BlackRock Energy and Resources Income Trust Plc - Half-year Report
LEI: 54930040ALEAVPMMDC31
Half Yearly Financial Report for the six months ended
Performance record
As at As at 31 May 30 November 2025 2024 Net assets (£’000)1 142,334 167,327 Net asset value per ordinary share (pence) 121.81 137.66 Ordinary share price (mid-market) (pence) 111.00 121.00 Discount to net asset value2 8.9% 12.1% ========= =========
For the six For the year months ended ended 31 May 30 November 2025 2024 Performance3(with dividends reinvested) Net asset value per share2 -10.0% 15.3% Ordinary share price2 -6.5% 14.0% Reference index3 -9.2% 0.5% ========= =========
Since inception Since inception to 30 November to 31 May 2025 2024 Performance since inception4(with dividends reinvested) Net asset value per share2 224.0% 259.9% Ordinary share price2 197.7% 218.4% ========= =========
For the six For the six months ended months ended 31 May 31 May Change 2025 2024 % Revenue Net profit on ordinary activities after taxation 2,381 2,334 2.0 (£’000) Revenue earnings per ordinary 2.00 1.83 9.3 share(pence)5 --------------- --------------- --------------- Interim dividends (pence) 1st interim 1.125 1.125 – 2nd interim6 1.125 1.125 – --------------- --------------- --------------- Total dividends payable/paid 2.250 2.250 – ========= ========= =========
1 The change in net assets reflects portfolio movements, the repurchase of shares and dividends paid during the period.
2 Alternative Performance Measures, see Glossary within the Half Yearly Financial Report.
3
Reference index is the blended reference index comprised of three indices – the MSCI ACWI Select Metals & Mining Producers Ex Gold and
4
The Company was launched on
5 Further details are given in the Glossary within the Half Yearly Financial Report.
6
Paid on
Chairman’s Statement
Dear Shareholder,
I am pleased to present the Company’s Half Yearly Financial Report for the six months to
Period Highlights
-
NAV underperformance of the blended reference index of -0.8% for the six months to
-
Strong longer-term performance with NAV per share outperformance of the blended reference index over 1, 3 and 5 years to
-
Quarterly dividend increased by 11.1% to 1.25p per share for the financial year to
-
New dividend policy introduced with effect from
- Continuation vote to be held at the AGM to be held in 2026 to give all shareholders a voice in respect of the future of their investment in the Company.
Market overview
At the start of the Company’s financial year on
Performance
In the challenging market during the six months ended
Cumulative performance as at
Six 1 Year 2 Years 3 Years 5 Years Since months change change change change inception1 Change % % % % % % Performance to31 May 2025 Net Asset Value (with dividends -10.0 -8.8 6.2 -2.6 125.0 224.0 reinvested)2 Share price (with dividends -6.5 -5.1 7.4 -12.6 147.9 197.7 reinvested)2 Reference index3,4 -9.2 -16.2 -9.9 -16.6 70.0 N/A Relative (underperformance)/outperformance -0.8 7.4 16.1 14.0 55.0 N/A of NAV return against the reference index ========= ========= ========= ========= ========= =========
1
The Company was launched on
2 Further details of the calculation of net total return performance net of withholding taxes and with dividends reinvested are given in the Glossary within the Half Yearly Financial Report.
3
Reference index is the blended reference index comprised of three indices – the MSCI ACWI Select Metals & Mining Producers Ex Gold and
4 Please note though, that the Company’s objectives are to achieve both an annual dividend target and, over the long term, capital growth (see table above). Consequently, the Board does not formally benchmark performance against mining and energy sector indices as meeting a specific dividend target is not within the scope of these indices. In addition, there is no publishable index with a close match to the Energy Transition portfolio; the S&P Global Clean Energy Index following recent changes is the best available proxy.
Source:
Our portfolio managers provide a detailed description of the main contributors and detractors to performance during the period, insight into the positioning of the portfolio and their views on the outlook for the forthcoming year in their report below.
Revenue return and dividends
The Company’s revenue return for the six-month period was
In addition to the increased quarterly dividend, the Board has decided to target a dividend in each financial year of the greater of (i)
the total dividend per share in respect of the prior year
and (ii) at least 4% of NAV per share at the end of the preceding financial year with effect from
The Company will take advantage of the flexibilities, offered by its structure as a closed-ended fund to meet this target dividend next year and beyond. Dividends will be funded primarily from a mix of dividend income from the portfolio and revenue reserves (the Company has substantial accumulated revenue reserves), and this may be supported by other distributable reserves if required.
The Company may also continue to write options to generate revenue return, although the portfolio managers’ focus is on investing the portfolio to generate an optimal level of total return without striving to meet an annual income target and will only undertake option transactions to the extent that the overall contribution is beneficial to total return.
This dividend target should not be interpreted as a profit forecast.
Gearing
The Company operates a flexible gearing policy which depends on prevailing market conditions. It is not intended that gearing will exceed 20% of the gross assets of the Company. The maximum gearing used during the period was 13.9%, and the level of gearing at
Agreement with
On
AGM Resolution – votes ‘against’ in excess of 20%
At the Company’s Annual General Meeting held on
The Board highlighted its policies for managing its share rating as described below. To the extent this policy may impact on scale, the Board has sought to insulate shareholders from the risk of a smaller scale impacting cost by negotiating with BlackRock a further reduction in the cap on operating costs in 2024 from 1.25% to 1.15% of NAV.
In addition, the Board highlighted that it had regularly sought the views of other shareholders, who have generally been supportive, and the importance of ensuring that views of all shareholders were taken into account. It also noted that the Company had announced on
Management of share rating
The Directors recognise the importance to investors that the Company’s share price should not trade at a significant premium or discount to NAV, and therefore, in normal market conditions, may use share repurchases, sales of shares from treasury and share issues to ensure that the share price does not differ excessively from the underlying NAV.
Discounts across the closed-end funds sector remained wide over the period under review, driven by ongoing uncertainty around interest rates, cost inflation and global economic growth. Against this challenging backdrop, the Company’s shares started the six months under review trading at a discount of 12.1% and ended the period at 8.9%, which compared to a closed-end fund sector average (excluding 3i Group) of 14.0% and an average for the
There are of course 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. It is important to view the Company’s share rating in the wider market context, noting that the
Market outlook and portfolio positioning
Increased power demand from artificial intelligence (AI) applications are likely to spur increased demand on electricity grids and the materials and fuels that power them. Therefore, the flexibility of the Company’s investment mandate with the ability to shift exposure between Mining, Traditional Energy and Energy Transition sectors, means that it is uniquely positioned to serve investors as these sectors evolve. The Board considers that all three sectors have an important role to play as the energy system continues its transition to a lower carbon economy; the Mining sector provides the material supply chain for low carbon technologies from steel for wind turbines to lithium for electric cars; traditional energy is needed to support base load energy to continue to power economies during the transition; and the path to a lower carbon economy is expected to disrupt many industries and business models with scope for the Company to invest directly in opportunities in the Energy Transition space. In
As the global economy navigates a complex landscape of geopolitical uncertainty, the focus of the portfolio is on the long-term demand drivers, such as green infrastructure, AI-driven data centres, and demographic shifts in emerging markets, alongside constrained supply. Mining and traditional energy equities are currently trading at attractive valuations relative to other sectors and to their own history, while Energy transition offers growth possibilities and more now more reasonable valuations. The Board is confident that the Company remains well-placed to benefit from these key investment trends over the long term.
