BlackRock Greater Europe Investment Trust Plc - Half-year Report
LEI: 5493003R8FJ6I76ZUW55
Half Yearly Financial Report for the six months ended
Performance record
As at As at
28 February 31 August
2025 2024
Net assets (£’000)1 620,574 640,300
Net asset value per ordinary share (pence) 639.30 644.60
Ordinary share price (mid-market) (pence) 596.00 601.00
Discount to cum income net asset value2 6.8% 6.8%
FTSE World Europe ex UK Index 2321.09 2219.24
========= =========
For the six For the six
months ended months ended
28 February 29 February
2025 2024
Performance (with dividends reinvested)
Net asset value per share2 0.1% 18.6%
Ordinary share price2 0.1% 20.5%
FTSE World Europe ex UK Index 4.6% 9.6%
========= =========
For the period For the period
since inception since inception
to 28 February to 29 February
2025 2024
Performance since inception (with dividends
reinvested)
Net asset value per share2 798.3% 814.2%
Ordinary share price2 748.5% 784.3%
FTSE World Europe ex UK Index 486.9% 431.2%
========= =========
For the six For the six
months ended months ended
Change
28 February 29 February %
2025 2024
Revenue
Net (loss)/profit on ordinary activities (43) 63 -168.3
after taxation (£’000)
Revenue (loss)/earnings per ordinary share (0.04) 0.06 -166.7
(pence)3
Dividends
Interim dividend (pence) 1.75 1.75 –
========= ========= =========
1 The change in net assets reflects payments for shares repurchased into treasury, portfolio movements and dividends paid.
2 Alternative Performance Measures, see Glossary contained within the Half Yearly Financial Report.
3 Further details are given in the Glossary contained within the Half Yearly Financial Report.
Chairman’s Statement
Overview
The Company’s Net Asset Value (NAV) underperformed the reference index (the FTSE World Europe ex
A potential ceasefire in
Since the period end to
1
Source: BlackRock. Data from Bloomberg,
Revenue earnings and dividends
The Company’s revenue return per share for the six-month period ended
The Board has declared an interim dividend of 1.75p (2024: 1.75p) per share. The dividend will be paid on
The Company has consistently grown its regular dividends in all the 19 financial periods since its inception on
Management of share rating
The Board monitors the discount to NAV closely and receives regular updates from the Manager and our corporate broker,
As part of this programme, the Company repurchased 2,261,528 shares (representing 1.9% of the issued share capital) for a total consideration of £13,209,000 over the six months under review. Since
All shares were bought back at a discount to the prevailing NAV and the buy backs were therefore accretive to existing shareholders. All shares bought back have been placed in treasury for future reissue.
There are several factors which influence the level of premium/discount at which a Company’s shares trade in the market, many of which are outside of the Board’s direct scope of control or influence, not least the pervasive selling in the investment trust sector we have witnessed since early 2022 which has depressed share prices across the closed end funds sector. It is important to view the Company’s share rating in the wider market context, noting that the
Overall, the Board believes that the share buyback activity undertaken in the period has been beneficial in reducing the volatility of our share rating and maintaining the discount at the narrowest end of the peer group. Your Board will continue to monitor the Company’s share rating and may deploy its powers to support it by issuing or buying back the Company’s shares where it believes that it is in shareholders’ long-term best interests to do so.
Tender offers
The Directors of the Company have the discretion to make semi-annual tender offers at the prevailing NAV less 2%, for up to 20% of the issued share capital in May and November of each year. The Board announced on
Despite a challenging period for discounts, it is pleasing that the Company’s share rating has been relatively stable versus the market and peer group and the Board believes that the buyback activity undertaken has been beneficial in reducing the volatility of the Company’s share rating and in shareholders’ interests. As the Company’s discount was trading at 6.1% on
The Board will continue to monitor the Company’s discount and may use the Company’s share buyback powers to ensure that the share price does not go to an excessive discount to the underlying NAV. The Board remains committed to supporting the share price to a narrow discount or premium to its NAV.
Board composition
I am delighted to welcome
As previously advised in last year’s Annual Report, it is my intention to step down from the Board in due course, subject to a suitable successor being identified. As at
Outlook
For years, European equities have been overshadowed by the US, but the start of 2025 saw a shift in this trend as European markets initially outperformed the US. However, more recently, concerns over developments in US trade policy have generated exceptional volatility, making it difficult to predict the economic impact for
Despite the challenges facing the region, our portfolio managers believe that
Investment Manager’s Report
Market review
The Company’s share price and underlying NAV were flat, with a 0.1% increase for both over the last six months to
Over the past six months, European equities have experienced a notable shift in sentiment. Initially, investor views towards the asset class were largely pessimistic, with many asset allocators turning to the US, especially post the presidential election. However, the ongoing rate-cutting cycle in
Despite this notable outperformance, the asset class remains under-owned. At the time of writing, for every
This step change in sentiment was supported further by European earnings surprising positively, which led to earnings revisions of European companies being among the strongest globally. The latter development was also helped by a large gap in market expectations. At the start of this year earnings for the STOXX 600 were expected to grow 8% in 2025, while US earnings were seen to increase 15% over the same period, the widest dispersion in 20 years.
