Annual Financial Report

Unicorn AIM VCT plc (the "Company" or the "VCT")

Annual Results Announcement for the year ended 30 September 2012

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.

VENTURE CAPITAL TRUST STATUS

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

KEY DATA

As at 30 September 2012

Ordinary Shares      Net assets    Net asset Cumulative*       NAV total   Share price
                                   value per   dividends       return to           (p)
                    (£ million)  share (NAV)    paid per    shareholders
                                         (p)   share (p)  since launch**
                                                           per share (p)

30th September 2012        59.0        102.3        10.0           112.3          86.0
31st March 2012            56.6         97.4        10.0           107.4          70.0
30th September 2011        60.4        103.3         5.0           108.3          86.3
31st March 2011            64.6        109.5         5.0           114.5          97.5

*The Board has recommended a dividend of 5p per share for the year ended 30
September 2012.. If approved by shareholders, this payment will bring total
dividends paid since launch to 15p per share.

** Launch of the S3 shares on 22 February 2007.

The majority of shareholders in the Company originally invested in
one of the five former share classes of either the Company and/or Unicorn AIM
VCT II plc. As a result of the merger of all five former share classes in
March 2010, all shareholders now only hold Ordinary shares. These were
formerly called S3 shares. To enable such shareholders in each former share
class to monitor the performance of their original investment, the tables
below show the NAV total return at 30 September 2012 for a shareholder that
invested £10,000 at £1 per share at the date of launch of a particular
fundraising, excluding any initial income tax relief received:

Unicorn AIM VCT plc Funds

Share class and year of fundraising      No. of   NAV at 30  Dividends   Dividends    NAV
                                    shares held   September       paid        paid  total
                                    post merger        2012 pre-merger post-merger return
                                                      (£)          (£)         (£)    (£)
                                                                                   
Ordinary Shares (raised in 2011,          8,620       8,822        n/a         431 9,253*
issued at average price of 116p)
Ordinary Shares (formerly S3 Shares      10,000      10,234        100         900 11,234
raised in 2006/07)
Former Funds:
Original Ordinary Shares (raised in       6,078       6,220      4,550         547 11,317
2001)
Original Ordinary Shares 2007/08          8,442       8,640        903         760 10,303
top-up (13,890 shares issued for
£10,000 investment at 72p per
share)
Series 2 Shares (raised in 2004)          7,750       7,932      2,125         698 10,755
Series 2 Shares 2007/08 top-up            8,424       8,622        489         758  9,869
(10,870 shares issued for £10,000
investment at 92p per share)
*This shortfall under the representative £10,000 is substantially attributable
to the impact of the initial costs of the Offer of 5.5%

Former Unicorn AIM VCT II plc Funds

Share class and year of fundraising  No. shares   NAV at 30  Dividends   Dividends    NAV
                                      held post   September       paid        paid  total
                                         merger        2012 pre-merger post-merger return
                                                        (£)        (£)         (£)    (£)
                                                        
Ordinary Shares (raised in 2005)          8,283       8,477      1,300         745 10,522
Ordinary Shares 2007/08 top-up            8,452       8,650      1,225         761 10,636
(10,205 shares issued for £10,000
investment at 98p per share)
C Shares (raised in 2006)                 7,267       7,437        245         654  8,336
C Shares 2007/08 top-up (11,235           8,165       8,356        169         735  9,260
shares issued for £10,000
investment at 89p per share)
Initial income tax relief of up to 20% was available for
shareholders that invested in tax years 2001/2002 to 2003/2004, 40% for
shareholders that invested in 2004/2005 and 2005/2006 and 30% for shareholders
that invested in tax years since 2006/2007. Additional capital gains tax
deferral relief was also available for shareholders that invested between
2001/2002 and 2003/2004.

Dividends history

The graph can be found on page 2 of the Annual Report and Accounts
for the year ended 30 September 2012 ("Annual Report").

Dividend paid

                                                            Unicorn
                         Ordinary      Original              VCT II
                    (formerly S3)      Ordinary            Ordinary   Unicorn VCT
Financial year paid        Shares        Shares S2 Shares    Shares   II C Shares
                            pence         pence     pence     pence         pence

2012*                        5.00         3.04*     3.88*     4.14*         3.63*
2011*                        4.00         2.43*     3.10*     3.31*         2.91*
2010                            -          3.50      2.50      6.00          0.45
2009                         1.00          3.00      2.00      1.00             -
2008                            -             -      5.00      5.00          1.00
2007                            -         12.55     10.00      0.50          1.00
2006                            -         10.00      1.00      0.50             -
2005                            -          5.00      0.75         -             -
2004                            -         10.45         -         -             -
2003                            -          1.00         -         -             -
 
                            10.00         50.97     28.23     20.45          8.99

Merger conversion ratio** 1.00000000 0.60781764 0.77503076 0.82830102 0.72677686
* The dividends in 2011 and 2012 on the Ordinary (formerly S3) shares are also
shown for each of the former share classes, calculated in proportion to the
merger conversion ratios shown at the foot of the table above.

** The merger conversion ratio was applied at the date of the merger on 8
March 2010, to calculate entitlement to the new Ordinary shares.

CHAIRMAN'S STATEMENT

I am pleased to present the eleventh Annual Report of the Company
for the financial year ended 30 September 2012.

Investment Performance Review

At the financial year end, the audited Net Asset Value of the
Company was 102.3 pence per share, while audited net assets as at 30 September
2012 were £59.0m. After adding back dividends paid in the period, this
represents a positive total return to shareholders of 3.9%. This performance
is creditable given the increasingly difficult economic backdrop, which at
times over the past twelve months has resulted in significant stock market
volatility.

Volatility has been especially evident at the smaller end of the UK
quoted market. Despite ending the period having generated a total return of
1.6%, the FTSE AIM All-Share Index was subject to sharp movements in both
directions at various points during the past twelve months. The speed and
severity of these changes in market direction is disconcerting, since it
reflects a fragile level of confidence amongst equity investors and tends to
encourage a short term approach to investment.

The European debt crisis, which has had a crippling effect on many
developed economies over the past four years, remains a significant and
unresolved problem. Despite concerted efforts by governments and central banks
there has been little sign of improvement. The lack of tangible progress in
controlling and reducing the overall debt burden is acting as a massive brake
on economic recovery. Understandably, such protracted economic and financial
strain tends to erode confidence and reduce risk appetite amongst investors.
This in turn results in unstable and unpredictable equity market conditions.