Chairman
Investment Managers’ Report
Market overview
The first six months of 2025 saw global stock markets experience notable volatility and the Company’s net asset value per share (NAV) delivering a negative return, where the Traditional Energy and Mining sectors of the Company lagged the modest fall in broader markets. This experience was in contrast to the US mega cap-led rising market trend during the prior twelve-month period.
Trade policy and geopolitical factors were key drivers of market volatility and of investor sentiment throughout the period. The new US administration imposed higher tariffs on imports from
The
Increased geopolitical tensions between the US and
Technology related uncertainty was also evident. Chinese artificial intelligence (AI) group DeepSeek’s latest AI model, which aimed to rival technology developed by OpenAI, Meta and
H1 2025 on H1 2024 31 May 30 November Average Price % Commodity 2025 2024 % change Change1 Base Metals (US$/tonne) Aluminium 2,438 2,577 -5.4% 9.7% Copper 9,548 8,892 7.4% 4.2% Lead 1,934 2,048 -5.6% -6.7% Nickel 15,041 15,671 -4.0% -10.9% Tin 30,328 28,695 5.7% 12.3% Zinc 2,597 3,109 -16.5% 8.1% --------------- --------------- --------------- --------------- Precious Metals (US$/ounce) Gold 3,285.3 2,659.5 23.5% 44.2% Silver 33.1 30.1 10.0% 31.2% Platinum 1,071.0 940.0 13.9% 3.9% Palladium 964.0 983.0 -1.9% -13.5% --------------- --------------- --------------- --------------- Energy Oil (West Texas Intermediate) 61.5 68.3 -10.0% -13.4% (US$/barrel) Oil (Brent) 64.3 74.2 -13.3% -14.3% (US$/barrel) Natural Gas (US$/Metric 2.9 3.4 -15.6% 53.8% Million British Thermal Unit) --------------- --------------- --------------- --------------- Bulk Commodities (US$/tonne) Iron ore 97.5 106.0 -8.0% -16.3% Coking coal 145.5 205.0 -29.0% -37.7% Thermal coal 100.8 141.5 -28.8% -18.3% --------------- --------------- --------------- --------------- Reference Equity Indices MSCI ACWI2 Select Metals & Mining Producers 1,474.4 1,666.1 -11.5% -11.6% Ex Gold and Silver IMI Net Index (£) MSCI3 World 580.3 669.3 -13.3% -0.2% Energy Index (£) S&P Clean Energy 669.6 686.5 -2.5% -17.4% Index (£) MSCI ACWI Select Metals & Mining Producers Ex 1,221.1 1,300.6 -6.1% -10.4% Gold and Silver IMI Net Index (US$)MSCI World Energy Index 470.4 511.3 -8.0% 1.1% (US$) S&P Clean Energy 1,174.4 1,132.2 3.7% -16.3% Index (US$) ========= ========= ========= =========
Source: LSEG Datastream,
1
Average of
2 Morgan Stanley Capital International All Country Weighted Index.
3
Investment performance & portfolio activity
The Company’s portfolio delivered an NAV return of -10.0% (in Sterling terms net of withholding taxes and with dividends reinvested) for the period, which was a slight underperformance of the -9.2% return for the reference index.
In all of the three major sectors, the portfolio investments saw negative absolute returns, although the energy transition sector saw the least negative performance. Our slight underweight to the energy transition sector on average for the first half was therefore a modest detractor from performance. The underperformance was also driven by negative stock selection in the conventional energy sector where a couple of our natural gas services companies,
It was a tough period overall for commodities both on the energy and mining side with prices for most commodities (precious metals aside) falling during the half year. This was despite meaningful weakness in the US dollar, which is more typically associated with a more positive environment for commodities – this reflects just how weak the macro demand environment was with the uncertainties caused by the ongoing tariff uncertainties, although these uncertainties seem to have eased somewhat, as a number of countries strike tariff deals ahead of the August deadline.
Market volatility, in addition to fundamental stock decisions, contributed to allocation moves throughout the period. From a top-down perspective, during the first six months we reduced overall exposure to Traditional Energy, given expectations of a well-supplied market through 2025 and in the absence of supply disruption, an expectation that oil prices may trade in the
Within the three sectors we made notable changes to the high-level fund allocation split, to the sub-sectors and to the bottom-up stock specific exposures.
In the Energy Transition sector, we increased exposure to beneficiaries of investment in electrification and in selected renewables. We reduced exposure to industrial energy efficiency companies perceived to be at risk from decisions to delay investment though a period of tariff uncertainty.
In the Traditional Energy sector, we added exposure to integrated oil companies, which included several new purchases. These purchases were funded by exiting a number of exploration & production companies and US focused oilfield services companies.
Within Mining, we added to iron ore exposure given the relative valuations and initiated exposure to European cement production companies.
Income
The Company paid a total of 2.250p in dividends for the first six months of the year, split between the two quarterly payments. From a dividend perspective, the additions to Vale within Mining, to power utilities SSE and Centrica within Energy Transition and to the large integrated oil companies within Traditional Energy were supportive for income generation. Commodity price movements and therefore implications for earnings of the commodity producers were mixed during the period, with strength in the copper price and weakness in iron ore and oil prices.
We have previously noted that Sterling has strengthened versus the US Dollar and this trend has continued throughout the first six months of 2025. This will act as a headwind for the Company’s income generation in Sterling terms as most of the dividends from the underlying portfolio companies are paid in US Dollars.
Gearing was reduced through the middle of the reporting period due to trade tensions giving rise to an uncertain outlook for economic growth.
Traditional Energy
Market expectations for oil prices over the coming quarters have moved lower following the fall in the oil price towards
The fall in the oil price led Traditional Energy stocks lower and the Company’s holdings in Exxon Mobil, Archrock,
We made a number of changes in our Traditional Energy holdings during the period. We increased exposure to the larger integrated oil companies via additions to Exxon Mobil, Shell and a new purchase in TotalEnergies. Exposure to exploration & production (E&P) companies was significantly reduced as these companies typically display a higher volatility to the moves in the oil price. We exited E&P companies where revenues may be more vulnerable to lower oil prices and US onshore oilfield services companies, where drilling activity may slow, impacting on revenues. We exited E&P companies Arc Resources, ConocoPhillips, Kosmos Energy and Diamondback Energy and oil services companies Archrock and
Oil and Petroleum Exporting Countries (OPEC) have exercised supply discipline in recent years in an effort to manage and support the oil price. However, there has been a change in their behaviour with
The Company is positioned for an energy market that appears well-supplied with oil through 2025, with new oil production growth expected to match or exceed oil demand growth. We therefore see oil prices trending lower through 2025. This view underpins a preference for defensive exposure within integrated oil companies and to E&P companies. We have exposure to the integrated oil companies as we view them having stronger balance sheets, cost structures and are able to generate sufficient cash flows at lower oil prices to continue to pay dividends and share buybacks and invest in production. Within the E&P sub-sector we have lower exposure, focused on international oil and gas producers as we view them having lower production costs, which we expect to prove more resilient through a lower oil price environment.
