Aberforth Geared Value & Income Trust Plc - Half-year Financial Report
Interim Results for the six months to
The following is an extract from the Company's second Half Yearly Report and Financial Statements for the six months to
FINANCIAL HIGHLIGHTS (SUMMARY)
Total returns for the six months to
Total Assets 0.0% Ordinary Share NAV -1.5% Ordinary Share Price +2.7% ZDP Share NAV +3.5% ZDP Share Price +6.5% Refer to Note 2, Alternative Performance Measures, and the Glossary
Dividend Declared
First interim dividend for the year ending
The first interim dividend has an ex-dividend date of
The Company
Investment Objective
The Company's investment objective is to provide Ordinary Shareholders with high total returns, incorporating an attractive level of income, and to provide ZDP Shareholders with a pre-determined Final Capital Entitlement of
CHAIRMAN’S STATEMENT
Introduction
This is the second interim report of
The period unfolded against a backdrop of strong equity markets around the world. Concerns about a costly trade war abated as markets drew reassurance from a string of agreements reached by the US with its international trading partners. Sentiment was further supported by, perhaps temporary, easing of geopolitical risk, as efforts to resolve the conflicts in
While the
Review of Performance
While equity returns have been positive, it has been a frustrating period for the performance of the UK’s smaller companies and AGVIT’s portfolio. This contrasts with the resilience of the Company’s income performance, which is described in more detail below.
Portfolio performance
-- AGVIT’s Total Asset Total Return, which measures its ungeared portfolio
performance, was zero in the six month period ending 31 December 2025 .
-- For reference, the DNSCI (XIC) delivered a total return of 5.3% in the
period. The FTSE All-Share index, which is dominated by the larger UK
listed companies, recorded a total return of 13.7%.
-- The Managers’ Report explains how the investment environment has
affected AGVIT’s performance and examines the various factors that
influenced its return.
NAV and share price performance
-- The performance of the Ordinary Shares is affected by the gearing
provided by the ZDP Shares. In the six months to 31 December 2025 , the
portfolio’s capital performance was below the hurdle of the rising
entitlement of the Zero Dividend Preference Shares (ZDPs). Accordingly,
the Ordinary Share NAV Total Return was -1.5% in the six months to 31
December 2025 .
-- The share price discount of the Ordinary Shares to their net asset value
narrowed over the period from 16.2% at 30 June 2025 to 13.1% at 31
December 2025 . This influenced the Ordinary Share Price Total Return of
2.7%.
-- The ZDP Shares NAV Total Return rose at a rate consistent with the 7.0%
annual increase in their entitlement. The ZDP share price was at a 4.6%
premium to NAV at 31 December 2025 . The projected final cumulative cover
of the ZDP Shares was 2.0 times at 31 December 2025 and was unchanged
from the start of the reporting period.
Income performance
-- The portfolio’s capital performance contrasts with a good income
experience. Even with all the worries about the performance of the UK
economy, the Company’s Investment Income from Revenue rose 4.8% in the
six months to 31 December 2025 . This translates into a Revenue Return
per Ordinary Share of 3.26p.
-- This was flattered somewhat by the favourable timing of some ordinary
dividends and by a special dividend, but underlying income growth from
investments was still healthy at 3.0%. This outcome was above the
Managers’ estimates at the start of the year, which underlines the
resilience of AGVIT’s investment portfolio and bodes well for capital
performance in due course.
First interim dividend
Against the backdrop of higher investment income compared with the corresponding period in the previous year, the Board is pleased to announce a first interim dividend of 1.56p per Ordinary Share. This is 4.0% higher than the previous year’s 1.50p. Investors will recall that the Ordinary Shareholders enjoy rights to all income generated by the portfolio.
The first interim dividend will be paid on
Board Changes
As I indicated in my Annual Report,
Upon conclusion of the Annual General Meeting,
The Board also announced that
Outlook
The impressive performance of the FTSE All-Share over recent months suggests that the UK’s larger companies have overcome the “big picture” issues of macro-economics and politics that seem still to be influencing subdued investor sentiment towards Britain’s smaller companies. I take encouragement from the renewed interest in larger companies, since I have observed this filter down into the smaller company world in previous cycles.
Smaller companies are undeniably more exposed to the vagaries of the economic cycle but they also have a record of resilience, which contrasts starkly with the unfairly low valuations currently ascribed to them by the stockmarket. The Managers’ Report develops on this anomaly and describes a positive outlook for AGVIT’s investee companies through consideration of their strong balance sheets and robust cash generation. These positive attributes come through clearly in the Board’s regular discussions with the Managers about individual holdings. Another external validation of the portfolio’s fundamental strengths and attractive valuations can be seen in the sustained high level of takeover activity within the small cap space. I expect this is likely to continue so long as the stockmarket shuns the opportunity.
The Company’s prospects do not rely on M&A. It owns excellent businesses that are growing their dividends. This has driven the rise in AGVIT’s first interim dividend, which we have announced today, and in due course should support the portfolio’s capital growth. There is also scope for capital growth embedded in the unusually low valuations of the portfolio’s holdings, which should close in on longer term averages over time. For the Ordinary Shares, this progress would be magnified by the gearing from the ZDP Shares. Another structural advantage offered by AGVIT is its fixed life, which addresses the share price’s discount to net asset value by giving the opportunity to realise value at close to net asset value on planned winding-up.
The Board and Managers, who have continued to add to their personal shareholdings, therefore believe that AGVIT’s portfolio and capital structure can deliver on the investment objective for the benefit of both classes of shareholder over the Company's life.
Finally, my fellow directors and I welcome the views of shareholders and are available should you wish to discuss these with us. My email address is noted below. Once again, thank you for your support.