In addition, the second half of the reporting period saw markets driven by a mix of narratives which ranged from hopes of a ceasefire in
Portfolio performance – contributors and detractors
The Company experienced negative contributions from
Within technology, our exposure to the European semiconductor industry detracted from performance mainly due to ongoing weak trading in traditional end markets. Continued weak demand in autos, industrials, smartphones and personal computers weighed on growth prospects for semiconductor companies. Additionally, investors showed concern around the sustainability of capital expenditure on artificial intelligence (AI) related technologies, thereby questioning the growth potential for semiconductor companies in the medium to long term. A position in
ASML
dragged on relative returns as the company significantly reduced its 2025 revenue guidance, driven by lower assumptions for extreme ultraviolet (EUV) tool shipments and a significant reduction in expected sales to
Within financials, banks delivered strong performance amid a shifting interest rate environment, benefiting from earnings resilience, improving returns and a measured rerating overcoming a volatile macro-economic backdrop. While we recognise the positive cycle underway, we remain underweight given the sector’s historical challenges in sustained value creation and leverage-driven volatility. In economies where we see high-quality players with greater return visibility and stronger fundamentals, we have selectively added to our portfolio. Our positions in
On the positive side, we have started to see evidence of a gradual recovery in the luxury sector, albeit stock selection remains key with near-term volatility likely to stay high. The structural appeal of the sector remains unchanged, driven by growing consumer demand, especially in markets like
Hermès has stood out, with its shares performing well due to its ability to maintain exclusivity and high demand for its iconic products, such as handbags and accessories. The brand’s focus on craftsmanship, limited product availability and pricing power have allowed it to continue growing even during challenging times. Additionally, Hermès has successfully navigated supply chain challenges and expanded its presence in key markets, further boosting investor confidence in the brand’s long-term appeal. While Chinese demand declined last year, it is expected to improve and the high-end US consumer market remains robust, with small improvements also across the rest of the developed world. Hermès, with its strong pricing power and conservative management, is well-positioned to continue to capitalise on these trends and deliver profitable growth for years to come.
Elsewhere, Adyen has performed well over the last six months due to strong growth in its payments processing business, driven by the increasing demand for seamless, digital payment solutions worldwide. The company has benefited from its ability to expand its customer base, particularly in the e-commerce sector, as more businesses move towards online transactions. Adyen’s platform, which offers a wide range of payment services with low fees and high efficiency, has attracted major global brands, enhancing its market position. Additionally, its ability to scale and integrate new technologies, such as AI and machine learning for fraud prevention, has helped boost investor confidence.
Outlook
We remain optimistic on European equities as we move forward. We see several building blocks that could lay the foundation for the recently seen outperformance of the asset class to extend. To start with
Additionally, we see the manufacturing sector beginning to bottom out, with end markets showing signs of recovery, which should drive growth across key industrial sectors. Stronger domestic earnings from European companies further bolster this optimistic outlook, as many firms continue to report solid results.
On the political front, the new US administration appears to have created a greater sense of urgency among European policymakers, leading to an understanding that now is the time to act to address some of Europe’s structural issues. Germany’s plan for increased infrastructure spending and the growing commitment from European countries to boost defence budgets highlight a more proactive approach, which bodes well for long-term growth. With the ongoing rate-cutting cycle providing additional support, these factors collectively point to a more favourable environment for European equities moving forward.
Finally, at the time of writing, uncertainty around the US tariffs remains high and we are likely to see soft-data, such as US consumer sentiment, continue to deteriorate while corporate reporting and outlook statements will likely point to a wider range of possible outcomes. All of which brings expectations for heightened volatility. However, given the Company’s focus on pricing power and high margins, we would expect many of our companies to be able to partially offset the effects of tariffs.
STEFAN GRIES AND
Ten largest investments
Together, the Company’s ten largest investments represented 50.6% of the Company’s portfolio as at
1
▶
Health Care company
Market value: £48,246,000
Share of investments: 7.1%
2
▲
Safran
(2024: 7th)
Industrials company
Market value: £40,917,000
Share of investments: 6.0%
Safran is a French multinational supplier of systems and equipment for aerospace, defence and security. The industry has emerged from a heavy investment period in new planes and engines and we see Safran as well placed to benefit from continued strength in its best-in-class after-market business, as well as strong execution in its LEAP engine program which should drive growth for the next decade. Additionally, the company is well-positioned to benefit from increasing defence budgets in
3
▶
RELX
(2024: 3rd)
Consumer Discretionary company
Market value: £40,073,000
Share of investments: 5.9%
RELX is a multinational information and analytics company which enjoys high barriers to entry in most of its divisions, including scientific publishing. The capital light business model allows for a high rate of cash flow conversion, with repeatable revenues built on subscription-based models. The company benefits from holding intellectual property and has made significant steps in monetising AI, already generating revenue from their AI tools leaving potential for further acceleration in growth in future years.
4
▼
ASML
(2024: 2nd)
Technology company
Market value: £35,398,000
Share of investments: 5.2%
ASML is a Dutch company which specialises in the supply of photolithography systems for the semiconductor industry. The company is at the forefront of technological change, investing in leading research and development to capture the structural growth opportunity coming from the production of microchip components. The company is run by an exceptional management team who aim to create long-term value whilst returning excess cash to shareholders.
