricity supply        
industry and also the industrial and house coal markets                        

Communisis                             Share price as at 30 September       25p
                                       2011                                    
                                                                               
Communisis is a leading marketing services group, with increasing presence in  
the fast growing digital marketing segment. Communisis has successfully        
developed the capabilities necessary to deliver end to end marketing solutions 
for its clients thus helping them to efficiently deliver more effective and    
profitable communications.                                                     

IQE                                    Share price as at 30 September       24p
                                       2011                                    
                                                                               
IQE is a leading global manufacturer and supplier of advanced semiconductor    
wafers with products that cover a diverse range of applications, such as       
computers, mobile phones and photovoltaic solar devices. The technology is     
supported by innovative outsourced foundry services that allows the Group to   
provide a 'one stop shop' for the wafer needs of the world's leading           
semiconductor manufacturers.                                                   

Phoenix IT Group                       Share price as at 30 September      191p
                                       2011                                    
                                                                               
The Phoenix IT Group provides managed IT Infrastructure support services,      
including systems management, communications, remote telephone support, project
& consultancy services and business continuity.                                

SSE (Scottish & Southern Energy)       Share price as at 30 September    1,287p
                                       2011                                    
                                                                               
SSE is involved in the generation, transmission, distribution and supply of    
electricity, in the production, storage, distribution and supply of gas and in 
other energy services. Since the year end, this holding has been sold.         

Specialist Energy Group                Share price as at 30 September       43p
                                       2011                                    
                                                                               
Specialist Energy Group is a niche engineering and manufacturing group. Its    
main operating subsidiary, Hayward Tyler, is the worldwide market leader in    
boiler circulating pumps and is focused on the energy sector. The Group        
supplies pumps to energy related companies operating in sectors such as        
conventional fossil fired power generation, nuclear power generation and oil & 
gas exploration.                                                               

Stadium Group                          Share price as at 30 September      670p
                                       2011                                    
                                                                               
Stadium Electronics is a specialist contract manufacturer focused on providing 
electronic and power products to OEMs in the security, medical, transportation 
and communications sectors. Stadium operates low cost manufacturing facilities 
in the UK and China.                                                           

Staffline                              Share price as at 30 September      210p
                                       2011                                    
                                                                               
Staffline provides and manages industrial workforces with a focus on supplying 
temporary labour to the food processing, manufacturing and logistics sectors.  

Tricon                                 Share price as at 30 September       26p
                                       2011                                    
                                                                               
Tricorn is a manufacturer of specialist pipe and tubing assemblies supplying   
worldwide markets in the aerospace, energy, transportation and utilities       
sectors.                                                                       

VP (Vibroplant)                        Share price as at 30 September      229p
                                       2011                                    
                                                                               
VP is a specialist equipment rental company, engaged in the rental and sale of 
products to the civil engineering, rail, oil and gas exploration, construction,
outdoor events, and industrial markets.                                        

A number of the new non-qualifying investments have not performed as well as
anticipated in the short term. The sharp sell-off in equity markets generally
and in smaller quoted companies in particular during the final three months of
the financial year has been primarily responsible for the weaker than expected
performance from some of the new investments, rather than any particular stock
specific issues. The strategy for the non-qualifying portfolio is to build
revenue reserves by continuing to identify investment opportunities in
companies that are sensibly valued and which have an established track record
of paying dividends together with the aim of pursuing a progressive dividend
policy. Your Manager remains confident in the long term prospects for these new
investments. As at 30 September 2011 their aggregate carrying value amounted to
£2.8m.

Within the non-qualifying portfolio, the contribution to performance from the
investment in sub-funds of the Unicorn Investment Funds OEIC has remained
strong.

