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Scotland is operating in a period of significant economic transition, shaped by slowing global growth, intensifying competition for investment and rapid technological disruption. Long standing productivity challenges, demographic change and climate pressures are being amplified by constrained public finances and a more fragmented global economy.

For Scottish Enterprise, this context demands a more agile, confident and focused approach to economic development. By scanning transformative trends and translating them into clear operational priorities, we are aligning our missions, resources and delivery around what matters most.

Our approach to delivering our mission objectives will continue to evolve in response to a dynamic operating environment.

The results for the year ended 31 March 2026 are contained in the attached accounts prepared in accordance with Section 30(1) of the Enterprise and New Towns (Scotland) Act 1990 and the Accounts Direction from the Scottish Ministers. These accounts show the net expenditure of the Scottish Enterprise Group. The accounting policies explain the basis on which the accounts are prepared.

The Grant in Aid allocation is intended to cover capital and revenue expenditure (on an accruals basis) net of in-year income from sources such as the use or disposal of Scottish Enterprise's property and investment assets. In addition, there are ring fenced budget allocations for 'non-cash' costs, including depreciation, IFRS 16 reclassifications and Expected credit losses and write offs (ECLs) - (the estimated future cash shortfall from financial instruments held at amortised cost, and financial assets that have been written off during the financial year). A further budget allocation for Annually Managed Expenditure (AME) is made by the Scottish Government to cover volatile costs such as impairments and valuation adjustments which, by their nature, are not capable of being controlled to the same extent as items charged to the Resource Budget. AME budget does not form part of the original budget allocation and is therefore received during the Spring Budget Revision.