5
▼
Hermès
(2024: 6th)
Consumer Discretionary company
Market value: £33,821,000
Share of investments: 4.9%
Hermès is a French luxury design house established in 1837. It specialises in leather goods, lifestyle accessories, home furnishings, perfumery, jewellery, watches and ready-to-wear textiles. Due to deliberate brand management and craftsmanship, this ultimate high-end brand remains supply constraint and enjoys strong earnings visibility, as some of its most iconic products are sold on allocation via waiting lists. Hermès is a largely family-owned business and has been run in a conservative fashion for generations with any strategic decisions taken with the longest of timeframes in mind. This business tends to prove resilient, even during economic downturns, as Hermès’ client base is typically less sensitive to weaker macro environments.
6
▲
Schneider Electric
(2024: 8th)
Industrials company
Market value: £31,606,000
Share of investments: 4.6%
Schneider Electric is a French multinational company specialising in digital automation and energy management across various industries globally. We see Schneider Electric as a beneficiary of structural investment spend for energy transition solutions. Demand for its products is driven by the three megatrends of energy efficiency, automation and digitisation. Additionally, we expect durable growth in Schneider Electric’s main end markets due to governmental programs supporting green initiatives globally. Schneider Electric is a well-managed company offering compounding growth at attractive returns on capital.
7
▲
Financials company
Market value: £29,655,000
Share of investments: 4.3%
8
▼
Ferrari
(2024: 5th)
Consumer Discretionary company
Market value: £29,408,000
Share of investments: 4.3%
Ferrari is an Italian luxury sports car manufacturer emphasising exclusivity, performance and quality globally, with a strong focus on innovation and delivering unique driving experiences to its clientele. Ferrari enjoys excellent earnings visibility with an order book extending well into 2026. Ferrari’s strategy of focusing on limited production volumes, selling just 14,000 cars each year, continues to create elevated levels of desirability, an unparalleled degree of pricing power and has demonstrably enhanced its earnings resilience over time.
9
▲
Partners Group
(2024: 14th)
Financials company
Market value: £29,251,000
Share of investments: 4.3%
Partners Group is a Swiss-based global private markets firm. The company specialises in private equity, although also offers private debt, private real estate and private infrastructure to clients. Their aim is to provide clients with solutions, providing them with a diverse portfolio of alternatives which suit their needs. With the funding environment easing, Partners Group is well set up to continue raising assets in a structurally growing alternatives segment. The business offers high and sector leading returns which should compound for many years to come.
10
▲
Adyen
(2024: 18th)
Industrials company
Market value: £27,232,000
Share of investments: 4.0%
Ayden is a leading payment technology company offering a global platform for businesses to accept and process multiple payment methods across online, mobile and point-of-sale channels. We expect Adyen to keep generating highly attractive organic growth rates, which should lead to operating leverage and improving margins owing to Adyen’s best-in-class technology offering.
All percentages reflect the value of the holding as a percentage of total investments.
Arrows indicate the change in relative ranking of the position in the portfolio compared to its ranking as at
Percentages in brackets represent the value of the holding as at
Portfolio analysis as at
% FTSE
Central World
Eastern % % Europe
% % % % % % % % % % Europe Portfolio Portfolio ex UK
France Switzerland Ireland Germany Sweden Netherlands Denmark Belgium Spain Italy & Other 28.02.25 31.08.24 28.02.25
Basic Materials – – – – – 2.9 – – – – 3.8 6.7 6.9 4.0
Consumer 9.6 4.0 – – – – – – – 4.3 5.9 23.8 23.0 11.9
Discretionary
Consumer Staples – – – – – – – – – – – – 0.9 6.7
Energy – – – – – – – – – – – – – 3.3
Financials – 4.3 4.3 – – – – 2.2 – – – 10.8 8.9 21.6
Health Care – 4.8 – – – – 9.5 – – – – 14.3 15.4 15.4
Industrials 10.6 4.1 1.6 1.9 3.7 4.0 – – – – 1.9 27.8 26.5 19.2
Real Estate – – – – 2.1 – – – – – – 2.1 – 1.0
Technology – – – 3.2 – 11.3 – – – – – 14.5 18.4 9.8
Telecommunications – – – – – – – – – – – – – 3.3
Utilities – – – – – – – – – – – – – 3.8
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
% Portfolio 20.2 17.2 5.9 5.1 5.8 18.2 9.5 2.2 – 4.3 9.7 100.0 – –
28.02.25
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
% Portfolio 20.8 17.9 5.9 2.1 5.3 20.5 10.5 1.9 – 4.4 10.7 – 100.0 –
31.08.24
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
FTSE World Europe
ex UK 28.02.25 19.5 19.3 0.6 18.6 6.6 10.3 5.1 1.6 5.7 5.8 6.9 – – 100.0
====== ====+== ======= ======= ======= ======= ======= ======= ======= ======= ======= ======= ======= =======
Percentages in the table above are a % of total investments.
