BlackRock Greater Europe Investment Trust Plc - Half-year Financial Report
LEI: 5493003R8FJ6I76ZUW55
Half Yearly Financial Report for the six months ended
Performance record
As at As at Change
28 February 2026 31 August 2025 %
Net assets (£’000)1 587,120 569,079 3.2
Net asset value per 635.95 598.05 6.3
ordinary share (pence)
Ordinary share price 605.00 570.00 6.1
(pence)
FTSE World Europe ex UK 2885.79 2461.90 17.2
Index³
Discount to cum income net 4.9% 4.7%
asset value2
========== ==========
For the six months For the six months
Performance (with ended ended
dividends reinvested)
28 February 2026 28 February 2025
Net asset value 7.3% 0.1%
per share2
Ordinary share 7.2% 0.1%
price2
FTSE World Europe 17.2% 4.6%
ex UK Index³
========== ==========
For the For the
period since period since
Performance since inception4 (with
dividends reinvested) inception to inception to
28 February 2026 28 February 2025
Net asset value per share2 804.2% 798.3%
Ordinary share price2 772.2% 748.5%
FTSE World Europe ex UK Index3 629.7% 486.9%
========== ==========
For the six For the six
Change
months ended months ended
%
28 February 2026 28 February 2025
Revenue
Net profit/
(loss) after taxation 1,466 (43) +3,509.3
(£’000)
Revenue
earnings/(loss) per 1.57 (0.04) +4,025.0
ordinary share
(pence)5
Dividends
(pence)
Interim 1.75 1.75 -
dividend
========== ========== ==========
1 The change in net assets reflects payments for shares repurchased into treasury, portfolio movements and dividends paid.
2 Alternative Performance Measures, see Glossary contained within the Half Yearly Financial Report.
3 Reference index.
4
5 Further details are given in the Glossary contained within the Half Yearly Financial Report.
Chairman’s Statement
I am pleased to present the Company’s Half Yearly Financial Report for the six months to
Overview
The Company’s Net Asset Value (NAV) significantly underperformed the reference index (the FTSE World Europe ex
As shareholders are aware, the company pursues a long-term investment approach based on investing in companies characterised by quality and enduring growth. Consequently, the background has been difficult for an unusually extended period. Since the Company launched in
The Board continues to support the quality growth strategy being pursued by the manager. Having reflected on more recent poor performance, and after discussion with the Board, our Manager has evolved the investment approach to increase focus on company valuations, whilst continuing to have a bias towards quality companies with good long-term growth potential. The Board believes this more nuanced approach is in the best interests of shareholders and that, overall, it should help to dampen portfolio volatility. To assist in this implementation,
Since the period end to
Change in Portfolio Manager
It was with sadness that the Board announced on
Benjamin has a strong track record built on a quality growth style, similar to that employed by the Company, seeking quality companies which can grow over the long term, while sustaining attractive economics thanks to robust competitive advantages. Benjamin’s investment approach is expected to bring an increased valuation awareness, as well as appreciation of businesses or industries where returns are improving – thanks to factors such as operational transformation, improved capital allocation or market consolidation. This broadens the investable universe, allowing for more valuation discipline while maintaining a strong focus on quality. The Board supports this approach and believe it aligns well with the goal of dampening fund volatility and enhancing returns for our shareholders over time.
Revenue earnings and dividends
The Company’s revenue return per share for the six-month period ended
The Board has declared an interim dividend of 1.75p (2025: 1.75p) per share. The dividend will be paid on
The Company has consistently grown its regular dividends in all the 20 financial periods since its inception on
Management of share rating
The Board monitors the discount to NAV closely and receives regular updates from the Manager and our corporate broker,
As part of this approach, the Company repurchased 2,834,395 shares (representing 3.1% of the issued share capital as
All shares were bought back at a discount to the prevailing NAV and the buy backs were therefore accretive to existing shareholders. All shares bought back have been placed in treasury for future reissue.
Tender offers
The Directors of the Company have the discretion to make semi-annual tender offers at the prevailing NAV less 2%, for up to 20% of the issued share capital in May and November of each year. The Board announced on
With this in mind and noting that the Company’s discount was trading at 6.3% on
The Board believes that the share buyback activity undertaken in the period has been beneficial in reducing the volatility of our share rating and maintaining the discount within the peer group range. It will continue to monitor the Company’s discount and may use the Company’s share buyback powers to ensure that the share price does not go to an excessive discount to the underlying NAV. The Board remains committed to supporting the share price to a narrow discount or premium to its NAV.
Board composition
Having served as a Director of the Company since
Outlook
The outlook for European equity markets has become more cautious following the outbreak of conflict in the
Higher energy prices present a challenge for
Near-term volatility is likely to persist, with market direction depending on the duration of the
Chairman
Investment Manager’s Report
Market review
The Company’s share price rose 7.2% and underlying NAV rose 7.3% over the six months to
Over the past six months, NAV performance has lagged the strongly rising market and we are disappointed with the relative performance of the portfolio over the period. While European equities moved higher overall, beneath the surface we have experienced a difficult environment for higher-quality companies. Stocks with stronger returns on invested capital, healthier balance sheets, higher margins and stronger cash flow profiles – businesses we have often preferred in the portfolio and which have been long-term strong performers in European markets – have generally seen significant declines in valuation, in some cases creating a marked disconnect between company earnings and share price performance. By contrast, lower-quality stocks have seen valuations rise.