The Company has exposure to US pipeline energy distribution companies that we expect will benefit from strong natural gas volumes and to internationally focused oilfield services companies, typically involved in longer-life projects, where we expect capital expenditure budgets are likely to be maintained.
We believe electricity demand in the US and
Energy Transition
Since the US presidential election, Energy Transition companies have seen considerable dispersion and volatility in returns. The sector continued to see a de-rating in valuations throughout December and January before an initial recovery in returns, led by select US renewables companies following expected changes to US energy policy that were less bad than many feared.
Suppliers of power grid equipment performed strongly during the period and the Company’s holdings in GE Vernova and Siemens Energy rose 40% and 70%, respectively. Both companies reported results that showed an increase in order backlog and profit margin expansion. Power utilities were also beneficiaries of this market trend with National Grid delivering a positive return. The Company benefited from participation in a private placing in Belgian-listed utility company, Elia Group, as part of its €2.2bn funding package to support grid investment plans. The placing strengthened the company balance sheet, removing a key risk for the shares, which subsequently rose strongly.
Exposure to industrial energy efficiency companies detracted from returns as companies perceived to have greater economic sensitivity fell on the tariff related uncertainty. Specialist air compression equipment supplier
We made a number of changes in positioning within the Energy Transition sector throughout the period, partly due to dispersion in returns from the companies and partly due to greater conviction in the outlook with greater clarity around US energy policy. Exposure to industrial companies Trane Technologies and
The US has a fundamental and pressing need for electricity, which we expect to be fulfilled from an “all of the above” approach to power generation. The changes to US energy policy contained within the “One Big Beautiful Bill Act” continued to support domestic supply chains and utility-scale solar. Whilst US and European energy policies are especially supportive for the build-out of fast-deployable solar and onshore wind power, we see investment opportunities longer-term from increased investment across natural gas and nuclear, but primarily around power grid investment, with the amount of expected growth showing in Figure 5 within the Half Yearly Financial Report. There is increased talk of a nuclear renaissance, it should be noted that there is a considerable time-to-build any form of new nuclear facilities and very limited number of facilities that may be restarted such as with the
In April,
The valuation of a number of energy transition companies remains attractive, in our view, with negative market sentiment over the past 18 months towards such companies, having led to valuation multiples moving lower. It is noteworthy that private equity, which typically have longer investment time horizons, has been taking advantage by buying publicly listed renewables assets.
Mining
Mining companies came under pressure in the first six months of the year with US tariff uncertainty, which impacted investor expectations around potential for retaliation, increased domestic commodity prices and near-term commodity demand.
A fall in the iron ore price impacted the Company’s holdings in Vale and Anglo American, which detracted from returns during the period. Battery metals were weak impacting on Company’s positions in Albemarle and Lifezone Metals.
The 23% rise in the gold price was positive for gold and silver royalty company Wheaton Precious Metals and gold producer Kinross Gold.
As the outlook for bulk commodities has become more benign, we have broadened investment beyond those areas, such as with the purchase of cement group Heidelberg Materials which rose strongly. The outlook for European cement production is supported by the coming implementation of the Carbon Border Adjustment Mechanism (CBAM), but the recent catalyst to performance has come from Germany’s €500billion commitment on infrastructure investment over the next ten years. Infrastructure investment required for the build-out of AI data centres and grid infrastructure may also be underestimated by the market. During the period, relative valuation led us to increase exposure to Vale and Freeport-McMoRan and initiate a position in platinum group metals producer Valterra Platinum, a spin-off from Anglo American.
Historically, mined commodities were linked to the pace of property development in
Mined raw materials are necessary to produce many of the new technologies and to enable the energy transition — these materials include lithium, cobalt, nickel, rare earth elements, copper, and graphite. They enable the production of batteries for EVs, magnets for wind turbines, silicon for solar panels, and wiring for grid infrastructure. Demand is rising as electrification expands, with energy technologies driving the majority of growth across many of these materials.
The supply of critical materials faces a number of potential risks, which are important considerations for companies and countries. Mining and refining are highly concentrated, mostly in
Data centres, required to train large AI models and for inferencing the rapidly increasing use of these models, consume large amounts of power to run and cool. The hyperscalers are committing to significant expansion of these data centres, as shown in Figure 8 within the Half Yearly Financial Report. This investment is materials intensive, something that is often overlooked, with metals such as copper being critical in the data centres themselves as well as for the grid connections and extra power generation that will be required.
The shift towards electrification, now additionally boosted by AI investment, coupled with a relatively constrained supply backdrop underpins our medium-term positive view on copper. In order to form an investment opinion, we seek to understand the strategy of the companies in which we invest and their operations. For a mining company, there is no substitute for going to their site to gain a clearer understanding of the potential from the asset. Earlier this year, our team member visited BHP’s Escondida copper mine in
The Company maintains modest exposure to gold producers. Gold and silver have important industrial uses but are viewed as safe-haven assets during times of uncertainty and for this reason they are not core to the Company’s mining exposure, but we retain investment flexibility. Non-Western central banks, particularly
As the global economy navigates a complex landscape of geopolitical uncertainty, within our mining exposure, we focus on the long-term demand drivers – such as green infrastructure, AI-driven data centres, and demographic shifts in emerging markets, alongside constrained supply. We view mining equities as trading at attractive valuations relative to other sectors and historical values, in current markets.
Market outlook and portfolio positioning
What sets AI apart from past technological shifts is its potential to mimic, or even enhance, human intelligence. BlackRock’s
We expect power demand to accelerate, driven by AI, heating/ventilation/air conditioning, electric vehicles and reshoring production. This demand is colliding with a grid infrastructure that may be ill-equipped to scale quickly. Energy policy has also shifted post the
Looking forward we see confirmation of US energy policy as an important catalyst for the renewable energy industry in the US. Whilst not our base case, the risk of an escalation in events in the
1
Source:
Distribution of investments as at
Asset allocation – Geography
____________________ |Global¹ |50.7%| |______________|_____| |United States |19.7%| |______________|_____| |United Kingdom|6.3% | |______________|_____| |Canada |6.2% | |______________|_____| |Brazil |6.0% | |______________|_____| |Germany |3.1% | |______________|_____| |Italy |2.5% | |______________|_____| |Australia |2.4% | |______________|_____| |South Africa |1.2% | |______________|_____| |Africa |1.0% | |______________|_____| |Ireland |0.6% | |______________|_____| |Latin America²|0.3% | |______________|_____|
1 Global relates to companies having businesses and operations in multiple countries and territories.
2
Source: BlackRock.