In attempting to preserve capital in uncertain times the Investment
Manager has adopted a risk averse, longer term approach to the management of
the portfolio. As a result, the Company's asset base remained stable
throughout the financial year with monthly reported Net Asset Value remaining
within a narrow 8% band.

As described in more detail in the Investment Manager's Review, the
majority of businesses in which the Company holds investments continue to
demonstrate commendable resilience. One of the key reasons these businesses
have been able to weather the storm successfully lies in the continued
strength of their balance sheets. Of the 45 active VCT qualifying companies
held in the portfolio, over 50% have no debt on their balance sheets, while a
further 30% are operating with a net gearing figure of less than 25%.
Encouragingly, 65% of these companies were cashflow positive in their last
reported financial year. Overall, brokers are forecasting profit growth from
around 80% of our investee companies in their current financial year.

I am pleased to report that the longer term performance of the
Company remains robust. Since the merger with Unicorn AIM VCT II plc, which
was successfully completed in March 2010, the total return to shareholders has
been 21.3% including nine pence in tax free dividend payments. This figure
compares very favourably with total returns delivered during the same period
by the FTSE All-Share Index and the FTSE AIM All-Share Index of 14.5% and 4.5%
respectively.

Portfolio Activity

It has been a quiet year for Initial Public Offerings. Only 50 UK
companies listed on AIM in the 12 month period to 30 September 2012, of which
few were VCT qualifying. The Company remains comfortably above the threshold
required to retain VCT qualifying status, however, the Investment Manager has
maintained a cautious approach to new investments. No VCT qualifying
investments were made in new companies in the year under review, while one
follow-on investment was made in an existing portfolio company in which the
VCT already held a stake. Existing positions were increased in four
non-qualifying companies during the period.

In terms of disposals, merger and acquisition activity resulted in
two qualifying and two non-qualifying investments being sold. Four
non-qualifying investments were sold outright, while partial disposals were
made in a number of both qualifying and non-qualifying investments.

In the year to 30 September 2012, a total of £5.8m was realised
through the sale of investments, of which £1.6m was deployed in new
investments and approximately £2.9m spent on funding the dividend payment to
shareholders with the balance used to fund share buybacks and the operating
costs of the Company.

Over the 12 months to 30 September 2012 there was a net gain on
investments of £2.4 million and the total profit on ordinary activities after
taxation was £2.1 million, amounting to earnings of 3.5 pence per share. The
profit on the revenue account was £387,000. At the financial year end, the
portfolio consisted of 45 qualifying and 28 non-qualifying active investments.

A detailed report on the performance of both the qualifying and the
non-qualifying investments is contained in the Investment Manager's Review on
pages 8 - 13 of the Annual Report.

VCT Status and VCT Legislation

To maintain its VCT qualifying status the Company is required to
hold at least 70% of total assets in VCT qualifying investments. The Company
remains comfortably above this key threshold. At the financial year end, the
Company held 77.3% (reflecting the tax value of investments as defined in the
tax legislation), of its total assets in VCT qualifying companies.

The European Commission recently approved a number of important and
beneficial changes to the VCT scheme. In particular, the changes help broaden
the range of companies eligible for VCT investment and will enhance your
Company's ability to support small businesses and thereby assist the
Government's growth agenda.

These hard won amendments, to which your Manager and Board made an
active contribution, have resulted in the UK VCT scheme becoming one of the
most generous incentive schemes of its type in Europe. The key improvements
are as follows:-

1) The size of company that can receive VCT funding has been substantially
increased (from those with gross assets of £7 million to £15 million pre new
investment);

2) Companies with a significantly greater number of employees are now
permitted to receive VCT funding (up fivefold from a maximum headcount of 50
to a new maximum of 250 employees);

3) The introduction of a new investment limits condition. This is a
restriction on any investee company receiving more than £5m of State Aided
risk capital investment, including any monies from VCTs in the 12 months up to
and including the date of investment (the investment limit condition was
originally intended to be capped at £2m. Lobbying proved effective and the
limit was subsequently raised to £5m); and

4) The annual limit of £1m that a VCT may invest in a qualifying investment in
any tax year has been removed.

To secure these changes the Government had to gain European
Commission approval as the VCT scheme is a form of State Aid, which is covered
by rules to protect the principles of the European Single Market. The
Commission announced their support for the changes in May 2012 and the changes
were passed into UK law in the Finance Act 2012, which received Royal Assent
on 17 July 2012.

The relaxation of VCT regulation is to be encouraged and these
changes should help stimulate renewed interest in the sector.

Revenue Return

The revenue return increased from £288,000 to £387,000 (34%) over
the year. Investment income rose slightly by £34,000 (3%), within which
dividends from equities rose by £58,000 (6%).This return also benefited from
lower Investment Management fees, down by £27,000 (9.8%) arising from reduced
net asset values over the year. Finally, other expenses fell by a net £38,000
(7%), primarily because the Company reached its cap on trail commission
payments due on fundraisings prior to the merger. This permanent reduction in
trail commission fees adds over 0.2 pence return per share per year to the
Company.

Running Costs

The Ongoing Expense Ratio (previously total expense ratio) of the
Company for the financial year under review was 2.65% (2011: 2.49%) of total
assets. Shareholders should note that this ratio has been calculated in
accordance with the Association of Investment Companies' recommended
methodology, published in May this year. This figure shows shareholders the
annual percentage reduction in shareholder returns as a result of recurring
operational expenses, assuming markets remain static and the portfolio is not
traded. Although the Ongoing Charges figure is based upon historic
information, it provides shareholders with an indication of the likely level
of costs that will be incurred in managing the fund in the future. It replaces
the total expense ratio previously reported, although the latter will still
form the basis of any expense cap that may be borne by the Manager. No such
cap applies for the 2012 financial year (2011: nil)

Share Buybacks

The Board has continued to buy back shares for cancellation at
various points throughout the financial year in addition to the enhanced
buyback and top-up offer which closed in February 2012. A total of 820,975
shares were purchased for cancellation during the course of the year at an
average price of 73.3 pence per share. These shares were purchased at a
discount to net assets of between 21.4% and 28.4%. The share price stood at a
discount to net assets of 16.0% as at the financial year end. The Board
recently implemented measures necessary to enable the Company to continue
purchasing shares for cancellation in closed periods and the first such
transactions took place in early October. I am pleased therefore to report
that the share price discount to net asset value has continued to narrow since
the financial year end and, as at 19 December 2012 (being the last business
day prior to publication of this Annual Report), stood at 15.4%.

