| Grant in Aid Budget Allocation 2025-26: | Original Budget Allocation | Autumn Budget Revision | Spring Budget Revision | Final Budget Allocation |
| £000 | £000 | £000 | £000 |
| Fiscal Resource | 113,622 | 7,862 | 3,943 | 125,427 |
| Fiscal Capital | 81,949 | 5,025 | 8,536 | 95,510 |
| Financial Transactions expenditure | 28,760 | - | 2,160 | 30,920 |
| Financial Transactions income | (18,500) | - | (2,160) | (20,660) |
| Annually managed expenditure | - | - | 1,500 | 1,500 |
| Total Cash Budget | 205,831 | 12,887 | 13,979 | 232,697 |
| Fiscal Resource - expected credit losses | 20,500 | - | - | 20,500 |
| Fiscal Resource - IFRS 16 adjustments (i) | (1,700) | - | - | (1,700) |
| Fiscal Capital - IFRS 16 adjustments (i) | 89 | - | - | 89 |
| Ring fenced DEL
(Non-cash costs including depreciation) | 13,500 | - | - | 13,500 |
| Annually managed expenditure
(Non-cash volatile costs including valuation adjustments) | - | - | 91,500 | 91,500 |
| Total Budget | 238,220 | 12,887 | 105,479 | 356,586 |
i) This represents budget transfers to reflect re-classifications as a result of the implementation of IFRS 16 (Leases) from April 2022.
The original Budget for 2025-26 amounted to £238.2m, comprising a grant in aid cash provision of £205.8m and a net non-cash allocation of £32.4m which consisted of £20.5m to cover ECLs; £13.5m to cover depreciation; less £1.6m cash adjustment relating to IFRS 16 leases.
During the year, Scottish Government confirmed a large number of additional net transfers of budget amounting to £118.4m. The largest individual programme transfers were £6.9m Capital (CDEL) towards the Grangemouth Just Transition Fund and £5.9m Resource (RDEL) towards Scottish Development International activity. There was also a significant non-project transfer made during the Spring Budget Revision of £93m to cover Annual Managed Expenditure (AME).
===== PAGE 39 =====
Consequently, the final approved Total Budget for 2025-26 amounted to £356.6m, comprising a cash budget of £232.7m and non-cash allocation of £123.9m. Details of Scottish Enterprise's financial outturn against the budget allocated by the Scottish Government for 2025-26 are included within the Parliamentary Accountability and Audit Report section of the Accountability Report.
Scottish Enterprise entered the 2025-26 financial year with a strong pipeline of projects with a value greater than our available budget. In order to allow maximum flexibility in the delivery of these projects, budget allocations were made based on the prioritised pipeline of projects rather than on available income. This was done recognising that there would be natural reductions in planned expenditure through the year, as well as the introduction of new priority projects, and this would be closely monitored with management of our income and expenditure budgets throughout the year. The over-allocations totalled £47.4m and were split between Capital (CDEL) of £39.7m and Resource (RDEL) of £7.7m. Financial Transactions (FT) budget was balanced from the start of the financial year. The chart below shows how the budget position changed during the financial year resulting in a successful out-turn position.
| Grant in Aid Budget Allocation 2026-27: | Original Budget Allocation |
| £000 |
| Fiscal Resource | 114,919 |
| Fiscal Capital | 83,558 |
| Financial Transactions expenditure | 17,431 |
| Financial Transactions income | (16,500) |
| Total Cash Budget | 199,408 |
| Fiscal Resource - expected credit losses | 20,500 |
| Fiscal Resource - IFRS 16 adjustments | (1,377) |
| Fiscal Capital - IFRS 16 adjustments | 5,044 |
| Total Fiscal Budget | 223,575 |
| Ring fenced DEL
(Non-cash costs including depreciation) | 13,500 |
| Annually managed expenditure | - |
| Total Budget | 237,075 |
The total Scottish Enterprise Budget is supplemented by business income generated and used to support business plan expenditure during the year. In addition, further transfers of budget from the Scottish Government are anticipated through the normal operation of the Scottish Government's Budget Revision processes.
Although we have separately identified an ECL budget of £20.5m as a prudent starting position, the Scottish Government did not specifically ring-fence this budget. Should ECL costs be lower than £20.5m, excess budget can be transferred to core cash budget to support wider economic development projects as part of a package of flexibilities agreed towards the end of 2025/26. However, should ECL budget requirements increase above £20.5m, the Scottish Government have recognised that costs relating to past investments can be difficult for Scottish Enterprise to manage, therefore in line with 2025/26, we will closely engage with the Scottish Government on ECL costs and forecasts against budget
===== PAGE 42 =====
as the year progresses, highlighting any difficulties and pressures in managing within this envelope. Scottish Government has approved the carry forward of reserves up to £3m from budget allocations from 2025/26 onwards to support future delivery. Based on final out-turn, we are able to carry forward £2.1m RDEL and £0.9m CDEL.
The Capital IFRS16 allocation of £5m was intended to be ring-fenced based on the timing of expected costs. However, the majority of the expenditure was incurred in 2025/26 and there is agreement with Scottish Government that this budget can be transferred to core cash budget for 2026/27 to fund projects deferred to enable the expenditure in 2025/26.
There will also be an opportunity later in the year to secure budget to cover costs that are charged to the Annually Managed Expenditure (AME) budget heading.
## Financial Position
As at 31 March 2026, Scottish Enterprise's net assets decreased by £45.9m to £469.6m (2025: £515.5m) as reported in Scottish Enterprise's Group Statement of Financial Position. This reduction was primarily driven by a £81.3m decrease in financial assets, largely reflecting a fall in the fair value of other investments to £390.6m (2025: £471.2m).
Non-current assets decreased overall to £567.3m (2025: £622.6m), mainly due to the reduction in financial assets noted above. This was partially offset by increases in property, plant and equipment and right of use assets, the latter reflecting remeasured lease arrangements during the year and a significant improvement in the pension position, with the retirement benefit scheme moving from a net deficit position in the prior year to a net asset position of £11.3m (2025: deficit £8.3m). This £19.6m improvement can be attributed to higher corporate bond yields over the period and 44 active members leaving through the Voluntary Exit Scheme, leading to a decrease in liabilities. This has been partially offset by higher levels of inflation, an increase in future life expectancies and lower than expected asset returns.
Current assets reduced by £6.8m to £192.6m (2025: £199.4m). This was driven by lower levels of short-term investments and assets held for sale, partially offset by an increase in cash and cash equivalents to £175.6m (2025: £170.2m). Trade and other receivables remained broadly stable year on year.
Current liabilities decreased significantly by £22.1m to £64.4m (2025: £86.5m), primarily due to reductions in trade and other payables and provisions. This reflects the timing of expenditure and settlement of liabilities during the year.
Scottish Enterprise accesses Financial Transactions funding from the Scottish Government to support investment in companies and the provision of loans. These funds are repayable over terms of up to 15 years, based on estimated returns from the underlying investments.
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During the year, £22.2m was drawn down and £10m repaid. A further £13.9m was waived by the Scottish Government following the write-off of the underlying investments, resulting in a net loan reduction of £1.7m.
## Payment Policy
Scottish Enterprise has a stated service commitment to pay our suppliers within 30 days of receipt of agreed and valid invoice, or as provided for under the terms of an agreed contract. However, following guidance from Scottish Government, Scottish Enterprise implements a payment policy of 10 working days for all suppliers.
In the year ended 31 March 2026, Scottish Enterprise paid 87% (2025: 86%) of suppliers' invoices within the revised standard. The average number of days taken to pay valid invoices during the year was 7.4 days (2025: 8.0 days).
## Social Matters
## Fraud or Corruption Claims
Scottish Enterprise has policies and procedures in place to address fraud, corruption and bribery. All Scottish Enterprise colleagues are required to act honestly and with integrity, and to safeguard the public resources for which they are responsible. Scottish Enterprise will not accept any level of fraud or corruption. Our commitment to ethical standards is set out in the Scottish Enterprise Code of Conduct for our employees, the Counter Fraud Policy and the Speak Up (Whistleblowing) Policy. These policies are regularly updated to ensure they remain relevant, fit for purpose and aligned with the requirements of the Scottish Public Finance Manual. Training on our approach to addressing fraud, bribery and corruption is included in induction training for all colleagues joining Scottish Enterprise, as well as plans for ongoing refresher training from 2026-27.
Our Counter Fraud Policy and Speak Up (Whistleblowing) Policy set out the available reporting routes, the processes that support colleagues to report concerns or suspicions of fraud or other wrongdoing, and the action that will be taken to investigate. Colleagues can raise concerns via:
Their people manager
The Director of Governance and Risk Assurance
The Head of Audit
An anonymous submission
The Chair of the Audit and Risk Committee.
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While all colleagues have responsibilities for preventing, detecting and reporting fraud, we recognise that the primary responsibility for designing, operating and reviewing appropriate internal controls to prevent and detect fraud rests with management. Management confirms the effectiveness of these controls through the internal control checklists completed as part of the annual Certificate of Assurance process. This system of internal control is reviewed on an ongoing basis by the Internal Audit Partnership team and by our external auditors, Audit Scotland. The Internal Audit Partnership team gives due regard to the possibility of fraud and other irregularities when undertaking internal audit reviews as part of the Scottish Enterprise Internal Audit Plan and seeks to identify any control weaknesses that could facilitate fraud or irregularities.
Scottish Enterprise continues to participate in the biennial National Fraud Initiative (NFI). Led by Audit Scotland, this counter-fraud exercise collects and matches data between participating public bodies to identify possible fraudulent transactions. There were no material issues arising from the 2024–25 NFI exercise for Scottish Enterprise.
During 2025–26, we made improvements in our counter-fraud maturity. We developed an organisation-wide fraud risk assessment to understand our specific vulnerabilities to fraud. We also refreshed our induction training materials and updated our Counter Fraud Policy and Speak Up (Whistleblowing) Policy to ensure they are aligned with current best practice.
## Human Rights Due Diligence
In line with Scottish Government guidance to public bodies, Scottish Enterprise is committed to human rights and requires human rights checks to be carried out before entering into business relationships for Scottish Enterprise funding. Scottish Enterprise reviewed its due diligence processes in 2025/26, which included the development of revised procedures. The review identified areas for enhancement, reflecting the increasingly complex geopolitical landscape in which Scottish Enterprise operates. Changes include an enhanced online screening and the introduction of targeted checks requiring a customer statement specifically addressing items and activities governed by the UK Strategic Exports Regime.
