BlackRock Income and Growth Investment Trust Plc - Final Results
LEI: 5493003YBY59H9EJLJ16
Annual Report and Financial Statements
Performance record
As at As at
31 October 31 October
2025 2024
Net assets (£’000)1 46,715 43,760
Net asset value per ordinary share (pence) 245.97 222.22
Ordinary share price (pence) 219.00 193.50
Discount to net asset value2 11.0% 12.9%
FTSE All-Share Index3 11986.71 9785.37
========= =========
For the year For the year
ended ended
31 October 31 October
2025 2024
Performance (with dividends reinvested)
Net asset value per share2 14.3% 18.1%
Ordinary share price2 17.3% 13.2%
FTSE All-Share Index3 22.5% 16.3%
========= =========
For the period For the period
since since
1 April 20124 to 1 April 20124 to
31 October 31 October
2025 2024
Performance since 1 April 20124 (with
dividends reinvested)
Net asset value per share2 171.5% 137.6%
Ordinary share price2 170.2% 130.3%
FTSE All-Share Index3 184.6% 132.3%
========= =========
For the year For the year
ended ended
31 October 31 October Change
2025 2024 %
Revenue
Net profit after taxation 1,400 1,454 -3.7
(£’000)
Revenue earnings per ordinary 7.23 7.20 +0.4
share (pence)5
--------------- --------------- ---------------
Dividends (pence)
Interim 2.70 2.70 –
Final 5.00 4.90 +2.0
--------------- --------------- ---------------
Total dividends payable/paid 7.70 7.60 +1.3
========= ========= =========
1 The change in net assets reflects net revenue and capital profits, the purchase of the Company’s own shares and dividends paid during the year.
2
Alternative Performance Measures, see Glossary in the Company’s Annual Report for the year ended
3 Benchmark Index.
4
Since BlackRock’s appointment as Investment Manager on
5
Further details are given in the Glossary in the Company’s Annual Report for the year ended
Chairman’s statement
Dear Shareholder
Overview
2025 was one of the most tumultuous years in recent memory. The first half of the year was shaped by significant volatility across global markets. Ongoing and fluctuating levels of geopolitical tensions, including conflicts in
Given the volatility experienced, our portfolio managers approached this challenging backdrop with caution. However, as you will read in their report which follows, they have also sought to adjust the portfolio in response to the changing landscape. They increased portfolio exposure to Aerospace & Defence, a previous underweight, and repositioned some of the portfolio’s domestic exposure as the types of company expected to perform well in this environment changed. Their approach meant that this year the portfolio delivered a double-digit absolute return for shareholders, but one which underperformed our benchmark index during the financial year. We are all very conscious of that underperformance and you will see from the Manager Report where they see it coming from and why they believe it is unlikely to continue into the future.
Performance
During the year the Company’s Net Asset Value (NAV) per share returned 14.3%. By comparison, the Company’s Benchmark Index, the FTSE All-Share Index, returned 22.5%. At the share price level, the Company returned 17.3% over the period as our discount narrowed from 12.9% at the start of the year to 11.0% as at
As at
Further details of the key contributors and detractors from performance, and the portfolio managers’ views on the outlook for the forthcoming year, can be found in their report which follows.
Revenue earnings and dividends
Despite the market’s volatility the Company’s earnings remain resilient, with revenue earnings per share for the year ended
One of the reasons the Company is in a position to increase dividends in this way is that the Company’s investment trust structure allows it to retain up to 15% of total revenue each year to build up reserves which may be carried forward and used to pay dividends during leaner times. As at
Share price discount and Buybacks
The Directors recognise that the discount to NAV at which the Company’s shares trade is an important factor to investors and have therefore sought to use the Company’s share buy back powers to seek to mitigate increases in the discount between the share price and the underlying NAV.
In using these powers during the year, a total of 700,818 ordinary shares were purchased at an average price of
The Board’s existing authority to buy back up to 14.99% of the Company’s issued share capital (excluding treasury shares) will expire at the conclusion of the 2026 Annual General Meeting and a resolution will be put to shareholders to renew the authority at that meeting. Currently, ordinary shares representing up to 33% of the Company’s issued ordinary share capital can be allotted as new ordinary shares or sold from treasury and the Board will also seek to renew this power.
Gearing
One of the advantages of the investment trust structure is that the Company can use gearing with the objective of increasing portfolio returns. The Company operates a flexible gearing policy which depends on prevailing market conditions and is subject to a maximum level of 20% of net assets at the time of investment. Net gearing during the financial year did not exceed that level. As at
Board composition
At the date of this report the Board consists of four independent Non-executive Directors, two of whom have recently joined the Board as part of its ongoing succession planning. Following a search to identify a new Non-executive Director during the year, the Board was pleased to announce the appointment of
In accordance with best practice and good corporate governance, the Directors continue to submit themselves for annual re-election. Further information on the Board’s policy on board diversity, director tenure and succession planning can be found in the Directors’ Report in the Company’s Annual Report for the year ended
Corporate governance
The
As an investment company, the Company reports against the
As it does each year, and as required by the Corporate Governance Code, the Company undertook a comprehensive Board evaluation this year. The overall conclusion highlighted the effectiveness of the Board, and the skills, expertise and commitment of the Directors.
Annual general meeting
This year’s AGM will be held on Tuesday,
We hope you can attend this year’s AGM. The Board very much looks forward to meeting shareholders and answering any questions you may have on the day. We also value hearing shareholders’ thoughts and feedback on the Company on a more informal basis following the AGM. If you hold your shares through a platform or nominee, you will need to contact them and ask them to appoint you as a representative in respect of your shares in order to attend, speak and vote at the AGM.
For those shareholders who are unable to attend the meeting in person, but who wish to follow the AGM proceedings, you can do so via a live webinar. Details on how to register, together with access instructions will be available shortly on the Company’s website at: www.blackrock.com/uk/brig or by contacting the Company Secretary at cosec@blackrock.com. It is not possible to attend, speak or vote via this medium which is solely intended to provide shareholders with the ability to watch the proceedings, which we hope shareholders will find helpful if required.
Additionally, if you are unable to attend you can still exercise your right to vote by proxy or appoint a representative to attend in your place. Details of how to do this are included on the AGM Proxy Card provided to shareholders with the annual report.
Communication with shareholders
We appreciate how important access to regular information is to our shareholders. To supplement our Company website, we offer shareholders the ability to sign up to the Trust Matters newsletter which includes information on the Company and other news, views and insights. Further information on how to sign up is included on the inside front cover of the Company’s Annual Report for the year ended
Outlook
Our portfolio managers anticipate further volatility in 2026 and recent events regarding
The Board has been reassured to see our portfolio managers enter 2026 with renewed optimism about the breadth of opportunity on offer in the
Chairman
Investment Manager’s report
Performance
For the year ended
Market review
Over the twelve months to
Early 2025 brought significant shifts in market leadership by geography, sector and style; US equities retreated while
Through spring, President Trump’s “Liberation Day” tariff announcements triggered the largest spike in 30-year
Mid-year delivered one of the strongest rallies in recent memory, supported by trade negotiations and multiple bilateral deals that reinforced risk-on sentiment. September defied its historical reputation as the weakest month, delivering the best gains in fifteen years after the Federal Reserve’s first rate cut since 2024 and continued enthusiasm for AI. October extended this momentum but introduced fresh volatility as tariff rhetoric resurfaced and
For the period, global equities delivered solid gains as the FTSE All-Share Index returned +22.5% whilst the S&P 500 returned +21.5% and the Stoxx 600 returned +11.9%, underscoring resilience amid policy uncertainty and geopolitical shocks. Index returns were highly concentrated, with a small number of stocks contributing a disproportionate share of benchmark performance.
Contributors to and detractors from performance
Against this backdrop, the portfolio delivered a solid positive absolute return over the period, although it underperformed its benchmark in a highly concentrated market where a small number of stocks dominated index returns. The narrowness of the
We noted in the interim report that the underweight positioning in the Aerospace and Defence sector was a significant detractor from relative performance. This reflected major upgrades at Rolls-Royce and supported by increased investor interest following announcements around European defence spending. We discuss this change further in our transactions section.
A significant detractor from performance was Tate & Lyle , where the combination of tariff announcements, weakening US consumer confidence and a stagnant innovation pipeline amongst their customers led to unexpected profit weakness. Confronted with a challenging geopolitical backdrop, not dissimilar to COVID-19, their customers have slowed innovation which has exacerbated an already weak volume backdrop. Whilst we had previously reduced the position, we have retained it as we continue to believe the move towards a higher growth speciality business is the correct one, and will result in significant capital appreciation over time, but recognise the journey is non-linear.
Another significant detractor was WH Smith , which sold off following the announcement that the company has identified a significant ‘overstatement’ of the profitability of its North American division. This was entirely unexpected and caused the shares to fall c.40% on the day. This was a material breach of the investment thesis and we have subsequently sold the position.
RELX has enjoyed a significant acceleration in revenue growth over the past three years, benefitting from the launch of new AI capabilities, most notably in its legal division. However, the shares have recently derated sharply amid concerns that the company will, at some point, be disrupted by artificial intelligence (AI), a narrative that is very difficult to categorically disprove and that has impacted the wider information services and software names. We view AI as a source of both opportunity and threat and have focused our exposure to the theme in those companies that will benefit from the AI revolution. We strongly believe that AI will continue to be additive to RELX’s growth and as such, continue to have conviction in the position.
In Real Estate,
Segro
shares have underperformed over the year. Whilst rental growth has continued to be strong, the development pipeline has slowed due to lower business confidence, primarily as a result of the
Despite negative relative portfolio performance, the portfolio delivered a positive return where there were some bright spots. The portfolio benefitted from its holding in Standard Chartered which carried on its strong 2024 performance into 2025. The bank’s performance has been very strong, a combination of the bank’s ongoing transformation and a supportive rate backdrop enabling impressive earnings growth and cash distributions. The bank’s growing wealth channel remains a standout and most recent guidance has been upgraded for revenue growth to the top end of the previously guided 5-7% range.