Investments as at
Market
Country value % of
of operation £’000 investments
Industrials
Safran France 40,917 6.0
Schneider Electric France 31,606 4.6
Adyen Netherlands 27,232 4.0
Belimo Switzerland 21,009 3.1
Atlas Copco Sweden 16,032 2.3
Rational Germany 13,176 1.9
Kone Finland 12,899 1.9
Kingspan Ireland 10,730 1.6
Epiroc Sweden 9,889 1.4
VAT Group Switzerland 6,785 1.0
--------------- ---------------
190,275 27.8
========= =========
Consumer Discretionary
RELX United Kingdom 40,073 5.9
Hermès France 33,821 4.9
Ferrari Italy 29,408 4.3
Compagnie Financière Richemont Switzerland 27,218 4.0
LVMH France 22,448 3.3
L’Oréal France 9,890 1.4
--------------- ---------------
162,858 23.8
========= =========
Technology
ASML Netherlands 35,398 5.2
Nemetschek Germany 21,864 3.2
ASM International Netherlands 21,185 3.1
BE Semiconductor Netherlands 20,889 3.0
--------------- ---------------
99,336 14.5
========= =========
Health Care
Novo Nordisk Denmark 48,246 7.1
Lonza Group Switzerland 22,899 3.4
ChemoMetec Denmark 16,519 2.4
Straumann Switzerland 9,863 1.4
--------------- ---------------
97,527 14.3
========= =========
Financials
Allied Irish Banks Ireland 29,655 4.3
Partners Group Switzerland 29,251 4.3
KBC Groep Belgium 14,902 2.2
Sberbank* Russia 1 –
--------------- ---------------
73,809 10.8
========= =========
Basic Materials
Linde United States 26,014 3.8
IMCD Netherlands 19,702 2.9
--------------- ---------------
45,716 6.7
========= =========
Real Estate
Hemnet Group Sweden 14,016 2.1
--------------- ---------------
14,016 2.1
========= =========
Energy
Lukoil* Russia – –
--------------- ---------------
Total investments 683,537 100.0
========= =========
* The investments in Sberbank and Lukoil have been marked down to a nominal value of £0.01 as the secondary listings of depositary receipts of Russian companies have been suspended from trading.
All investments are in ordinary shares unless otherwise stated. The total number of investments held at
Industry classifications in the table above are based on the Industrial Classification Benchmark standard for categorisation of companies by industry and sector.
As at
Interim Management Report and Responsibility Statement
The Chairman’s Statement and the Investment Manager’s Report above give details of the important events which have occurred during the period and their impact on the financial statements.
Principal risks and uncertainties
The principal risks faced by the Company can be divided into various areas as follows:
· Counterparty;
· Investment performance;
· Legal and regulatory compliance;
· Market;
· Operational;
· Financial; and
· Marketing.
The Board reported on the principal risks and uncertainties faced by the Company in the Annual Report and Financial Statements for the year ended
In the view of the Board, there have not been any changes to the fundamental nature of the principal risks and uncertainties since the previous report and these are equally applicable to the remaining six months of the financial year as they were to the six months under review.
Going concern
The Directors, having considered the nature and liquidity of the portfolio, the Company’s investment objective and the Company’s projected income and expenditure, are satisfied that the Company has adequate resources to continue in operational existence for the foreseeable future and is financially sound. The Board is mindful of the continuing uncertainty surrounding the current environment of heightened geopolitical risk given the war in
The Company has a portfolio of investments which are predominantly readily realisable and is able to meet all of its liabilities from its assets and income generated from these assets. Accounting revenue and expense forecasts are maintained and reported to the Board regularly and it is expected that the Company will be able to meet all its obligations. The Investment Manager generally aims to be fully invested and it is anticipated that gearing will not exceed 15% of net asset value at the time of drawdown of the relevant borrowings. Borrowings under the overdraft facility shall at no time exceed £75 million or 15% of the Company’s net asset value (whichever is lower) and this covenant was complied with during the period. At
Related party disclosure and transactions with the Manager
Directors’ responsibility statement
The Disclosure Guidance and Transparency Rules of the
The Directors confirm to the best of their knowledge that:
·
the condensed set of financial statements contained within the Half Yearly Financial Report has been prepared in accordance with applicable
· the Interim Management Report, together with the Chairman’s Statement and Investment Manager’s Report, include a fair review of the information required by 4.2.7R and 4.2.8R of the FCA’s Disclosure Guidance and Transparency Rules.
This Half Yearly Financial Report has not been audited or reviewed by the Company’s auditors.
The Half Yearly Financial Report was approved by the Board on
FOR AND ON BEHALF OF THE BOARD
Income Statement for the six months ended
Six months ended Six months ended Year ended
28 February 2025 29 February 2024 31 August 2024
(unaudited) (unaudited) (audited)
Revenue Capital Total Revenue Capital Total Revenue Capital Total
Notes £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
Gains on
investments
held at fair – 654 654 – 106,000 106,000 – 88,991 88,991
value through
profit or loss
Gains on
foreign – 865 865 – 423 423 – 1,075 1,075
exchange
Income from
investments
held at fair 3 1,121 – 1,121 1,252 – 1,252 11,969 31 12,000
value through
profit or loss
--------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- ---------------
Total income 1,121 1,519 2,640 1,252 106,423 107,675 11,969 90,097 102,066
========= ========= ========= ========= ========= ========= ========= ========= =========
Expenses
Investment 4 (483) (1,932) (2,415) (470) (1,879) (2,349) (994) (3,976) (4,970)
management fee
Other operating 5 (391) (6) (397) (406) (8) (414) (2,420) (9) (2,429)
expenses
--------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- ---------------
Total operating (874) (1,938) (2,812) (876) (1,887) (2,763) (3,414) (3,985) (7,399)
expenses
========= ========= ========= ========= ========= ========= ========= ========= =========
Net profit/
(loss) on
ordinary
activities 247 (419) (172) 376 104,536 104,912 8,555 86,112 94,667
before finance
costs and
taxation
Finance costs (225) (902) (1,127) (184) (736) (920) (467) (1,870) (2,337)
--------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- ---------------
Net profit/
(loss) on
ordinary 22 (1,321) (1,299) 192 103,800 103,992 8,088 84,242 92,330
activities
before taxation
Taxation (65) – (65) (129) – (129) (709) (11) (720)
charges
--------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- ---------------
Net
(loss)/profit
on ordinary 7 (43) (1,321) (1,364) 63 103,800 103,863 7,379 84,231 91,610
activities
after taxation
========= ========= ========= ========= ========= ========= ========= ========= =========
(Loss)/earnings
per ordinary 7 (0.04) (1.35) (1.39) 0.06 102.96 103.02 7.35 83.88 91.23
share (pence)
========= ========= ========= ========= ========= ========= ========= ========= =========
The total columns of this statement represent the Company’s profit and loss account. The supplementary revenue and capital accounts are both prepared under guidance published by the
The net profit on ordinary activities for the period disclosed above represents the Company’s total comprehensive income.