Following the First Minister's Parliamentary statement in September 2025, Scottish Enterprise paused the payment of new grants to, or investment in companies involved in the design, production, supply, and support of military equipment, technologies, and services whose products or services are provided to specific identified countries, where there is plausible evidence of genocide being committed by that country.
===== PAGE 45 =====
## Sanctions Policy
Scottish Enterprise has continued to implement a Sanctions Policy in line with UK Government's Legal Sanctions, and since March 2022 has continued to implement the Scottish Government's additional Discretionary Economic Measures Policy towards Russia, which have the intent to weaken the Russian regime's war efforts. The purpose of the policy is to help ensure that we are not supporting companies or individuals subject to legal sanctions and those companies that retain Russian or Belarusian trading or investment links, where these are able to be divested of.
## Fairer Scotland Duty
We are implementing The Fairer Scotland Duty which requires public authorities, including Scottish Enterprise, to address socio economic inequalities. This focuses on ensuring fair economic opportunities in line with Scottish Government's goals. The duty mandates strategic decisions to be carefully assessed, such as economic development strategies. We have integrated procedures and guidance to support colleagues in conducting assessments, aligned with our equality impact process. These requirements are included in our project lifecycle and applied to approvals from January 2019 onwards. A list of our published assessments is available on our website.
This builds on our equality obligations under the Equality Act 2010 and associated Scottish Specific Equality Duties. Further details are contained in our Equality Mainstreaming Report.
## Corporate Social Responsibility
We have a comprehensive Corporate Social Responsibility (CSR) strategy that supports our organisational goals and values, ensuring we act as a responsible corporate citizen and play an active role in communities across Scotland. Key elements of this strategy include our volunteering policy and partnerships with charities.
We operate a well-established, colleague supported volunteering programme. Our volunteering policy reflects our commitment to supporting local communities and the environment, while also contributing to the development of our people. To encourage greater participation, we introduced micro volunteering, allowing colleagues to volunteer for short periods (a minimum of one hour), rather than limiting volunteering leave to half or full days. This change has increased accessibility and uptake across the organisation.
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Colleagues can access up to 21 hours of paid volunteering leave per year (pro rata for part time colleagues). During the period 1 April 2025 to 31 March 2026, colleagues recorded 989 hours of paid volunteering leave. A total of 125 colleagues participated across 175 volunteering instances, with individual activities ranging from one hour to three days.
SE also operates a constituted Staff Charity Fund which is funded by voluntary pay deductions from SE staff. Staff retiring from SE can also request a £100 donation to be made to a charity/community group of their choice.
The Fund is overseen by a group of staff volunteers and allows any staff member to request donations to be made, on their behalf, to charity and community groups that they have an interest in or a connection to. During 2025 the Staff Charity Fund paid out 89 donations on behalf of staff totalling £35,300.
## Gaelic Language Plan
Scottish Enterprise's first edition Gaelic Language Plan for 2023 to 2028 was published in 2023. During the third year of our plan, we have delivered many activities that promote and celebrate the language and encourage its use including:
Promoting the learning of Gaelic within the organisation.
Using social media to promote Gaelic.
Published an excerpt of Operating Plan in Gaelic.
## Equality and diversity
We are committed to equality of opportunity, both as an employer and in the services we provide. Equality, Diversity and Inclusion (ED&I) is a core pillar of our People Strategy and underpins our ambition to build a fair, inclusive and high performing organisation.
Every two years, we publish an Equality Mainstreaming Report, setting out our progress in meeting the Public Sector Equality Duty and embedding equality across the organisation. Our most recent report, published in 2025, highlights how equality is being mainstreamed across our policies, practices and decision making, both as an employer and as a service provider.
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| Remuneration 2026 | Remuneration 2025 |
| £ | £ |
| Professor Richard Williams | 14,068 | 13,738 |
| Dr Poonam Malik (to 31 December 2025) | 10,551 | 13,738 |
| Dr Sue Paterson (to 31 December 2025) | 10,551 | 13,738 |
| Karthik Subramanya (to 31 December 2025) | 10,551 | 13,738 |
| Jacqui Gale MBE (from 1 January 2026) | 3,517 | - |
| Luke Logan (from 1 January 2026) | 3,517 | - |
| Cameron Murray (from 1 January 2026) | 3,517 | - |
| Stuart Patrick CBE (from 1 January 2026) | 3,517 | - |
| Greig Rooney (from 1 January 2026) | 3,517 | - |
i) In the interest of increased transparency, all amounts noted above have been disclosed as actual amounts rather than in bandings of £5,000 as required by the Financial Reporting Manual (FReM). Non-executive directors are paid salaries and allowances only and do not receive performance-related pay, benefits in kind or pension benefits.
## Remuneration Committee
The Remuneration Committee ensures that Chief Executive and Executive Leadership Team remuneration is in accordance with the parameters stipulated by the Scottish Public Finance Manual and the most current Scottish Government Public Sector Pay Policy. The Committee also reviews the ongoing appropriateness and relevance of Scottish Enterprise's overall remuneration arrangements and considers remuneration trends across the organisation, including equal pay.
The members of the Remuneration Committee who served during the year to 31 March 2026, and planned changes to the operation of the Remuneration Committee effective in 2026/27, are outlined in the Governance Statement.
## Executive Leadership Team
The Executive Leadership Team is responsible for the day-to-day management of Scottish Enterprise's activities and operations. The Chief Executive is a member of both the Board and the Executive Leadership Team.
The Chief Executive and other Executive Leadership Team members are on standard Scottish Enterprise contracts of employment. Their contracts provide for a notice period of up to 12 months.
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If an Executive Leadership Team member's employment with Scottish Enterprise is terminated on the grounds of redundancy or in the interests of the efficiency of the organisation, severance payments will apply based on age and on length of service. This basis is identical to that applied for all other colleagues.
## Executive Leadership Team Remuneration
As part of the Scottish Enterprise performance management system, each Executive Leadership Team member agrees with the Chief Executive personal performance objectives which will have a significant impact on the performance of the organisation. These objectives, and the Chief Executive's appraisal of performance against them, are subject to review by the Remuneration Committee.
Scottish Enterprise aims to ensure that the remuneration packages offered to Executive Leadership Team members:
Enable Scottish Enterprise to attract, retain and motivate high calibre executives.
Remunerate individuals fairly for individual responsibility and contribution; and
Take account of salary policy within the rest of Scottish Enterprise and the relationship that should exist between the remuneration of the Executive Leadership Team and that of other colleagues.
Basic salaries were set on 1 April 2025 following their annual review in line with the pay
remit agreed with the Scottish Government. Salary levels are established after
consideration of external market levels and internal comparisons as well as individual
responsibilities. Salary payments are made every four weeks.
Executive Leadership Team members are all members of the Scottish Enterprise Pension & Life Assurance Scheme. As ordinary members, they contribute 6% of pensionable salary and during the year Scottish Enterprise contributed 20% of the employees' pensionable salary. This is a defined benefits scheme that provides benefits at state pension age for members who joined from 01 February 2022, 65 for colleagues who joined between 01 December 2006 and 31 January 2022, or 60 for colleagues who joined before 01 December 2006.
These benefits consist of an annual pension based on final pensionable salary and pensionable service, and a tax free lump sum, payable on retirement, equivalent to three times the annual pension. Pensions increase annually in accordance with the percentage uplift set out in The Pension Increase (Review) Order announced by the United Kingdom Government each year.
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Remuneration of the Executive Leadership Team members who served during the year to 31 March 2026 was:
| Accrued Pension at normal retirement date as at 31 March 2026 and related lump sum | Real increase in pension and related lump sum at pension age | Transfer Value (i) |
| £000 | £000 | £000 | At 31 March 2026 | At 31 March 2025 | Increase in transfer value during year (net of members' contributions) |
| Adrian Gillespie | 35 – 40, plus lump sum of 105 - 110 | 2.5 – 5.0 real increase | 668 | 579 | | 28 |
| Jane Martin | 45 – 50, plus lump sum of 140 - 145 | 2.5 – 5.0 real increase | 785 | 669 | | 106 |
| Rhona Allison | 35 – 40, plus lump sum of 115 - 120 | 2.5 – 5.0 real increase | 725 | 595 | | 121 |
| Reuben Aitken | 5 – 10, plus lump sum of 15 - 20 | 0 – 2.5 real increase | 33 | 20 | | 4 |
| Gill McNeill | 0 – 5, plus lump sum of 10 - 15 | 0 – 2.5 real increase | 33 | 18 | | 7 |
| Kerry Sharp | 30 – 35, plus lump sum of 95 - 100 | 5 – 7.5 real increase | 440 | - | | 115 |
i) The cash equivalent transfer value is the actuarially assessed value of the retirement scheme benefits accrued by a member at a point in time. The benefits valued are the member's accrued benefits and include benefits related to service transferred in from previous employment. It represents a payment which would be made by a retirement benefit scheme to secure benefits in another scheme or arrangement should a member leave the scheme and choose to transfer the benefits they have accrued in this and any former scheme. Annual changes in the cash equivalent transfer value are determined by market conditions.
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## Fair Pay Disclosure
The relationship between the remuneration of the highest paid member of the Executive Leadership Team and the employee on the 25th percentile, median and 75th percentile of pay and benefits of the employees of Scottish Enterprise for the financial year are as follows:
| £000 |
| Net expenditure before taxation | 306,262 |
| Attributable to non-controlling interests in subsidiaries | 42 |
| Depreciation charge allocated to non-cash costs | (8,065) |
| Asset revaluation adjustments charged to annually managed expenditure | 3,651 |
| Net Investment impairments and fair value adjustments charged to annually managed expenditure | (92,527) |
| Net pension costs attributed to annually managed expenditure | 36 |
| Provision charged to annually managed expenditure | 2,035 |
| Scottish Government Grant income credited to reserves | (1,042) |
| Net expenditure attributed to Energy Investment Fund | (2,467) |
| Net expenditure attributed to the capital budget | (65,811) |
| Fiscal Resource Outturn | 142,114 |
## Energy Investment Fund
Scottish Enterprise manages the Energy Investment Fund for the Scottish Government. We required £2.6m of new funding in the year, £0.6m of new Capital funding and £2m of new Financial Transactions funding to cover new investments resulting from capitalised interest during the year, less repayments of £0.1m as a result of returns from investments for which the original cost was met from Financial Transactions.