3i Group
was one of the strongest contributors to portfolio returns over the 12 months to the end of October, supported by ongoing operational strength at its core asset, Action. Action has continued to deliver solid growth through store rollouts and robust underlying trading, although recent softness in like-for-like sales, particularly in
Lloyds Banking Group (Lloyds) had a good year with the shares rising almost 80% through the year as the potential for sizable cash returns has become more visible. Resolution of the motor commission investigation appears relatively benign while Lloyds continues to benefit from higher rates over the last two to three years feeding through to its profitability, which is still impacted by the low rate environment of 2020-2022. We had significantly increased the weighting in Lloyds towards the end of 2024 and early in 2025, benefitting the portfolio. Underweight positions, most notably in Diageo and Glencore , which the portfolio has zero exposure to, also contributed to performance as these shares underperformed.
Weir Group was another positive contributor to performance over the period, supported by the upbeat backdrop for mining activity, especially for copper and gold mining. The company’s innovation, strong aftermarket performance and recent mining software acquisitions are key drivers to the group’s growth potential.
Transactions
During the period, we purchased
BAE Systems
,
Later in the period, we also started a position in Babcock , which appears well placed to deliver further upgrades driven by international marine orders, growth in its nuclear division and exposure to NATO’s rearmament and training initiatives.
As we discussed in the performance section, we managed our portfolio exposure to the perception of AI disintermediation which remains a potential headwind. As part of this overall view, we sold the position in
Pearson
. The shares have performed strongly since entering the portfolio in 2021, primarily as execution across the business improved and early signs of investment began to pay dividends. Our thesis came under pressure in early 2025 as stricter immigration policies, notably in the US and
We sold our position in
SGS
following the announcement of potential merger with its peer, Bureau Veritas. Whilst this would have created the largest Testing and Inspection business globally, we sold our position as this was a significant departure from our investment thesis which was predicated on the self-help potential on offer rather than a large deal and complex integration. We have a high threshold for capital allocation and remain cautious of large-scale M&A particularly when undertaken by a relatively new management team at a time of significant geopolitical uncertainty and tariff announcements. During the period we also sold
Hays
and
Big Yellow
. These changes partially reflect a further reduction in
We purchased a position in Intermediate Capital Group . The private capital specialist continues to deliver strong inflows and strategy performance. As discussed in the performance section, we added to Lloyds to reflect our view that the shares had been overly punished on fears relating to the motor finance commission liability and that the fundamentals of the bank remain attractive.
Gearing
Historically, we have managed the Company with a modest and consistent level of gearing, typically between 5-8% to enhance income generation and capital growth. However, as market volatility has picked up, we have been more active over the last two years, varying both the level of gearing and using a broader range (0-10%) depending on the opportunities or risks presenting themselves at the time. As at 31st October, the Company had employed net gearing of 6.1%.
Outlook
The outlook for investment markets continues to be driven by a complex interplay of elevated geopolitical uncertainty, easing monetary policy and strong thematic winds in AI, Defence and Financials sectors. The first half of 2025 saw global markets fall sharply as tariffs were threatened only to be followed by an impressive recovery as proposed tariff levels were lowered and their implementation delayed. However, tariffs remain a key source of market volatility with the potential for outsized impacts on specific industries and companies. Expectations of Fed rate cuts have consistently been pushed out this year. US President Trump’s unpredictability, whether tariff related or more generally, suggests volatility in both equity and bond markets is likely to remain elevated. These factors have also driven weakness in the US Dollar impacting companies with US Dollar earnings. Our response is to focus on those companies that have strong and sustainable competitive advantages alongside sufficient pricing power to navigate these uncertain times while seeking opportunities that may result from elevated volatility in markets.
The outlook for
The
The
We continue to focus the portfolio on cash generative businesses that we believe offer durable, competitive advantages as we believe these companies are best placed to drive superior returns over the long term. Whilst we anticipate economic and market volatility will persist throughout the year ahead, we expect that this will create opportunities; by seeking to identify the companies that strengthen their long-term prospects as well as attractive turnaround situations.
ADAM AVIGDORI AND
12 month performance attribution for the year ended
Sector Contribution to return1 Commentary
Allocation Selection2 Total Effect
The Company’s underweight
Basic Materials 0.15% 0.33% 0.48% exposure to Glencore
contributed to relative
performance.
The Company’s underweight
position in Health Care
Health Care 0.23% 0.04% 0.27% contributed positively to
relative performance
during the year.
The lack of exposure to
Technology 0.07% 0.00% 0.07% the Technology sector had
a marginal impact on
relative returns.
The underweight position
Oil & Gas 0.18% -0.19% -0.01% in the Oil & Gas sector
had a marginal impact on
relative returns.
Within Consumer Goods, the
Consumer Goods 0.05% -0.15% -0.10% overweight position in
Tate & Lyle detracted from
performance.
The lack of exposure to
Telecommunications -0.19% 0.00% -0.19% Telecommunications
detracted from
performance.
Sector allocation in the
Utilities sector, where
Utilities -0.28% 0.04% -0.24% the Company maintained an
underweight position,
negatively impacted
relative returns.
Financials weighed on
relative performance,
Financials 0.54% -2.68% -2.14% driven primarily by
holdings in Segro and
London Stock Exchange
Group.
The Company’s overweight
Consumer Services -0.48% -1.67% -2.15% exposure to WH Smith and
RELX negatively impacted
relative returns.
Within Industrials,
underweight exposure to
Aerospace and Defence
Industrials -0.35% -2.46% -2.82% names, notably,
Rolls-Royce and BAE
Systems detracted from
performance.
========= ========= =========
1 Due to the limitations of a static attribution methodology, the numbers quoted are indicative and not exact.
2 The interaction effect is included with stock selection.
Ten largest investments
Together, the Company’s ten largest investments represented 45.3% of the Company’s portfolio as at
1.
AstraZeneca
(2024: 1st)
Sector: Pharmaceuticals & Biotechnology
Market Value: £3,932,000
Share of investments: 7.9% (2024: 6.5%)
AstraZeneca is a leading multinational pharmaceutical and biotechnology company headquartered in
2.
RELX
(2024: 2nd)
Sector: Media
Market Value: £2,719,000
Share of investments: 5.5% (2024: 5.9%)
RELX is a global provider of information-based analytics and decision tools for professional and business customers across industries including science, healthcare, risk, and legal sectors. It leverages data and technology to deliver insights that help clients make better decisions, positioning itself as a critical partner in knowledge-driven markets.
3.
Shell
(2024: 3rd)
Sector:
Market Value: £2,353,000
Share of investments: 4.8% (2024: 5.7%)
Shell is one of the world’s largest integrated energy companies, operating across the oil and gas value chain, including exploration, production, refining, and marketing. It is actively transitioning towards cleaner energy solutions while maintaining a strong presence in traditional hydrocarbons, reflecting its strategic pivot in the evolving energy landscape.
4.
Standard Chartered
(2024: 9th)
Sector: Banks
Market Value: £2,124,000
Share of investments: 4.3% (2024: 3.2%)
Standard Chartered is a British multinational bank with a strong focus on
5.
Lloyds Banking Group
(2024: 43rd)
Sector: Banks
Market Value: £2,017,000
Share of investments: 4.1% (2024: 0.8%)
Lloyds Banking Group is one of the UK’s largest retail and commercial banks, providing a wide range of financial services including personal banking, insurance, and wealth management. It has a strong domestic franchise and is focused on digital transformation to enhance customer experience.
6.
Unilever
(2024: 7th)
Sector: Personal Goods
Market Value: £1,970,000
Share of investments: 4.0% (2024: 3.7%)
Unilever is a global consumer goods company with a diverse portfolio of well-known brands in food, beverages, personal care, and home care. With a significant presence in emerging markets, Unilever emphasises sustainability and innovation to drive growth and meet changing consumer preferences worldwide.
7.
HSBC
(2024: 5th)
Sector: Banks
Market Value: £1,917,000
Share of investments: 3.9% (2024: 4.1%)
HSBC is one of the world’s largest banking and financial services organisations, operating globally across
8.
Sector: Mining
Market Value: £1,834,000
Share of investments: 3.7% (2024: 4.5%)
9.
Reckitt
(2024: 14th)
Sector:
Market Value: £1,794,000
Share of investments: 3.6% (2024: 2.6%)
Reckitt Benckiser Group is a leading British multinational company specialising in consumer health, hygiene, and nutrition products. Its portfolio includes globally recognised brands such as Dettol, Nurofen, Durex, and Lysol. The group places strong emphasis on science-led innovation and brand strength to deliver long-term growth while addressing evolving consumer health and wellbeing needs across developed and emerging markets.
10.
3i Group
(2024: 6th)
Sector: Financial Services
Market Value: £1,727,000
Share of investments: 3.5% (2024: 4.1%)
3i Group is an international investment company focused on private equity and infrastructure investments. It aims to generate attractive returns by backing growth-oriented businesses and infrastructure projects, primarily in
All percentages reflect the value of the holding as a percentage of total investments.
Percentages in brackets represent the value of the holding as at
Distribution of investments as at
Analysis of portfolio by sector
Sector % of investments by market value Benchmark % Banks 13.5 14.2 Financial Services 10.5 5.3 Pharmaceuticals & Biotechnology 9.0 11.0 Oil & Gas Producers 6.6 9.0 Non-Life Insurance 6.4 0.8 Aerospace & Defence 6.2 6.5 Mining 5.5 0.4 Media 5.5 1.0 General Retailers 5.0 3.1 Household Goods & Home Construction 4.5 0.8 Real Estate Investment Trusts 4.0 2.2 Personal Goods 4.0 0.2 Support Services 3.6 2.9 Travel & Leisure 3.0 1.9 Life Insurance 2.7 2.5 Industrial Engineering 2.7 0.6 Tobacco 2.7 3.8 Electronic & Electrical Equipment 1.6 1.1 General Retailers 1.3 0.8 Food Producers 1.0 0.5 Beverages 0.7 2.3
Sources: BlackRock and LSEG Datastream.
Investment Size
Number of investments % of investments by market value
< £1m 20 26.2
£1m to £2m 16 47.2
£2m to £3m 4 18.7
£3m to £4m 1 7.9
Source: BlackRock.