Statement of Changes in Equity for the six months ended
Called Share Capital
up share premium redemption Special Capital Revenue
capital account reserve reserve reserves reserve Total
Note £’000 £’000 £’000 £’000 £’000 £’000 £’000
For the six
months ended
28 February
2025
(unaudited)
At 31 August 117 85,325 130 58,331 484,862 11,535 640,300
2024
Total
comprehensive
loss:
Net loss for – – – – (1,321) (43) (1,364)
the period
Transactions
with owners,
recorded
directly to
equity:
Ordinary
shares – – – (13,133) – – (13,133)
repurchased
into treasury
Share
repurchase – – – (76) – – (76)
costs
Dividends 6 – – – – – (5,153) (5,153)
paid1
--------------- --------------- --------------- --------------- --------------- --------------- ---------------
At 28 117 85,325 130 45,122 483,541 6,339 620,574
February 2025
========= ========= ========= ========= ========= ========= =========
For the six
months ended
29 February
2024
(unaudited)
At 31 August 117 85,325 130 68,558 400,631 10,949 565,710
2023
Total
comprehensive
income:
Net profit
for the – – – – 103,800 63 103,863
period
Transactions
with owners,
recorded
directly to
equity:
Ordinary
shares – – – (1,904) – – (1,904)
repurchased
into treasury
Share
repurchase – – – (10) – – (10)
costs
Dividends 6 – – – – – (5,040) (5,040)
paid2
--------------- --------------- --------------- --------------- --------------- --------------- ---------------
At 29 117 85,325 130 66,644 504,431 5,972 662,619
February 2024
========= ========= ========= ========= ========= ========= =========
For the year
ended 31
August 2024
(audited)
At 31 August 117 85,325 130 68,558 400,631 10,949 565,710
2023
Total
comprehensive
income:
Net profit – – – – 84,231 7,379 91,610
for the year
Transactions
with owners,
recorded
directly to
equity:
Ordinary
shares – – – (10,171) – – (10,171)
repurchased
into treasury
Share
repurchase – – – (56) – – (56)
costs
Dividends 6 – – – – – (6,793) (6,793)
paid3
--------------- --------------- --------------- --------------- --------------- --------------- ---------------
At 31 August 117 85,325 130 58,331 484,862 11,535 640,300
2024
========= ========= ========= ========= ========= ========= =========
1
Final dividend paid in respect of the year ended
2
Final dividend paid in respect of the year ended
3
Interim dividend paid in respect of the year ended
For information on the Company’s distributable reserves, please refer to note 10 below.
Balance Sheet as at
28 February 29 February 31 August
2025 2024 2024
(unaudited) (unaudited) (audited)
Notes £’000 £’000 £’000
Non current assets
Investments held at fair
value through profit or 11 683,537 711,970 691,831
loss
Current assets
Current tax asset 3,071 2,446 3,100
Debtors 66 7,017 748
Cash and cash equivalents – – 8
– cash at bank
--------------- --------------- ---------------
Total current assets 3,137 9,463 3,856
========= ========= =========
Current liabilities
Cash and cash equivalents (59,024) (55,509) (50,150)
– bank overdraft
Other creditors (7,076) (3,305) (5,237)
--------------- --------------- ---------------
Total current liabilities (66,100) (58,814) (55,387)
--------------- --------------- ---------------
Net current liabilities (62,963) (49,351) (51,531)
========= ========= =========
Net assets 620,574 662,619 640,300
========= ========= =========
Equity
Called up share capital 9 117 117 117
Share premium account 85,325 85,325 85,325
Capital redemption reserve 130 130 130
Special reserve 45,122 66,644 58,331
Capital reserves 483,541 504,431 484,862
Revenue reserve 6,339 5,972 11,535
--------------- --------------- ---------------
Total shareholders’ funds 620,574 662,619 640,300
========= ========= =========
Net asset value per 7 639.30 658.25 644.60
ordinary share (pence)
========= ========= =========
Statement of Cash Flows for the six months ended
Six months Six months Year
ended ended ended
28 February 29 February 31 August
2025 2024 2024
(unaudited) (unaudited) (audited)
£’000 £’000 £’000
Operating activities
Net (loss)/profit on ordinary (1,299) 103,992 92,330
activities before taxation1
Add back finance costs 1,127 920 2,337
Gains on investments held at
fair value through profit or (654) (106,000) (88,991)
loss
Gains on foreign exchange (865) (423) (1,075)
Sale of investments held at fair 116,457 85,303 134,209
value through profit or loss
Purchase of investments held at
fair value through profit or (107,358) (103,559) (142,473)
loss
Net amount for capital special – – (20)
dividends received
Decrease/(increase) in debtors 200 125 (21)
Increase/(decrease) in other 2,170 (967) 630
creditors
Taxation on investment income (148) (608) (2,291)
Interest paid (1,127) (920) (2,337)
Refund of withholding tax 112 479 821
reclaims
--------------- --------------- ---------------
Net cash generated from/(used 8,615 (21,658) (6,881)
in) operating activities
========= ========= =========
Financing activities
Ordinary shares repurchased into (13,209) (1,617) (9,926)
treasury
Dividends paid (5,153) (5,040) (6,793)
--------------- --------------- ---------------