Chairman
Angus.GordonLennox@aberforth.co.uk
MANAGERS’ REPORT
Performance
In the six months to
Investment background
The valuations of small
-- The former group, the domestics, comprises consumer-oriented companies,
such as retailers, leisure businesses and media companies. It accounts
for around 53% of the revenues of DNSCI (XIC) constituents. These
companies were most severely affected by Brexit and by lockdown during
the pandemic. They operated resiliently in the face of these challenges
but were confronted in 2025 by intensifying concerns about the UK
government’s fiscal situation. The Chancellor has struggled to achieve
convincing fiscal headroom as she contends with her own fiscal rules,
manifesto commitments and the internal politics of the Labour Party . The
predicament was encapsulated by the gyrations in gilt yields through
2025 and by the rising cost of government debt here in comparison with
the rest of the world: ten year gilt yields started 2025 in line with
those in the US but ended the year 31 basis points higher. The UK
private sector, already wary after the 2024 Budget, was naturally
cautious ahead of the 2025 Budget. It is likely that economic activity
suffered as, in a classic Ricardian fashion, households and businesses
held back on spending and investment. This was to the disadvantage of
the domestically oriented companies.
-- The overseas facing companies tend to be industrial businesses and
account for the other 47% of the DNSCI (XIC)’s total revenues. They were
less affected by the pandemic and their profitability even benefited
from the EU referendum as sterling weakened in its aftermath. The
disruption of supply chains in the wake of the pandemic, along with the
conflicts in Ukraine and Gaza , were unhelpful, but these companies
tended to enjoy good trading conditions in recent years. That changed in
April 2025 with Donald Trump’s tariff announcements. Their longer
lasting effects on global trade and broad economic activity are as yet
uncertain, but it is clear that businesses have incurred near term
headwinds in the form of higher costs and working capital requirements.
Consequently, the valuations of overseas facing companies within the
DNSCI (XIC) have also come under pressure.
These twin pressures have hampered the valuation of smaller companies, particularly those whose profits are perceived to be more sensitive to broader economic activity. This has affected AGVIT’s performance since many of the most attractively valued smaller companies today are in the more economically sensitive sectors of the stockmarket. Indeed, the market's near term fears of cyclicality can often be what presents the Managers with investment opportunity as they take a longer term view of a business's underlying qualities and profit potential.
In recent years, gloom about the
Smaller companies are being penalised for their very size and relative illiquidity, rather than for fundamental reasons. This suspicion is backed up by analysis of the dividend characteristics of the DNSCI (XIC) and the FTSE All Share. For the first time since the global financial crisis, the dividend yield of the DNSCI (XIC) is higher than the FTSE All-Share’s. This is despite small companies’ average dividend cover being above that of large companies and despite small companies’ balance sheets being stronger than those of large companies. Moreover, dividend growth of the DNSCI (XIC) has remained superior to that of the FTSE All-Share. Since 2015 – the year before the EU referendum and therefore a fair starting point – small company dividend growth has been 63%, whereas large company dividend growth has been 29%. Since 2019 – the year before the pandemic – small companies have grown their dividends by 23%, whereas large companies have seen their aggregate dividends decline by 6%.
The superior dividend growth from smaller companies is evident in almost all time periods and supports the growing dividends paid by AGVIT. These dividends also benefit from how the Managers invest AGVIT’s capital. An important facet of the process is the “value roll”, in which capital is rotated from companies with low upside to the Managers’ target prices into companies with high upsides. This rotation implies that capital is moved from companies with low dividend yields into those with high dividend yields, a dynamic that enhances the income earned by the portfolio over time.
Influences on performance and portfolio characteristics
In the six months to
31 December 2025 31 December 2024
Portfolio characteristics
AGVIT DNSCI (XIC) AGVIT DNSCI (XIC)
Number of companies 66 352 69 350
Weighted average market capitalisation £691m £1,225m £659m £1,019m
Weighting in “smaller small” companies* 42% 17% 44% 21%
Weighting in companies with net cash*** 47% 26% 31% 30%
Portfolio turnover over 12 months 27% - ** -
Price earnings (PE) ratio (historical) 10.6x 13.8x 9.6x 13.0x
Dividend yield (historical) 5.7% 3.4% 5.6% 3.4%
Dividend cover (historical) 1.6x 2.1x 1.9x 2.2x
*Members of the DNSCI (XIC) that are not also members of the
Economic cyclicality
As described above, AGVIT’s returns have been influenced by concerns about economic activity both domestically and overseas. Many of the most attractively valued companies within the DNSCI (XIC) at present are perceived as sensitive to the economic cycle. The Managers are prepared to look beyond these near term concerns, putting more store in the resilience of business models, records of profit progress from cycle to cycle and strength of balance sheets. Such bouts of concern are not unusual in Aberforth’s 35 years. Economic cyclicality has hampered recent performance, but it is the Managers’ experience that the stockmarket tends to under-estimate the resilience of smaller companies and thus creates the conditions for a strong recovery in due course.
Value style
The Managers follow a value investment philosophy. They calculate target valuations for existing and potential investments. These are influenced by fundamental analysis of the companies, judgement informed by experience, and reference to other relevant valuations in equity markets or corporate activity. Growth of profits is an important component of target valuations, but the Managers find that stockmarket valuations are often too generous in their assumptions of the sustainability and pace of growth.
