Artemis UK Future Leaders plc

Annual Financial Report (audited)

for the year ended 31 January 2026

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ONTENTS

FINANCIAL HIGHLIGHTS

STRATEGIC

REPORT

Chairman’s statement

Investment Manager’s review

ESG & stewardship at Artemis

Portfolio of investments

Strategy and business review

Principal risks and uncertainties

Long-term viability

Duty to promote the success of the Company

DIRECTORS AND CORPORATE GOVERNANCE

Board of Directors

Directors’ report

Corporate governance report

Audit Committee report

Directors’ remuneration policy and report

Directors’ responsibilities statement

INDEPENDENT AUDITOR’S REPORT

FINANCIAL

STATEMENTS

Statement of comprehensive income

Statement of changes in equity

Balance sheet

Statement of cash flows

Notes to the financial statements

SHAREHOLDER INFORMATION

Notice of Annual General Meeting

Information for shareholders

Glossary of Terms and Alternative Performance Measures 70

Securities Financing Transactions Regulation (“SFTR”)

(unaudited)

Alternative Investment Fund Managers Directive

Disclosures (unaudited)

Principal service providers

INANCIAL

IGHLIGHTS

Total return statistics (with dividends reinvested)

Net asset value (NAV)

total return

(1)(2)

Share price total return

(1)(2)

Benchmark index

(2)(3)

0.0

–2.4

7.1

16.1



Year ended 31 January 2026



Year Ended 31 January 2025

Performance during the year ending Discount during the year ending

31 January 2026

20%

–8%

15%

10%

15%

10%

–10%

–12%

–5%

–10%

–15%

–20%

–5%

–10%

–15%

–20%

–14%

–16%

–18%

–14%

–16%

–18%

Share price total return

Net asset value total return

Deutsche Numis SC plus AIM Excluding Inv Com TR

Source: Artemis/Datastream.

Performance from 31 January 2016 to 31 January 2026

140 140

120 120

100 100

–8.0

*Total return (Rebased to 100)

Discount to NAV (%)

–20

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

–20

2026

Artemis UK Future Leaders plc (Share Price)

Artemis UK Future Leaders plc (NAV)

Deutsche Numis SC plus AIM Excluding Inv Com TR

Total

returns

year

3 years

5 years

10 years

Since

appointment

Net asset value per ordinary share

0.0%

(6.4)%

(8.3)%

59.8%

5.3%

Ordinary share price

7.1%

(3.3)%

(2.2)%

58.7%

12.3%

Deutsche Numis Smaller Companies

plus AIM (Excl. Inv-Trust)

16.1%

21.0%

18.3%

85.8%

21.5%

Source:

Artemis/Datastream.

Capital statistics

At 31 January

2026

2025

Change

Total shareholders’ funds (£’000)

129,385

136,644

(5.3)%

Net asset value (‘NAV’) per share

434.66p

449.88p

(3.4)%

Share price

1,2

386.00p

375.00p

2.9%

Discount

(11.2)%

(16.6)%

Gearing

– gross gearing

8.6%

9.0%

– net gearing

8.2%

7.2%

Maximum authorised gearing

19.3% 14.6%

For

the year ended 31 January

2026

2025

First interim dividend

3.85p

Second interim dividend

3.85p

Third interim dividend

3.85p

Final dividend

3.89p

3.45p

Total dividends

15.44p

15.00p

2.9%

Dividend

yield

1,4

4.0%

Dividend payable for the year (£’000)

– from current year net revenue

3,745

4,254

– from capital reserve

883

437

4,628

4,691

Capital dividend as a % of year end net assets

1,4

0.7%

0.3%

Capital returns paid in the year:

– Special dividend

–

484.85p

Capital returns payable for the year (£’000):

– Special dividend

– 16,401

Ongoing charges

1.00%

1.03%

Alternative Performance Measure (APM). See Glossary of Terms and Alternative Performance Measures on pages 70 to 72 of the ﬁnancial report for details of the explanation and

reconciliations of APMs.

Source: LSEG Data & Analytics.

The Benchmark Index of the Company is the Deutsche Numis Smaller Companies + AIM (excluding Investment Companies) Index with dividends reinvested.

Excludes the one-off elective special dividend (return of capital) of 484.85p paid to shareholders on 8 October 2024.

TRATEGIC

EPORT

short-term returns have been disappointing, the Board takes

reassurance from this independent endorsement and remains

conﬁdent in the Manager’s disciplined approach and its ability

to deliver improved outcomes for shareholders over time.

A reduction in the investment management fee

As part of the negotiations with Artemis, they agreed to a

nine-

month fee waiver which ended on 10 December 2025. This

fee

waiver offset the termination fee paid to Invesco (in lieu of

notice) plus an additional ﬁve months where no management

fees were paid. In addition, the investment management fee

was reduced from 0.75% of gross assets (before expenses) to

0.65% per annum on the ﬁrst £50 million of the net assets (after

expenses) of the Company. The balance above £50 million will

be charged at a reduced rate of 0.55% per annum.

Bridget Guerin

Chairman’s statement

Dear shareholders,

The year was a challenging one for the Company and for the

UK smaller companies sector more broadly. Over the

12 months to 31 January 2026, the Company delivered a ﬂat

total return on a net asset value (“NAV”) basis, while the share

price total return was 7.1%. This compared with a return of 16.1%

from the Company’s benchmark index. Investor sentiment

towards UK domestic equities remained subdued throughout

much of the period and improving business fundamentals in

many of the portfolio’s holdings were not reﬂected at the

share-price level.

Change of Investment Manager

On 10 March 2025, following a formal review process, the Board

appointed Artemis as Investment Manager to the Company,

which was previously known as Invesco Perpetual UK Smaller

Companies Investment Trust plc (“IPU”). The Board considered

the change to be in the best long term interests of

shareholders and has remained closely engaged throughout

the transition and subsequent period.

Performance since the change has been difficult. This reﬂects

a combination of continued headwinds facing UK smaller

companies, cautious investor sentiment, and portfolio

repositioning following the transition to Artemis. The portfolio

was realigned during the year to reﬂect the new Investment

Manager’s investment philosophy and approach. The Board

notes with encouragement that the Company has recently

been awarded a Gold rating by Morningstar. This recognition is

particularly welcome following a challenging period of

performance, and reﬂects the strength of the investment

process and the long-term potential of the strategy. While

Performance and markets

Market conditions over the year were characterised by weak

conﬁdence in UK domestic equities, with returns driven largely

by stock speciﬁc factors rather than broad market support.

Relative performance was affected by a range of smaller

negative contributions rather than any single material

detractor. Notwithstanding this, a number of portfolio

companies continued to demonstrate resilient operating

performance, reinforcing the Board’s conﬁdence in the

portfolio’s underlying fundamentals. Further details are given

in the Investment Managers’ Report.

The Company’s shares traded at a discount to NAV throughout

the year. The Board monitors the discount closely and

recognises the importance of liquidity and market conﬁdence

for shareholders. Accordingly, the Company bought back

606,699 shares representing 2.0% of the Company during the

year. We will continue to consider the use of the tools available

to us, where appropriate, to address any sustained imbalance

between supply and demand for the Company’s shares.

Market

context

The Board notes that valuations across the UK smaller

companies universe remain attractive by historical standards

and at a discount to both larger UK companies and

international peers. This valuation backdrop has continued to

support elevated levels of corporate activity, including mergers

and acquisitions and share buybacks, across the sector. Such

activity underlines the disconnect between market valuations

and underlying fundamentals and provides a potential source

of support for shareholder returns during periods of subdued

sentiment.

While conﬁdence towards UK equities remains cautious, the

Board is mindful that periods of prolonged underperformance

are not unprecedented. Historically, recoveries in UK smaller

companies have often been sharp once conﬁdence returns.

The Board therefore continues to believe that the long term

investment case for the asset class remains intact.

Dividends and dividend policy

The Company’s regular dividend policy is to target a yield of 4%

of the year-end share price, paid from income earned within

the portfolio and enhanced, as necessary, through the use of

realised capital proﬁts. In accordance with this policy, the

Company has declared and paid three interim dividends of

3.85p which are in line with the amounts paid in 2024. The

Board has resolved that the Company will propose a ﬁnal

dividend payable in June 2026 of 3.89p per share to bring the

total dividends paid for the year to 15.44p per share (2025:

15.00p). The ﬁnal dividend will be payable on 11 June 2026,

subject to shareholder approval, to shareholders on the

on 7 May 2026. This represents all the available revenue

earned by the Company’s portfolio over the year, equating to

80% of the dividend payment, with the remainder being paid

from realised capital reserves. Shareholders who hold

shares on the main register and are residents of the UK,

Channel Islands or Isle of Man can reinvest their dividend via

the Dividend Reinvestment Plan (‘DRIP’). Shareholders

will need to submit an election by 21 May 2026. Further

information can be found on the Company’s webpage:

https://www.artemisfunds.com/futureleaders

Board composition

I would like to take the opportunity to thank Simon Longfellow

who resigned from the Board on 31 December 2025 for all his

hard work and service to the Company. His experience of

investment trust marketing and communication, especially

when communicating with retail shareholders, has been very

valuable. As previously communicated, the Board will comprise

three Directors going forward, all of whom are independent

non-executive Directors and who have experience in all the key

areas of investment trust governance.

Annual General Meeting

This year’s meeting will be held at the offices of Artemis at

12.00pm on Tuesday 2 June 2026. As well as the Company’s

formal business, there will be a presentation from Mark Niznik

and William Tamworth on the Company’s portfolio of

companies and their prospects and you will have the

opportunity to ask questions of the Portfolio Managers and

Directors and to chat informally with all of us over lunch.

Shareholders may bring a guest to these meetings. The

Directors and I look forward to meeting as many of you as

possible. For those unable to attend in person, a video update

from the Portfolio Managers will be available on the Company’s

website after the AGM. Shareholders wishing to lodge

questions in advance of the AGM should do so by email to the

Company Secretary at artemisukfutureleaders@ntrs.com

or, by

letter, to 50 Bank Street, Canary Wharf, London, E14 5NT.

Outlook

While near-term market conditions remain uncertain, the

Board takes encouragement from the Investment Manager’s

assessment of the opportunity set now available within UK

smaller companies. It is well documented that smaller

companies signiﬁcantly outperform larger companies over the

long-term. Therefore, for any long-term investor, it has paid to

buy the dips. The managers have each bought over 1% of your

investment trust, ensuring that their interests are aligned with

yours as shareholders.

Valuations across the sector are at historically attractive levels

and, in many cases, imply unduly pessimistic assumptions

about economic and earnings prospects. In fact, we are

currently in the second longest and second most severe period

of UK smaller company underperformance since 1955. This

period, beginning in August 2021, has encompassed two oil

price shocks and several wars. Such periods of

underperformance have, historically, been followed by strong

recoveries once conﬁdence begins to return. Importantly, the

portfolio is positioned around businesses with robust balance

sheets, strong cash generation and clear long-term growth

potential, characteristics which we believe leave the Company

well placed to beneﬁt when sentiment improves.

The Iran conﬂict is a new negative that was not known about

at the start of the year. The longer it continues, inﬂationary

risks increase as higher energy prices ﬁlter through the

economy. However, as the Managers point out in their report,

the UK is in a position of low household debt and high savings.

They feel the conﬂict is unlikely to have a material effect on

smaller company prospects on their three-to-ﬁve-year view.

In the meantime, elevated levels of corporate activity, including

mergers, acquisitions and share buybacks, continue to

underline the disconnect between market valuations and

underlying fundamentals and provide an additional source of

potential returns. The Board therefore remains conﬁdent that,

with the portfolio now fully aligned to Artemis’ investment

philosophy and stewardship approach, the Company is well

positioned to capture the long-term opportunities available

within UK smaller companies.

Bridget Guerin

Chairman

28 April 2026

Investment Manager’s review

Statement from the previous managers Invesco Fund

Managers

Invesco Perpetual UK Smaller Companies plc’s net asset value

(NAV) delivered a total return of –5.1% during the period

1 February to 9 March 2025. This was modestly behind its

Deutsche Numis Smaller Companies plus AIM (Inv-Trust)

benchmark which returned –4.4% during the same period.

During this period the fund managers had been instructed by

the

Board

administer

the

portfolio

‘care

and

maintenance’ basis. We were asked not to purchase any new

holdings and to take instructions on sales and reductions in

holdings in order to raise funds for the redemption of the debt

facility. Effectively we were taking instructions from the Board

and Artemis via the Board.

Jonathan Brown & Robin West

Invesco Fund Managers Limited

Portfolio managers until 9 March 2025

Statement from the new managers Artemis Fund Managers Limited from 10 March 2025

Mark Niznik

Mark has managed Artemis‘ ‘UK smaller companies‘ strategy

since joining the ﬁrm in 2007. He started his investment career

in 1985 and has worked at ﬁrms including Invesco Perpetual

and Standard Life.

William

Tamworth

William works alongside Mark in managing Artemis’ ‘UK smaller

companies’ strategy. Prior to joining Artemis in 2015, William

worked at Liberum and Citigroup where he analysed small and

mid-cap companies.

Performance

Artemis UK Future Leaders plc’s net asset value (NAV) rose

5.3% between the point Artemis took charge on 7 March 2025

and 31 January 2026, compared with gains of 21.5% from its

Deutsche Numis Smaller Companies plus AIM (-InvTrust)

benchmark

We are disappointed with and apologise for this performance.

While some of it relates to the transition and the performance

of the stocks that we inherited, the larger component came in

the period after the transition was complete, which we take full

responsibility for (in the second half of the year, the NAV was

down 1%, or 9 percentage points behind the benchmark).

Our overweight position in UK consumer discretionary

holdings detracted from fund performance in the second half

of the year. Rampant speculation ahead of the delayed autumn

Budget sapped already fragile consumer conﬁdence (and

investor conﬁdence). In the end the Budget was (largely) a

non-event but our UK consumer discretionary shares

underperformed over this period despite, in aggregate, largely

unchanged earnings expectations.

Our technology and media holdings also detracted from our

performance. We have traditionally been attracted to the

recurring earnings of subscription media businesses and

software as a service revenue of technology businesses. Over

the last six months there has been growing investor concern

with regards to the potential disruption risk from AI for several

stocks in these two sectors – hence the drag on our

performance. We believe these concerns are overdone but it

will take time for this to become evident. We stress the

importance of ﬁrst party (proprietary) data; the potential

opportunities that come from AI (rather than just the risks) and

the very attractive valuations of many of these companies.

What we did not own also impacted the relative performance

– most notably basic material companies (for example

Greatland Resources and Pan African Resources were amongst

the best performing shares in the benchmark) which beneﬁted

from a gold price that was up over 70% in the year.

Artemis/Lipper Limited.

We have tended to have little mining and oil & gas exposure as

we feel poorly placed to judge future directions in commodity

prices and we dislike the inherently high capital intensity of

most businesses in these sectors. This was to the detriment of

the portfolio last year.

After the transition period was complete, Artemis UK Future

Leaders performed roughly in line with the open-ended fund

we manage. While both had a poor second half, this was offset

by a much stronger start to the year for the open-ended fund.

We retain conﬁdence in both our process and the small-cap

opportunity over the long term.

Negatives

Future

(specialist media) and

Hilton Food Group

(food

packager) were our two biggest detractors. Although Future’s

earnings were reduced, the main negative came from the

multiple placed on those earnings which has fallen yet further.

For Hilton Foods, headwinds included high white-ﬁsh prices

and delays in getting one of its facilities signed off, having

previously discovered traces of listeria.

Orders fell at promotional products supplier

4imprint Group

but the expected hit to proﬁt margins from tariffs (most of its

products are made outside the US) failed to materialise. The

long-term prospects for the company remain compelling: it

offers an 8% free cashﬂow yield, has an excellent record of

taking market share and there is scope for further growth in a

fragmented market (despite being the leader, 4imprint’s

market share is only about 5%).

Gamma Communications

, a B2B provider of voice and data

services, was one of the best performers in our open-ended

fund in 2024, but more than gave up those gains last year.

Earnings expectations were pretty stable over 2025, meaning

the fall in the share price was again down to the market putting

a lower multiple on those earnings. Since the business was

listed in 2014 it has increased its earnings per share by 7x

(equivalent to a compound annual growth rate of 19%). It has

never traded on such a low valuation as it does today – 9x price

to earnings (P/E) or a 9% free cashﬂow yield. We added to our

position.

Positives

Since we took charge of the trust on 7 March, our defence

stocks have done well, with holdings in

Avon Technologies

Chemring Group

and

Serco Group

(which generates about

40% of its revenues from this area) rising strongly.

The portfolio’s single best performer during the period was

Secure Trust Bank

, which fell signiﬁcantly in October 2024

when three Court of Appeal decisions relating to motor ﬁnance

went against FirstRand Bank and Close Brothers (which we

don’t own). Aside from a potentially large compensation bill,

Secure Trust Bank also issued a proﬁt warning driven by a

slower recovery in its vehicle ﬁnance division, after the FCA’s

Borrowers in Financial Difficulty (BiFD) review led to a

temporary pause in collections and a higher default rate.

At the time, we felt that the shares offered substantial

potential upside, trading as they were at a 75% discount to

book value. Since then, they have rebounded past their

October 2024 starting price, with the company’s loss-making

vehicle ﬁnance book put into run-off and then subsequently

sold at a premium to its book value. The UK Supreme Court

largely overturned the Court of Appeal’s rulings albeit there is

still some uncertainty surrounding how the FCA will implement

a customer redress scheme.

Pawnbroker

H&T Group

and foreign exchange specialist

Alpha

Group

announced they were to be taken over, at premiums of

44% and 55% respectively to their pre-offer share prices. M&A

has been and is likely to remain a driver of performance.

Another is buybacks: we saw a record number of holdings in

our open-ended fund reduce their share count in 2025. We see

this as indicative of management teams expressing the view

that:

Their businesses have surplus capital (our median holding

is forecast to have no net debt);

They are conﬁdent in the outlook; and

Their share prices do not reﬂect fundamental value.

Activity

Upon taking management of the trust, it took us about

three months to rebalance it so it more closely reﬂected our

investment philosophy. There is now an overlap of more than

85% between the trust and our open-ended Artemis UK

Smaller Companies Fund.

After the initial rebalancing, some of our notable purchases

have included bakery Greggs, subsea equipment-rental ﬁrm

Ashtead Technology, specialist consultancy Science Group,

Bloomsbury Publishing and specialist electrical-component

manufacturer DiscoverIE. Although this is a disparate group of

companies, what unites them is attractive valuations

underpinned by strong cashﬂow, decent growth prospects and

leading market positions in their niches.

Outlook

We are currently in the second longest and second most

severe relative drawdown for UK small caps since 1955. You

may question whether the small-cap effect – smaller

companies’ long-term outperformance of their larger

counterparts – remains valid. We think the answer is a

resounding ‘yes’.

The small-cap effect is a global phenomenon. Since 2000 –

including the recent period of underperformance (which

extends beyond the UK) – there has been a positive small-cap

premium in all major global markets except for Taiwan.

Despite the compelling long-term numbers, there have been

sustained periods of underperformance. Small-cap returns are

lumpy. We do not know when the tide will turn, but when it

does, a sharp rebound is likely. In 44% of calendar years since

1955, returns have exceeded 20% – and 52 months into a

relative bear market does not feel like the time to capitulate

Meanwhile, UK mid and small caps remain cheap relative to

history – which is not the case for most equity markets around

the world. The FTSE 250 traditionally trades on a premium

(higher price-to-earnings ratio) to the FTSE 100, but the current

discount represents a 20-year relative low

. Valuations fall

further as you go down the market-cap spectrum. Meanwhile,

the FTSE 250 now has a higher dividend yield than the

FTSE 100

. Again, this last happened more than 20 years ago.

With small caps deriving about 60% of revenues from the UK,

compared with 20% for large caps

, these valuations make

sense if you think the economic outlook is dire. But we think it

isn’t.

Over the last few years, the UK economy has consistently

outperformed (admittedly low) consensus expectations set 12

months previously. With consumer spending accounting for

60% of the UK economy, we believe conﬁdence is the key to

unlocking small-cap returns. While it is currently moribund, we

are conﬁdent that when it improves, the impact on small-caps

will be material.

In the short term the recovery may (again) have been deferred

by the Iran conﬂict as inﬂation rises (rather than falls), interest

rate cuts are delayed and consumer sentiment hit. Real

incomes are now likely to be (broadly) ﬂat this year because of

higher inﬂation. However, the high starting point for the UK

household savings ratio (around 10%, double that of the US)

and low household debt (household debt to income has been

falling for 17 years

) means consumer spending growth is likely

to exceed expectations when conﬁdence recovers. The impact

of this recovery will be magniﬁed by the low starting valuations.

Unemployment, which has continued to tick up, is an

important risk. Our conversations with company management

teams give us conﬁdence we will not see a sudden spike in job

losses, but it is nevertheless the biggest threat to our macro

view. Working in the other direction is an improvement in the

participation rate (people working or actively looking for work).

The UK also has a relatively favourable medium-term outlook

for the working-age population, which is expected to grow.

Politics is generally far less important than commonly believed.

Local politics matters even less. Gilt spreads are already

elevated and a pivot to the left risks a further jump in borrowing

costs (which are negatively correlated with UK small caps).

Balancing the risks for 2026, we see signiﬁcant opportunity. As

at the end of March, the median holding in the fund was trading

on a P/E of 9x or a free cash ﬂow yield of 10%. This is cheaper

than at any point we can remember. This feels very attractive

as the businesses that we own are forecast on average to grow

their earnings by double digits, earn a return on their capital of

over 20% and have no debt.

Mark Niznik & William Tamworth

Artemis Fund Managers Limited

Portfolio managers from 10 March 2025

28 April 2026

Deutsche Numis UK Smaller Companies index (ex IT) relative to FTSE All-Share.

Panmure Liberum, LSEG Workspace.

Bloomberg.

Bank of England, Stifel.

ESG & stewardship at Artemis

Enhancing value for investors

Artemis believes stewardship activities can contribute to

better performing companies and therefore enhanced returns

for investors. We assess a broad range of investment factors

which can impact a company’s value, including environmental,

social and governance (ESG).

Our stewardship approach



We have an investment horizon of 3-5 years and therefore

look to assess material risks and opportunities over the

medium to long term.



Our approach focuses on:

–

an in-house research-intensive process

–

assessing ESG factors on a company speciﬁc basis both

as a source of risk, but also competitive advantage

–

direct access to management and boards.



We believe that good ESG analysis offers signiﬁcant scope

for better returns given the challenges of limited stock

coverage from traditional research providers and

inconsistent company reporting.



Meetings with management and board directors is

fundamental to our investment process. We have a

signiﬁcant number of company meetings every year.



Meaningful stock positions together with our long-term

focus have the potential to bring inﬂuence. We use

engagement and voting in combination to drive change

where necessary.

At Artemis, ESG analysis and integration, engagement, and

voting is the responsibility of each investment team, but they

work alongside the Stewardship & Sustainability Governance

Team whose role is to provide specialist insight, research,

analysis and discussion on these matters. The team also

participates in industry wide initiatives to develop and promote

best practices across the investment management industry

and the areas in which we invest.

We have not made any material changes to the Artemis

Stewardship, Engagement and Voting policies over the last 12

months. Our policies can be found in the literature section of

our website together with our latest Stewardship Report

which contains more information on our approach with

examples.

Stewardship activity – summary

Company meetings

226

Companies met 113

Engagement activities

Companies engaged

Stewardship activity – summary

Votable meetings

Meetings voted

100.0%

Meetings with against management votes

7 11.5%

Votable proposals

938

Proposals voted

938

100.0%

Votes against management

12 1.3%

Votes against policy

15 1.6%

Votes Against Management

Compensation 58%

Director Related 42%

Source: Artemis, ISS. Data from 10 March 2025 to 31 January 2026.

Examples of stewardship activity

ESG integration example

Coats Group

, a current portfolio holding, manufactures thread

and other products used in the clothing industry. Sustainability

is deﬁned as one of three “strategic enablers” (alongside

Innovation and Digital) that underpin the company’s goal to

accelerate proﬁtable sales growth. The company leverages its

sustainability leadership to win business from sustainable

brands and traditional retailers who are increasingly

demanding sustainable supply chains. Sustainability

compliance for customers is now a key factor in market share

gains, particularly in premium athleisure/sport segments. The

company’s four Innovation Hubs focus on materials of the

future, such as recycled and circular materials, to meet

evolving consumer requirements. This allows Coats to

maintain pricing power and improve margins through a more

favourable product mix. Recent acquisitions, such as

OrthoLite, share similar sustainability credentials, which

strengthens the overall quality of the portfolio. The company

has a long-term commitment to achieve net zero greenhouse

gas (GHG) emissions by 2050. Both near-term and long-term

targets have been approved by the Science-Based Targets

initiative (SBTi). The company has exceeded its Scope 1 & 2

emissions reduction target set for 2026 through renewable

energy adoption and has a target for 100% renewable

electricity sourcing by 2030. The Board also tracks other key

material factors such as health & safety, diversity and Great

Place to Work

metrics.

https://www.greatplacetowork.com/worlds-best-proﬁle/coats%20.

Engagement example

In 2023 Artemis became a supporting investor of the

investment ﬁrm CCLA’s CCLA’s Find it, Fix it, Prevent it initiative

(FIFIPI) – an investor led, multi stakeholder project involving

investors, academics and non-governmental organisations

aimed at making the corporate response to modern slavery

more effective.

As part of this initiative, we have been engaging with

Keller

Group

, the world’s largest geotechnical specialist contractor.

Given the nature of the business, and operations in more than

40 countries across ﬁve continents, we assessed modern

slavery as a potential investment risk. Our engagement with

the company has been constructive and shown commitment

to advancing its approach. The company has taken learnings

from its work in improving health and safety practices. Since

our engagement commenced in January 2024, Keller has

published three updated Modern Slavery statements, annually

each February, which set out enhancements to its work in this

area, for example through the use of more robust language on

supplier requirements and an extended section on compliance,

performance and further steps highlighting enhanced due

diligence processes.