All five sub-funds of the Unicorn Investment Funds OEIC performed well, with
four out of five performing in the top decile of their respective asset classes
over the twelve month period ended 30 September 2011. All of the sub-funds
achieved positive total returns in the period, ranging from +1% in the
Outstanding British Companies Fund to +12% from the Unicorn Free Spirit Fund.
It is important to note that the Investment Manager's fees are based on the net
asset value of the Company excluding the value of the investments in these OEIC
Funds, as the Investment Manager earns fees from managing the OEIC funds
separately, thus ensuring there is no double charging of fees.

Prospects

The issues surrounding excessive debt continue to weigh heavily on developed
economies. It is likely that the debt reduction measures currently being
implemented, although necessary, will slow the pace of economic recovery. In
particular, the cutbacks in public sector spending are creating an almost
inevitable increase in the unemployment numbers.

There appears to be a dawning realisation that the many and serious problems
faced by most western economies cannot be solved easily or quickly. Investors
in UK equity markets have been adapting to this new and harsh reality. In
recent months, many soundly financed, well managed, quoted companies have seen
their valuations tumble as it becomes increasingly likely that sustainable
economic recovery will be elusive. However, as highlighted in previous years,
many of the British companies quoted on UK equity markets now operate on a
global scale. This geographic diversification provides some protection when the
domestic economy is struggling, whilst also presenting opportunities to
generate growth from emerging market economies. Many of the companies held in
the qualifying and non-qualifying portfolios sell their products or services on
a worldwide basis and are currently enjoying an added competitive advantage
gained from the continuing relative weakness of Sterling.

The established policy of investing in conservatively managed, sustainably
profitable businesses with strong balance sheets and healthy cashflows has
contributed to the resilient performance delivered in the year under review.
Your Investment Manager intends to retain this prudent investment approach
since, in our opinion, it provides the most effective method of delivering
superior returns over the longer term.

Following recent market turmoil, the valuation of the smaller quoted company
sector is looking increasingly attractive, even after factoring in probable
downgrades to earnings forecasts in 2012 and beyond. However, the outlook for
economic growth remains modest at best and the operating environment for many
smaller quoted companies has become more challenging in recent months. We will
therefore continue to invest selectively in this area as and when we are able
to identify VCT qualifying companies that meet our strict investment criteria
and which are available at compelling valuations. At the same time, we will aim
to develop and broaden the quality of the non-qualifying portfolio, with the
intention of meeting the objective of increasing the capital and revenue
reserves available for distribution to shareholders over the longer term.

Chris Hutchinson
Unicorn Asset Management Limited
15 December 2011

Income Statement

For the year ended 30 September 2011

                                   30 September 2011          30 September 2010

                          Notes Revenue Capital   Total  Revenue Capital  Total
                                                                               
                                  £'000   £'000   £'000    £'000   £'000  £'000
                                                                               
Net unrealised gains on     9         -     781     781        -   7,184  7,184
investments                                                                    
                                                                               
Net gains on realisation    9         -   1,170   1,170        -   1,557  1,557
of investments                                                                 
                                                                               
Income                      2     1,103       -   1,103      930       -    930
                                                                               
Investment management       3     (276)   (829) (1,105)    (195)   (585)  (780)
fees                                                                           
                                                                               
Other expenses              4     (539)       -   (539)    (539)       -  (539)
                                                                               
Merger costs                          -       -       -     (98)       -   (98)
                                                                               
                                  -----   -----   -----    -----   -----  -----
                                                                               
Profit on ordinary                  288   1,122   1,410       98   8,156  8,254
activities before                                                              
taxation                                                                       
                                                                               
Tax on profit on ordinary   6         -       -       -        -       -      -
activities                                                                     
                                                                               
                                  -----   -----   -----    -----   -----  -----
                                                                               
Profit on ordinary                  288   1,122   1,410       98   8,156  8,254
activities after taxation                                                      
for the financial year                                                         
                                                                               
                                   ====    ====    ====     ====    ====   ====
                                                                               
Basic and diluted                                                              
earnings per share:                                                            
                                                                               
Ordinary Share              8     0.48p   1.89p   2.37p    0.20p  16.57p 16.77p

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

The comparatives reported in these financial statements reflect the activities
of what were previously the Ordinary Share Fund, the S2 Share Fund and the S3
Share Fund of the Company, which were consolidated on 9 March 2010, for the
whole period. In addition, these comparative results include the transfer of
the assets and liabilities of Unicorn AIM VCT II PLC to the Company, with
effect from 9 March 2010.