In accordance with the governance letter any income generated is repayable to Scottish Government to the extent that it is not required to meet administration costs. The excess income column in the outturn table below represents the £5m repayment that was due to Scottish Government in respect of excess capital and resource income receipts for the year to March 2026. A net payment of £2.5m was made to Scottish Government in April 2026. The 2025-26 outturn for this fund was:
| £000 |
| Ardroughan Limited | Ardroughan Limited t/a Aqualife Services, provided fish vaccination technology and supporting services to the aquaculture sector with a global customer base. Raising additional funding proved difficult and the company suffered from unexpected loss of budgeted sales due to the introduction of US tariffs. The company failed to raise further funding and went in to administration in August 2025. | 646 |
| Carbon Black Systems Limited | Carbon Black System Limited was a wheelchair manufacturing company with SE first investing in 2012. The company was unable to secure the desired commercial traction and despite efforts to secure further investment to allow the company to continue to operate this was not possible and the company was struck off in March 2025. | 1,131 |
| CU Soar Limited | Scottish Enterprise supported CU Soar Limited through a R&D grant to create and safeguard jobs to undertake research and development into producing an ethical banking platform. Regrettably, challenges faced by the company were exacerbated by the insolvency of its sister company, with the interconnected nature of the business causing a cascading effect on CU Soar Limited. CU Soar Limited was dissolved in March 2026 following liquidation | 450 |
| Earthbound Games Limited | Earthbound Games Limited, an independent game development studio based in Dundee, was unable to gain sufficient traction from its developed games and was unable to gain further support from its shareholders, resulting in the voluntary liquidation of the company. | 400 |
| Epipole Limited | The Company designed a handheld optical camera for HD retinal images, utilising the latest in ultra portable optics technology however there was a failure to realise USP's over leading competitors and the company struggled to secure the additional funding that it required. It filed for voluntary liquidation in December 2025 and it is highly unlikely that there will be any recovery for Scottish Enterprise from the insolvency process. | 1,983 |
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| £000 |
| Glycogen Limited | Scottish Enterprise first invested in GlycoGen in 2018. The company was focused on the research, development and commercialisation of anti-glycan antibodies, targeting applications in oncology. In the absence of further investment from its other existing investors and inability to secure funding from new investors, the company was unable to continue leading to applying for voluntary strike off and being dissolved in January 2026. | 397 |
| Greengage Agritech Limited | The company was focused on the development of agriculture sensor systems including heating and lighting. The company failed to gain sufficient commercial traction to attract additional investment from existing shareholders and It entered voluntary liquidation in April 2025. | 2,481 |
| iMETAFILM Limited | iMetaFilm Limited provided digitisation and archiving solutions for media industry with Scottish Enterprise first investing in 2015. The company failed to generate significant revenue and after exploring all options, the decision was taken to wind the business up and the company was dissolved in February 2026. | 482 |
| Lending Crowd Finance Limited | Lending Crowd Finance, an SPV of Edinburgh Alternative Finance Limited, provided loans to 195 SMEs, supporting their growth ambitions. Scottish Enterprise provided £3.75m of junior debt to unlock a funding package allowing for a £21.4m supply of capital to be lent to these SMEs.
Covid impacted the recoverability of these loans and in order for LCF to maintain a solvent balance sheet, Scottish Enterprise has written off an element of the outstanding capital and resulting interest. Scottish Enterprise has already received more than the capital lent by it to LCF, and provisions are in place to facilitate future recovery of this written-off balance should a surplus arise in the amount recovered from the underlying loans. | 524 |
| Low Emissions Resources Global Limited | Scottish Enterprise supported Low Emissions Resources Global Limited through a R&D grant to undertake research and development into prototype solid oxide electrolyser for hydrogen. The company entered liquidation in March 2023 and was dissolved in March 2026 after a final dividend of £41k payable to Scottish Enterprise. | 536 |
| M Squared Technologies Group Limited | Scottish Enterprise provided £300,000 of equity funding to support the development of photonics and quantum technology. The business did not secure sufficient revenue to continue trading with shareholders unwilling to provide further funding, leading to a liquidator subsequently being appointed. | 300 |
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| £000 |
| Manus | Manus Neurodynamica Limited was a biotechnology and life sciences company specialising in neuromotor assessment technology, with a focus on Parkinson's disease and related movement disorders. Following initial good progress, the company failed to generate sufficient revenue and were unable to secure additional funding. The company entered into Administration in December 2025. | 1,191 |
| NexaBiome Limited | NexaBiome Limited was a biotechnology company focused on addressing the global challenge of antimicrobial resistance and improving human and animal health. Despite the market recognising the important potential of phages in the fight against AMR the company was unable to raise investment required and was placed into administration in May 2025. | 2,948 |
| R3 lot Limited | R3 IoT Limited, a satellite technology business, first received investment support from Scottish Enterprise in 2020 through the Early Stage Growth Challenge Fund which helped the company to operate through the COVID pandemic. Despite efforts to secure further investment to allow the Company to continue to operate this was not possible and administrators were appointed in June 2025. | 697 |
| Skoog Holdings Limited | The Company was focused on the development of interactive musical devices for disabled children. With limited commercial progress and despite the efforts of all stakeholders, the business was unable to achieve sufficient revenue to enable it to continue and ceased trading. | 970 |
| Trojan Energy Limited | Scottish Enterprise first invested in Trojan Energy Ltd in 2020. The Company designed, built and operated Flat and Flush electric vehicle charge points, primarily for residents who park on the street. The company was unable to achieve the forecast levels of commercial progress and despite best efforts of all stakeholders in exploring all strategic options, the company entered into Administration in February 2026. | 2,060 |
| Ubiquigent Limited | Ubiquigent Ltd was a life science company, operating as a contract research organisation. The company was unable to raise further investment and initiated a voluntary strike-off process and was dissolved in January 2026. | 450 |
| Vericall Limited | Scottish Enterprise supported Vericall Limited through a RSA grant to establish a call centre in Kirkcaldy offering Directory Enquiry and customer support services. The grant was to be used on project assets and creation of jobs. Before the end of the grant monitoring period, Vericall Limited went in to liquidation with the liquidator confirming there was no prospect of a dividend to Scottish Enterprise. | 550 |
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## Gifts
The Scottish Public Finance Manual requires gifts to be reported in notes to the accounts and individual gifts of more than £250,000 to be noted separately. Scottish Enterprise has nothing to report for the year ended 31 March 2026 in respect of gifts (2024/25: None).
## Fees and charges
As required in the Fees and Charges guidance in the Scottish Public Finance Manual, Scottish Enterprise charges market rates whenever applicable.
## Remote contingent liabilities
Contingent liabilities that meet the disclosure requirements in IAS37 Provisions and Contingent Liabilities are included in Note 22 of the Notes to the Accounts. In addition, due to the complex nature of the business activities and extensive portfolio of assets of Scottish Enterprise, there are contingent liabilities for which IAS37 does not require disclosure because Scottish Enterprise considers the probability of any requirement to meet any future liabilities to be remote.
Adrian Gillespie
Accountable Officer
26 June 2026
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Independent Auditor's Report
SECTION 3
# Independent Auditor's Report
to the Members of Scottish Enterprise, the Auditor General for Scotland and the Scottish Parliament
## SECTION CONTENTS
Reporting on the audit of the financial statements
101
Reporting on regularity of expenditure and income
104
Reporting on other requirements
104
Use of my report
## PAGE
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# Reporting on the audit of the financial statements
## Opinion on financial statements
I have audited the financial statements in the annual report and accounts of Scottish Enterprise and its group for the year ended 31 March 2026 under the Enterprise and New Towns (Scotland) Act 1990. The financial statements comprise the Group Statement of Comprehensive Net Expenditure, Scottish Enterprise Statement of Comprehensive Net Expenditure, Group Statement of Financial Position, Scottish Enterprise Statement of Financial Position, Group Statement of Cash Flows, Scottish Enterprise Statement of Cash Flows, Group Statement of Changes in Taxpayers' Equity, Scottish Enterprise Statement of Changes in Taxpayers' Equity and notes to the financial statements, 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, as interpreted and adapted by the 2025/26 Government Financial Reporting Manual (the 2025/26 FReM).
In my opinion the accompanying financial statements:
Give a true and fair view of the state of the affairs of the body and its group as at 31 March 2026 and of its net expenditure for the year then ended;
- Have been properly prepared in accordance with UK adopted international accounting standards, as interpreted and adapted by the 2025/26 FReM; and
- Have been prepared in accordance with the requirements of the Enterprise and New Towns (Scotland) Act 1990 and directions made thereunder by the Scottish Ministers.
## Basis for opinion
I conducted my audit in accordance with applicable law and International Standards on Auditing (UK) (ISAs (UK)), as required by the Code of Audit Practice approved by the Auditor General for Scotland. My responsibilities under those standards are further described in the auditor's responsibilities for the audit of the financial statements section of my report. I was appointed by the Auditor General on 3 April 2023. My period of appointment is five years, covering 2022/23 to 2026/27. Including a previous appointment, the period of total uninterrupted appointment will be six years. I am independent of the body and its group in accordance with the ethical requirements that are relevant to my audit of the financial statements in the UK including the Financial Reporting Council's Ethical Standard, and I have fulfilled my other ethical responsibilities in accordance with these requirements. Non-audit services prohibited by the Ethical Standard were not provided to the body.
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believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion.
## Conclusions relating to going concern basis of accounting
I have concluded that the use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work I have performed, I have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the ability of the body and its group to continue to adopt the going concern basis of accounting for a period of at least twelve months from when the financial statements are authorised for issue.
These conclusions are not intended to, nor do they, provide assurance on the current or future financial sustainability of the body and its group. However, I report on the body's arrangements for financial sustainability in a separate Annual Audit Report available from the Audit Scotland website.
## Risks of material misstatement
I report in my Annual Audit Report the most significant assessed risks of material misstatement that I identified and my judgements thereon.
## Responsibilities of the Accountable Officer for the financial statements
As explained more fully in the Statement of Accountable Officer's Responsibilities, the Accountable Officer is responsible for the preparation of financial statements that give a true and fair view in accordance with the financial reporting framework, and for such internal control as the Accountable Officer determines 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 Accountable Officer is responsible for assessing the ability of the body and its group to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless there is an intention to discontinue the body's operations.