We have had a number of calls with the CEO and Head of

Sustainability on this topic and the progress made has been

recognised in the updated FIFIPI assessment of the company

(June 2025) with Keller’s overall score materially improving and,

as a result, Keller has now moved up from Tier 4 to Tier 3 (out

of 5) which is deﬁned as ‘Meeting and Exceeding minimum

expectations’.

Voting example

We voted against a resolution to approve the growth incentive

plan at our holding in UK-based travel retailer,

On the Beach

Group

(EGM September 2025), due to the plan’s lack of a

monetary cap, which could result in disproportionately large

payouts to the executive directors. The plan’s single earnings

per share (EPS) target need only be met in any one year of a

ﬁve-year period, which may reduce motivational effectiveness

and lead to awards vesting even if performance declines later,

raising concerns about long-term alignment. While mitigated

by a ﬁve-year holding period, the overall structure was

considered too aggressive and insufficiently risk-adjusted. We

shared our reservations about the plan with the company

ahead of the meeting and our decision to vote against was

consistent with that feedback. The proposal received

noticeable dissent of 18%.

Portfolio of investments at 31 January 2026

Market Value

Portfolio Exposure*

Company

Sector

£’000

IntegraFin

Holdings

Investment Banking and Brokerage Services

2,488

4,012^

3.0

GB Group

Software and Computer Services

3,195

3,910^

2.9

Secure Trust Bank

Banks

3,687

2.7

Mears Group

Industrial Support Services

3,676

2.6

MONY Group

Software and Computer Services

3,385

3,676^

2.6

Moonpig

Group

Retailers

3,137

3,484^

2.5

Coats Group

General Industrials

3,418 3,418 2.4

NCC Group

Software and Computer Services

2,297

3,283^

2.3

Serco Group

Industrial Support Services

3,106 3,106 2.2

Morgan Sindall Group

Construction and Materials

3,090

2.2

Wilmington

Media

2,227

3,001^

2.1

Hollywood Bowl Group

Travel and Leisure

2,223

2,984^

2.1

Victorian Plumbing Group

ᴬᴵᴹ

Retailers

2,916 2,916 2.1

Telecom

Plus

Electricity

2,525

2,902^

2.1

Gamma Communications

Telecommunications Service Providers

2,279

2,836^

2.0

Young & Co’s Brewery - Non-Voting

ᴬᴵᴹ

Travel and Leisure

2,761 2,761

2.0

Next 15 Groupᴬᴵᴹ

Media

2,721 2,721 1.9

Restoreᴬᴵᴹ

Industrial Support Services

2,690

1.9

4imprint

Group

Media

2,651 2,651 1.9

Oxford Instruments

Electronic and Electrical Equipment

2,500

1.8

DFS Furniture

Retailers

2,478 2,478 1.8

On the Beach Group

Travel and Leisure

2,432 2,432 1.7

Brooks Macdonald Group

Investment Banking and Brokerage Services

2,386

1.7

Halfords Group

Retailers

2,327 2,327 1.7

Chemring Group

Aerospace and Defence

2,327 2,327 1.7

Norcros

Construction and Materials

1,243

2,297^

1.6

Wickes Group

Retailers

2,261 2,261 1.6

RWSᴬᴵᴹ

Industrial Support Services

2,234

1.6

Future

Media

1,118

2,226^

1.6

Avon Technologies

Aerospace and Defence

2,129 2,129 1.5

Greggs

Personal Care, Drug and Grocery Stores

2,128 2,128 1.5

Netcall

ᴬᴵᴹ

Software and Computer Services

2,125 2,125 1.5

Dunelm Group

Retailers

2,040

1.5

GlobalData

ᴬᴵᴹ

Industrial Support Services

2,030

1.5

MJ Gleeson

Household Goods and Home Construction

1,991 1,991 1.4

Tatton Asset Management

ᴬᴵᴹ

Investment Banking and Brokerage Services

1,987 1,987 1.4

Kainos Group

Software and Computer Services

1,968 1,968 1.4

Johnson Service Group

Industrial Support Services

1,949 1,949 1.4

YouGovᴬᴵᴹ

Media

1,862 1,862 1.3

NIOX Group

ᴬᴵᴹ

Medical Equipment and Services

1,830 1,830 1.3

Henry Boot

Real Estate Investment and Services

1,161 1,821^ 1.3

Ashtead

Technology

Oil, Gas and Coal

1,795 1,795 1.3

TT Electronics

Technology Hardware and Equipment

1,792 1,792 1.3

LBG Media

ᴬᴵᴹ

Media

1,778 1,778 1.3

Science Group

ᴬᴵᴹ

Industrial Support Services

1,764 1,764 1.3

Keller Group

Construction and Materials

1,675 1,675 1.2

discoverIE Group

Electronic and Electrical Equipment

1,663 1,663 1.2

Energean

Oil, Gas and Coal

1,651

1.2

Market Value

Portfolio Exposure*

Company

Sector

£’000

Harworth Group

Real Estate Investment and Services

382

1,630^

1.2

Hilton Food Group

Food Producers

1,606 1,606

1.1

Bloomsbury Publishing

Media

721 1,602^

1.1

D Wetherspoon

Travel and Leisure

1,543 1,543

1.1

Workspace Group

Real Estate Investment Trusts

1,484 1,484

1.1

Severﬁeld

Construction and Materials

1,387 1,387 1.0

Jadestone Energy

ᴬᴵᴹ

Oil, Gas and Coal

1,381 1,381 1.0

Morgan Advanced Materials

Electronic and Electrical Equipment

1,361 1,361 1.0

Accesso Technology Group

ᴬᴵᴹ

Software and Computer Services

1,178 1,178

0.8

Beeks Financial Cloud Group

ᴬᴵᴹ

Software and Computer Services

1,058 1,058

0.8

CLS

Real Estate Investment and Services

998

0.7

M&C Saatchi

ᴬᴵᴹ

Media

997

0.7

Warpaint London

ᴬᴵᴹ

Personal

Goods

882

0.6

Victrex

Chemicals

806

0.6

SIG

Industrial Support Services

717 717

0.5

FDM Group

Industrial Support Services

673

0.5

Videndum

Industrial Engineering

162 162 0.1

Total Investments: 65 (31 January 2025: 60)

128,432

139,715

100.0

Ordinary

shares unless stated otherwise.

* The Portfolio Exposure indicates the impact on market price movements resulting from the ownership of shares and derivative instruments. The Market Value represents the fair value of

the portfolio, which is reﬂected on the Balance Sheet. In the case of holding a Contract for Difference (CFD), the Market Value reﬂects the proﬁt or loss generated by the contract since its

inception, based on the movement of the underlying share price. CFDs provide investors with the beneﬁts and risks of owning a security without actually owning it. There is no delivery of

physical goods or securities, which means that CFDs are generally regarded as an easier method of settlement because losses and gains are paid in cash. CFDs are disclosed in Derivative

assets/liabilities at market value in the Balance Sheet on page 48. However, when the Company solely holds shares, both the Market Value and the Portfolio Exposure align.

AIM

Investments quoted on AIM.

^ Includes CFD position.

Market cap analysis of the portfolio

>£2bn

£1.5bn to £2bn

£1bn to £1.5bn

£500m to £1bn

£250m to £500m

<£250m

% of portfolio exposure

Industry analysis of the portfolio

Consumer

Discretionary

Industrials

Technology

Financials

Real Estate

Telecommunications

Energy

Utlities

Consumer

Staples

Health Care

Basic Materials

% of portfolio exposure

Market analysis of the portfolio

FTSE 250

Main

market

AIM Quoted

% of portfolio exposure

Strategy and business review

Purpose, culture, business model and strategy

Artemis UK Future Leaders plc is an investment company and

its investment objective is set out below. The strategy the

Board follows to achieve that objective, is to set investment

policy and risk guidelines, together with investment limits,

and to monitor how they are applied. These are also set out

below and have been approved by shareholders.

The Company’s purpose is to generate returns for shareholders

by investing their pooled capital to achieve the Company’s

investment objective through the application of its investment

policy and with the aim of spreading investment risk.

As the Company has no employees, the business model the

Company has adopted to achieve its objective has been to

contract its operations to appropriate external service

providers. The Board has oversight of the Company’s service

providers, and monitors them on a formal and regular basis.

The Board has a collegiate culture and pursues its ﬁduciary

responsibilities with independence, integrity and diligence,

taking advice and outside views as appropriate and

constructively challenging and interacting with service

providers.

Up until 9 March 2025, the Company had contracted the

services of Invesco Fund Managers Limited (‘IFML’). IFML had

delegated portfolio valuation, fund accounting and

administrative services to The Bank of New York Mellon,

London Branch. The Bank of New York Mellon (International)

Limited (‘BNYMIL’) were the appointed depositary and

custodian.

With effect from 10 March 2025, the Board has appointed

Artemis Fund Managers Limited (‘Artemis’) as the Company’s

investment manager (the ‘Manager’) to manage the portfolio

in accordance with the Board’s strategy and under its

oversight. The Portfolio Managers responsible for the day to

day management of the portfolio are Mark Niznik and William

Tamworth. The Northern Trust Company, London Branch, has

been appointed as fund administration service provider.

Northern Trust Investor Services Limited are now custody and

depositary service provider and ﬁnally Northern Trust

Secretarial Services (UK) Limited has assumed the role of

Company Secretary.

Contractual arrangements remain in place with MUFG

Corporate Markets (formerly known as Link Group) to act as

registrar.

Investment objective

The Company is an investment trust whose investment

objective is to achieve long-term total returns for shareholders,

primarily by investment in a broad cross-section of small to

medium sized UK quoted companies.

Investment policy

The portfolio primarily comprises shares traded on the London

Stock Exchange and those traded on AIM. The Portfolio

Managers can also invest in unquoted securities, though these

are limited to a maximum of 5% of gross assets at the time of

acquisition.

The Manager seeks to outperform its benchmark, the

Deutsche Numis Smaller Companies + AIM (excluding

Investment Companies) Index with dividends reinvested. As a

result, the Manager’s approach can, and often does, result in

signiﬁcant overweight or underweight positions in individual

stocks or sectors compared with the benchmark. Sector

weightings are ultimately determined by stock selection

decisions. Risk diversiﬁcation is sought through a broad

exposure to the market, where no single investment may

exceed 5% of the Company’s gross assets at the time of

acquisition. The Company may utilise index futures to hedge

risk of no more than 10% and other derivatives (including

warrants) of no more than 15%. In addition, the Company will

not invest more than 10% in collective investment schemes or

investment companies, nor more than 10% in non-UK

domiciled companies. All these limits are referenced to gross

assets at the time of acquisition.

Borrowings under this investment policy may be used to raise

market exposure up to the lower of 30% of NAV and £25 million.

Dividend policy

The Company’s dividend policy is to distribute all available

revenue earned by the portfolio in the form of dividends to

shareholders. In addition, the Board has approved the use of

the Company’s capital reserves to enhance dividend payments.

Therefore, the total dividend, paid to shareholders on a

quarterly basis, comprises income received from the portfolio,

with the balance coming from realised capital proﬁts. Whilst

not guaranteed, in normal circumstances, the dividend for the

year ending 31 January is calculated to give a yield of 4% based

on the year end share price. It does not include any preliminary

charges and investors may be subject to tax on dividends

received.

Performance

The Board reviews performance by reference to a number of

Key Performance Indicators which include the following:



the movement in the NAV per share on a total return basis:

Details on the movement in the NAV per share on a total

return basis is provided in the Total returns table on page 3.



the NAV and share price performance relative to the

Benchmark Index and the peer group:

The Board regularly reviews the Company’s performance

against the Benchmark Index and the peer group at each

Board meeting. Information on the Company’s performance

can be found in the Chairman’s statement on page 4 and the

Investment Managers’ review from page 6.



the discount/premium to NAV:

The Board monitors the price of the Company’s shares in

relation to their NAV and the premium/discount at which

the shares trade. Further information on the Company’s

discount to NAV over the course of the year can be found

on page 3.



dividend per share:

As stated above, the Company’s dividend policy includes a

target dividend yield of 4% of year end share price. Further

information on the three interim dividends and proposed

ﬁnal dividend for the year ended 31 January 2026 are

provided in the Chairman’s Statement on page 4.



the ongoing charges:

The ongoing administrative costs of operating the Company

are encapsulated in the ongoing charges ratio, which is

calculated in accordance with guidance issued by the

Association of Investment Companies (‘AIC’). The ongoing

charges ratio provides a guide to the effect on performance

of annual operating costs. The Board monitors the

Company’s expenditure at each Board meeting and on an

annual basis the Board reviews an analysis which shows a

comparison of the Company’s ongoing charges and its main

expenses with those of its peers.

The ongoing charges for the year ended 31 January 2026

was 1.00% (2025: 1.03%).

Further details on the calculation of the ongoing charges is

shown on page 3.

Results and dividends

In the year ended 31 January 2026, the NAV total return was –

0.0%, compared with a total return on the Benchmark Index

16.1%. The discount at the year end was 11.2% (2025: 16.6%).

For the year ended 31 January 2026, three interim dividends of

3.85p per share were paid to shareholders in August and

December 2025 and March 2026. Subject to shareholder

approval, a ﬁnal dividend of 3.89 per share will be paid on

11 June 2026 to shareholders on the register on 8 May 2025.

This will give total dividends for the year of 15.44p (2025:

15.00p), representing a yield of 4.0% based on the share price

as at 31 January 2026. Further details are provided in the

Chairman’s statement on page 4. Of the total dividend, 80.7%

(2025: 86.8%) was generated from revenue in the year. The

remainder was funded from realised capital reserves and

represents 0.7% (2025: 0.3% from realised capital reserves) of

the year end net assets.

Capital structure

The capital structure of the Company as at 31 January 2026

consisted of 49,826,436 ordinary shares of 20p each in issue, of

which 20,059,743 ordinary shares were held in treasury.

Therefore, the Company’s total voting rights were 29,766,693

ordinary shares. The Company bought back into treasury

606,699 ordinary shares at an average price of 372.76p.

Financial position and borrowings

At 31 January 2026, the Company’s net assets were valued at

£129 million (2025: £137 million), comprising a portfolio of

equity investments, CFDs and net current assets, with no

borrowings (2025: £12.4 million). Although as mentioned below

use

of CFDs created gearing of 8.2%.

Borrowings and derivatives are used by the Company for

gearing. This may enhance the total return on its shares when

the value of the company’s assets is rising and exceeds the cost

of borrowings, but it may have the opposite effect when the

value is falling and when the underlying return is less than the

cost of borrowing, thus reducing the total return on the

shares. They may also increase the volatility of the returns to

shareholders and the net asset value per share. The Company

currently utilises Contracts for Difference (CFDs), often

referred to as Equity Swaps for the purposes of gearing. Given

the current investment policy, this effectively limits gearing to

15% of Net Asset Value. In practice, Board approval would be

sought to increase gearing through CFDs above 10%. Net

gearing through CFDs was 8.2% as at year end.

Outlook, including the Future of the Company

The main trends and factors likely to affect the future

development, performance and position of the Company’s

business can be found in the Investment Manager’s review. A

triennial vote is held on the continuation of the Company with

the next one being at the AGM in June 2027. Details of the

principal risks affecting the Company are set out under

‘Principal risks and uncertainties’ below.

Principal risks and uncertainties

The Directors conﬁrm that they have carried out a robust

assessment of the emerging and principal risks facing the

Company, including those that would threaten its business

model, future performance, solvency or liquidity. Most of these

risks are market related and are similar to those of other

investment trusts investing primarily in listed markets. The

Audit Committee reviews the Company’s risk control summary

at each meeting, and as part of this process, gives

consideration to identifying emerging risks. Emerging risks,

such as evolving cyber threats, geo-political tensions and

climate related risks, have been considered during the period

as part of the Directors’ assessment.

Principal risk description

Mitigating procedures and controls

Market (economic) risk

Factors such as ﬂuctuations in stock markets, interest rates

and exchange rates are not under the control of the Board or

the Portfolio Managers, but may give rise to high levels of

volatility in the share prices of investee companies, as well as

affecting the Company’s own share price and the discount to

its NAV. The risk could be triggered by unfavourable

developments globally and/or in one or more regions,

contemporary examples being the market uncertainty in

relation to the wider political developments in Ukraine, the

Middle East and the worldwide tariffs implemented by the

USA.

The Directors have assessed the market impact of the ongoing

uncertainty from the unfavourable developments globally

through regular discussions with the Portfolio Managers and

the Corporate Broker. The Company’s current portfolio consists

of companies listed on the main UK equity market and those

listed on AIM. To a limited extent, futures can be used to

mitigate against market (economic) risk, as can the judicious

holding of cash or other very liquid assets. Futures are not

currently being used.

Investment

risk

The Company invests in small and medium-sized companies

traded on the London Stock Exchange or on AIM. By their

nature, these are generally considered riskier than their larger

counterparts and their share prices can be more volatile, with

lower liquidity. In addition, as smaller companies may not

generally have the ﬁnancial strength, diversity and resources

of larger companies, they may ﬁnd it more difficult to overcome

periods of economic slowdown or recession.

The Portfolio Managers seek to mitigate risk through holding

an economically diversiﬁed portfolio without concentrated

macroeconomic bets. UK Smaller Companies in aggregate earn

approximately 60% of their revenues from the domestic UK

economy so the portfolio will be sensitive to both the UK

macro economic outlook and sentiment towards the UK. The

Manager’s preference is to invest in companies with strong

balance sheets and strong cash generation which should be

relatively better positioned to withstand economic shocks.

They like companies with market leading positions which tend

to be better able to pass through price increases to mitigate

cost inﬂation.

The portfolio is constructed without reference to the

benchmark. The weighting that a stock is given is a function of

anticipated share price upside, the level of conviction and the

riskiness of an investment. A single holding will typically not

exceed 5% of the portfolio. The factor proﬁle of the portfolio is

also principally driven by bottom-up stock picking although our

investment risk team generates factor analysis for the

investment team to review on a regular basis.

Sustainability analysis is a core part of stock analysis in both

assessing the opportunities and risks facing companies over

the medium to long term. The Manager identiﬁes key ESG

metrics for each company and tracks the disclosure and trend

of these. Disclosures by companies in the investment universe

can often be poor, so this is an area they engage on.

Principal risk description

Mitigating procedures and controls

Investment risk continued

The Portfolio Managers remain cognisant at all times of the

potential liquidity of the portfolio. There can be no guarantee

that the Company’s strategy and business model will be

successful in achieving its investment objective. The Board

monitors the performance of the Company, giving due

consideration to how the Manager has incorporated ESG

considerations including climate change into their investment

process. The Board also has guidelines in place to ensure that

the Managers adhere to the approved investment policy. The

continuation of the Manager’s mandate is reviewed annually.

Shareholders’

risk

The value of an investment in the Company may go down as

well as up and an investor may not get back the amount

invested. In addition, the Company operates within the UK

investment trust sector, which has recently experienced

increased levels of shareholder activism and other forms of

corporate activity targeting listed investment companies. Such

activity could create uncertainty regarding the Company’s

future, increase costs and management distraction, and may

result in corporate actions that do not align with the long-term

interests of all shareholders.

The Board regularly reviews the Company’s investment objective

and strategy to ensure they remain appropriate. It also monitors

the composition of the shareholder register, peer group

performance on both a share price and NAV basis, and the

Company’s share price discount to NAV per share. The Board

and the Portfolio Managers maintain an active dialogue with

shareholders and other stakeholders, seeking to ensure that the

market rating of the Company’s shares reﬂects the underlying

NAV and to understand investor concerns at an early stage.

Share buyback and issuance authorities are in place to support

the management of the discount and premium as appropriate.

The Board remains alert to the potential for shareholder activism

and is prepared to respond as necessary, with a focus on

protecting the long-term interests of all shareholders.

Reliance on the Manager and other third-party service

providers

The Company has no employees and the Board comprises non-

executive directors only. The Company is therefore reliant upon

the performance of third-party service providers for its

executive function and service provisions. The Company’s

operational structure means that all cyber risk (information and

physical security) arises at its third-party service providers,

including the risk of fraud, sabotage or crime against the

Company. The Company’s operational capability relies upon the

ability of its third-party service providers to continue working

throughout the disruption caused by a major event such as the

Covid-19 pandemic. Failure by any service provider to carry out

its obligations to the Company in accordance with the terms of

its appointment could have a materially detrimental impact on

the operation of the Company and could affect the ability of the

Company to successfully pursue its investment policy. The

Company’s main service providers, of which the Manager is the

principal provider, are listed on page 75.

The Manager may be exposed to reputational risks. In

particular, the Manager may be exposed to the risk that

litigation, misconduct, operational failures, negative publicity

and press speculation, whether or not it is valid, will harm its

reputation. Damage to the reputation of the Manager could

potentially result in counterparties and third parties being

unwilling to deal with the Manager and by extension the

Company, which carries the Manager’s name. This could have

an adverse impact on the ability of the Company to pursue its

investment policy successfully.

Third-party service providers are subject to ongoing monitoring

by the Manager and the Board.

The Manager reviews the performance of all third-party

providers regularly through formal and informal meetings.

The Audit Committee reviews regularly the performance and

internal controls of the Manager and all third-party providers

through audited service organisation control reports together

with updates on information security, the results of which are

reported to the Board.

The Manager’s business continuity plans are reviewed on an

ongoing basis and the Directors are satisﬁed that the Manager

has in place robust plans and infrastructure to minimise the

impact on its operations so that the Company can continue to

trade, meet regulatory obligations, report and meet

shareholder requirements. The Board receives regular update

reports from the Manager and third-party service providers on

business continuity processes and has been provided with

assurance from them all insofar as possible that measures are

in place for them to continue to provide contracted services to

the Company.

Principal risk description

Mitigating procedures and controls

Regulatory

risk

The Company is subject to various laws and regulations by

virtue of its status as an investment trust, its listing on the

London Stock Exchange and being an Alternative Investment

Fund under the UK AIFMD regime. A loss of investment trust

status could lead to the Company being subject to corporation

tax on the chargeable capital gains arising on the sale of its

investments. Other control failures, either by the Manager or

any other of the Company’s service providers, could result in

operational or reputational problems, erroneous disclosures or

loss of assets through fraud, as well as breaches of regulations.

The Manager reviews the level of compliance with tax and

other ﬁnancial regulatory requirements on a regular basis. The

Board regularly considers all risks, the measures in place to

control them and the possibility of any other risks that could

arise. The Manager’s Risk and Compliance function produce

annual reports for review by the Company’s Audit Committee.

Further details of risks and risk management policies as they

relate to the ﬁnancial assets and liabilities of the Company are

detailed in note 16 of this Annual Financial Report.

Long-term viability

Viability statement

In accordance with provision 31 of the UK Corporate

Governance Code 2024, the Directors have assessed the

prospects of the Company over a longer period than

12 months. The Company is an investment trust, a collective

investment vehicle designed and managed for long term

investment. While the appropriate period over which to assess

the Company’s viability may vary from year to year, the long

term for the purpose of this viability statement is currently

considered by the Board to be at least ﬁve years, with the life

of the Company not intended to be limited to that or any other

period.

The main risks to the Company’s continuation are: insufficient

liquidity to meet liabilities as they fall due; poor investment

performance over an extended period; shareholder

dissatisfaction through failure to meet the Company’s

investment objective; or the investment policy not being

appropriate in prevailing market conditions. Accordingly,

failure to meet the Company’s investment objective, and

contributory market and investment risks are deemed by the

Board to be principal risks of the Company and are given

particular consideration when assessing the Company’s long

term viability. Despite ongoing geopolitical tensions, including

the conﬂicts in Ukraine and the Middle East and the associated

uncertainty in global markets, the Directors remain conﬁdent

that the Company’s investment strategy will continue to serve

shareholders well over the longer term.

The investment objective of the Company has been

substantially unchanged for many years. The 2015 amendment

to the dividend policy gave some additional weight to targeting

increased dividend income to shareholders. This change does

not affect the total return sought or produced by the Manager

but was designed to increase returns distributed to

shareholders. The Board considers that the Company’s

investment objective remains appropriate. This is conﬁrmed

by contact with major shareholders.

Performance derives from returns for risk taken. The

Investment Manager’s review on page 6 sets out their current

investment strategy. There has been no material change in the

Company’s investment objective, however.

Demand for the Company’s shares and performance are not

things that can be forecast, but there are no current

indications that either or both of these may decline

substantially over the next ﬁve years so as to affect the

Company’s viability. The Directors have also considered the

continuation vote due to take place at the AGM in 2027 and

note that the outcome of the vote is dependent on future

performance and shareholder sentiment. Based on current

conditions and shareholder engagement, the Directors remain

conﬁdent that the Company’s investment strategy will

continue to serve shareholders over the longer term. The

Directors have a reasonable expectation that the Company will

be able to continue to operate and to meet its liabilities as they

fall due over the period and that the continuation vote in 2027

will be successful.

The Company is a closed end investment trust and can pursue

a long term investment strategy and make use of gearing to

enhance returns through investment cycles without the need

to maintain liquidity for investor redemptions.

Based on the above analysis, including review of the revenue

forecast for future years along with stress testing of the

portfolio liquidity and dividend sensitivity analysis, the

Directors conﬁrm that they expect the Company will continue

to operate and meet its liabilities, as they fall due, during the

ﬁve years ending January 2031.

capital

Shareholders authorised the Company to buyback up to

14.99% of the shares in issue at the 2025 AGM.

During the year, the Company bought back 606,699 ordinary

shares. As at 31 January 2026, 20,059,743 ordinary shares are

held in treasury.

A resolution to renew the Company’s buyback authority will be

put to shareholders at the AGM on 2 June 2026.