There were no other recognised gains or losses in the year.

The total column of this statement is the profit and loss account of the
Company.

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

The notes below form part of these financial statements.

Balance sheet

as at 30 September 2011

                                     30 September 2011        30 September 2010

                         Notes       £'000       £'000         £'000      £'000
                                                                               
Non-current assets                                                             
                                                                               
Investments at fair                             59,563                   61,432
value                                                                          
                                                                               
Current assets                                                                 
                                                                               
Debtors and prepayments                177                       452           
                                                                               
Current investments                    779                       375           
                                                                               
Cash at bank                           650                       349           
                                                                               
                                      ----                      ----           
                                                                               
                                     1,606                     1,176           
                                                                               
Creditors: amounts                   (722)                     (329)           
falling due within one                                                         
year                                                                           
                                                                               
                                      ----        ----          ----       ----
                                                                               
Net current assets                                 884                      847
                                                                               
                                                  ----                     ----
                                                                               
Net assets                                      60,447                   62,279
                                                                               
                                                  ====                     ====
                                                                               
Capital                                                                        
                                                                               
Called up share capital                            585                      598
                                                                               
Capital redemption                                 283                      240
reserve                                                                        
                                                                               
Share premium account                           28,422                   25,143
                                                                               
Revaluation reserve                              2,685                    5,955
                                                                               
Special distributable                           18,838                   24,263
reserve                                                                        
                                                                               
Profit and loss account                          9,634                    6,080
                                                                               
                                                  ----                     ----
                                                                               
Equity shareholders'                            60,447                   62,279
funds                                                                          
                                                                               
                                                  ====                     ====
                                                                               
Net asset value per                                                            
share of 1 pence each:                                                         
                                                                               
Ordinary Shares                                103.34p                  104.15p

The notes below form part of these financial statements.

Cash flow statement

For the year ended 30 September 2011

                                       30 September 2011     30 September 2010

                               Notes      £'000    £'000        £'000    £'000
                                                                              
Operating activities                                                          
                                                                              
Investment income received                1,306                   708         
                                                                              
Other income received                        50                    50         
                                                                              
Investment management fees              (1,106)                 (743)         
paid                                                                          
                                                                              
Other cash payments                       (781)                 (655)         
                                                                              
Payment of merger costs of                    -                 (120)         
the company                                                                   
                                                                              
                                           ----     ----         ----     ----
                                                                              
Net cash outflow from                              (531)                 (760)
operating activities                                                          
                                                                              
Investing activities                                                          
                                                                              
Purchase of investments                 (7,834)               (8,128)         
                                                                              
Sale of investments                      11,817                 6,002         
                                                                              
                                           ----     ----         ----     ----
                                                                              
                                                   3,983               (2,126)
                                                                              
Equity dividends                                                              
                                                                              
Equity dividends paid to                         (2,378)               (1,418)
Unicorn AIM VCT plc                                                           
shareholders                                                                  
                                                                              
Equity dividends paid in                               -               (1,353)
respect of dividends declared                                                 
to Unicorn AIM VCT II plc                                                     
shareholders but not paid                                                     
before assets and liabilities                                                 
were transferred to Unicorn                                                   
AIM VCT plc                                                                   
                                                                              
                                                    ----                  ----
                                                                              
Net cash (outflow)/inflow                          1,074               (5,657)
before financing and liquid                                                   
resource management                                                           
                                                                              
Financing                                                                     
                                                                              
Cash received on acquisition                  -                 3,736         
of net assets from Unicorn                                                    
AIM VCT II plc                                                                
                                                                              