List of investments as at
Market
value % of
£’000 investments
Banks
Standard Chartered 2,124 4.3
Lloyds Banking Group 2,017 4.1
HSBC 1,917 3.9
NatWest 595 1.2
--------------- ---------------
6,653 13.5
========= =========
Financial Services
3i Group 1,727 3.5
London Stock Exchange Group 1,191 2.4
Rosebank 881 1.8
Intermediate Capital Group 769 1.6
Ashmore Group 610 1.2
--------------- ---------------
5,178 10.5
========= =========
Pharmaceuticals & Biotechnology
AstraZeneca 3,932 7.9
GSK 566 1.1
--------------- ---------------
4,498 9.0
========= =========
Oil & Gas Producers
Shell 2,353 4.8
BP Group 893 1.8
--------------- ---------------
3,246 6.6
========= =========
Non-Life Insurance
Admiral Group 1,466 3.0
Hiscox 1,172 2.4
Lancashire Holdings 493 1.0
--------------- ---------------
3,131 6.4
========= =========
Aerospace & Defence
Rolls-Royce Holdings 1,427 2.9
Melrose Industries 597 1.2
BAE Systems 570 1.2
Babcock 459 0.9
--------------- ---------------
3,053 6.2
========= =========
Mining
Rio Tinto 1,834 3.7
Anglo American 914 1.8
--------------- ---------------
2,748 5.5
========= =========
Media
RELX 2,719 5.5
--------------- ---------------
2,719 5.5
========= =========
General Retailers
Next 1,158 2.3
Howden Joinery 804 1.6
Inchcape 565 1.1
--------------- ---------------
2,527 5.0
========= =========
Household Goods & Home Construction
Reckitt 1,794 3.6
Bellway 454 0.9
--------------- ---------------
2,248 4.5
========= =========
Real Estate Investment Trusts
Great Portland Estates 1,107 2.2
Segro 909 1.8
--------------- ---------------
2,016 4.0
========= =========
Personal Goods
Unilever 1,970 4.0
--------------- ---------------
1,970 4.0
========= =========
Support Services
Mastercard1 1,092 2.2
Rentokil Initial 704 1.4
--------------- ---------------
1,796 3.6
========= =========
Travel & Leisure
Compass Group 1,475 3.0
--------------- ---------------
1,475 3.0
========= =========
Life Insurance
Phoenix Group 1,359 2.7
--------------- ---------------
1,359 2.7
========= =========
Industrial Engineering
Weir Group 1,356 2.7
--------------- ---------------
1,356 2.7
========= =========
Tobacco
British American Tobacco 1,324 2.7
--------------- ---------------
1,324 2.7
========= =========
Electronic & Electrical Equipment
Oxford Instruments 805 1.6
--------------- ---------------
805 1.6
========= =========
General Industrials
Coats Group 618 1.3
--------------- ---------------
618 1.3
========= =========
Food Producers
Tate & Lyle 488 1.0
--------------- ---------------
488 1.0
========= =========
Beverages
Fevertree Drinks 361 0.7
--------------- ---------------
361 0.7
========= =========
Total investments 49,569 100.0
========= =========
1
Non-
All investments are in ordinary shares unless otherwise stated. The total number of investments held at
As at
Strategic report
The Directors present the Strategic Report of the Company for the year ended
Investment objective
The Company’s objective is to provide growth in capital and income over the long term through investment in a diversified portfolio of principally
Business and management of the company
Investment trusts, unlike unit trusts and OEICs, have the ability to borrow for investment purposes and to manage dividend distributions through revenue reserves. They also enjoy, unlike unit trusts and OEICs, the benefit of continuous dealing during market hours.
The Company is an
The Company delegates fund accounting services to
Business model
The Company invests in accordance with the investment objective. The Board is collectively responsible to shareholders for the long-term success of the Company and is its governing body. There is a clear division of responsibility between the Board and the Manager. Matters reserved for the Board include setting the Company’s strategy, including its investment objective and policy, setting limits on gearing, setting the dividend, capital structure, governance, and appointing and monitoring the performance of service providers, including the Manager.
The Company’s business model follows that of an externally managed investment trust, therefore the Company does not have any employees and outsources its activities to third party service providers, including the Manager which is the principal service provider.
Investment strategy and policy
The Company’s policy is that the portfolio will usually consist of approximately 30-60 securities and the Company will invest primarily in the securities of companies listed or admitted to trading in the
The Company may hold a maximum of 10% of the issued ordinary share capital of any company. No more than 15% of the gross asset value of the Company may be invested in the securities of any one issuer, calculated at the time of any relevant investment. Cash may not exceed 10% of the net asset value of the Company. The performance of the Company is measured by reference to the FTSE All-Share Index (the Benchmark Index) on a total return basis. Non-Benchmark Index securities (including securities that are not listed or admitted to trading in the
The Company may deal in derivatives, including options, futures, contracts for difference and derivatives not traded on or under the rules of a recognised or designated investment exchange for the purpose of efficient portfolio management. Derivatives and exchange traded funds may be dealt in only with the prior consent of the Board.
The Company achieves an appropriate spread of risk by investing in a diversified portfolio of securities.
No material change can be made to the investment policy without the approval of shareholders by ordinary resolution.
Investment approach and process
In assembling the Company’s portfolio, a relatively concentrated approach to investment is adopted to ensure that the fund manager’s best ideas contribute significantly to returns. We believe that it is the role of the portfolio overall to achieve a premium level of yield rather than every individual company within it. This gives increased flexibility to invest where returns are most attractive. This relatively concentrated approach results in a portfolio which differs substantially from the Benchmark Index and in any individual year, the returns will vary, sometimes significantly, from those of the Benchmark Index. Over longer periods the objective is to achieve total returns greater than the Benchmark Index.
Investment approach
The foundation of the portfolio, approximately 70% by value, is in high free cash flow companies that can sustain cash generation and pay a growing yield whilst aiming to deliver a double-digit total return. Additionally, the Investment Manager seeks to identify and invest 20% by value of the portfolio in ‘growth’ companies that have significant barriers to entry and scalable business models that enable them to grow consistently. Turnaround companies are also sought, at around 10% by value, which represent those companies that are out of favour by the market, facing temporary challenges with high yields/very low valuations, but with recovery potential. The return from this segment is expected to contribute meaningfully to returns over time.
Gearing and borrowings
The appropriate use of gearing can add value and the Company may, from time to time, use borrowings to achieve this. The Board is responsible for the level of gearing in the Company and reviews the position at every meeting. Gearing, including borrowings and gearing through the use of derivatives (which requires prior Board approval), when aggregated with underwriting participations, will not exceed 20% of the net asset value at the time of investment, drawdown or participation. There are no derivative positions at
The Company has put in place a revolving credit facility with a limit of £8 million, extended to the Company by
Performance
The Board reviews regularly the Company’s performance attribution analysis to understand how performance was achieved. This provides an understanding of how components such as sector exposure, stock selection and asset allocation impact performance. The table on the next below provides performance information for the current and prior year.
Details of the Company’s performance for the year are also given in the Chairman’s Statement above. The Investment Manager’s Report above includes a review of the main developments during the year, together with information on investment activity within the Company’s portfolio.
Results and dividends
The Company’s revenue earnings for the year amounted to 7.23p per share (2024: 7.20p per share). The total net profit for the year, after taxation, was £5,848,000 (2024: £6,835,000) of which the net revenue profit amounted to £1,400,000 (2024: £1,454,000) and the net capital profit amounted to £4,448,000 (2024: £5,381,000). Details of dividends paid and declared in respect of the year are set out in the Chairman’s Statement above.
Key performance indicators
At each Board meeting, the Directors consider a number of performance measures to assess the Company’s success in achieving its objectives. The key performance indicators (KPIs) used to measure the progress and performance of the Company over time, and which are comparable to other investment trusts, are set out in the following table. As indicated in the footnote to the table, some of these KPIs fall within the definition of ‘Alternative Performance Measures’ under guidance issued by the
Additionally, the Board regularly reviews the performance of the portfolio, the net asset value, share price, discount to NAV and ongoing charges of the Company and compares this against various companies and indices. Information on the Company’s performance is given in the Chairman’s Statement.
The principal KPIs are described below.
Performance against the Benchmark Index
The performance of the portfolio together with the performance of the Company’s net asset value and share price are reviewed at each Board meeting and compared to the return of the Company’s Benchmark Index, the FTSE All-Share Index.
Premium/discount to NAV
At each meeting the Board monitors the level of the Company’s premium or discount to NAV and considers strategies for managing any premium or discount. Further details of the discount policy are provided in the Company’s Annual Report for the year ended
Performance against the Company’s peers
Whilst the principal objective is to achieve growth in capital and income relative to the Benchmark Index, the Board also monitors performance relative to a range of competitor funds, particularly those also within the AIC
Ongoing charges
The Board reviews the ongoing charges and monitors the expenses incurred by the Company at each meeting. The Board also compares the level of ongoing charges against those of its peers.
Year ended Year ended
31 October 31 October
2025 2024
NAV per share1 245.97p 222.22p
Share price 219.00p 193.50p
Net asset value total return2, 3 +14.3% +18.1%
Share price total return2, 3 +17.3% +13.2%
Change in Benchmark Index4 +22.5% +16.3%
Discount to net asset value3 11.0% 12.9%
Revenue earnings per share 7.23p 7.20p
Dividends per share 7.70p 7.60p
Ongoing charges3, 5 1.15% 1.15%
========= =========
1 Calculated in accordance with accounting policies adopted by the Company and AIC guidelines.
2 This measures the Company’s share price and NAV total return, which assumes dividends paid by the Company have been reinvested.
3
Alternative Performance Measures, see Glossary in the Company’s Annual Report for the year ended
4 FTSE All-Share Index (total return).
5 Ongoing charges represent the management fee and all other operating expenses, excluding finance costs, direct transaction costs, custody transaction charges, VAT recovered, taxation, prior year expenses written back and certain non-recurring items as a % of average daily net assets.