No ordinary shares were issued during the year.

Duty to promote the success of the Company

The Directors have a statutory duty under Section 172 of the

Companies Act 2006 to promote the success of the Company

whilst also having regard to certain broader matters, including

the need to engage with employees, suppliers, customers and

others, and to have regard to their interests. The Company has

no employees and no customers in the traditional sense and

in accordance with the Company’s nature as an investment

trust, the Board’s principal concern has been, and continues to

be, the interests of the Company’s shareholders taken as a

whole. In doing so, it has due regard to the impact of its actions

on other stakeholders including the Manager, other third-party

service providers and the impact of the Company’s operations

on the community and the environment which are all taken

into account during all discussions and as part of the Board’s

decision making.

The Board is committed to maintaining open channels of

communication and engagement with stakeholders in a

manner which they ﬁnd most meaningful. The table below sets

out how the Board engages with each of its key stakeholders:

Stakeholder

Key considerations and engagement

Shareholders

Manager & other key

third-party service providers

Investee companies

The Board endeavours to provide shareholders with a full understanding of the Company’s

activities and reports formally to shareholders each year by way of the Half-Yearly and Annual

Financial Reports. This is supplemented by the daily publication of the net asset value of the

Company’s ordinary shares on the London Stock Exchange website, and monthly factsheets.

Shareholders who attend the AGM can meet the Board and the Portfolio Managers and have

the opportunity to hear directly from the Portfolio Managers and ask questions. For

shareholders who are unable to attend the AGM, a video update from the Portfolio Managers will

be available on the Company’s website after the AGM. Shareholders can also visit the Company’s

website,

https://www.artemisfunds.com/futureleaders to access copies of Half-Yearly and Annual

Financial Reports, shareholder circulars, factsheets and Stock Exchange announcements.

There is a regular dialogue between the Board, the Manager and institutional shareholders to

discuss aspects of investment performance, governance and strategy and to listen to

shareholder views in order to help to develop an understanding of their issues. Meetings

between the Manager and institutional shareholders are reported to the Board, which monitors

and reviews shareholder communications on a regular basis.

The Board engages representatives of the Manager at every Board meeting and receives

updates from the Portfolio Managers on a regular basis outside of these meetings.

At every Board meeting the Directors receive an investor relations update from the Manager,

which details any signiﬁcant changes in the Company’s shareholder register, shareholder

feedback, as well as notiﬁcations of any publications or press articles.

In order to function as an investment trust with a premium listing on the London Stock

Exchange, the Company relies on a diverse range of reputable advisers for support in meeting

all relevant obligations. The Board, through the Manager, maintains regular contact with its key

external service providers and receives regular reporting from them, both through the Board

and committee meetings, as well as outside of the regular meeting cycle. Their advice, as well

as their needs and views are routinely taken into account.

The Board (through the Management Engagement Committee) formally assesses the third-party

service providers’ performance, fees and continuing appointment on an annual basis to ensure

that the key service providers continue to function at an acceptable level and are appropriately

remunerated to deliver the expected level of service.

The Audit Committee reviews and evaluates the ﬁnancial reporting control environments in

place at each service provider.

On the Company’s behalf the Investment Manager engages with investee companies,

particularly in relation to ESG matters and shares held in the portfolio are voted at general

meetings.

An example of how the Manager engaged with an investee company during the year can be

found on page 10.

Stakeholder

Key considerations and engagement

Association of Investment

Companies (‘AIC’)

The Company is a member of the AIC, which looks after the interests of investment trusts and

provides information to the market. Comprehensive information relating to the Company can

be found on the AIC website.

As a member of AIC, the Company is welcomed to comment on consultations and proposal

documents on matters affecting the Company and annually to nominate and vote for future

AIC board members.

Some of the key discussions and decisions the Board made

during the year were:



to appoint Artemis Fund Managers Limited from 10 March

2025 following a review of the Company’s investment

management arrangements.



to approve the use of CFDs for the purposes of gearing, in

place of a revolving credit facility, with a view to providing

maximum ﬂexibility at a lower cost. This required a minor

change to the investment policy which was approved by

shareholders at the 2025 AGM.



to approve an enhanced share buyback programme in late

2025 to address the persistent discount, improve liquidity

and to reduce the threat from activist investors.



to continue as a three person Board following the

resignation of Simon Longfellow as at 31 December 2025.



in line with the Company’s dividend policy and subject to

shareholder approval of the ﬁnal dividend, the Board agreed

to pay total dividends for the year ended 31 January 2026 of

15.44p per share. Dividends were paid from a combination

of current year revenue and capital reserves. Factors the

Board took into consideration in deciding the 2026

dividends included: shareholder expectations, revenue

generated by the Company during the year, revenue

forecasts for the current ﬁnancial year and the capacity of

the Company to pay dividends out of its reserves.

Board diversity

The Board considers diversity, including the balance of skills,

knowledge, experience and gender amongst other factors when

reviewing its composition and appointing new directors. The

Board continues to recognise the importance of having a range

of skilled and experienced individuals with the right knowledge

represented on the Board in order to allow it to fulﬁl its obligations.

In view of its relatively small size, the Board will continue to

ensure that all appointments are made on the basis of merit

against the speciﬁcation prepared for each appointment. In

doing so, the Board will seek to meet the targets set out in the

FCA’s UK Listing Rule (‘UKLR’) 6.6.6R (9)(a), which are

summarised below.

In accordance with UKLR 6.6.6R (9), (10) and (11) the Board has

provided the following information in relation to its diversity as

at 31 January 2026, being the ﬁnancial year end of the

Company. The information included in the tables below has

been obtained following conﬁrmation from the individual

Directors. As shown in the tables, the Company did not meet

the FCA gender and ethnic diversity targets as at 31 January

2026. Given its small size, which it considers appropriate, and

the infrequency with which appointments are made, the Board

is aware that achieving these targets is more challenging. It will

be mindful of these targets when making any future

appointments and will continue to take all matters of diversity

into account as part of its succession planning.

Board Gender as at 31 January 2026

Number

Percentage

Number of

senior positions

Number in

executive

Percentage of

executive

Board members

of the Board

on the Board

management

Men

66.6%

n/a

Women

33.3%

n/a

The Company does not disclose the number of directors in executive management as this is not applicable for an investment trust.

Does not meet the target that at least 40% of Directors are women as set as set out in UKLR 6.6.6R (9)(a)(i).

The position of Chairman is held by a woman and therefore this meets the target of 1 as set out in UKLR 6.6.6R (9)(a)(ii).

Board Ethnic Background as at 31 January 2026

Number

Percentage

Number of

senior positions

Number in

executive

Percentage of

executive

Board members

of the Board

on the Board

management

White British or other White (including

minority-white groups) 3

100%

n/a

Minority

ethnic

n/a

The Company does not disclose the number of directors in executive management as this is not applicable for an investment trust.

Does not meet the target that at least one Director is from a minority ethnic background as set as set out in UKLR 6.6.6R (9)(a)(iii).

There have been no changes since the year end that have affected the Company’s ability to meet the targets set in

UKLR 6.6.6R (9)(a).

Sustainability and environmental, social and governance

('ESG') matters

The Board recognises that the most material way in which the

Company can have an impact on ESG is through responsible

ownership of its investments. The Board has appointed

Artemis as Investment Manager, who engages actively with

investee companies undertaking extensive evaluation and

engagement on a variety of matters such as strategy,

performance, risk, dividend policy, governance and

remuneration. All risks and opportunities are considered as

part of the investment process in the context of enhancing the

long-term value of shareholders’ investments. This will include

matters relating to material environmental, human rights and

social considerations that will ultimately impact the

proﬁtability of a company or its stock market rating and hence

these matters are an integral part of Artemis’ thinking as

investors.

Further details are shown in ESG & stewardship at Artemis on

pages 9 and 10.

A greenhouse gas emissions statement is included in the

Directors’ report on page 29.

Modern Slavery Act 2015

The Company is an investment vehicle and does not provide

goods or services in the normal course of business or have

customers. Accordingly, the Directors consider that the

Company is not required to make any slavery or human

trafficking statement under the Modern Slavery Act 2015.

The Strategic Report was approved by the Board of Directors

on 28 April 2026.

Northern Trust Secretarial Services (UK) Limited

Corporate Company Secretary

IRECTORS AND

ORPORATE

OVERNANCE

Board of Directors

The Directors of the Company who were in office during the year and up to the date of signing were:

Bridget Guerin

Joined the Board on 8 May 2018 and

became Chairman on 8 June 2023. She

has spent almost 40 years in the

investment industry and has held

senior positions as marketing director

at Ivory & Sime and Schroders, where

she was responsible for the launch and

support of several investment trusts. She was also managing

director of Matrix Money Management Limited. She is a

non-

executive director of STS Global Income & Growth Trust plc.

Bridget is Chairman of York Racecourse and is a non-

executive director of Beverley Racecourse.

Graham Paterson

Joined the Board on 15 October 2019 and

was appointed as Chairman of the Audit

Committee on 11 June 2020. He is an

investment and financial services

professional with over 25 years’

experience in the private equity industry.

A Chartered Accountant,

Graham was one of the founding partners of SL Capital

Partners LLP (formerly Standard Life Investments (Private

Equity) Ltd), where he was a partner and board member until

2010. During his 13 years at SL Capital, he was one of the

managers of Standard Life Private Equity Trust plc and was a

member of the advisory boards to a number of leading private

equity fund managers. In 2013, Graham co-founded TopQ

Software Ltd which was acquired by eVestment Inc (now part

of NASDAQ Inc) in 2015. Graham is a non-executive director of

Baillie Gifford US Growth Trust plc, The Income & Growth VCT

plc, Diaceutics Plc and HgCapital Trust Plc. He is also non-

executive chairman of Datactics Limited.

Mike Prentis

Joined the Board on 22 February 2021.

Mike has 34 years of investment

management experience, most recently

at BlackRock where he was a Fund

Manager and Managing Director. For

many years he managed funds

investing in listed UK small and mid cap

companies. These funds included BlackRock Smaller

Companies Trust plc (2002 to 2019) and BlackRock

Throgmorton Trust plc (2008 to 2018). He was Head of the

BlackRock UK Small and Mid Cap Equities Team (2015 to 2017).

Previously, he worked in private equity, mainly helping to put

together management buyouts; he was a Local Director for 3i

Group plc. Mike qualified as a Chartered Accountant with Peat

Marwick Mitchell (now KPMG). He is also Senior Independent

Director and Chairman of the Remuneration Committee at

Central Asia Metals plc.

Simon Longfellow served during the year until his resignation

from the Board on 31 December 2025.

All Directors are non-executive, are considered independent

and are members of the Audit, Management Engagement,

Marketing and Nomination Committees.

Directors’ report

Introduction

The Directors have pleasure in presenting their report,

together with the audited ﬁnancial statements of the Company

for the year-ended 31 January 2026.

Business and status

The Company was incorporated and registered in England and

Wales on 7 May 1987 as a public limited company, registered

number 02129187. It is an investment company as deﬁned by

Section 833 of the Companies Act 2006 and operates as an

investment trust within the meaning of the Corporation Tax

Act 2010 and the Investment Trust (Approved Company) (Tax)

Regulations 2011. HM Revenue & Customs have approved the

Company’s status as an investment trust and, in the opinion of

the Directors, the Company has conducted its affairs so as to

enable it to maintain such approval.

Corporate

governance

The Corporate governance statement is set out on page 32 is

included in this Directors’ report by reference.

The Board

All directors are non-executive and all are regarded by the

Board as independent of the Company’s Manager. The

Directors have a range of business, ﬁnancial and asset

management skills as well as experience relevant to the

direction and control of the Company. Brief biographical details

of members of the Board are shown on page 24.

When considering the independence of directors, the Board

takes into account their experience and whether a director is

independent in character and judgement. The Board considers

that all directors are independent of the Company’s Manager.

Chairman

The Chairman of the Board is Bridget Guerin, and she has been

a member of the Board since May 2018 and Chairman since

June 2023. Bridget is an independent non-executive director

with no conﬂicting relationships.

Senior Independent Director

The Senior Independent Director is Mike Prentis. He is

available to shareholders if they have concerns which contact

through the normal channels of Chairman or Manager has

failed to resolve or for which such contact is inappropriate. No

such issues were raised during the year.

Board responsibilities

The Board has overall responsibility for the Company’s affairs.

The Directors are equally responsible under United Kingdom

law for promoting the success of the Company and for the

proper conduct of the Company’s affairs taking into

consideration the likely consequences of any decision in the

long-term; the need to foster business relationships with its

Manager and advisers; the impact of the Company’s operations

on the community and the environment; the desirability of the

Company maintaining a reputation for high standards of

business conduct; and the need to act fairly between

shareholders of the Company. This is reported in the Strategy

and business review section of the Strategic Report on

pages 15 and 16. The Board is committed to the prevention of

corruption in the conduct of the Company’s affairs and, taking

account of the nature of the Company’s business and

operations, has put in place procedures that the Board

considers adequate to prevent persons associated with it from

engaging in bribery for and on behalf of the Company and has

a zero tolerance approach towards the criminal facilitation of

tax evasion. In addition, the Board is responsible for ensuring

that the Company’s policies and activities are in the interests

of the Company’s shareholders and that the interests of

creditors and suppliers to the Company are properly

considered. The long-term success of the Company is

promoted by directing and supervising its affairs within a

framework of effective controls which enable risk to be

assessed and managed.

The schedule of matters reserved for decision by the Board is

available at the registered office of the Company and on the

Company’s website. The main responsibilities include: setting

the Company’s strategy, and its investment objective and

policies; ensuring that the Company’s obligations to

shareholders and others are understood and complied with;

approving accounting policies and dividend policy; managing

the capital structure; reviewing investment performance;

approving loans and borrowing; and assessing risk and

overseeing its mitigation.

The Board also seeks to ensure that shareholders are provided

with sufficient information, in order to understand the balance

between risk and reward to which they are exposed by holding

the Company’s shares, through the portfolio details given in the

Half-Yearly and Annual Financial Reports, factsheets and daily

NAV disclosures.

The Board meets on a regular basis at least four times each

year. Additional meetings are arranged as necessary. Board

meetings follow a formal agenda, which includes a review of

the investment portfolio with a report from the Manager on the

current investment position and outlook, strategic direction,

performance versus stock market indices and the Company’s

peer group, asset allocation, gearing policy, cash management,

revenue forecasts for the ﬁnancial year, marketing and

shareholder relations, corporate governance, regulatory

changes, industry best practice and other issues.

To enable the Directors of the Board to fulﬁl their roles, the

Manager ensures that all Directors have timely access to all

relevant management, ﬁnancial and regulatory information.

There is an agreed procedure for Directors, if thought

necessary in the furtherance of their duties, to take legal advice

at the Company’s expense up to an initial cost of £10,000,

having ﬁrst consulted with the Chairman.

The Board as a whole undertakes annually the responsibilities

for remuneration. The remuneration of Directors and their

shareholdings are reported on in more detail in the Directors’

remuneration report on pages 36 to 38.

The Directors conﬁrm that, so far as they are aware, there is no

relevant audit information of which the Company’s auditor is

unaware; and each Director has taken steps that he or she

ought to have taken as a Director to make himself/herself

aware of any relevant audit information and to establish that

the Company’s auditor is aware of that information. This

conﬁrmation is given and should be interpreted in accordance

with the provisions of Section 418 of the Companies Act 2006.

The Committees

The Board has four committees: the Audit Committee,

Nomination Committee, Management Engagement

Committee, and Marketing Committee. Each Committee has

written terms of reference, which clearly deﬁne each

Committee’s responsibilities and duties. The terms of reference

of each Committee are available for inspection at the AGM, at

the registered office address of the Company and also

available via the Company’s website.

Audit Committee

The composition and activities of the Audit Committee are

summarised in the Audit Committee report on pages 33 to 35,

which is included in this Directors’ report by reference.

Management Engagement Committee

The Board is considered small for the purposes of the AIC Code

and therefore the Management Engagement Committee

comprises the entire Board under the chairmanship of Mike

Prentis. The Committee meets annually to review the

investment management agreement with the Manager and to

review other key services provided to the Company.

During the year, the Committee continued its oversight of the

Company’s third party service providers. Following the Board’s

decision to appoint Artemis Fund Managers Limited as the

Company’s Investment Manager, the transition, was completed

smoothly with minimal disruption to the Company.

The Committee noted that as the new arrangements have only

been in place for part of the year, it was too early to carry out a

full performance review. The Committee will undertake a full

assessment of Artemis Fund Managers Limited once a full year

of activity has been completed.

In terms of other third-party providers, the Committee noted

the effective and collaborative approach taken by JPM

Cazenove, acting as Corporate Broker in ensuring the process

ran efficiently and at minimal cost to shareholders. MUFG, the

Registrar, continued to provide a consistent service

throughout.

Marketing Committee

The Marketing Committee’s overall purpose is to oversee the

sales and marketing efforts to refresh and expand the

Company’s shareholder base. The Committee is responsible

for: reviewing marketing plans, budgets, results of initiatives

and coverage by different channels; appointing and reviewing

the arrangements and service levels provided by any third-

party appointed to assist in marketing and sales activities.

All Directors are members of the Marketing Committee.

Bridget Guerin was appointed as Chair of the Committee on 14

January 2026 to replace Simon Longfellow who resigned from

the Board during the year.

During the year, the Committee held informal meetings with

the Manager’s marketing representatives to discuss marketing

activity proposals including budget; the Company’s website;

and to consider key messaging.

The Committee met once during the year to discuss the

proposals from the regular informal meetings and to review the

sales and marketing reports from the Manager.

Nomination Committee

The Nomination Committee is responsible for identifying and

nominating to the Board suitable candidates taking into

consideration any identiﬁed requirements and the following:

the ability of any new director to devote sufficient time to the

Company to carry out his or her own duties effectively; and the

beneﬁts of diversity (including gender). All Directors are

members of the Nomination Committee under the

chairmanship of Mike Prentis who replaced Bridget Guerin as

chairman of the Committee on 14 January 2026 .

The Committee meets at least once a year to review the Board’s

size, composition and structure, and to ensure an appropriate

balance of skills, experience, independence and knowledge of

the Company. The Committee will continue to ensure that all

appointments are made on the basis of merit against the

speciﬁcation prepared for each appointment and that diversity

forms part of the Committee’s deliberations. Further details on

Board diversity are on page 22.

The Committee met once during the year to review succession

planning and Board evaluation. During the year the Committee

reviewed the performance of the Chairman, the Board and its

sub-committees. Succession planning was also reviewed

taking into consideration the skills and tenure of the Directors.

No Director has a contract of employment with the Company.

Directors’ terms and conditions of appointment are set out in

letters of appointment which are available for inspection at the

registered office of the Company, via the Company’s website

and will also be available at the AGM.

Appointment, re-election and tenure of Directors

New Directors are appointed by the Board, following

recommendation by the Nomination Committee. The Articles

of Association require that a Director shall be subject to

election at the ﬁrst AGM after appointment and re-election at

least every three years thereafter. However, the Board has

resolved that all Directors shall stand for annual re-election at

the AGM.

On being appointed to the Board, Directors are fully briefed as

to their responsibilities and are frequently updated throughout

their term in office on industry and regulatory matters. The

Manager and the Board have formulated a programme of

induction training for newly appointed Directors. They have

also put arrangements in place to address ongoing training

requirements of Directors which include brieﬁngs from key

members of the Manager’s staff and ensure that Directors can

keep up to date with regulation, best practice and the changing

risk environment.

A Director’s tenure of office will normally be for up to

nine years, except that the Board may determine otherwise if

it is considered that the continued service on the Board of an

individual Director is in the best interests of the Company and

its shareholders. The Chairman’s tenure of office will also

normally be for up to nine years, except that the Board may

determine otherwise if it is considered that the continued

service on the Board of a Chairman, who has in addition served

a period of time as a Director, is in the best interests of the

Company and its shareholders. In such circumstances, the

Chairman may serve up to an aggregate 12 years as an officer

of the Company.

Performance appraisal

The Directors recognise the importance of the AIC Code’s

recommendations in respect of evaluating the performance of

the Board as a whole, the Audit Committee and individual

Directors.

The performance of the Board, its Committees and individual

Directors has been assessed during the year in terms of:

•

attendance at Board and Committee meetings;

•

the ability of Directors to make an effective contribution to

the Board and Committees created by the diversity of skills,

knowledge and experience each Director brings to

meetings; and

•

the Board’s ability to challenge independently the Manager’s

recommendations, to suggest areas of debate and to set the

future strategy of the Company.

For the year under review, the Board conducted its

performance evaluation through formal questionnaires and

discussion between the Directors and the Chairman/Senior

Independent Director respectively. The performance of the

Chairman is evaluated annually, with discussion of her

performance led by the Senior Independent Director.

The results of the most recent evaluation concluded that the

Chairman, Board and Committees of the Board are effective,

as are individual Directors. The Directors continue to provide

a good range of experience and backgrounds and continue to

make valuable contributions and demonstrate commitment to

their respective roles and in the Board’s considered view, all

Directors were independent.

Attendance at Board and Committee meetings

All Directors are considered to have a good attendance record at Board and Committee meetings of the Company. The following

table sets out the number of Directors’ meetings (including Committee meetings) held during the year ended 31 January 2026

and the number of meetings attended by each Director.

Management

Meetings

Board

Audit

Committee

Engagement

Committee

Marketing

Committee

Nominations

Committee

Number

of meetings held

Meetings

Attended:

Bridget

Guerin

10/10

3/3

1/1

Simon

Longfellow

8/9

3/3

Graham

Paterson

10/10

3/3

1/1

Mike

Prentis

9/10

3/3

1/1

Resigned from the Board on 31 December 2025.

An ad hoc Board meeting was held at short notice which Mike Prentis was unable to attend due to a longstanding personal commitment. Mike provided his feedback in advance of the

meeting so that his views could be taken into account in his absence.

Directors’ interests in shares

The Directors’ interests in the ordinary share capital of the

Company are disclosed in the Directors’ remuneration report

on page 37.

Disclosable

interests

No Director was a party to, or had any interests in, any contract

or arrangement with the Company at any time during the year

or at the year end. The Company has entered into a Deed of

Indemnity with each Director, as expanded upon below.

Conﬂicts of interest

The Articles of Association of the Company give the Directors

authority to approve conﬂicts and potential conﬂicts of

interest, and safeguards apply. First, only Directors who have

no interest in the matter being considered will be able to take

the relevant decision, and second, in taking the decision the

Directors must act in a way they consider, in good faith, will be

most likely to promote the Company’s success. Directors who

have potential conﬂicts of interest will not take part in any

discussions which relate to any of their potential conﬂicts. The

Directors are able to impose limits or conditions when giving

authorisation if they think this is appropriate.

The Directors have declared any potential conﬂicts of interest

to the Company. The Register of Potential Conﬂicts of Interests

is kept at the registered office of the Company. It is reviewed

regularly by the Board and Directors are obliged to advise the

Company Secretary as soon as they become aware of any

potential conﬂicts of interest.

Directors’ indemnities and insurance

The Company maintains Directors’ and Officers’ liability

insurance which provides appropriate cover for any legal

action brought against its Directors. In addition, deeds of

indemnity have been executed on behalf of the Company for

each of the Directors under the Company’s Articles of

Association. Subject to the provisions of UK legislation, these

deeds provide that the Directors may be indemniﬁed out of the

assets of the Company in respect of liabilities they may sustain

or incur in connection with their appointment.

Internal controls and risk management

The Directors acknowledge that they are responsible for

ensuring that the Company maintains a sound system of

internal controls to safeguard shareholders’ investment and

the Company’s assets. The Audit Committee, on behalf of the

Board, has established an ongoing process for identifying and

undertaking a robust assessment of the risks and emerging

risks to which the Company is exposed by reference to a risk

control summary, which maps the risks, mitigating controls in

place, and monitoring and reporting of relevant information to

it. The Audit Committee reviews, at least annually, the

effectiveness of the Manager’s system of internal controls,

including ﬁnancial, operational and compliance and risk

management systems. The Company’s system of internal

controls is designed to manage, rather than eliminate, the risk

of failure to achieve the Company’s objective, and can only

provide reasonable, and not absolute, assurance against

material misstatement or loss. The Audit Committee conﬁrms

that the necessary actions are taken to remedy any signiﬁcant

failings or weaknesses identiﬁed from their review.

There are no signiﬁcant failings or weaknesses that have

occurred throughout the year ended 31 January 2026 and up

to the date of this Annual Financial Report. The Audit

Committee reviews ﬁnancial reports and performance against

revenue forecasts, stock market indices and the Company’s

peer group. In addition, the Manager and custodian maintain

their own systems of internal controls and the Audit

Committee receives annual reports from the Risk and

Compliance function of the Manager. A formal report from the

depositary is reviewed at the year end audit committee; this

report sets out the results of the depositary’s monitoring

throughout the year, including safeguarding of assets and their

valuation, and monitoring of cash balances and net asset

values.

Formal System and Organisation Controls (‘SOC1’) reports are

also produced on the internal controls and procedures in place

for custodial and accounting activities, and these are reviewed

annually by the Audit Committee.

Going

concern

The ﬁnancial statements have been prepared on a going

concern basis.

The portfolio of investments is comprised entirely of quoted

securities and CFDs, and the ongoing charges are 1.0% of net

assets.

The Directors consider that the Company has adequate

resources to continue in operational existence for a period until

30 April 2027, being taken as at least 12 months after the signing

the balance sheet. In making this assessment, the Directors

took into account the liquidity of the portfolio, income

forecasts, the Company’s ability to meet all of its liabilities and

ongoing expenses as they fall due. In addition, these factors

were also considered under various stress-test scenarios and

the Directors were satisﬁed that the Company is a going

concern. The Company is subject to a continuation vote at the

AGM in 2027, which falls outside the period covered by this

going concern assessment. The Directors have considered this

in their assessment and note that the outcome of the vote is

dependent on future performance and shareholder sentiment.

