BlackRock Income and Growth Investment Trust Plc - Half-year Report
LEI: 5493003YBY59H9EJLJ16
HALF YEARLY FINANCIAL REPORT FOR THE SIX MONTHS ENDED
Performance record
As at As at
30 April 31 October
2025
2024
Net assets (£’000)1 43,022 43,760
Net asset value per ordinary share (pence) 222.51 222.22
Ordinary share price (mid-market) (pence) 198.00 193.50
Discount to net asset value2 11.0% 12.9%
FTSE All-Share Index 10334.73 9785.37
========= =========
For the six For the
months ended year ended
30 April 2025 31 October 2024
Performance (with dividends reinvested)
Net asset value per share2 2.2% 18.1%
Ordinary share price2 4.7% 13.2%
FTSE All-Share Index 5.6% 16.3%
--------------- ---------------
Performance since 1 April 20123 (with dividends
reinvested)
Net asset value per share2 142.9% 137.6%
Ordinary share price2 141.2% 130.3%
FTSE All-Share Index 145.4% 132.3%
========= =========
For the six For the six
months ended months ended Change
30 April 2025 30 April 2024 %
Revenue
Net profit on ordinary
activities after taxation 734 806 -8.9
(£’000)
Revenue earnings per ordinary 3.76 3.94 -4.6
share (pence)4
--------------- --------------- ---------------
Dividends (pence)
Interim 2.70 2.70 –
========= ========= =========
1 The change in net assets reflects portfolio movements, the purchase of the Company’s own shares and dividends paid.
2 Alternative Performance Measures, see Glossary in the Half Yearly Financial Report.
3
Since BlackRock’s appointment as Investment Manager on
4 Further details are given in the Glossary in the Half Yearly Financial Report.
Chairman’s statement
Overview
The six-month period under review was marked by both macroeconomic upheavals and geopolitical tensions, in particular the
Equity market investors sought alternative assets such as gold and money market funds, reducing exposure to US equities and bonds in favour of
Another geopolitical theme during the period has been a renewed commitment by European countries,
Performance
The Company’s net asset value (NAV) per share returned 2.2%, compared with the Benchmark Index, the FTSE All-Share Index (total return), which returned 5.6%. The Company’s share price returned 4.7% as the discount narrowed from 12.9% at the start of the period to 11.0% at
Subsequent to the period end and as at
Further information on the significant components of overall performance and the changes to portfolio composition are set out in the Investment Manager’s report below.
Revenue profit and dividends
Revenue earnings per share for the period was
Share capital
Mindful of the importance to investors that that the Company’s share price should not trade at an excessive discount to NAV the Company has continued to use its powers to buy back shares. We bought back 357,869 shares during the period for a total consideration of £706,000, albeit the discount proved stubborn, having traded at an average level of 12.2% throughout and ending the period at 11.0%. Following the end of the period, since when buybacks have continued, at the close of business on
Fees and charges
The Board is mindful of the need to ensure that shareholders receive good value from the Company and regularly reviews its costs and charges. The Company has previously agreed that the Investment Manager will rebate a proportion of the investment management fee charged to the Company in the event the Company’s ongoing charges exceed 1.15% per annum of average daily net assets, effectively capping ongoing charges at this level. Further information is set out in note 4 and note 12 below.
Gearing
The Company operates a flexible gearing policy which depends on prevailing conditions and the outlook for the market. Gearing is subject to a maximum level of 20% of net assets at the time of investment. As at
Board composition
At the date of this report the Board consists of three independent Non-executive Directors, with two of the current Directors having been appointed since 2019. The Board has a succession plan in place and will continue to appraise regularly its composition to ensure that a suitable balance of skills, knowledge, experience, independence and diversity is achieved to enable the Board to discharge its duties effectively.
As I mentioned in last year’s annual financial report, following the retirement of
Shareholder communication
The Board appreciates how important access to regular information is to our shareholders. To supplement our Company website, we now offer shareholders the ability to sign up to the Trust Matters newsletter which includes information on the Company as well as news, views and insights. Further information on how to sign up is included on the inside cover of the Half Yearly Financial Report.
Outlook
The
The
As you will read in their report which follows (below), against this backdrop our portfolio managers are cautiously optimistic. They believe our investment universe continues to offer very attractive value, both in absolute terms and relative to other developed markets and have great conviction in both the resilience and growth prospects of their portfolio. As they have done for many years, they execute a consistent investment philosophy and process, focusing on identifying high-quality, well-capitalised, cash generative companies that can compound returns over time. The Board therefore believes the Company continues to provide an attractive combination of capital protection, long-term growth and income for its shareholders.