To gauge the style effect on AGVIT’s performance, the Managers use analysis by the
Size, within the DNSCI (XIC)
The DNSCI (XIC) includes all main listed stocks in the
Corporate activity
The pattern is a familiar one of recent years – a lot of takeovers targeting small
On M&A, the recommended takeovers of two companies in the DNSCI (XIC) were announced and completed in the six months to
Takeovers can be an effective means by which the value in AGVIT’s portfolio is realised. However, there is an important caveat. The low valuations of smaller companies mean that takeovers may be proposed on unattractive terms and that investors’ interests might be better served by rejecting the takeover approach. The risk is exacerbated by boards and some shareholders yielding too quickly to takeover interest, no doubt succumbing to the gloomy sentiment towards the
The depressed valuations of small
While the DNSCI (XIC) has not been refreshed by IPOs, it is experiencing an influx of companies that are choosing to move from AIM to the Main Market. AGVIT does not invest in AIM quoted companies except in limited circumstances. These include when an AIM company makes a public announcement of its intention to move to the Main List. Over the past 18 months, 15 AIM quoted companies announced an intention to relist. Of these, six completed the process in 2025 and were included in the DNSCI (XIC) on its annual rebalancing on
Income
The UK’s economic and political uncertainties contributed to a lacklustre capital performance in the six months to
Nil Payer Cutter Unchanged Payer Increased Payer 6 8 22 30
The drag on AGVIT’s income from the 8 cutters was out-weighed by the 30 companies that increased their dividends and by the receipt of one special dividend. This good dividend experience drove an increase in AGVIT’s Investment Income over the six months to
The average historical dividend yield of AGVIT’s holdings at
Significant stakes
Engagement with the boards of investee companies has always been a crucial component of the Managers’ investment process. It is particularly relevant at present in view of the high rate of takeover activity among smaller companies and of the recent regulatory changes to the listing rules and prospectus regime. The latter are intended to make the
The Managers’ scope to engage effectively is supported by their ability to take significant stakes of up to 25% in issued share capital across their client base. At
Significant stakes bring increased influence but come with a downside in the form of illiquidity – reducing these positions by selling into the stockmarket can be difficult. However, there are compensating factors. First, the increased influence, coupled with patience and support, has contributed to improved investment outcomes – significant stakes have enhanced the performance of the Managers’ portfolios over time. Second, illiquidity has been manageable. Exiting significant stakes has been facilitated by M&A or by renewed investor appetite as prospects for the business improve. Third, AGVIT’s closed-end structure is ideally suited to holding significant stakes – patient support from investors is often required as boards work to improve business performance. The Managers are confident that their approach to engagement and ability to take significant stakes have enhanced their clients’ returns over time and will continue to do so.
Balance sheets
The following table sets out the balance sheet profile of AGVIT’s portfolio and of the Managers’ Tracked Universe. This subset of the DNSCI (XIC) represents 99% by value of the index as a whole and is made up of the 246 companies that the Managers follow closely.
Weight in companies Net cash Net debt/EBITDA < 2x Net debt/EBITDA > 2x Other* with: Portfolio 2025 47% 37% 14% 2% Tracked Universe 2025 26% 43% 24% 7%
*includes loss-makers and lenders.
Balance sheets remain robust both within the portfolio and among small caps in general. Compared with a year ago, the portfolio’s exposure to companies with stronger balance sheets has risen: the weighting in companies with net cash and leverage below two times was 82% at the end of 2024 and 84% at the end of 2025. This shift reflects both the cash generation of the investee companies and portfolio activity. The stockmarket’s lack of interest in smaller companies means that stronger balance sheets are not being reflected in higher valuations. This lack of discernment has brought more companies into the Managers’ valuation range and has contributed to the higher exposure to companies with strong balance sheets.
The strength of balance sheets raises the question of how capital should be deployed. This is a frequent topic of engagement for the Managers with the boards of AGVIT’s investee companies. The highest priority should be organic investment to maintain the viability of a business and allow it to grow. This is especially pertinent at present since it seems that the economic and political uncertainty has discouraged companies from larger capital expenditure projects. After organic investment, a coherent and appropriate dividend policy is essential, optimally one that allows ordinary dividends to grow in real terms through economic cycles. After that, acquisitions may be considered, but these should be assessed against the benchmark of lower risk special dividends or share buy-backs. Many small companies bought back shares in 2025, including 26 companies within AGVIT’s portfolio.
Value roll and portfolio turnover
The main influence on AGVIT’s portfolio turnover in any period is usually the stockmarket’s appetite for small
Portfolio turnover is defined as the lower of purchases and sales divided by the average portfolio value. Over the 12 months to
Valuations
Recent Managers’ Reports have described how AGVIT is subject to a triple valuation discount. This referred to AGVIT’s portfolio being on lower valuations than small
Price earnings (PE) 31
ratio: 35 year average December 31 December 2024 31 December 2025
2023
World equities* 16.0x 16.0x 17.0x 18.1x
FTSE All-Share 15.3x 10.3x 14.6x 17.6x
Smaller companies** 13.5x 10.3x 11.9x 12.2x
Aberforth/AGVIT 12.0x*** 7.9x*** 9.6x 10.6x
portfolio
* Source: Bloomberg;
** DNSCI (XIC) to 2013 then Tracked Universe
*** Data for Aberforth’s longest standing client
Twelve months on, the triple discount remains in place, and yet there has been movement. The historical PEs of all four groups have risen, but the most significant move over the past twelve months has been among large
The following table turns to forward looking valuations. It uses the Managers’ favoured valuation metric, EV/EBITA (enterprise value to earnings before interest, tax and amortisation). Ratios are set out for the portfolio, the Tracked Universe and certain subdivisions of the Tracked Universe. The profits underlying the ratios are based on the Managers’ forecasts for each company that they track. The bullet points following the table summarise its main messages.
EV/EBITA 2024 2025 2026 AGVIT’s portfolio 7.8x 8.0x 7.3x Tracked Universe (246 stocks) 11.2x 11.1x 9.7x - 34 growth stocks 19.8x 17.5x 15.5x - 212 other stocks 10.5x 10.5x 9.1x - 113 stocks > 60% revenue withinUK 11.5x 11.2x 10.1x - 113 stocks > 60% revenue overseas 10.8x 10.7x 9.2x - 110 stocks > £600m market cap 12.0x 11.8x 10.4x - 136 stocks < £600m market cap 9.0x 9.0x 7.8x
-- AGVIT’s EV/EBITA ratio is higher for 2025 than for 2024, which implies
that profits earned by portfolio companies fell slightly in 2025. This
is consistent with the slowdown in activity through the second half of
the year as concern about the Budget grew. The decline in the ratio in
2026 compared with 2025 suggests that, based on the Managers’ bottom-up
estimates, profits will increase again in 2026.