Based on current conditions and shareholder engagement, the

Directors do not consider this to represent a material

uncertainty in respect of the Company’s ability to continue as

a going concern over the assessment period.

Related party transactions and transactions with the

Manager

Note 20 of the Company’s 2026 Annual Financial Report gives

details of related party transactions and transactions with

the Manager. This report is available on the Company’s

section of the Manager’s website at

www.artemisfunds.com/futureleaders.

The Manager

Artemis Fund Managers Limited served as the Company’s

Investment Manager for the majority of the year, following its

appointment with effect from 10 March 2025. This change

formed part of the Board’s review of the Company’s investment

management arrangements.

Company

Secretary

During the year, the Board had access to the advice and

support of Northern Trust Secretarial Services (UK) Limited,

who acted as the Company’s corporate secretary from

10 March 2025. Northern Trust Secretarial Services (UK)

Limited is responsible for ensuring that Board and Committee

procedures are followed, that the Company complies with all

applicable legal and regulatory requirements, and that timely

and accurate information is provided to the Board. The

Company Secretary also advises the Board, through the

Chairman, on governance matters and supports the discharge

of the Company’s statutory obligations.

Prior to 9 March 2025, company secretarial services were

provided by IAML.

Stewardship

The Board considers that the Company has a responsibility as a

shareholder to encourage that high standards of Corporate

Governance are maintained in the companies in which it invests.

The Company’s stewardship functions have been delegated to

the Manager who exercises the Company’s voting rights on an

informed and independent basis. To the extent that voting

rights and exercisable votes are cast it is with a view to

supporting high standards of corporate governance. The

Manager’s approach to corporate governance and the UK

Stewardship Code can be found on pages 9 and 10 and on the

Manager’s website at www.artemisfunds.com, together with a

copy of the Manager’s stewardship and proxy voting policies.

Relations with shareholders

Shareholder relations are given high priority by both the Board

and the Manager. The prime medium by which the Company

communicates with shareholders is through the Half-Yearly

and Annual Financial Reports, which aim to provide

shareholders with a full understanding of the Company’s

activities and their results.

This information is supplemented by the daily publication of

the NAV on the London Stock Exchange website, and the

monthly factsheets. At each AGM, a presentation is normally

made by the Portfolio Managers following the formal business

of the meeting and shareholders have the opportunity to

communicate directly with the whole Board. All shareholders

are encouraged to attend the AGM. For those unable to attend

in person, a video update from the Portfolio Managers will be

available on the Company’s website after the AGM.

Shareholders wishing to lodge questions in advance of the

AGM are invited to do so, either on the reverse of the proxy

card or in writing to the Company Secretary at the

correspondence address given on page 75.

Shareholders can also visit the Company’s website in order to

access Company speciﬁc information, including: the Half-

Yearly and Annual Financial Reports; portfolio managers’ video

updates; pre-investor information; Key Information Documents

(‘KIDs’); any shareholder circulars; proxy voting results;

factsheets; and Stock Exchange announcements.

The Board have been working with the Manager’s marketing

team to develop an enhanced marketing and communications

strategy for the company to help bolster the engagement with

shareholders.

Communication with the Board of Directors

There is a clear channel of communication between the Board

and the Company’s shareholders via the Company Secretary.

The Company Secretary has no express authority to respond

to enquiries addressed to the Board and all communications,

other than junk mail, are redirected to the Chairman for her

response.

There is also regular dialogue between the Manager and

individual major shareholders to discuss aspects of investment

Substantial shareholders

performance, governance and strategy and to listen to

shareholder views in order to help develop an understanding

of their issues and concerns. Regular insights from the

Portfolio Managers will be published on the website

throughout the year.

Greenhouse gas emissions

The Company has no employees or property, it does not

combust any fuel or operate any facility. The Company does

not purchase electricity, heat, steam or cooling for its own use.

Accordingly, the quantiﬁable amount of carbon dioxide

equivalent produced by the Company annually is zero tonnes.

All services are outsourced on a fee basis that is independent

of any energy expended on its behalf and it is not practical, or

required, for the Company to attempt to quantify emissions in

respect of such proxy energy use.

Taskforce for Climate-Related Financial Disclosures (“TCFD”)

In accordance with the FCA’s requirements under the

Environmental, Social and Governance Sourcebook, Artemis is

required to publish disclosures consistent with the Taskforce

on Climate-Related Financial Disclosures (“TCFD”) for the

period 1 January 2024 to 31 December 2024. The entity-level

TCFD report contains information about how Artemis manages

climate-related risks and opportunities in investment

portfolios and across its business operations and the product-

level TCFD report contains certain climate related metrics

required to be published for Artemis UK Future Leaders plc.

These TCFD reports, which were published on 30 June 2025,

can be found here:

www.artemisfunds.com/tcfd.

Capital structure

At 31 January 2026, the Company’s issued share capital

consisted of 29,766,693 ordinary shares and 20,059,743

treasury shares.

During the year, the Company had bought back into treasury

606,669 ordinary shares at an average price of 372.78p .

To enable the Board to take action to deal with any signiﬁcant

overhang or shortage of shares in the market, it seeks approval

from shareholders each year for the authority to buy back and

to issue shares.

The Company has been notiﬁed of the following holdings of 3% and over of the Company’s share capital carrying unrestricted

voting rights:

Substantial

shareholders

As at 31 March 2026

As at 31 January 2026

Hargreaves Lansdown, stockbrokers (EO)

3,597,710

12.17

3,717,996

12.49

Interactive Investor (EO)

3,028,755

10.24

3,029,502

10.18

1607 Capital Partners

2,947,477

9.97

3,267,374

10.98

West Yorkshire PF

2,354,020

7.96

2,104,020

7.07

London Wealth Management

1,547,006

5.23

–

0.00

AJ Bell, stockbrokers (EO)

1,145,008

3.87

1,124,375

3.78

Charles Stanley

1,108,660

3.75

1,233,276

4.14

Raymond James Investment Services

373,792

1.26

1,751,696

5.88

(EO: Execution Only).

Restrictions

There are no restrictions concerning the transfer of securities

in the Company; no special rights with regard to control

attached to securities; no agreements between holders of

securities regarding their transfer known to the Company; and

no agreements which the Company is party to that might

affect its control following a successful takeover bid.

Voting

At a general meeting of the Company, every shareholder has

one vote on a show of hands and, on a poll, one vote for each

share held. The notice of general meeting speciﬁes deadlines

for exercising voting rights either by proxy or present in person

in relation to resolutions to be passed at a general meeting.

Disclosure required by UK Listing Rule 6.6.4

The above rule requires listed companies to report certain

information in a single identiﬁable section of their Annual

Financial Report or a cross-reference table indicating where

the information is set out. The Directors conﬁrm that there are

no disclosures to be made in this regard for the year to

31 January 2026.

Individual Savings Accounts (‘ISA’)

The ordinary shares of the Company are qualifying investments

under applicable ISA regulations.

Business of the Annual General Meeting (‘AGM’)

The following summarises resolutions of the forthcoming AGM

of the Company, which is to be held on 2 June 2026 at

12.00pm.

The notice of the AGM and related notes can be found on

pages 63 to 67. All resolutions are ordinary resolutions unless

otherwise identiﬁed. The Board encourages shareholder

participation at AGMs and for those shareholders unable to

attend the AGM in person you are strongly encouraged to

lodge your vote either electronically via the Registrar’s online

portal, contacting your platform provider, or using a Form of

Proxy to appoint the Chairman of the AGM as your proxy to

vote on your behalf.

Resolution 1

is for members to receive and consider this

Annual Financial Report (‘AFR’), including the ﬁnancial

statements and auditor’s report.

Resolution 2

is to approve the Directors’ Remuneration Policy.

The Directors’ Remuneration Policy is set out on page 36 of this

AFR.

Resolution 3

is to approve the Annual Statement and Report

on Remuneration. It is mandatory for listed companies to put

their Annual Statement and Report on Remuneration to an

advisory shareholder vote. The Annual Statement and Report

on Remuneration is set out on page 36 of this AFR.

Resolution 4

is to approve the ﬁnal dividend of 3.89p for the

year ended 31 January 2026.

Resolutions 5 to 7

are to elect and re-elect Directors.

Biographies of the Directors can be found on page 24.

The directors will stand for re-election by shareholders at the

AGM. The Board has determined that each of the Directors is

independent, continues to perform effectively and

demonstrates commitment to their role. Their balance of

knowledge and skills combined with their diversity and

business experience makes a major contribution to the

functioning of the Board and its Committees.

Bridget Guerin had a long executive career in the investment

management industry with investment trust experience and

has brought her broad sector and marketing experience to the

Board. Graham Paterson is a chartered accountant with

extensive experience in the ﬁelds of private equity and other

early-stage investment vehicles. Mike Prentis has extensive

experience as a fund manager in the investment trust sector

and asset management industry.

Resolution 8

is to re-appoint Ernst & Young LLP (‘EY’) as auditor

to the Company.

Resolution 9

is to authorise the Audit Committee to determine

the auditor’s remuneration.

Special Business

Resolution 10

is an ordinary resolution to renew the Directors’

authority to allot shares. Your Directors are asking for authority

to allot new ordinary shares up to an aggregate nominal value

of £589,380 (10% of the Company’s issued share capital

(excluding Treasury Shares) at 24 April 2026). This will allow

Directors to issue shares within the prescribed limits should

opportunities to do so arise that they consider would be in

shareholders’ interests.

This authority will expire at the AGM in 2027 or 15 months

following the passing of this resolution, if earlier.

Special Resolution 11

is a special resolution to renew the

authority to disapply pre-emption rights. Your Directors are

asking for authority to issue new ordinary shares for cash up

to an aggregate nominal value of £589,380 (10% of the

Company’s issued share capital (excluding Treasury Shares) as

at 24 April 2026), disapplying pre-emption rights. This will allow

shares to be issued to new shareholders without them ﬁrst

having to be offered to existing shareholders, thus potentially

broadening the shareholder base of the Company. This

authority will not be exercised at a price below NAV (with debt

at fair value) and will expire at the AGM in 2027 or 15 months

following the passing of this resolution, if earlier.

Special Resolution 12

is to renew the authority for the

Company to purchase its own shares. Your Directors are

seeking authority for the purchase of up to 14.99% (being

4,417,402 ordinary shares) of the Company’s issued ordinary

share capital (excluding Treasury Shares) as at 24 April 2026,

subject to the restrictions referred to in the notice of the AGM.

This authority will expire at the AGM in 2027 or 15 months

following the passing of this resolution, if earlier. Your Directors

are proposing that shares bought back by the Company either

be cancelled or, alternatively, held as treasury shares with a

view to their resale, if appropriate, or later cancellation. Any

resale of treasury shares will only take place on terms that are

in the best interests of shareholders. The current authority to

buy back shares expires at the 2026 AGM.

Special Resolution 13

is to permit the Company to hold general

meetings (other than annual general meetings) on at least

14 clear days notice, which is the minimum notice period

permitted by the Companies Act 2006. The Company must

otherwise give at least 21 clear days notice unless two

conditions are met. The ﬁrst condition is that the Company

offers facilities for shareholders to vote by electronic means.

The second condition is that there is an annual resolution of

shareholders approving the reduction in the minimum notice

period from 21 clear days to 14 clear days, hence this resolution

being proposed. It is intended that this ﬂexibility will be used

only where the Board believes it is in the interests of

shareholders as a whole.

The Directors have carefully considered all the resolutions

proposed in the notice of AGM and, in their opinion, consider

them all to be in the best interests of shareholders as a whole.

The Directors therefore recommend that shareholders vote in

favour of each resolution, as will the Directors in respect of

their own shareholdings. It is recommended that proxy votes

are submitted to the Company’s Registrar as soon as possible

either by proxy form or via electronic voting. Details of this can

be found on page 65.

By order of the Board

Northern Trust Secretarial Services (UK) Limited

Corporate Company Secretary

50 Bank Street

Canary Wharf

London

E14 5NT

28 April 2026

Corporate governance report

The Board remains committed to maintaining high standards

of corporate governance and is accountable to shareholders

for the effective governance of the Company’s affairs.

The Board has reviewed and applied the principles and

recommendations of the AIC Code of Corporate Governance

(the ‘AIC Code’). The AIC Code incorporates the principles of

the UK Corporate Governance Code 2024 (the ‘UK Code’), as

well as setting out additional provisions on issues that are of

speciﬁc relevance to investment trusts. The Board considers

that the Company has complied with the AIC Code throughout

the year.

The AIC Code is available from the Association of Investment

Companies (www.theaic.co.uk) and the UK Code is available

from the Financial Reporting Council (‘FRC’) website

(www.frc.org.uk).

The Company has complied with the principles and provisions

of the AIC Code and the relevant provisions of the UK Code,

except for the provisions relating to:

•

the role of the chief executive;

•

executive directors’ remuneration; and

•

the need for an internal audit function.

As an externally managed investment company with no

executive employees, these provisions are not relevant to the

Company’s circumstances; in addition. Accordingly, the

Company has not reported further in respect of these

provisions, consistent with the AIC Code’s adaptation of the

UK Code for investment companies.

The UK Code (2024) introduces a requirement (Provision 29)

for boards to include in the annual report a declaration on the

effectiveness of material internal controls (ﬁnancial,

operational, reporting and compliance). This applies to

accounting periods beginning on or after 1 January 2026. As

the

Company’s

current

ﬁnancial

year

commenced

on 1

February 2025, Provision 29 is not applicable to this reporting

period. The Board is undertaking preparatory work and expects

to report in accordance with Provision 29 for the ﬁnancial year

ending 31 January 2027 (see Risk management and internal

controls: on page 28)

Where to ﬁnd key governance information in this report.

•

Board composition and operation, and committee structure:

page 26; Audit Committee: page 26.

•

Risk management and internal controls: page 28.

•

Manager: contractual arrangements and the Board’s annual

assessment: page 26.

•

Capital structure and voting rights: pages 29 and 30.

•

Substantial shareholders: page 29.

•

Directors’ appointment and replacement: see the

Company’s Articles of Association and page 26. There are

no agreements between the Company and its Directors

concerning compensation for loss of office.

•

Shareholder authorities: powers to issue or buy back shares,

and amendments to the Articles of Association, are sought

by resolution at general meetings in accordance with

applicable law and regulation.

By order of the Board

Northern Trust Secretarial Services (UK) Limited

Corporate Company Secretary

50 Bank Street

Canary Wharf

London

E14 5NT

28 April 2026

Audit Committee report for the year ended 31 January 2026

I am pleased to report on the range of work that the Audit

Committee has undertaken and the judgements it has

exercised during the year. The Committee meets at least three

times in the year. It continues to support the Board in fulﬁlling

its oversight responsibilities, reviewing ﬁnancial reporting,

operation of the system of internal controls and management

of risk, the audit process and the Company’s process for

monitoring compliance with laws and regulations.

The Audit Committee is chaired by me, Graham Paterson. The

members of the Committee during the year were Bridget

Guerin, Simon Longfellow (who served until his resignation

from the Board on 31 December 2025) and Mike Prentis. The

Chairman of the Board is also a member of the Committee,

ensuring that she is kept fully informed of matters arising and

enabling her to contribute her ﬁnancial services experience to

the Committee’s discussions. The Committee members

consider that collectively, they have substantial recent and

relevant ﬁnancial experience to discharge their responsibilities

effectively and that the Committee as a whole has competence

relevant to the sector. A separate risk committee has not been

established; oversight of the Company’s risk management

processes and internal control framework is overseen by the

Audit Committee.

The Audit Committee’s responsibilities include, but are not

limited to:

–

evaluation of the effectiveness of the internal controls and

risk management systems, including reports received on

the operational controls of the Company’s service providers

and the Manager’s whistleblowing arrangements;

–

consideration of the Half-Yearly and Annual Financial

Reports prepared by the Manager, of the appropriateness of

the accounting policies applied and of any ﬁnancial

judgements

and

key

assumptions

therein,

together

ensuring compliance with relevant statutory and listing

requirements;

–

advising the Board on whether the Committee believes that

the Annual Financial Report, taken as a whole, is fair,

balanced and understandable and provides the necessary

information for shareholders to assess the Company’s

position and performance, business model and strategy;

and

–

managing the relationship with the external auditor,

including evaluation of their reports and the scope,

effectiveness, independence and objectivity of their audit,

as well as their appointment, re-appointment, remuneration

and removal.

Representatives of the Manager’s Risk and Compliance

function attend at least one meeting each year.

Representatives

the

external

auditor,

EY,

attend two

Committee meetings. One at which the audit plan is presented

and discussed and the other at which the Company’s draft

Annual Financial Report is reviewed and are given the

opportunity to speak to Committee members without the

presence of representatives of the Manager.

The audit programme and timetable are drawn up and agreed

with the auditor in advance of the end of the ﬁnancial period

and matters for audit focus are discussed and agreed. The

auditor ensures that these matters are given particular

attention during the audit process and reports on them, and

other matters as required, in their report to the Committee.

This report, together with reports from the Manager, the

Manager’s Risk and Compliance function and the depositary

form the basis of the Audit Committee’s consideration and

discussions with the various parties, prior to approval and

signing of the ﬁnancial statements.

Principal matters considered by the Committee

During the year, the Committee discharged its responsibilities by monitoring, reviewing and, where necessary, challenging. Whilst

going concern and viability of the Company are reviewed by the Audit Committee as part of the consideration of the Half-Yearly

and Annual Financial Reports, these matters are determined by the Board. The principal matters considered and how these were

addressed are shown in the following table.

Principal matters considered

How addressed

Accuracy of the portfolio

Actively traded listed investments and CFDs are valued using

valuation encompassing proof

stock exchange bid prices provided by third party pricing

of existence and ownership of

vendors, in accordance with the accounting policy of the

all the portfolio holdings.

Company. Artemis Fund Managers Limited (AFML) performed

reconciliations between the portfolio holdings shown in the

accounting records and those held by The Northern Trust

Company (TNTC) and Northern Trust Investor Services Limited

(NTISL) as custodian and depository. The Committee took

comfort from the regular oversight reports received from AFML,

and the ongoing monitoring by NTISL as depositary of assets,

including both their ownership and valuations. The Committee

also reviewed System and Organisation Controls (‘SOC1’)

Reports received from its third-party service providers covering

the processes and systems relevant to the recording,

reconciliation and valuation of investments.

Income recognition

Revenue projections were monitored during the year to ensure

income is complete and correctly accounted for, with emphasis

on any special dividends and their classification as either

revenue or capital. The Committee also reviewed SOC1 Reports

received from its third party service providers covering the

processes and systems relevant to the recording of income.

Viability and going concern

The Committee scrutinised assumptions around the viability

and going concern statements set out on page 28, especially

factors behind investment performance, macro inflation and

geo-political disruption and the Company’s working capital and

financial resources, to satisfy itself of the Company’s resilience

over the five-year time frame.

These matters were discussed with AFML and the auditor and were satisfactorily addressed through consideration of reports

provided by, and discussed with Artemis and the auditor at the conclusion of the audit process. There were no signiﬁcant matters

arising from the audit that needed to be brought to the Board’s attention.

Consequently, and following a thorough review process of the Company’s 2026 Annual Financial Report, the Audit Committee

advised the Board that the report taken as a whole is fair, balanced and understandable and provides the information necessary

for shareholders to assess the Company’s position and performance, business model and strategy.

Review and re-appointment of the external auditor

EY was appointed as the Company’s external auditor in 2019 following a tender exercise. Jennifer Rogan is the Senior Statutory

Auditor and has held this role since May 2024. Under auditor rotation regulations, an audit tender needs to be undertaken every

ten years, the next being in 2029. If successful during this tender process, and re-appointed, EY could continue as external auditor

for a further ten years until 2039.

The Committee evaluated the independence, performance and effectiveness of the external auditor and the competitiveness of

its fee during the year to 31 January 2026. This included discussions with the Manager, review of the audit planning, execution

and reporting, the quality of the audit work and the auditor’s independence. Having completed the assessment, the Committee

concluded that all the results were satisfactory and recommended to the Board their continuing appointment. EY has indicated

its willingness to continue in office and accordingly a resolution to re-appoint EY and for the Audit Committee to determine their

remuneration will be put to shareholders at the forthcoming AGM.

Policy on non-audit services

In accordance with the FRC’s Ethical Standards, the Company’s

policy prohibits the majority of non-audit services and requires

all non-audit services which are closely linked to the audit itself

or required by law or regulation to be approved in advance by

the Audit Committee. Prior to any engagement, the Audit

Committee would consider whether the skills and experience

of the auditor make them a suitable supplier of such services

and ensure that there is no threat to objectivity and

independence in the conduct of the audit as a result.

No fees were paid or payable to the auditor for non-audit

services in the year under review (2025: £nil).

Internal controls and risk management

Details of the Company’s internal control and risk

management, and the work undertaken by the Audit

Committee with respect to them are set out on page 28.

The Board notes the introduction of Provision 29 of the 2024

UK Corporate Governance Code, requiring a formal declaration

on the effectiveness of material internal controls for

accounting periods beginning on or after 1 January 2026. As

the Company’s ﬁnancial year began on 1 February 2025, this

requirement does not apply to the current reporting period.

Internal Audit

The Company, being an externally managed investment

company, does not have its own internal audit function.

However, it places reliance on the reports it receives from the

Manager’s Rick and Compliance function.

Committee evaluation

The Committee’s activities formed part of the review of Board

effectiveness performed in the year. Details of this process can

be found under ‘Board, Committee and Directors’ Performance

Appraisal’ on page 27.

Graham Paterson

Chairman of the Audit Committee

28 April 2026

Directors’ remuneration policy and report

The Board presents this remuneration report which has been

prepared under the requirements of The Large and Medium-

sized Companies and Groups (Accounts and Reports)

(Amendments) Regulations 2013 and in accordance with the

Listing Rules of the Financial Conduct Authority. Ordinary

resolutions for the approval of the Directors’ remuneration

policy (binding) and the annual statement and report on

remuneration (advisory) will be put to shareholders at the

AGM.

The Company’s auditor is required to audit certain sections of

the disclosures provided in this report. Where disclosures have

been audited, they are clearly indicated in this report. The

independent auditor’s opinion is included on pages 40 to 45.

Remuneration

responsibilities

The Board has resolved that a remuneration committee is not

appropriate for a company of this size and nature.

Remuneration is therefore regarded as part of the Board’s

responsibilities to be addressed at least annually. All Directors

are non-executive and all participate in meetings of the Board

at which Directors’ remuneration is considered.

Directors’ remuneration policy

The current Directors’ Remuneration Policy was approved by

shareholders at the AGM on 5 June 2025. The policy is that the

remuneration of Directors should be fair and reasonable in

relation to that of other comparable investment trust

companies and be sufficient to retain and motivate

appointees, as well as ensure that candidates of a high calibre

are recruited to the Board taking into account the views, where

appropriate, of shareholders. Remuneration levels should

properly reﬂect time incurred and responsibility undertaken.

Fees for the Directors are determined by the Board within the

limits stated in the Company’s Articles of Association. The

maximum currently dictated by the Company’s Articles of

Association is £200,000 in aggregate per annum.

The level of remuneration paid to Directors is reviewed

annually, although such review will not necessarily result in any

changes. The same level of remuneration will apply to any new

appointments. Directors do not have service contracts.

Directors are appointed under letters of appointment, copies

of which are available for inspection at the registered office of

the Company. Directors are entitled to be reimbursed for any

reasonable expenses properly incurred by them in connection

with the performance of their duties and attendance at board

and general meetings and committees. Directors are not

eligible for bonuses, pension beneﬁts, share options or other

incentives or beneﬁts. There are no agreements between the

Company and its Directors concerning compensation for loss

of office.

Discretionary fees per day are payable to Directors for any

additional work undertaken on behalf of the Company, which

is outside their normal duties. Any such extra work undertaken

is subject to prior approval of the Chairman or, in the case of

the Chairman undertaking the extra work, subject to prior

approval of the Chairman of the Audit Committee. The Board

may amend the level of remuneration paid to Directors within

the parameters of the Directors’ Remuneration Policy.

The Company has no employees and consequently has no

policy on the remuneration of employees.

Annual statement on Directors’ remuneration

The Directors’ fee levels applying during the year were as

follows:

Chairman

£41,000;

Audit

Committee

Chairman

£33,000; Marketing Committee Chairman £30,000; and other

Directors £28,000. Discretionary fees remained at £1,250 per

day, and no discretionary payments were made during the year

or the prior year.

Following the year end, Directors’ fees were reviewed by the

Board based on information provided by the Manager and

independent industry benchmarks for comparable investment

trusts. An inﬂationary increase to the Chairman and Audit

Committee Chairman fees with effect from 1 February 2026 was

agreed as follows: Chairman £42,250; Audit Committee Chairman

£34,000. The Senior Independent Director was appointed as

Chairman of the Nomination Committee on 14 January 2026

and it was agreed that his fees will increase to

£33,000 with effect from 1 February 2026, reﬂecting increased

responsibilities. No other material decisions relating to

Directors’ remuneration were made in the year under review.

The Board did not engage an external remuneration

consultant.

Total return of share price, net asset value and benchmark index

140 140

120 120

100 100

–20

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

–20

2026

Artemis UK Future Leaders plc (Share Price)

Artemis UK Future Leaders plc (NAV)

Deutsche Numis SC plus AIM Excluding Inv Com TR

Single total ﬁgure of remuneration for the year (audited)

The single total ﬁgure of remuneration for each Director who served during the year is detailed below, together with the prior

year comparative.