Principal risks
The Company is exposed to a variety of risks and uncertainties. As required by the
In making this assessment, the Board has considered, amongst other factors, the impact of the conflicts in
A core element of this process is the Company’s risk register which identifies the risks facing the Company and assesses the likelihood and potential impact of each risk and the controls established for mitigation. A residual risk rating is then calculated for each risk. The risk register is regularly reviewed and the risks reassessed. The risk environment in which the Company operates is also monitored and regularly appraised. New risks are also added to the register as they are identified which ensures that the document continues to be an effective risk management tool. The risk register, its method of preparation and the operation of key controls in the Investment Manager’s and third-party service providers, systems of internal control are reviewed on a regular basis by the Audit Committee.
Additionally, the Investment Manager considers emerging risks in numerous forums and the Risk and Quantitative Analysis team produces an annual risk survey. Any material risks of relevance to the Company identified through the annual risk survey will be communicated to the Board. The Board has considered several emerging risks including the potential impact of advancements in technology, specifically the evolution of artificial intelligence.
In order to gain a more comprehensive understanding of the Investment Manager’s and other third-party service providers’ risk management processes and how these apply to the Company’s business, the Audit Committee periodically receives presentations from BlackRock’s Internal Audit and Risk & Quantitative Analysis functions. The Audit Committee also reviews Service Organisation Control (SOC 1) reports from the Company’s service providers.
The current risk register includes a range of risks which are categorised under the following headings:
- investment performance;
- income/dividend;
- gearing;
- legal, regulatory and tax compliance;
- operational;
- market; and
- financial.
The principal risks identified are described in detail within the following tables, together with an explanation of how they are managed and mitigated. The Board will continue to assess these risks on an ongoing basis.
Investment performance
Principal risk
The Board is responsible for:
- setting the investment strategy to fulfil the Company’s objective; and
- monitoring the performance of the Investment Manager and the implementation of the investment strategy.
An inappropriate investment strategy may lead to:
- poor performance compared to the Benchmark Index and the Company’s peer group;
- a widening discount to NAV;
- a reduction or permanent loss of capital; and
- dissatisfied shareholders and reputational damage.
The Board is also aware of the long-term risk to performance from inadequate attention to ESG issues and in particular the impact of climate change.
Mitigation/Control
To manage this risk the Board:
- regularly reviews investment performance;
- regularly reviews the Company’s investment mandate and long-term strategy;
- is required to provide prior consent to the use of derivatives and exchange traded funds;
- has set investment restrictions and guidelines which the Investment Manager monitors and regularly reports on;
- reviews changes in gearing and the rationale for the composition of the investment portfolio;
- monitors the maintenance of an adequate spread of investments in order to minimise the risks associated with factors specific to particular sectors, based on the diversification requirements inherent in the investment policy; and
- monitors the discount to NAV and use of the granted buy back powers.
Income/dividend
Principal risk
The amount of dividends and future dividend growth will depend on the Company’s underlying portfolio and the dividends paid by the underlying investee companies.
Changes in the composition of the portfolio and any change in the tax treatment of the dividends or interest received by the Company may alter the level of dividends received by shareholders.
Mitigation/Control
The Board monitors this risk through the receipt of detailed income forecasts and considers the level of income at each meeting. The Company also has a revenue reserve and powers to pay dividends from capital which could potentially be used to support the Company’s dividend if required.
Gearing
Principal risk
The Company’s investment strategy may involve the use of gearing to enhance investment returns.
Gearing may be generated through borrowing money or increasing levels of market exposure through the use of derivatives. The Company currently has an unsecured revolving credit facility provided by
Mitigation/Control
To manage this risk the Board has limited gearing, including borrowings and gearing through the use of derivatives, to 20% of NAV at the time of investment, drawdown or participation.
The Investment Manager will only use gearing when confident that market conditions and opportunities exist to enhance investment returns.
Legal, regulatory and tax compliance
Principal risk
The Company has been approved by
The Company is required to comply with the provisions of the Companies Act 2006, the Alternative Investment Fund Managers Directive (the AIFMD), the Market Abuse Regulation, the
Any serious breach could result in the Company and/or the Directors being fined or the subject of criminal proceedings or the suspension of the Company’s shares which would in turn lead to a breach of the Corporation Tax Act 2010.
Mitigation/Control
Compliance with the accounting rules affecting investment trusts are regularly monitored.
The Investment Manager monitors investment movements, the level and type of forecast income and expenditure and the amount of proposed dividends, if any, to ensure that the provisions of Chapter 4 of Part 24 of the Corporation Tax Act 2010 are not breached. The results are reported to the Board at each meeting. The Board is aware of the risk of potential changes in law and taxation and will continue to monitor this closely.
The Company Secretary and the Company’s professional advisers provide regular reports to the Board in respect of compliance with all applicable rules and regulation.
The Company and its appointed
The Market Abuse Regulation came into force on
Operational
Principal risk
In common with most other investment trust companies, the Company has no employees. The Company therefore relies upon the services provided by third parties and is dependent on the control systems of BlackRock (the Investment Manager and AIFM), and of
Failure by any service provider to carry out its obligations to the Company could have a material adverse effect on the Company’s performance. Disruption to the accounting, payment systems or custody records, as a result of a cyber-attack or otherwise, could impact the monitoring and reporting of the Company’s financial position.
The security of the Company’s assets, dealing procedures, accounting records and maintenance of regulatory and legal requirements, depend on the effective operation of these systems.
Mitigation/Control
Due diligence is undertaken before contracts are entered into with third party service providers. Thereafter, the performance of the provider is subject to regular review and reports to the Board.
The Bank of New York Mellon’s and BlackRock’s internal control processes are regularly tested and monitored throughout the year and are evidenced through their Service Organisation Control (SOC 1) reports, which are subject to review by an Independent Service Assurance Auditor. The SOC 1 reports provide assurance in respect of the effective operation of internal controls. These reports are regularly reviewed by the Audit Committee.
The Company’s assets are subject to a strict liability regime and in the event of a loss of assets, the Depositary must return assets of an identical type or the corresponding amount, unless able to demonstrate the loss was a result of an event beyond its reasonable control.
The Board reviews the overall performance of the Manager, Investment Manager and all other third party service providers on a regular basis and compliance with the Investment Management Agreement regularly. The Board also considers the business continuity arrangements of the Company’s key service providers.
The Board considers the business continuity arrangements of the Company’s key service providers on an ongoing basis and reviews these as part of its review of the Company’s risk register. Having considered these arrangements and reviewed service levels, the Board is confident that a good level of service has and will be maintained.
Market
Principal risk
Market risk arises from volatility in the prices of the Company’s investments. It represents the potential loss the Company might suffer through realising investments at a time of negative market movements.
There is also the potential for the Company to suffer loss through holding investments in a period of negative market movements.
Mitigation/Control
The Board considers the diversification of the portfolio, asset allocation, stock selection, and levels of gearing on a regular basis and has set investment restrictions and guidelines which are monitored and reported on by the Investment Manager.
The Board monitors the implementation and results of the investment process with the Investment Manager.
The Board also recognises the benefits of a closed-end fund structure in extremely volatile markets such as major geopolitical events and their impact on markets. Unlike open-ended counterparts, closed-end funds are not obliged to sell-down portfolio holdings at low valuations to meet liquidity requirements for redemptions. During times of elevated volatility and market stress, the ability of a closed-end fund structure to remain invested for the long term enables the Investment Manager to adhere to disciplined fundamental analysis from a bottom-up perspective.
Financial
Principal risk
The Company’s investment activities expose it to a variety of financial risks that include market risk.
Mitigation/Control
Details of these risks are disclosed in note 16 to the financial statements, together with a summary of the policies for managing these risks.
Viability statement
In accordance with the
The Directors believe that five years is an appropriate investment horizon to assess the viability of the Company. This is based on the Company’s long-term mandate, the low turnover in the portfolio and the investment holding period investors generally consider while investing in the
The Board conducted its review for the period up to the AGM in 2031, being a five-year period from the date that this annual report will be laid before shareholders for approval. In making this assessment the Board has considered the following factors:
- the Company’s principal risks as set out above;
- the ongoing relevance of the Company’s investment objective in the current environment;
- the level of demand for the Company’s shares;
- the performance of the Company versus its benchmark index;
- good communication with major shareholders; and
-
at the close of business on
As part of its assessment the Board has also considered:
- the level of ongoing charges, both current and historical;
- the level at which the shares trade relative to NAV;
- the level of income generated; and
- future income forecasts.
The Board has concluded that the Company would be able to meet its ongoing operating costs and net current liabilities as they fall due as a consequence of:
- a liquid portfolio; and
- overheads which comprise a small percentage of net assets.
Therefore, the Board has concluded that even in exceptionally stressed operating conditions, the Company would comfortably be able to meet its ongoing operating costs as they fall due.
However, investment companies may face other challenges. These include regulatory changes, changes to the tax treatment of investment trusts, a significant decrease in size due to poor investment performance or substantial share buy back activity, which may result in the Company no longer being of sufficient market capitalisation to represent a viable investment proposition or no longer being able to continue in operation.
Based on the results of their analysis, the Directors have a reasonable expectation that the Company will be able to continue in operation and meet its liabilities as they fall due over the period of their assessment.
Future prospects
The Board’s main focus is the achievement of income and capital growth. The future performance of the Company is dependent upon the success of the investment strategy.
The outlook for the Company is discussed in the Chairman’s Statement and in the Investment Manager’s Report above.
Social, community and human rights issues
As an investment trust, the Company has no direct social or community responsibilities.
However, the Company believes that it is in shareholders’ interests to consider environmental, social and governance factors and human rights issues when selecting and retaining investments. Details of the Company’s approach to socially responsible investment are set out in the Company’s Annual Report for the year ended
Modern slavery act
As an investment vehicle the Company does not provide goods or services in the normal course of business and does not have customers. Accordingly, the Directors consider that the Company is not required to make any slavery or human trafficking statement under the Modern Slavery Act 2015. In any event, the Board considers the Company’s supply chain, dealing predominantly with professional advisers and service providers in the financial services industry, to be low risk in relation to this matter.