Chairman
Investment Manager’s report
Performance
For the six months since
Investment approach
In assembling the Company’s portfolio, we adopt a concentrated investment approach to ensure that our best ideas contribute significantly to returns. We believe that it is the role of the portfolio overall to generate an attractive and growing yield alongside capital growth rather than every individual company within the portfolio. This gives the Company increased flexibility to invest where returns are most attractive. Our approach results in a portfolio which differs substantially from the index and in any individual year the returns will vary, sometimes significantly from those of the index. Our objective is to achieve returns greater than the index through time. The foundation of the portfolio, approximately 70%, is in ‘income generators’ that we believe will sustain strong cash generation and pay an attractive and growing dividend whilst aiming to deliver a double-digit total return. Additionally, we look to identify and invest 20% of the portfolio in ‘growth’ companies that have significant barriers to entry and scalable business models that enable them to grow consistently. We also look for turnaround companies, accounting for up to 10% of portfolio value, which represent those companies that are out of favour with the market, facing temporary challenges yet offer significant recovery potential.
Market review
The
The prospect of fewer-than-expected rate cuts lifted the Banks sector but depressed rate-sensitive sectors like housebuilders and real estate companies, whilst the rise in employers’
In 2025, the
Over the six-month period, the FTSE All-Share Index rose by 5.6%, outperforming global equity markets. Performance was driven by Financials due to higher-for-longer interest rate expectations and Industrials as Aerospace and Defence rallied when major European nations, including
Contributors to and detractors from performance
The underweight positioning in the Aerospace and Defence sector was a significant detractor from relative performance following significant upgrades at
Rolls-Royce Holdings
and a growing excitement in defence names given the change in German,
Tate & Lyle was another detractor from relative performance; the company issued a profit warning in mid-February, citing a weak consumer demand backdrop. Although a relatively small cut to earnings, the lack of visibility and its recent large acquisition is worrying investors, unsure of its longer-term growth algorithm. We believe the move towards a higher growth speciality business is the correct one, and will result in significant capital appreciation over time, but recognise the journey is non-linear. WH Smith shares fell following the announced sale of its high street business which is dilutive to group earnings. Strategically this leaves the business focused on its faster growing, and more cash generative, global travel business and therefore, we believe this is a sensible decision for the long term.
Travis Perkins
shares fell during the period on the back of weaker-than-expected guidance for 2025, and the CEO stepping
down due to ill health. The shares have also been caught up in the broader market rotation away from
3i Group was amongst the strongest contributors to performance during the period as continued positive trading from its largest asset, Action, buoyed investor expectations. The strong like-for-like growth and space rollout continues to offer a highly attractive return despite the significant rise in the shares over the past three years.
The portfolio benefited from its holding in
Standard Chartered
which continued its strong performance into 2025. Stronger than expected results and cash distributions continued to drive the earnings growth and total return respectively. Similarly, within banks,
Lloyds Banking Group (Lloyds)
had a strong first quarter with the shares rising circa 30% as the potential for sizable cash returns became more visible. Also, the concerns on the size of the potential fines from the motor finance investigation, which had previously impacted the shares relative to other
Admiral Group (Admiral)
was another top contributor for the period. The shares had struggled in recent years given high
inflation and the rising cost of servicing claims making the broader market a tricky place to navigate. The Government also announced a cap on insurance premiums in
Transactions
During the period, we purchased
BAE Systems
,
We added to Lloyds Banking Group to reflect our view that the shares had been overly punished on fears relating to the motor finance commission liability and that the fundamentals of the bank remain attractive.