Asset allocation – Commodity/sub-sectors
________________________ |Mining |41.0%| |__________________|_____| |Traditional Energy|29.5%| |__________________|_____| |Energy Transition |29.5%| |__________________|_____|
Energy Transition (29.5%)
______________________ |Electrification |9.6%| |_________________|____| |Energy Efficiency|7.2%| |_________________|____| |Renewables |7.1%| |_________________|____| |Storage |5.1%| |_________________|____| |Transport |0.5%| |_________________|____|
Traditional Energy (29.5%)
______________________________ |Integrated |11.9%| |________________________|_____| |Exploration & Production|7.8% | |________________________|_____| |Oil Services |6.3% | |________________________|_____| |Distribution |3.5% | |________________________|_____|
Mining (41.0%)
___________________________ |Diversified |21.4%| |_____________________|_____| |Copper |6.1% | |_____________________|_____| |Gold |3.3% | |_____________________|_____| |Industrial Minerals |2.7% | |_____________________|_____| |Aluminium |2.6% | |_____________________|_____| |Steel |1.6% | |_____________________|_____| |Platinum Group Metals|1.2% | |_____________________|_____| |Uranium |1.2% | |_____________________|_____| |Nickel |0.9% | |_____________________|_____|
Source: BlackRock.
Ten largest investments
Together, the Company’s ten largest investments represent 39.2% of the Company’s portfolio as at
1
▲
Vale
(2024: 8th)
Diversified mining group
Market value: £9,142,000
Share of investments: 6.0%
1
(2024: 2.8%)
One of the largest mining groups in the world, with operations in 30 countries. Vale is the world’s largest producer of iron ore and iron ore pellets, and the world’s largest producer of nickel. The group also produces manganese ore, ferroalloys, metallurgical and thermal coal, copper, platinum group metals, gold, silver, cobalt, potash, phosphates and other fertiliser nutrients.
2
▼
Anglo American
(2024: 1st)
Diversified mining group
Market value: £8,305,000
Share of investments: 5.4%
(2024: 4.6%)
A global mining group. The group’s mining portfolio includes bulk commodities including iron ore, manganese, metallurgical coal, base metals including copper and nickel and precious metals and minerals such as platinum and diamonds. Anglo American has mining operations globally, with significant assets in
3
▲
Exxon Mobil
(2024: 12th)
Integrated oil group
Market value: £7,633,000
Share of investments: 5.0%
(2024: 2.5%)
An American multinational oil and gas corporation. They continue to evolve to meet growing global demand for oil, natural gas and refined products and plan to play a role in the energy transition.
4
▼
Diversified mining group
Market value: £7,299,000
Share of investments: 4.8%
(2024: 4.5%)
One of the world’s leading mining companies. The group’s primary product is iron ore, but it also produces aluminium, copper, diamonds, gold, industrial minerals and energy products.
5
▼
Shell
(2024: 4th)
Integrated oil group
Market value: £6,091,000
Share of investments: 4.0%
(2024: 2.9%)
One of the largest integrated energy companies globally with five main operating segments:
6
▲
NiSource
(2024: n/a)
Oil services
Market value: £5,065,000
Share of investments: 3.3%
(2024: n/a)
One of the largest fully regulated utility companies in
7
▲
Abaxx Technologies
(2024: 30th)
Diversified mining group
Market value: £4,492,000
Share of investments: 2.9%
2
(2024: 1.3%)
A financial software and market infrastructure company focused on developing technology for global commodity exchanges and digital marketplaces, which owns and operates Abaxx Exchange and Abaxx Clearing.
8
▲
Elia Group
(2024: n/a)
Storage
Market value: £4,064,000
Share of investments: 2.6%
(2024: n/a)
A transmission system operator, primarily active in
9
▼
Hydro
(2024: 6th)
Aluminium mining
Market value: £4,024,000
Share of investments: 2.6%
(2024: 2.9%)
A Norwegian aluminium and renewable energy company that has 33,000 employees in more than 140 locations and 40 countries.
10
▲
SSE
(2024: 46th)
Renewables
Market value: £3,931,000
Share of investments: 2.6%
(2024: 0.9%)
A leading energy company in the
1 1.2% relates to interest in Vale shareholder debentures.
2 1.5% relates to interest in fixed income investments which is unlisted and held at fair value.
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
Investments as at
Main Market geographic value % of exposure £’000 investments Mining Diversified Vale Brazil 7,312 } 6.0 Vale Debentures1 Brazil 1,830 Anglo American Global 8,305 5.4 Rio Tinto Global 7,299 4.8 Abaxx Technologies 7.0% 21/03/2028 – convertible Global 2,335 debentures2 } 2.9 Abaxx Technologies Global 2,157 Teck Resources Global 2,345 1.5 BHP Global 1,291 0.8 --------------- --------------- 32,874 21.4 ========= ========= Copper First Quantum Minerals Global 2,325 } 2.0 First Quantum Minerals Global 726 6.875% 15/10/20274 Freeport-McMoRan United States 2,054 1.3 Metals Acquisition Australia 1,312 0.9 Foran Mining Canada 1,096 0.7 Ivanhoe Electric United States 744 0.5 Develop Global Australia 661 0.4 Ngex Minerals Latin America 496 0.3 --------------- --------------- 9,414 6.1 ========= ========= Gold Wheaton Precious Metals Global 2,077 1.4 Allied Gold Corporation Africa 1,569 1.0 8.75%07/09/2028 – bonds4 Kinross Gold Global 1,312 0.9 --------------- --------------- 4,958 3.3 ========= ========= Industrial Minerals Heidelberg Materials Global 1,448 0.9 Lynas Corporation Australia 995 0.6 Nutrien United States 940 0.6 Albemarle Global 918 0.6 --------------- --------------- 4,301 2.7 ========= ========= Aluminium Hydro Global 4,024 2.6 --------------- --------------- 4,024 2.6 ========= ========= Steel ArcelorMittal Global 2,507 1.6 --------------- --------------- 2,507 1.6 ========= ========= Platinum Group Metals Anglo American Platinum South Africa 1,830 1.2 --------------- --------------- 1,830 1.2 ========= ========= Uranium Cameco Canada 1,740 1.2 --------------- --------------- 1,740 1.2 ========= ========= Nickel Nickel Mines Australia 749 0.5 Lifezone Metals Global 666 0.4 --------------- --------------- 1,415 0.9 ========= ========= Total Mining 63,063 41.0 ========= ========= Traditional Energy Integrated Exxon Mobil Global 7,633 5.0 Shell Global 6,091 4.0 TotalEnergies Global 3,083 2.0 Suncor Energy Canada 1,372 0.9 Gazprom3 Russian Federation – – --------------- --------------- 18,179 11.9 ========= ========= Exploration & Production Hess Global 2,959 1.9 Canadian Natural Resources Canada 2,360 1.5 Permian Resources United States 2,080 1.4 EQT Corporation United States 1,614 1.0 EOG Resources United States 1,575 1.0 Tourmaline Oil Canada 1,492 1.0 --------------- --------------- 12,080 7.8 ========= ========= Oil Services NiSource United States 5,065 3.3 TechnipFMC Global 2,965 1.9 Gaztransport & Technigaz Global 1,685 1.1 --------------- --------------- 9,715 6.3 ========= ========= Distribution Cheniere Energy United States 2,380 1.5 Targa Resources United States 1,697 1.1 TC Energy Canada 1,389 0.9 --------------- --------------- 5,466 3.5 ========= ========= Total Traditional Energy 45,440 29.5 ========= ========= Energy Transition Electrification Centrica United Kingdom 3,694 2.4 Centerpoint Energy United States 3,654 2.4 EDP Renováveis Global 2,826 1.8 National Grid United Kingdom 2,041 1.3 Vistra United States 953 0.6 Talen Energy United States 891 0.6 Howmet Aerospace United States 718 0.5 --------------- --------------- 14,777 9.6 ========= ========= Energy Efficiency Schneider Electric Global 3,075 2.0 Trane Technologies United States 2,850 1.9 Ingersoll-Rand United States 2,134 1.4 Analog Devices Global 1,423 0.9 Kingspan Group Ireland 917 0.6 Vertiv Holdings Global 724 0.5 Owens Corning Put Option United States (202) (0.1) 18/07/2025 --------------- --------------- 10,921 7.2 ========= ========= Renewables SSE United Kingdom 3,931 2.6 First Solar Global 3,773 2.4 Siemens Energy Global 2,143 1.4 GE Vernova United States 1,064 0.7 --------------- --------------- 10,911 7.1 ========= ========= Storage Elia Group Germany 4,064 2.6 Prysmian Spa Italy 3,788 2.5 --------------- --------------- 7,852 5.1 ========= ========= Transport Infineon Technologies Germany 706 0.5 --------------- --------------- 706 0.5 ========= ========= Total Energy Transition 45,167 29.5 --------------- --------------- Total Portfolio 153,670 100.0 ========= ========= Comprising: Equity and debt investments 153,872 100.1 Derivative financial instruments – written (202) (0.1) options --------------- --------------- 153,670 100.0 ========= =========
1
The investment in the Vale debentures is illiquid and has been valued using secondary market pricing information provided by the