This valuation re-rating – where investors have been willing to pay higher valuations for lower-quality businesses – may be expected during periods of strong economic growth, rising inflation or higher bond yields. Instead, it has occurred against a relatively stable economic backdrop. We have witnessed significant swings within the market without any clear change in the economic cycle. In some cases, share price movements have become disconnected from company fundamentals and have instead been driven by broader market trends, creating challenging conditions for active managers. Even so, we are disappointed with the portfolio’s relative performance over the period. In response, we have made selective adjustments to the portfolio and continue to identify attractive investment opportunities despite the uncertain external backdrop. The portfolio remains positioned in line with these opportunities and evolving market conditions.
We see two primary drivers dictating the market dynamics over the past six months. The first has been concerns about the long-term outlook for certain business models as Artificial Intelligence (AI) advances. This became the dominant market theme during the period, leading to stark winners and losers in share price performance. Companies linked to semiconductors, power and data-centre infrastructure performed strongly as perceived AI beneficiaries, while software and information services companies weakened on fears of disruption. As these concerns intensified, investors rotated into what became known as the “HALO” trade (Heavy Asset, Low Obsolescence) – favouring businesses seen as less vulnerable to technological disruption, such as utilities, infrastructure and industrial companies with significant physical assets.
Secondly, open-ended funds investing in quality global companies have experienced sustained investor outflows (>
Despite a strong rally in European equity markets, company results over the period showed only modest earnings growth, with banks making the largest contribution. Earnings growth in
Portfolio performance – contributors and detractors:
In a market with little tolerance for disappointing updates, share prices came under pressure as a result of disappointing company guidance. Companies that failed to meet investor expectations, or provide enough reassurance about future performance, often saw sharp share price declines. This was a common theme among several weaker contributors to performance during the period, including Adyen, Belimo, ChemoMetec and Ferrari.
Adyen was the largest individual detractor from performance during the period, as the market reacted negatively to changes in its guidance for 2026. The company reduced its expected net revenue growth range from the low to mid-20% range in October to 20–22% in February. We believe Adyen has struggled to manage investor expectations during periods of market volatility and, in a market highly sensitive to any disappointment, this led to a sharp share price reaction. Communication from management also became less clear, making the investment case more difficult to assess and reducing our confidence in the company’s execution. As a result, we exited the position.
Despite reporting very strong results, including 23% organic sales growth in 2025 and a 36% return on capital employed, Belimo’s share price fell over the period. The market reacted negatively to the company’s 2026 guidance, although expectations for mid-teens revenue growth and margins above 20% were broadly in line with market forecasts. We are familiar with Belimo management taking a conservative approach to guidance before later upgrading expectations and we remain confident in the company’s long-term execution. As a result, we used the share price weakness as an opportunity to add to the position.
The portfolio’s position in ChemoMetec detracted from performance following weak results. These were partly caused by the US government shutdown, which delayed activity at certain laboratories and research institutions, slowing customer purchasing and validation processes. Results also reflected a previously identified slowdown in instrument sales, as customers take time to validate new products before broader adoption. Over the longer term, however, a new agreement with Roche appears to represent a significant growth opportunity, which we believe is not yet fully reflected in the company’s valuation. In addition, industry consolidation from three major players to two should support stronger growth over the next five years.
Ferrari’s share price fell following a disappointing capital markets day. The company’s outlook was weaker than expected and, although management has historically taken a conservative approach to guidance, it raised questions about Ferrari’s longer-term growth potential. In recent years, growth has been supported by strong demand for personalised vehicle features, which has improved pricing and profitability, but this trend is expected to moderate. More cautious communication from management led us to reassess the company’s valuation and, ultimately, we exited the position during the period.
RELX , Nemetschek and SAP were all caught up in the ‘AI-loser’ narrative, despite generally reporting strong financial results. An outlier was SAP, where growth in its cloud backlog disappointed against elevated market expectations following optimistic comments from management in December. This has since been attributed to some more complex deals being delayed to 2026.
We continue to believe that the unique data bases these companies hold make the barriers to AI disruption high. However, we must be pragmatic and recognise the uncertainty that comes with rapid technological change. For example, AI may eventually be able to replicate some of the services that companies currently provide alongside their data and software offerings. We are on high alert to any impacts this may have on business performance, although we have not yet seen evidence of this.
Equally, companies have so far been unable to fully reassure investors that they are protected from potential AI disruption. As a result, market concerns and share price volatility have remained elevated. We have therefore reduced exposure to these holdings – trimming positions in RELX and SAP and exiting Nemetschek – as, despite our positive long-term view on the businesses, we currently see limited catalysts to change broader market sentiment.
BE Semiconductor was one of the strongest contributors to performance, as semiconductor companies benefited from rising demand linked to AI investment. Customers are increasing production capacity to support growing AI needs, which has tightened supply in parts of the semiconductor market and supported demand for equipment manufacturers. A positive trading update from BE Semiconductor showed very strong order growth, with orders rising 43% quarter-on-quarter and 105% year-on-year. Sentiment across the sector also improved after ASML reported record quarterly bookings of €13.2 billion in the fourth quarter of 2025, well ahead of market expectations of €6.95 billion. We increased the portfolio’s holding in ASML over the period, as we believe the semiconductor industry is entering a new growth cycle with potential for earnings to exceed current expectations.
Not holding Novo Nordisk benefited relative performance after results from its latest Cagrisema obesity drug trial disappointed the market. The trial, which compared the treatment directly against Eli Lilly’s Zepbound, failed to show superior results. This has raised questions over the market’s long-term sales expectations for the drug, while plans for further trials at higher doses still leave considerable uncertainty.