===== PAGE 103 =====
# Auditor's responsibilities for the audit of the financial statements
My 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 my 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 decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. I design procedures in line with my responsibilities outlined above to detect material misstatements in respect of irregularities, including fraud. Procedures include:
Using my understanding of the central government sector to identify that the Enterprise and New Towns (Scotland) Act 1990 and directions made thereunder by the Scottish Ministers are significant in the context of the body and its group;
Inquiring of the Accountable Officer as to other laws or regulations that may be expected to have a fundamental effect on the operations of the body and its group;
Inquiring of the Accountable Officer concerning the body's policies and procedures regarding compliance with the applicable legal and regulatory framework;
• Discussions among my audit team on the susceptibility of the financial statements to material misstatement, including how fraud might occur; and
- Considering whether the audit team collectively has the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations.
The extent to which my procedures are capable of detecting irregularities, including fraud, is affected by the inherent difficulty in detecting irregularities, the effectiveness of the body's controls, and the nature, timing and extent of the audit procedures performed.
Irregularities that result from fraud are inherently more difficult to detect than irregularities that result from error as fraud may involve collusion, intentional omissions, misrepresentations, or the override of internal control. The capability of the audit to detect fraud and other irregularities depends on factors such as the skilfulness of the perpetrator, the frequency and extent of manipulation, the degree of collusion involved, the relative size of individual amounts manipulated, and the seniority of those individuals involved.
A further description of the auditor's responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website www.frc.org.uk/auditorsresponsibilities. This description forms part of my auditor's report.
===== PAGE 104 =====
# Reporting on regularity of expenditure and income
Opinion on regularity
In my opinion in all material respects the expenditure and income in the financial statements were incurred or applied in accordance with any applicable enactments and guidance issued by the Scottish Ministers.
## Responsibilities for regularity
The Accountable Officer is responsible for ensuring the regularity of expenditure and income. In addition to my responsibilities in respect of irregularities explained in the audit of the financial statements section of my report, I am responsible for expressing an opinion on the regularity of expenditure and income in accordance with the Public Finance and Accountability (Scotland) Act 2000.
## Reporting on other requirements
## Opinion prescribed by the Auditor General for Scotland on audited parts of the Remuneration and Staff Report
I have audited the parts of the Remuneration and Staff Report described as audited. In my opinion, the audited parts of the Remuneration and Staff Report have been properly prepared in accordance with the Enterprise and New Towns (Scotland) Act 1990 and directions made thereunder by the Scottish Ministers.
## Other information
The Accountable Officer is responsible for the other information in the annual report and accounts. The other information comprises the Performance Report and the Accountability Report excluding the audited parts of the Remuneration and Staff Report.
My responsibility is to read all the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or my knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If I identify such material inconsistencies or apparent material misstatements, I am required
===== PAGE 105 =====
to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work I have performed, I conclude that there is a material misstatement of this other information, I am required to report that fact. I have nothing to report in this regard.
My opinion on the financial statements does not cover the other information and I do not express any form of assurance conclusion thereon except on the Performance Report and Governance Statement to the extent explicitly stated in the following opinions prescribed by the Auditor General for Scotland.
## Opinions prescribed by the Auditor General for Scotland on Performance Report and Governance Statement
In my opinion, based on the work undertaken in the course of the audit:
The information given in the Performance Report for the financial year for which the financial statements are prepared is consistent with the financial statements and that report has been prepared in accordance with the Enterprise and New Towns (Scotland) Act 1990 and directions made thereunder by the Scottish Ministers; and
The information given in the Governance Statement for the financial year for which the financial statements are prepared is consistent with the financial statements and that report has been prepared in accordance with the Enterprise and New Towns (Scotland) Act 1990 and directions made thereunder by the Scottish Ministers.
## Matters on which I am required to report by exception
I am required by the Auditor General for Scotland to report to you if, in my opinion:
Adequate accounting records have not been kept; or
I he financial statements and the audited parts of the Remuneration and Staff Report are not in agreement with the accounting records; or
I have not received all the information and explanations I require for my audit.
I have nothing to report in respect of these matters.
===== PAGE 106 =====
## Conclusions on wider scope responsibilities
In addition to my responsibilities for the annual report and financial statements, my conclusions on the wider scope responsibilities specified in the Code of Audit Practice are set out in my Annual Audit Report.
## Use of my report
This report is made solely to the parties to whom it is addressed in accordance with the Public Finance and Accountability (Scotland) Act 2000 and for no other purpose. In accordance with paragraph 108 of the Code of Audit Practice, I do not undertake to have responsibilities to members or officers, in their individual capacities, or to third parties.
## Pauline Gillen Audit Director
Audit Scotland
4th Floor
8 Nelson Mandela Place
Glasgow
G2 1BT
===== PAGE 107 =====
SCOTTISH ENTERPRISE ANNUAL REPORT AND ACCOUNTS 2026
Primary Financial Statements
SECTION 4
# Primary Financial Statements
for the year ended 31 March 2026
SECTION CONTENTS
PAGE
Group Statement of Comprehensive Net Expenditure
108
Scottish Enterprise Statement of Comprehensive Net Expenditure
109
Group Statement of Financial Position
110
Scottish Enterprise Statement of Financial Position
112
Group Statement of Cash Flows
114
Scottish Enterprise Statement of Cash Flows
116
Group Statement of Changes in Taxpayers' Equity
118
Scottish Enterprise Statement of Changes in Taxpayers' Equity
120
===== PAGE 108 =====
## Group Statement of Comprehensive Net Expenditure
| | 2026 | 2025 |
| Notes | £000 | £000 |
| Expenditure | | | |
| Operating expenditure | 1,3 | 241,654 | 175,172 |
| Net management expenditure on staff costs | 3 | 93,629 | 92,718 |
| Other management expenditure | 3 | 15,145 | 20,751 |
| | 350,428 | 288,641 |
| Income | | | |
| Income from activities | 2 | (12,676) | (7,946) |
| Other income | 2 | (18,018) | (21,065) |
| | (30,694) | (29,011) |
| Net Operating Expenditure | | 319,734 | 259,630 |
| Share of losses in equity accounted investees | 8 | - | 286 |
| Income from investments | 2 | (141) | (471) |
| Interest receivable | 2 | (13,497) | (10,345) |
| Other finance charge | 1 | 166 | 1,847 |
| Net Expenditure after interest | | 306,262 | 250,947 |
| Taxation | 4 | 1,669 | 1,081 |
| Net expenditure after taxation | | 307,931 | 252,028 |
| Other Comprehensive Net Expenditure | | | |
| Items that will not be classified to net expenditure: | | | |
| Net (gains) / losses on revaluation of property, plant and equipment | | (3,700) | (3,709) |
| Net remeasurement (gains) / losses recognised in retirement benefit scheme | | (19,563) | (40,849) |
| Total Comprehensive Net Expenditure for the year | | 284,668 | 207,470 |
| Attributable to: | | | |
| Taxpayers' Equity | | 284,710 | 207,559 |
| Non-Controlling Interest | | (42) | (89) |
| | 284,668 | 207,470 |
The notes on pages 145 to 197 form part of these accounts.
===== PAGE 109 =====
## Scottish Enterprise Statement of Comprehensive Net Expenditure
| | 2026 | 2025 |
| Notes | £000 | £000 |
| Expenditure | | | |
| Operating expenditure | 1,3 | 233,891 | 169,631 |
| Net management expenditure on staff costs | 3 | 87,217 | 83,997 |
| Other management expenditure | 3 | 14,610 | 20,216 |
| | 335,718 | 273,844 |
| | | |
| Income | | | |
| Income from activities | 2 | (12,050) | (9,757) |
| Other income | 2 | (9,879) | (12,396) |
| | (21,929) | (22,153) |
| | | |
| Net Operating Expenditure | | 313,789 | 251,691 |
| | | |
| Income from investments | 2 | (92) | (421) |
| Interest receivable | 2 | (13,472) | (10,265) |
| Other finance charge / (income) | 1 | 166 | 1,821 |
| | | |
| Net Expenditure after interest | | 300,391 | 242,826 |
| | | |
| Taxation | 4 | 1,669 | 1,074 |
| | | |
| Net expenditure after taxation | | 302,060 | 243,900 |
| | | |
| Other Comprehensive Net Expenditure | | | |
| Items that will not be classified to net expenditure: | | | |
| Net gains on revaluation of property, plant and equipment | | (347) | (312) |
| Net remeasurement gains recognised in retirement benefit scheme | | (19,563) | (40,849) |
| | | |
| Total Comprehensive Net Expenditure for the year | | 282,150 | 202,739 |
The notes on pages 145 to 197 form part of these accounts.