2 Investment is unlisted and is held at fair value.
3
The investment in Gazprom has been valued at a nominal value of
4 Bonds are illiquid and held at broker prices
All investments are ordinary shares unless otherwise stated. The total number of holdings (including options) at
There was one open option as at
The equity and fixed income investment total of £153,872,000 (
As at
Interim Management Report and Responsibility Statement
The Chairman’s Statement and the Investment Managers’ Report within the Half Yearly Financial Report 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 and regulatory compliance;
- Operational;
- 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
The Board and the Investment Manager continue to monitor investment performance in line with the Company’s investment objectives, and the operations of the Company and the publication of net asset values are continuing.
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 Board is mindful of the risk that unforeseen or unprecedented events including (but not limited to) heightened geopolitical tensions such as the wars in
Notwithstanding this significant degree of uncertainty, the Directors, having considered the nature and liquidity of the portfolio, the Company’s investment objective, the Company’s projected income and expenditure, the continuation vote proposals coming up at the forthcoming Annual General Meeting in
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. Borrowings under the overdraft facility shall be lower of £40.0 million or 20% of the Company’s net assets (calculated at the time of draw down) and this covenant was complied with during the period. Up to
The Board has considered the Company’s more recent performance, its discount, the make up of the share register, and the unique and attractive nature of its offering. Following due consideration, it has determined, to the best of its ability given it is a future event, that the forthcoming continuation vote does not represent a material uncertainty as it pertains to the going concern assessment.
Based on the above, the Board is satisfied that it is appropriate to continue to adopt the going concern basis in preparing the financial statements.
Related party disclosure and transactions with the Investment Manager
Directors’ responsibility statement
The Disclosure Guidance and Transparency Rules (DTR) 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 International Accounting Standard 34 Interim Financial Reporting; and
- the Interim Management Report together with the Chairman’s Statement and Investment Managers’ 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 Auditor.
The Half Yearly Financial Report was approved by the Board on
FOR AND ON BEHALF OF THE BOARD
Consolidated Statement of Comprehensive Income for the six months ended
Six months ended Six months ended Year ended 31 May 2025 31 May 2024 30 November 2024 (unaudited) (unaudited) (audited) Revenue Capital Total Revenue Capital Total Revenue Capital Total Notes £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 Income from investments held at fair 3 2,626 – 2,626 2,700 – 2,700 4,951 – 4,951 value through profit or loss Other income 3 491 – 491 428 – 428 1,200 – 1,200 --------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- Total income 3,117 – 3,117 3,128 – 3,128 6,151 – 6,151 ========= ========= ========= ========= ========= ========= ========= ========= ========= Net (loss)/profit on investments and derivatives – (18,639) (18,639) – 19,011 19,011 – 18,986 18,986 held at fair value through profit or loss Net profit/ (loss) on – 134 134 – (1) (1) – 25 25 foreign exchange --------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- Total 3,117 (18,505) (15,388) 3,128 19,010 22,138 6,151 19,011 25,162 ========= ========= ========= ========= ========= ========= ========= ========= ========= Expenses Investment 4 (161) (487) (648) (181) (543) (724) (356) (1,069) (1,425) management fees Other operating 5 (219) (3) (222) (240) (4) (244) (511) (9) (520) expenses --------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- Total operating (380) (490) (870) (421) (547) (968) (867) (1,078) (1,945) expenses ========= ========= ========= ========= ========= ========= ========= ========= ========= Net profit/ (loss) on ordinary activities 2,737 (18,995) (16,258) 2,707 18,463 21,170 5,284 17,933 23,217 before finance costs and taxation Finance costs (82) (247) (329) (128) (385) (513) (230) (690) (920) --------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- Net profit/ (loss) on ordinary 2,655 (19,242) (16,587) 2,579 18,078 20,657 5,054 17,243 22,297 activities before taxation Taxation (274) 59 (215) (245) 34 (211) (513) 128 (385) (charge)/credit --------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- Net profit/ (loss) on ordinary 2,381 (19,183) (16,802) 2,334 18,112 20,446 4,541 17,371 21,912 activities after taxation ========= ========= ========= ========= ========= ========= ========= ========= ========= Earnings/(loss) per ordinary 7 2.00 (16.10) (14.10) 1.83 14.17 16.00 3.63 13.87 17.50 share (pence) ========= ========= ========= ========= ========= ========= ========= ========= =========
The total columns of this statement represent the Group’s Statement of Comprehensive Income, prepared in accordance with UK–adopted International Accounting Standards (IAS). The supplementary revenue and capital accounts are both prepared under guidance published by the
The Group does not have any other comprehensive income/(loss) (
Consolidated Statement of Changes in Equity for the six months ended
Called Share up share premium Special Capital Revenue capital account reserve reserves reserve Total Notes £’000 £’000 £’000 £’000 £’000 £’000 For the six months ended 31 May 2025 (unaudited) At 30 November 1,356 69,980 54,812 36,031 5,148 167,327 2024 Total comprehensive (loss)/income: Net (loss)/profit – – – (19,183) 2,381 (16,802) for the period Transaction with owners, recorded directly to equity: Ordinary shares – – (5,460) – – (5,460) repurchased into treasury Share repurchase – – (37) – – (37) costs Dividends 6 – – – – (2,694) (2,694) paid1 --------------- --------------- --------------- --------------- --------------- --------------- At 31 May 2025 1,356 69,980 49,315 16,848 4,835 142,334 ========= ========= ========= ========= ========= ========= For the six months ended 31 May 2024 (unaudited) At 30 November 1,356 69,980 66,100 18,660 6,266 162,362 2023 Total comprehensive income Net profit for – – – 18,112 2,334 20,446 the period Transaction with owners, recorded directly to equity: Ordinary shares – – (7,631) – – (7,631) repurchased into treasury Share repurchase – – (53) – – (53) costs Dividends 6 – – – – (2,891) (2,891) paid2 --------------- --------------- --------------- --------------- --------------- --------------- At 31 May 2024 1,356 69,980 58,416 36,772 5,709 172,233 ========= ========= ========= ========= ========= ========= For the year ended 30 November 2024 (audited) At 30 November 1,356 69,980 66,100 18,660 6,266 162,362 2023 Total comprehensive income Net profit for – – – 17,371 4,541 21,912 the year Transaction with owners, recorded directly to equity: Ordinary shares – – (11,208) – – (11,208) repurchased into treasury Share repurchase – – (80) – – (80) costs Dividends – – – – (5,659) (5,659) paid3 --------------- --------------- --------------- --------------- --------------- --------------- At 30 November 1,356 69,980 54,812 36,031 5,148 167,327 2024 ========= ========= ========= ========= ========= =========
1
4th interim dividend of 1.125p per share for the year ended
2
4th interim dividend of 1.125p per share for the year ended
3
4th interim dividend of 1.125p per share for the year ended
For information on the Company’s distributable reserves, please refer to note 11 below.