European banks in the portfolio, including
European defence companies underperformed the market towards the end of 2025, although this reversed in 2026 as geopolitical tensions rose. The portfolio’s position in Kongsberg Gruppen contributed positively to returns over the period. While geopolitical developments can create short-term volatility in defence stocks, we remain focused on the long-term investment case for the sector, which is based on Europe’s need to increase defence spending and strengthen military capabilities over time, rather than on any single current conflict.
Outlook
We ended the semi-annual period with a cautiously optimistic outlook for European equities. The broader economic backdrop remained relatively stable, while domestic conditions in countries such as
Even so, our bottom-up company analysis continues to identify attractive opportunities within European markets and we have adjusted the portfolio accordingly. The rapid adoption of AI is benefitting not only semiconductor companies, but also those necessary in rolling out data centres at such a high rate. The large-scale investment required for AI infrastructure is supporting demand for companies supplying data-centre equipment and power grid infrastructure, as growing AI usage increases electricity demand.
With the consumer remaining under pressure and key brands facing pricing challenges, we believe it is important to look beyond traditional consumer defensive sectors for resilient earnings. Instead, we have favoured Industrials supplying critical services, with recurring income often through aftermarket and maintenance programmes. This includes the civil aerospace industry where, irrespective of higher jet fuel prices and near-term air traffic, the long-term requirement for servicing as engines age means maintenance trends will ramp up into outer years and profits are yet to be recognised.
Since the appointment of
Ten largest investments
Together, the Company’s ten largest investments represented 44.7% of the Company’s portfolio as at
1
ASML
(2025: 22nd)
Technology company
Market value: £37,603,000
Share of investments: 6.2%
ASML is a Dutch semiconductor equipment manufacturer and the sole supplier of extreme ultraviolet lithography systems used in advanced chip production. The company is a key beneficiary of structurally rising semiconductor complexity, with demand increasingly supported by a strengthening memory cycle alongside continued investment from leading foundry customers. As industry conditions have improved, order momentum and backlog visibility have strengthened, leaving the company well positioned to deliver sustained long
-
term growth underpinned by its unique technology and critical role in global semiconductor manufacturing.
2
Safran
(2025: 1st)
Industrials company
Market value: £35,130,000
Share of investments: 5.7%
Safran is a French multinational supplier of systems and equipment for aerospace, defence and security. Operating in an oligopolistic market, this industry has emerged from a heavy investment period in new planes and engines and we see Safran as well placed to benefit from continued strength in its best-in-class after-market business, as well as strong execution in its LEAP engine program which should drive growth for the next decade. Additionally, the company stands to gain from rising defence spending across
3
Schneider Electric
(2025: 5th)
Industrials company
Market value: £30,165,000
Share of investments: 4.9%
Schneider Electric is a French multinational company specialising in digital automation and energy management across various industries globally. The company is a key beneficiary of structural investment in energy transition solutions, with demand driven by three major trends: energy efficiency, automation and digitisation. We expect sustained growth in its core markets, supported by government programs promoting green initiatives and strong demand from data centres, particularly as AI infrastructure expands. Schneider Electric is a well-managed business offering compounding growth and attractive returns on capital.
4
Compagnie Financière Richemont
(2025: 9th)
Consumer Discretionary company
Market value: £28,373,000
Share of investments: 4.6%
Compagnie Financière Richemont (Richemont) is a Swiss luxury goods company best known for its high-end jewellery and watch brands, including Cartier and
5
BE Semiconductor
(2025: 17th)
Technology company
Market value: £25,839,000
Share of investments: 4.2%
BE Semiconductor is a
6
Kone
(2025: 16th)
Industrials company
Market value: £24,446,000
Share of investments: 4.0%
Kone is a Finnish provider of elevators, escalators and related services, with a growing focus on its higher
-
margin service and modernisation activities. Order momentum remains strong, with growth supported by improving trends across maintenance and modernisation, while operational execution continues to underpin stable margins. The company is well positioned to benefit from resilient urbanisation demand and a gradually improving end
-
market backdrop, supported by its global installed base and service franchise.
7
Belimo
(2025: 4th)
Industrials company
Market value: £24,110,000
Share of investments: 3.9%
Belimo is a Swiss specialist in heating, ventilation and air conditioning (HVAC) solutions. Their leading technology focuses on reducing the energy consumption and carbon emission of commercial buildings, such as data centres where there is strong growth from the demand for cooling systems for NVIDIA’s Blackwell chips. Belimo’s technological niches mean the company is well positioned to continue outpacing the wider HVAC industry and benefit from hyperscalers continuing to increase spending on AI projects.
8
MTU Aero Engines
(2025: 15th)
Industrials company
Market value: £23,269,000
Share of investments: 3.8%
MTU Aero Engines is a German aircraft engine manufacturer specialising in the development, production and maintenance of civil and military aero engines. The company is well positioned to benefit from structurally strong civil aerospace demand and an expanding installed base, which supports a growing, high-value aftermarket opportunity through maintenance and shop visits. Continued programme execution and improving cash conversion over time underpin the investment case, alongside exposure to long-duration growth in next-generation engine platforms.
9
Lonza Group
(2025: 10th)
Health Care company
Market value: £23,152,000
Share of investments: 3.8%
Lonza Group (Lonza) is a Swiss life-sciences company. Lonza has established itself as one of the leading manufacturers of high-end biological drugs as well as cell and gene therapy. Its competitive edge lies in the complexity of its production processes, which few peers can match, reinforced by high barriers to entry such as stringent
10
KBC Groep
(2025: 7th)
Financials company
Market value: £21,687,000
Share of investments: 3.6%
KBC Groep (KBC) is a Belgian universal multi-channel bank-insurer, focusing on private clients and small and medium-sized enterprises. KBC is a quality bank which changed its focus following the Global Financial Crisis, building resilience through conservative capital positions. KBC delivers above cost of capital returns in its developed markets, while its Central and
All percentages reflect the value of the holding as a percentage of total investments.