Fees

Taxable

Beneﬁts

2026

Total

Fees

Taxable

Beneﬁts

2025

Total

Bridget Guerin – Chairman

41,000

230

41,230

39,750

223

39,973

Graham Paterson – Chairman of the Audit Committee

33,000

1,460

34,460

32,000

4,540

36,540

Mike

Prentis

28,000

–

28,000

27,250

–

27,250

Simon Longfellow

27,500

–

27,500

28,250

–

28,250

129,500

1,690

131,190

127,250

4,763

132,013

Taxable beneﬁts relate to the grossed up costs of travel.

Also appointed as Chair of the Marketing Committee on 14 January 2026.

From 1 August 2024 appointed Marketing Committee Chairman. Resigned from the board 31 December 2025.

Directors’ shareholdings and share interests (audited)

The beneﬁcial interests of the Directors in the ordinary share capital of the Company are shown below:

31 January

2026

31 January

2025

Bridget Guerin

16,746 16,746

Simon Longfellow

n/a

2,411

Graham Paterson

10,000

4,500

Mike

Prentis

27,104 18,104

Bridget Guerin has a non-beneﬁcial interest in 1,588 ordinary shares via a connected person.

Resigned from the board 31 December 2025.

Save as aforesaid, no Director had any other interests, beneﬁcial or otherwise, in the shares of the Company during the year.

No changes to these holdings have been notiﬁed up to the date of this report.

Directors hold shares in the Company at their discretion and, although share ownership is encouraged, no guidelines have been

set.

Relative importance of spend on pay

The following table compares the remuneration paid to the Directors with aggregate distributions to shareholders for the year

to 31 January 2026. Although this disclosure is a statutory requirement. the Directors consider that comparison of Directors’

remuneration with annual dividends does not provide a meaningful measure relative to the Company’s overall performance as

an investment trust with an objective of providing shareholders with long-term total return.

2026

£’000

2025

£’000

Change

£’000

Change

Aggregate Directors’ Remuneration

131 132 (1)

(0.8)

Aggregate

Dividends

4,628

4,691

(63)

(1.3)

Annual percentage change in Directors remuneration

The table below sets out the annual percentage change in Directors’ remuneration for the past ﬁve years.

Year ended

31 January

Year ended

31 January

Year ended

31 January

Year ended

31 January

Year ended

31 January

2026

2025

2024

2023

2022

Fees

Simon Longfellow

6.2

6.6

n/a

Bridget Guerin

3.1 3.2 52.5 5.2 –

Graham Paterson

3.1 3.2 5.1

5.4

–

Mike

Prentis

2.8 2.8

5.0

5.2 –

Appointed to the Board on 1 July 2023. From 1 August 2024 appointed Marketing Committee Chairman which paid a higher fee of £30,000 per annum. Resigned from the Board

31 December 2025.

Assumed role of Chairman on 8 June 2023. As at the year ended 31 January 2024, the role paid a higher fee of £30,500 per annum. Also appointed as Chair of the Marketing Committee on

14 January 2026.

Voting at last Annual General Meeting

At the Annual General Meeting of the Company held on 5 June 2025, resolutions approving the Directors’ Remuneration Policy

and the Annual Statement and Report on Remuneration were passed. The votes cast (including votes cast at the Chairman’s

discretion) were as follows.

Votes

for

Votes

against

Votes

withheld

Directors’ Remuneration Policy

99.44%

0.56%

57,017

Annual Statement and Report on Remuneration

99.63%

0.37%

50,102

Approval

The Directors’ remuneration report was approved by the Board of Directors on 28 April 2026.

Signed on behalf of the Board of Directors

Bridget Guerin

Chairman

Directors’ responsibilities statement

The Directors are responsible for preparing the Annual

Financial Report in accordance with United Kingdom

applicable law and regulations.

Company law requires the Directors to prepare ﬁnancial

statements for each ﬁnancial year. Under the law the Directors

have elected to prepare ﬁnancial statements in accordance

with UK-adopted international accounting standards. 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 in accordance with IAS 8

Accounting Policies, Changes in Accounting Estimates and

Errors and then apply them consistently;

•

make judgements and estimates that are reasonable and

prudent;

•

present information, including accounting policies, in a

manner that provides relevant, reliable, comparable and

understandable information;

•

present additional disclosures when compliance with the

speciﬁc requirements in UK-adopted IFRS is insufficient to

enable users to understand the impact of particular

transactions, other events and conditions on the Company’s

ﬁnancial position and ﬁnancial performance;

•

state whether UK-adopted international 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 and disclose with reasonable accuracy at any

time the ﬁnancial position of the Company and 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.

Under applicable law and regulations, the Directors are

responsible for preparing the Strategic Report, a Corporate

Governance Statement, a Directors’ Remuneration Report and

a Directors’ Report that comply with the law and regulations.

The Directors of the Company each conﬁrm to the best of their

knowledge, that:

•

the ﬁnancial statements, prepared in accordance with

UK-adopted international accounting standards, give a true

and fair view of the assets, liabilities, ﬁnancial position and

proﬁt of the Company;

•

this Annual Financial 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; and

•

they consider that this Annual Financial Report, taken as a

whole, is fair, balanced and understandable and provides the

information necessary for shareholders to assess the

Company’s position and performance, business model and

strategy.

Signed on behalf of the Board of Directors

Bridget Guerin

Chairman

28 April 2026

INDEPENDENT AUDITOR’S REPORT

TO THE MEMBERS OF ARTEMIS UK FUTURE LEADERS PLC

Opinion

We have audited the ﬁnancial statements of Artemis UK Future

Leaders plc (“the Company”) for the year ended 31 January 2026

which comprise the Statement of Comprehensive Income, the

Statement of Changes in Equity, the Balance Sheet, the

Statement of Cash Flows and the related notes 1 to 21, including

material accounting policy information.

The ﬁnancial reporting framework that has been applied in

their preparation is applicable law and UK adopted

international accounting standards.

In our opinion, the ﬁnancial statements:

•

give a true and fair view of the Company’s affairs as at

31 January 2026 and of its loss for the year then ended;

•

have been properly prepared in accordance with UK

adopted international accounting standards; and

•

have been prepared in accordance with the requirements

of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International

Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our

responsibilities under those standards are further described in

the Auditor’s responsibilities for the audit of the ﬁnancial

statements section of our report. We believe that the audit

evidence we have obtained is sufficient and appropriate to

provide a basis for our opinion.

Independence

We are independent of the Company in accordance with the

ethical requirements that are relevant to our audit of the

ﬁnancial statements in the UK, including the FRC’s Ethical

Standard as applied to listed public interest entities, and we

have fulﬁlled our other ethical responsibilities in accordance

with these requirements.

The non-audit services prohibited by the FRC’s Ethical

Standard were not provided to the Company and we remain

independent of the Company in conducting the audit.

Conclusions relating to going concern

In auditing the ﬁnancial statements, we have concluded that

the Directors’ use of the going concern basis of accounting in

the preparation of the ﬁnancial statements is appropriate. Our

evaluation of the Directors’ assessment of the Company’s

ability to continue to adopt the going concern basis of

accounting included:

•

Conﬁrming our understanding of the Company’s going

concern assessment process by engaging with the Directors

and the Company Secretary to determine the factors that

were considered in their assessment.

•

Inspecting the Directors’ assessment of going concern,

including the revenue forecast and liquidity assessment, for

the period to 30 April 2027 which is at least 12 months from

the date the ﬁnancial statements are authorised for issue.

In preparing the revenue forecast, the Company has

concluded that it is able to continue to meet its ongoing

costs as they fall due.

•

Reviewing the factors and assumptions, including the

impact of the current economic environment and other

signiﬁcant events that could give rise to market volatility,

applied to the revenue forecast. We considered the

appropriateness of the methods used to be able to make an

assessment for the Company.

•

Considering the mitigating factors included in the revenue

forecast that are within the control of the Company. We

reviewed the Company’s assessment of the liquidity of

investments held and evaluated the Company’s ability to sell

those investments to cover the working capital

requirements should revenue decline signiﬁcantly.

•

Reviewing the Company’s going concern disclosures

included in the annual report in order to assess whether the

disclosures were appropriate and in conformity with the

reporting standards.

Based on the work we have performed, we have not identiﬁed

any material uncertainties relating to events or conditions that,

individually or collectively, may cast signiﬁcant doubt on the

Company’s ability to continue as a going concern for a period

to 30 April 2027 which is at least 12 months from when the

ﬁnancial statements are authorised for issue.

In relation to the Company’s reporting on how they have

applied the UK Corporate Governance Code, we have nothing

material to add or draw attention to in relation to the Directors’

statement in the ﬁnancial statements about whether the

Directors considered it appropriate to adopt the going concern

basis of accounting.

Our responsibilities and the responsibilities of the Directors

with respect to going concern are described in the relevant

sections of this report. However, because not all future events

or conditions can be predicted, this statement is not a

guarantee as to the Company’s ability to continue as a going

concern.

Overview of our audit approach

Key audit matters

•

Risk of incomplete or inaccurate revenue recognition

•

Risk of incorrect valuation or ownership of the investment portfolio, including derivatives

Materiality

•

Overall materiality of £1.29m which represents 1% of the net asset value

An overview of the scope of our audit

Tailoring the scope

Our assessment of audit risk, our evaluation of materiality and

our allocation of performance materiality determine our audit

scope for the Company. This enables us to form an opinion on

the ﬁnancial statements. We take into account size, risk proﬁle,

the organisation of the Company and effectiveness of controls,

the potential impact of climate change and changes in the

business environment when assessing the level of work to be

performed. All audit work was performed directly by the audit

engagement team.

Climate

change

Stakeholders are increasingly interested in how climate

change will impact companies. The Company has determined

that the most signiﬁcant future impacts from climate change

on its operations will be from how climate change could affect

the Company’s investments and overall investment process.

This is explained on page 18 in the principal risks and

uncertainties section. All of these disclosures form part of the

“Other information,” rather than the audited ﬁnancial

statements. Our procedures on these unaudited disclosures

therefore consisted solely of considering whether they are

materially inconsistent with the ﬁnancial statements or our

knowledge obtained in the course of the audit or otherwise

appear to be materially misstated, in line with our

responsibilities on “Other information”.

Our audit effort in considering climate change was focused on

the adequacy of the Company’s disclosures in the ﬁnancial

statements as set out in note 1a(i) and conclusion that there

was no further impact of climate change to be taken into

account as the investments are valued based on market

pricing as required by UK-adopted international accounting

standards.

We also challenged the Directors’ considerations of climate

change risks in their assessment of going concern viability and

associated disclosures.

Based on our work we have not identiﬁed the impact of climate

change on the ﬁnancial statements to be a key audit matter or

to impact a key audit matter.

Key audit matters

Key audit matters are those matters that, in our professional

judgement, were of most signiﬁcance in our audit of the

ﬁnancial statements of the current period and include the

most signiﬁcant assessed risks of material misstatement

(whether or not due to fraud) that we identiﬁed. These matters

included those which had the greatest effect on: the overall

audit strategy, the allocation of resources in the audit; and

directing the efforts of the engagement team. These matters

were addressed in the context of our audit of the ﬁnancial

statements as a whole, and in our opinion thereon, and we do

not provide a separate opinion on these matters.

Risk

Our response to the risk

Key observations

communicated to the

Audit Committee

Incomplete or inaccurate revenue

recognition

(as described on page 34 in the

Audit Committee Report and as per the

accounting policy set out on page 51).

The total revenue for the year to 31 January

2026 was £4.35 million (2025: £4.90 million),

consisting primarily of dividend income from

listed equity investments and derivative

income from contracts for differences

(CFDs).

There is a risk of incomplete or inaccurate

recognition of revenue through the failure to

recognise proper income entitlements or to

apply an appropriate accounting treatment.

We performed the following procedures:

We obtained an understanding of the

processes and controls surrounding revenue

recognition by performing walkthrough

procedures.

For 100% of dividends received and accrued,

we recalculated the dividend income by

multiplying the investment holdings at the

ex-dividend date, traced from the accounting

records, by the dividend per share obtained

from an independent data vendor. We agreed

a sample of dividend receipts to bank

statements. Where dividends are received or

accrued in foreign currency, we translated

the amount into the reporting currency of the

Company using exchange rates sourced from

an independent data vendor.

The results of our procedures

identiﬁed no material

misstatement in relation to

incomplete or inaccurate

revenue recognition.

Risk

Our response to the risk

Key observations

communicated to the

Audit Committee

Additionally, in accordance with the AIC

SORP, special dividends received by the

Company can be included in either the

revenue or capital columns of the Statement

of Comprehensive Income depending on the

commercial circumstances behind the

payments.

For 100% of income from CFDs, we

recalculated the investment income by

multiplying the notional investment holdings

at the ex-dividend date, traced from the

accounting records, by the dividend per

share for the underlying stock, as agreed to

an independent data vendor. We agreed a

sample to broker statements.

For 100% of dividends and income from CFDs

accrued, we reviewed the investee company

announcement to assess whether the

dividend obligation arose prior to 31 January

2026 and agreed the receipt of dividends to

post year end bank statements, where

received.

To test completeness of recorded income, we

veriﬁed that all expected dividends and

income from CFDs for each investee

company held during the year have been

recorded as income with reference to

investee company announcements obtained

from an independent data vendor.

For 100% of investments held during the year,

we reviewed the type of dividends paid with

reference to an external data vendor to

identify those which were special and

compared those identiﬁed to management’s

special dividend listing. The Company

received two special dividends of which one

exceeded our testing threshold. For the one

special dividend above our testing threshold,

we assessed the appropriateness of

management’s classiﬁcation as revenue or

capital by reviewing the underlying rationale

for the distribution.

Incorrect valuation or ownership of the

investment portfolio, including derivatives

(as described on page 34 in the Audit

Committee Report and as per the accounting

policy set out on pages 50 and 51)

The value of the investment portfolio on

31 January 2026 was £128.59 million (2025:

£143.92 million) consisting of listed

investments. The derivative ﬁnancial assets

and liabilities held at fair value through proﬁt

or loss amounted to £0.04 million (2025: nil)

and (£0.20 million) (2025: nil), respectively.

We performed the following procedures:

We obtained an understanding of the

processes and controls surrounding

investment valuation and legal title by

performing walkthrough procedures.

For 100% of investments in the portfolio, we

compared the market prices to an

independent pricing vendor and recalculated

the investment valuations as at the yearend.

For open CFDs at the year end, we compared

the market prices of the underlying

instrument to an independent pricing vendor

and agreed the cost price to the broker

conﬁrmation. We recalculated the CFD

valuations as at the yearend.

The results of our procedures

identiﬁed no material

misstatement in relation to the

risk of incorrect valuation or

ownership of the investment

portfolio, including derivatives.

Risk

Our response to the risk

Key observations

communicated to the

Audit Committee

The Company’s investment portfolio consists

of main market and AIM listed equity

investments and CFDs which are held at fair

value through proﬁt or loss in line with the

Company’s accounting policy.

The incorrect valuation of the investment

portfolio could have a signiﬁcant impact on

the ﬁnancial statements. In addition, there is

a risk of misappropriation of assets and

unsecured ownership of the investment

portfolio.

We inspected the stale pricing reports

produced by the Administrator to identify

prices that have not changed around the year

end and veriﬁed that the listed price is a valid

fair value through review of trading activity.

We compared the Company’s investment

holdings on 31 January 2026 to an

independent conﬁrmation received directly

from the Company’s Custodian and

Depositary. We agreed the open CFD

positions at the year end to conﬁrmations

received independently from the Company’s

broker.

Our application of materiality

We apply the concept of materiality in planning and performing

the audit, in evaluating the effect of identiﬁed misstatements

on the audit and in forming our audit opinion.

Materiality

The magnitude of an omission or misstatement that,

individually or in the aggregate, could reasonably be expected

to inﬂuence the economic decisions of the users of the ﬁnancial

statements. Materiality provides a basis for determining the

nature and extent of our audit procedures.

We determined materiality for the Company to be £1.29 million

(2025: £1.37 million), which is 1% (2025: 1%) of net asset value.

We believe that the net asset value provides us with a

materiality aligned to the key measure of the Company’s

performance.

Performance materiality

The application of materiality at the individual account or

balance level. It is set at an amount to reduce to an

appropriately low level the probability that the aggregate of

uncorrected and undetected misstatements exceeds

materiality.

On the basis of our risk assessments, together with our

assessment of the Company’s overall control environment, our

judgement was that performance materiality was 75% (2025:

75%) of our planning materiality, namely £0.97 million (2025:

£1.02 million). We have set performance materiality at this

percentage due to the fact there have been no misstatements

in prior periods.

Revenue Testing Threshold

Given the importance of the distinction between revenue and

capital for investment trusts, we have also applied a separate

testing threshold for the revenue column of the Statement of

Comprehensive Income of £0.19 million (2025: £0.21 million),

being 5% (2025: 5%) of the revenue proﬁt before taxation.

Reporting threshold

An amount below which identiﬁed misstatements are

considered as being clearly trivial.

We agreed with the Audit Committee that we would report to

them all uncorrected audit differences in excess of

£0.06 million (2025: £0.07 million), which is set at 5% (2025: 5%)

of planning materiality, as well as differences below that

threshold that, in our view, warranted reporting on qualitative

grounds.

We evaluate any uncorrected misstatements against both the

quantitative measures of materiality discussed above and in

light of other relevant qualitative considerations in forming our

opinion

Other information

The other information comprises the information included in

the annual report, other than the ﬁnancial statements and our

auditor’s report thereon. The Directors are responsible for the

other information contained within the annual report.

Our opinion on the ﬁnancial statements does not cover the

other information and, except to the extent otherwise explicitly

stated in this report, we do not express any form of assurance

conclusion thereon.

Our responsibility is to read the other information and, in doing

so, consider whether the other information is materially

inconsistent with the ﬁnancial statements or our knowledge

obtained in the course of the audit or otherwise appears to be

materially misstated. If we identify such material

inconsistencies or apparent material misstatements, we are

required to determine whether this gives rise to a material

misstatement in the ﬁnancial statements themselves. If, based

on the work we have performed, we conclude that there is a

material misstatement of the other information, we are

required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the

Companies Act 2006

In our opinion the part of the Directors’ remuneration report to

be audited has been properly prepared in accordance with the

Companies Act 2006.

In our opinion, based on the work undertaken in the course of

the audit:

•

the information given in the strategic report and the

Directors’ report for the ﬁnancial year for which the ﬁnancial

statements are prepared is consistent with the ﬁnancial

statements; and

•

the strategic report and Directors’ report have been

prepared in accordance with applicable legal requirements.

Matters on which we are required to report by

exception

In the light of the knowledge and understanding of the

Company and its environment obtained in the course of the

audit, we have not identiﬁed material misstatements in the

strategic report or Directors’ report.

We have nothing to report in respect of the following matters

in relation to which the Companies Act 2006 requires us to

report to you if, in our opinion:

•

adequate accounting records have not been kept, or returns

adequate for our audit have not been received from

branches not visited by us; or

•

the ﬁnancial statements and the part of the Directors’

Remuneration Report to be audited are not in agreement

with the accounting records and returns; or

•

certain disclosures of Directors’ remuneration speciﬁed by

law are not made; or

•

we have not received all the information and explanations

we require for our audit

Corporate Governance Statement

We have reviewed the Directors’ statement in relation to going

concern, longer-term viability and that part of the Corporate

Governance Statement relating to the Company’s compliance

with the provisions of the UK Corporate Governance Code

speciﬁed for our review by the UK Listing Rules.

Based on the work undertaken as part of our audit, we have

concluded that each of the following elements of the

Corporate Governance Statement is materially consistent with

the ﬁnancial statements or our knowledge obtained during the

audit:

•

Directors’ statement with regards to the appropriateness of

adopting the going concern basis of accounting and any

material uncertainties identiﬁed set out on page 28;

•

Directors’ explanation as to its assessment of the

Company’s prospects, the period this assessment covers

and why the period is appropriate set out on page 20;

•

Director’s statement on whether it has a reasonable

expectation that the Company will be able to continue in

operation and meets its liabilities set out on page 28;

•

Directors’ statement on fair, balanced and understandable

set out on page 34;

•

Board’s conﬁrmation that it has carried out a robust

assessment of the emerging and principal risks set out on

pages 17 to 19;

•

The section of the annual report that describes the review

of effectiveness of risk management and internal control

systems set out on page 28; and

•

The section describing the work of the Audit Committee set

out on pages 33 to 35.

Responsibilities of directors

As explained more fully in the Directors’ responsibilities

statement set out on page 39, the Directors are responsible for

the preparation of the ﬁnancial statements and for being

satisﬁed that they give a true and fair view, and for such

internal control as the Directors determine is necessary to

enable the preparation of ﬁnancial statements that are free

from material misstatement, whether due to fraud or error.

In preparing the ﬁnancial statements, the Directors are

responsible for assessing the Company’s ability to continue as

a going concern, disclosing, as applicable, matters related to

going concern and using the going concern basis of accounting

unless the Directors either intend to liquidate the Company or

to cease operations, or have no realistic alternative but to do

so.

Auditor’s responsibilities for the audit of the financial

statements

Our objectives are to obtain reasonable assurance about

whether the ﬁnancial statements as a whole are free from

material misstatement, whether due to fraud or error, and to

issue an auditor’s report that includes our opinion. Reasonable

assurance is a high level of assurance, but is not a guarantee

that an audit conducted in accordance with ISAs (UK) will

always detect a material misstatement when it exists.

Misstatements can arise from fraud or error and are

considered material if, individually or in the aggregate, they

could reasonably be expected to inﬂuence the economic

decisions of users taken on the basis of these ﬁnancial

statements.

Explanation as to what extent the audit was considered

capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance

with laws and regulations. We design procedures in line with

our responsibilities, outlined above, to detect irregularities,

including fraud. The risk of not detecting a material

misstatement due to fraud is higher than the risk of not

detecting one resulting from error, as fraud may involve

deliberate concealment by, for example, forgery or intentional

misrepresentations, or through collusion. The extent to which

our procedures are capable of detecting irregularities,

including fraud is detailed below.

However, the primary responsibility for the prevention and

detection of fraud rests with both those charged with

governance of the Company and management.

•

We obtained an understanding of the legal and regulatory

frameworks that are applicable to the Company and

determined that the most signiﬁcant are UK-adopted

international accounting standards, the Companies Act

2006, the UK Listing Rules, the UK Corporate Governance

Code, the Statement of Recommended Practice for the

Financial Statements of Investment Trust Companies as

issued by the Association of Investment Companies (‘AIC’),

The AIC Corporate Governance Code, Section 1158 of the

Corporation Tax Act 2010 and The Companies

(Miscellaneous Reporting) Regulations 2018.

•

We understood how the Company is complying with those

frameworks through discussions with the Audit Committee

and company secretary and review of board minutes and

the Company’s documented policies and procedures.

•

We assessed the susceptibility of the Company’s ﬁnancial

statements to material misstatement, including how fraud

might occur by considering the key risks impacting the

ﬁnancial statements.

•

Based on this understanding we designed our audit

procedures to identify non-compliance with such laws and

regulations. Our procedures involved review of the reporting

to the Directors with respect to the application of the

documented policies and procedures and review of the

ﬁnancial statements to ensure compliance with the

reporting requirements of the Company.

A further description of our responsibilities for

the audit of the ﬁnancial statements is located

the

Financial

Reporting

Council’s

website at

https://www.frc.org.uk/auditorsresponsibilities. This

description forms part of our auditor’s report.

Other matters we are required to address

•

Following the recommendation from the audit committee,

we were appointed by the Company on the 1 August 2019 to

audit the ﬁnancial statements for the year ending 31

January 2020 and subsequent ﬁnancial periods.

The period of total uninterrupted engagement including

previous renewals and reappointments is seven years,

covering the years ending 31 January 2020 to 31 January

2026.

•

The audit opinion is consistent with the additional report to

the Audit Committee.

Use of our report

This report is made solely to the Company’s members, as a

body, in accordance with Chapter 3 of Part 16 of the Companies

Act 2006. Our audit work has been undertaken so that we

might state to the Company’s members those matters we are

required to state to them in an auditor’s report and for no other

purpose. To the fullest extent permitted by law, we do not

accept or assume responsibility to anyone other than the

Company and the Company’s members as a body, for our audit

work, for this report, or for the opinions we have formed.

Jennifer Rogan

(Senior statutory auditor)

for and on behalf of Ernst & Young LLP, Statutory Auditor

Edinburgh

28 April 2026

INANCIAL STATEMENTS

Statement of comprehensive income

for the year ended 31 January 2026

Revenue

Capital

January

2026

Total

Revenue

Capital

January

2025

Total

Notes

£’000

Loss

on investments held at fair value

– (3,131) (3,131) –

(4,673)

Income

4,350

–

4,350

4,902

–

4,902

Net

losses on derivatives

10 –

(334)

– – –

Investment

management fees

(32)

(456)

(488)

(189) (1,072) (1,261)

Other

expenses

(528)

(1)

(529)

(370)

(466)

(836)

Loss

before ﬁnance costs and taxation

3,790

(3,922)

(132)

4,343

(6,211)

(1,868)

Finance

costs

(45)

(258)

(303)

(89)

(501)

(590)

Loss

before taxation

3,745

(4,180)

(435)

4,254

(6,712)

(2,458)

Taxation

– – – – – –

Loss after taxation

3,745

(4,180)

(435)

4,254

(6,712)

(2,458)

Return

per ordinary share

12.37p

(13.81)p

(1.44)p

13.02p

(20.54)p

(7.52)p

The total columns of this statement represent the Company’s statement of comprehensive income, prepared in accordance with

UK-adopted international accounting standards. The loss after taxation is the total comprehensive loss. The supplementary

revenue and capital columns are both prepared in accordance with the Statement of Recommended Practice issued by the

Association of Investment Companies. All items in the above statement derive from continuing operations of the Company. No

operations were acquired or discontinued in the year.