We have sold our position in
Hammerson
. This reduction reflects a portfolio construction move to reduce some interest rate sensitivity while allowing us to reinvest elsewhere, most notably in the central
The Company sold its position in
Fuller Smith & Turner
, the pub company, following the budget as we expect cost growth to surprise negatively given the rise in
SGS
shares fell on the announcement of potential M&A with its peer, Bureau Veritas. This would be a very significant
transaction, creating the largest Testing and Inspection business globally. We subsequently sold the position given the investment thesis for SGS was predicated on the self-help potential on offer rather than a large deal and complex integration. Against our purchases in the defence space, we trimmed our exposures to
Gearing
Historically, we have managed the Company with a modest and consistent level of gearing, typically between 5-8% to enhance income generation and capital growth. However, as market volatility has picked up, we have been more active over the last 2 years, varying both the level of gearing and using a broader range (0-10%) depending on the opportunities or risks presenting themselves at the time. As at
Outlook
Having passed peak interest rates with stable labour markets and broadly stable macroeconomic conditions, equity markets performed strongly through 2024. 2025 has started with a change of market leadership, with European and
Following a period of extended economic weakness, exacerbated by tariff uncertainty, the Chinese Government has begun a more concerted campaign aimed at accelerating economic growth and arresting deflationary pressures. Recent policy moves have sought to improve and encourage lending into the real economy with a sizable fiscal easing programme announced. Whilst the scale of the easing is large, western markets and commentators have remained sceptical of its impact and effectiveness whilst awaiting evidence to the contrary. In the
We expect that the market’s attention will continue to focus on the trade policy of the Trump administration and the likely success of trade deals, most notably with
The
We continue to focus the portfolio on cash generative businesses that we believe offer durable, competitive advantages as we believe these companies are best placed to drive returns over the long term. Whilst we anticipate economic and market volatility will persist throughout the year, we are excited by the opportunities this will likely create; by seeking to identify the companies that strengthen their long-term prospects as well as attractive turnaround situations.
ADAM AVIGDORI AND
Ten largest investments
Together, the Company’s ten largest investments represented 43.3% of the Company’s portfolio as at
1 ► AstraZeneca
(2024: 1st)
Sector: Pharmaceuticals & Biotechnology
Market value: £3,222,000
Share of investments: 7.1% (2024: 6.5%)
AstraZeneca is a leading multinational pharmaceutical and biotechnology company headquartered in
2 ► RELX
(2024: 2nd)
Sector: Media
Market value: £2,848,000
Share of investments: 6.3% (2024: 5.9%)
RELX is a global provider of information-based analytics and decision tools for professional and business customers across industries including science, healthcare, risk, and legal sectors. It leverages data and technology to deliver insights that help clients make better decisions, positioning itself as a critical partner in knowledge-driven markets.
3 ▲ 3i Group
(2024: 6th)
Sector: Financial Services
Market value: £2,115,000
Share of investments: 4.6% (2024: 4.1%)
3i Group is an international investment company focused on private equity and infrastructure investments. It aims to generate attractive returns by backing growth-oriented businesses and infrastructure projects, primarily in
4
▼
Shell
(2024: 3rd)
Sector:
Market value: £2,017,000
Share of investments: 4.4% (2024: 5.7%)
Shell is one of the world’s largest integrated energy companies, operating across the oil and gas value chain, including exploration, production, refining, and marketing. It is actively transitioning towards cleaner energy solutions while maintaining a strong presence in traditional hydrocarbons, reflecting its strategic pivot in the evolving energy landscape.
5 ▲ Unilever
(2024: 7th)
Sector: Personal Goods
Market value: £1,823,000
Share of investments: 4.0% (2024: 3.7%)
Unilever is a global consumer goods company with a diverse portfolio of well-known brands in food, beverages, personal care, and home care. With a significant presence in emerging markets, Unilever emphasises sustainability and innovation to drive growth and meet changing consumer preferences worldwide.
6 ▲ British American Tobacco
(2024: 19th)
Sector: Tobacco
Market value: £1,741,000
Share of investments: 3.8% (2024: 1.9%)
British American Tobacco is a leading international tobacco company, manufacturing and selling cigarettes, tobacco products, and next-generation products like vaping devices. It operates globally with a focus on expanding its reduced-risk product portfolio amid shifting regulatory and consumer trends.
7 ▲ Lloyds Banking Group
(2024: 43rd)
Sector: Banks
Market value: £1,543,000
Share of investments: 3.4% (2024: 0.8%)
Lloyds Banking Group is one of the UK’s largest retail and commercial banks, providing a wide range of financial services including personal banking, insurance, and wealth management. It has a strong domestic franchise and is focused on digital transformation to enhance customer experience.