===== PAGE 110 =====
## Group Statement of Financial Position
| Notes | 2026 | 2025 |
| NON-CURRENT ASSETS | | | |
| Property, plant and equipment | 5 | 168,815 | 167,499 |
| Right of use assets | 6 | 4,463 | 2,008 |
| Intangible assets | 7 | 214 | 565 |
| | 173,492 | 170,072 |
| Financial assets | | | |
| Investments in equity accounted investees | 8 | 228 | 228 |
| Other investments | 9 | 381,864 | 451,889 |
| Total financial assets | | 382,092 | 452,117 |
| Retirement benefit scheme | 11 | 11,349 | - |
| Other non-current receivables | 12 | 387 | 387 |
| Lease receivables | 13 | - | 52 |
| TOTAL NON-CURRENT ASSETS | | 567,320 | 622,628 |
| | | |
| CURRENT ASSETS | | | |
| Other investments | 9 | 8,708 | 19,319 |
| Lease receivables | 13 | 52 | 151 |
| Assets classified as held for sale | 14 | 1,497 | 2,416 |
| Inventories | 15 | 108 | 123 |
| Trade and other receivables | 16 | 6,625 | 7,270 |
| Cash and cash equivalents | 17 | 175,645 | 170,160 |
| TOTAL CURRENT ASSETS | | 192,635 | 199,439 |
| TOTAL ASSETS | | 759,955 | 822,067 |
| | | |
| CURRENT LIABILITIES | | | |
| Trade and other payables | 18 | (62,161) | (80,830) |
| Income tax payable | | (887) | (629) |
| Provisions | 19 | (154) | (3,208) |
| Lease liabilities | 20 | (1,238) | (1,826) |
| | | |
| TOTAL CURRENT LIABILITIES | | (64,440) | (86,493) |
| NON-CURRENT ASSETS PLUS NET CURRENT ASSETS | | 695,515 | 735,574 |
===== PAGE 111 =====
## Primary Financial Statements
| 2026 | 2025 |
| Notes | £000 | £000 |
| NON-CURRENT ASSETS | | | |
| Property, plant and equipment | 5 | 101,639 | 99,146 |
| Right of use assets | 6 | 4,426 | 1,487 |
| Intangible assets | 7 | 214 | 565 |
| | 106,279 | 101,198 |
| Financial assets - Other investments | 9 | 379,599 | 449,778 |
| Retirement benefit scheme | 11 | 11,349 | - |
| Other non-current receivables | 12 | 387 | 387 |
| Lease receivables | 13 | - | 52 |
| TOTAL NON-CURRENT ASSETS | | 497,614 | 551,415 |
| CURRENT ASSETS | | | |
| Other investments | 9 | 8,708 | 19,319 |
| Lease receivables | 13 | 52 | 151 |
| Assets classified as held for sale | 14 | 1,497 | 2,416 |
| Trade and other receivables | 16 | 5,753 | 6,054 |
| Cash and cash equivalents | 17 | 173,635 | 167,637 |
| TOTAL CURRENT ASSETS | | 189,645 | 195,577 |
| TOTAL ASSETS | | 687,259 | 746,992 |
| CURRENT LIABILITIES | | | |
| Trade and other payables | 18 | (60,000) | (78,241) |
| Income tax payable | | (887) | (629) |
| Provisions | 19 | (151) | (3,205) |
| Lease liabilities | 20 | (1,199) | (1,361) |
| TOTAL CURRENT LIABILITIES | | (62,237) | (83,436) |
| NON-CURRENT ASSETS PLUS NET CURRENT ASSETS | | 625,022 | 663,556 |
| NON-CURRENT LIABILITIES | | | |
| Other payables | 18 | (219,019) | (208,815) |
| Provisions | 19 | (3,564) | (2,554) |
| Lease liabilities | 20 | (3,289) | (388) |
| Retirement benefit scheme | 11 | - | (8,250) |
| TOTAL NON-CURRENT LIABILITIES | | (225,872) | (220,007) |
| ASSETS LESS LIABILITIES | | 399,150 | 443,549 |
===== PAGE 113 =====
| 2026 | 2025 |
| Notes | £000 |
| Cash flows from operating activities | | |
| Net expenditure after interest | (306,262) | (250,947) |
| Adjustments for: | | |
| Depreciation and assets written off | 6,775 | 8,648 |
| Increase in investment provision and write-off | 9,948 | 5,067 |
| Property revaluation (gain) / deficit | (2,498) | (1,264) |
| Intangible assets revaluation deficit | 138 | - |
| Investment revaluation deficit | 107,783 | 39,747 |
| Interest receivable | 2 | (13,497) |
| Interest on lease liabilities | 20 | 92 |
| Interest on lease receivables | 13 | (5) |
| Exchange movement on lease liabilities | (10) | (9) |
| Dividends receivable | 2 | (141) |
| Retirement benefit scheme net charges | (36) | 5,592 |
| Share of loss in equity accounted investees | 8 | - |
| Surplus on disposal of property, plant and equipment | (1,190) | (583) |
| Surplus on disposal of investments and equity accounted investees | 2 | (3,551) |
| (202,454) | (204,413) |
| Increase in inventories | 15 | (8) |
| Decrease in trade and other receivables | 160 | 6,040 |
| Decrease in lease receivables | 156 | 156 |
| Decrease in trade payables | (6,748) | (9,564) |
| (Decrease) / Increase in provision for future liabilities | (2,048) | (70) |
| Decrease in lease liabilities | (1,913) | (1,912) |
| (212,832) | (209,771) |
| Income tax expense | (1,411) | (1,195) |
| Net cash outflow from operating activities | (214,243) | (210,966) |
| Cash flows from investing activities | | |
| Proceeds of disposal of property, plant and equipment | 2,549 | 1,629 |
| Proceeds of disposal of financial assets and equity accounted investees | 16,725 | 17,706 |
| Repayment of other investments | 9,258 | 11,039 |
| Interest received | 6,147 | 7,191 |
| Dividends received | 141 | 471 |
| Purchase of property, plant and equipment | (405) | (2,217) |
| Purchase of financial assets | (51,692) | (43,752) |
| Net cash outflow from investing activities | (17,277) | (7,933) |
===== PAGE 115 =====
| 2026 | 2025 |
| Notes | £000 | £000 |
| Cash flows from operating activities | | |
| Net expenditure after interest | (300,391) | (242,826) |
| Adjustments for: | | |
| Depreciation and assets written off | 2,615 | 3,168 |
| Increase in investment provision and write-off | 9,948 | 2,982 |
| Property revaluation (gain) / deficit | (3,650) | (1,289) |
| Intangible assets revaluation deficit | 138 | - |
| Investment revaluation deficit | 108,030 | 40,190 |
| Interest receivable | 2 | (13,472) |
| Interest on lease liabilities | 20 | 81 |
| Interest on lease receivables | 13 | (5) |
| Dividends receivable | 2 | (92) |
| Retirement benefit scheme net charges | (36) | 5,592 |
| Surplus on disposal of property, plant and equipment | 2 | (1,190) |
| Surplus on disposal of investments and equity accounted investees | 2 | (3,256) |
| (201,280) | (205,749) |
| Decrease in trade and other receivables | (184) | 5,960 |
| Decrease in lease receivables | 156 | 156 |
| Decrease in trade payables | (6,320) | (8,480) |
| (Decrease) / Increase in provision for future liabilities | (2,044) | (68) |
| Decrease in lease liabilities | (1,409) | (1,396) |
| (211,081) | (209,577) |
| Income tax expense | (1,411) | (1,179) |
| Net cash outflow from operating activities | (212,492) | (210,756) |
| Cash flows from investing activities | | |
| Proceeds of disposal of property, plant and equipment | 2,538 | 1,629 |
| Proceeds of disposal of financial assets and equity accounted investees | 15,946 | 19,035 |
| Repayment of other investments | 9,258 | 11,039 |
| Interest received | 6,122 | 7,111 |
| Dividends received | 92 | 421 |
| Purchase of property, plant and equipment | (128) | (1,636) |
| Purchase of financial assets | (51,301) | (43,146) |
| Net cash outflow from investing activities | (17,473) | (5,547) |
===== PAGE 117 =====
| For the year ended 31 March 2026 | General Reserve | Specific Reserve | Revaluation Reserve | Non-Controlling Interest | Total |
| £000 | £000 | £000 | £000 | £000 |
| Balance at 31 March 2025 | 438,279 | 1,632 | 74,754 | 815 | 515,480 |
| | | | | |
| Net expenditure during the year | (308,057) | 84 | - | 42 | (307,931) |
| Remeasurement gains / (losses) in retirement benefits scheme | 19,563 | - | - | - | 19,563 |
| Net gains / (losses) on revaluation of property, plant and equipment | | - | 3,700 | - | 3,700 |
| Transfer between reserves | 2,643 | - | (2,643) | - | - |
| Total recognised income and expense for year to 31 March 2026 | (285,851) | 84 | 1,057 | 42 | (284,668) |
| | | | | |
| Grant in Aid from Scottish Government | 223,237 | - | - | - | 223,237 |
| Repayment of Financial Transactions funding waived | 13,937 | - | - | - | 13,937 |
| Other grants from Scottish Government | 1,618 | - | - | - | 1,618 |
| 238,792 | - | - | - | 238,792 |
| | | | | |
| Balance at 31 March 2026 | 391,220 | 1,716 | 75,811 | 857 | 469,604 |
The General Reserve is the accumulated surplus on grant in aid funded activity of Scottish Enterprise. The grant in aid provision of £223m for 2025-26 (2025: £219m) included £96m (2025: £90m) in respect of net capital expenditure.
Specific Reserves are those reserves for which their subsequent use has been restricted to a specific purpose by a subsidiary undertaking.
Revaluation Reserve is the cumulative unrealised balance arising on revaluation adjustments to assets. The Revaluation Reserve total of £76m (2025: £75m) is fully attributable to net unrealised surpluses on Land and Buildings.
===== PAGE 119 =====
## Primary Financial Statements
| For the year ended 31 March 2025 | General Reserve | Specific Reserve | Revaluation Reserve | Non-Controlling Interest | Total |
| £000 | £000 | £000 | £000 | £000 |
| Balance at 31 March 2024 | 421,656 | 1,808 | 72,390 | 904 | 496,758 |
| | | | | |
| Net expenditure during the year | (251,763) | (176) | - | (89) | (252,028) |
| Remeasurement gains / (losses) in retirement benefit scheme | 40,849 | - | - | - | 40,849 |
| Net gains / (losses) on revaluation of property, plant and equipment | - | - | 3,709 | - | 3,709 |
| Transfer between reserves | 1,345 | - | (1,345) | - | - |
| Total recognised income and expense for year to 31 March 2025 | (209,569) | (176) | 2,364 | (89) | (207,470) |
| | | | | |
| Grant in Aid from Scottish Government | 219,032 | - | - | - | 219,032 |
| Repayment of Financial Transactions funding waived | 5,473 | - | - | - | 5,473 |
| Other grants from Scottish Government | 1,687 | - | - | - | 1,687 |
| 226,192 | - | - | - | 226,192 |
| | | | | |
| Balance at 31 March 2025 | 438,279 | 1,632 | 74,754 | 815 | 515,480 |
===== PAGE 120 =====
# Scottish Enterprise Statement of Changes in Taxpayers' Equity
| For the year ended 31 March 2026 | General Reserve | Revaluation Reserve | Total |
| £000 | £000 | £000 |
| Balance at 31 March 2025 | 430,049 | 13,500 | 443,549 |
| | | |
| Net expenditure during the year | (302,060) | - | (302,060) |
| Remeasurement gains / (losses) in retirement benefits scheme | 19,563 | - | 19,563 |
| Net gains / (losses) on revaluation of property, plant and equipment | - | 348 | 348 |
| Transfer between reserves | 176 | (176) | - |
| Total recognise income and expense for year to 31 March 2026 | (282,321) | 172 | (282,149) |
| | | |
| Grant in Aid from Scottish Government | 223,237 | - | 223,237 |
| Repayment of Financial Transactions funding waived | 13,937 | - | 13,937 |
| Other grants from Scottish Government | 576 | - | 576 |
| 237,750 | - | 237,750 |
| | | |
| Balance at 31 March 2026 | 385,478 | 13,672 | 399,150 |
The General Reserve is the accumulated surplus on grant in aid funded activity of Scottish Enterprise. The grant in aid provision of £223m for 2025-26 (2025: £219m) included £96m (2025: £90m) in respect of net capital expenditure.