-- The average EV/EBITA multiples of the portfolio are lower than those of
the Tracked Universe. This has been a consistent feature over the years
of portfolio’s run by the Managers and is consistent with their value
investment style.
-- The portfolio’s 8.0x EV/EBITA ratio for 2025 is much lower than the
average multiple of 14.7x at which takeover offers for DNSCI (XIC)
constituents have been made in the past four years.
-- Each year, the Managers identify a cohort of growth stocks within the
DNSCI (XIC). The 34 growth stocks for 2026 are on much higher multiples
than both the portfolio and the rest of the Tracked Universe.
-- The “smaller small” companies within the DNSCI (XIC) remain more
attractively valued than the “larger smalls”. This explains why AGVIT’s
portfolio has a relatively high exposure to the “smaller smalls”.
-- For more of the period since the EU referendum, overseas facing
companies have enjoyed higher valuations than have their peers that are
more reliant on the UK’s domestic economy. The gap between the two
narrowed in 2025 as sentiment towards the overseas cohort was affected
by the tariffs.
Outlook & Conclusion
The tariff announcements in April convulsed stockmarkets. The full effects on global trade and economic activity are still unclear, particularly when the status of some of the tariffs remains subject to legal challenge. What is clear is that companies, both in AGVIT’s portfolio and more widely, are incurring extra cost when exporting to the US. This is another factor in the broad theme of deglobalisation, which has developed since the pandemic as geopolitical tensions have intensified. The implication for AGVIT is a more uncertain outlook for its cohort of investee companies that generate their revenues outside the
Despite the tariff shock, equity valuations have recovered well from the April nadir. Returns have been particularly good for the group of companies seen to be benefiting from AI. As 2025 ended, the hopes and valuations for the AI leaders were very high, but some caution is merited. The business models of the US technology giants are no longer capital light since AI development necessitates significant investment in computing power and infrastructure. More broadly, the US economy is becoming increasingly reliant on AI, with growth driven by the investment boom and with buoyant equity prices supporting the wealth effect. Furthermore, it is not clear what the returns on the investment will prove to be or who will emerge the eventual winners of the AI arms race, as the US technology giants compete with each other and with Chinese rivals. In the meantime, the effects of AI on companies more broadly are as yet unclear. Some business models will be challenged and it is important for the Managers to consider where these threats lie. On the other hand, it is also important to consider the productivity gains that AI promises. Despite what the relative valuations might suggest, the upside from AI investment is unlikely to be confined to the companies currently deploying the capital – it is plausible that AGVIT’s portfolio holdings can also benefit.
The more significant near term influence on the fortunes of small
-- The private sector in the UK has deleveraged meaningfully over two
decades – the ratio of private non financial debt to GDP is back to the
levels last seen in 2000. Financial risk today is therefore reduced and
there is the potential to re-leverage in the future. While many
companies are choosing to deploy surplus capital on share buy-backs at
present, a pick-up in investment would be good for growth of profits and
the economy in general.
-- The recent Budget, while unhelpfully late in the year, was not as
threatening to economic activity as feared. The Chancellor tested her
fiscal rules by deferring most tax increases until later in the
parliament. This pragmatism gives the economy breathing space,
especially as government spending does increase in the near term. One
can debate the merits of such policies, but at the margin they bode well
for economic activity.
-- Inflation in the UK remains stickier than elsewhere but does seem to be
on a downward path. This has given the Bank of England scope to reduce
interest rates, which again should be supportive of near term economic
activity.
So there is good reason to believe that the
The attractiveness of this combination is being recognised by more than the Managers. The elevated rate of M&A activity shows that other companies and private equity, particularly from overseas, understand the value on offer among the constituents of the DNSCI (XIC). At the same time, traditional holders of
The Managers' value investment philosophy, understanding of the investee companies and active engagement are well suited to the current opportunity in small
This optimism is further supported by AGVIT’s structural advantages. The gearing from the ZDP Shares can enhance the investment performance of the portfolio. It can also benefit growth in the dividends paid to AGVIT’s Ordinary Shareholders. The underlying resilience of the investee companies suggests that dividends can continue to grow. Finally, the closed-end nature of an investment trust affords the Managers a longer term investment horizon, allowing them to take advantage of concerns about illiquidity, to engage constructively and to support investee companies. The aim here, as always, is the improvement of investment returns for Shareholders.
Managers
FINANCIAL HIGHLIGHTS
TOTAL RETURN PERFORMANCE
Period to
Ordinary Share ZDP Share
Total Assets1 NAV2 Share Price3 NAV4 Share Price5
------------ ------------ ------------ ------------ ------------
Six months 0.0% -1.5% 2.7% 3.5% 6.5%
Twelve months 5.0% 4.0% 5.4% 7.0% 8.0%
Since
Inception
(including 2.6% -0.3% -12.5% 10.7% 15.0%
launch
costs)18
Since Launch
(excluding 4.3% 1.8% -12.5% 10.7% 15.0%
launch
costs)18
The ZDP Share NAV total return is on an Articles basis (see Glossary).
ORDINARY SHARE
Net Asset Value per Share Discount/ ZDP:Equity
Share (Premium)6,7
Price Gearing Ratio9
Capital ------------ ----------- ------------ ------------
31 December 2025 93.8p 81.5p 13.1% 43.9%
30 June 2025 99.6p 83.5p 16.2% 40.0%
31 December 2024 95.9p 83.0p 13.4% 40.1%
At inception an Ordinary Share had a NAV of 100p and a ZDP:Equity Gearing Ratio of 37.5%.