Directors, gender representation and employees
The Directors of the Company on
The Board recognises the importance of having a range of experienced Directors with the right skills and knowledge to enable it to fulfil its obligations. As at
Promoting the success of
The Companies (Miscellaneous Reporting) Regulations 2018 require directors to explain more fully how they have discharged their duties under Section 172(1) of the Companies Act 2006 in promoting the success of their companies for the benefit of members as a whole. This
enhanced disclosure covers how the Board has engaged with and understands the views of stakeholders and how stakeholders’ needs have been taken into account, the outcome of this engagement and the impact that it has had on the Board’s decisions.
As the Company is an externally managed investment company and does not have any employees or customers, the Board considers the main stakeholders in the Company to be the shareholders, key service providers (being the Manager and Investment Manager, the Custodian, Depositary, Registrar and Broker) and investee companies. The reasons for this determination, and the Board’s overarching approach to engagement, are set out below.
Stakeholders
Shareholders
Continued shareholder support and engagement are critical to the continued existence of the Company and the successful delivery of its long-term strategy. The Board is focused on fostering good working relationships with shareholders and on understanding the views of shareholders in order to incorporate them into the Board’s strategy and objectives in delivering long-term growth and income.
Manager and Investment Manager
The Board’s main working relationship is with the Manager, who is responsible for the Company’s portfolio management (including asset allocation, stock and sector selection) and risk management, as well as ancillary functions such as administration, secretarial, accounting and marketing services.
The Manager has sub-delegated portfolio management to the Investment Manager. Successful management of shareholders’ assets by the Investment Manager is critical for the Company to deliver successfully its investment strategy and meet its objective. The Company is also reliant on the Manager as AIFM to provide support in meeting relevant regulatory obligations under the AIFMD and other relevant legislation.
Other key service providers
In order for the Company to function as an investment trust with a listing on the premium segment of the official list of the
Investee companies
Portfolio holdings are ultimately shareholders’ assets, and the Board recognises the importance of good stewardship and communication with investee companies in meeting the Company’s investment objective and strategy. The Board monitors the Investment Manager’s stewardship activities and receives regular feedback from the Investment Manager in respect of meetings with the management of portfolio companies.
A summary of the key areas of engagement undertaken by the Board with its key stakeholders in the year under review and how Directors have acted upon this to promote the long-term success of the Company are set out in the table below.
Area of Engagement
Investment mandate and objective
Issue
The Board is committed to promoting the role and success of the Company in delivering on its investment mandate to shareholders over the long term. Consideration of sustainable investment is a key part of the investment process and must be factored in when making investment decisions. The Board also has responsibility to shareholders to ensure that the Company’s portfolio of assets is invested in line with the stated investment objective and in a way that ensures an appropriate balance between spread of risk and portfolio returns.
Engagement
The Board believes that responsible investment and sustainability are important to the longer-term delivery of growth in capital and income and has worked closely with the Manager throughout the year to review regularly the Company’s performance, investment strategy and underlying policies and to understand how sustainability considerations are integrated into the investment process.
The Manager’s approach to the consideration of ESG factors in respect of the Company’s portfolio, as well as its engagement with investee companies to encourage the adoption of sustainable business practices which support long-term value creation, are kept under review by the Board. The Manager reports to the Board in respect of its consideration of ESG factors and how these are integrated into the investment process.
Impact
The portfolio activities undertaken by the Investment Manager and the performance delivered for shareholders during the year can be found in the Investment Manager’s Report above,
Discount strategy
Issue
The Board believes that strong performance and an attractive dividend yield enhances demand for the Company’s shares, which will help to narrow the Company’s discount of share price to NAV over time.
Engagement
The Manager reports total return performance statistics to the Board on a regular basis, along with the portfolio yield and the impact of dividends paid on brought forward distributable reserves.
The Board reviews the Company’s discount/premium to NAV on a regular basis and holds regular discussions with the Manager and the Company’s broker regarding the discount/premium level.
The Board has authority to buy back up to 14.99% of the Company’s issued share capital (excluding treasury shares) and has an active buy back programme in place. The Company bought back a total of 700,818 ordinary shares during the year at an average discount of 14.2% and at an average price of 202.62p per share. As at the financial year end, the Company’s shares were trading at a discount to NAV of 11.0%.
The Manager provides the Board with feedback and key performance statistics regarding the success of the Company’s marketing initiatives which include messaging to highlight the dividends.
The Board also reviews feedback from shareholders in respect of the level of dividend.
Impact
The average discount for the year to
The Board believes the buy back activity undertaken during the year has been effective in reducing the discount volatility and increasing liquidity in the Company’s shares. All shares were purchased at a discount to the prevailing NAV and were accretive to the NAV.
Service levels of third party providers
Issue
The Board acknowledges the importance of ensuring that the Company’s principal suppliers are providing a suitable level of service: including the Manager in respect of investment performance and delivering on the Company’s investment mandate; the Custodian and Depositary in respect of their duties towards safeguarding the Company’s assets; the Registrar in its maintenance of the Company’s share register and dealing with investor queries and the Company’s Brokers in respect of the provision of advice and acting as a market maker for the Company’s shares.
Engagement
The Manager reports to the Board on the Company’s performance on a regular basis. The Board carries out a robust annual evaluation of the Manager’s performance, their commitment and available resources.
The Board performs an annual review of the service levels of all third party service providers and concludes on their suitability to continue in their role.
The Board receives regular updates from the AIFM, Depositary, Registrar and Brokers.
The Board has worked closely with the Manager to gain comfort that relevant business continuity plans are operating effectively for all of the Company’s service providers.
Impact
Performance evaluations were performed on a timely basis and the Board concluded that all third party service providers, including the Manager, Custodian, Depositary and Fund Administrator were operating effectively and providing a good level of service.
The Board has received updates in respect of business continuity planning from the Manager, Custodian, Depositary, Fund Administrator, Brokers and Registrar, and is confident that arrangements are in place to ensure that a good level of service will continue to be provided in the event of disruption, for example the COVID-19 pandemic.
Board composition
Issue
The Board is committed to ensuring that its own composition brings an appropriate balance of knowledge, experience, diversity and skills, and that it is compliant with best corporate governance practice under the
Engagement
The Board keep succession planning under regular review and (discharging the duties of a Nomination Committee) has agreed the selection criteria and the method of selection, recruitment and appointment. The importance of Board diversity, including gender, was taken into account when establishing the criteria. Tenure is also kept under review.
With these criteria in mind, and as part of its succession planning process, the Board initiated a search and selection process in the year to identify a new non-executive Director. As a result of this process, Mr
As at the date of this report, the Board is comprised of three men and one woman.
The Board subscribes to the view expressed in the AIC Code that long-serving Directors should not be prevented from forming part of an independent majority. It does not consider that the length of a Director’s tenure reduces his or her ability to act independently. The Board’s policy on tenure is that continuity and experience add significantly to the strength of the Board and, as such, no limit on the overall length of service of any of the Company’s Directors has been imposed, although the Board believes in the merits of periodic and progressive refreshment of its composition as evidenced by the succession planning actions taken through the course of the year as described above.
All Directors are subject to a formal evaluation process on an annual basis (more details and the conclusions in respect of the 2025 evaluation process are given above). All Directors stand for re-election by shareholders annually. Shareholders may attend the AGM and raise any queries in respect of Board composition or individual Directors in person, or may contact the Company Secretary or the Chairman using the details provided
in the Company’s Annual Report for the year ended
Impact
The Board recognises the benefits of diversity and a structured process of ongoing refreshment and will continue to consider regularly its composition.
The Directors are not aware of any issues that have been raised directly by shareholders in respect of Board composition in 2025. Through its Manager and Corporate Broker, there is regular contact with major shareholders. Shareholders are able to raise any concerns in this regard at the AGM or alternatively they may write to the Chairman of the Board. Details of the proxy voting results in favour and against individual Directors’ re-election at the 2025 AGM are given on the Company’s website at www.blackrock.com/uk/brig . Historical proxy voting results can be found under the ‘Further Literature’ tab.
Shareholders
Issue
Continued shareholder support and engagement are critical to the continued existence of the Company and the successful delivery of its long-term strategy.
Engagement
The Board is committed to maintaining open channels of communication and to engage with shareholders. The Company welcomes and encourages attendance and participation from shareholders at its Annual General Meetings. Shareholders therefore have the opportunity to meet the Directors and Investment Manager and to address questions to them directly.
The Annual Report and Half Yearly Financial Report are available on the BlackRock website and are also circulated to shareholders either in printed copy or via electronic communications. In addition, regular updates on performance, monthly factsheets, the daily NAV and other information are also published on the website at www.blackrock.com/uk/brig .
The Company also has an arrangement in place whereby at every fifth Annual General Meeting of the Company, shareholders shall be asked to approve the continuation of the Company as an investment trust by ordinary resolution. This mechanism provides shareholders with a regular opportunity at which they can realise the value of their shares. The Board, through its Manager and corporate advisers, engaged with major shareholders on the continuation vote held in
The Board also works closely with the Investment Manager to develop the Company’s marketing strategy, with the aim of ensuring effective communication with shareholders in respect of the investment mandate and objective. Unlike trading companies, one-to-one shareholder meetings usually take the form of a meeting with the Investment Manager as opposed to members of the Board. As well as attending regular investor meetings the Investment Manager holds regular discussions with wealth management desks and offices to build on the case for, and understanding of, long-term investment opportunities in the
The Investment Manager also coordinates public relations activity, including meetings with relevant industry publications to set out their vision for the portfolio strategy and outlook for the
The Chairman is available to meet directly with shareholders periodically to understand their views on governance and the Company’s performance. He may be contacted via the Company Secretary whose details are given in the Company’s Annual Report for the year ended
Impact
The Chairman and other directors are available to meet directly with shareholders periodically to understand their views on governance, the Company’s performance, strategy and prospects.
Feedback and questions will also help the Company evolve its reporting, aiming to make reports more transparent and understandable. Feedback from all substantive meetings between the Investment Manager and shareholders will be shared with the Board. The Directors will also receive updates from the Company’s broker on any feedback from shareholders, as well as share trading activity, share price performance and an update from the Investment Manager.