Revaluation Reserve is the cumulative unrealised balance arising on revaluation adjustments to assets. The Revaluation Reserve total of £14m (2025: £14m) is fully attributable to net unrealised surpluses on Land and Buildings.
===== PAGE 121 =====
## Primary Financial Statements
| For the year ended 31 March 2025 | General Reserve | Revaluation Reserve | Total |
| £000 | £000 | £000 |
| Balance at 31 March 2024 | 407,729 | 13,409 | 421,138 |
| | | |
| Net expenditure during the year | (243,900) | - | (243,900) |
| Remeasurement gains / (losses) in retirement benefit scheme | 40,849 | - | 40,849 |
| Net gains / (losses) on revaluation of property, plant and equipment | - | 312 | 312 |
| Transfer between reserves | 221 | (221) | 0 |
| Total recognised income and expense for year to 31 March 2025 | (202,830) | 91 | (202,739) |
| | | |
| Grant in Aid from Scottish Government | 219,032 | - | 219,032 |
| Repayment of Financial Transactions funding waived | 5,473 | - | 5,473 |
| Other grants from Scottish Government | 645 | - | 645 |
| 225,150 | - | 225,150 |
| | | |
| Balance at 31 March 2025 | 430,049 | 13,500 | 443,549 |
===== PAGE 122 =====
Statement of Accounting Policies
SECTION 5
## Statement of Accounting Policies
| Local Enterprise Companies |
| Scottish Enterprise Ayrshire (dormant) |
| Scottish Enterprise Borders (dormant) |
| Scottish Enterprise Dumfries & Galloway (dormant) |
| Scottish Enterprise Dunbartonshire (dormant) |
| Scottish Enterprise Edinburgh & Lothian (dormant) |
| Scottish Enterprise Fife (dormant) |
| Scottish Enterprise Forth Valley (dormant) |
| Scottish Enterprise Glasgow (dormant) |
| Scottish Enterprise Grampian (dormant) |
| Scottish Enterprise Lanarkshire (dormant) |
| Scottish Enterprise Renfrewshire (dormant) |
| Scottish Enterprise Tayside (dormant) |
### 10. Fair Value Measurements
The following table sets out the assets and liabilities that are measured and recognised at fair value at 31 March:
| Valuation approach, key unobservable inputs and relationship between unobservable inputs and fair value |
| Financial assets - held at fair value through profit or loss: | Scottish Enterprise holds a number of investments across a range of different instruments, including equity, preference shares and loans. Shares which have voting rights attached are treated as equity and will be valued on a fair value basis in line with international industry standards. Fair value is the price that would be received to sell an asset in an orderly transaction between market participants given current market conditions at the measurement date. |
| Debt instruments that have been provided as a means of bridge funding to the next equity round, will be similarly valued on a fair value basis. Cost may be the best indicator of fair value, unless market or company specific conditions exist, which would indicate that fair value differs from cost. |
| Several valuation techniques may be considered for use in estimating fair value, with judgement applied when considering case-specific factors or terms of the investment which may impact fair value. Valuation techniques that will be considered, include price of recent investment, earnings multiple, turnover multiple, net asset value, indicative offers and for listed companies available market prices. The key selection criteria for the valuation technique adopted is it should be appropriate given the nature, facts and circumstances of the investment. |
| Scottish Enterprise's portfolio comprises mostly unquoted investments in seed, start up and early stage companies for which there is not active market and in many cases the portfolio companies are pre-revenue or loss making (or both), which rules out earnings or turnover multiple based valuation techniques. Consequently, the fair value of the majority of investments is established by reference to valuation placed on the investee company at the most recent round of investment or price of recent investment; however Scottish Enterprise will take into account the circumstances of the funding round, current company performance relative to plan and any subsequent events which may impact on fair value. |
| Where the portfolio company is a more established business with an identifiable stream of earnings that are considered to be maintainable, the fair value of Scottish Enterprise's investment will be established by the application of a multiplier to the earnings of the business. The multiplier will be based on the quoted price / earnings ratio appropriate |
===== PAGE 169 =====
| Valuation approach, key unobservable inputs and relationship between unobservable inputs and fair value |
| to the industry sector, discounted for lack of marketability, liquidity and other relevant factors which can vary considerably by sector. |
| There was one company valued using the earnings multiple basis at 31 March 2026. The multiple applied (6x) was arrived at with reference to publicly available data on comparable companies and represented a significant discount to the sector multiple applied to companies in the public markets. |
| A number of industries have industry-specific valuation benchmarks and certain financial services, IT and some service sectors where long-term contractors are a key feature, use turnover multiples as a valuation benchmark based on the assumption that purchasers are willing to pay for turnover or market share. |
| For early stage and emerging growth companies that have negative earnings, both historical and projected, a multiple of turnover may be considered as an appropriate valuation technique for calculating Fair Value. Where the portfolio company meets these characteristics, we do adopt a turnover based multiple approach with reference to market comparable data that is available e.g. multiples on recent exit transactions, multiple data that is available online for certain sectors / type of business etc. Judgement can then be applied, based on the facts and circumstances of the particular portfolio company to determine the most appropriate revenue multiple for the purposes of determining Fair Value. In portfolio companies where we have adopted a turnover multiple. |
| Revenue multiplier has ranged from 1.5x to 3.0x (mean 2.04x) turnover. |
| The valuation basis for the equity portfolio at the 31 March 2026 is as follows: |
| % of equity portfolio |
| Valuation basis | (based on volume) |
| Price of recent investment | 91.9 |
| Turnover multiple | 3.6 |
| Earnings multiple | 0.5 |
| Asset valuation | 0.5 |
| Indicative offer price | 0.5 |
| Listed share price | 3.0 |
| Total | 100.0 |
===== PAGE 170 =====
| Valuation approach, key unobservable inputs and relationship between unobservable inputs and fair value |
| Financial assets - held at amortised cost | Fair value is based on amortised cost using the effective interest rate method derived from the anticipated cash flows from the investment over its estimated life. |
| For loans with interest at below market value, cash flows are discounted to measure fair value. Scottish Enterprise uses the higher of the of the rate intrinsic to the financial instrument and the nominal financial instrument discount rate set by HM Treasury of 2.45% (2025: 2.15%). |
| A provision for impairment is established if there is objective evidence that Scottish Enterprise will not be able to collect all amounts due according to the terms of the investment. |
| Land | Fair value of land is derived by analysis of comparable sales evidence and quoted prices of land parcels offering similar characteristics in similar locations to the various land parcels being appraised.
Consideration is given to local market forces, developer or occupational demand and competing supply. The assets are valued on a capital rate per acre basis with adjustment made to reflect location, site size, potential phasing of future development and, where appropriate, site servicing costs to unlock the development opportunity. |
| Buildings | Fair value of the buildings is derived by analysis of comparable sales transactions of properties offering similar characteristics to the assets under consideration. These are generally derived by adopting an income approach by constructing an envisaged cash flow reflecting the rental income stream, vacancy rates and irrecoverable expenditure associated with any period of vacancy prior to re-letting. The resultant valuations are cross checked where appropriate on a capital per square feet basis. |
| Within the portfolio, equivalent yields have typically been in the range 7.5% to 15% with rental voids generally between 6 and 24 months upon individual lease expires. Rental growth has been factored in on a unit by unit basis where evidence supports the contention. |
| The higher the yield, the longer the vacancy period and the lower any rental growth prospects, then the lower the fair value will be.
The lower the yield, the shorter the vacancy period and the greater the rental growth prospects, then the higher the fair value will be. |
===== PAGE 171 =====
### 11. Retirement Benefit Scheme
Scottish Enterprise operates the Scottish Enterprise Pension & Life Assurance Scheme for colleagues which is a defined benefits scheme that provides benefits in the form of a guaranteed level of pension payable for life. The level of benefits provided depends upon the members' length of service and their final pensionable salary. The assets of the scheme are held separately from those of Scottish Enterprise, being invested by the Trustees of the scheme. There are ten Trustees in total, comprising an independent Chairman, five Trustees appointed by Scottish Enterprise and four nominated by members. The Trustees are responsible for ensuring the scheme is run in accordance with the members' best interests and the pension laws of the United Kingdom, as overseen by the Pensions Regulator.
A full actuarial valuation of the Scottish Enterprise Pension & Life Assurance Scheme was carried out using membership data at 31 March 2023 and the results of that valuation have been projected to 31 March 2026 by Isio, qualified independent actuaries. The next formal valuation will be carried out during 2026-27 based on data at 31 March 2026.
| Organisation | Board Member | Position |
| Clyde Gateway URC | Stuart Patrick | Non-executive Director |
| Connected Places Catapult | Stuart Patrick | Non-executive Director |
| Glasgow Chamber of Commerce | Stuart Patrick | Chief Executive |
| Heriot-Watt University | Professor Gillian Murray | Deputy Principal (Enterprise and Business) |
| Professor Richard Williams | Principal and Vice-Chancellor |
| National Physical Laboratory | Professor Sir Jim McDonald KT, GBE Professor Stephen McArthur | Non-executive Directors |
| Scottish Environmental Protection Agency | Dr Sue Paterson | Board member |
| Skills Development Scotland | Dr Poonam Malik | Board member |
| University of Dundee | Karthik Subramanya | Court member |
| University of Strathclyde | Professor Stephen McArthur | Principal and Vice-Chancellor |
| University of Strathclyde, Bahrain | Professor Stephen McArthur | Interim President |
### 26. Schedules of Investments at 31 March 2026
Disclosure of all Scottish Enterprise's investments, particularly in small businesses, would create a schedule of excessive length. This schedule discloses all investments where Scottish Enterprise holds 20% or more of the voting rights, and where the total investment is in excess of £100,000; and all other investments in excess of £1m, but excludes equity accounted investees which are disclosed in Note 8. Investment amounts are stated at cost before revaluations or provisions.
All companies are incorporated in the United Kingdom unless otherwise stated.
Shares described are ordinary shares, unless indicated by "(P)", where they are preference shares.