Enhanced Buyback & Top-Up Offer

In January 2012, the Board announced the launch of an enhanced
buyback facility and top up offer for subscription. The enhanced buy back
facility enables participating shareholders' existing shares to be repurchased
by the Company with the net proceeds from the buyback being wholly re-invested
in new shares under an offer for subscription. Among the benefits to
qualifying shareholders of an enhanced buy back facility is the ability to
obtain income tax relief available on VCT shares in relation to the new shares
issued under the offer. Due to strong demand for the enhanced buyback
facility, the Company received more applications to participate than could be
accommodated. Accordingly, the Board will continue to consider the
implementation of such schemes in the future. Details of the results of the
enhanced buyback and top-up offer are given on pages 22 - 23 of the Annual
Report.

Dividends

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. Dividend payments made to shareholders during the
period amounted to £2.9m, equivalent to 5 pence per share. Since the original
launch of Unicorn AIM VCT in 2001, qualifying shareholders have received
approximately £26m in tax free dividend distributions. The Board has now
considered the payment of a final dividend for the financial year ended 30
September 2012 and is pleased to propose a final dividend of 5 pence per
share.

The Board

Malcolm Diamond, will be standing down as one of the Directors of
the Company. He will do so immediately after the forthcoming AGM.

Malcolm Diamond has been an invaluable source of experience,
knowledge and wisdom. On behalf of my fellow Directors and myself, I would
like to take this opportunity to pay tribute to his important contribution
and, personally, to thank him for his constant support and advice.

Outlook

The economic outlook remains uncertain. It is to be hoped that the
fragile UK economic recovery can be sustained despite the significant and as
yet unresolved European debt crisis.

It appears increasingly obvious that the future of the European
Union rests on the ability of politicians to find and agree a workable
solution to reduce the debt burden without further crippling the economies of
individual member states. If such a solution can be found, then the economic
outlook should start to improve noticeably. Stronger trading conditions in
Europe would clearly be beneficial to the health of the UK economy and, in
turn, should instil greater confidence in equity markets.

In the meantime, the performance of the Company remains solid and
shareholders should continue to benefit from the cautious approach to the
management of the investment portfolio. This prudent approach has successfully
preserved capital in difficult times while allowing the payment of attractive
dividend income to be maintained. I remain confident that the portfolio has
the potential to deliver continued capital growth once more benign economic
conditions return.

Peter Dicks

Chairman

20 December 2012

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:

Ø experienced and well-motivated management;

Ø products and services supplying growing markets;

Ø sound operational and financial controls; and

Ø 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.

VCT regulation

The investment policy is designed to ensure that the Company
continues to qualify and is approved as a VCT by HM Revenue & Customs
("HMRC").

Amongst other conditions, the Company may not invest more than 15%
at the time of its investments in a single company and throughout the period
must have at least 70% by value of its investments in shares or securities in
VCT qualifying holdings, of which a minimum overall of 30% by value (70% for
funds raised after 6 April 2011) must be in ordinary shares which carry no
preferential rights (save as may be permitted under VCT rules). In addition,
the Company must have at least 10% by value of its investment in each VCT
qualifying company in ordinary shares which carry no preferential rights (save
as may be permitted under VCT rules).

The £1 million limit on the amount of investment a VCT may make
into a particular company within a tax year has been abolished, except where
that company trades in partnership or has a joint venture. A new rule requires
that an investee company should not receive more than £5 million from State
Aid sources, including VCTs, within any twelve month rolling period from the
date of the VCT's investment.

Asset mix

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. Cash and
liquid resources are held in low risk bank accounts and money-market funds.

Borrowing

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.

Management

The Board has overall responsibility for the Company's affairs
including the determination of its investment policy. Risk is spread by
investing in a number of different businesses across different industry
sectors. The Investment Manager 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
any investment in an unquoted company, the prior approval of the Board is
required. Mobeus Equity Partners LLP also provides Company Secretarial and
Accountancy services to the VCT.

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
characteristics identified on page 7 of the Annual Report.

Performance

The audited net assets of the Company as at 30 September 2012
totalled £59.0m, equivalent to 102.3 pence per share. This compares with an
audited net asset value per share of 103.3 pence as at 30 September 2011.
After adding back dividends paid of 5 pence per share in the period, the total
return amounted to 3.9%.

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's portfolio remains above the
threshold required to retain VCT qualifying status (whereby 70% of total
assets must be invested in VCT qualifying companies). Your Investment Manager
will continue to adopt a cautious approach to new investment opportunities.

Alternative Investment Market (AIM) review

The FTSE AIM All-Share Index ended the 12 months to 30 September
2012 marginally higher, resulting in a total return for the period of +1.6%.
This modest increase masks a particularly volatile year for many AIM listed
stocks. From a low point in early October 2011, the AIM Index mounted a sharp
rally, rising by almost 12% over a four week period, before falling back to
near its previous low point. In mid-December 2011, the Index began another
significant upswing, this time rising by almost 25% in less than eight weeks.
By the end of February 2012 however, the Index had reached a peak, from which
it continued to fall progressively for the next four months. A modest recovery
in the final weeks of the period under review meant the Index closed at only a
slightly higher level than it had begun twelve months earlier. Much of the
volatility associated with the FTSE AIM Index is caused by its significant
weighting in junior mining and resource stocks. This is a sector of the market
to which the Company has no direct exposure since mining and oil exploration
companies are not typically qualifying investments. By contrast, the FTSE
All-Share Index experienced a good year, delivering a total return of 17.3%.
This increase was driven mainly by strong gains in mid to large cap stocks as
evidenced by the 23.1% total return generated by the FTSE 250 Index over the
same period.

The relatively poor performance of the AIM Index in recent years
inevitably creates challenges. In the short term, the risks associated with
high volatility, poor liquidity and negative sentiment have conspired to make
AIM appear an unattractive market in which to invest. As a consequence, the
number of companies seeking to list on AIM has fallen, while there has also
been an increase in the number of delistings over the past year. In addition,
many mainstream institutional investors have become less active at the smaller
end of the quoted market, which has exacerbated liquidity issues.

Despite these problems, AIM remains a vibrant and evolving market
with a constituent base numbering over 1,100 companies. The current appetite
for investing in smaller AIM quoted companies remains subdued and this
situation will probably only improve once wider market confidence returns. In
the meantime, depressed markets offer Unicorn Asset Management the chance to
selectively invest in neglected stocks at potentially significant discounts to
our estimate of fair value. Merger & Acquisition activity, which has increased
over the past year, is a normally reliable indicator that there is genuine
value to be found. We expect corporate activity will remain a feature at the
smaller end of the quoted market in the current financial year.