Stamp duty on shares issued                   -                  (98)         
to acquire net assets of                                                      
Unicorn AIM VCT II plc                                                        
                                                                              
Payments to meet merger costs                 -                 (170)         
of Unicorn AIM VCT II plc                                                     
                                                                              
Share capital raised                      3,309                               
                                                                              
Share capital bought back               (3,678)               (1,365)         
                                                                              
                                           ----     ----         ----     ----
                                                                              
                                                   (369)                 2,103
                                                                              
Management of liquid                                                          
resources                                                                     
                                                                              
(Increase)/Decrease in                             (404)                 3,537
current investments                                                           
                                                                              
                                                    ----                  ----
                                                                              
Net (decrease)/increase in                           301                  (17)
cash                                                                          
                                                                              
                                                    ====                  ====

Reconciliation of movements in Shareholders' funds

for the year ended 30 September 2011

                                          30 September 2011   30 September 2010
                                                                               
                                   Notes              £'000               £'000
                                                                               
As at 1 October 2010                                 62,279              32,138
                                                                               
Net share capital bought back in                    (4,173)             (1,267)
the year                                                                       
                                                                               
Net share capital raised                              3,309                   -
                                                                               
Profit for the year                                   1,410               8,254
                                                                               
Dividends paid                                      (2,378)             (1,418)
                                                                               
Shares issued upon acquisition                            -              24,670
of assets and liabilities from                                                 
Unicorn AIM VCT II plc                                                         
                                                                               
Stamp duty on shares issued                               -                (98)
                                                                               
                                                       ----                ----
                                                                               
Closing Shareholders' funds at                       60,447              62,279
30 September 2011                                                              
                                                                               
                                                       ====                ====

Notes to the accounts

For the year ended 30 September 2011

1 Accounting policies

A summary of the principal accounting policies, all of which have been applied
consistently throughout the year, is set out below:

a) Basis of accounting

The accounts have been prepared under UK Generally Accepted Accounting Practice
(UK GAAP) and the Statement of Recommended Practice, `Financial Statements of
Investment Trust Companies and Venture Capital Trusts' ("the SORP") issued by
the Association of Investment Companies in January 2009.

The comparatives reported in these financial statements reflect the activities
of what were previously the Ordinary Share Fund, the S2 Share Fund and the S3
Share Fund of the Company, which were consolidated on 9 March 2010, for the
whole period. In addition, these comparative results include the transfer of
the assets and liabilities of Unicorn AIM VCT II PLC to the Company, with
effect from 9 March 2010.

As a result of the Directors' decision to distribute capital profits by way of
a dividend, the Company revoked its investment company status as defined under
section 266(3) of the Companies Act 1985, on 17 August 2004.

b) Presentation of the Income Statement

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 Income
Statement. The revenue column of the 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.

c) Investments

All investments held by the Company are classified as "fair value through
profit and loss", in accordance with the International Private Equity and
Venture Capital Valuation ("IPEVCV") guidelines, as updated in September 2009.
This classification is followed as the Company's business is to invest in
financial assets with a view to profiting from their total return in the form
of capital growth and income.

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. Purchases and sales of unlisted investments are recognised when the
contract for acquisition or sale becomes unconditional.

Unquoted investments are stated at fair value by the Directors in accordance
with the following rules, which are consistent with the IPEVCV guidelines:

All unquoted investments are held at the price of a recent investment for an
appropriate period where there is considered to have been no change in fair
value. Where such a basis is no longer considered appropriate, the following
factors will be considered:

 i. Where a value is indicated by a material arms-length transaction by an
    independent third party in the shares of a company, this value will be
    used.
   
ii. In the absence of i), and depending upon both the subsequent trading
    performance and investment structure of an investee company, the valuation
    basis will usually move to either:-
   
 a. an earnings multiple basis. The shares may be valued by applying a suitable
    price-earnings ratio to that company's historic, current or forecast
    post-tax earnings before interest and amortisation (the ratio used being
    based on a comparable sector but the resulting value being adjusted to
    reflect points of difference identified by the Investment Manager compared
    to the sector including, inter alia, a lack of marketability).
   