Portfolio analysis
as at
Central
Eastern Portfolio Portfolio FTSE
All numbers Europe World
in percentages. France Switzerland Ireland Germany Sweden Netherlands Denmark Belgium Spain Italy 28.02.26 31.08.25 Europe
& ex UK
Other* 28.02.26
Basic – –
Materials – – – – – – – – 3.1 3.1 6.1 3.7
Consumer 4.6 –
Discretionary 6.1 – – – – – 2.8 – 13.5 13.5 14.7 8.8
Consumer – – –
Staples – – – – – – – – – – 6.2
Energy – – –
– – – – – – – – – – 4.4
Financials –
– 3.4 – – 2.8 – 3.6 2.7 2.7 – 17.2 12.9 23.9
Health Care –
– 4.5 – – – 2.0 – – – – 6.5 7.7 13.1
Industrials
17.2 3.9 3.1 3.8 3.1 2.1 – – – – – 40.1 38.9 20.8
Technology
– 0.5 – 2.6 – 10.4 – – – – – 16.2 19.3 9.6
Real Estate – –
– – – – – – – – – – 0.4 1.1
Utilities – – –
3.4 – – – – – – – – 3.4 4.9
– – –
Telecommunications – – – – – – – – – – 3.5
------ ------- ------- ------- ------- ------ ------ ------ ------ ------ ------ ------ ------ ------
Portfolio
28.02.26 26.7 13.5 6.5 6.4 3.1 15.3 2.0 3.6 5.5 2.7 – 100.0 – –
==== ====
==== ==== ==== ==== ==== ==== ==== ==== ==== ==== ==== ====
Portfolio
31.08.25 20.0 16.2 6.0 13.6 2.9 12.9 2.7 4.4 2.2 4.9 – – 100.0 100.0
==== ====
==== ==== ==== ==== ==== ==== ==== ==== ==== ==== ==== ====
FTSE World
Europe ex UK Index 19.7 18.9 0.7 17.6 6.9 9.9 2.9 2.1 7.3 6.6 3.4 – 100.0 –
28.02.26
==== ====
==== ==== ==== ==== ==== ==== ==== ==== ==== ==== ==== ====
Percentages in the table above are a % of total investments. Based on country of listing.
*More details regarding the country of listing can be found in the table on pages 15 and 16 of the Half Yearly Financial Report.
Investments
as at
Market
Country % of
value
of listing investments
£’000
Industrials
Safran France 35,130 5.7
Schneider France 30,165 4.9
Electric
Kone Finland 24,446 4.0
Belimo 24,110 3.9
Switzerland
MTU Aero Germany 23,269 3.8
Engines
Kingspan Ireland 19,035 3.1
Assa Abloy Sweden 18,969 3.1
Legrand France 18,006 3.0
Kongsberg Norway 17,955 2.9
Gruppen
Thales France 13,193 2.2
Ferrovial 12,850 2.1
Netherlands
SPIE France 8,843 1.4
------------- -------------
245,971 40.1
Financials
KBC Groep Belgium 21,687 3.6
Allied Ireland 21,041 3.4
Irish Banks
ABN AMRO 17,133 2.8
Bank Netherlands
Intesa Italy 16,677 2.7
Sanpaolo
Caixabank Spain 16,228 2.7
Erste Group Austria 12,479 2.0
Bank
Sberbank* Russia 1 –
------------- -------------
105,246 17.2
Technology
ASML 37,603 6.2
Netherlands
BE 25,839 4.2
Semiconductor Netherlands
RELX** United 16,346 2.7
Kingdom
SAP Germany 15,970 2.6
SMG Swiss 3,260 0.5
Marketplace Group Switzerland
------------- -------------
99,018 16.2
Consumer
Discretionary
Compagnie
Financière Switzerland 28,373 4.6
Richemont
Inditex Spain 16,928 2.8
Hermès France 15,939 2.6
L’Oréal France 12,446 2.0
LVMH France 9,377 1.5
------------- -------------
83,063 13.5
Health Care
Lonza Group 23,152 3.8
Switzerland
ChemoMetec Denmark 12,376 2.0
Straumann 4,220 0.7
Switzerland
------------- -------------
39,748 6.5
Utilities
Engie France 20,540 3.4
------------- -------------
20,540 3.4
Basic
Materials
Linde*** United 19,261 3.1
States
------------- -------------
19,261 3.1
Energy
Lukoil* Russia – –
------------- -------------
Total 612,847 100.0
investments
======= =======
* The investments in Sberbank and Lukoil have been fair valued to a nominal value of £0.01 due to sanctions imposed on
** RELX is listed in the
*** Linde is listed in the US but the business is historically rooted in
All investments are in ordinary shares unless otherwise stated. The total number of investments held at
Industry classifications in the table above are based on the Industrial Classification Benchmark standard for categorisation of companies by industry and sector.
As at
Interim Management Report and Responsibility Statement
The Chairman’s Statement and the Investment Manager’s Report above give details of the important events which have occurred during the period and their impact on the financial statements.
Principal risks and uncertainties
The principal risks faced by the Company can be divided into various areas as follows:
-- Counterparty;
-- Investment performance;
-- Legal and regulatory compliance;
-- Market;
-- Operational;
-- Financial; and
-- Marketing.