Performance Review

The monthly reported Net Asset Value of the Company remained
remarkably stable over the past twelve months, despite it being a volatile
year for the market as a whole. One of the key reasons for this stability lies
in a conservative approach to portfolio construction. The investment portfolio
is diversified both by number of holdings and by sector exposure. At the
financial year end, the Company held 45 VCT qualifying and 28 non-qualifying
active investments, which spanned a total of 16 different sectors. During the
course of any normal year, there will inevitably be investments that do not
meet expectations and which consequently disappoint in share price terms. The
main thrust of our investment effort however, remains unchanged. We are
seeking to identify established, well managed, profitable, cash generative and
growing businesses in which to invest for the longer term.

In addition, we continue to look for businesses which operate with
minimal levels of debt. Since the financial crisis began in 2008, smaller
companies have found it increasingly difficult to secure funding. Despite
government intervention and a base rate maintained by the Bank of England at a
record low of 0.5%, the major high street banks appear unable or unwilling to
lend to companies on commercially acceptable terms. The management teams of
many smaller quoted companies have had little choice other than to focus on
fundamental values such as cash generation, working capital control and debt
collection. It can therefore be argued that the withdrawal of the major banks
from lending to the smaller end of the corporate market has imposed a healthy
discipline. Companies that were heavily financially leveraged in the boom
years became over-reliant on cheap credit and have since been forced into
radical restructuring or have gone out of business. On the other hand, those
businesses which maintained a prudent and conservative approach now find
themselves in a strong financial position from which they are well placed to
grow as and when sustained economic recovery returns. It is pleasing to report
that the majority of our VCT qualifying companies fall into the second
category. Analysis of the constituents of the portfolio reveals that over 50%
of all companies in which we hold an investment have no debt whatsoever on
their balance sheet.

AIM focused Venture Capital Trusts that are conservatively managed
and have successfully navigated the difficult market conditions of recent
years, should offer reasonable prospects of capital preservation, while also
remaining capable of producing regular, attractive and sustainable dividend
income.

Although clearly not immune from the effects of adverse market
conditions, Unicorn AIM VCT has again demonstrated considerable resilience in
the year under review and is well placed to continue generating sufficient
capital and income reserves to cover current levels of dividend payments. As
and when market conditions improve, the prospects for capital growth also
remain good.

Qualifying Investments

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 (+11.0%) is a global leader in the manufacture and supply of
therapeutic antibodies and protein research tools to the worldwide life
science research market. Although Abcam had a relatively quiet year in share
price terms, the business continued to expand at a healthy rate. Reported
results for the financial year ended 30 June 2012 confirmed further strong
growth in both revenues and profits. Annual revenues increased by 17.5% to
£97.8m, while adjusted operating profits grew by 20.9% to £38.6m. Tight cost
control enabled the business to increase adjusted operating margins to 39.4%
(2011: 38.3%). Underlying cash generated from operations also grew healthily,
rising to £37.7m from £33.1m in the previous financial year. Abcam retains a
strong balance sheet with net cash of £17.5m at the year-end (2011: £55.6m),
despite spending over £56m on acquisitions and acquisition related costs
during the year. Abcam remains the largest VCT qualifying investment in the
portfolio. In order to mitigate this stock specific risk, further partial
disposals were made during the financial year. The net amount of these
realisations was £780k and the realised capital gain was £583k, at an average
price on disposal of nearly £3.91 per share. As at 30 September 2012, the
market capitalisation of Abcam was in excess of £792m.

Accumuli (+41.9%) is a provider of advanced IT security services.
Having acquired a number of businesses in the recent past, the management team
at Accumuli are now focusing investment on capabilities and in people. All
acquisitions have been successfully integrated and the range of products and
services is currently being reviewed and selectively expanded. A new Chief
Executive was appointed in August to help drive the Group forward in this new
phase of its growth.

Anpario (+30.5%) is an international supplier of natural, high
performance feed additives to enhance health, growth and sustainability in
agriculture and aquaculture. The Group's performance continues to be very
encouraging despite disruption in the Middle East combined with challenging
trading conditions in European markets. Interim results for the six months to
30 June 2012 demonstrate the progress made in growing the business. Revenues
increased by 16% to £10.82m (2011: £9.36m), whilst earnings per share rose by
20% to 5.25 pence per share (2011: 4.36 pence per share). Net cash at the
period end amounted to £2.83m.

Avingtrans (+75.8%) designs, manufactures and supplies critical
components to the medical, energy, industrial and global aerospace sectors.
The progress reported in last year's performance review continued in the
period under review. Group revenues and adjusted earnings each grew by more
than 20% for the second successive year. Buoyant demand from the civil
aerospace market was responsible for the bulk of this growth and this
division's order book was reported to be at record levels as at 31 May 2012.
The need to replace an ageing aircraft fleet has become the principal driver
of demand and the major global aircraft manufacturers have all reported
significant order backlogs as a consequence. The long term nature of such
orders provides comfort that Avingtrans can continue to expand its operations
in this area. Financial results for the twelve month period to 31 May 2012
reflect a growing confidence in the outlook. Having reinstated dividend
payments last year it was also encouraging to note the significant uplift in
the proposed final dividend from 0.4 pence per share to 1 pence per share.

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 2012, Cohort achieved a record trading profit while
simultaneously increasing its order book and net funds. Each of the three
operating subsidiaries improved their trading performance during the period.
The Group is benefitting from a good order book, strong net fund position and
operational momentum, providing a solid foundation for the current financial
year. As of 31 July 2012, the Group's order book stood at £111m (30 April
2012: £107.1m). The Group has also maintained strong net cash balances which
were in excess of £12m as at 10 September 2012 (30 April 2012: £14.1m).

Driver Group (+212.6%) is a global construction consultancy. As a
result of continued strong trading the Board has announced that financial
results for the twelve month period ended 30 September 2012 exceeded
management expectations. The Board also noted that the integration of Trett
Consulting has now been successfully completed. Demand for Driver's specialist
services is reported to be particularly strong in the Middle East and in
Africa.

Idox (+68.6%) 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 2012, 
Idox delivered total revenue growth of 58% to £28.6 m (H1 2011: £18.1m) with 
organic revenue growth of 10%. Reported pre-tax profit increased by 76% to £3.5m 
(H1 2011: £2.0m). Recent acquisitions have been quickly and effectively integrated 
and, as a result, the Group has been able to expand operations across an international 
market place, thereby reducing reliance on the UK public sector.