8 ▲ Admiral Group
(2024: 18th)
Sector:
Market value: £1,540,000
Share of investments: 3.4% (2024: 3.2%)
Admiral Group is a
9 ► Standard Chartered
(2024: 9th)
Sector: Banks
Market value: £1,531,000
Share of investments: 3.4% (2024: 3.2%)
Standard Chartered is a British multinational bank with a strong focus on
10 ▼ HSBC
(2024: 5th)
Sector: Banks
Market value: £1,308,000
Share of investments: 2.9% (2024: 4.1%)
HSBC is one of the world’s largest banking and financial services organizations, operating globally across
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
Distribution of investments as at
Analysis of portfolio by sector
____________________________________________________________________________ | |% of investments by market value|Benchmark| | | |Index | |_________________________________|________________________________|_________| |1 Banks |11.2 |12.4 | |_________________________________|________________________________|_________| |2 Financial Services |9.9 |5.9 | |_________________________________|________________________________|_________| |3 Media |9.0 |1.2 | |_________________________________|________________________________|_________| |4 Pharmaceuticals & Biotechnology|8.8 |10.6 | |_________________________________|________________________________|_________| |5 Real Estate Investment Trusts |7.0 |2.4 | |_________________________________|________________________________|_________| |6 General Retailers |6.9 |3.4 | |_________________________________|________________________________|_________| |7 Oil & Gas Producers |6.3 |8.6 | |_________________________________|________________________________|_________| |8 Non-Life Insurance |4.6 |0.9 | |_________________________________|________________________________|_________| |9 Mining |4.5 |0.2 | |_________________________________|________________________________|_________| |10 Support Services |4.3 |3.1 | |_________________________________|________________________________|_________| |11 Household Goods & Home |4.1 |1.0 | |Construction | | | |_________________________________|________________________________|_________| |12 Personal Goods |4.0 |0.1 | |_________________________________|________________________________|_________| |13 Tobacco |3.8 |3.7 | |_________________________________|________________________________|_________| |14 Aerospace & Defence |3.7 |0.0 | |_________________________________|________________________________|_________| |15 Travel & Leisure |2.4 |1.9 | |_________________________________|________________________________|_________| |16 Industrial Engineering |2.4 |0.4 | |_________________________________|________________________________|_________| |17 Food Producers |2.2 |0.6 | |_________________________________|________________________________|_________| |18 Life Insurance |1.8 |2.3 | |_________________________________|________________________________|_________| |19 Electronic & Electrical |1.2 |0.9 | |Equipment | | | |_________________________________|________________________________|_________| |20 General Industrials |1.1 |0.8 | |_________________________________|________________________________|_________| |21 Beverages |0.8 |2.8 | |_________________________________|________________________________|_________|
Sources: BlackRock and LSEG Datastream.
Investment size
_________________________________________________________________ | |Number of investments|% of investments by market value| |__________|_____________________|________________________________| |< £1m |27 |34.1 | |__________|_____________________|________________________________| |£1m to £2m|15 |43.5 | |__________|_____________________|________________________________| |£2m to £3m|3 |15.3 | |__________|_____________________|________________________________| |£3m to £4m|1 |7.1 | |__________|_____________________|________________________________|
Source: BlackRock.
List of investments as at
Market
value % of
£’000 investments
Banks
Lloyds Banking Group 1,543 3.4
Standard Chartered 1,531 3.4
HSBC 1,308 2.9
NatWest 683 1.5
--------------- ---------------
5,065 11.2
========= =========
Financial Services
3i Group 2,115 4.6
London Stock Exchange Group 1,213 2.7
Intermediate Capital Group 796 1.8
Ashmore Group 279 0.6
Rosebank 99 0.2
--------------- ---------------
4,502 9.9
========= =========
Media
RELX 2,848 6.3
Pearson 1,221 2.7
--------------- ---------------
4,069 9.0
========= =========
Pharmaceuticals & Biotechnology
AstraZeneca 3,222 7.1
GSK 754 1.7
--------------- ---------------
3,976 8.8
========= =========
Real Estate Investment Trusts
Segro 1,148 2.5
Great Portland Estates 884 1.9
Big Yellow Group 622 1.4
Derwent London 504 1.2
--------------- ---------------
3,158 7.0
========= =========
General Retailers
Next 936 2.1
Howden Joinery 828 1.8
WH Smith 710 1.6
Inchcape 651 1.4
--------------- ---------------
3,125 6.9
========= =========
Oil & Gas Producers
Shell 2,017 4.4
BP Group 851 1.9
--------------- ---------------
2,868 6.3
========= =========
Non-Life Insurance
Admiral Group 1,540 3.4
Hiscox 564 1.2
--------------- ---------------
2,104 4.6
========= =========
Mining
Rio Tinto 1,300 2.9
Anglo American 732 1.6
--------------- ---------------
2,032 4.5
========= =========
Support Services
Mastercard1 1,063 2.3
Rentokil Initial 488 1.1
Hays 419 0.9
--------------- ---------------
1,970 4.3
========= =========
Household Goods & Home Construction
Reckitt 1,161 2.5
Taylor Wimpey 714 1.6
--------------- ---------------
1,875 4.1
========= =========
Personal Goods
Unilever 1,823 4.0
--------------- ---------------
1,823 4.0
========= =========
Tobacco
British American Tobacco 1,741 3.8
--------------- ---------------
1,741 3.8
========= =========
Aerospace & Defence
BAE Systems 870 1.9
Rolls-Royce Holdings 492 1.1
Melrose Industries 316 0.7
--------------- ---------------
1,678 3.7
========= =========
Travel & Leisure
Compass Group 1,112 2.4
--------------- ---------------
1,112 2.4
========= =========
Industrial Engineering
Weir Group 1,083 2.4
--------------- ---------------
1,083 2.4
========= =========
Food Producers
Tate & Lyle 1,018 2.2
--------------- ---------------
1,018 2.2
========= =========
Life Insurance
Phoenix Group 812 1.8
--------------- ---------------
812 1.8
========= =========
Electronic & Electrical Equipment
Oxford Instruments 550 1.2
--------------- ---------------
550 1.2
========= =========
General Industrials
Coats Group 495 1.1
--------------- ---------------
495 1.1
========= =========
Beverages
Fevertree Drinks 344 0.8
--------------- ---------------
344 0.8
--------------- ---------------
Total investments 45,400 100.0
========= =========
1
Non-
All investments are in ordinary shares unless otherwise stated. The total number of investments held at
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:
· Investment performance;
· Income/dividend;
· Gearing;
· Legal & regulatory compliance;
· Operational;
· Political;
· Market; and
· Financial.