Revenue Ordinary Special Dividends Retained Revenue
Dividends per Reserves
Return per
per Share Share per Share16
Share
Revenue ------------ ----------- ------------ ------------
Six months to
3.26p 1.56p - 2.70p
31 December 2025
Six months to
3.24p 1.50p - 1.74p
31 December 2024
Year to
6.85p 5.00p 0.85p 1.00p
30 June 2025
ZERO DIVIDEND PREFERENCE SHARE (ZDP SHARE)
Net Asset Return per Projected Gross
Value per Share Discount / Final
Share Price (Premium) Share Cumulative Redemption
Cover13 Yield15
----------- ---------- ------------ ----------- ------------ ------------
31
December 109.9p 115.0p (4.6)% 3.8p 2.0x 6.3%
2025
30 June 106.2p 108.0p (1.7)% 7.1p 2.0x 6.8%
2025
31
December 102.6p 106.5p (3.8)% 3.5p 2.0x 6.5%
2024
At inception a ZDP Share had a NAV of 100p, a Projected Final Cumulative Cover of 2.0x, and a Redemption Yield of 7.0%.
HURDLE RATES 10
Ordinary Shares ZDP Shares
Annualised Hurdle Rates to return Annualised Hurdle Rates
to return
100p Share Price Zero Value 160.58p Zero Value
---------- ------------ ------------ ------------ ------------
At 31 December 4.3% 2.0% -12.5% -12.5% -61.4%
2025
30 June 2025 3.6% 1.7% -11.8% -11.8% -58.3%
Inception18 3.0% 3.0% -10.3% -10.3% -52.9%
REDEMPTION YIELDS & TERMINAL NAVs
(ORDINARY SHARES) AS AT
Capital Annualised Redemption Yields14
Growth (per
annum) Dividend Growth (per annum)
-20.0% -10.0% +0.0% +10.0% +20.0% Terminal
NAV17
------------ ----------- ------------ ------------ ------------ ------------ ------------
-20.0% -42.4% -34.2% -25.7% -17.1% -8.4% 0.0p
-10.0% -24.9% -21.3% -16.6% -10.8% -4.0% 10.3p
+0.0% -0.1% 1.5% 3.7% 6.6% 10.4% 66.5p
+10.0% 15.3% 16.5% 18.0% 20.0% 22.7% 154.7p
+20.0% 28.5% 29.4% 30.6% 32.1% 34.2% 287.7p
The valuation statistics in the tables above are projected, illustrative and do not represent profit forecasts. There is no guarantee these returns will be achieved.
1-18
Refer to Note 2, Alternative Performance Measures, Glossary and the Company’s Annual Report for the period ended
INTERIM MANAGEMENT REPORT
A review of the half year and the outlook for the Company can be found in the Chairman’s Statement and the Managers’ Report.
Risks and Uncertainties
The Directors have a process for identifying, evaluating and managing the principal and emerging risks faced by the Company. This process was in operation during the six months to
The principal risks faced by the Company relate to: significant fall in capital performance; market risk factors affecting portfolio management and/or investment performance; political and taxation changes outwith the Company's control; structural conflicts of interest between the objectives of the Ordinary and ZDP Shareholders; significant fall in revenue generation from the portfolio; significant loss of investment management personnel; failure to meet the continuing obligations associated with regulatory risks; and cyber risk. An explanation of these risks and how they are managed can be found in the Strategic Report contained within the 2025 Annual Report. These principal risks and uncertainties continue to apply as disclosed in the 2025 Annual Report and as updated by the Managers' Report in these interim statements.
Going Concern
The Audit Committee has undertaken and documented an assessment of whether it is appropriate for the Company to adopt the going concern basis of accounting. This assessment was for the period of at least 12 months from the date of approval of the financial statements. The Committee reported the results of its assessment to the Board.
The Company’s business activities, capital structure, planned life and borrowing facility, together with the factors likely to affect its development and performance, are set out in the 2025 Annual Report. In addition, the 2025 Annual Report includes the Company’s objectives, policies and processes for managing its capital, its financial risk, details of its financial instruments and its exposures to credit risk and liquidity risk. The Company’s assets comprise mainly readily realisable equity securities, which, if necessary, can be sold to meet any funding requirements, though short-term funding flexibility can typically be achieved through the use of the bank overdraft facility. The Directors are satisfied that the Company has adequate financial resources to enable it to meet its day-to-day working capital requirements and continue to adopt the going concern basis in preparing the financial statements.
DIRECTORS’ RESPONSIBILITY STATEMENT
The Directors confirm that, to the best of their knowledge:
(i)
the condensed set of financial statements has been prepared in accordance with Financial Reporting Standard 104 “Interim Financial Reporting”
and gives a true and fair view of the state of affairs of the Company and of the assets, liabilities, financial position and net return of AGVIT, as at
(ii) the Half Yearly Report includes a fair review of information required by:
(a) DTR 4.2.7R of the Disclosure Guidance and Transparency Rules, being an indication of important events during the period to
(b) DTR 4.2.8R of the Disclosure Guidance and Transparency Rules, being disclosure of related party transactions and changes therein.
(iii) the Half Yearly Report, taken as a whole, is fair, balanced and understandable and provides information necessary for Shareholders to assess the Company’s performance, objective and strategy.