The Board’s approach to Sustainability and ESG
Material environmental, social and governance (ESG) issues can present both opportunities and threats to long-term investment performance. These issues are a key focus of the Board and your Board is committed to a diligent oversight of the activities of the Manager in these areas. The Board believes that effective engagement by the Investment Manager with investee companies can contribute to investment performance. The Board believes that BlackRock is well placed as Manager to fulfil these requirements due to the integration of ESG into its investment processes, its approach in its investment stewardship activities and its position in the industry as one of the largest suppliers of sustainable investment products in the global market. More information on BlackRock’s approach to responsible investing is set out
in the Company’s Annual Report for the year ended
BlackRock’s approach to material ESG integration
BlackRock’s clients have a wide range of perspectives on a variety of issues and investment themes. Given the wide range of unique and varied investment objectives sought by our clients, BlackRock’s investment teams have a range of approaches to considering financially material
BlackRock’s ESG integration framework is built upon our history as a firm founded on the principle of thorough and thoughtful risk management. Aladdin, our core risk management and investment technology platform, allows investors to leverage financially material
BY ORDER OF THE BOARD
FOR AND ON BEHALF OF
Company Secretary
Related Party Transactions
The investment management fee due for the year ended
The Company is entitled to a rebate from the investment management fee charged by the Manager in the event the Company’s ongoing charges exceeds the cap of 1.15% per annum of average daily net assets. The amount of rebate accrued to
In addition to the above services, BIM (
The Company holds an investment in the
The ultimate holding company of the Manager and the Investment Manager is BlackRock, Inc., a company incorporated in
At the date of this report, the Board consists of four non-executive Directors, all of whom are considered to be independent of the Manager by the Board.
Disclosures of the Directors’ interests in the ordinary shares of the Company and fees and expenses payable to the Directors are set out in the Directors’ Remuneration Report in the Company’s Annual Report for the year ended
Statement of Directors’ responsibilities in respect of the Annual Report and Financial Statements
The Directors are responsible for preparing the Annual Report and Financial Statements in accordance with applicable
Under company law, the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company as at the end of each financial year and of the profit or loss of the Company for that year.
In preparing these financial statements, the Directors are required to:
– present fairly the financial position, financial performance and cash flows of the Company;
– select suitable accounting policies in accordance with Section 10 of FRS 102 and apply them consistently;
– present information, including accounting policies, in a manner that provides relevant, reliable, comparable and understandable information;
– make judgements and accounting estimates that are reasonable and prudent;
–
state whether applicable
– prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company’s transactions and disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The Directors are also responsible for preparing the Strategic Report, the Directors’ Report, the Directors’ Remuneration Report, the Corporate Governance Statement and the Report of the Audit Committee in accordance with the Companies Act 2006 and applicable regulations, including the requirements of the Listing Rules and the Disclosure Guidance and Transparency Rules.
The Directors have delegated responsibility to the Manager for the maintenance and integrity of the Company’s corporate and financial information included on the BlackRock website.
Legislation in the
Each of the Directors, whose names are listed in the Company’s Annual Report for the year ended
– the financial statements, prepared in accordance with applicable accounting standards, give a true and fair view of the assets, liabilities, financial position and profit or loss of the Company; and
– the Strategic Report contained in the Annual Report and Financial Statements includes a fair review of the development and performance of the business and the position of the Company, together with a description of the principal risks and uncertainties that it faces.
The 2018 UK Corporate Governance Code requires Directors to ensure that the Annual Report and Financial Statements are fair, balanced and understandable. In order to reach a conclusion on this matter, the Board has requested that the Audit Committee advise on whether it considers that the Annual Report and Financial Statements fulfils these requirements. The process by which the Audit Committee has reached these conclusions is set out in the Audit Committee’s report in the Company’s Annual Report for the year ended
FOR AND ON BEHALF OF THE BOARD
Chairman
Income statement for the year ended
2025 2024
Revenue Capital Total Revenue Capital Total
Notes £’000 £’000 £’000 £’000 £’000 £’000
Net gains
on
investments
held at – 4,888 4,888 – 5,684 5,684
fair value
through
profit or
loss
Net gains/
(losses) on – 5 5 – (4) (4)
foreign
exchange
Income from
investments
held at
fair value 3 1,694 – 1,694 1,749 49 1,798
through
profit or
loss
Other 3 132 – 132 98 – 98
income
--------------- --------------- --------------- --------------- --------------- ---------------
Total 1,826 4,893 6,719 1,847 5,729 7,576
income
========= ========= ========= ========= ========= =========
Expenses
Investment
management 4 (23) (165) (188) (24) (155) (179)
fee
Other
operating 5 (311) (7) (318) (301) (6) (307)
expenses
--------------- --------------- --------------- --------------- --------------- ---------------
Total
operating (334) (172) (506) (325) (161) (486)
expenses
========= ========= ========= ========= ========= =========
Net profit
before
finance 1,492 4,721 6,213 1,522 5,568 7,090
costs and
taxation
Finance 6 (91) (273) (364) (63) (187) (250)
costs
--------------- --------------- --------------- --------------- --------------- ---------------
Net profit
before 1,401 4,448 5,849 1,459 5,381 6,840
taxation
Taxation (1) – (1) (5) – (5)
charge
--------------- --------------- --------------- --------------- --------------- ---------------
Net profit
after 8 1,400 4,448 5,848 1,454 5,381 6,835
taxation
========= ========= ========= ========= ========= =========
Earnings
per
ordinary 8 7.23 22.98 30.21 7.20 26.65 33.85
share
(pence)
========= ========= ========= ========= ========= =========
The total columns of this statement represent the Company’s profit and loss account. The supplementary revenue and capital accounts are both prepared under guidance published by the
The net profit for the year disclosed above represents the Company’s total comprehensive income.
Statement of changes in equity for the year ended
Called Share Capital
up share premium redemption Special Capital Revenue
capital account reserve reserve reserve reserve Total
Notes £’000 £’000 £’000 £’000 £’000 £’000 £’000
For the year
ended 31
October 2025
At 31 October 298 14,819 251 10,682 15,647 2,063 43,760
2024
Total
comprehensive
income:
Net profit – – – – 4,448 1,400 5,848
for the year
Transactions
with owners,
recorded
directly to
equity:
Ordinary
shares 9,10 (7) – 7 (1,413) – – (1,413)
purchased for
cancellation
Share
repurchase 10 – – – (7) – – (7)
costs
Dividends 7 – – – – – (1,473) (1,473)
paid1
--------------- --------------- --------------- --------------- --------------- --------------- ---------------
At 31 October 291 14,819 258 9,262 20,095 1,990 46,715
2025
========= ========= ========= ========= ========= ========= =========
For the year
ended 31
October 2024
At 31 October 307 14,819 242 12,391 10,266 2,131 40,156
2023
Total
comprehensive
income:
Net profit – – – – 5,381 1,454 6,835
for the year
Transactions
with owners,
recorded
directly to
equity:
Ordinary
shares 9,10 (9) – 9 (1,700) – – (1,700)
purchased for
cancellation
Share
repurchase 10 – – – (9) – – (9)
costs
Dividends 7 – – – – – (1,522) (1,522)
paid2
--------------- --------------- --------------- --------------- --------------- --------------- ---------------
At 31 October 298 14,819 251 10,682 15,647 2,063 43,760
2024
========= ========= ========= ========= ========= ========= =========
1
Interim dividend paid in respect of the six months ended
2
Interim dividend paid in respect of the six months ended
Balance sheet as at
2025 2024
Notes £’000 £’000
Non current assets
Investments held at fair value through 49,569 45,096
profit or loss
--------------- ---------------
Current assets
Current tax asset 18 22
Debtors 132 972
Cash and cash equivalents 3,309 2,515
--------------- ---------------
Total current assets 3,459 3,509
========= =========
Current liabilities
Creditors (197) (845)
Bank loan (6,116) (4,000)
--------------- ---------------
Total current liabilities (6,313) (4,845)
========= =========
Net current liabilities (2,854) (1,336)
--------------- ---------------
Net assets 46,715 43,760
Equity
Called up share capital 9 291 298
Share premium account 10 14,819 14,819
Capital redemption reserve 10 258 251
Special reserve 10 9,262 10,682
Capital reserve 10 20,095 15,647
Revenue reserve 10 1,990 2,063
--------------- ---------------
Total shareholders’ funds 8 46,715 43,760
========= =========
Net asset value per ordinary share (pence) 8 245.97 222.22
========= =========
Statement of cash flows for the year ended
2025 2024
£’000 £’000
Operating activities
Net profit before taxation1 5,849 6,840
Changes in working capital items:
Decrease in other receivables (excluding amounts 26 30
due from brokers)
(Decrease)/increase in other payables (excluding (232) 26
amounts due to brokers)
--------------- ---------------
Other adjustments:
Finance costs 364 250
Gains on investments held at fair value through (4,888) (5,684)
profit or loss
(Gains)/losses on foreign exchange (5) 4
Special dividends allocated to capital – (49)
Sale of investments held at fair value through 20,966 18,292
profit or loss
Purchase of investments held at fair value (20,155) (14,839)
through profit or loss
Refund of withholding tax reclaims 3 –
--------------- ---------------
Net cash inflow from operating activities 1,928 4,870
========= =========
Financing activities
Ordinary shares repurchased into treasury (1,411) (1,680)
Share repurchase costs (7) (9)
Interest paid (248) (250)
Dividends paid (1,473) (1,522)
Drawdown of bank loan 2,000 -
--------------- ---------------
Net cash outflow from financing activities (1,139) (3,461)
========= =========
Increase in cash and cash equivalents 789 1,409
Effect of foreign exchange rate changes 5 (4)
--------------- ---------------
Cash and cash equivalents 794 1,405
Cash and cash equivalents at the start of year 2,515 1,110
--------------- ---------------
Cash and cash equivalents at the end of the year 3,309 2,515
========= =========
Comprised of:
Cash at bank 107 260
Cash fund2 3,202 2,255
--------------- ---------------
3,309 2,515
========= =========
1 Dividends and interest received in cash during the year amounted to £1,730,000 and £129,000 respectively (2024: £1,772,000 and £76,000).
2
Notes to the financial statements for the year ended
1. Principal activity
The Company was incorporated on
2. Accounting policies
The principal accounting policies adopted by the Company are set out below.