The Board reported on the principal risks and uncertainties faced by the Company in the Annual Report and Financial Statements for the year ended
Certain financial markets have been negatively impacted by the ongoing geopolitical tensions arising from the hostilities in the
In the view of the Board, other than those matters noted above, there have not been any material changes to the fundamental nature of these risks since the previous report and these principal risks and uncertainties, as summarised, are as applicable to the remaining six months of the financial year as they were to the six months under review.
Going concern
The Board remains mindful of the ongoing uncertainty surrounding the extent of the hostilities in the
For this reason, they continue to adopt the going concern basis in preparing the financial statements. The Company has a portfolio of investments which are considered to be readily realisable and is able to meet all of its liabilities from its assets and income generated from these assets. Ongoing charges (calculated as a percentage of average daily net assets and based on the management fee and all other operating expenses, excluding finance costs, direct transaction costs, custody transaction charges, VAT recovered, taxation, prior year expenses written back and certain non-recurring items) for the year ended
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 the 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.
The 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
30 April 2025 30 April 2024 31 October 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 value – 368 368 – 4,892 4,892 – 5,684 5,684
through
profit or
loss
Gains/
(losses) on – 4 4 – (3) (3) – (4) (4)
foreign
exchange
Income from
investments
held at
fair value 3 884 – 884 971 – 971 1,749 49 1,798
through
profit or
loss
Other 3 62 – 62 39 – 39 98 – 98
income
--------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- ---------------
Total 946 372 1,318 1,010 4,889 5,899 1,847 5,729 7,576
income
========= ========= ========= ========= ========= ========= ========= ========= =========
Expenses
Investment
management 4 (17) (85) (102) (8) (74) (82) (24) (155) (179)
fee
Other
operating 5 (163) (4) (167) (160) (3) (163) (301) (6) (307)
expenses
--------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- ---------------
Total
operating (180) (89) (269) (168) (77) (245) (325) (161) (486)
expenses
========= ========= ========= ========= ========= ========= ========= ========= =========
Net profit
on ordinary
activities
before 766 283 1,049 842 4,812 5,654 1,522 5,568 7,090
finance
costs and
taxation
Finance (32) (95) (127) (31) (94) (125) (63) (187) (250)
costs
--------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- ---------------
Net profit
on ordinary
activities 734 188 922 811 4,718 5,529 1,459 5,381 6,840
before
taxation
Taxation – – – (5) – (5) (5) – (5)
charge
--------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- ---------------
Net profit
on ordinary
activities 7 734 188 922 806 4,718 5,524 1,454 5,381 6,835
after
taxation
========= ========= ========= ========= ========= ========= ========= ========= =========
Earnings
per
ordinary 7 3.76 0.96 4.72 3.94 23.09 27.03 7.20 26.65 33.85
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 reserve reserve Total
Note £’000 £’000 £’000 £’000 £’000 £’000 £’000
For the six
months ended
30 April 2025
(unaudited)
At 31 October 298 14,819 251 10,682 15,647 2,063 43,760
2024
Total
comprehensive
income:
Net profit
for the – – – – 188 734 922
period
Transactions
with owners,
recorded
directly to
equity:
Ordinary
shares (4) – 4 (703) – – (703)
purchased for
cancellation
Share
purchase – – – (3) – – (3)
costs
Dividends 6 – – – – – (954) (954)
paid1
--------------- --------------- --------------- --------------- --------------- --------------- ---------------
At 30 April 294 14,819 255 9,976 15,835 1,843 43,022
2025
========= ========= ========= ========= ========= ========= =========
For the six
months ended
30 April 2024
(unaudited)
At 31 October 307 14,819 242 12,391 10,266 2,131 40,156
2023
Total
comprehensive
income:
Net profit
for the – – – – 4,718 806 5,524
period
Transactions
with owners,
recorded
directly to
equity:
Ordinary
shares (5) – 5 (881) – – (881)
purchased for
cancellation
Share
purchase – – – (6) – – (6)
costs
Dividends – – – – – (984) (984)
paid2
--------------- --------------- --------------- --------------- --------------- --------------- ---------------
At 30 April 302 14,819 247 11,504 14,984 1,953 43,809