Tracsis (+111.0%) is a provider of operational planning software
and consultancy services to the transport industry. The past year has been a
successful one as the Group achieved both substantial organic and acquired
growth. In a trading update on 26 June 2012, the board of Tracsis announced
that forecast revenues for the financial year ended 31 July 2012 would be in
excess of £8.5m (2011: £4.1m), with adjusted EBITDA in excess of £3.0m (2011:
£1.2m). Net cash at the end of July 2012, was c. £7.5m. The business remains
debt free.

A small number of qualifying companies encountered significant operational or 
trading difficulties during the year:-

Green Compliance (-87.6%) is a provider of water, fire and pest
control services to UK businesses nationwide. Over the past 18 months, Green
Compliance has continued with its `buy and build' strategy with four further
acquisitions completed in the financial year ended 31 March 2012. A major
integration project across the sixteen entities acquired to date has also now
been successfully concluded. Despite this progress, the business is operating
in an increasingly competitive environment leaving profit margins under
significant pressure. As a result, the business has struggled to meet profit
expectations and share price performance has been disappointing with the share
price falling by almost 90% in the period under review. In July 2012, a loan
note issue was completed raising £750,000 for working capital purposes.
Unicorn AIM VCT invested £250,000 in this loan note issue. The loan notes
attract interest at a rate of 12% per annum and are convertible at a price of
50 pence per share. Your Investment Manager is cautiously optimistic that this
round of financial support for Green Compliance may prove to be a turning
point in the fortunes of the business.

Instem plc (formerly Instem Life Science Systems) (-44.3%) is a
software company focused on the life sciences and biotechnology markets.
Instem has developed world leading software enabling pharmaceutical companies
to collect, analyse and report large volumes of complex scientific data in an
accurate and efficient manner. In the six month period to 30 June 2012, the
business reported flat revenues of £4.9m (H1 2011: £4.9m), whilst profits were
down sharply. Anticipated sales growth did not materialise in the period and
as a result margins were impacted because of higher costs associated with
previous investment in people and product development. Encouragingly, the
sales team is reported to be working on multiple contract opportunities from
both new and existing customers. In the meantime, recurring revenues account
for 74% of total sales, giving the business good visibility, whilst the
balance sheet remains strong with net cash at 30 June 2012 of £1.8m.

SnackTime (Ordinary Shares -63.4%) is the third largest vending
company in the UK. Unfortunately, SnackTime continues to experience difficult
trading conditions primarily due to the economic slowdown in the UK and the
negative impact on consumers' discretionary spending habits. In a recent
trading update, the new Executive Chairman reported on the successful
implementation of cost savings that will reduce operating costs by £250,000 in
the second half of this company's current financial year. It is the Board's
stated intention to write off all exceptional expenditure incurred in
achieving these cost savings. Although trading has weakened over the past
twelve months, profits before exceptional costs, interest, tax and
depreciation remain modestly positive. In 2008, a separate £550,000 investment
was made in SnackTime in the form of loan notes. The loan notes attract
interest at a rate of 8% per annum. To date, all interest payments have been
received in full, and by the due date.

Surgical Innovations (-31.1%) is a designer and manufacturer of
innovative medical devices for use in minimally invasive surgery. Having
enjoyed a particularly successful period in business development and share
price terms last year, the period to 30 September 2012 proved more
challenging. Product innovation and development remain strong, although
securing large-scale adoption of their unique, patented `part-reusable, part
disposable' product range has been difficult. Surgeons, who typically use such
devices, are justifiably cautious when considering the wide-scale use of new
technologies and the market itself is dominated by a relatively small number
of long established, major brands. Hence, it is a difficult market to
penetrate, especially for small businesses such as Surgical Innovations. In
the first half of their financial year ended 30 June 2012, sales and pre-tax
profits were both lower on a like-for-like basis primarily because of a
reduction in sales to OEM partners. Encouragingly, the sale of Surgical
Innovations' own branded products grew by almost 9% despite challenging market
conditions and the management team has reiterated their confidence in
delivering further growth in the current financial year.

Two other qualifying holdings struggled in share price terms during
the year and generated significant, unrealised capital losses as a result:-

Animalcare (-14.8%) is a leading supplier of veterinary medicines made up of 
three product groups: licensed veterinary medicines, companion animal identification 
and animal welfare products. The financial year ended 30 June 2012 was a difficult 
period for Animalcare. The licensed veterinary medicines division continued to grow, 
albeit more slowly than hoped, but there was a marked reduction in sales of both 
animal identification and welfare products during the year. As a result, underlying 
basic earnings per share fell by 25% to 8.8p (2011: 11.8p) on revenues which were 
down by 8.2% to £10.9m (2011: £11.8m). Encouragingly, the year end cash position 
grew from £1.2m to £2.3m and the proposed total dividend for the year was increased 
by 12.5% to 4.5p (2011: 4p), underlining the Board's confidence in the growth 
prospects for the business. A partial disposal was made in Animalcare early in 
the period under review generating a capital gain on disposal of £428,000.

Mattioli Woods (-17.6%) is a specialist pensions consultancy and
wealth management business. Mattioli Woods recently reported another 12 months
of strong progress. Revenues grew by 33% to £20.5m in the year to 31 May 2012.
The acquisition of Kudos, a wealth management and employee benefits business,
which completed in August 2011, is reported to have contributed £4.3m of this
increase in revenues. During the period, total assets under administration and
advice increased by 31.3% to just over £3bn. As an expression of confidence in
the prospects for the business, the Board has recommended a 12.1% increase in
the proposed total dividend for the year.

Both of these businesses are in sound financial condition, are run
by capable management teams and their growth prospects over the longer term
remain strong.

New qualifying investments

At the financial year end the Company held over 77.3% of total
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 Manager's clearly defined investment criteria. During the
period no new VCT qualifying companies were introduced to the portfolio.

Realisations

Realisations totalling £5.8m were made in the year to 30 September
2012. Merger and acquisition activity resulted in the disposal of two
qualifying and two non-qualifying holdings during the period. In addition,
four holdings in the non-qualifying portfolio were sold in the open market,
whilst partial disposals were made in a number of other holdings.

Lees Foods and Prologic, both VCT qualifying investments, were
subject to successful takeover approaches during the period and were
subsequently delisted, whilst in the non-qualifying portfolio, Morson Group
and Parseq also delisted following successful bid approaches. The cash
proceeds from each of these corporate transactions have been received in full.

Including partial disposals, the total realised capital gain from
the sale of investments amounted to £1,263,000.

Non-qualifying investments

The non-qualifying part of the portfolio performed satisfactorily
during the year.