On behalf of the Board
Chairman
The Income Statement, Reconciliation of Movements in Shareholders’ Funds, Balance Sheet and Cash Flow Statement are set out below:-
INCOME STATEMENT
For the six months to
(unaudited)
Revenue Capital Total
£’000 £’000 £’000
Realised net gains on sales - 3,151 3,151
Movement in fair value - (6,428) (6,428)
-------- -------- --------
Net losses on investments - (3,277) (3,277)
Investment income 3,859 247 4,106
Other income 18 - 18
Investment management fee (Note 3) (166) (387) (553)
Portfolio transaction costs - (106) (106)
Other expenses (209) - (209)
-------- -------- --------
Net return before finance costs and tax 3,502 (3,523) (21)
Finance costs:
Appropriation to ZDP Shares (Note 8) - (1,517) (1,517)
Interest expense and overdraft fee (1) (4) (5)
-------- -------- --------
Return on ordinary activities before tax 3,501 (5,044) (1,543)
Tax on ordinary activities - - -
-------- -------- --------
Return attributable to equity shareholders 3,501 (5,044) (1,543)
====== ======= =======
Returns per Ordinary Share (Note 5) 3.26p (4.70)p (1.44)p
On
INCOME STATEMENT
For the period
(unaudited)
Revenue Capital Total
£’000 £’000 £’000
Realised net gains on sales - 1,342 1,342
Movement in fair value - (6,043) (6,043)
-------- -------- --------
Net losses on investments - (4,701) (4,701)
Investment income 3,683 - 3,683
Other income 148 - 148
Investment management fee (Note 3) (165) (386) (551)
Portfolio transaction costs1 - (776) (776)
Other expenses (183) - (183)
-------- -------- --------
Net return before finance costs and tax 3,483 (5,863) (2,380)
Finance costs:
Appropriation to ZDP Shares (Note 8) - (1,418) (1,418)
Interest expense and overdraft fee (1) (3) (4)
-------- -------- --------
Return on ordinary activities before tax 3,482 (7,284) (3,802)
Tax on ordinary activities (6) - (6)
-------- -------- --------
Return attributable to equity shareholders 3,476 (7,284) (3,808)
====== ======= =======
Returns per Ordinary Share (Note 5) 3.24p (6.79)p (3.55)p
1
Portfolio transaction costs in the period to
INCOME STATEMENT
For the period
(audited)
Revenue Capital Total
£’000 £’000 £’000
Realised net gains on sales - 2,742 2,742
Movement in fair value - (3,804) (3,804)
-------- -------- --------
Net losses on investments - (1,062) (1,062)
Investment income 7,879 - 7,879
Other income 174 - 174
Investment management fee (Note 3) (320) (746) (1,066)
Portfolio transaction costs1 - (847) (847)
Other expenses (369) - (369)
-------- -------- --------
Net return before finance costs and tax 7,364 (2,655) 4,709
Finance costs:
Appropriation to ZDP Shares (Note 8) - (2,859) (2,859)
Interest expense and overdraft fee (1) (4) (5)
-------- -------- --------
Return on ordinary activities before tax 7,363 (5,518) 1,845
Tax on ordinary activities (6) - (6)
-------- -------- --------
Return attributable to equity shareholders 7,357 (5,518) 1,839
====== ======= =======
Returns per Ordinary Share (Note 5) 6.85p (5.14)p 1.71p
1
Portfolio transaction costs in the period to
RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS’ FUNDS
For the six months to
(unaudited)
Share Share Special Capital Revenue
capital Premium reserve reserve reserve Total
£’000 £’000 £’000 £’000 £’000 £’000
Balance as at 30 June 2025 1,073 - 105,621 (5,518) 5,747 106,923
Return on ordinary - - - (5,044) 3,501 (1,543)
activities after tax
Equity dividends paid - - - - (4,669) (4,669)
(Note 4)
-------- -------- -------- -------- -------- --------
Balance as at 31 December 1,073 - 105,621 (10,562) 4,579 100,711
2025
====== ====== ====== ====== ====== ======
RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS’ FUNDS
For the period
(audited)
Share Share Special Capital Revenue
capital Premium reserve reserve reserve Total
£’000 £’000 £’000 £’000 £’000 £’000
Balance as at 29 March - - - - - -
2024
Return on ordinary - - - (5,518) 7,357 1,839
activities after tax
Equity dividends paid - - - - (1,610) (1,610)
(Note 4)
Issue of Ordinary Shares 1,073 106,258 - - - 107,331
Ordinary Share issue - (592) - - - (592)
costs
Share Premium - (105,621) 105,621 - - -
cancellation
Cost of Share Premium - (45) - - - (45)
cancellation
Issue of Redeemable 50 - - - - 50
Shares
Redemption of Redeemable (50) - - - - (50)
Shares
-------- -------- -------- -------- -------- --------
Balance as at 30 June 1,073 - 105,621 (5,518) 5,747 106,923
2025
====== ====== ====== ====== ====== ======
RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS’ FUNDS
For the period
(unaudited)
Share Share Special Capital Revenue
capital Premium reserve reserve reserve Total
£’000 £’000 £’000 £’000 £’000 £’000
Balance as at 29 March - - - - - -
2024
Return on ordinary - - - (7,284) 3,476 (3,808)
activities after tax
Equity dividends paid - - - - - -
(Note 4)
Issue of Ordinary Shares 1,073 106,258 - - - 107,331
Ordinary Share issue - (592) - - - (592)
costs
Share Premium - (105,616) 105,616 - - -
cancellation
Cost of Share Premium - (50) - - - (50)
cancellation
Issue of Redeemable 50 - - - - 50
Shares
Redemption of Redeemable (50) - - - - (50)
Shares
-------- -------- -------- -------- -------- --------