or:-

 b. where a company's underperformance against plan indicates a diminution in
    the value of the investment, provision against cost is made, as
    appropriate. Where 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.
   
iii. Premiums on loan stock investments are accrued at fair value when the
    Company receives the right to the premium and when considered recoverable.
   
iv. Where an earnings multiple or cost less impairment basis is not appropriate
    and overriding factors apply, discounted cash flow or net asset valuation
    bases may be applied.
   
d) Income

Dividends receivable on quoted equity shares are brought into account on the
ex-dividend date. Dividends receivable on unquoted equity shares are brought
into account when the Company's right to receive payment is established and
there is no reasonable doubt that payment will be received. Fixed returns on
non-equity shares are recognised on a time apportioned basis so as to reflect
the effective interest rate, provided there is no reasonable doubt that payment
will be received in due course. Fixed returns on debt securities are recognised
on a time-apportioned basis so as to reflect the effective yield.

e) 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;
   
  * Transaction costs incurred in the acquisition of investments; and
   
  * 75% of management fee expense, together with the related tax effect to this
    reserve in accordance with the policies.
   
ii. Revaluation reserve (Unrealised capital reserve)
   
Increases and decreases in the valuation of investments held at the year-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 and
loss, all such movements through both revaluation and realised capital reserves
are shown within the Income Statement for the year.

iii. Special distributable reserve
   
The cost 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.

f) Expenses

All expenses are accounted for on an accruals basis. Expenses are charged
wholly to revenue, with the exception of expenses incidental to the acquisition
or disposal of an investment, which are charged to capital, and with the
further exception that 75% of the fees payable to the Investment Manager are
charged against capital. This is in line with the allocation followed by most
other VCTs. IFA trail commission is expensed in the period in which it is
incurred.

g) Taxation

Deferred tax is recognised in respect of all timing differences that have
originated but not reversed at the balance sheet date where transactions or
events that result in an obligation to pay more tax in the future or a right to
pay less tax in the future have occurred at the balance sheet date. Timing
differences are differences between the Company's taxable profits and its
results as stated in the financial statements that arise from the inclusion of
gains and losses in the tax assessments in periods different from those in
which they are recognised in the financial statements.

Deferred tax is measured at the average tax rates that are expected to apply in
the years in which the timing differences are expected to reverse based on tax
rates and laws that have been enacted or substantially enacted at the balance
sheet date. Deferred tax is measured on a non-discounted basis.

A deferred tax asset is recognised only to the extent that it is more likely
than not that future taxable profits will be available against which the asset
can be utilised.

Any tax relief obtained in respect of management fees allocated to capital is
reflected in the capital reserve - realised and a corresponding amount is
charged against revenue. The tax relief is the amount by which corporation tax
payable is reduced as a result of these capital expenses.

h) Liquid resources

Liquid resources are the current investments disclosed in note 12, regarded as
available for investment, rather than to meet the Company's running expenses,
as at the year-end.