The Board reported on the principal risks and uncertainties faced by the Company in the Annual Report and Financial Statements for the year ended
In the view of the Board, there have not been any changes to the fundamental nature of the principal risks and uncertainties since the previous report and these are equally applicable to the remaining six months of the financial year as they were to the six months under review.
Going concern
The Directors, having considered the nature and liquidity of the portfolio, the Company’s investment objective and the Company’s projected income and expenditure, are satisfied that the Company has adequate resources to continue in operational existence for the foreseeable future and is financially sound. The Board remains mindful of heightened geopolitical and political uncertainty arising from ongoing international conflicts, including military conflict in the
The Company has a portfolio of investments which are predominantly readily realisable and is able to meet all of its liabilities from its assets and income generated from these assets. Accounting revenue and expense forecasts are maintained and reported to the Board regularly and it is expected that the Company will be able to meet all its obligations. The Investment Manager generally aims to be fully invested and it is anticipated that gearing will not exceed 15% of net asset value at the time of drawdown of the relevant borrowings. Borrowings under the overdraft facility shall at no time exceed £75 million or 15% of the Company’s net asset value (whichever is lower) and this covenant was complied with during the period. At
Related party disclosure and transactions with the Manager
Directors’ responsibility statement
The Disclosure Guidance and Transparency Rules of the
The Directors confirm to the best of their knowledge that:
-- the condensed set of financial statements contained within the
Half Yearly Financial Report has been prepared in accordance with
applicable UK Accounting Standards and the Accounting Standards Board’s
Statement ‘Half Yearly Financial Reports’; and
-- the Interim Management Report, together with the Chairman’s
Statement and Investment Manager’s Report, include a fair review of the
information required by 4.2.7R and 4.2.8R of the FCA’s Disclosure
Guidance and Transparency Rules.
This Half Yearly Financial Report has not been audited or reviewed by the Company’s auditors.
The Half Yearly Financial Report was approved by the Board on
For and on behalf of the Board
Income Statement
for the six months ended
Six months ended Six months ended Year ended
28 February 2026 28 February 2025 31 August 2025
(unaudited) (unaudited) (audited)
Revenue Capital Total Revenue Capital Total Revenue Capital Total
Notes £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
Gains/
(losses) on
investments
held at – 39,791 39,791 – 654 654 – (41,608) (41,608)
fair value
through
profit or
loss
Gains/
(losses) on – 52 52 – 865 865 – (249) (249)
foreign
exchange
Income from
investments
held at
fair value 3 2,675 – 2,675 1,121 – 1,121 9,223 – 9,223
through
profit or
loss
--------- --------- --------- --------- --------- --------- --------- --------- ---------
Total 2,675 39,843 42,518 1,121 1,519 2,640 9,223 (41,857) (32,634)
income
--------- --------- --------- --------- --------- --------- --------- --------- ---------
Expenses
Investment
management 4 (365) (1,460) (1,825) (483) (1,932) (2,415) (954) (3,818) (4,772)
fee
Other
operating 5 (535) (5) (540) (391) (6) (397) (826) (15) (841)
expenses
--------- --------- --------- --------- --------- --------- --------- --------- ---------
Total
operating (900) (1,465) (2,365) (874) (1,938) (2,812) (1,780) (3,833) (5,613)
expenses
--------- --------- --------- --------- --------- --------- --------- --------- ---------
Net
profit/
(loss)
before 1,775 38,378 40,153 247 (419) (172) 7,443 (45,690) (38,247)
finance
costs and
taxation
Finance (21) (82) (103) (225) (902) (1,127) (297) (1,190) (1,487)
costs
--------- --------- --------- --------- --------- --------- --------- --------- ---------
Net
profit/
(loss) 1,754 38,296 40,050 22 (1,321) (1,299) 7,146 (46,880) (39,734)
before
taxation
Taxation (288) – (288) (65) – (65) (462) – (462)
charge
--------- --------- --------- --------- --------- --------- --------- --------- ---------
Net
profit/
(loss) 7 1,466 38,296 39,762 (43) (1,321) (1,364) 6,684 (46,880) (40,196)
after
taxation
===== ===== ===== ===== ===== ===== ===== ===== =====
Earnings/
(loss) per
ordinary 7 1.57 40.92 42.49 (0.04) (1.35) (1.39) 6.89 (48.30) (41.41)
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/(loss) on ordinary activities for the period disclosed above represents the Company’s total comprehensive income/(loss).