(a) Basis of preparation
The financial statements have been prepared on a going concern basis in accordance with The Financial Reporting Standard applicable in the
Substantially, all of the assets of the Company consist of securities that are readily realisable and, accordingly, the Directors are satisfied that the Company has adequate resources to continue in operational existence for the period to
The Directors have considered the impact of climate change on the value of the investments included in the Financial Statements and have concluded that there was no further impact of climate change to be considered as the investments are valued based on market pricing as required by FRS 102.
None of the Company’s other assets and liabilities were considered to be potentially impacted by climate change.
The principal accounting policies adopted by the Company are set out below. Unless specified otherwise, the policies have been applied consistently throughout the year and are consistent with those applied in the preceding year. All of the Company’s operations are of a continuing nature.
The Company’s financial statements are presented in Sterling, which is the functional currency of the Company and the primary economic environment in which the Company operates. All values are rounded to the nearest thousand pounds (£’000) except where otherwise indicated.
(b) Presentation of Income Statement
In order to better reflect the activities of an investment trust company and in accordance with guidance issued by the AIC, supplementary information which analyses the Income Statement between items of a revenue and a capital nature has been presented alongside the Income Statement.
(c) Segmental reporting
The Directors are of the opinion that the Company is engaged in a single segment of business being investment business.
(d) Income
Dividends receivable on equity shares are treated as revenue for the year on an ex-dividend basis. Where no ex-dividend date is available, dividends receivable on or before the year end are treated as revenue for the year. Provisions are made for dividends not expected to be received.
Special dividends are recognised on an ex-dividend basis and treated as capital or revenue depending on the facts or circumstances of each particular dividend.
Dividends are accounted for in accordance with Section 29 of FRS 102 on the basis of income actually receivable, without adjustment for tax credits attaching to the dividend. Dividends from overseas companies continue to be shown gross of withholding tax.
Deposit interest receivable and interest income from the
Where the Company has elected to receive its dividends in the form of additional shares rather than in cash, the cash equivalent of the dividend is recognised as revenue. Any excess in the value of the shares received over the amount of the cash dividend is recognised in capital.
(e) Expenses
All expenses, including finance costs, are accounted for on an accruals basis. Expenses have been charged wholly to the revenue account of the Income Statement, except as follows:
-
expenses which are incidental to the acquisition or sale of an investment are charged to the capital account of the Statement of Comprehensive Income. Details of transaction costs on the purchases and sales of investments are disclosed in note 10 in the Company’s Annual Report for the year ended
- expenses are treated as capital where a connection with the maintenance or enhancement of the value of the investments can be demonstrated; and
- the investment management fee and finance costs have been allocated 25% to the revenue account and 75% to the capital account of the Income Statement in line with the Board’s expected long-term split of returns, in the form of capital gains and income respectively, from the investment portfolio.
(f) Taxation
The tax expense represents the sum of the tax currently payable and deferred tax. The tax currently payable is based on the taxable profit for the year. Taxable profit differs from net profit as reported in the Income Statement because it excludes items of income or expenses that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The Company’s liability for current tax is calculated using tax rates that were applicable at the balance sheet date.
The current tax effect of different items of expenditure is allocated between capital and revenue on the marginal basis using the Company’s effective rate of corporation tax for the accounting period.
Deferred taxation is recognised in respect of all timing differences at the financial reporting date, where transactions or events that result in an obligation to pay more taxation in the future or right to less taxation in the future have occurred at the balance sheet date. Deferred taxation is measured on a non-discounted basis, at the average tax rates that are expected to apply in the periods in which the timing differences are expected to reverse based on tax rates and laws that have been enacted or substantively enacted by the balance sheet date. This is subject to deferred taxation assets only being recognised if it is considered more likely than not that there will be suitable profits from which the future reversal of the timing differences can be deducted.
(g) Investments held at fair value through profit or loss
The Company’s investments are classified as held at fair value through profit or loss in accordance with Sections 11 and 12 of FRS 102 and are managed and evaluated on a fair value basis in accordance with its investment strategy.
All investments are classified upon initial recognition as held at fair value through profit or loss. Purchases of investments are recognised on a trade date basis. Sales are recognised at the trade date of the disposal.
The fair value of the financial investments is based on their quoted bid price at the balance sheet date on the exchange on which the investment is quoted, without deduction for the estimated future selling costs. Unquoted investments are valued by the Directors at fair value using International Private Equity and Venture Capital Valuation Guidelines. This policy applies to all current and non-current asset investments of the Company.
Changes in the value of investments held at fair value through profit or loss and gains and losses on disposal are recognised in the Income Statement as ‘Gains or losses on investments held at fair value through profit or loss’. Also included within this heading are transaction costs in relation to the purchase or sale of investments.
The fair value hierarchy consists of the following three levels:
Level 1 – Quoted market price for identical instruments in active markets.
Level 2 – Valuation techniques using observable inputs.
Level 3 – Valuation techniques using significant unobservable inputs.
(h) Debtors
Debtors include sales for future settlement, other debtors and prepayments and accrued income in the ordinary course of business. If collection is expected in one year or less, they are classified as current assets. If not, they are presented as non-current assets.
(i) Creditors
Creditors include purchases for future settlement, interest payable, share buyback costs and accruals in the ordinary course of business. Creditors are classified as creditors – amounts due within one year if payment is due within one year or less (or in the normal operating cycle of business if longer). If not, they are presented as creditors – amounts due after more than one year.
(j) Dividends payable
Under Section 32 of FRS 102, final dividends should not be accrued in the financial statements unless they have been approved by shareholders before the balance sheet date. Dividends payable to equity shareholders are recognised in the Statement of Changes in Equity when they have been approved by shareholders and have become a liability of the Company. Interim dividends are only recognised in the financial statements in the period in which they are paid.
(k) Cash and cash equivalents
Cash comprises cash in hand and on demand deposits. Cash equivalents include short-term, highly liquid investments, that are readily convertible to known amounts of cash and that are subject to an insignificant risk of changes in value.
The investment in the
(l) Foreign currency translation
In accordance with Section 30 of FRS 102, the Company is required to nominate a functional currency being the currency in which the Company predominately operates. The functional and reporting currency is Sterling, reflecting the primary economic environment in which the Company operates. Transactions in foreign currencies are translated into Sterling at the rates of exchange ruling on the date of the transaction. Foreign currency monetary assets and liabilities and non-monetary assets held at fair value are translated into Sterling at the rates of exchange ruling at the balance sheet date. Profits and losses thereon are recognised in the capital account of the Income Statement and taken to the capital reserve.
(m) Share repurchases, share reissues and new share issues
Shares repurchased and subsequently cancelled – share capital is reduced by the nominal value of the shares repurchased and the capital redemption reserve is correspondingly increased in accordance with Section 733 of the Companies Act 2006. The full cost of the repurchase is charged to the special reserve.
Shares repurchased and held in treasury – the full cost of the repurchase is charged to the special reserve.
Where treasury shares are subsequently reissued:
- amounts received to the extent of the repurchase price are credited to the special reserve and capital reserve based on a weighted average basis of amounts utilised from these reserves on repurchases; and
- any surplus received in excess of the repurchase price is taken to the share premium account.
Where new shares are issued, the par value is taken to called up share capital and amounts received to the extent of any surplus received in excess of the par value are taken to the share premium account.
Costs on issuance of new shares are charged to the share premium account. Costs on share reissues are charged to the special reserve and capital reserve.
(n) Bank borrowings
Bank loans are recorded as the proceeds received. Finance charges are accounted for on an accruals basis in the Income Statement.
(o) Critical accounting judgement and key sources of estimation uncertainty
The Board makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. Estimates and judgements are regularly evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. There are no critical accounting judgements or estimates and the Directors do not believe that any accounting judgements or estimates have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities within the next financial year.
3. Income
2025 2024
£’000 £’000
Investment income:
UK dividends 1,531 1,547
UK special dividends 28 42
UK property income distributions 71 62
Dividends from UK REITs1 38 17
Overseas dividends 26 81
--------------- ---------------
Total investment income 1,694 1,749
========= =========
Other income:
Interest from Cash Fund 126 85
Deposit interest 4 3
Underwriting commission 2 10
--------------- ---------------
Total other income 132 98
========= =========
Total 1,826 1,847
========= =========
1 REITs – real estate investment trusts.
Dividends and interest received in cash during the year amounted to £1,730,000 and £129,000 respectively (2024: £1,772,000 and £76,000).
Special dividends of £28,000 (2024: £42,000) have been recognised in income and special dividends of £nil (2024: £49,000) have been recognised in capital during the year.
4. Investment management fee
2025 2024
Revenue Capital Total Revenue Capital Total
£’000 £’000 £’000 £’000 £’000 £’000
Investment
management 59 176 235 58 173 231
fee
Investment
management (36) (11) (47) (34) (18) (52)
fee rebate
--------------- --------------- --------------- --------------- --------------- ---------------
Total 23 165 188 24 155 179
========= ========= ========= ========= ========= =========
Under the terms of the investment management agreement, BFM is entitled to a fee of 0.6% per annum of the Company’s quarter end market capitalisation. The investment management fee is allocated 25% to the revenue account and 75% to the capital account. There is no additional fee for company secretarial and administration services.
In addition, effective from
5. Other operating expenses
2025 2024
£’000 £’000
Allocated to revenue:
Custody fees 1 1
Depositary fees 5 5
Audit fees1 60 60
Registrars’ fee 35 27
Directors’ emoluments2 92 92
Marketing fees 13 18
Printing and postage fees 33 47
Legal and professional fees 22 24
London Stock Exchange fee 13 13
FCA fee 8 8
Prior year expenses written back3 (10) (25)
Other administration costs 39 31
--------------- ---------------
Total revenue expenses 311 301
========= =========
Allocated to capital:
Custody transaction costs4 7 6
--------------- ---------------
Total capital expenses 7 6
========= =========
Total 318 307
========= =========
2025 2024
% %
Ongoing charges5 1.15 1.15
========= =========
1 No non-audit services were provided by the Company’s auditors (2024: none).
2 Further information on Directors’ emoluments can be found in the Directors’ Remuneration Report in the Company’s Annual Report for the year ended 31 October 2025.The Company has no employees.