A particular highlight was the 76% rise in the share price of
Tangent Communications. Tangent is a digital marketing and printing specialist
with a blue chip corporate client base, a rapidly expanding online print
division and a growing reputation for service excellence. A VCT qualifying
stake in Tangent was originally purchased in Unicorn AIM VCT II in February
2007. The book cost of this initial investment was £500,000 at a price of 13
pence per share. In the following three and a half years to the end of 2010,
Tangent continued to develop as a business whilst remaining profitable,
despite the impact of the wider financial crisis. Notwithstanding this
encouraging progress, the share price continued to drift lower. In March 2009,
1.85m additional shares were purchased in the secondary market for the
non-qualifying part of the portfolio at a price of 2.25 pence per share. In
December 2010, this holding was significantly increased with the purchase of a
further 10m shares at a price of 4.1 pence per share. Tangent's financial
results for the year ended 29 February 2012 showed that whilst revenues
remained broadly flat at c. £22m, the pre-tax profits of the business
increased by 38% to £1.45m. The business remains cash generative and debt
free, with cash on the balance sheet amounting to £1.8m. As at 30 September
2012 Tangent's share price had risen to over 9 pence per share. The
opportunities for further growth in this business remain exciting. On 5
November 2012, £800,000 was invested in new qualifying shares in Tangent
Communications at a price of 10 pence per share. Details of post balance sheet
events can be found in Note 24 on page 54 of the Annual Report.

Other non-qualifying investments which performed strongly include
Brady (+36.7%), Charles Taylor Consulting (+30.7%), Chime Communications
(+21%), Scapa Group (+48%) and VP (+37.7%).

The return from the non-qualifying portfolio was depressed somewhat
by three investments which generated material, albeit largely unrealised
capital losses in the period:-

ATH Resources (-89.9%) is a UK coal mining operation that
encountered severe operational and financial difficulties during the year and
is now unlikely to survive in its current form. A partial disposal of this
holding was made towards the end of the period. Unfortunately, the value of
the remaining holding is unlikely to recover.

Renold (-13.5%) is a manufacturer of industrial chain and torque
transmission products. Financial results for the year ended 31 March 2012,
showed a near threefold increase in operating profit to £12.0m from £4.3m the
previous year on sales revenues of £209.5m (2011: £191.0m). Renold is highly
operationally geared and since entering its current financial year, the
business has experienced weaker demand, especially in many European markets.
This decline in sales has impacted operating profit margins and interim
results are likely to be substantially below expectations as a consequence.
Although the recent profit warning represents a disappointing setback, this
holding is being retained in the belief that sales and profit growth will
resume in due course.

Specialist Energy Group (-67.8%) is a specialist engineering group.
Its main operating subsidiary, Hayward Tyler, manufactures a range of fluid
filled electric motors and pumps that are designed to operate in the most
demanding of applications and in the harshest environments. Despite securing a
£5m subscription at 50 pence per share and successfully completing new banking
arrangements with Standard Chartered Bank, the share price suffered
significant declines during the period. At the end of September 2012, the bid
price for the shares was 13 pence per share. This represents an unrealised
capital loss of approximately £550,000. Historic supply chain issues combined
with the financial uncertainty surrounding the business prior to the
completion of the new financing have contributed to this significant decline
in value. However, it is to be hoped that with these key issues now
successfully resolved, the business can begin to recover both operationally
and in share price terms. The holding is being retained in the belief that
this recovery is now underway.

Within the non-qualifying part of the portfolio, the contribution
to performance from the investment in sub-funds of the Unicorn Investment
Funds OEIC remained strong. All three sub-funds of the Unicorn Investment
Funds OEIC held by the VCT performed well in the period under review. Total
returns from these investments ranged between 4.8% from the Unicorn UK Smaller
Companies Fund to 21.0% from the Unicorn Outstanding British Companies Fund.
In order to effectively manage liquidity within the portfolio, the holdings in
Unicorn UK Income Fund and Unicorn Outstanding British Companies Fund were
disposed of in their entirety during the period, whilst a partial disposal was
made in the Unicorn UK Smaller Companies Fund.

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.
Details are set out in Note 3 of the Annual Report.

The continuing strategy for the non-qualifying portfolio is to
build revenue reserves through investment in smaller quoted 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.

Prospects

The global macro-economic picture remains unclear. Although the
rate of growth in emerging markets may be slowing, most analysts now appear
more confident that a `soft landing' in the key Chinese economy is achievable.
The indicators emerging from many other developing nations are also relatively
encouraging. Growth rates in India, Mexico, Turkey and parts of Africa have
all remained robust.

At the same time, many recent economic statistics from the world's
largest developed economy, the United States, suggest that recovery there is
now underway. Unemployment rates in the US have been falling steadily, while
job creation, average daily US consumer spending rates and economic confidence
have all been positive. Manufacturing output has also been improving and the
economically important construction sector is showing signs of recovery. House
prices appear to have stabilised and the number of new houses under
construction is rising. Meanwhile inflation remains subdued, which reinforces
the view that the Federal Reserve will maintain a relaxed approach to monetary
policy.

Typically, a combination of growth and low inflation is good for
stock markets and recent evidence suggests that institutional investors are
beginning to increase equity weightings. The debt crisis in Europe, however,
remains of huge concern. The much debated austerity measures, imposed on
stricken European Member States as a condition for receiving financial
bailouts, are hampering efforts to rekindle economic growth in the region.
Although it is unusual for economists to agree, it does appear that most
concur with the basic premise that debt reduction without economic growth or
inflation is almost impossible to achieve.

Despite the sustained rally in UK equity markets in recent months,
investors remain cautious. It can be argued that much of the profit recovery
experienced by the corporate sector in the past three years has been driven by
cost-cutting, productivity improvements and a slow return to more `normal'
trading conditions following the wide scale de-stocking experienced in the
wake of the banking collapse in 2008. In order to sustain ratings at current
levels, it now appears necessary for these companies to return to top line
sales growth. The ability to achieve sales growth, in an environment where
overall economic growth is subdued at best, will be a crucial element in
supporting the valuation of individual businesses.

The FTSE AIM All-Share Index has failed to keep pace with the wider
market rally seen in recent months. In theory, the widening of the relative
valuation gap between larger companies and their typically smaller
counterparts listed on AIM throws up interesting investment opportunities.
While we will undoubtedly seek to exploit these opportunities it is also
important to note that we regard capital preservation as a priority for the
foreseeable future. We will only increase our exposure to VCT qualifying
investments as and when we are able to identify companies that meet our
investment criteria and which are available at attractive valuations. In
parallel, we will continue to develop the non-qualifying portfolio, with the
principal aim of increasing the capital and revenue reserves available for
distribution to shareholders over the longer term.