Net cash used in financing (18,362) (6,657) (16,719)
activities
========= ========= =========
Decrease in cash and cash (9,747) (28,315) (23,600)
equivalents
Effect of foreign exchange rate 865 423 1,075
changes
Cash and cash equivalents at the (50,142) (27,617) (27,617)
start of the period/year
--------------- --------------- ---------------
Cash and cash equivalents at the (59,024) (55,509) (50,142)
end of the period/year
========= ========= =========
Comprised of:
Cash at bank – – 8
Bank overdraft (59,024) (55,509) (50,150)
--------------- --------------- ---------------
(59,024) (55,509) (50,142)
========= ========= =========
1
Dividends and interest received in cash during the period amounted to £1,173,000 and £1,000 (six months ended
Notes to the Financial Statements for the six months ended
1. Principal activity
The principal activity of the Company is that of an investment trust company within the meaning of Section 1158 of the Corporation Tax Act 2010.
2. Basis of preparation
The financial statements of the Company are prepared on a going concern basis in accordance with Financial Reporting Standard 104 Interim Financial Reporting (FRS 104) applicable in the
The accounting policies and estimation techniques applied for the condensed set of financial statements are as set out in the Company’s Annual Report and Financial Statements for the year ended
3. Income
Six months Six months Year
ended ended ended
28 February 29 February 31 August
2025 2024 2024
(unaudited) (unaudited) (audited)
£’000 £’000 £’000
Investment income:
UK dividends – – 807
Overseas dividends 1,120 1,252 10,687
Overseas special dividends – – 475
--------------- --------------- ---------------
Total investment income 1,120 1,252 11,969
========= ========= =========
Other income:
Interest received 1 – –
--------------- --------------- ---------------
Total other income 1 – –
========= ========= =========
Total 1,121 1,252 11,969
========= ========= =========
Dividends and interest received in cash during the period amounted to £1,173,000 and £1,000 respectively (six months ended
No special dividends have been recognised in capital during the period (six months ended
4. Investment management fee
Six months ended Six months ended Year ended
28 February 2025 29 February 2024 31 August 2024
(unaudited) (unaudited) (audited)
Revenue Capital Total Revenue Capital Total Revenue Capital Total
£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
Investment
management 483 1,932 2,415 470 1,879 2,349 994 3,976 4,970
fee
--------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- ---------------
Total 483 1,932 2,415 470 1,879 2,349 994 3,976 4,970
========= ========= ========= ========= ========= ========= ========= ========= =========
The investment management fee is levied quarterly based on a tiered basis: 0.85% per annum of the month-end net asset value up to £350 million and 0.75% per annum of the month-end net asset value above £350 million.
The investment management fee is allocated 20% to the revenue account and 80% to the capital account of the Income Statement. There is no additional fee for company secretarial and administration services.
5. Other operating expenses
Six months Six months Year
ended ended ended
28 February 29 February 31 August
2025 2024 2024
(unaudited) (unaudited) (audited)
£’000 £’000 £’000
Allocated to revenue:
Broker fees 24 24 48
Custody fees 35 27 65
Depositary fees 34 32 70
Audit fees1 31 26 64
Legal fees 13 13 26
Registrar’s fees 48 45 94
Directors’ emoluments 94 89 186
Marketing fees 50 77 157
Postage and printing fees 30 22 46
AIC fees 11 11 22
Professional fees 5 11 37
Stock exchange listing fees 17 12 30
Write back of prior year expense (39) (12) (12)
accruals2
Other administration costs 38 29 30
Provision for doubtful debts3 – – 1,557
--------------- --------------- ---------------
Total revenue expenses 391 406 2,420
========= ========= =========
Allocated to capital:
Custody transaction costs4 6 8 9
--------------- --------------- ---------------
Total 397 414 2,429
========= ========= =========
1
No non-audit services are provided by the Company’s auditors (six months ended
2
Relates to legal fees, professional fees and other administration costs written back in the period (six months ended
3
Provision for doubtful debts relate to dividend income from Sberbank which has not been received due to measures imposed by the Russian authorities in response to the sanctions that have been imposed on
4
For the six month period ended
The direct transaction costs incurred on the acquisition of investments amounted to £90,000 for the six months ended
6. Dividends
The Directors have declared an interim dividend of 1.75p per share for the period ended
In accordance with FRS 102, Section 32 Events After the End of the Reporting Period, the interim dividend payable on the ordinary shares has not been included as a liability in the financial statements, as interim dividends are only recognised when they have been paid.