2024
========= ========= ========= ========= ========= ========= =========
For the year
ended 31
October 2024
(audited)
At 31 October 307 14,819 242 12,391 10,266 2,131 40,156
2023
Total
comprehensive
income:
Net profit – – – – 5,381 1,454 6,835
for the year
Transactions
with owners,
recorded
directly to
equity:
Ordinary
shares (9) – 9 (1,700) – – (1,700)
purchased for
cancellation
Share
purchase – – – (9) – – (9)
costs
Dividends – – – – – (1,522) (1,522)
paid3
--------------- --------------- --------------- --------------- --------------- --------------- ---------------
At 31 October 298 14,819 251 10,682 15,647 2,063 43,760
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 six months ended
For information on the Company’s distributable reserves, please refer to note 10 below.
Balance sheet as at
30 April 30 April 31 October
2025 2024 2024
(unaudited) (unaudited) (audited)
Notes £’000 £’000 £’000
Non current assets
Investments held at fair
value through profit or 11 45,400 46,226 45,096
loss
--------------- --------------- ---------------
Current assets
Current tax asset 19 35 22
Debtors 612 391 972
Cash and cash equivalents 3,339 1,708 2,515
– cash at bank
--------------- --------------- ---------------
Total current assets 3,970 2,134 3,509
========= ========= =========
Current liabilities
Other creditors (348) (551) (845)
Bank loan 8 (6,000) (4,000) (4,000)
--------------- --------------- ---------------
Total current liabilities (6,348) (4,551) (4,845)
========= ========= =========
Net current liabilities (2,378) (2,417) (1,336)
========= ========= =========
Net assets 43,022 43,809 43,760
========= ========= =========
Capital and reserves
Called up share capital 9 294 302 298
Share premium account 10 14,819 14,819 14,819
Capital redemption reserve 10 255 247 251
Special reserve 9,976 11,504 10,682
Capital reserve 15,835 14,984 15,647
Revenue reserve 1,843 1,953 2,063
--------------- --------------- ---------------
Total shareholders’ funds 7 43,022 43,809 43,760
========= ========= =========
Net asset value per 7 222.51 217.79 222.22
ordinary share (pence)
========= ========= =========
Statement of cash flows for the six months ended
Six months Six months Year
ended ended ended
30 April 30 April 31 October
2025 2024 2024
(unaudited) (unaudited) (audited)
£’000 £’000 £’000
Operating activities
Net profit on ordinary 922 5,529 6,840
activities before taxation1
Add back finance costs 127 125 250
Gains on investments held at
fair value through profit or (368) (4,892) (5,684)
loss
(Gains)/losses on foreign (4) 3 4
exchange
Special dividends allocated to – – (49)
capital
Sale of investments held at fair 10,189 8,260 18,292
value through profit or loss
Purchase of investments held at
fair value through profit or (9,782) (6,317) (14,839)
loss
(Increase)/decrease in other (278) (239) 30
debtors
(Decrease)/increase in other (202) 104 26
creditors
Taxation on investment income 3 (13) –
--------------- --------------- ---------------
Net cash generated from 607 2,560 4,870
operating activities
========= ========= =========
Financing activities
Ordinary shares purchased for (703) (844) (1,680)
cancellation
Share purchase costs paid (3) (6) (9)
Drawdown of bank loan 2,000 – –
Interest paid (127) (125) (250)
Dividends paid (954) (984) (1,522)
--------------- --------------- ---------------
Net cash generated from/(used 213 (1,959) (3,461)
in) financing activities
========= ========= =========
Increase in cash and cash 820 601 1,409
equivalents
Cash and cash equivalents at the 2,515 1,110 1,110
beginning of the period/year
Effect of foreign exchange rate 4 (3) (4)
changes
--------------- --------------- ---------------
Cash and cash equivalents at the 3,339 1,708 2,515
end of the period/year
========= ========= =========
Comprised of:
Cash at bank 114 72 260
Cash Fund2 3,225 1,636 2,255
--------------- --------------- ---------------
3,339 1,708 2,515
========= ========= =========
1
Dividends and interest received in cash during the year amounted to £619,000 and £59,000 respectively (six months ended
2
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
30 April 30 April 31 October
2025 2024 2024
(unaudited) (unaudited) (audited)
£’000 £’000 £’000
Investment income:
UK dividends 806 870 1,547
UK special dividends – – 42
UK property income distributions 56 40 62
Dividends from UK REITs1 7 – 17
Overseas dividends 15 61 81
--------------- --------------- ---------------
Total investment income 884 971 1,749
========= ========= =========
Other income:
Interest from Cash Fund 60 38 85
Deposit interest 2 1 3
Underwriting commission – – 10
--------------- --------------- ---------------
Total other income 62 39 98
========= ========= =========
Total 946 1,010 1,847
========= ========= =========
1 REITs - real estate investment trusts.
Dividends and interest received in cash during the year amounted to £619,000 and £59,000 respectively (six months ended
No special dividends have been recognised in capital (six months ended
4. Investment management fee
Six months ended Six months ended Year ended
30 April 2025 30 April 2024 31 October 2024
(unaudited) (unaudited) (audited)
Revenue Capital Total Revenue Capital Total Revenue Capital Total
£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
Investment
management 59 86 145 28 83 111 58 173 231
fee
Investment
management (42) (1) (43) (20) (9) (29) (34) (18) (52)
fee rebate
--------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- ---------------
Total 17 85 102 8 74 82 24 155 179
========= ========= ========= ========= ========= ========= ========= ========= =========
Under the terms of the investment management agreement, BFM is entitled to a fee of 0.6% per annum of the Company’s quarter end market capitalisation. The investment management fee is allocated 25% to the revenue account and 75% to the capital account. There is no additional fee for company secretarial and administration services.
In addition, effective from
5. Other operating expenses
Six months Six months Year
ended ended ended
30 April 30 April 31 October
2025 2024 2024
(unaudited) (unaudited) (audited)
£’000 £’000 £’000
Allocated to revenue:
Custody fees – – 1
Depositary fees 3 2 5
Audit fees1 30 18 60
Registrars’ fee 18 13 27
Directors’ emoluments 50 50 92
Marketing fees 7 7 18
Printing and postage fees 18 33 47
Legal and professional fees 14 21 24
London Stock Exchange fee 7 6 13
FCA fee 4 4 8
Prior year expenses written (9) (10) (25)
back2
Other administration costs 21 16 31
--------------- --------------- ---------------
Total revenue expenses 163 160 301
========= ========= =========
Allocated to capital:
Custody transaction costs3 4 3 6
--------------- --------------- ---------------
Total 167 163 307
========= ========= =========
1
No non-audit services were provided by the Company’s auditors in the six months ended
2
Relates to legal and professional fees and other administration costs written back in the six months ended
3
For the six months ended
The transaction costs incurred on the acquisition of investments amounted to £48,000 for the six months ended
6. Dividend
The Directors have declared an interim dividend of 2.70p per share for the period ended
In accordance with Section 32 of FRS 102, 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, capital 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
30 April 30 April 31 October
2025 2024 2024
(unaudited) (unaudited) (audited)
Net revenue profit attributable 734 806 1,454
to ordinary shareholders (£’000)
Net capital profit attributable 188 4,718 5,381
to ordinary shareholders (£’000)
--------------- --------------- ---------------
Total profit attributable to 922 5,524 6,835
ordinary shareholders (£’000)
========= ========= =========
Total shareholders’ funds 43,022 43,809 43,760
(£’000)
========= ========= =========
Earnings per share
The weighted average number of
ordinary shares in issue during
the period on which the earnings 19,512,901 20,433,281 20,193,264
per ordinary share was
calculated was:
The actual number of ordinary
shares in issue at the period
end on which the net asset value 19,334,743 20,115,258 19,692,612
per ordinary share was
calculated was:
--------------- --------------- ---------------
Calculated on weighted average
number of ordinary shares:
Revenue earnings per share 3.76 3.94 7.20
(pence) – basic and diluted
Capital earnings per share 0.96 23.09 26.65
(pence) – basic and diluted
--------------- --------------- ---------------
Total earnings per share (pence) 4.72 27.03 33.85
– basic and diluted
========= ========= =========
As at As at As at
30 April 30 April 31 October
2025 2024
(unaudited) (unaudited) 2024
(audited)
Net asset value per ordinary share (pence) 222.51 217.79 222.22
Ordinary share price (mid-market) (pence) 198.00 186.50 193.50
========= ========= =========
There were no dilutive securities at
8. Reconciliation of liabilities arising from financing activities
Six months Six months Year ended
ended 30 April ended 30 April
31 October
2025 2024
(unaudited) (unaudited) 2024
(audited)
Debt arising from financing activities