Statement of Changes in Equity
for the six months ended
Called Share Capital Special Capital Revenue
up share premium redemption reserve reserves reserve Total
capital account reserve
Note £’000 £’000 £’000 £’000 £’000 £’000 £’000
For
the six months
ended 28 118 85,325 130 34,141 437,981 11,384 569,079
February 2026
(unaudited)
At 31
August 2025
Total
comprehensive
income:
Net
profit for the – – – – 38,296 1,466 39,762
period
Transactions
with owners,
recorded
directly to
equity:
Ordinary
shares – – – (16,581) – – (16,581)
repurchased
into treasury
Share
repurchase – – – (81) – – (81)
costs
Dividends 6 – – – – – (5,059) (5,059)
paid1
-------- -------- -------- -------- -------- -------- --------
At 28
February 2026 118 85,325 130 17,479 476,277 7,791 587,120
===== ===== ===== ===== ===== ===== =====
For
the six months
ended 28
February 2025
(unaudited)
At 31
August 2024 117 85,325 130 58,331 484,862 11,535 640,300
Total
comprehensive
loss:
Net
loss for the – – – – (1,321) (43) (1,364)
period
Transactions
with owners,
recorded
directly to
equity:
Ordinary
shares – – – (13,133) – – (13,133)
repurchased
into treasury
Share
repurchase – – – (76) – – (76)
costs
Dividends 6 – – – – – (5,153) (5,153)
paid2
-------- -------- -------- -------- -------- -------- --------
At 28
February 2025 117 85,325 130 45,122 483,541 6,339 620,574
===== ===== ===== ===== ===== ===== =====
For
the year ended
31 August 2025
(audited)
At 31
August 2024 118 85,325 130 58,331 484,862 11,534 640,300
Total
comprehensive
(loss)/income:
Net
(loss)/profit – – – – (46,880) 6,684 (40,196)
for the year
Transactions
with owners,
recorded
directly to
equity:
Ordinary
shares – – – (24,099) – – (24,099)
repurchased
into treasury
Share
repurchase – – – (91) (1) – (92)
costs
Dividends 6 – – – – – (6,834) (6,834)
paid3
-------- -------- -------- -------- -------- -------- --------
At 31
August 2025 118 85,325 130 34,141 437,981 11,384 569,079
===== ===== ===== ===== ===== ===== =====
1
Final dividend paid in respect of the year ended
2
Final dividend paid in respect of the year ended
3
Interim dividend paid in respect of the year ended
For information on the Company’s distributable reserves, please refer to note 10 below.
Balance Sheet
as at
28 28 31
February 2026 February 2025 August 2025
(unaudited) (unaudited) (audited)
Notes £’000 £’000 £’000
Non current
assets
Investments
held at fair value 11
through profit or 612,847 683,537 551,175
loss
------------ ------------ ------------
Current
assets
Current 3,071 4,229
taxation asset 3,475
Debtors 637 66 640
Cash and
cash equivalents – – – 576
cash at bank
Cash and
cash equivalents – 638 – 16,221
Cash Fund1
------------ ------------ ------------
Total
current assets 4,750 3,137 21,666
======= ======= =======
Current
liabilities
Cash and
cash equivalents – (12,218) (59,024) (1,468)
bank overdraft
Other
creditors (18,259) (7,076) (2,294)
------------ ------------ ------------
Total
current liabilities (30,477) (66,100) (3,762)
------------ ------------ ------------
Net current
(liabilities)/assets (25,727) (62,963) 17,904
------------ ------------ ------------
Net assets
587,120 620,574 569,079
======= ======= =======
Equity
Called up 9 118 117 118
share capital
Share
premium account 85,325 85,325 85,325
Capital 130 130 130
redemption reserve
Special
reserve 17,479 45,122 34,141
Capital
reserves 476,277 483,541 437,981
Revenue 11,384
reserve 7,791 6,339
------------ ------------ ------------
Total
shareholders’ funds 587,120 620,574 569,079
======= ======= =======
Net asset
value per ordinary 7 635.95 639.30 598.05
share (pence)
======= ======= =======
1
Statement of Cash Flows
for the six months ended
Six months Six months Year ended
ended ended
31 August 2025
28 February 2026 28 February 2025
(audited)
(unaudited) (unaudited)
£’000 £’000 £’000
Operating
activities
Net profit/
(loss) before 40,050 (1,299) (39,734)
taxation1
Changes in
working capital
items:
Decrease in 3 200 108
debtors
Increase/
(decrease) in other 16,454 2,170 (3,131)
creditors
Other
adjustments:
Finance 103 1,127 1,487
costs
(Gains)/losses on
investments held at (39,791) (654) 41,608
fair value through
profit or loss
(Gains)/losses on (52) (865) 249
foreign exchange
Sale of
investments held at 175,197 116,457 302,212
fair value through
profit or loss
Purchase of
investments held at (197,078) (107,358) (203,164)
fair value through
profit or loss
Taxation on (757) (148) (3,247)
investment income
Interest (103) (1,127) (1,487)
paid
Refund of
withholding tax 1,223 112 1,656
reclaims
------------ ------------ ------------
Net cash
(used in)/generated (4,751) 8,615 96,557
from operating
activities
======= ======= =======
Financing
activities
Ordinary
shares repurchased (17,151) (13,209) (24,003)
into treasury
Dividends (5,059) (5,153) (6,834)
paid
------------ ------------ ------------
Net cash used
in financing (22,210) (18,362) (30,837)
activities
======= ======= =======
(Decrease)/increase (26,961) (9,747) 65,720
in cash and cash
equivalents
Effect of
foreign exchange rate 52 865 (249)
changes
Cash and cash
equivalents at the 15,329 (50,142) (50,142)
start of the
period/year
------------ ------------ ------------
Cash and cash
equivalents at the (11,580) (59,024 15,329
end of the )
period/year
======= ======= =======
Comprised of:
Cash at bank – – 576
Cash Fund2 638 – 16,221
Bank (12,218) (59,024) (1,468)
overdraft
------------ ------------ ------------
(11,580) (59,024) 15,329
======= ======= =======
1
Dividends and interest received in cash during the period amounted to £2,624,000 and £1,000 (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 ended Six months ended Year ended
28 February 2026 28 February 2025 31 August 2025
(unaudited) (unaudited) (audited)
£’000 £’000 £’000
Investment
income:
UK dividends – – 656
Overseas 2,403 1,120 8,442
dividends
Overseas 271 – 124
special dividends
------------ ------------ ------------
Total 2,674 1,120 9,222
investment income
Other income:
Interest 1 1 1
received
------------ ------------ ------------
Total other 1 1 1
income
------------ ------------ ------------
Total 2,675 1,121 9,223
======= ======= =======
Dividends and interest received in cash during the period amounted to £2,624,000 and £1,000 respectively (six months ended
No special dividends have been recognised in capital during the period (six months ended
4. Investment management fee
Six months ended 28 Six months ended 28 Year ended 31 August 2025
February 2026 February 2025
(audited)
(unaudited) (unaudited)
Revenue Capital Total Revenue Capital Total Revenue Capital Total
£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
Investment 365 483 954
management 1,460 1,825 1,932 2,415 3,818 4,772
fee
---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
365 483
Total 1,460 1,825 1,932 2,415 954 3,818 4,772
====== ====== ====== ====== ====== ====== ====== ====== ======
Up to
With effect from
It is estimated that the Company’s ongoing charges ratio (OCR) will reduce, allowing it to achieve an illustrative OCR of 0.775% (based on average net assets for the year ended
The investment management fee is allocated 20% to the revenue account and 80% to the capital account of the Income Statement. There is no additional fee for company secretarial and administration services.