Statement of changes in equity

for

the year ended 31 January 2026

Capital

Redemption

Capital

Revenue

Capital

Premium

Reserve

Total

Notes

£’000

31 January 2024

10,642

22,366

3,386

123,147 1,854 161,395

Total

comprehensive loss for the year

– –

– (6,712)

4,254

(2,458)

Dividends

paid

– –

– (1,278)

(4,328)

(5,606)

bought back and held in treasury

13 – –

–

(286)

–

(286)

Special

dividend paid

8,13

(677)

–

677

(16,401) – (16,401)

31 January 2025

9,965

22,366

4,063

98,470

1,780

136,644

Total

comprehensive loss for the year

– –

– (4,180)

3,745

(435)

Dividends

paid

– –

–

(437)

(4,112)

(4,549)

bought back and held in treasury

13 – –

– (2,275) – (2,275)

31 January 2026

9,965

22,366

4,063

91,578

1,413

129,385

The accompanying accounting policies and notes are an integral part of these ﬁnancial statements.

Balance sheet

at 31 January 2026

Notes

2026

£’000

2025

£’000

Non

-current assets

Investments held at fair value through proﬁt or loss

128,586

143,920

Current

assets

Derivative ﬁnancial assets held at fair value through proﬁt or loss

–

Other

receivables

688

2,839

Cash

and cash equivalents

497

2,472

Variation

margin receivable

–

1,314 5,311

Total

assets

129,900

149,231

Current

liabilities

Derivative

ﬁnancial liabilities held at fair value through proﬁt or loss

10 (193) –

Other

payables

(322)

(12,587)

(515)

(12,587)

Total

assets less current liabilities

129,385

136,644

Net

assets

129,385

136,644

Capital

and reserves

capital

9,965

premium

22,366

Capital

redemption reserve

4,063

Capital

reserve

14 91,578

98,470

Revenue

reserve

14 1,413 1,780

Total

shareholders’ funds

129,385

136,644

Net

asset value per ordinary share

Basic

and diluted

434.66p

449.88p

The ﬁnancial statements were approved and authorised for issue by the Board of Directors on 28 April 2026.

Signed on behalf of the Board of Directors

Bridget Guerin

Chairman

The accompanying accounting policies and notes are an integral part of these ﬁnancial statements.

Statement of cash flows

for

the year ended 31 January 2026

Notes

2026

£’000

2025

£’000

Cash

ﬂow from operating activities

Loss before taxation

(435)

(2,458)

Add

back ﬁnance costs

590

Adjustments

for:

Purchase of

investments

(88,577)

(19,030)

Sale

of investments

103,051

37,995

Net

loss of derivative transactions

334

–

Settlement

of derivative transactions

(180)

–

14,628

18,965

Loss

on investments held at fair value

3,131

4,673

Increase

in receivables

(209)

(32)

Increase

in payables

Net

cash inﬂow from operating activities

17,221

21,758

Cash

ﬂow from ﬁnancing activities

Finance

cost paid

(22)

(590)

Dividends

paid

(4,549)

(5,606)

Decrease

in bank overdraft

–

(8,753)

Bank

facility (repayment)/drawdown

(12,350)

12,350

bought back and held in treasury

(2,275)

(286)

Special

dividend paid

–

(16,401)

Net

cash outﬂow from ﬁnancing activities

(19,196)

(19,286)

Net

(decrease)/increase in cash and cash equivalents

(1,975)

2,472

Cash

and cash equivalents at start of the year

2,472

–

Cash

and cash equivalents at the end of the year

497

2,472

Reconciliation

of cash and cash equivalents to the Balance Sheet is as follows:

Cash

held at custodian

100

Northern

Trust Global Funds plc – Sterling, money market fund

397

2,420

Cash

and cash equivalents

497

2,472

Cash

ﬂow from operating activities includes:

Dividends

received

4,157

4,825

Interest

received

As the Company did not have any long term debt at both the current and prior year ends, no reconciliation of the ﬁnancial

liabilities position is presented.

The accompanying accounting policies and notes are an integral part of these ﬁnancial statements.

Notes to the financial statements

Principal accounting policies

Accounting policies describe the Company’s approach to

recognising and measuring transactions during the year and

the position of the Company at the year end.

The principal accounting policies adopted in the preparation

of these ﬁnancial statements together with the approach to

recognition and measurement are set out below. These

policies have been consistently applied during the current year

and the preceding year, unless otherwise stated.

The ﬁnancial statements have been prepared on a going concern

basis on the grounds that the Company’s investment portfolio is

sufficiently liquid and signiﬁcantly exceeds all balance sheet

liabilities. There are no unrecorded commitments or

contingencies. The disclosure on going concern on page 28 in

the Directors’ Report provides further detail. The Directors

believe the Company has adequate resources to continue in

operational existence for the foreseeable future and has the

ability to meet its ﬁnancial obligations as and when they fall due

for a period until at least 30 April 2027.

(a)

Basis of preparation

(i)

Accounting standards applied

The ﬁnancial statements have been prepared on a historical

cost basis, except for the measurement at fair value of

investments and derivative ﬁnancial instruments, including

CFDs, which for the Company are quoted bid prices for

investments in active markets at the Balance Sheet date and

in accordance with the applicable UK-adopted international

accounting standards. The standards are those that are

effective at the Company’s ﬁnancial year end.

Where presentational guidance set out in the Statement of

Recommended Practice (‘SORP’) ‘Financial Statements of

Investment Trust Companies and Venture Capital Trusts’,

issued by the Association of Investment Companies in

December 2025, is consistent with the requirements of UK-

adopted international accounting standards, the Directors

have prepared the ﬁnancial statements on a basis compliant

with the recommendations of the SORP. The supplementary

information which analyses the statement of comprehensive

income between items of a revenue and a capital nature is

presented in accordance with the SORP.

The Directors have considered the impact of climate change

on the value of the listed investments that the Company holds.

In the view of the Directors, as the portfolio consists of listed

and contracts for difference (‘CFD’), their market prices should

reﬂect the impact, if any, of climate change and accordingly no

adjustment has been made to take account of climate change

in the valuation of the portfolio in these ﬁnancial statements.

(ii)

Critical accounting estimates and judgements

The preparation of the ﬁnancial statements may require the

Directors to make estimations where uncertainty exists. It also

requires the Directors to make judgements, estimates and

assumptions, in the process of applying the accounting

policies. There have been no signiﬁcant judgements, estimates

or assumptions for the current or preceding year.

(b)

Foreign currency and segmental reporting

(i)

Functional and presentation currency

The ﬁnancial statements are presented in Sterling, which is the

Company’s functional and presentation currency and the currency

which the Company’s share capital and expenses are

denominated, as well as a majority of its assets and liabilities.

(ii)

Transactions and balances

Foreign currency assets and liabilities are translated into

Sterling at the rates of exchange ruling at the balance sheet

date. Transactions in foreign currency, are translated into

Sterling at the rates of exchange ruling on the dates of such

transactions, and proﬁt or loss on translation is taken to

revenue or capital depending on whether it is revenue or

capital in nature. All are recognised in the statement of

comprehensive income.

(iii)

Segmental reporting

The Directors are of the opinion that the Company is engaged

in a single segment of business of investing in equity, issued by

companies operating and generating revenue mainly in the UK.

(c)

Financial instruments

(i)

Recognition of Financial Assets and Financial Liabilities

The Company recognises ﬁnancial assets and ﬁnancial

liabilities when the Company becomes a party to the

contractual provisions of the instrument. The Company offsets

ﬁnancial assets and ﬁnancial liabilities if the Company has a

legally enforceable right to set off the recognised amounts and

interests and intends to settle on a net basis.

(ii)

Derecognition of ﬁnancial assets

The Company derecognises a ﬁnancial asset when the contractual

rights to the cash ﬂows from the asset expire, or it transfers the

right to receive the contractual cash ﬂows on the ﬁnancial asset

in a transaction in which substantially all the risks and rewards of

ownership of the ﬁnancial asset are transferred. Any interest in the

transferred ﬁnancial asset that is created or retained by the

Company is recognised as an asset.

(iii)

Derecognition of ﬁnancial liabilities

The Company derecognises ﬁnancial liabilities when its

obligations are discharged, cancelled or expired.

(iv)

Trade date accounting

Purchases and sales of ﬁnancial assets are recognised on trade

date, being the date on which the Company commits to

purchase or sell the assets.

(v)

Classiﬁcation of ﬁnancial assets and ﬁnancial liabilities

Financial

assets

The Company classiﬁes its ﬁnancial assets as measured at

amortised cost or measured at fair value through proﬁt or loss

on the basis of both: the entity’s business model for managing

the ﬁnancial assets; and the contractual cash ﬂow

characteristics of the ﬁnancial asset.

Financial assets measured at amortised cost include cash and

debtors.

A ﬁnancial asset is measured at fair value through proﬁt or loss

if its contractual terms do not give rise to cash ﬂows on

speciﬁed dates that are solely payments of principal and

interest (‘SPPI’) on the principal amount outstanding or it is not

held within a business model whose objective is either to

collect contractual cash ﬂows, or to both collect contractual

cash ﬂows and sell. The Company’s equity and contracts for

difference are classiﬁed as fair value through proﬁt or loss as

they do not give rise to cash ﬂows that are SPPI.

Financial assets held at fair value through proﬁt or loss are

initially recognised at fair value, which is usually the

transaction price and are subsequently valued at fair value.

For investments that are actively traded in organised ﬁnancial

markets, fair value is determined by reference to stock

exchange quoted bid prices at the balance sheet date.

Financial liabilities

Financial liabilities, including borrowings through the bank

facility or formerly the bank overdraft, are initially measured at

fair value, net of transaction costs and are subsequently

measured at amortised cost using the effective interest

method, where applicable.

(d)

Cash and cash equivalents.

Cash and cash equivalents

include any cash held at custodian and approved depositories

as well as holdings in Northern Trust Global Funds plc– Sterling,

a triple-A rated money market fund. Cash and cash equivalents

are deﬁned as cash itself or being readily convertible to a known

amount of cash and are subject to an insigniﬁcant risk of

change in value with original maturities of three months or less.

(e)

Income.

All dividends are taken into account on the date

investments are marked ex-dividend; other income from

investments is taken into account on an accruals basis. Where

the Company elects to receive scrip dividends (i.e. in the form of

additional shares rather than cash), the equivalent of the cash

dividend foregone is recognised as income in the revenue

account and any excess in value of the shares received over the

amount of the cash divided recognised in capital. Deposit

interest is taken into account on an accruals basis. Special

dividends representing a return of capital are allocated to capital

the statement of comprehensive income and then taken to

capital reserves. Dividends will generally be recognised as

revenue however all special dividends will be reviewed, with

consideration given to the facts and circumstances of each case,

including the reasons for the underlying distribution, before a

decision over whether allocation is to revenue or capital is made.

(f)

Expenses and Finance Costs.

All expenses and ﬁnance

costs are accounted for in the statement of comprehensive

income on an accruals basis.

The investment management fee and ﬁnance costs (including

those related to the bank facility, contracts for difference

(CFDs), or formerly the bank overdraft) are allocated 85% to

capital and 15% to revenue. This is in accordance with the

Board’s expected long term split of returns, in the form of

capital gains and income respectively, from the portfolio.

Investment transaction costs such as brokerage commission

and stamp duty are recognised in capital in the statement of

comprehensive income. Expenses incurred as a result of the

special elective dividend and change of investment manager

have been recognised as capital in the statement of

comprehensive income. All other expenses are allocated to

revenue in the statement of comprehensive income.

(g)

Taxation.

Tax represents the sum of tax payable,

withholding tax suffered and deferred tax. Tax is charged or

credited in the statement of comprehensive income. Any tax

payable is based on taxable proﬁt for the year, however, as

expenses exceed taxable income no corporation tax is due. The

Company’s liability for current tax is calculated using tax rates

that have been enacted or substantially enacted by the

balance sheet date.

Deferred taxation is recognised in respect of all temporary

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 right to pay less tax

in the future have occurred at the balance sheet date. This is

subject to deferred tax assets only being recognised if it is

considered probable that there will be suitable proﬁts from

which the future reversal of the temporary differences can be

deducted. Deferred tax assets and liabilities are measured at

the tax rates expected to apply in the period when the liability

is settled or the asset realised.

Investment trusts which have approval under Section 1158 of

the Corporation Tax Act 2010 are not liable for taxation on

capital gains.

(h)

Dividends.

Dividends are not accrued in the ﬁnancial

statements, unless there is an obligation to pay the dividends

at the balance sheet date. Proposed ﬁnal dividends are

recognised in the ﬁnancial year in which they are approved by

the shareholders.

(i)

Derivatives.

The contracts for difference held in the

portfolio are valued based on the price of the underlying

security or index which they are purchased to reﬂect. The

nature and intended use of these derivatives is to synthetically

allow the Company to go long on an underlying asset without

the need to trade the physical securities. They are valued

based on the quoted bid price of the underlying security when

held long. There are revenue and capital returns to be derived

from these instruments. Dividends on contracts for difference

are recognised as revenue for long positions when the

securities are quoted ex-dividend. Open CFD positions at the

year end are shown at fair value in the Statement of ﬁnancial

Position under current assets or current liabilities. Interest on

margin accounts held with brokers is included in the revenue

return. All other gains/losses and cash ﬂows from derivatives

are included in the capital return.

Income

This note shows the income generated from the portfolio (investment assets) of the Company and income received from any

other source.

2026

£’000

2025

£’000

Income from investments:

UK dividends

3,910

4,533

Derivative income from CFDs

184 –

UK special dividends

183

262

Liquidity fund income

41 –

Overseas dividends

27 102

Deposit interest

Total income

4,350

4,902

No special dividends have been recognised in capital during the year (2025: nil).

Overseas dividends include dividends received on UK listed investments where the investee company is domiciled outside of

the UK.

Investment management fee

This note shows the fees due to the Manager. These are made up of the management fee calculated and paid monthly and, for

the previous year. This fee is based on the value of the assets being managed.

Revenue

Capital

2026

Total

Revenue

Capital

2025

Total

£’000

Investment management fee

456

488

189 1,072 1,261

Details of the investment management and secretarial agreement are given on page 28 in the Directors’ Report.

At 31 January 2026, £114,000 (2025: £93,000) was accrued in respect of the investment management fee.

As part of the transition, Artemis agreed to a nine-month fee waiver covering the period from 7 March to 7 December 2025. The

waiver fully offset the termination fee paid to Invesco, and in addition meant that the Company beneﬁted from paying no

management fee for the period 21 June to 7 December 2025.

Other expenses

The other expenses of the Company are presented below; those paid to the Directors and auditor are separately identiﬁed.

Revenue

Capital

2026

Total

Revenue

Capital

2025

Total

£’000

Directors’ remuneration(i)

130 – 130 132 – 132

Auditor’s fees(ii):

– for audit of the Company’s annual ﬁnancial statements

–

Other expenses(iii)

342

343

187

466

653

528

529

370

466

836

(i)

The Director’s Remuneration Report provides further information on Directors’ fees.

(ii)

Auditor’s fees include expenses but excludes VAT. The VAT is included in other expenses.

(iii)

Other expenses include:

•

£19,000 (2025: £12,500) of employer’s National Insurance payable on Directors’ remuneration. As at 31 January 2026, the

amounts

outstanding on employer’s National Insurance on Directors’ remuneration was £1,300 (2025: £1,100), the amounts

outstanding for Directors’ fee was £8,700 (2025: £11,200).

•

custodian transaction charges of £1,300 (2025: £1,700). These are charged to capital.

•

broker, registrar, legal and print costs in connection with the special dividend of £nil (2025: £422,800). These were charged

to capital.

•

legal costs in connection with the change of Investment Manager £300 (2025: £42,000). These were charged to capital.

•

£342,000 (2025: £187,000) represents operational costs paid by the Company and charged to revenue.

Finance costs

Finance costs arise on any borrowing facilities the Company has and from the ﬁnancing element of Contracts for Difference

(CFDs).

Revenue

Capital

2026

Total

Revenue

Capital

2025

Total

£’000

Bank facility fee

–

Interest on bank facility

18 21 51

286

337

Overdraft

interest

– – –

208

245

CFD ﬁnance cost

239

281 – – –

258

303

501

590

Taxation

As an investment trust the Company pays no tax on capital gains and, as the Company invested principally in UK equities, it

has little overseas tax. In addition, no deferred tax is required to provide for tax that is expected to arise in the future due to

differences in accounting and tax bases.

(a)

Tax charge

2026

£’000

2025

£’000

Overseas

taxation

– –

(b)

Reconciliation of tax charge

2026

£’000

2025

£’000

Loss before taxation

(435)

(2,458)

Theoretical tax at the current UK Corporation Tax rate of 25% (2025: 25%)

(109) (615)

Effects of:

– Non-taxable UK dividends

(961) (1,102)

– Non-taxable UK special dividends

(46)

(65)

– Non-taxable overseas dividends

(7)

(24)

– Non-taxable loss on investments

866

1,168

– Excess of allowable expenses over taxable income

257

521

– Disallowable expenses

– 117

Tax charge for the year

– –

(c)

Factors that may affect future tax changes

The Company has cumulative excess management expenses of £49,008,000 (2025: £48,030,000) that are available to offset future

taxable revenue.

A deferred tax asset of £12,252,000 (2025: £12,007,000) at 25% (2025: 25%) has not been recognised in respect of these expenses

since the Directors believe that there will be no taxable proﬁts in the future against which the deferred tax assets can be offset.

Return per ordinary share

Return per ordinary share is the amount of gain or loss generated for the ﬁnancial year divided by the weighted average number

of ordinary shares in issue.

Revenue

Capital

2026

Total

Revenue

Capital

2025

Total

£’000

Return £’000

3,745

(4,180)

(435)

4,254

(6,712)

(2,458)

Return per ordinary share

12.37p (13.81)p (1.44)p

13.02p

(20.54)p

(7.52)p

The returns per ordinary share are based on the weighted average number of shares in issue during the year of 30,268,571 (2025:

32,686,825).

Dividends on ordinary shares

The Company paid four dividends in the year – three interims and a ﬁnal.

Pence

2026

£’000

Pence

2025

£’000

Dividends paid from revenue in the year:

Third interim (prior year)

3.85

1,170

3.85

1,302

Final (prior year)

2.01 611 1.63

553

First interim

3.85

1,169

3.85

1,302

Second interim

3.85

1,162

3.85

1,171

Total dividends paid from revenue

13.56

4,112 13.18

4,328

Dividends paid from capital in the year:

Final (prior year)

1.44

437

3.78 1,278

Total dividends paid from capital

1.44

437

3.78

1,278

Total dividends paid in the year

15.00

4,549

16.96

5,606

Pence

2026

£’000

Pence

2025

£’000

Dividends payable in respect of the year:

First interim

3.85

1,170

3.85

1,302

Second interim

3.85

1,162

3.85

1,171

Third interim

3.85

1,144

3.85

1,170

Final

3.89

1,152

3.45

1,048

15.44

4,628

15.00

4,691

The third interim dividend of 3.85p per share, in respect of the year ended 31 January 2026, was paid to shareholders on 6 March

2026. The Company’s dividend policy was changed in 2015 so that dividends will be paid ﬁrstly from current year revenue and any

revenue reserves available, and thereafter from capital reserves. The amount payable in respect of the year is shown below:

2026

£’000

2025

£’000

Dividends in respect of the year:

– from revenue reserve

3,745

4,254

– from capital reserve

883

437

4,628

4,691

Dividend payable from the capital reserve of £883,000 (2025: capital reserve of £437,000) as a percentage of year end net assets

of £129,385,000 (2025: £136,644,000) is 0.70% (2025: 0.30%). The Company has £105,623,000 (2025: £112,136,000) of realised

distributable capital reserves at the year end.

Pence

2026

£’000

Pence

2025

£’000

Capital returns paid in the year:

Special Dividend

–

484.85

16,401

– –

484.85

16,401

A return of capital was offered to Shareholders during the year ended 31 January 2025, in respect of up to 10% of the Company’s

issued shares (excluding treasury shares). The return of capital was proposed by way of an elective special dividend, where all

shareholders had an opportunity to elect in respect of each share held. The value of the special dividend of 484.85p was an

amount per share which represented 97.5% of the published unaudited NAV per share of 497.29p as at the net asset value

certiﬁcation date (being 6.00 p.m. on 17 September 2024). The special dividend was paid on 8 October 2024, resulting in 3,382,648

shares being cancelled for no consideration pursuant to the reduction of capital and an amount of £16,401,000 was paid to

Shareholders who elected to receive the special dividend.

Investments held at fair value through profit and loss

The portfolio is made up of investments which are listed or traded on a primary stock exchange or AIM. Proﬁt and losses in

the year include:

•

realised, usually arising when investments are sold; and

•

unrealised, being the difference from cost on those investments still held at the year end.

2026

£’000

2025

£’000

Investments listed on a primary stock exchange

96,393

112,854

AIM quoted investments

32,193 31,066

128,586

143,920

Opening valuation

143,920

169,481

Movements in year:

Purchases at cost

88,577

18,982

Sales proceeds

(100,780)

(39,870)

Loss on investments in the year

(3,131)

(4,673)

Closing valuation

128,586

143,920

Closing book cost

142,631 157,586

Closing investment unrealised loss

(14,045)

(13,666)

Closing valuation

128,586

143,920

The transaction costs amount to £303,000 (2025: £68,000) on purchases and £23,000 (2025: £20,000) for sales. These amounts

are included in determining the loss on investments held at fair value as disclosed in the statement of comprehensive income.

The Company received £100,780,000 (2025: £39,870,000) from investments sold in the year. The book cost of these investments

when they were purchased was £103,532,000 (2025: £35,968,000) realising a loss of £2,750,000 (2025: gain of £3,902,000). These

investments have been revalued over time and until they were sold any unrealised proﬁts/losses were included in the fair value

of the investments.

10.

Derivatives

The derivative assets and liabilities held by the Company are presented below.

(a)

Valuation of derivatives

All derivative instruments held by the Company comprise contracts for difference (CFDs) and are classiﬁed as ﬁnancial assets and liabilities at

fair value through proﬁt or loss. CFDs are initially recognised at fair value on the date the contract is entered into and are subsequently

re-measured to fair value at each reporting date, with gains and losses recognised in the statement of comprehensive income. The fair value of

CFDs at the year end represents the net unrealised gain or loss on open positions, being the difference between the contract value and the

market value at the balance sheet date.

2026

2025

Fair

value

current

Gross

current

Gross

assets

liabilities

exposure

assets

liabilities

exposure

£’000

Contracts for difference

(193)

11,128 – – –

(193)

11,128 – – –

(b)

Movements in derivatives

The movements in the fair value of derivative instruments during the year comprise realised gains and losses on positions closed during the year

and unrealised movements in fair value on open positions at the year end. The total of these movements reconciles to the net losses on derivatives

in the statement of comprehensive income.

2026

Contracts

for

difference

2025

Contracts

for

difference

£’000

Movements in year:

Closed contracts – realised losses

(180)

–

– Decrease in fair value

(154) –

Losses on derivatives in the year

(334)

–

CFD transaction costs on positions opened and closed during the year amounted to £3,000 (2025: £nil).

11.

Other receivables

Other receivables are amounts which are due to the Company, such as monies due from brokers for investments sold and income

which has been earned (accrued) but not yet received.

2026

£’000

2025

£’000

Amounts due from brokers

135

2,404

Prepayments and accrued income

553

435

688

2,839

12.

Other payables

Other payables are amounts which must be paid by the Company, and include any amounts due to brokers for the purchase of

investments, interest in respect of the bank facility or amounts owed to suppliers (accruals), such as the Manager and auditor.

The bank facility provided a speciﬁc amount of capital, up to £20 million, over a speciﬁed period of time (two years). Unlike a term

loan, the revolving nature of the bank facility allowed the Company to drawdown, repay and re-draw loans.

2026

£’000

2025

£’000

Bank facility*

– 12,350

Accruals

322

237

322

12,587

*The bank facility was fully re-paid with effect 26 February 2025 and the facility withdrawn.

13.

Share capital

Share capital represents the total number of shares in issue, including shares held in treasury.

(a)

Allotted, called-up and fully paid

2026

2025

Number

£’000

Number

£’000

Allotted,

called

-up and fully paid

Ordinary

shares of 20p each

29,766,693

5,953

30,373,362

6,075

Treasury

shares of 20p each

20,059,743

4,012 19,453,074

3,890

49,826,436

9,965

49,826,436

9,965

(b)

Share movements

Ordinary

2026

Treasury

Ordinary shares

2025

Treasury shares

Number of shares of 20p each at start of year

30,373,362

19,453,074

33,826,929

19,382,155

Special dividend paid

– –

(3,382,648)

–

Shares bought back and held in treasury

(606,669)

606,669

(70,919) 70,919

Carried forward

29,766,693

20,059,743

30,373,362

19,453,074

During the year to 31 January 2026, the Company bought back into treasury, 606,669 (2025: 70,919) ordinary shares at a total cost

of £2,275,000 (2025: £286,000). No shares were cancelled during the year (2025: 3,382,648 shares were cancelled as part of the

Special Dividend paid on 8 October 2024). Since 31 January 2026 to 24 April 2026, the Company has bought back a further

297,700 ordinary shares into treasury.

14.

Reserves

This note explains the different reserves attributable to shareholders. The aggregate of the reserves and share capital

(see previous note) make up total shareholders’ funds.

The share premium arises whenever shares are issued at a price above the nominal value plus any issue costs. The capital

redemption reserve maintains the equity share capital and arises from the nominal value of shares repurchased and cancelled.

The share premium and capital redemption reserve are non-distributable.

Capital investment gains and losses are shown in note 9, and form part of the capital reserve. The revenue reserve shows the net

revenue retained after payment of dividends. The capital (to the extent that it constitutes realised proﬁts) and revenue reserves

are distributable by way of dividend. In addition, the capital reserve is also distributable by way of share buy backs.

15.

