LEGAL ENTITY IDENTIFIER: 213800F3NOTF47H6AO55

THE CITY OF LONDON INVESTMENT TRUST PLC

Unaudited Results for the Half Year Ended 31 December 2025

This announcement contains regulated information

CHAIRMAN'S COMMENT

"City of London achieved an 11.9% net asset value total return during the six months, which was behind the FTSE All-Share Index (13.7%) but ahead of the AIC and the IA UK Equity Income sector averages (respectively 7.8% and 8.6%). Earnings per share increased by 5.5% compared with the same period in 2024."

INVESTMENT OBJECTIVE

The Company's objective is to provide long-term growth in income and capital, principally by investment in equities listed on the London Stock Exchange. The Board fully recognises the importance of dividend income to shareholders.

PERFORMANCE

Sources: Morningstar Direct, Janus Henderson, LSEG Datastream

1 Calculated using the NAV and mid-market share price at the period end

2 Net asset value ("NAV") per ordinary share total return with debt at fair value (including dividends reinvested)

3 Share price total return using mid-market closing price

4 AIC UK Equity Income sector size-weighted average NAV total return (shareholders' funds)

5 The Investment Association ("IA") peer group average is based on mid-day NAV whereas the returns of the investment trust are calculated using close of business NAV

INTERIM MANAGEMENT REPORT

CHAIRMAN'S STATEMENT

City of London achieved an 11.9% net asset value total return during the six months, which was behind the FTSE All-Share Index (13.7%), but ahead of the AIC and IA UK Equity Income sector averages (respectively 7.8% and 8.6%). Earnings per share increased by 5.5% compared with the same period in 2024.

The Markets

UK GDP growth slowed, with consumer and business confidence adversely affected by leaks and speculation ahead of the November Budget. The tax rises announced alleviated some of the concerns about the UK's fiscal position. The Bank of England lowered the base rate to 3.75%, through two cuts each of 25 basis points, with consumer price inflation declining but still above the Bank's 2% target. In the US, GDP growth remained robust, helped by the loose fiscal policy and productivity gains attributed to the substantial investment in artificial intelligence. The Federal Reserve made three cuts in interest rates to 3.75%, reflecting concerns about the softening labour market. In Europe, GDP growth was sluggish, with Germany only narrowly avoiding a technical recession. The European Central Bank maintained its key deposit rate at 2.0%.

The UK equity market returned 13.7%, as measured by the FTSE All-Share Index, with large companies outperforming. The mining sector was a notable outperformer reflecting the large gains in metals such as gold and copper. On the other hand, some companies that were expected to suffer from the adoption of artificial intelligence were notable underperformers.

Net Asset Value Total Return

City of London's net asset value total return was 11.9%, which was behind the FTSE All-Share Index (13.7%) but ahead of the sector averages of the AIC UK Equity Income (7.8%) and the IA UK Equity Income OEIC (8.6%). The biggest sector detractor relative to performance against the FTSE All-Share Index was being underweight mining. The biggest relative stock positive contributors arose from not holding London Stock Exchange and Experian, whose profits were considered to be vulnerable to artificial intelligence. The holding in NatWest was the next biggest stock contributor. The biggest stock detractor was the underweight position in AstraZeneca, followed by the holding in BAE Systems.

Earnings and Dividends

Earnings per share increased by 5.5%, from 8.39p to 8.85p, compared with the same period last year. The banking sector was the biggest contributor to dividend growth in the portfolio.

The Board continues to control expenses tightly. City of London's ongoing charge, which includes the investment management fee and other administrative non-interest expenses as a percentage of shareholder funds, is expected to remain around 0.36% during this financial year. This is low compared with almost all other investment trusts and (non-tracker) managed equity investment products.

City of London has declared two interim dividends to date, each of 5.40p, in respect of this financial year. The Company's diverse portfolio, strong cash flow and revenue reserve give the Board confidence that, in line with its objective to provide long-term income and capital growth, it will be able to increase the total annual dividend for the 60^th consecutive year. The level of quarterly dividend will be reviewed by the Board before the third interim dividend is declared in April 2026.