5. Other operating expenses
Six months Six months ended Year ended
ended
28 February 2025 31 August 2025
28 February 2026
(unaudited) (audited)
(unaudited)
£’000 £’000 £’000
Allocated to
revenue:
Broker fees 24 24 48
Custody fees 32 35 68
Depositary fees 33 34 68
Audit fees1 30 31 59
Legal fees – 13 11
Registrar’s 56 48 98
fees
Directors’ 105 94 207
emoluments
Marketing fees 138 50 101
Postage and 29 30 59
printing fees
AIC fees 14 11 23
Professional 9 5 16
fees
Stock exchange 20 17 37
listing fees
Write back of
prior year expense – (39) (10)
accruals2
Other 45 38 41
administration costs
------------ ------------ ------------
Total revenue 535 391 826
expenses
Allocated to
capital:
Custody 5 6 15
transaction costs3
------------ ------------ ------------
Total capital 5 6 15
expenses
------------ ------------ ------------
Total 540 397 841
======= ======= =======
1
No non-audit services are provided by the Company’s auditors (six months ended
2
No prior year expenses have been written back in the period (six months ended
3
For the six month period ended
The direct transaction costs incurred on the acquisition of investments amounted to £390,000 for the six months ended
6. Dividends
The Directors have declared an interim dividend of 1.75p per share for the period ended
In accordance with FRS 102, Section 32 Events After the End of the Reporting Period, the interim dividend payable on the ordinary shares has not been included as a liability in the financial statements, as interim dividends are only recognised when they have been paid.
7. Earnings and net asset value per ordinary share
Revenue earnings/(loss), capital earnings/(loss) and net asset value per ordinary share are shown below and have been calculated using the following:
Six months Six months ended Year ended
ended
28 February 2025 31 August 2025
28 February 2026
(unaudited) (audited)
(unaudited)
Net revenue
profit/(loss)
attributable to 1,466 (43) 6,684
ordinary
shareholders (£’000)
Net capital
profit/(loss)
attributable to 38,296 (1,321) (46,880)
ordinary
shareholders (£’000)
------------ ------------ ------------
Total profit/
(loss) attributable 39,762 (1,364) (40,196)
to ordinary
shareholders (£’000)
------------ ------------ ------------
Total
shareholders’ funds 587,120 620,574 569,079
(£’000)
======= ======= =======
Earnings per
share
The weighted
average number of
ordinary shares in
issue during the 93,578,494 98,146,439 97,066,146
period on which the
earnings per
ordinary share was
calculated was:
The actual
number of ordinary
shares in issue at
the end of the 92,321,027 97,070,633 95,155,422
period on which the
net asset value per
ordinary share was
calculated was:
Calculated on
weighted average
number of ordinary
shares:
Revenue
earnings/(loss) per 1.57 (0.04) 6.89
share (pence) -
basic and diluted
Capital
earnings/(loss) per 40.92 (1.35) (48.30)
share (pence) -
basic and diluted
------------ ------------ ------------
Total
earnings/(loss) per 42.49 (1.39) (41.41)
share (pence) -
basic and diluted
======= ======= =======
As at As at As at
28 February 2026 28 February 2025 31 August 2025
(unaudited) (unaudited) (audited)
Net asset value per share 635.95 639.30 598.05
(pence)
Ordinary share price 605.00 596.00 570.00
(pence)
======= ======= =======
There were no dilutive securities at
8. Reconciliation of liabilities arising from financing activities
Six months Six months ended Year ended
ended
28 February 2025 31 August 2025
28 February 2026
(unaudited) (audited)
(unaudited)
£’000 £’000 £’000
Bank overdraft
at the beginning of 1,468 50,150 50,150
the period/year
Cash flows:
Movement in 10,807 10,722 (47,195)
overdraft
Bank overdraft (103) (1,127) (1,487)
interest paid
Non cash
flows:
Effects of
foreign exchange 46 (721) –
loss/(gain)
------------ ------------ ------------
Bank overdraft
at the end of the 12,218 59,024 1,468
period/year
======= ======= =======
See Note 11 for terms of the overdraft facility.