7. Earnings and net asset value per ordinary share
Revenue (loss)/earnings, capital (loss)/earnings and net asset value per ordinary share are shown below and have been calculated using the following:
Six months Six months Year
ended ended ended
28 February 29 February 31 August
2025 2024 2024
(unaudited) (unaudited) (audited)
Net revenue (loss)/profit
attributable to ordinary (43) 63 7,379
shareholders (£’000)
Net capital (loss)/profit
attributable to ordinary (1,321) 103,800 84,231
shareholders (£’000)
--------------- --------------- ---------------
Total (loss)/profit attributable (1,364) 103,863 91,610
to ordinary shareholders (£’000)
========= ========= =========
Total shareholders’ funds 620,574 662,619 640,300
(£’000)
========= ========= =========
Earnings per share
The weighted average number of
ordinary shares in issue during
the period on which the earnings 98,146,439 100,816,318 100,411,682
per ordinary share was
calculated was:
The actual number of ordinary
shares in issue at the end of
the period on which the net 97,070,633 100,663,851 99,332,161
asset value per ordinary share
was calculated was:
Calculated on weighted average
number of ordinary shares:
Revenue (loss)/earnings per
share (pence) - basic and (0.04) 0.06 7.35
diluted
Capital (loss)/earnings per
share (pence) - basic and (1.35) 102.96 83.88
diluted
--------------- --------------- ---------------
Total (loss)/earnings per share (1.39) 103.02 91.23
(pence) - basic and diluted
========= ========= =========
As at As at As at
28 February 29 February 31 August
2025 2024 2024
(unaudited) (unaudited) (audited)
Net asset value per share (pence) 639.30 658.25 644.60
Ordinary share price (pence) 596.00 629.00 601.00
========= ========= =========
There were no dilutive securities at
8. Reconciliation of liabilities arising from financing activities
Six months Six months Year
ended ended ended
28 February 29 February 31 August
2025 2024 2024
(unaudited) (unaudited) (audited)
£’000 £’000 £’000
Bank overdraft at beginning of 50,150 27,617 27,617
the period/year
Cash flows:
Movement in overdraft 9,595 28,256 23,229
Non cash flows:
Effects of foreign exchange gain (721) (364) (696)
--------------- --------------- ---------------
Bank overdraft at end of the 59,024 55,509 50,150
period/year
========= ========= =========
9. Called up share capital
Ordinary Treasury Total Nominal
shares shares shares value
number number number £’000
Allotted, called
up and fully
paid share
capital
comprised:
Ordinary shares
of 0.1 pence
each:
At 31 August 101,000,161 16,928,777 117,928,938 117
2023 (audited)
Ordinary shares
repurchased into (336,310) 336,310 – –
treasury
--------------- --------------- --------------- ---------------
At 29 February 100,663,851 17,265,087 117,928,938 117
2024 (unaudited)
Ordinary shares
repurchased into (1,331,690) 1,331,690 – –
treasury
--------------- --------------- --------------- ---------------
At 31 August 99,332,161 18,596,777 117,928,938 117
2024 (audited)
Ordinary shares
repurchased into (2,261,528) 2,261,528 – –
treasury
--------------- --------------- --------------- ---------------
At 28 February 97,070,633 20,858,305 117,928,938 117
2025 (unaudited)
========= ========= ========= =========
During the six months ended
Since
10. Reserves
The share premium account and capital redemption reserve of £85,325,000 and £130,000 (
11. Financial risks and valuation of financial instruments
The Company’s investment activities expose it to the various types of risk which are associated with the financial instruments and markets in which it invests. The risks are substantially consistent with those disclosed in the previous annual financial statements, with the exception of those outlined below.
Market risk arising from price risk
Price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices (other than those arising from interest rate risk or currency risk), whether those changes are caused by factors specific to the individual financial instrument or its issuer, or factors affecting similar financial instruments traded in the market. Local, regional or global events such as war, acts of terrorism, the spread of infectious illness or other public health issues, recessions, climate change or other events could have a significant impact on the Company and the market price of its investments and could result in increased premiums or discounts to the Company’s net asset value.
Valuation of financial instruments
Financial assets and financial liabilities are either carried in the Balance Sheet at their fair value (investments) or at an amount which is a reasonable approximation of fair value (due from brokers, dividends and interest receivable, due to brokers, accruals, cash and cash equivalents and overdrafts). Section 34 of FRS 102 requires the Company to classify fair value measurements using a fair value hierarchy that reflects the significance of inputs used in making the measurements. The valuation techniques used by the Company are explained in the accounting policies note on page 91 of the Annual Report and Financial Statements for the year ended
Categorisation within the hierarchy has been determined on the basis of the lowest level input that is significant to the fair value measurement of the relevant asset.
The fair value hierarchy has the following levels:
Level 1 – Quoted market price for identical instruments in active markets
A financial instrument is regarded as quoted in an active market if quoted prices are readily available from an exchange, dealer, broker, industry group, pricing service or regulatory agency and those prices represent actual and regularly occurring market transactions on an arm’s length basis. The Company does not adjust the quoted price for these instruments.
Level 2 – Valuation techniques using observable inputs
This category includes instruments valued using quoted prices for similar instruments in markets that are considered less than active, or other valuation techniques where all significant inputs are directly or indirectly observable from market data.