Net asset value per ordinary share

The Company’s total net assets (total assets less total liabilities) are often termed shareholders’ funds and are converted into

net asset value per ordinary share by dividing by the number of shares in issue.

The net asset value per share and the net asset values attributable at the year end were as follows:

Net asset value

per ordinary share

Net

assets

attributable

2026

2025

2026

2025

Pence

£’000

Ordinary shares

434.66

449.88

129,385

136,644

Net asset value per ordinary share is based on net assets at the year end and on 29,766,693 (2025: 30,373,362) ordinary shares, being the number

of ordinary shares in issue (excluding treasury) at the year end.

16.

Risk management, financial assets and liabilities

Financial instruments comprise the Company’s investment portfolio as well as any cash, borrowings, other receivables and

other payables.

Financial instruments

The Company’s ﬁnancial instruments comprise equity shares and derivative ﬁnancial instruments which comprise long contracts

for difference (CFDs) (as shown on pages 11 and 12), cash, other receivables and other payables that arise directly from its operations

such as sales and purchases awaiting settlement and accrued income. The accounting policies in note 1 include criteria for

the recognition and the basis of measurement applied for ﬁnancial instruments. Note 1 also includes the basis on which income

and expenses arising from ﬁnancial assets and liabilities are recognised and measured.

Risk management policies and procedures

The Directors have delegated to the Manager the responsibility for the day-to-day investment activities of the Company as more

fully described in the Directors’ report.

As an investment trust the Company invests in equities and other investments for the long-term, so as to meet its investment

policy (incorporating the Company’s investment objective). In pursuing its investment objective, the Company is exposed to

a variety of risks that could result in either a reduction in the Company’s net assets or a reduction of the proﬁts available for

dividends. Those related to ﬁnancial instruments include market risk, liquidity risk and credit risk.

The main risk that the Company faces arising from its ﬁnancial instruments is market risk – this risk is reviewed in detail below.

Since the Company invests mainly in UK equities traded on the London Stock Exchange, liquidity risk and credit risk are not

signiﬁcant. Liquidity risk is minimised as the majority of the Company’s investments comprise a diversiﬁed portfolio of readily

realisable securities which can be sold to meet funding commitments as necessary. In addition, a bank facility (formerly overdraft

facility) provided short-term funding ﬂexibility.

Credit and counterparty risk

Credit risk encompasses the failure by counterparties to deliver securities which the Company has paid for, or to pay for securities

which the Company has delivered, and cash balances. Counterparty risk is minimised by using only approved counterparties.

The Company’s ability to operate in the short-term may be adversely affected if the Company’s custodian suffers insolvency or

other ﬁnancial difficulties. The appointment of a depositary has substantially lessened this risk. The Board reviews the custodian’s

annual controls report and the Manager’s management of the relationship with the custodian. This was The Bank of New York

Mellon (International) Limited, an A-1+ rated ﬁnancial institution, until 9 March 2025. From 10 March 2025 the custodian was

changed to Northern Trust Investor Services Limited, a similarly rated institution. Cash balances are limited to a maximum of

2.5% of net assets with any one deposit taker, with only approved deposit takers being used. A maximum of 4.0% of net assets

with The Bank of New York Mellon (International) Limited and a maximum of 7.5% of net assets for holdings in the Invesco Liquidity

Funds plc – Sterling, a triple-A rated money market fund, were allowed during the period to 9 March 2025. Post transition, a

maximum of 4.0% of net assets is allowed to be placed with Northern Trust Investor Services Limited with a further 10% maximum

allowed to be invested in the Northern Trust Global Funds plc - Sterling money market fund.

The Company uses one counterparty for derivative transactions. The Company may enter into transactions in over-the-counter

(‘OTC’) markets that expose it to the credit of its counterparties and their ability to satisfy the terms of such contracts. Where

the Company enters into derivative contracts, it will be exposed to the risk that the counterparty may default on its obligations

to perform under the relevant contract. In the event of bankruptcy or insolvency of a counterparty, the Company could experience

delays in liquidating the position and may incur signiﬁcant losses. There may be a risk that a counterparty will be unable to meet

its obligations with regard to the return of the collateral and may not meet other payments due to the Company. To minimise

such risk, the Investment Manager will assess the creditworthiness of any counterparty that it engages. On a daily basis, the

Investment Manager assesses the level of assets with each counterparty to ensure that the exposure is within the deﬁned limits.

The derivatives are disclosed in the Portfolio of Investments and J.P. Morgan Securities Plc is the counterparty for contracts for

difference. Aside from the custodian, the derivative counterparties and brokers where trades are pending settlement, there were

no signiﬁcant concentrations of credit and counterparty risk as at 31 January 2026 and 31 January 2025.

Counterparty exposure

At the balance sheet date, the Company held only contracts for difference as derivatives instruments.

Details of the individual contracts are disclosed separately in the Portfolio of Investments and the total position by counterparty

and the collateral pledged, at the year end, were as follows:

Contracts

for difference

Total

net

exposure

Net

collateral

held/(pledged)

2026

£’000

J.P. Morgan Securities Plc

11,128

(154)

–

At 31 January 2025, the Company did not hold any derivative positions and therefore had no counterparty exposure.

Market

risk

The fair value or future cash ﬂows of a ﬁnancial instrument may ﬂuctuate because of changes in market prices. This market risk

comprises three elements – currency risk, interest rate risk and other price risk. The Company’s Manager assesses the Company’s

exposure when making each investment decision, and monitors the overall level of market risk on the whole of the investment

portfolio on an ongoing basis. The Board meets at least quarterly to assess risk and review investment performance. The Company

may utilise hedging instruments to manage market risk. Gearing is used to enhance returns, however, this will also increase the

Company’s exposure to market risk and volatility.

Currency risk

The exposure to currency risk is considered minor as the Company’s ﬁnancial instruments are mainly denominated in Sterling.

At the current and preceding year end, the Company held no foreign currency investments or cash, although a small amount of

dividend income was received in foreign currency.

During this and the previous year, the Company did not use forward currency contracts to mitigate currency risk.

Interest rate risk

Interest rate movements will affect the level of income receivable on cash deposits and the interest payable on variable rate

borrowings. When the Company has cash balances, they are held in variable rate bank accounts yielding rates of interest

dependent on the base rate of the Custodians, The Bank of New York Mellon (International) Limited (until 9 March 2025) and

Northern Trust Investor Services Limited (from 10 March 2025). Additionally, holdings in Northern Trust Global Funds plc - Sterling

are subject to interest rate changes.

The Company did not have any uncommitted bank facility in place at the year end (2025: the Company had an uncommitted bank

facility up to a maximum of 30% of the net asset value of the Company or £20 million, whichever was the lower; the interest rate

was charged at a margin over the Bank of England base rate). At the prior year end, £12.4 million of the bank facility was drawn

down. The bank facility was fully repaid and withdrawn with effect from 26 February 2025.

Interest rate exposure

The Company has no ﬁnancial assets or liabilities carrying ﬁxed rates of interest. The exposure of ﬁnancial assets and liabilities

to ﬂoating interest rates, giving cash ﬂow interest rate risk when rates are reset, is shown below.

2026

£’000

2025

£’000

Exposure to ﬂoating interest rates:

Cash at bank

100

Northern Trust Global Funds plc – Sterling

397

–

Invesco Liquidity Funds plc – Sterling

–

2,420

Bank

facility

– (12,350)

Derivative ﬁnancial instruments – long CFDs (exposure less fair value)

(11,282) –

(10,785)

(9,878)

Interest rate sensitivity

The following table illustrates the sensitivity of the return after taxation for the year and net assets to a 1% (2025: 1%) increase or

decrease in interest rates in regards to the Company’s monetary ﬁnancial assets and ﬁnancial liabilities. This level of change is

considered to be a reasonable illustration based on observation of current market conditions and in light of interest rate increases

or decreases during the year. The sensitivity analysis is based on the Company’s monetary ﬁnancial instruments held at the

balance sheet date with all other variables held constant.

2026

2025

1% increase 1% decrease 1% increase 1% decrease

Statement of comprehensive income

– return after taxation

Revenue return

(5)

(6)

Capital return

(113) 113 (105) 105

Total return after taxation for the year

(108) 108

(99)

Net

assets

(108)

108

(99)

Other price risk

Other price risks (i.e. the risk of changes in market prices, other than those arising from interest rates or currency) may affect

the value of the investments.

Other price risk exposure

The Company’s total exposure to changes in market prices at 31 January comprises its holdings in equity investments and

exposure to CFDs as follows:

2026

£’000

2025

£’000

Investments held at fair value through proﬁt or loss

128,586 143,920

Exposure to derivative instruments - Long CFDs

11,129 –

Total

139,715

143,920

The above data is broadly representative of the exposure to other price risk during the current and comparative year.

Management of other price risk

The Directors manage the market price risks inherent in the investment portfolio by meeting regularly to monitor on a formal

basis the Manager’s compliance with the Company’s stated objectives and policies and to review investment performance.

The Company’s portfolio is the result of the Manager’s investment process and as a result is not correlated with the Company’s

benchmark or the markets in which the Company invests. Therefore, the value of the portfolio will not move in line with the

market but will move as a result of the performance of the company shares within the portfolio.

If the value of the portfolio fell by 10% at the balance sheet date, the loss after tax for the year would increase by £14 million (2025:

loss after tax for the year would increase by £14 million). Conversely, if the value of the portfolio rose by 10%, the loss after tax

would decrease (2025: loss after tax would decrease) by the same amount.

Concentration of exposure to market price risk

There is a concentration of exposure to the UK, though it should be noted that the Company’s investments may not be entirely

exposed to economic conditions in the UK, as many UK listed companies do much of their business overseas.

Fair values of ﬁnancial assets and ﬁnancial liabilities

The ﬁnancial assets and ﬁnancial liabilities are either carried in the balance sheet at their fair value (investments), or the balance

sheet amount is a reasonable approximation of fair value (due from brokers, dividends receivable, accrued income, due to brokers,

accruals, cash at bank and borrowings).

The fair value of quoted investments is determined using unadjusted quoted prices in active markets at the reporting date, where

available.

For ﬁnancial instruments where quoted market prices are not directly available, fair value is determined using observable market

inputs, including prices from recent transactions, broker quotes, or valuation techniques that maximise the use of observable

data and minimise the use of unobservable inputs.

Fair value hierarchy disclosures

The Company’s ﬁnancial instruments within the scope of IFRS 13 that are held at fair value comprise its investment portfolio and

derivative ﬁnancial instruments:

Level 1 – The unadjusted quoted price in an active market for identical assets or liabilities that the entity can access at the

measurement date.

Level 2 – Inputs other than quoted prices included within Level 1 that are observable (i.e. developed using market data) for the

asset or liability, either directly or indirectly.

Level 3 – Inputs are unobservable (i.e. for which market data is unavailable) for the asset or liability.

Categorisation within the hierarchy has been determined on the basis of the lowest level input that is signiﬁcant to the fair value

measurement of each relevant asset/liability.

Assets

2026

Liabilities

Assets

2025

Liabilities

£’000

Level 1 128,586 – 143,920 –

Level 2*

(193) – –

128,625

(193)

143,920

–

*Consists of the fair value of derivative ﬁnancial instruments (long CFDs), calculated as the difference between the initial contract price of the

CFD and the market value of the underlying investment, and is presented as derivative ﬁnancial assets or derivative ﬁnancial liabilities in the

Balance Sheet.

17.

Maturity analysis of contractual liability cash flows

The contractual liabilities of the Company are shown in note 12 and comprise amounts due to brokers and accruals. All

contractual liabilities are settled in accordance with their contractual terms. Amounts due to brokers are generally payable on

the purchase date of the investment plus two business days. Accruals are generally payable within three months. The Company

did not have any bank facility in place at the year end (2025: the Company had an uncommitted bank facility which was repayable

on demand).

18.

Capital management

The Company’s capital, or equity, is represented by its net assets which are managed to achieve the Company’s investment

objective set out on page 15.

The main risks to the Company’s investments are shown in the Strategic Report under the ‘Principal risks and uncertainties’

section on pages 17 to 19. These also explain that the Company is able to gear and that gearing will amplify the effect on equity

of changes in the value of the portfolio.

The Board can also manage the capital structure directly since it determines dividend payments and has taken the powers, which

it is seeking to renew, to buy-back shares, either for cancellation or to be held in treasury, and to issue new shares or sell shares

held in treasury.

The Company is subject to externally imposed capital requirements with respect to the obligation and ability to pay dividends

by s1158 Corporation Tax Act 2010 and by the Companies Act 2006, respectively, and with respect to the availability of the bank

facility (formerly bank overdraft facility) and by the terms imposed by the lender. The Board regularly monitors, and has complied

with, the externally imposed capital requirements. This is unchanged from the prior year.

Total equity at 31 January 2026, the composition of which is shown on the balance sheet on page 48, was £129,385,000 (2025:

£136,644,000).

19.

Contingencies, guarantees and financial commitments

Liabilities the Company is committed to honour but which are dependent on a future circumstance or event occurring would be

disclosed in this note if any existed.

There were no contingencies, guarantees or other ﬁnancial commitments of the Company as at 31 January 2026 (2025: nil).

20.

Related party transactions and transactions with manager

A related party is a company or individual who has direct or indirect control or who has signiﬁcant inﬂuence over the Company.

Under UK-adopted international accounting standards the Company has identiﬁed the Directors and Manager as related parties.

The Directors’ remuneration and interests have been disclosed on page 37 with additional disclosure in note 4. No other related

parties have been identiﬁed.

The management fee payable to the Manager for the year was £488,000 split between Artemis Fund Managers Limited £114,000

and Invesco Fund Managers Limited £374,000 (2025: Invesco Fund Managers Limited £1,261,000) of which £114,000 (2025: £93,000)

was outstanding at the year end.

Details of the Manager’s services and fees are disclosed in the Directors’ report on page 28 and in note 3.

21.

Post balance sheet events

As at 24 April, the Company’s share price has decreased from 386.00p at 31 January 2026 to 341.50p. The NAV per share has

decreased from 434.66p to 400.53p, reﬂecting market conditions.

SHAREHOLDER INFORMATION (UNAUDITED)

Notice of Annual General Meeting

THIS NOTICE OF ANNUAL GENERAL MEETING IS IMPORTANT

AND REQUIRES YOUR IMMEDIATE ATTENTION. If you are in

any doubt as to what action to take, you should consult your

stockbroker, solicitor, accountant or other appropriate

independent professional adviser authorised under the

Financial Services and Markets Act 2000. If you have sold or

otherwise transferred all your shares in Artemis UK Future

Leaders plc, please forward this document and the

accompanying Form of Proxy to the person through whom the

sale or transfer was effected, for transmission to the purchaser

or transferee.

NOTICE IS GIVEN that the Annual General Meeting (‘AGM’) of

Artemis UK Future Leaders plc will be held at the offices of

Artemis Fund Managers Limited at Cassini House, 57

St James’s Street, London SW1A 1LD at 12.00 noon on 2 June

2026 for the following purposes:

Ordinary Business

To receive and consider the Annual Financial Report for

the year ended 31 January 2026.

To approve the Directors’ Remuneration Policy.

To approve the Annual Statement and Report on

Remuneration for the year ended 31 January 2026.

To approve the ﬁnal dividend of 3.89p for the year ended

31 January 2026.

To re-elect Bridget Guerin as a Director of the Company.

To re-elect Graham Paterson as a Director of the Company.

To re-elect Mike Prentis as a Director of the Company.

To re-appoint the auditor, Ernst & Young LLP.

To authorise the Audit Committee to determine the

auditor’s remuneration.

Special Business

To consider and, if thought ﬁt, to pass the following resolutions

of which resolution 10 will be proposed as an ordinary

resolution and resolutions 11 to 13 as special resolutions:

Authority to Allot Shares

10.

That:

the Directors be generally and unconditionally authorised in

accordance with Section 551 of the Companies Act 2006 as

amended from time to time prior to the date of the passing of

this resolution (the ‘Act’) to exercise all powers of the Company

to allot shares and grant rights to subscribe for, or convert any

securities into, shares up to an aggregate nominal amount

(within the meaning of Sections 551(3) and (6) of the Act) of

£589,380, this being 10% of the Company’s issued ordinary

share capital (excluding Treasury Shares) as at 24 April 2026,

such authority to expire at the conclusion of the next AGM of

the Company or the date 15 months after the passing of this

resolution, whichever is the earlier unless the authority is

renewed or revoked at any other general meeting prior to such

time, but so that this authority shall allow the Company to

make offers or agreements before the expiry of this authority

which would or might require shares to be allotted, or rights to

be granted, after such expiry as if the authority conferred by

this resolution had not expired.

Disapplication of Pre-emption Rights

11.

That:

the Directors be and are hereby empowered, in accordance

with Sections 570 and 573 of the Act to allot equity securities

(within the meaning of Section 560 (1), (2) and (3) of the Act)

for cash, either pursuant to the authority given by resolution

10 set out above or (if such allotment constitutes the sale of

relevant shares which, immediately before the sale, were held

by the Company as treasury shares) otherwise, as if Section

561 of the Act did not apply to any such allotment, provided

that this power shall be limited:

(a)

to the allotment of equity securities in connection with

a rights issue in favour of all holders of a class of equity

securities where the equity securities attributable

respectively to the interests of all holders of securities of

such class are either proportionate (as nearly as may be)

to the respective numbers of relevant equity securities

held by them or are otherwise allotted in accordance with

the rights attaching to such equity securities (subject in

either case to such exclusions or other arrangements as

the Directors may deem necessary or expedient in relation

to fractional entitlements or legal or practical problems

under the laws of, or the requirements of, any regulatory

body or any stock exchange in any territory or otherwise);

(b)

to the allotment (otherwise than pursuant to a rights

issue) of equity securities up to an aggregate nominal

amount of £589,380, this being 10% of the Company’s

issued ordinary share capital (excluding Treasury Shares)

as at 24 April 2026; and

(c)

to the allotment of equity securities at a price not less than

the net asset value per share (as determined by the

Directors), and this power shall expire at the conclusion of

the next AGM of the Company or the date 15 months after

the passing of this resolution, whichever is the earlier

unless the authority is renewed or revoked at any other

general meeting prior to such time, but so that this power

shall allow the Company to make offers or agreements

before the expiry of this power which would or might

require equity securities to be allotted after such expiry as

if the power conferred by this resolution had not expired;

and so that words and expressions deﬁned in or for the

purposes of Part 17 of the Act shall bear the same

meanings in this resolution.

Authority to Make Market Purchases of Shares

12.

That:

the Company be generally and subject as hereinafter appears

unconditionally authorised in accordance with Section 701 of

the Act to make market purchases (within the meaning of

Section 693(4) of the Act) of its issued ordinary shares of 20p

each in the capital of the Company (‘Shares’).

PROVIDED ALWAYS THAT:

(a)

the maximum number of Shares hereby authorised to be

purchased shall be 14.99% of the Company’s issued

ordinary shares (excluding Treasury Shares), this being

4,417,402 as at 24 April 2026;

(b)

the minimum price which may be paid for a Share shall be

20p;

(c)

the maximum price which may be paid for a Share must

not be more than the higher of: (i) 5% above the average

of the mid-market values of the Shares for the ﬁve

business days before the purchase is made; and (ii) the

higher of the price of the last independent trade in the

Shares and the highest then current independent bid for

the Shares on the London Stock Exchange;

(d)

any purchase of Shares will be made in the market for cash

at prices below the prevailing net asset value per Share (as

determined by the Directors);

(e)

the authority hereby conferred shall expire at the

conclusion of the next AGM of the Company or the date

15 months after the passing of this resolution, whichever

is the earlier, unless the authority is renewed or revoked at

any other general meeting prior to such time;

(f)

the Company may make a contract to purchase Shares

under the authority hereby conferred prior to the expiry of

such authority which will be executed wholly or partly after

the expiration of such authority and may make a purchase

of Shares pursuant to any such contract; and

(g)

any Shares so purchased shall be cancelled or, if the

Directors so determine and subject to the provisions of

Sections 724 to 731 of the Act and any applicable

regulations of the United Kingdom Listing Authority, be

held (or otherwise dealt with in accordance with Section

727 or 729 of the Act) as treasury shares.

Period of Notice Required for General Meetings

13.

THAT

the period of notice required for general meetings of the

Company (other than AGMs) shall be not less than 14 clear

days.

Dated this 28 April 2026

By order of the Board

Northern Trust Secretarial Services (UK) Limited

Corporate Company Secretary

Notes:

A member entitled to attend and vote at the AGM is

entitled to appoint one or more proxies to attend, speak

and vote in his stead. Where more than one proxy is

appointed, each proxy must be appointed to exercise the

rights attached to a different share or shares. A proxy need

not be a member of the Company. However, if you appoint

the Chairman of the AGM as your proxy, this will ensure

that your votes are cast in accordance with your wishes. If

any other person is appointed as your proxy, they may not

be able to attend the meeting to vote on your behalf. In

order to be valid an appointment of proxy must be returned

one of the following methods:

•

via the Investor Centre app or at

https://uk.investorcentre.mpms.mufg.com/ (see note

4); or

•

via Proxymity (see note 5); or

•

in hard copy form by post, by courier or by hand to the

Company’s registrars, MUFG Corporate Markets, PXS

1, Central Square, 29 Wellington Street, Leeds LS1 4DL;

•

in the case of CREST members, by utilising the CREST

electronic proxy appointment service in accordance

with the procedures set out below

and in each case to be received by the Company not less

than 48 hours before the time of the meeting.

Shareholders wishing to appoint a proxy should therefore

appoint the Chairman of the AGM.

CREST members who wish to appoint a proxy or proxies by

utilising the CREST electronic proxy appointment service

may do so by utilising the procedures described in the

CREST Manual. CREST Personal Members or other CREST

sponsored members, and those CREST members who

have appointed a voting service provider(s), should refer

to their CREST sponsor or voting service provider(s) who

will be able to take the appropriate action on their behalf.

In order for a proxy appointment made by means of CREST

to be valid, the appropriate CREST message (a ‘CREST

Proxy Instruction’) must be properly authenticated in

accordance with Euroclear UK & International Limited’s

speciﬁcations and must contain the information required

for such instructions, as described in the CREST Manual.

The message, regardless of whether it relates to the

appointment of a proxy or to an amendment to the

instruction given to a previously appointed proxy must, in

order to be valid, be transmitted so as to be received by the

issuer’s agent (ID RA10) by the latest time(s) for receipt of

proxy appointments speciﬁed in this document. For this

purpose, the time of receipt will be taken to be the time (as

determined by the time stamp applied to the message by

the CREST Applications Host) from which the issuer’s

agent is able to retrieve the message by enquiry to CREST

in the manner prescribed by CREST. After this time, any

changes of instructions to proxies through CREST should

be communicated to the appointee through other means.

The Company may treat as invalid a CREST Proxy

Instruction in the circumstances set out in Regulation

35(5)(a) of the Uncertiﬁcated Securities Regulations 2001.

CREST members and, where applicable, their CREST

sponsors or voting service provider(s) should note that

Euroclear UK & International Limited does not make

available special procedures in CREST for any particular

messages. Normal system timings and limitations will

therefore apply in relation to the input of CREST Proxy

Instructions. It is the responsibility of the CREST member

concerned to take or, if the CREST member is a CREST

personal member or sponsored member or has appointed

a voting service provider(s), to procure that his CREST

sponsor or voting service provider(s) take(s), such action

as shall be necessary to ensure that a message is

transmitted by means of the CREST system by any

particular time. In this connection, CREST members and,

where applicable, their CREST sponsors or voting service

providers are referred, in particular, to those sections of

the CREST Manual concerning practical limitations of the

CREST system and timings.

A form of appointment of proxy is enclosed. Appointment

of a proxy (whether by completion of a form of

appointment of proxy, or other instrument appointing a

proxy or any CREST Proxy Instruction or appointing a proxy

via Proxymity) does not prevent a member from attending

and voting at this meeting.

To be effective, the form of appointment of proxy, duly

completed and executed, together with any power of

attorney or other authority under which it is signed (or

a notarially certiﬁed copy thereof) must be lodged at the

office of the Company’s registrars, MUFG Corporate

Markets (formerly known as Link Group), PXS 1, Central

Square, 29 Wellington Street, Leeds LS1 4DL, by not later

than 12.00 noon on 29 May 2026.

Shareholders can vote electronically via the Investor

Centre, a free app for smartphone and tablet provided by

MUFG Corporate Markets (the company’s registrar). It

allows you to securely manage and monitor your

shareholdings in real time, take part in online voting, keep

your details up to date, access a range of information

including payment history and much more. The app is

available to download on both the Apple App Store and

Google Play, or by scanning the relevant QR code below.

Alternatively, you may access the Investor Centre via a

web

browser

at:

https://uk.investorcentre.mpms.mufg.com/.

Your vote must be lodged by 12.00 noon on 29 May 2026 in

order to be considered valid or, if the meeting is adjourned,

the time which is 48 hours before the time of the

adjourned meeting.

If you are an institutional investor, you may be able to

appoint a proxy electronically via the Proxymity platform,

a process which has been agreed by the Company and

approved by the Registrar. For further information regarding

Proxymity, please visit www.proxymity.io. Your proxy must

be lodged by no later than 48 hours before the time of the

Annual General Meeting in order to be considered valid or, if

the meeting is adjourned, by the time which is 48 hours

before the time of the adjourned meeting.

Before you can appoint a proxy via this process you will

need to have agreed to Proxymity’s associated terms and

conditions. It is important that you read these carefully as

you will be bound by them and they will govern the

electronic appointment of your proxy. An electronic proxy

appointment via the Proxymity platform may be revoked

completely by sending an authenticated message via the

platform instructing the removal of your proxy vote.

Unless otherwise indicated on the Form of Proxy, CREST

voting, Proxymity or any other electronic voting channel

instruction, the proxy will vote as they think ﬁt or, at their

discretion, withhold from voting.