9. Called up share capital
Ordinary Treasury Total Nominal
shares shares shares value
number number number £’000
Allotted,
called up and
fully paid
share capital
comprised:
Ordinary
shares of 0.1
pence each:
At 31
August 2024 99,332,161 18,596,777 117,928,938 117
(audited)
Ordinary
shares 2,261,528 – –
repurchased (2,261,528)
into treasury
--------------- --------------- --------------- ---------------
At 28
February 2025 97,070,633 20,858,305 117,928,938 117
(unaudited)
Ordinary
shares 1,915,211 – –
repurchased (1,915,211)
into treasury
--------------- --------------- --------------- ---------------
At 31
August 2025 95,155,422 22,773,516 117,928,938 118
(audited)
Ordinary
shares 2,834,395 – –
repurchased (2,834,395)
into treasury
--------------- --------------- --------------- ---------------
At 28
February 2026 92,321,027 25,607,911 117,928,938 118
(unaudited)
========= ========= ========= =========
During the six months ended
Since
10. Reserves
The share premium account and capital redemption reserve of £85,325,000 and £130,000 (
As at
11. Financial risks and valuation of financial instruments
The Company’s investment activities expose it to the various types of risk which are associated with the financial instruments and markets in which it invests. The risks are substantially consistent with those disclosed in the previous annual financial statements, with the exception of those outlined below.
Market risk arising from price risk
Price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices (other than those arising from interest rate risk or currency risk), whether those changes are caused by factors specific to the individual financial instrument or its issuer, or factors affecting similar financial instruments traded in the market. Local, regional or global events such as war, acts of terrorism, the spread of infectious illness or other public health issues, recessions, climate change or other events could have a significant impact on the Company and the market price of its investments and could result in increased premiums or discounts to the Company’s net asset value.
Liquidity risk
The Company has an overdraft facility of the lower of £75 million or 15% of the Company’s net assets (
Valuation of financial instruments
Financial assets and financial liabilities are either carried in the Balance Sheet at their fair value (investments) or at an amount which is a reasonable approximation of fair value (due from brokers, dividends and interest receivable, due to brokers, accruals, cash and cash equivalents and overdrafts). Section 34 of FRS 102 requires the Company to classify fair value measurements using a fair value hierarchy that reflects the significance of inputs used in making the measurements. The valuation techniques used by the Company are explained in the accounting policies note on page 93 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 £’000 £’000 £’000 £’000
through profit or
loss
Equity
investments at 28 612,846 – 1 612,847
February 2026
(unaudited)
Equity
investments at 28 683,536 – 1 683,537
February 2025
(unaudited)
Equity
investments at 31 551,174 – 1 551,175
August 2025
(audited)
========= ========= ========= =========
The Company held two Level 3 securities as at
A reconciliation of fair value measurement in Level 3 is set out below.
Level 3 financial assets at fair value through profit or loss
Six months ended Six months ended Year ended
28 February 2026 28 February 2025 31 August 2025
(unaudited) (unaudited) (audited)
£’000 £’000 £’000
Opening fair 1 1 1
value
Gain/(loss) on
investments included – – –
in the Income
Statement
----------- ----------- -----------
Closing 1 1 1
balance
======= ======= =======
As at
For exchange listed equity investments, the quoted price is the bid price. Substantially all investments are valued based on unadjusted quoted market prices. Where such quoted prices are readily available in an active market, such prices are not required to be assessed or adjusted for any business risks, including climate change risk, in accordance with the fair value related requirements of the Company’s financial reporting framework.
12. Related party disclosure
The Board now consists of five non-executive Directors, all of whom are considered to be independent by the Board. None of the Directors has a service contract with the Company. The Chairman receives an annual fee of £51,500, the Chair of the
At the period end, the members of the Board held ordinary shares in the Company as set out below:
28 February 28 February 31 August
2026 2025 2025
Andrew Impey 6,000 – 6,000
Peter Baxter 11,000 11,000 11,000
Paola Subacchi 11,734 11,700 11,734
Ian Sayers 4,000 4,000 4,000
Sapna Shah 4,000 4,000 4,000
Since the period end and up to the date of this report there have been no changes in Directors’ holdings.
The transactions with the Investment Manager and AIFM are stated in note 13 below.
Significant holdings
The following investors are:
a. funds managed by the
b. investors (other than those listed in (a) above) who held more than 20% of the voting shares in issue in the Company and are, as a result, considered to be related parties to the Company (
Total % of
shares Total % of Number of
shares held by Significant Investors
held by Related Significant Investors who are not affiliates
who are not affiliates of BlackRock Group or
BlackRock Funds of BlackRock Group or BlackRock, Inc.
BlackRock, Inc.
As at 28 1.2 n/a n/a
February 2026
As at 28 1.2 n/a n/a
February 2025
As at 31 1.3 n/a n/a
August 2025
======= ======= =======
13. Transactions with the Investment Manager and AIFM
The investment management fee is levied quarterly based on a tiered basis: 0.65% of month-end net assets up to and including £400 million, 0.60% of month-end net assets in excess of £400 million up to and including £1 billion and 0.525% of month-end net assets in excess of £1 billion. The investment management fee due for the six months ended
In addition to the above services, BIM (
During the year, the Manager pays the amounts due to the Directors. These fees are then reimbursed by the Company for the amounts paid on its behalf. As at
The Company has 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 report does not constitute statutory accounts as defined in Section 435 of the Companies Act 2006. The financial information for the six months ended
The information for the year ended
16. Annual results
The Board expects to announce the annual results for the year ending
EC2N 2DL
For further information please contact:
Sarah Beynsberger, Director, Closed End Funds,
Tel: 020 7743 3000
Tel: 020 7743 3000
Press enquires:
Tel: 020 7294 3620
E-mail:
BlackRockInvestmentTrusts@lansons.com
or
EdH@lansons.com
END
The Half Yearly Financial Report will also be available on the BlackRock website at www.blackrock.com/uk/brge . Neither the contents of the Manager’s website nor the contents of any website accessible from hyperlinks on the Manager’s website (or any other website) is incorporated into, or forms part of, this announcement.
Release