at beginning of the period/year
Bank loan 4,000 4,000 4,000
========= ========= =========
Movement during the period/year:
Drawdown of bank loan 2,000 – –
========= ========= =========
Debt arising from financing activities
at end of the period/year
Bank loan 6,000 4,000 4,000
========= ========= =========
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 1 pence each:
At 31 October 20,603,486 10,081,532 30,685,018 307
2023 (audited)
Shares purchased (488,228) – (488,228) (5)
for cancellation
--------------- --------------- --------------- ---------------
At 30 April 2024 20,115,258 10,081,532 30,196,790 302
(unaudited)
Shares purchased (422,646) – (422,646) (4)
for cancellation
--------------- --------------- --------------- ---------------
At 31 October 19,692,612 10,081,532 29,774,144 298
2024 (audited)
Shares purchased (357,869) – (357,869) (4)
for cancellation
--------------- --------------- --------------- ---------------
At 30 April 2025 19,334,743 10,081,532 29,416,275 294
(unaudited)
========= ========= ========= =========
In the six months ended
Since the period end and up to
10. Reserves
The Company’s share premium account was cancelled pursuant to shareholders’ approval of a special resolution at the Company’s Annual General Meeting in 2002 and Court approval on
The share premium account and capital redemption reserve of £14,819,000 and £255,000 (
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. The following information is not intended to be a comprehensive summary of all risks and shareholders should refer to the Alternative Investment Fund Managers’ Directive FUND 3.2.2R Disclosures which can be found at
www.blackrock.com/uk/brig
for a more detailed discussion of the risks inherent in investing in the Company.
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, bank overdrafts and bank loans). 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 84 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 30 April 2025 45,400 – – 45,400
(unaudited)
Equity investments at 30 April 2024 46,226 – – 46,226
(unaudited)
Equity investments at 31 October 2024 45,096 – – 45,096
(audited)
========= ========= ========= =========
The Company held one Level 3 security during the six months ended
The investment in
There were no transfers between levels of financial assets and financial liabilities recorded at fair value during the six months ended
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 risk, including climate change risk, in accordance with the fair value related requirements of the Company’s financial reporting framework.
12. Related party disclosure
Directors’ emoluments
The Board consists of three non-executive Directors, all of whom are considered to be independent of the Manager by the Board. None of the Directors has a service contract with the Company. With effect from
At the period end and as at
Ordinary shares Ordinary shares Ordinary shares
17 June 2025 30 April 2025 31 October 2024
Graeme Proudfoot (Chairman) 80,000 80,000 80,000
Nicholas Gold1 – – 43,175
Charles Worsley2 987,539 987,539 987,539
Chrysoula Zervoudakis3 5,500 5,500 –
========= ========= =========
1
2 Including a non-beneficial interest of 655,500 ordinary shares.
3
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 Number of
held by Significant Significant Investors
Total % of shares Investors
who are not who are not
held by Related affiliates of affiliates of
BlackRock Funds BlackRock Group or BlackRock Group or
BlackRock, Inc. BlackRock, Inc.
As at 30 April 2025 nil n/a n/a
As at 31 October nil n/a n/a
2024
As at 30 April 2024 nil n/a n/a
========= ========= =========
13. Transactions with the Investment Manager and AIFM
The investment management fee due for the six months ended
The Company is entitled to a rebate from the investment management fee charged by the Manager in the event the Company’s ongoing charges exceed the cap of 1.15% per annum of average daily net assets. The amount of rebate for the period ended
In addition to the above services, BIM (
The Company holds an investment in the
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 Financial 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 ended
EC2N 2DL
ENDS
The Half Yearly Financial Report will also be available on the BlackRock website at http://www.blackrock.com/uk/brig . 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.
For further information please contact:
Press enquires:
Tel:
020 7294 3620
E-mail:
BlackRockInvestmentTrusts@lansons.com
or
EdH@lansons.com
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