3
Relates to legal and professional fees and other administration costs written back in the year ended
4
For the year ended
5
The Company’s ongoing charges are calculated as a percentage of average daily net assets and using the management fee and all other operating expenses, excluding finance costs, direct transaction costs, custody transaction charges, VAT recovered, taxation, prior year expenses written back and certain non-recurring items. Alternative Performance Measure, see Glossary in the Company’s Annual Report for the year ended
6. Finance costs
2025 2024
Revenue Capital Total Revenue Capital Total
£’000 £’000 £’000 £’000 £’000 £’000
Interest
on
Sterling 70 210 280 62 185 247
bank
loan
Loan
facility 21 63 84 1 2 3
fees
--------------- --------------- --------------- --------------- --------------- ---------------
Total 91 273 364 63 187 250
========= ========= ========= ========= ========= =========
Finance costs have been allocated 25% to the revenue account and 75% to the capital account of the Income Statement.
7. Dividends
Dividends paid 2025 2024
on equity Record date Payment date £’000 £’000
shares:
2023 Final
dividend of 9 February 2024 15 March 2024 – 984
4.80p
2024 Interim
dividend of 26 July 2024 3 September 2024 – 538
2.70p
2024 Final
dividend of 7 February 2025 14 March 2025 954 –
4.90p
2025 Interim
dividend of 25 July 2025 2 September 2025 519 –
2.70p
--------------- ---------------
Accounted for
in the 1,473 1,522
financial
statements
========= =========
The Directors have proposed a final dividend of 5.00p per share in respect of the year ended
The total dividends payable in respect of the year which form the basis of determining retained income for the purpose of Section 1158 of the Corporation Tax Act 2010 and Section 833 of the Companies Act 2006, and the amount proposed for the year ended
2025 2024
Dividends paid or declared on equity shares £’000 £’000
Interim paid of 2.70p (2024: 2.70p) 519 538
Final proposed of 5.00p1 (2024: 4.90p) 940 959
--------------- ---------------
Total for the year 1,459 1,497
========= =========
1
Based on 18,793,794
ordinary shares (excluding treasury shares) in issue on
All dividends paid or payable are distributed from the Company’s current year revenue profits and, if required, from brought forward revenue reserves.
8. Earnings and net asset value per ordinary share
Revenue earnings, capital earnings and net asset value per ordinary share are shown below and have been calculated using the following:
2025 2024
Net revenue profit attributable to ordinary 1,400 1,454
shareholders (£’000)
Net capital profit attributable to ordinary 4,448 5,381
shareholders (£’000)
--------------- ---------------
Total profit attributable to ordinary 5,848 6,835
shareholders (£’000)
========= =========
Total shareholders’ funds (£’000) 46,715 43,760
========= =========
Earnings per share
The weighted average number of ordinary shares
in issue during the year on which the earnings 19,351,511 20,193,264
per ordinary share was calculated was:
The actual number of ordinary shares in issue at
the year end on which the net asset value per 18,991,794 19,692,612
ordinary share was calculated was:
Calculated on weighted average number of
ordinary shares:
Revenue earnings per share (pence) – basic and 7.23 7.20
diluted
Capital earnings per share (pence) – basic and 22.98 26.65
diluted
--------------- ---------------
Total earnings per share (pence) – basic and 30.21 33.85
diluted
========= =========
As at As at
31 October 31 October
2025 2024
Net asset value per ordinary share (pence) 245.97 222.22
Ordinary share price (pence) 219.00 193.50
========= =========
There were no dilutive securities at the year end (2024: nil).
9. Called up share capital
Ordinary Treasury Total Nominal
shares shares shares value
number number number £’000
Allotted, called
up and fully
paid share
capital
comprised:
Ordinary shares
of 1 pence each:
At 31 October 20,603,486 10,081,532 30,685,018 307
2023
Ordinary shares
purchased for (910,874) – (910,874) (9)
cancellation
--------------- --------------- --------------- ---------------
At 31 October 19,692,612 10,081,532 29,774,144 298
2024
========= ========= ========= =========
Ordinary shares
purchased for (700,818) – (700,818) (7)
cancellation
At 31 October 18,991,794 10,081,532 29,073,326 291
2025
========= ========= ========= =========
During the year 700,818 ordinary shares (2024: 910,874) were purchased and subsequently cancelled for a total consideration including expenses of £1,420,000 (2024: £1,709,000).
Since the year end and up to
The number of ordinary shares in issue at the year end was 29,073,326 (2024: 29,774,144) of which 10,081,532 (2024: 10,081,532) were held in treasury.
10. Reserves
Capital
Capital reserve
reserve (arising on
Share Capital (arising on revaluation of
premium redemption investments investments Special Revenue
account reserve sold) held) reserve reserve
£’000 £’000 £’000 £’000 £’000 £’000
At 31 October 14,819 242 7,473 2,793 12,391 2,131
2023
Movement
during the
year:
Total
comprehensive
(loss)/income:
Net profit for – – 1,629 3,752 – 1,454
the year
Transactions
with owners,
recorded
directly to
equity:
Ordinary
shares – 9 – – (1,700) –
purchased for
cancellation
Share purchase – – – – (9) –
costs
Dividends paid
during the – – – – – (1,522)
year
--------------- --------------- --------------- --------------- --------------- ---------------
At 31 October 14,819 251 9,102 6,545 10,682 2,063
2024
========= ========= ========= ========= ========= =========
Movement
during the
year:
Total
comprehensive
income:
Net
(loss)/profit – – (804) 5,252 – 1,400
for the year
Transactions
with owners,
recorded
directly to
equity:
Ordinary
shares – 7 – – (1,413) –
purchased for
cancellation
Share purchase – – – – (7) –
costs
Dividends paid
during the – – – – – (1,473)
year
--------------- --------------- --------------- --------------- --------------- ---------------
At 31 October 14,819 258 8,298 11,797 9,262 1,990
2025
========= ========= ========= ========= ========= =========
The Company’s share premium account was cancelled pursuant to shareholders’ approval of a special resolution at the Company’s Annual General Meeting in 2002 and Court approval on
The share premium account and capital redemption reserve of £14,819,000 and £258,000 (2024: £14,819,000 and £251,000) are not distributable reserves under the Companies Act 2006. In accordance with ICAEW Technical Release 02/17BL on Guidance on Realised and Distributable Profits under the Companies Act 2006, the special reserve and capital reserves may be used as distributable reserves for all purposes and, in particular, the repurchase by the Company of its ordinary shares and for payments such as dividends. In accordance with the Company’s Articles of Association, the special reserve, capital reserves and the revenue reserve may be distributed by way of dividend. The gain on the capital reserve arising on the revaluation of investments of £11,797,000 (2024: £6,545,000) is subject to fair value movements and may not be readily realisable at short notice, as such it may not be entirely distributable. The investments are subject to financial risks, as such capital reserves (arising on investments sold) and the revenue reserve may not be entirely distributable if a loss occurred during the realisation of these investments.
As at
11. 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 at bank, bank overdrafts and bank loans). Section 34 of FRS 102 requires the Company to classify fair value measurements using a fair value hierarchy that reflects the significance of inputs used in making the measurements. The valuation techniques used by the Company are explained in the accounting policies note to the Financial Statements above.
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 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 an analysis of the Company’s financial instruments measured at fair value at the balance sheet date.
Level 1 Level 2 Level 3 Total
Financial assets at fair value through £’000 £’000 £’000 £’000
profit or loss
Equity investments at 31 October 2025 49,569 – – 49,569
Equity investments at 31 October 2024 45,096 – – 45,096
========= ========= ========= =========
There were no transfers between levels of financial assets and financial liabilities recorded at fair value during the year ended
For exchange listed equity investments, the quoted price is the bid price. Substantially, all investments are valued based on unadjusted quoted market prices. Where such quoted prices are readily available in an active market, such prices are not required to be assessed or adjusted for any price related risks, including climate risk, in accordance with the fair value related requirements of the Company’s financial reporting framework.
12. Transactions with the Investment Manager and AIFM
The investment management fee due for the year ended
The Company is entitled to a rebate from the investment management fee charged by the Manager in the event the Company’s ongoing charges exceeds the cap of 1.15% per annum of average daily net assets. The amount of rebate accrued to
In addition to the above services, BIM (
The Company holds an investment in the
The ultimate holding company of the Manager and the Investment Manager is BlackRock, Inc., a company incorporated in
13. Related party disclosure
At the date of this report, the Board consists of four non-executive Directors, all of whom are considered to be independent of the Manager by the Board.
Disclosures of the Directors’ interests in the ordinary shares of the Company and fees and expenses payable to the Directors are set out in the Directors’ Remuneration Report in the Company’s Annual Report for the year ended
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
held Number of Significant
by Significant Investors who are not
Total % of shares Investors affiliates of
held by who are not BlackRock
Related affiliates Group or
BlackRock Funds of BlackRock Group or BlackRock, Inc.
BlackRock, Inc.
As at 31 October nil n/a n/a
2025
As at 31 October Nil n/a n/a
2024
========= ========= =========
14. Contingent liabilities
There were £nil contingent liabilities at
15. Publication of Non- Statutory Accounts
The financial information contained in this announcement does not constitute statutory accounts as defined in the Companies Act 2006. The Annual Report and Financial Statements for the year ended
The comparative figures are extracts from the audited financial statements of
16. Annual Reports
Copies of the Annual Report will be sent to members shortly and will be available from the registered office c/o The Company Secretary,
17. Annual General Meeting
The Annual General Meeting of the Company will be held at
ENDS
The Annual Report will also be available on the BlackRock website at blackrock.co.uk/brig. Neither the contents of the Manager's website nor the contents of any website accessible from hyperlinks on the Manager's website (or any other website) is incorporated into, or forms part of, this announcement.
For further information, please contact:
Tel: 020 7743 3893
Press enquires:
Tel: 020 7294 3620
E-mail: BlackRockInvestmentTrusts@lansons.com or EdH@lansons.com
EC2N 2DL
Release