Share Capital

The Board's stated policy is to issue and buy back shares within a narrow band relative to net asset value. During the six-month period, the Company issued the remaining 9,147,762 shares that had been held in Treasury at the year end, at a small premium, for proceeds of £46.4 million and a further 1,542,238 new shares were issued for proceeds of £8.1 million.

Portfolio Changes

New holdings were bought in Big Yellow, the self-storage Real Estate Investment Trust; ICG, the alternative asset manager that operates in private markets; and Rightmove, the UK's dominant online property portal. Complete sales were made of Anglo American, the miner; Dowlais, the automotive components manufacturer in the process of being taken over by American Axle; Hays, the recruitment company; and XP Power, which makes electrical power components. Significant additions were made to Unilever, the global consumer products company, while the holding in SSE, the UK energy utility, was reduced.

Outlook

Dramatic policy announcements from the US President have continued to challenge the post-Second World War political and economic order. Although some of the President's unsettling proposals have been moderated after negotiation with other countries, the erosion of confidence in US fiscal, trade and security policies has been reflected by a fall in the value of the US dollar and the rise in the price of gold. In addition, other stock markets have benefited as investors have moved to diversify portfolios away from a heavy concentration on US equities.

The outlook for US economic growth, despite the uncertainties generated from the White House, remains positive as a result of expected productivity gains from artificial intelligence. It should be noted, however, that the scale of its fiscal stimulus would not be sustainable at an equivalent level in most other countries and the prospect of Presidential interference with the independence of the Federal Reserve represents a serious concern.

UK growth is likely to be more pedestrian, despite healthy corporate balance sheets and a high personal savings ratio. The Bank of England has scope to make further cuts in interest rates, although the continuing upward pressure on wages is likely to be a restraining factor.

UK equities performed well in 2025, with their relatively cheap values attracting global investors, including takeover bids from overseas companies and private equity firms. 2026 has started with takeover approaches for two FTSE 100 companies held in the portfolio: Beazley, the specialist insurer, from Zurich Insurance; and Schroders, the asset manager, from Nuveen of the US. The Board considers that UK equities continue to offer good value, with attractive dividend yields compared to opportunities in other stock markets.

Sir Laurie Magnus CBE

Chairman

26 February 2026

FORTY LARGEST INVESTMENTS

SECTOR EXPOSURE

As a percentage of the investment portfolio excluding cash

Source: Janus Henderson

SECTOR BREAKDOWN OF INVESTMENTS

¹ Overseas listed

All classes of equity in any one company are treated as one investment.

PRINCIPAL RISKS AND UNCERTAINTIES

The principal risks and uncertainties associated with the Company's business can be divided into the following main areas:

·   Portfolio and market price

·   Dividend income

·   Investment activity, gearing and performance

·   Tax and regulatory

·   Operational

Information on these risks and how they are managed is given in the Annual Report for the year ended 30 June 2025. In the view of the Board, these principal risks and uncertainties at the year end remain and are as applicable to the remaining six months of the financial year as they were to the six months under review.

DIRECTORS' RESPONSIBILITY STATEMENT

The Directors confirm that, to the best of their knowledge:

On behalf of the Board

Sir Laurie Magnus CBE

Chairman

26 February 2026

INCOME STATEMENT

The total columns of this statement represent the Company's Income Statement, prepared in accordance with FRS 104. The revenue and capital columns are supplementary to this and are published under guidance from The Association of Investment Companies.

The Company has no recognised gains or losses other than those disclosed in the Income Statement and Statement of Changes in Equity. All items in the above statement derive from continuing operations. No operations were acquired or discontinued during the period.

The accompanying notes are an integral part of these financial statements.

STATEMENT OF CHANGES IN EQUITY

The accompanying notes are an integral part of these financial statements.

STATEMENT OF FINANCIAL POSITION

The accompanying notes are an integral part of these financial statements.

NOTES

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