Level 3 – Valuation techniques using significant unobservable inputs
This category includes all instruments where the valuation technique includes inputs not based on market data and these inputs could have a significant impact on the instrument’s valuation.
This category also includes instruments that are valued based on quoted prices for similar instruments where significant entity determined adjustments or assumptions are required to reflect differences between the instruments and instruments for which there is no active market. The Investment Manager considers observable data to be that market data that is readily available, regularly distributed or updated, reliable and verifiable, not proprietary and provided by independent sources that are actively involved in the relevant market.
The level in the fair value hierarchy within which the fair value measurement is categorised in its entirety is determined on the basis of the lowest level input that is significant to the fair value measurement. If a fair value measurement uses observable inputs that require significant adjustment based on unobservable inputs, that measurement is a Level 3 measurement.
Assessing the significance of a particular input to the fair value measurement in its entirety requires judgement, considering factors specific to the asset or liability, including an assessment of the relevant risks including but not limited to credit risk, market risk, liquidity risk, business risk and sustainability risk. The determination of what constitutes ‘observable’ inputs requires significant judgement by the Investment Manager and these risks are adequately captured in the assumptions and inputs used in the measurement of Level 3 assets or liabilities.
Fair values of financial assets and financial liabilities
The table below is the analysis of the Company’s financial instruments measured at fair value at the balance sheet date.
Level 1 Level 2 Level 3 Total
Financial assets at fair value through £’000 £’000 £’000 £’000
profit or loss
Equity investments at 28 February 2025 683,536 – 1 683,537
(unaudited)
Equity investments at 29 February 2024 711,969 – 1 711,970
(unaudited)
Equity investments at 31 August 2024 691,830 – 1 691,831
(audited)
========= ========= ========= =========
The Company held two Level 3 securities as at
A reconciliation of fair value measurement in Level 3 is set out below.
Level 3 financial assets at fair value through profit or loss
Six months Six months Year
ended ended ended
28 February 29 February 31 August
2025 2024 2024
(unaudited) (unaudited) (audited)
£’000 £’000 £’000
Opening fair value 1 942 942
Loss on investments included in – (939) (941)
the Income Statement
--------------- --------------- ---------------
Closing balance 1 1 1
========= ========= =========
As at
For exchange listed equity investments, the quoted price is the bid price. Substantially all investments are valued based on unadjusted quoted market prices. Where such quoted prices are readily available in an active market, such prices are not required to be assessed or adjusted for any business risks, including climate change risk, in accordance with the fair value related requirements of the Company’s financial reporting framework.
12. Related party disclosure
The Board now consists of six non-executive Directors, all of whom are considered to be independent by the Board. None of the Directors has a service contract with the Company. The Chairman receives an annual fee of £49,000, the Chair of the
At the period end, the members of the Board held ordinary shares in the Company as set out below:
28 February 29 February 31 August
2025 2024 2024
Eric Sanderson 4,000 4,000 4,000
Peter Baxter 11,000 11,000 11,000
Paola Subacchi 11,700 11,109 11,700
Ian Sayers 4,000 4,000 4,000
Sapna Shah 4,000 – –
========= ========= =========
Since the period end and up to the date of this report there have been no changes in Directors’ holdings.
The transactions with the Investment Manager and AIFM are stated in note 13 below.
Significant holdings
The following investors are:
a.
funds managed by the
b.
investors (other than those listed in (a) above) who held more than 20% of the voting shares in issue in the Company and are, as a result, considered to be related parties to the Company (
Total % of shares
held by Number of Significant
Significant Investors
Total % of shares Investors who are who are not
not affiliates of
held by Related affiliates of BlackRock Group or
BlackRock Funds BlackRock Group or BlackRock, Inc.
BlackRock, Inc.
As at 28 February 1.2 n/a n/a
2025
As at 31 August 2024 1.3 n/a n/a
As at 29 February 1.3 n/a n/a
2024
========= ========= =========
13. Transactions with the Investment Manager and AIFM
The investment management fee is levied quarterly based on a tiered basis: 0.85% per annum of the month-end net asset value up to £350 million and 0.75% per annum of the month-end net asset value above £350 million. The investment management fee due for the six months ended
In addition to the above services, BIM (
During the year, the Manager pays the amounts due to the Directors. These fees are then reimbursed by the Company for the amounts paid on its behalf. As at
The ultimate holding company of the Manager and the Investment Manager is BlackRock, Inc., a company incorporated in
14. Contingent liabilities
There were no contingent liabilities at
15. Publication of non statutory accounts
The financial information contained in this half yearly report does not constitute statutory accounts as defined in Section 435 of the Companies Act 2006. The financial information for the six months ended
The information for the year ended
16. Annual results
The Board expects to announce the annual results for the year ending
EC2N 2DL
For further information please contact:
Sarah Beynsberger, Director, Closed End Funds,
Tel:
020 7743 3000
Tel:
020 7743 3000
Press enquires:
Tel:
020 7294 3620
E-mail:
BlackRockInvestmentTrusts@lansons.com
or
EdH@lansons.com
END
The Half Yearly Financial Report will also be available on the BlackRock website at
www.blackrock.com/uk/brge
. Neither the contents of the Manager’s website nor the contents of any website accessible from hyperlinks on the Manager’s website (or any other website) is incorporated into, or forms part of, this announcement.
Release