The portfolio is composed of a diverse range of businesses
operating across a number of different sectors. In many cases our investee
companies sell specialised products or services into niche, but growing,
markets. The majority are sustainably profitable, soundly financed and well
managed companies. A focus on maintaining balance sheet strength and healthy
cashflows during the darkest of times has enabled many of these businesses to
survive. The logical conclusion is that they should now be well placed to
prosper once wider economic conditions improve.

Chris Hutchinson

Unicorn Asset Management Limited

20 December 2012

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The Directors are responsible for preparing the Directors' Report,
the Directors' Remuneration Report and the financial statements in accordance
with applicable law and regulations. They are also responsible for ensuring
that the Annual Report includes information required by the Listing Rules of
the Financial Services Authority.

Company law requires the Directors to prepare financial statements
for each financial year. Under that law the Directors have elected to prepare
the financial statements in accordance with United Kingdom Generally Accepted
Accounting Practice (United Kingdom accounting standards and applicable law).
Under company law the Directors must not approve the financial statements
unless they are satisfied that they give a true and fair view of the state of
affairs of the Company and of the profit or loss of the Company for that
period.

In preparing these financial statements the Directors are required
to:

- select suitable accounting policies and then apply them
consistently;

- make judgments and accounting estimates that are reasonable and
prudent;

- state whether applicable UK accounting standards have been
followed, subject to any material departures disclosed and explained in the
financial statements; and

- prepare the financial statements on the going concern basis
unless it is inappropriate to presume that the Company will continue in
business.

The Directors are responsible for keeping adequate accounting
records that are sufficient to show and explain the Company's transactions, to
disclose with reasonable accuracy at any time the financial position of the
Company and to enable them to ensure that the financial statements comply with
the Companies Act 2006. They are also responsible for safeguarding the assets
of the Company and hence for taking reasonable steps for the prevention and
detection of fraud and other irregularities.

The Directors are responsible for the maintenance and integrity of
the corporate and financial information included on the Company's website.
Legislation in the United Kingdom governing the preparation and dissemination
of the financial statements and other information included in annual reports
may differ from legislation in other jurisdictions.

The Directors confirm, to the best of their knowledge:

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.

b)

The names and functions of all the Directors are stated on pages 20
- 21 of the Annual Report.

For and on behalf of the Board:

Peter Dicks
Chairman
20 December 2012



PRIMARY FINANCIAL STATEMENTS

Income Statement
for the year ended 30 September 2012

                                                                  Year ended               Year ended
                                                           30 September 2012        30 September 2011
 
                                               Notes  Revenue Capital  Total  Revenue Capital   Total
                                                        £'000   £'000  £'000    £'000   £'000   £'000

Net unrealised gains on investments                         -   2,057  2,057        -     781     781
Net gains on realisation of investments                     -     364    364        -   1,170   1,170
Income                                           2      1,137       -  1,137    1,103       -   1,103
Investment management fees                       3      (249)   (746)  (995)    (276)   (829) (1,105)
Other expenses                                          (501)       -  (501)    (539)       -   (539)
Profit on ordinary activities before taxation             387   1,675  2,062      288   1,122   1,410
 
Tax on profit on ordinary activities                        -       -      -        -       -       -
Profit on ordinary activities after taxation
for the financial year                                    387   1,675  2,062      288   1,122   1,410
 
Basic and diluted earnings per share:
Ordinary Shares                                  5      0.66p   2.88p  3.54p    0.48p   1.89p   2.37p

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

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 the 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
for the year ended 30 September 2012

                                                                     30 September 2012    30 September 2011
                                                             Notes     £'000     £'000      £'000     £'000
Fixed assets
Investments at fair value                                                       57,806               59,563
 
Current assets
Debtors and prepayments                                                  183                  177
Current investments                                                      720                  779
Cash at bank                                                             532                  650
                                                                       1,435                1,606
 
Creditors: amounts falling due within one year                         (244)                (722)
Net current assets                                                               1,191                  884
 
Net assets                                                                      58,997               60,447
 
Capital
Called up share capital                                                            576                  585
Capital redemption reserve                                                         332                  283
Share premium account                                                           32,331               28,422
Revaluation reserve                                                              3,860                2,685
Special distributable reserve                                                   12,940               18,838
Profit and loss account                                                          8,958                9,634
 
Equity shareholders' funds                                                      58,997               60,447
 
Basic and diluted net asset value per share of 1 pence each:
Ordinary Shares                                               16               102.34p              103.34p
The notes below form part of these financial statements.



Reconciliation of Movements in Shareholders' Funds
For the year ended 30 September 2012

                                                                             30 September 2012  30 September 2011
                                                                     Notes               £'000              £'000

Opening Shareholders' funds at 1 October                                                60,447             62,279
 
Net share capital bought back in the year                                              (4,487)            (4,173)
Net share capital raised                                                                 3,901              3,309
Profit for the year                                                                      2,062              1,410
Dividends paid                                                         4               (2,926)            (2,378)
Closing Shareholders' funds at 30 September                                             58,997             60,447
 
The notes on pages 39 to 54 form part of these 
financial statements.



Cash Flow Statement
For the year ended 30 September 2012

                                                                              30 September 2012    30 September 2011
                                                                     Notes      £'000     £'000      £'000     £'000
Operating activities
Investment income received                                                      1,115                1,306
Other income received                                                               -                   50
Investment management fees paid                                                 (994)              (1,106)
Other cash payments                                                             (538)                (781)
Net cash outflow from operating activities                                                (417)                (531)
 
Investing activities
Purchase of investments                                                       (1,586)              (7,834)
Sale of investments                                                             5,790               11,817
                                                                                          4,204                3,983
 
Equity dividends
Dividends paid                                                         4                (2,926)              (2,378)
Net cash inflow before liquid resource management 
and financing                                                                               861                1,074
 
Management of liquid resources
Decrease/(increase) in current investments                                                   59                (404)
 
Financing
Share capital raised                                                            3,945                3,309
Share capital bought back                                                     (4,983)              (3,678)
                                                                                        (1,038)                (369)
 
Net (decrease)/increase in cash                                                           (118)                  301

The notes below form part of these financial statements.



NOTES TO THE ACCOUNTS

1 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.

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.

