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Octopus Apollo VCT posts positive returns, ramps up AI deals amid tax changes

Story Highlights
  • Octopus Apollo VCT delivered a modest 2.4% annual return, maintained a 5.1% dividend yield, and slightly increased total value per share despite market volatility.
  • The trust accelerated investment and AI exposure, raised £82.4 million, and warned that reduced VCT tax relief could weigh on future fundraising and sector capital.
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The latest announcement is out from Octopus Apollo VCT ( (GB:OAP3) ).

Octopus Apollo VCT reported net assets of £541.1 million and a 2.4% total return for the year to 31 January 2026, as NAV plus cumulative dividends per share edged up to 141.7p despite ongoing macroeconomic and tech-valuation volatility. Portfolio companies generally increased revenues and profitability, while the trust maintained a 5.1% dividend yield and paid total dividends of 2.6p per share, taking cumulative tax‑free dividends to 92.6p.

The VCT stepped up deployment with £55 million invested in new and follow-on deals, deepened its exposure to AI software, and realised £33.9 million to recycle into fresh opportunities, supported by strong fundraising totalling £82.4 million in the latest offer. Regulatory changes raised investee company limits but cut upfront tax relief for new VCT subscriptions to 20%, prompting board concern over potential pressure on future fundraising even as the company continues buybacks, maintains ample liquidity, and reinforces its governance with new non-executive appointments.

More about Octopus Apollo VCT

Octopus Apollo VCT plc is a UK-listed Venture Capital Trust focused on providing investors with tax-efficient income and long-term capital growth. Managed by Octopus Investments via Octopus Ventures, it invests primarily in a diversified portfolio of predominantly unquoted, later-stage B2B software companies, increasingly targeting AI-enabled and AI-native business models.

Average Trading Volume: 1,107,046

Technical Sentiment Signal: Strong Buy

Learn more about OAP3 stock on TipRanks’ Stock Analysis page.

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