2. Income

                                                              2011        2010
                                                                              
                                                             £'000       £'000
                                                                              
Interest receivable                                                           
                                                                              
- from bank deposits                                             -           -
                                                                              
                                                              ----        ----
                                                                              
                                                                 -           -
                                                                              
Income from investments                                                       
                                                                              
- from equities                                                906         595
                                                                              
- from loan stocks                                             106         194
                                                                              
- from money-market funds and Unicorn managed OEICs             91          85
                                                                              
                                                              ----        ----
                                                                              
                                                             1,103         874
                                                                              
Other income                                                     -          56
                                                                              
                                                              ----        ----
                                                                              
Total income                                                 1,103         930
                                                                              
                                                              ====        ====
                                                                              
Total income comprises                                                        
                                                                              
Dividends                                                      997         680
                                                                              
Interest                                                       106         194
                                                                              
Other income                                                     -          56
                                                                              
                                                              ----        ----
                                                                              
                                                             1,103         930
                                                                              
Income from investments comprises                                             
                                                                              
Listed UK securities                                           222         131
                                                                              
Listed Overseas securities                                       6          15
                                                                              
Unlisted UK securities                                         875         728
                                                                              
                                                              ----        ----
                                                                              
                                                             1,103         874
                                                                              
                                                              ====        ====

3. Taxation

                                                             2011          2010
                                                                               
                                                            £'000         £'000

Taxation on ordinary activities                                 -             -

                                                               2011        2010
                                                                               
                                                              £'000       £'000
                                                                               
a) Analysis of tax charge in the year                                          
                                                                               
-current and total tax charge (note 6b)                           -           -
                                                                               
b) Factors affecting tax charge for the year:                                  
                                                                               
Profit on ordinary activities before tax                      1,410       8,254
                                                                               
Profit on ordinary activities multiplied by standard small      289       1,733
profits rate of corporation tax in the UK of 20.5% (2010:                      
21%)                                                                           
                                                                               
Non-taxable UK dividend income                                (203)       (122)
                                                                               
Non-taxable unrealised (gains)/losses                         (160)     (1,509)
                                                                               
Non-taxable realised gains                                    (240)       (327)
                                                                               
Allowable expense not charged to revenue                        170         123
                                                                               
Disallowable expenses                                             2           -
                                                                               
Losses carried forward                                          142         102
                                                                               
                                                               ----        ----
                                                                               
Actual current charge - revenue                                   -           -
                                                                               
Impact of allowable expenditure credited to capital           (170)       (123)
reserve                                                                        
                                                                               
Additional losses carried forward to future years               170         123
                                                                               
                                                               ----        ----
                                                                               
Actual current charge - capital                                   -           -
                                                                               
                                                               ----        ----
                                                                               
Current tax charge for the year                                   -           -
                                                                               
                                                               ====        ====

Tax relief relating to investment management fees is allocated between Revenue
and Capital in the same proportion as such fees.

There is no taxation in relation to capital gains or losses. Due to the
Company's status as a Venture Capital Trust, and the intention to continue
meeting the conditions required to obtain approval in the foreseeable future,
the Company has not provided deferred tax on any capital gains and losses
arising on the revaluation or disposal of investments.

No deferred tax asset has been recognised on surplus management expenses
carried forward. At present it is not envisaged that any tax will be recovered
in the foreseeable future. The deferred tax amount not recognised is £1,878,000
(30 September 2010: £1,647,000).

4. Dividends

                                                              2011        2010
                                                                              
                                                             £'000       £'000
                                                                              
Amounts recognised as                                                         
distributions to equity                                                       
holders in the year:                                                          
                                                                              
Ordinary Share Fund                                                           
                                                                              
Final capital of 4p per share                                2,378           -
for the year ended 30                                                         
September 2010 paid on 14                                                     
January 2011                                                                  
                                                                              
Ordinary Fund (up until 9                                                     
March 2010)                                                                   
                                                                              
Interim capital dividend of                                      -       1,058
3.5p per Ordinary Share for                                                   
the year ended 30 September                                                   
2009 paid on 29th January                                                     
2010                                                                          
                                                                              
S2 Fund                                                                       
                                                                              
Interim capital dividend of                                      -         360
2.5p per S2 Share for the                                                     
year ended 30 September 2009                                                  
paid on 29th January 2010                                                     
                                                                              
                                                              ----        ----
                                                                              
                                                                50       1,418
                                                                              
                                                              ====        ====

Any proposed final dividend is subject to approval by shareholders at the
Annual General Meeting and has not been included as a liability in these
financial statements.

Set out below are the total income dividends payable in respect of the
financial year, which is the basis on which the requirements of Section 274 of
the Income Tax Act 2007 are considered.