Consolidated Statement of Financial Position as at
31 May 31 May 30 November 2025 2024 2024 (unaudited) (unaudited) (audited) Notes £’000 £’000 £’000 Non current assets Investments held at fair value through profit or 12 153,872 188,694 189,752 loss Current assets Other receivables 1,444 484 436 Current tax asset 205 195 193 Cash collateral pledged 801 343 591 with brokers Cash and cash equivalents – 73 3,714 – cash at bank --------------- --------------- --------------- Total current assets 2,450 1,095 4,934 ========= ========= ========= Total assets 156,322 189,789 194,686 ========= ========= ========= Current liabilities Other payables (605) (2,338) (1,364) Derivative financial liabilities held at fair 12 (202) (5) (51) value through profit or loss Cash and cash equivalents 9 (13,181) (15,213) (25,944) – bank overdraft --------------- --------------- --------------- Total current liabilities (13,988) (17,556) (27,359) ========= ========= ========= Net assets 142,334 172,233 167,327 ========= ========= ========= Equity attributable to equity holders Called up share capital 10 1,356 1,356 1,356 Share premium account 11 69,980 69,980 69,980 Special reserve 11 49,315 58,416 54,812 Capital reserves 11 16,848 36,772 36,031 Revenue reserve 11 4,835 5,709 5,148 --------------- --------------- --------------- Total equity 142,334 172,233 167,327 ========= ========= ========= Net asset value per 8 121.81 138.24 137.66 ordinary share (pence) ========= ========= =========
Consolidated Cash Flow Statement for the six months ended
Six months Six months Year ended ended ended 31 May 31 May 30 November 2025 2024 2024 (unaudited) (unaudited) (audited) £’000 £’000 £’000 Operating activities: Net (loss)/profit on ordinary (16,587) 20,657 22,297 activities before taxation1 Add back finance costs 329 513 920 Net loss/(profit) on investments and derivatives held at fair 18,639 (19,011) (18,986) value through profit or loss (including transaction costs) Net (profit)/loss on foreign (134) 1 (25) exchange Sales of investments held at fair value through profit or 108,596 61,484 123,914 loss Purchases of investments held at fair value through profit or (91,204) (56,512) (119,979) loss (Increase)/decrease in other (32) 204 182 receivables (Decrease)/increase in other (759) 253 (55) payables Increase in amounts due from (976) (70) – brokers Increase/(decrease) in amounts – 23 (569) due to brokers Net movement in cash collateral (210) 1,195 947 held with brokers --------------- --------------- --------------- Net cash inflow from operating 17,662 8,737 8,646 activities before taxation ========= ========= ========= Taxation on investment income (227) (276) (448) included within gross income --------------- --------------- --------------- Net cash inflow from operating 17,435 8,461 8,198 activities ========= ========= ========= Financing activities Interest paid (329) (513) (920) Shares repurchased into treasury (5,460) (7,557) (11,208) Share repurchase costs (37) (53) (80) Dividends paid (2,694) (2,891) (5,659) --------------- --------------- --------------- Net cash outflow from financing (8,520) (11,014) (17,867) activities ========= ========= ========= Increase/(decrease) in cash and 8,915 (2,553) (9,669) cash equivalents Effect of foreign exchange rate 134 (1) 25 changes --------------- --------------- --------------- Change in cash and cash 9,049 (2,554) (9,644) equivalents Cash and cash equivalents at (22,230) (12,586) (12,586) start of period/year --------------- --------------- --------------- Cash and cash equivalents at end (13,181) (15,140) (22,230) of period/year ========= ========= ========= Comprised of: Cash at bank – 73 3,714 Bank overdraft (13,181) (15,213) (25,944) --------------- --------------- --------------- (13,181) (15,140) (22,230) ========= ========= =========
1
Dividends and interest received in cash during the year amounted to £2,106,000 and £230,000 (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.
The principal activity of the subsidiary,
2. Basis of preparation
The half yearly financial statements for the period ended
Insofar as the Statement of Recommended Practice (SORP) for investment trust companies and venture capital trusts, issued by the
The Directors, having considered the nature and liquidity of the portfolio, the Company’s investment objective, the continuation vote proposals coming up at the forthcoming Annual General Meeting in
Adoption of new and amended International Accounting Standards and interpretations:
IAS 1 – Classification of liabilities as current or non current
(effective
IAS 1 – Non current liabilities with covenants
(effective
The amendment of these standards did not have any significant impact on the Company.
Relevant International Accounting Standards that have yet to be adopted:
IAS 21 – Lack of exchangeability
(effective
IFRS 18 – Presentation and disclosure in financial statements
(effective
None of the standards that have been issued, but are not yet effective, are expected to have a material impact on the Company.