2 Income

                                                                                               2012        2011
                                                                                              £'000       £'000
Interest receivable
- from bank deposits                                                                              -           -
                                                                                                  -           -
Income from investments
- from equities                                                                                 964         906
- from loan stocks                                                                              110         106
- from money-market funds and Unicorn managed OEICs                                              63          91
                                                                                              1,137       1,103
 
Total income                                                                                  1,137       1,103
 
Total income comprises
 
Dividends                                                                                     1,027         997
Interest                                                                                        110         106
Other income                                                                                      -           -
                                                                                              1,137       1,103
Income from investments comprises
Listed UK securities                                                                            338         222
Listed Overseas securities                                                                        4           6
AiM and unlisted UK securities                                                                  795         875
                                                                                              1,137       1,103

3 Investment Manager's fees

                                    2012    2012  2012    2011    2011  2011
                                 Revenue Capital Total Revenue Capital Total
                                   £'000   £'000 £'000   £'000   £'000 £'000
Unicorn Asset Management Limited     249     746   995     276     829 1,105

Unicorn Asset Management Limited ("UAML") receives an annual
management fee of 2% of the net asset value of the Company, excluding the
value of the investments in the OEICs, which are also managed by UAML. The
annual management fee charged to the VCT is calculated and payable quarterly
in advance. In the year ended 30 September 2012, UAML also earned fees of
£98,000 (2011: £124,000), being OEIC management fees calculated on the value
of the VCT's holdings in each OEIC on a daily basis. This management fee is
1.25% per annum of the OEIC value for each of Unicorn Smaller Companies OEIC,
Unicorn Free Spirit OEIC, Unicorn Mastertrust OEIC and Unicorn UK Income OEIC
(fully disposed of in January 2012), with 1% per annum charged on the value of
Unicorn Outstanding British Companies OEIC (fully disposed of in November
2011).

The management fee will be subject to repayment to the extent that
there is an excess of the annual costs of the Company incurred in the ordinary
course of business over 3.6% of the closing net assets of the Company at the
year end. Any amount repayable will be paid by the Manager within 5 business
days of the approval of the annual accounts for the relevant year-end, or set
off against the next quarterly fee instalment payable to the Manager following
such approval. There was no excess of expenses for this year or the prior
year.

Under an Amended Incentive Agreement with UAML dated 12 April 2010
(which replaces all previous incentive agreements), the Investment Manager is
entitled to a performance incentive fee of 20% of any cash distributions (by
dividend or otherwise) paid to shareholders in excess of 6 pence per Ordinary
Share paid in any accounting period - "the target return" and subject to the
maintenance of a net asset value (NAV) per share of 125p or more, as
calculated in the annual report and accounts for the year relating to such
payments. The target return applies for accounting periods starting after 1
October 2010. In the event that the target return of 6 pence per share is not
paid in a particular accounting period, the shortfall of such distributions
will be carried forward to subsequent accounting periods and any incentive fee
will not be payable until this shortfall is met. No incentive fee is payable
for the year ended 30 September 2012 and none was paid for the year ended 30
September 2011.

4 Dividends

                                                                                                      2012        2011
                                                                                                     £'000       £'000
Amounts recognised as distributions to equity holders in the year:
 
Ordinary Shares
Final capital dividend of 4.25p per share for the year ended 30 September 2011 paid on 10 February
2012                                                                                                 2,486           -
Final income dividend of 0.75p per share for the year ended 30 September 2011 paid on 10 February
2012                                                                                                   440           -
Final capital dividend of 4p per share for the year ended 30 September 2010 paid on 14 January 2011      -       2,378
 
                                                                                                     2,926       2,378
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.

                                                                                                2012       2011
                                                                                               £'000      £'000
 
Revenue available for distribution by way of dividends for the year                              387        288
Proposed final income dividend of 0.5p (2011: 0.75p) for the year ended 30 September 2012        287        439

5 Basic and diluted earnings and return per share

                                                                                             2012          2011
                                                                                            £'000         £'000

Total earnings after taxation:                                                              2,062         1,410
 
Basic and diluted earnings per share (note a)                                               3.54p         2.37p
 
Net revenue from ordinary activities after taxation                                           387           288
 
Revenue earnings per share (note b)                                                         0.66p         0.48p
 
Net unrealised capital gains                                                                2,057           781
Net realised capital gains                                                                    364         1,170
Capital expenses                                                                            (746)         (829)
Total capital return                                                                        1,675         1,122
 
Capital earnings per share (note c)                                                         2.88p         1.89p
 
Weighted average number of shares in issue in the year                                 58,206,100    59,414,982
Notes

a) Basic and diluted earnings per share is total earnings after
taxation divided by the weighted average number of shares in issue.

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 Net asset values

                                                                             2012        2011
                                                                            £'000       £'000
 
Net Assets                                                                 58,997      60,447
 
Number of shares in issue                                              57,646,506   58,492,674
Net asset value per share                                                 102.34p      103.34p

7 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.

At the year-end, UAML was owed £44,000 by the Company for funding
some of the costs of the EBB and Top Up Offer incurred in the year. UAML has
not charged any fees for their involvement in the EBB and Top Up Offer. In the
previous year, UAML had received a fee of £188,000 for acting as promoter to
the company, for that year's fundraising.

8 Dividends

The Directors have proposed a final dividend of 5 pence per share. The
dividend will be paid on 8 February 2013 to Shareholders on the Register on 11
January 2013. Shareholders who wish to have dividends paid directly into their
bank account rather than sent by cheque to their registered address can
complete a mandate for this purpose. Mandates can be obtained by telephoning
the Company's Registrars, Capita Capita Registrars on 0871 664 0300, (lines
are open 8.30 am - 5.30 pm Mon - Fri, calls cost 10p per minute plus network
extras - if calling from overseas please ring [phone]) or by writing
to them at Capita Registrars, The Registry, 34 Beckenham Road, Beckenham,
Kent, BR3 4TU. Alternatively you may visit their website,
www.capitaregistrars.com/shareholders.

9 Post balance sheet events

 On 5 November 2012, £800,000 was invested in new
qualifying shares in Tangent Communications plc.

10 Statutory information

These are not full accounts in terms of section 434 of the Companies Act 2006.
The Annual Report for the year to 30 September 2012 will be sent to
shareholders shortly and will then be available for inspection at 30
Haymarket, London SW1Y 4EX, 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 2012 contain an unqualified audit report.

11 Annual General Meeting

The Annual General Meeting of the Company will be held at 10.00 am on
Thursday, 7 February 2013 at the offices of Mobeus Equity Partners, 30
Haymarket (4th floor), London SW1Y 4EX.

Contact details for further enquiries:

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

Robert Brittain at Mobeus Equity Partners LLP (the Company
Secretary) on 020 7024 7600 or by e-mail on [e-mail]

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.