===== PAGE 198 =====
# Investments greater than £100,000 and voting rights 20% or more
| Voting Rights | Shares | Loans | Commitments |
| % | £000 | £000 | £000 |
| Actual Analytics Limited | | | | |
| Software for the analysis of animal behaviour | 29.90 | 868 | - | - |
| AF Clothing Limited | | | | |
| Designer and retailer of stylish, versatile and sustainable clothing for women | 29.22 | 571 | - | - |
| Aridhia Informatics Limited | | | | |
| Biomedical informatics and analytics | 22.69 | 748 | 1,240 | - |
| Arrayjet Limited | | | | |
| Microarray printers and services | 25.72 | 1,437 | - | - |
| Aurum Biosciences Limited | | | | |
| Stroke therapy | 29.02 | 1,050 | - | - |
| Beta Bugs Limited | | | | |
| Insect genetics biotechnology company | 29.85 | 1,317 | - | - |
| Biotangents Limited | | | | |
| Diagnostics for infectious diseases in livestock | 29.01 | 2,947 | - | - |
| Blazing Keep Limited | | | | |
| Parent of multimedia entertainment group | 27.43 | 4,355 | - | - |
| Bluebox Systems Group Limited | | | | |
| Aviation sector software design/developer | 26.48 | 1,289 | - | - |
| Bsolve Limited | | | | |
| Manufacture of fast dissolving films | 27.97 | 2,788 | 250 | - |
| Calcvis Limited | | | | |
| Dental medical device co-visualise calcium loss | 22.56 | 5,573 | - | - |
| Carcinotech Ltd | | | | |
| Printing 3D models for cancer drug testing | 20.37 | 1,590 | - | - |
| Causeway Therapeutics Limited | | | | |
| Patented therapy for the treatment of tedinopathy | 22.70 | 3,924 | - | - |
| Chromacity Limited | | | | |
| Design and manufacture of advanced lasers | 29.56 | 1,612 | 302 | - |
| Clyde Biosciences Limited | | | | |
| Cardiac drug screening product | 22.71 | 708 | 490 | - |
===== PAGE 199 =====
## Notes to the Accounts
| Voting Rights | Shares | Loans | Commitments |
| % | £000 | £000 | |
| Conjunct Limited | | | | |
| Design and manufacture of advanced lasers | 28.67 | 698 | 30 | |
| Cytomos Limited | | | | |
| Development of real-time cell sensing devices | 28.66 | 4,996 | - | |
| DestiNA Genomics Ltd | | | | |
| Nucleic acid testing and diagnostics assays solutions | 20.22 | 314 | - | |
| Drinkshare Holdings Limited | | | | |
| Technology-enabled e-commerce retailer | 20.77 | 1,999 | - | |
| DXCover Limited | | | | |
| Developing blood serum testing to detect cancer | 22.42 | 4,301 | - | |
| Dyneval Ltd | | | | |
| Precision tech to measure small particles, microbes and spermatozoa | 23.11 | 924 | - | |
| Edinburgh Alternative Finance Limited | | | | |
| Fintech platform offering SME funding | 23.96 | 3,893 | - | |
| Edinburgh Molecular Imaging Limited | | | | |
| Medical imaging reagents | 20.27 | 1,430 | 1,297 | |
| Energyflo Construction Technologies Limited | | | | |
| Clean technology specialists - construction | 26.50 | 850 | 375 | |
| Fios Genomics Limited | | | | |
| Statistical and bioinformatic analyses | 20.54 | 536 | - | |
| Gas Sensing Solutions Ltd | | | | |
| High-speed low-cost precision gas sensor | 28.98 | 1,686 | - | |
| Global Surface Intelligence Ltd | | | | |
| Geospatial analytics provider | 24.74 | 1,373 | - | |
| Glox Therapeutics Limited | | | | |
| Drug discovery company | 21.49 | 2,000 | - | |
| Good.Loop Ltd | | | | |
| Ethical advertising company | 20.23 | 1,819 | - | |
| Heero Technologies Limited | | | | |
| Net zero software tools | 21.49 | 389 | - | |
| ILC Therapeutics Ltd | | | | |
| Early-stage bitechnology company | 28.43 | 2,980 | - | |
===== PAGE 200 =====
| Voting Rights | Shares | Loans | Commitments |
| % | £000 | £000 | |
| Ingenious Audio Limited | | | | £000 |
| Developer of a 'Jack' a wi-fi guitar plug-in device | 29.62 | 540 | - | - |
| Insignia Technologies Limited | | | | - |
| Smart label technology | 29.90 | 2,094 | - | - |
| Kibosh Ltd | | | | - |
| Plumbing components manufacturer | 25.76 | 679 | 48 | - |
| LIVE IT Group Ltd | | | | - |
| Operates an online ticketing and booking service | 21.96 | 818 | - | - |
| Logan Energy Limited | | | | - |
| Hydrogen fuel cell consultancy and installation | 29.88 | 3,051 | - | - |
| Macomics Ltd | | | | - |
| Drug discovery | 25.22 | 2,325 | 2,000 | - |
| Mullin Ink Jet Media Limited | | | | - |
| Niche producer of specialist paper | 29.07 | 100 | - | - |
| My1Login Limited | | | | - |
| Developer of internet-based applications | 29.31 | 1,769 | 73 | - |
| NeurocentRx Pharma Limited | | | | - |
| Reformulation of existing drug agents for new uses | 27.78 | 1,040 | 481 | - |
| Objective Associates Limited | | | | - |
| Seller of software solutions to online retailers | 26.57 | 490 | - | - |
| Omideon Limited | | | | - |
| Prevention and treatment of infectious diseases | 28.13 | 559 | - | - |
| Orbital Marine Power Limited | | | | - |
| Tidal energy technology developer | 29.88 | 10,260 | 3,970 | - |
| Outplay Entertainment Limited | | | | - |
| Development and publication of social digital games | 23.72 | 2,850 | - | - |
| Pneumagen (Holdings) Limited | | | | - |
| Prevention and treatment of infectious diseases | 23.14 | 5,094 | - | - |
| PP Old Limited | | | | - |
| Personal security device | 29.89 | 793 | - | - |
| ProFactor Pharma Ltd | | | | - |
| Pharmaceutical development | 25.96 | 1,294 | - | - |
===== PAGE 201 =====
| Voting Rights | Shares | Loans | Commitments |
| % | £000 | £000 | |
| Pufferfish Limited | | | | £000 |
| Spherical display systems for events and exhibitions | 28.81 | 1,257 | - | - |
| QED Naval Ltd | | | | |
| Foundation platform for tidal turbines | 20.11 | 903 | 185 | - |
| RAB Microfludics Research and Development Company Limited | 24.01 | 1,209 | - | - |
| Microfludic lab-on-a-chip technology | | | | |
| Red Sixty One Limited | | | | |
| Ticketing software/systems provider | 29.90 | 1,289 | - | - |
| Robotical Ltd | | | | |
| Educational robots | 23.04 | 887 | - | - |
| Saloca Ltd | | | | |
| Software services provider of online booking system | 29.29 | 1,436 | - | - |
| Scotmas Group Limited | | | | |
| Water purification business | 27.35 | 1,250 | - | - |
| Seluna Limited | | | | |
| MedTech software company | 20.48 | 401 | - | - |
| Share In Limited | | | | |
| Direct investment channel technology and solutions | 23.16 | 480 | - | - |
| Singular Photonics Limited | | | | |
| HGSU Photonics company | 22.22 | 758 | - | - |
| SisalTech Limited | | | | |
| Low carbon natural fibre building insulation | 23.19 | 683 | - | - |
| Sistemic Scotland Limited | | | | |
| MicroRNA profiling and analysis services | 29.89 | 1,279 | - | - |
| Skylark Lasers Limited | | | | |
| Manufacture and sale of laser products | 28.00 | 2,750 | - | - |
| Snapdragon Monitoring Limited | | | | |
| Monitoring software for IP protection | 22.75 | 1,195 | - | - |
| Sofant Technologies Limited | | | | |
| Develops smart antennae for mobile communications | 21.81 | 5,887 | - | - |
| Sonis Smart Security Limited | | | | |
| Wireless security systems | 29.46 | 609 | - | - |
| Symbiosis Holdings (Scotland) Limited | | | | |
| Pharmaceutical services contract manufacturer | 27.89 | 1,077 | - | - |
===== PAGE 202 =====
| Voting Rights | Shares | Loans | Commitments |
| % | £000 | £000 | |
| 2-B Energy Holding BV | | | | |
| Offshore wind technology developer | 11.62 | 3,751 | - | |
| Registered in Netherlands | | | | |
| 3F Bio Ltd | | | | |
| Innovative mycoprotein production technology/method | 4.14 | 3,378 | - | |
| Ace Aquatic Limited | 6.77 | 1,850 | - | |
| Aquaculture technology company | | | | |
| Acu-Flow Limited | 15.76 | 1,500 | - | |
| Developed novel nebuliser technology | | | | |
| Adinmo Ltd | | | | |
| An in game personalised brand advertising platform | 18.73 | 2,000 | - | |
| Administrate Limited | 15.00 | 4,645 | - | |
| Develop/supply business training software | | | | |
| Airglove Medical Limited | 15.15 | 250 | - | |
| MedTech | | | | |
| All Terrain All Electric Limited | 0.00 | - | 1,000 | |
| Manufacture of Motor vehicles | | | | |
===== PAGE 203 =====
| Voting Rights | Shares | Loans | Commitments |
| % | £000 | £000 | £000 |
| Amiqus Resolution Limited AML software | 15.47 | 2,252 | - | - |
| Approov Limited | | | | |
| Providing flexible, automated embedded system design | 10.82 | 2,789 | - | - |
| Aveni Ltd | | | | |
| AI, machine learning and natural language processing | 14.49 | 2,703 | - | - |
| BioCaptiva Limited | | | | |
| DNA capture device | 11.03 | 1,017 | - | - |
| Bio-Images Drug Delivery Limited | | | | |
| Drug formulation development | 5.53 | 735 | 400 | - |
| Blockstar Holdings Limited | | | | |
| Software Development Company | 2.89 | 700 | 800 | - |
| Boomerang Commerce Inc | | | | |
| E-commerce data analytics tool | 0.27 | 2,341 | - | - |
| Bright Ascension Limited | | | | |
| Software products & services global space industry | 1.87 | 240 | 1,350 | - |
| Broker Insights Limited | | | | |
| "Insurtech" - commercial insurance platform | 17.52 | 2,718 | - | - |