Balance as at 31 December 1,073 - 105,616 (7,284) 3,476 102,881
2024
====== ====== ====== ====== ====== ======
BALANCE SHEET
As at
( unaudited )
30 June
31 December 2025 31 December 2024
Fixed assets 2025
£’000 £’000
£’000
Investments at fair value through 143,515 147,998 143,332
profit or loss (Note 6)
-------- -------- --------
Current assets
Debtors 726 716 550
Cash at bank 783 1,049 400
-------- -------- --------
1,509 1,765 950
-------- -------- --------
Creditors(amounts falling due
within one year)
Other creditors (65) (109) (111)
-------- -------- --------
(65) (109) (111)
-------- -------- --------
Net current assets 1,444 1,656 839
-------- -------- --------
Total assets less current 144,959 149,654 144,171
liabilities
Creditors(amounts falling due
after more than one year) (44,248) (42,731) (41,290)
ZDP Shares (Note 8)
-------- -------- --------
TOTAL NET ASSETS 100,711 106,923 102,881
====== ====== ======
CAPITAL AND RESERVES: EQUITY
INTERESTS
Share Capital:
1,073 1,073 1,073
Ordinary Shares (Note 9)
Reserves:
Special reserve 105,621 105,621 105,616
Capital reserve (10,562) (5,518) (7,284)
Revenue reserve 4,579 5,747 3,476
-------- -------- --------
TOTAL SHAREHOLDERS’ FUNDS 100,711 106,923 102,881
====== ====== ======
Net Asset Value per Ordinary 93.83p 99.62p 95.85p
Share(Note 7)
Net Asset Value per ZDP Share 109.94p 106.17p 102.59p
(Note 7)
Approved and authorised for issue by the Board of Directors on 27 January 2026 and signed on its behalf by:
Chairman
CASH FLOW STATEMENT
For the six months ended
( unaudited )
Six months to 29 March 2024 to 31 29 March 2024 to 30
December 2024 June 2025
31 December 2025
£’000 £’000
£’000
Net cash inflow from 3,334 2,603 5,979
operating activities
Investing activities
Purchases of (19,464) (23,426) (33,742)
investments
Sales of investments 20,538 7,363 16,608
-------- -------- --------
Cash inflow/(outflow)
from investing 1,074 (16,063) (17,134)
activities
-------- -------- --------
Financing activities
Proceeds from issue - 2,651 2,651
of Ordinary Shares
Proceeds from issue - 12,182 12,182
of ZDP Shares
Share issue costs - (969) (969)
paid
Share premium
cancellation costs - - (45)
paid
Equity dividends paid (4,669) - (1,610)
Interest and fees (5) (4) (5)
paid
-------- -------- --------
Cash (outflow)/inflow
from financing (4,674) 13,860 12,204
activities
-------- -------- --------
Change in cash during (266) 400 1,049
the period
-------- -------- --------
Cash at the start of 1,049 - -
the period
Cash at the end of 783 400 1,049
the period
-------- -------- --------
SUMMARY NOTES TO THE FINANCIAL STATEMENTS
1. Accounting Policies
The financial statements have been prepared on a going concern basis and in accordance with the Financial Reporting Standard 104 and the AIC’s Statement of Recommended Practice “Financial Statements of
2. ALTERNATIVE PERFORMANCE MEASURES
Alternative Performance Measures (APMs) are measures that are not defined under the requirements of FRS 102. The Company believes that APMs, referred to within “Financial Highlights”, provide Shareholders with important information on the Company. These APMs are also a component of the internal management reporting to the Board. A glossary of the APMs can be found below and on pages 25 and 26 of the half year report.
3. INVESTMENT MANAGEMENT FEE
The Managers,
4. DIVIDENDS
Six months to 31 29 March 2024 to 29 March 2024 to 30
December 2025 31 December 2024 June 2025
£’000 £’000 £’000
Amounts recognised as
distributions to equity
holders: In respect of
the period to 30 June
2025:
First interim dividend
of 1.50p (paid on 10 - 1,610
March 2025)
Second interim dividend
of 3.50p (paid on 28 3,757 - -
August 2025)
Special dividend of
0.85p (paid on 28 August 912 - -
2025)
-------- -------- --------
Total 4,669 - 1,610
-------- -------- --------
The first interim dividend for the year ending
Deducting the first interim dividend from the Company's revenue reserves at
5. RETURNS PER SHARE
Six months to 31 29 March 2024 to 29 March 2024 to
Period ended: December 2025 31 December 2024 30 June 2025
£’000 £’000 £’000
Net return £(1,543,000) £(3,808,000) £1,839,000
Weighted average Ordinary 107,331,000 107,331,000 107,331,000
Shares in issue
-------- -------- --------
Return per Ordinary Share (1.44)p (3.55)p 1.71p
-------- -------- --------
Appropriation to ZDP Shares £1,517,000 £1,418,000 £2,859,000
Weighted average ZDP Shares 40,249,000 40,249,0000 40,249,000
in issue
-------- -------- --------
Return per ZDP Share 3.77p 3.52p 7.10p
-------- -------- --------
6. INVESTMENTS AT FAIR VALUE
In accordance with FRS 102 and FRS 104, fair value measurements have been classified using the fair value hierarchy.
Level 1 - using unadjusted quoted prices for identical instruments in an active market.
Level 2 - using inputs, other than quoted prices included within Level 1, that are directly or indirectly observable based on market data.
Level 3 - using inputs that are unobservable for which market data is unavailable.
All investments are held at fair value through profit or loss. As at the reporting dates all investments are traded on a recognised stock exchange and have been classified as Level 1.