3. Income
Six months Six months Year ended ended ended 31 May 31 May 30 November 2025 2024 2024 (unaudited) (unaudited) (audited) £’000 £’000 £’000 Investment income: UK dividends 625 654 1,184 UK stock dividends – – 128 Fixed income 295 332 505 Overseas dividends 1,539 1,560 2,835 Overseas special dividends 167 154 299 --------------- --------------- --------------- Total investment income 2,626 2,700 4,951 ========= ========= ========= Other income: Bank interest 6 2 4 Interest on collateral received 8 8 32 Option premium income 477 418 1,164 --------------- --------------- --------------- Total other income 491 428 1,200 ========= ========= ========= Total 3,117 3,128 6,151 ========= ========= =========
During the period, the Group received option premium income in cash totalling £477,000 (six months ended
Option premium income is amortised evenly over the life of the option contract and accordingly, during the period, option premiums of £477,000 (six months ended
At
Dividends and interest received in cash during the period amounted to £2,106,000 and £230,000 (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 31 May 2025 31 May 2024 30 November 2024 (unaudited) (unaudited) (audited) Revenue Capital Total Revenue Capital Total Revenue Capital Total £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 Investment management 163 489 652 181 543 724 356 1,069 1,425 fee Investment management (2) (2) (4) – – – – – – fee rebate --------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- Total 161 487 648 181 543 724 356 1,069 1,425 ========= ========= ========= ========= ========= ========= ========= ========= =========
The investment management fee is levied at 0.80% of gross assets per annum. Gross assets for the purposes of calculating the management fee equate to the value of the portfolio’s gross assets held on the relevant date as valued on the basis of applicable accounting policies, less the value of any investments in in-house funds.
The fee is allocated 25% to the revenue account and 75% to the capital account of the Consolidated Statement of Comprehensive Income. There is no additional fee for company secretarial and administration services.
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. Up to
The amount of rebate accrued for the six months ended
5. Other operating expenses
Six months Six months Year ended ended ended 31 May 31 May 30 November 2025 2024 2024 (unaudited) (unaudited) (audited) £’000 £’000 £’000 Allocated to revenue: Custody fee 3 4 7 Auditor’s remuneration – audit 26 28 51 services1 Registrars’ fee 19 17 32 Directors’ emoluments 69 75 143 Broker fees 5 13 25 Depositary fees 7 8 16 Marketing fees 15 15 80 Printing and postage fees 20 21 40 Legal and professional fees 12 12 24 Bank charges 10 7 14 Stock exchange listings fees 5 5 11 Other administration costs 28 35 68 --------------- --------------- --------------- Total revenue expenses 219 240 511 ========= ========= ========= Allocated to capital: Custody transaction charges2 3 4 9 --------------- --------------- --------------- Total 222 244 520 ========= ========= =========
1
No non-audit services were provided by the Company’s auditors in the six months ended
2
For the six months ended
The transaction costs incurred on the acquisition of investments amounted to £113,000 for the six months ended
6. Finance costs
Six months ended Six months ended Year ended 31 May 2025 31 May 2024 30 November 2024 (unaudited) (unaudited) (audited) Revenue Capital Total Revenue Capital Total Revenue Capital Total £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 Interest payable – 82 247 329 128 385 513 230 690 920 bank overdraft --------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- Total 82 247 329 128 385 513 230 690 920 ========= ========= ========= ========= ========= ========= ========= ========= =========
Finance costs for the Company are charged 25% to the revenue account and 75% to the capital account of the Consolidated Statement of Comprehensive Income. Finance costs incurred by the subsidiary company are charged 100% to the revenue account of the Consolidated Statement of Comprehensive Income.
7. Dividends
The Board’s current dividend target is to declare quarterly dividends of
A first interim dividend for the year ending
The Directors have declared a second interim dividend for the year ending
The third and fourth interim dividends will be declared in
Dividends on equity shares paid during the period were:
Six months Six months Year ended ended ended 31 May 31 May 30 November 2025 2024 2024 (unaudited) (unaudited) (audited) £’000 £’000 £’000 2nd interim dividend of 1.125p per share for the year ended 30 – – 1,396 November 2024 (2023: 1.100p) 3rd interim dividend of 1.125p per share for the year ended 30 – – 1,373 November 2024 (2023: 1.100p) 4th interim dividend of 1.125p per share for the year ended 30 1,365 1,468 1,468 November 2024 (2023: 1.125p) 1st interim dividend of 1.125p per share for the year ending 30 1,329 1,423 1,422 November 2025 (2024: 1.125p) --------------- --------------- --------------- Accounted for in the financial 2,694 2,891 5,659 statements ========= ========= =========
8. Earnings and net asset value per ordinary share
Revenue, 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 31 May 31 May 30 November 2025 2024 2024 (unaudited) (unaudited) (audited) Net revenue profit attributable 2,381 2,334 4,541 to ordinary shareholders (£’000) Net capital (loss)/profit attributable to ordinary (19,183) 18,112 17,371 shareholders (£’000) --------------- --------------- --------------- Total (loss)/profit attributable (16,802) 20,446 21,912 to ordinary shareholders (£’000) ========= ========= ========= Total shareholders’ funds 142,334 172,233 167,327 (£'000) ========= ========= ========= The weighted average number of ordinary shares in issue during the period on which the earnings 119,126,516 127,790,523 125,204,148 per ordinary share was calculated was: The actual number of ordinary shares in issue at the end of the period on which the net 116,844,497 124,586,194 121,552,497 asset value per ordinary share was calculated was: Calculated on weighted average number of ordinary shares Revenue earnings per share 2.00 1.833.63 (pence) – basic and diluted Capital (loss)/earnings per share (pence) – basic and (16.10) 14.17 13.87 diluted --------------- --------------- --------------- Total (loss)/earnings per share (14.10) 16.0017.50 (pence) – basic and diluted ========= ========= =========
As at As at As at 31 May 31 May 30 November 2025 2024 (unaudited) (unaudited) 2024 (audited) Net asset value per share (pence) 121.81 138.24 137.66 Ordinary share price (pence) 111.00 121.50 121.00 ========= ========= =========
There were no dilutive securities at the period end (
9. Reconciliation of liabilities arising from financing activities
Six months Six months Year ended ended 31 May ended 31 May 30 November 2025 2024 2024 (unaudited) (unaudited) (audited) £’000 £’000 £’000 Debt arising from financing activities at beginning of the period/year Bank overdraft 25,944 17,862 17,862 Cash flows: Movement in overdraft (12,763) (2,649) 8,082 Debt arising from financing activities at end of the period/year Bank overdraft 13,181 15,213 25,944 ========= ========= =========
The Group has an overdraft facility of the lower of £40 million or 20% of the Group’s net assets (
10. 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 of1 pence each: At 30 November 131,386,194 4,200,000 135,586,194 1,356 2023 (audited) Ordinary shares repurchased into (6,800,000) 6,800,000 – – treasury At 31 May 2024 124,586,194 11,000,000 135,586,194 1,356 (unaudited) Ordinary shares repurchased into (3,033,697) 3,033,697 – – treasury At 30 November 121,552,497 14,033,697 135,586,194 1,356 2024 (audited) Ordinary shares repurchased into (4,708,000) 4,708,000 – – treasury --------------- --------------- --------------- --------------- At 31 May 2025 116,844,497 18,741,697 135,586,194 1,356 (unaudited) ========= ========= ========= =========
During the period ended
Since
11. Reserves
The share premium account of £69,980,000 (
As at
12. 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 Group 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 Consolidated Statement of Financial Position at their fair value (investments and derivatives) or at an amount which is a reasonable approximation of fair value (due from brokers, dividends and interest receivable, due to brokers, accruals, cash at bank and bank overdrafts). IFRS 13 requires the Group 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 Group are explained in the accounting policies note 2(h) as set out on page 101 of the Group’s 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 Group 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.