If you hold your shares through a platform or nominees,

you will need to contact them and ask them to appoint you

as a proxy in respect of your shares in order to attend,

speak and vote at the AGM.

A person entered on the Register of Members at close of

business on 29 May 2026 (‘a member’) is entitled to attend

and vote at the Meeting pursuant to Regulation 41 of the

Uncertiﬁcated Securities Regulations 2001. Any changes

to the Register of Members after such time and date shall

be disregarded in determining the rights of any person to

attend and/or vote at the Meeting. If the Meeting is

adjourned, entitlement to attend and vote at the

adjourned meeting, and the number of votes which may

be cast thereat, will be determined by reference to the

Company’s Register of Members 48 hours before the time

ﬁxed for the adjourned meeting.

The Terms of Reference of the Audit Committee, the

Management Engagement Committee, the Marketing

Committee and the Nomination Committee and the

Letters of Appointment for Directors will be available for

inspection by request to the Company Secretary.

10.

A copy of the Articles of Association are available for

inspection by request to the Company Secretary.

11.

Any person to whom this Notice is sent who is a person

nominated under Section 146 of the Companies Act 2006

to enjoy information rights (a ‘Nominated Person’) may

have a right, under an agreement between him/her and the

shareholder

whom

he/she

was

nominated,

be appointed (or to have someone else appointed) as

a proxy for the meeting. If a Nominated Person has no such

proxy appointment right or does not wish to exercise it,

he/she may have a right, under such an agreement, to give

instructions to the shareholder as to the exercise of voting

rights.

The statement of the above rights of the shareholders in

relation to the appointment of proxies does not apply to

Nominated Persons. Those rights can only be exercised by

shareholders of the Company.

12.

Any corporation which is a member can appoint one or

more corporate representatives who may exercise on its

behalf all of its powers as a member provided that they do

not do so in relation to the same shares.

13.

Any member attending the AGM, should this be permitted

by government restrictions at the time, has the right to ask

questions. The Company must cause to be answered any

such question relating to the business being dealt with at

the AGM but no such answer need be given if: (a) to do so

would interfere unduly with the preparation for the AGM

or involve the disclosure of conﬁdential information;

(b) the answer has already been given on a website in the

form of an answer to a question; or (c) it is undesirable in

the interests of the Company or the good order of the AGM

that the question be answered.

14.

You may not use any electronic address (within the

meaning of Section 333(4) of the Companies Act 2006)

provided in this Notice (or in any related documents

including the proxy form) to communicate with the

Company for any purposes other than those expressly

stated.

15.

As at 24 April 2026 (being the last practicable day prior to

the publication of this Notice) the Company’s issued share

capital consists of 29,468,993 ordinary shares of 20p each

carrying one vote each.

16.

A copy of this notice, and other information required by

Section 311A of the Companies Act 2006, can be found at

www.artemisfunds.com/futureleaders

17.

Shareholders should note that it is possible that, pursuant

to requests made by members of the Company under

Section 527 of the Companies Act 2006 (the ‘Act’), the

Company may be required to publish on a website

a statement setting out any matter relating to: (i) the audit

of the Company’s accounts (including the auditor’s report

and the conduct of the audit) that are to be laid before the

AGM; or (ii) any circumstance connected with an auditor

of the Company ceasing to hold office since the previous

meeting at which annual accounts and reports were laid

in accordance with Section 437 of the Act (in each case)

that the members propose to raise at the relevant AGM.

The Company may not require the members requesting

any such website publication to pay its expenses in

complying with Sections 527 or 528 of the Act. Where the

Company is required to place a statement on a website

under Section 527 of the Act, it must forward the

statement to the Company’s auditor not later than the

time when it makes the statement available on the

website. The business which may be dealt with at the AGM

includes any statement that the Company has been

required under Section 527 of the Act to publish on a

website.

18.

The following documents may be inspected at the

registered office of the Company during business hours on

any weekday (Saturdays, Sundays and Bank Holidays

excluded) from the date of this Notice of AGM to the date

of the AGM and will be available for inspection at the AGM,

if appropriate, from 11.45am on 2 June 2026 until the

conclusion of the meeting:

•

copies of the letters of appointment of the Non-

Executive Directors; and

•

the Current Articles.

The Current Articles are available to view on the

Company’s website

https://www.artemisfunds.com/futureleaders.

Information for shareholders

Company history

The investment trust was launched in March 1988 (formerly

known as Berry Starquest plc). Perpetual took over the

management of the investment trust on 1 March 1994.

On 13 June 2002, the investment trust's name changed to Invesco

Perpetual UK Smaller Companies Investment Trust plc. Artemis

assumed management of the trust on 10 March 2025, whereby

the Company's name was changed, on 12 March 2025, to Artemis

UK Future Leaders plc.

Net Asset Value (‘NAV’) publication

The NAV of the Company is calculated by the Manager on

a daily basis and is notiﬁed to the Stock Exchange on the

following business day. An estimated NAV is also published

daily in the newspapers detailed under Share Price Listings.

How to invest in the Company

The Company’s shares are listed and traded on the London

Stock

Exchange

and

can

bought

sold

through a

stockbroker.

You can also buy and sell shares yourself through a wide variety

of ‘execution-only’ investment platforms – where you make the

investment decisions and your shares are held electronically in

an account on your behalf. These tend to be cheaper than

holding paper share certiﬁcates and also mean you don’t need

to worry about losing your certiﬁcate.

Most investment platforms allow you to manage your

investment trust holdings online, as well as access to a wide

range of investment options, however, platforms generally

charge fees for holding and trading shares. Platforms featuring

Artemis UK Future Leaders include:

–

AJ Bell:

www.ajbell.co.uk/markets/investment-trusts

–

Barclays Smart Investor:

www.barclays.co.uk/smart-investor

–

Charles Stanley Direct:

www.charles-stanley-direct.co.uk

–

Fidelity:

www.ﬁdelity.co.uk

–

Halifax: www.halifax.co.uk/investing

–

Hargreaves Lansdown:

www.hl.co.uk/shares/investment-trusts

–

interactive investor:

www.ii.co.uk/investment-trusts

The companies above are shown for illustrative purposes only.

Other platform providers are available. The links above direct

you to external websites operated by each platform provider.

Artemis and the Company take no responsibility for the

content and information on these third-party sites.

Investor warning

The Company, Artemis and the Registrar would never contact

members of the public to offer services or require any type of

upfront payment. If you suspect you have been approached by

fraudsters, please contact the FCA consumer helpline on 0800

111 6768 and Action Fraud on 0300 123 2040.

Further details for reporting frauds, or attempted frauds, can

be found below.

Website

Information relating to the Company can be found on the

Company’s section of the Manager’s website, which can be

located at https://www.artemisfunds.com/futureleaders.

The contents of websites referred to in this document, or

accessible from links within those websites, are not

incorporated in to, nor do they form part of this Annual

Financial Report.

Financial

calendar

The Company publishes information according to the following

calendar:

Announcements

Annual Financial Report

April

Half-Yearly Financial Report

October

Year End

January

Dividends

Payable

1st interim

September

2nd

interim

December

3rd interim

March

Final

June

Annual General Meeting

June

Annual General Meeting

The Annual General Meeting will be held at 12.00 noon on 2nd

June 2026 at Cassini House, 57 St James’s Street, London

SW1A 1LD.

General Data Protection Regulation (‘GDPR’)

The Company has a privacy notice which sets out what

personal data is collected and how and why it is used. The

privacy notice can be found at

https://www.artemisfunds.com/futureleaders or a copy can be

obtained from the Company Secretary whose correspondence

address is found on the next page.

Be ScamSmart

Investment scams are

Have you been:

Avoid investment fraud

Reject cold calls

Check the FCA Warning List

Get impartial advice

Seek advice from someone unconnected to

Report a Scam

0800

111 6768

Find out more at

www.fca.org.uk/scamsmart

Remember: if it sounds too good to be true,

it probably is!

Glossary of Terms and Alternative Performance Measures

Alternative Performance Measure (‘APM’)

An APM is a measure of performance or ﬁnancial position that

is not deﬁned in applicable accounting standards and cannot

be directly derived from the ﬁnancial statements. The

calculations shown in the corresponding tables are for the year

ended 31 January 2026 and 2025. The APMs listed here are

widely used in reporting within the investment company sector

and consequently aid comparability.

Benchmark (or Benchmark Index)

A market index, which averages the performance of companies

in any sector, giving a good indication of any rises or falls in the

market. The benchmark used in these accounts is the

Deutsche Numis Smaller Companies + AIM (excluding

Investment Companies) Index, with dividends reinvested.

Capital dividend as a percentage of year end net assets

(APM)

The percentage of year end net assets represented by a

payment from revenue reserves and capital reserves to fund

the annual dividend payable in respect of the year.

2026

£’000

2025

£’000

Dividends paid from capital in respect of the year:

First interim

– –

Second interim

– –

Third interim

– –

Final

883

437

883

437

Net

Assets

129,385

136,644

Capital dividend as a percentage of

year end net assets

c = a/b

0.7%

0.3%

Excludes the one-off elective special dividend (return of capital)

of 484.85p paid to shareholders on 8 October 2024.

(Discount)/Premium (APM)

Discount is a measure of the amount by which the mid-market

price of an investment company share is lower than the

underlying net asset value (‘NAV’) of that share. Conversely,

premium is a measure of the amount by which the mid-market

price of an investment company share is higher than the

underlying net asset value of that share. In this Annual

Financial Report the discount is expressed as a percentage of

the net asset value per share and is calculated according to the

formula set out below. If the shares are trading at a premium

the result of the below calculation will be positive and if they are

trading at a discount it will be negative.

2026

2025

Share price

a 386.00p 375.00p

Net asset value per share (note 15)

b 434.66p 449.88p

Dividend yield (APM)

The annual dividend payable expressed as a percentage of the

year end share price.

2026

2025

Dividends per share payable in respect

of the year (note 8)

15.44p

15.00p

price

386.00p

375.00p

Dividend Yield

c = a/b

4.0%

Excludes the one-off elective special dividend (return of capital)

of 484.85p paid to shareholders on 8 October 2024.

Gearing (APM)

The gearing percentage reﬂects the amount of borrowings that

a company has invested. This ﬁgure indicates the extra amount

by which net assets, or shareholders’ funds, would move if the

value of a company’s investments were to rise or fall. A positive

percentage indicates the extent to which net assets are

geared; a nil gearing percentage, or ‘nil’, shows a company is

ungeared. A negative percentage indicates that a company is

not fully invested and is holding net cash as described below.

There are several methods of calculating gearing and the

following has been used in this report:

Gross gearing (APM)

This reﬂects the amount of gross borrowings or exposure of

CFDs in use by the Company and takes no account of any cash

balances. It is based on gross borrowings or gross exposure of

CFDs as a percentage of net assets.

During the year, the bank facility was fully re-paid with effect

26 February 2025 and the facility withdrawn. As at 31 January

2026, no bank borrowings were in place, and the Company’s

leverage was obtained through CFD exposure of £11,128,000

(2025: gross borrowings of £12,350,000 and no CFD exposure).

2026

£’000

2025

£’000

Gross exposure of CFDs / Bank facility

11,128 12,350

Net asset value

129,385

136,644

Gross gearing

c = a/b

8.6%

9.0%

Net gearing or net cash (APM)

Net gearing reﬂects the amount of net borrowings or net

exposure invested, i.e. borrowings or CFD exposure less cash

and cash equivalents (including investments in money market

funds). It is expressed as a percentage of net assets.Net cash

reﬂects the net exposure to cash and cash equivalents, as a

percentage of net assets, after any offset against total

borrowings.

2026

2025

£’000

Gross exposure of CFDs / Bank facility

11,128 12,350

Less: cash and cash equivalents

(497) (2,472)

Net exposure

a 10,631

9,878

Net asset value

b 129,385 136,644

Maximum authorised gearing

This reﬂects the maximum authorised borrowings of a

company taking into account both any gearing limits laid down

in the investment policy and the maximum borrowings laid

down in covenants under any borrowing facility and is

calculated as follows:

2026

2025

£’000

Market capitalisation

Is calculated by multiplying the stockmarket price of an

ordinary share by the number of ordinary shares in issue.

Net Asset Value (‘NAV’)

Also described as shareholders’ funds, the NAV is the value of

total assets less liabilities. Liabilities for this purpose include

current and long-term liabilities. The NAV per share is

calculated by dividing the net asset value by the number of

ordinary shares in issue (excluding shares held in treasury). For

accounting purposes assets are valued at fair (usually market)

value and liabilities are valued at amortised cost (their

repayment – often nominal – value).

Ongoing charges ratio (APM)

The ongoing administrative costs of operating the Company

are encapsulated in the ongoing charges ratio, which is

calculated in accordance with guidance issued by the AIC. The

calculation incorporates charges allocated to capital in the

ﬁnancial statements as well as those allocated to revenue, but

excludes non-recurring costs, transaction costs of

investments, ﬁnance costs, taxation, and the costs of buying

back or issuing shares. The ongoing charges ratio is the

aggregate of these costs expressed as a percentage of the daily

average net asset value reported in the year.

Maximum authorised borrowings as laid down in:

Investment policy:

– lower of 30% of net asset value;

and

a = 30% x e

38,816

40,993

– £25 million

25,000

Bank facility covenants: fully re-paid with

effect 26 February 2025 (2025: bank facility

covenants: lower of 30% of net asset value

and £20 million)

–

20,000

Maximum authorised borrowings

(d = lower of a, b and c)

25,000

20,000

Net asset value

129,385

136,644

Maximum authorised gearing

f = d/e

19.3%

14.6%

Leverage

Leverage, for the purposes of the Alternative Investment Fund

Managers Directive (‘AIFMD’), is not synonymous with gearing

as deﬁned above. In addition to borrowings, it encompasses

anything that increases the Company’s exposure, including

foreign currency and exposure gained through derivatives.

Leverage expresses the Company’s exposure as a ratio of the

Company’s net asset value. Accordingly, if a Company’s

exposure was equal to its net assets it would have leverage of

100%. Two methods of calculating such exposure are set out in

the AIFMD, gross and commitment. Under the gross method,

exposure represents the aggregate of all the Company’s

exposures other than cash balances held in base currency and

without any offsetting. The commitment method takes into

account hedging and other netting arrangements designed to

limit risk, offsetting them against the underlying exposure (see

page 74 for further detail on leverage at year end).

2026

£’000

2025

£’000

Investment management fee (note 3)

488

1,261

Other expenses

–

836

Impact of the management fee waiver

(1)

285

–

Less: costs in relation to custody dealing

charges and one-off legal and

professional

costs

–

(466)

Total recurring expenses

1,302 1,631

Average daily net assets

129,662 158,051

Ongoing charges ratio %

c = a/b

1.00%

1.03%

(1)

As part of the transition, Artemis agreed to a nine-month fee

waiver covering the period from 7 March to 7 December 2025.

The waiver fully offset the termination fee paid to Invesco, and in

addition meant that the Company beneﬁted from paying no

management fee for the period 21 June to 7 December 2025.

Return

The return generated in a period from the investments

including

the

increase

and

decrease

in the value of

investments over time and the income received.

Total return

Total return is the theoretical return to shareholders that

measures the combined effect of any dividends paid together

with the rise or fall in the share price or NAV. In this Annual

Financial Report these return ﬁgures have been sourced from

LSEG Data & Analytics who calculate returns on an industry

comparative basis. The ﬁgures calculated below are one year

total returns, however the same calculation would be used for

three, ﬁve and ten year total returns where quoted in this

report, taking the respective NAVs and Share Prices period for

the opening and closing periods and adding the impact of

dividend reinvestments for the relevant periods.

Net Asset Value total return (APM)

Total return on net asset value per share, assuming dividends

paid by the Company were reinvested into the shares of the

Company at the NAV per share at the time the shares were

quoted ex-dividend.

Share price total return (APM)

Total return to shareholders, on a mid-market price basis,

assuming all dividends received were reinvested, without

transaction costs, into the shares of the Company at the time

the shares were quoted ex-dividend.

2026

Net Asset

Value

Price

As at 31 January 2026

434.66p

386.00p

As at 31 January 2025

449.88p

375.00p

Change in year

–3.4%

2.9%

Impact of dividend reinvestments

(1)

3.4%

4.2%

Total return for the year

c =

a+b

0.0%

7.1%

2025

Net

Asset

Value

Price

As at 31 January 2025

449.88p

375.00p

As at 31 January 2024

477.12p

424.00p

Change in year

–5.7% –11.6%

Impact of dividend reinvestments

(1)

3.3%

3.6%

Total return for the year

c =

a+b

–2.4% –8.0%

(1)

Total dividends paid during the year to 31 January 2026 of 15.00p

(2025: 16.96p) reinvested at the NAV or share price on the ex-

dividend date. NAV or share price falls subsequent to the

reinvestment date consequently further reduce the returns, vice

versa if the NAV or share price rises.

Benchmark

Total return on the benchmark is on a mid-market value basis,

assuming all dividends received were reinvested, without

transaction costs, into the shares of the underlying companies

at the time the shares were quoted ex-dividend.

Volatility

Volatility refers to the amount of uncertainty or risk about the

size of changes in a security’s value. It is a statistical measure

of the dispersion of returns for a given security or market index

measured by using the standard deviation or variance of

returns from that same security or market index. Commonly,

the higher the volatility, the riskier the security.

Securities Financing Transactions Regulation (“SFTR”) (unaudited)

As at 31 January 2026, the Trust may enter into contracts for difference (“CFD”) presenting the same characteristics as total

return swaps within the meaning of Regulation (EU/2015/2365) on transparency of securities ﬁnancing transactions and of reuse

(the “SFT Regulation”).

Global

data

Amounts

of assets engaged in SFT as at 31 January 2026:

Absolute

Market Value

Absolute

Market Value

% of Net

Currency

(Local)

Assets

Contracts for difference

GBP

154,459

154,459 0.12%

154,459

0.12%

Concentration

data

Counterparty’s country of

Counterparty

(GBP)

incorporation

Market Value

% of Net

Assets

J.P. Morgan Securities Plc

United

Kingdom

154,459 0.12%

Aggregate

transaction data

Maturity

(GBP)

< 1 day

1 day -

week

1 week -

month

1-3 months

months -

year

> 1 year

Open

Maturity

– – – – 154,459 – –

Collateral

The Trust engages in activities which may require collateral to be provided to a counterparty (‘collateral pledged’) or may hold

collateral received (‘collateral held’) from a counterparty.

No collateral was pledged or received by the Trust as at 31 January 2026.

Reuse of collateral

There is no collateral received by the Trust in relation to contracts for difference.

Safekeeping

There is no collateral received by the Trust in relation to contracts for difference.

Return and cost analysis

Returns and costs for contracts for difference are received/borne by the Trust. The monetary amounts are disclosed in the

statement of comprehensive income as ‘Net losses on derivatives’, note 2: Income as ‘Derivative income’ and note 5: Finance

costs as ‘CFD ﬁnance cost’.

Alternative Investment Fund Managers Directive Disclosures (unaudited)

Alternative Investment Fund Manager (‘AIFM’) and the Alternative Investment Fund Managers Directive (the

‘AIFMD’, the Directive)

Artemis Fund Managers Limited (“AFML”) was appointed by the

Company as AIFM with effect from 10 March 2025. In

accordance with the Directive, the Company qualiﬁes as an

Alternative Investment Fund (‘AIF’).

Details of the Company’s strategy and policies, administration

arrangements and risk management and monitoring, required

to be made available to investors in the Company before they

invest, are available on the Company’s website. Any material

changes to this information is required to be reported in the

Company’s Annual Report. There have been no material

changes to this information in the year to 31 January 2026. The

previously disclosed change of AIFM and Investment Manager,

effective from 10 March 2025, remains in place and no further

changes have occurred.

In addition, the Directive requires information in relation to the

Company’s leverage (both ‘gross’ and ‘commitment’ – see

Glossary on page 71) and the remuneration of the Company’s

AIFM to be made available to investors.

Accordingly:

–

the leverage calculated for the Company at its year end was

108% for both gross and commitment (2025 both 105%). The

limits the AIFM has set for the Company remain unchanged

at 250% and 200%, respectively;

–

the AIFM remuneration paid for the year to 31 December

2025, relating to the period when IFML was AIFM, is set out

below.

Remuneration

Artemis Fund Managers Limited (“AFML”) as the alternative

investment fund manager (“AIFM”) is required to disclose

certain information relating to remuneration paid by the AIFM

during its ﬁnancial year.

Artemis operates its remuneration policies and practices at a

group level which includes both Artemis Investment

Management LLP and its subsidiary AFML. Remuneration

levels are set to attract, retain and motivate talented partners

and staff and align the long term interests of partners and staff

with those of the ﬁrm’s clients.

The remuneration policies which apply to all partners and staff

across the group are overseen by the Remuneration

Committee. The members of the Remuneration Committee are

all non-executive officers. The Remuneration Committee is

responsible for setting and overseeing the implementation of

Artemis’ remuneration policy, including approving the

remuneration of partners and other senior staff. The

Remuneration Committee regularly reviews the remuneration

policy to ensure it remains appropriate. The Remuneration

Committee considers inputs from Artemis’ Risk & Compliance

function when reviewing remuneration matters, including any

risk adjustments considered necessary.

The Artemis remuneration period runs from 1 January to

31 December. Certain partners and staff are classiﬁed as

‘Material Risk Takers’ as their professional activities have a

material impact on the risk proﬁle of the ﬁrm. The payment of

some of their variable remuneration (which may include proﬁt

share for partners) is deferred. Further, Artemis has the ability to

reduce all or part of deferred variable remuneration that has

been

previously allocated to Material

Risk Takers both:

(a) before the end of the vesting period; and (b) within

two years following the payment of any elements of variable

remuneration.

No staff are employed by AFML directly but are employed and

remunerated by other Artemis entities. Artemis has

apportioned the total amount of remuneration paid to all

Artemis partners and staff in respect of AFML’s duties

performed for the Company based on the number of funds

managed. For the year ended 31 December 2025, the total

amount of remuneration paid by Artemis to its 205 partners

and staff attributable to AFML’s management of the Company

is estimated to be £529,040, of which £91,890 is ﬁxed

remuneration and £437,150 is variable remuneration.

The aggregate amount of remuneration attributable to duties

performed in respect of the Company and paid to AIFM

Remuneration Code staff and other Material Risk Takers for the

year ended 31 December 2025 is £4,687.

Of this amount:

•

£2,176 was paid to senior management.

•

£2,511 was paid to other staff whose professional activities

have a material impact on the risk proﬁle of the AIFM or the

Company.

Principal service providers

Registered Office and Company Number

50 Bank Street

Canary Wharf

London

E14

5NT

Website: https://www.artemisfunds.com/futureleaders

Email: artemisukfutureleaders@ntrs.com

Registered in England and Wales

Number 02129187

Investment Manager and Alternative

Investment Fund Manager

Artemis Fund Managers Limited

Cassini House

57 St James’s Street

London SW1A 1LD

Email:

aﬂ@artemisfunds.com

The Investment Manager is authorised and regulated by the

Financial Conduct Authority, 12 Endeavour Square, London E20 1JN.

Company

Secretary

Northern Trust Secretarial Services (UK) Limited

Company Secretarial Contact:

AFL mailbox: artemisukfutureleaders@ntrs.com

Independent Auditor

Ernst & Young LLP

3rd Floor

144 Morrison Street

Edinburgh EH3 8EB

Depositary, Custodian and Banker (until 9 March 2025)

The Bank of New York Mellon (International) Limited

160 Queen Victoria Street

London EC4V 4LA

Administrator (from 10 March 2025)

The Northern Trust Company, London Branch

50 Bank Street

Canary Wharf

London E14 5NT

Banker & Custodian (from 10 March 2025)

The Northern Trust Company, London Branch

50 Bank Street

Canary Wharf

London E14 5NT

Depositary (from 10 March 2025)

Northern Trust Investor Services Limited

50 Bank Street

Canary Wharf

London E14 5NT

Corporate Broker

JPMorgan Cazenove

25 Bank Street

London E14 5JP

Registrars

MUFG Corporate Markets (formerly known as Link Group)

Central Square

29 Wellington Street

Leeds LS1 4D

☎ 0371 664 0300

If you hold your shares directly as a paper share certiﬁcate and

not through an investment platform or savings scheme and have

queries relating to your shareholding you should contact the

company’s Registrar, MUFG Corporate Markets, via email

shareholderenquiries@cm.mpms.mufg.com or on: ☎ 0371 664 0300.

Calls

are charged at the standard geographic rate and will vary by provider.

MUFG Corporate Markets provides an on-line and telephone share

dealing service for paper share certiﬁcates to existing shareholders

who are not seeking advice on buying or selling. This service is

available

at dealing.cm.mpms.mufg.com or ☎ 0371 664 0445. Calls are

charged at

the standard geographic rate and will vary by provider. Calls from

outside the UK will be charged at the applicable international rate. Lines

are open 9.00am to 5.30pm Monday to Friday (excluding Bank

Holidays in England and Wales).

Shareholders holding paper share certiﬁcates can also access their

holding details via the Investor Centre app or the website at

uk.investorcentre.mpms.mufg.com. MUFG Corporate Markets is the

business name of MUFG Corporate Markets (UK) Limited.

Manager’s

website

Information relating to the Company can be found on the Company’s

section of the Manager’s website, which can be located at

https://www.artemisfunds.com/futureleaders.

The contents of websites referred to in this document, or accessible

links within those websites, are not incorporated into, nor do they form

part of, this ﬁnancial report.

Artemis Fund Managers Limited

Cassini House, 57 St James’s Street, London SW1A 1LD

6th ﬂoor, Exchange Plaza, 50 Lothian Road, Edinburgh EH3 9BY

Email aﬂ@artemisfunds.com

Website www.artemisfunds.com