                                                           2011           2010
                                                                              
                                                          £'000          £'000
                                                                              
Revenue available for distribution by way of                288             98
dividends for the year                                                        
                                                                              
Proposed final dividend of 0.75p (2010:£nil) for            439            Nil
the year ended 30 September 2011                                              

5. Basic and diluted earnings and return per share

                                                            2011          2010
                                                                              
                                                           £'000         £'000
                                                                              
Total earnings after                                       1,410         8,254
taxation:                                                                     
                                                                              
                                                            ----          ----
                                                                              
Basic and diluted earnings                                 2.37p        16.77p
per share (note a)                                                            
                                                                              
Net revenue from ordinary                                    288            98
activities after taxation                                                     
                                                                              
                                                            ----          ----
                                                                              
Revenue earnings per share                                 0.48p         0.20p
(note b)                                                                      
                                                                              
Net unrealised capital                                       781         7,184
gains                                                                         
                                                                              
Net realised capital gains                                 1,170         1,557
                                                                              
Capital expenses (net of                                   (829)         (585)
taxation)                                                                     
                                                                              
Total capital return                                       1,122         8,156
                                                                              
                                                            ----          ----
                                                                              
Capital earnings per share                                 1.89p        16.57p
(note c)                                                                      
                                                                              
Weighted average number of                            59,414,982    49,209,889
shares in issue in the year*                                                                             

Notes

 a. Basic and diluted earnings per share is total earnings after taxation
    divided by the weighted average number of shares in issue.
   
 b. b) Revenue earnings per share is net revenue after taxation divided by the
    weighted average number of shares in issue.
   
 c. Capital earnings per share is total capital return divided by the weighted
    average number of shares in issue.
   
There are no instruments in place that will increase the number of shares in
issue in future. Accordingly, the above figures currently represent both basic
and diluted returns.

6. Current investments

These comprise investments in two Dublin based OEIC money market funds, managed
by Royal Bank of Scotland and Blackrock Investment Management UK Limited and
one UK based OEIC, managed by Prime Rate Capital Management. All of these funds
of £779,000 (30 September 2010: £375,000) are subject to same day access. These
sums are regarded as monies held pending investment.

7. Net asset values

                                                   2011                 2010
                                                                            
                                                  £'000                £'000
                                                                            
Net Assets                                       60,447               62,279
                                                                            
Number of shares in issue                    58,492,674           59,795,232
                                                                            
                                                   ----                 ----
                                                                            
Net asset value per share                       103.34p              104.15p

8. Related party transactions

Under the terms of the previous agreement dated 1 October 2001, and the amended
agreement dated 9 March 2010, the Company has appointed UAML to be the
Investment Manager. The fee arrangements for these services and the fees
payable are set out in note 3. UAML also received a fee of £188,000 for acting
as promoter to the company (2010: £nil).

9. Commitments

At the year end, the Company had made no further commitments to invest.

10. Non-statutory accounts

These are not full accounts in terms of section 434 of the Companies Act 2006.
The Annual Report for the year to 30 September 2011 will be sent to
shareholders shortly and will then be available for inspection at One Vine
Street, London W1J 0AH, the registered office of the Company. Copies of the
Annual Report will shortly be available on the Company Secretary's and the
Investment Manager's websites, details of which can be found at 
www.unicornaimvct.com. Statutory accounts will be delivered to the Registrar of
Companies after the Annual General Meeting. The audited accounts for the year
ended 30 September 2011 contain an unqualified audit report.

11. Annual general meeting

The Annual General Meeting of the Company will be held at 10.30 am on 7 January
2011 at One Vine Street, London W1J 0AH.

DISCLAIMER

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

Contact details for further enquiries:

Chris Hutchinson of Unicorn Asset Management Limited (the Investment Manager),
on 020 7253 0889.

Rob Brittain of Matrix-Securities Limited (the Company Secretary) on 020 3206
7000 or by e-mail on [e-mail].

ENDS