| CardioPrecision Ltd | | | | |
| Medical device company in cardiovascular sector | 12.05 | 1,258 | - | - |
| Cellucomp Limited | | | | |
| Development of products from high tech composites | 10.91 | 2,489 | - | - |
| Celtic Renewables Grangemouth Limited | | | | |
| Low carbon biochemicals from whisky by-products | - | - | 21,300 | - |
| Celtic Renewables Limited | | | | |
| Low-carbon biochemicals from whisky by-products | 7.78 | 2,359 | 5,100 | - |
| Censo Biotechnologies Ltd | | | | |
| Stem cell technology company | 8.68 | 2,653 | - | - |
| Ceres Holographics Limited | | | | |
| Development of holographic technology | 19.26 | 1,803 | - | - |
| Cerulean Winds Limited | | | | |
| Offshore wind developer | - | - | 6,542 | - |
===== PAGE 204 =====
| Voting Rights | Shares | Loans | Commitments |
| % | £000 | £000 | |
| Cloudsoft Corporation Limited | | | | |
| Development of cloud computing software | 3.78 | 2,388 | - | - |
| Consolidated Craft Breweries Limited | 0.26 | 1,490 | - | - |
| Craft brewery | | | | |
| CSignum Limited | 15.35 | 1,414 | - | - |
| Wireless Communication Technology | | | | |
| Cuantec Limited | 15.04 | 1,281 | 200 | - |
| Developing next-generation digital forensic tools | | | | |
| Cumulus Oncology Limited | 13.36 | 2,544 | - | - |
| Oncology drug discovery | | | | |
| Cyacomb Limited | 13.37 | 2,159 | - | - |
| Develop next-generation digital forensic tools | | | | |
| Duradiamond Software Limited | 18.31 | 1,044 | - | - |
| Integrated livestock management for sheep/cattle | | | | |
| European Investment Fund Registered in Luxembourg | 0.07 | 1,275 | - | 3,482 |
| Elasmogen Limited | 13.43 | 2,149 | - | - |
| Drug development focused inflammatory eye disease | | | | |
| Encompass Corporation Group Holdings Limited | 4.00 | 3,490 | - | - |
| Technology company | | | | |
| Enterobiotix Limited | 9.10 | 4,979 | - | - |
| Microblome therapeutics | | | | |
| Exergy3 Limited | 11.30 | 1,699 | - | - |
| Thermal Energy Storage Systems | | | | |
| Fastball Holdings LLC | 1.87 | 6,878 | - | - |
| Holding company: Flutter share sale proceeds | | | | |
| Flutter Entertainment plc | | | | |
| Global sports betting, gaming and entertainment provider | 0.02 | 6,747 | - | - |
| Quoted on LSE | | | | |
| Goodmark Medical (International) Limited | 6.18 | 1,307 | - | - |
| SaaS medical technology company | | | | |
===== PAGE 205 =====
## Notes to the Accounts
| Voting Rights | Shares | Loans | Commitments |
| % | £000 | £000 | |
| Green Bioactives Limited | | | | £000 |
| Biomanufacturing platform for plant natural products | 16.14 | 1,078 | - | - |
| Heliex Power Limited | | | | |
| Manufacturer of energy efficiency products | 7.40 | 3,690 | 175 | - |
| Innovatum Group Limited | | | | |
| Developing energy efficient technologies | 12.15 | 1,101 | - | - |
| Intelligent Growth Solutions Limited | | | | |
| Developed a unique vertical food growing system | 2.62 | 6,946 | 1,134 | - |
| Invizius Limited | | | | |
| Technology addressing side effects of dialysis | 13.86 | 2,875 | - | - |
| iOpt Holdings Limited | | | | |
| Saas remote monitoring of properties | 12.99 | 754 | 1,000 | - |
| IoTech Systems Limited | | | | |
| Internet of Things (IoT) software company | 10.89 | 2,770 | - | - |
| Isle of Harris Distillers Limited | | | | |
| Malt whisky distillery based on the Isle of Harris | 14.62 | 1,500 | - | - |
| Itza Media Limited | | | | |
| E learning specialist | 6.13 | 1,000 | - | - |
| Kultralab Limited | | | | |
| Behavioural science and technology solution | 18.22 | 1,741 | - | - |
| Liberty Steel Dalzell Ltd | | | | |
| Production of steel products | - | - | 7,000 | - |
| Liftango Group Limited | | | | |
| Technology for efficient and sustainable transport | 12.96 | 2,362 | - | - |
| Lustre Skin Ltd | | | | |
| Development of medical healthcare devices | 1.04 | 2,974 | - | - |
| Mangata Networks Inc | | | | |
| Satellite communications Registered in the United States | 3.63 | 2,298 | 2,000 | - |
| MedAnnex Limited | | | | |
| Development stage biotech company | 7.15 | 1,720 | - | - |
===== PAGE 206 =====
| Voting Rights | Shares | Loans | Commitments |
| % | £000 | £000 | £000 |
| MeyGen Holdings Limited Holding company relating to asset/portfolio management | 16.55 | 12,100 | - | - |
| MeyGen plc Development of tidal power generation project | - | - | 9,308 | - |
| MiAlgae Ltd Produces high quality microalgal products | 15.08 | 4,553 | - | - |
| Microplate DX Limited Rapid Antibiotic Testing Kit | 6.91 | 750 | 350 | - |
| Mironid Limited Life sciences drug development | 13.87 | 3,449 | 1,500 | - |
| Mocean Energy Ltd Wave energy | 16.02 | 1,585 | 725 | - |
| Morrison Glasgow Distillers Limited Distilling, rectifying and blending of spirits | 17.20 | 2,513 | - | - |
| Morvolts Limited Special purpose vehicle for Community Hydro | - | - | 1,243 | - |
| NCTech Ltd Development and sale of 3D camera technology | 6.77 | 5,500 | 7 | - |
| Newmake Limited New start distillery in central Edinburgh | 15.15 | 1,933 | - | - |
| Novabiotics Limited Design and development of anti-infectives | 18.21 | 3,338 | 2,062 | - |
| Novosound Ltd Thin film ultrasound technology | 9.76 | 1,362 | 638 | - |
| NuCana plc Oncology focussed biopharmaceutical company Quoted on NASDAQ US | 0.01 | 1,670 | - | - |
| Ocutec Limited Next generation contact lens development | 0.21 | 1,603 | 352 | - |
| Our Community Energy Limited Renewable energy (wind farm) | - | - | 999 | - |
| Pacla Medical Limited Developed a robotic massage bed | 16.65 | 1,059 | - | - |
| Peacock Technology Limited Automation technologies | 19.63 | 2,010 | 943 | - |
===== PAGE 207 =====
| Voting Rights | Shares | Loans | Commitments |
| % | £000 | £000 | £000 |
| Phlo Technologies Ltd
Online pharmacy service | 12.16 | 3,579 | 675 | - |
| PneumoWave Limited
Real time respiratory monitoring | 16.07 | 1,940 | 150 | - |
| PowerPhotonic Limited
Development and sale of custom laser optics | 19.94 | 2,445 | - | - |
| Pure LiFi Limited
Development of data communication over light waves | 9.90 | 4,451 | - | - |
| Quantum Leap Technologies (Holdings)
Limited
Robotics engineering and software programming | 7.07 | 1,093 | - | - |
| Query Click Limited
Digital marketing | 14.27 | 1,999 | - | - |
| Raptor Data Limited
Signal processing technology oil and gas sector | 15.15 | 2,378 | - | - |
| Reventas Limited
Novel process recycling mixed plastics into virgin quality polymers | 8.40 | 1,386 | - | - |
| Rhizocore Technologies Limited
Biotechnology company | 10.37 | 1,271 | - | - |
| RICO Developments Limited
Online marketing and sales platform for FMCGs | 19.18 | 1,242 | 126 | - |
| Ryboquin Company Limited
Investment company in RNA therapeutics | 17.28 | 825 | 1,785 | - |
| Second Perspective Limited
Wearable technology - wellness/medical device | 14.81 | 1,394 | - | - |
| Sensor Holdings Limited
Motion capture gloves | 8.46 | 2,000 | - | - |
| Shot Scope Technologies Limited
Golf performance tracking products & software | 19.02 | 3,320 | - | - |
| Snappy Shopper Limited
E-commerce digital platform | 7.29 | 1,426 | - | - |
| Solasta Bio Limited
Nature inspired insecticides | 9.29 | 1,056 | - | - |
===== PAGE 208 =====
| Voting Rights | Shares | Loans | Commitments |
| % | £000 | £000 | |
| Speech Graphics Ltd | 6.09 | 1,552 | - | - |
| Facial animation services |
| Spire Global Inc. | 1.72 | 5,229 | - | - |
| Satellite data analytics Quoted on NYSE US |
| Sunamp Limited | 12.00 | 2,042 | - | - |
| Design & manufacture of hot water tanks |
| Synaptec Limited | 7.74 | 859 | 185 | - |
| Energy network monitoring |
| Talking Medicines Limited | 16.95 | 935 | 286 | - |
| Life sciences data capture |
| Tantillus Synergy Limited | 15.88 | 3,477 | 1,353 | - |
| Food colourant production |
| The HALO Kilmarnock Limited | 0.00 | | 6,360 | - |
| Buying and selling of own real estate |
| The IDCO. Limited | 6.86 | 1,476 | - | - |
| Online digital identity and verification |
| Titan Energies Limited | - | - | 1,038 | - |
| Energy sector, tooling and service company |
| Travelnest Limited | 10.63 | 3,850 | - | - |
| Software for owners of holiday rentals |
| Unity Software Inc. | | | | |
| Data mining/analytics services to games industry | 0.03 | 2,329 | - | - |
| Register in the United States Quotes on NYSE US |
| Volo Holdings Limited | 6.85 | 1,184 | - | - |
| In-train entertainment systems |
| Well-Safe Solutions Limited | 1.93 | 1,122 | - | - |
| Well plug and abandonment business |
| Xergy Group Limited | 7.78 | 1,670 | - | - |
| Provides a cloud-based work management system |
| Epidarex Capital II LP | - | - | 2,529 | - |
| Investment fund |
| Scottish-European Growth Co-Investment Programme | - | - | 5,887 | 43,648 |
| Investment fund |
| Total of items listed | | 218,039 | 86,502 | 47,130 |
===== PAGE 209 =====
Notes to the Accounts