Valuation techniques used for non-standardised financial instruments such as options, currency swaps and other over-the-counter derivatives include the use of comparable recent arm’s length transactions, reference to other instruments that are substantially the same, discounted cash flow analysis, option pricing models and other valuation techniques commonly used by market participants making the maximum use of market inputs and relying as little as possible on entity specific inputs.
Over-the-counter derivative option contracts have been classified as Level 2 investments as their valuation has been based on market observable inputs represented by the underlying quoted securities to which these contracts expose the Group.
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 measurement of Level 3 assets or liabilities.
Fair values of financial assets and financial liabilities
The table below sets out fair value measurements using the IFRS 13 fair value hierarchy.
Financial assets/ (liabilities) at Level 1 Level 2 Level 3 Total fair value £’000 £’000 £’000 £’000 through profit or loss at 31 May 2025 (unaudited) Assets: Equity 146,746 666 – 147,412 investments Fixed income – 4,125 2,335 6,460 investments Liabilities: Derivative financial (202) – – (202) instruments – written options --------------- --------------- --------------- --------------- Total 146,544 4,791 2,335 153,670 ========= ========= ========= =========
Financial assets/ (liabilities) at Level 1 Level 2 Level 3 Total fair value £’000 £’000 £’000 £’000 through profit or loss at 31 May 2024 (unaudited) Assets: Equity 186,532 – – 186,532 investments Fixed income – 2,162 – 2,162 investments Liabilities: Derivative financial (5) – – (5) instruments – written options --------------- --------------- --------------- --------------- Total 186,527 2,162 – 188,689 ========= ========= ========= =========
Financial assets/ (liabilities) at Level 1 Level 2 Level 3 Total fair value £’000 £’000 £’000 £’000 through profit or loss at 30 November 2024 (audited) Assets: Equity 184,586 – – 184,586 investments Fixed income – 5,166 – 5,166 investments Liabilities: Derivative financial (51) – – (51) instruments – written options --------------- --------------- --------------- --------------- Total 184,535 5,166 – 189,701 ========= ========= ========= =========
The investment in Vale debentures has been classified as Level 2 in the tables above for all periods as these are priced using secondary market pricing information provided by the
A reconciliation of fair value measurement in Level 3 is set out below.
Level 3 financial assets fair value through profit or loss
Six months Six months ended ended Year ended 31 May 31 May 30 November 2025 2024 2024 £’000 £’000 £’000 Opening fair value – – – Additions at cost 2,190 – – Total profit or loss included in net profit/(loss) on investments in the Consolidated Statement of 145 – – Comprehensive Income - assets held at the end of the period/year: --------------- --------------- --------------- Closing balance 2,335 – – ========= ========= =========
The Level 3 valuation process and techniques used are explained in the accounting policies in note 2(h) on page 101 of the Company’s Annual Report and Financial Statements for the year ended
The Level 3 investments as at
In arriving at the fair value of this investment, the key inputs are the underlying yield to maturity and volatility in the listed equity stock price.
The Level 3 valuation process and techniques used by the Company are explained in the accounting policies in notes 2(h) and 2(p) of the Company’s Annual Report and Financial Statements for the year ended
Quantitative information of significant unobservable inputs – Level 3 – Group and Company
The significant unobservable inputs used in the fair value measurement categorised within Level 3 of the fair value hierarchy, together with an estimated quantitative sensitivity analysis, as at
As at Range of 31 May weighted Reasonable 2025 Valuation Unobservable average possible Impact on £’000 technique input inputs shift¹ +/- fair value Hybrid of yield to Yield to maturity and maturity 16.58% – 17.58% 0.50% £21,000 embedded Volatility in Abaxx conversion listed equity Technologies 2,335 option value stock price 5.00% £60,000 convertible 45%-55% debentures Listing suspended – valued at Gazprom nominal RUB equity – 0.01 shares --------------- --------------- --------------- --------------- --------------- --------------- Total 2,335 ========= ========= ========= ========= ========= =========
As at Range of 31 May weighted Reasonable 2024 Valuation Unobservable average possible Impact on £’000 technique input inputs shift¹ +/- fair value Listing suspended – valued at Gazprom nominal RUB equity – 0.01 shares --------------- --------------- --------------- --------------- --------------- --------------- Total – ========= ========= ========= ========= ========= =========
As at Range of 30 November weighted Reasonable 2024 Valuation Unobservable average possible Impact on £’000 technique input inputs shift¹ +/- fair value Listing suspended – valued at Gazprom nominal RUB equity – 0.01 shares --------------- --------------- --------------- --------------- --------------- --------------- Total – ========= ========= ========= ========= ========= =========
1 The sensitivity analysis refers to a percentage amount added or deducted from the input and the effect this has on the fair value.
The sensitivity impact on fair value is calculated based on the sensitivity estimates based on range of weighted average inputs. Significant increases/(decreases) in unobservable inputs in isolation would result in a significantly higher/(lower) fair value measurement. Generally, a change in the assumption made for the estimated value is accompanied by a directionally similar change in the unobservable inputs.
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.
The Company may invest no more than 10% of its net asset value in investments held through Stock Connect as set out on page 122 of the Group’s Annual Report and Financial Statements for the year ended
13. Related party disclosure
Directors’ emoluments
The Board consists of four 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. The Chairman receives an annual fee of £43,500, the Chairman of the
As at
At the period end, interests of the Directors in the ordinary shares of the Company are as set out below:
31 May 31 May 30 November 2025 2024 2024 Mr Adrian Brown (Chairman) 35,000 35,000 35,000 Mr Andrew Robson 35,000 35,000 35,000 Mrs Anne Marie Cannon 15,000 15,000 15,000 Mrs Carole Ferguson 14,505 14,505 14,505 ========= ========= =========
Since the period end and up to the date of this report there have been no changes in Directors’ 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 affiliates who are not of held by Related affiliates of BlackRock Group or BlackRock Funds BlackRock Group or BlackRock, Inc. BlackRock, Inc. As at 31 May 2025 0.70 n/a n/a As at 30 November 0.70 n/a n/a 2024 As at 31 May 2024 0.75 n/a n/a ========= ========= =========
14. 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. Up to
In addition to the above services, BIM (
The ultimate holding company of the Manager and the Investment Manager is
15. Capital commitments and contingent liabilities
The Group had no capital commitments at
16. 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
17. Annual results
The Board expects to announce the annual results for the year ending
Copies of the annual results announcement can be obtained from the Secretary on 020 7743 3000 or at
cosec@blackrock.com
. The Annual Report and Financial Statements should be available at the beginning of
For further information please contact:
Sarah Beynsberger, Director Investment Trusts - 020 7743 3000
Press enquires:
E-mail: BlackRockInvestmentTrusts@lansons.com
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