7. NET ASSET VALUE (“NAV”) PER SHARE
The Net Assets and the Net Asset Value per Share attributable to the Ordinary Shares and ZDP Shares as at
Ordinary Shares ZDP Shares Total Assets
Net assets attributable £100,711,000 £44,248,000 £144,959,000
Number of Shares 107,331,000 40,249,000 147,580,000
------------ ------------ ------------
Net Asset Value per Share (a) 93.83p 109.94p 98.22p
Dividend reinvestment factor8 (b) 1.062892 - 1.044065
------------ ------------ ------------
NAV per Share on a total return basis 99.73p 109.94p 102.55p
at 31 December 2025 (c) = (a) x (b)
NAV per Share on a total return basis 101.27p 106.17p 102.58p
at 30 June 2025 (d)
------------ ------------ ------------
Total Return performance (c) ÷ (d) - 1 -1.5% 3.5% 0.0%
------------ ------------ ------------
8. ZERO DIVIDEND PREFERENCE SHARES
30 June
31 December 2025 31 December 2024
Period ended: 2025
£’000 £’000
£’000
Opening Balance 42,731 - -
Issue of ZDP Shares - 40,249 40,249
Capitalisation of issue costs of - (377) (377)
ZDP Shares
Issue costs amortised during the 23 43 22
period
Capital growth of ZDP Shares 1,494 2,816 1,396
------------ ------------ ------------
Closing Balance 44,248 42,731 41,290
------------ ------------ ------------
9. SHARE CAPITAL
Shares £’000
Issued
Ordinary Shares of 1p each 107,331,000 1,073
ZDP Shares of 1p each 40,249,000 402
------------ ------------
Total issued and allotted 147,580,000 1,475
------------ ------------
There have been no changes in the issued share capital since the launch of the Company on
10. Related Party Transactions
Under
11. Further Information
The foregoing do not constitute statutory accounts of the Company (as defined in section 434(4) of the Companies Act 2006). The financial information for the period ended
Certain statements in this report are forward looking. By their nature, forward looking statements involve a number of risks, uncertainties or assumptions that could cause actual results or events to differ materially from those expressed or implied by those statements. Forward looking statements regarding past trends or activities should not be taken as representation that such trends or activities will continue in the future. Accordingly, undue reliance should not be placed on forward looking statements.
Glossary of
Net Asset Value, also described as Shareholders’ Funds, is the value of total assets less all liabilities. The Net Asset Value or NAV per Ordinary Share is calculated by dividing this amount by the total number of Ordinary Shares in issue.
Net Asset Value (ZDP Share) is the value of the entitlement to the ZDP Shareholders. The Net Asset Value or NAV per ZDP Share is calculated by dividing this amount by the total number of ZDP Shares in issue.
Return per Share is the return in the period attributable to the Ordinary Shares or to the ZDP Shares .
Revenue Return per Share is the revenue earned in the period divided by the weighted average number of Ordinary Shares in Issue.
Glossary of Alternative Performance Measures
1.
Total Assets Total Return
- represents the return of the combined funds of the Ordinary Shareholders and ZDP Shareholders assuming that dividends paid to Ordinary Shareholders were reinvested at the NAV per Ordinary Share at the close of business on the day the Ordinary Shares were quoted ex dividend. Total Assets less current liabilities as at
2.
Ordinary Share NAV Total Return
– represents the theoretical return on the NAV per Ordinary Share, assuming that dividends paid to Shareholders were reinvested at the NAV per Ordinary Share at the close of business on the day the shares were quoted ex dividend. The NAV per Ordinary Share as at
3. Ordinary Share Price Total Return
– represents the theoretical return to an Ordinary Shareholder, on a closing market price basis, assuming that all dividends received were reinvested, without transaction costs, into the Ordinary Shares of the Company at the close of business on the day the shares were quoted ex dividend. The Ordinary Share price as at
4. ZDP Share NAV Total Return
– represents the return on the entitlement value of a ZDP Share. The ZDP Share NAV, on an Accounts basis, at
5. ZDP Share Price Total Return
– represents the return to a ZDP Shareholder, on a closing market price basis. The ZDP Share price as at
6. Discount is the amount by which the stockmarket price per Share is lower than the NAV per Share. The discount is normally expressed as a percentage of the NAV per Share.
7. Premium is the amount by with the stockmarket price per Share exceeds the NAV per Share. The premium is normally expressed as a percentage of the NAV per Share.
Other Glossary Terms
8. Dividend Reinvestment Factor is used to calculate total return performance by including the effect of dividends from the Company. It is calculated on the assumption that dividends paid by the Company were reinvested into Ordinary Shares of the Company at the NAV per Ordinary Share or the share price, as appropriate, on the day the Ordinary Shares were quoted ex dividend. See note 7.
9. ZDP:Equity Gearing Ratio is calculated by dividing the asset value attributable to the ZDP Shares by the asset value attributable to the Ordinary Shares.
10. Hurdle Rate is the rate of capital growth per annum in the Company’s investment portfolio to return a stated amount per Share at the planned winding-up date.
11. Ongoing Charges represents the percentage per annum of investment management fees and other operating expenses to the average published Ordinary Shareholders’ NAV over the period.
12. Portfolio Turnover is calculated by summing the lesser of purchases and sales over the relevant period divided by the average portfolio value for that period.
13. Projected Final Cumulative Cover is the ratio of the total assets of the Company, as at the calculation date, to the sum of the assets required to pay the final capital entitlement of 160.58p per ZDP Share on the planned winding-up date, future estimated investment management fees charged to capital, and estimated winding-up costs.
14. Redemption Yield (Ordinary Share) is the annualised rate at which projected future income and capital cash flows (based on assumed future capital/dividend growth rates) are discounted to produce an amount equal to the share price at the date of calculation.
15. Redemption Yield (ZDP Share) is the annualised rate at which the planned future payment of capital is discounted to produce an amount equal to the share price at the date of calculation.
16. Retained Revenue Reserves per Share is a cumulative figure of revenue earned but not distributed and is calculated after accounting for dividends from the Company, including those not yet recognised in the financial statements.
17. Terminal NAV (Ordinary Share) is the projected NAV per Ordinary Share at the planned winding-up date at a stated rate of capital growth in the Company’s investment portfolio after taking into account the final capital entitlement of the ZDP Shares, future estimated costs charged to capital, and estimated winding-up costs.
18. Key dates
Company Incorporation Date
–
Inception Date
–
Launch/Listing Date
– is
Planned Winding-Up Date
–
CONTACT:
Aberforth Partners LLP , Secretaries
ANNOUNCEMENT ENDS
