Strategic Equity Capital Plc - Half-year Financial Report
Legal Entity Identifier: 2138003R5GB8QZU2G577
Report & Financial Statements for the half-year ended
FINANCIAL SUMMARY
____________________________________________________________________________ | |As at 31 |As at 30 June|As at 31 December|Six months % | |Capital Return |December 2025|2025 |2024 |change to 31 | | | | | |December 2025| |________________|_____________|_____________|_________________|_____________| |Net asset value | | | | | |(“NAV”) per |395.53p |392.47p |358.41p |0.8% | |Ordinary shareǂ | | | | | |________________|_____________|_____________|_________________|_____________| |Ordinary share |370.00p |363.00p |331.00p |1.9% | |price | | | | | |________________|_____________|_____________|_________________|_____________| |Comparative |6,260.89 |6,175.33 |5,863.19 |1.4% | |index* | | | | | |________________|_____________|_____________|_________________|_____________| |Discount of | | | | | |Ordinary share |(6.5)% |(7.5)% |(7.6)% | | |price to NAV1 | | | | | |________________|_____________|_____________|_________________|_____________| |Average discount| | | | | |of Ordinary | | | | | |share price to |(8.5)% |(8.4)% |(7.8)% | | |NAV for the | | | | | |period1 | | | | | |________________|_____________|_____________|_________________|_____________| |Total assets |149,585 |174,399 |167,072 |(14.2)% | |(£’000) | | | | | |________________|_____________|_____________|_________________|_____________| |Equity | | | | | |shareholders’ |149,256 |174,153 |166,733 |(14.3)% | |funds (£’000) | | | | | |________________|_____________|_____________|_________________|_____________| |Ordinary shares | | | | | |in issue with |37,735,567 |44,373,800 |46,520,577 | | |voting rights | | | | | |________________|_____________|_____________|_________________|_____________|
_____________________________________________________________________________ |Performance |Six month period to|Year ended 30 June|Six month period to| | |31 December 2025 |2025 |31 December 2024 | |__________________|___________________|__________________|___________________| |NAV total return |1.8% |(0.1)% |(8.8)% | |for the period1 | | | | |__________________|___________________|__________________|___________________| |Share price total | | | | |return for the |3.1% |0.4% |(8.5)% | |period1 | | | | |__________________|___________________|__________________|___________________| |Comparative index | | | | |total return for |3.1% |13.1% |5.2% | |the period* | | | | |__________________|___________________|__________________|___________________| |Ongoing charges - |1.30% |1.26% |1.20% | |annualised1 | | | | |__________________|___________________|__________________|___________________| |Ongoing charges | | | | |(including |1.30% |1.26% |1.20% | |performance fee) -| | | | |annualised1 | | | | |__________________|___________________|__________________|___________________| |Revenue return per|0.33p |5.03p |3.70p | |Ordinary share | | | | |__________________|___________________|__________________|___________________| |Dividend yield1 |n/a |1.17% |n/a | |__________________|___________________|__________________|___________________| |Proposed final | | | | |dividend for the |n/a |4.25p |n/a | |period | | | | |__________________|___________________|__________________|___________________|
___________________________________________ |Interim period’s Highs/Lows|High |Low | |___________________________|_______|_______| |NAV per Ordinary share |427.67p|302.97p| |___________________________|_______|_______| |Ordinary share price |390.00p|272.00p| |___________________________|_______|_______|
ǂ Net asset value or NAV, the value of total assets less current liabilities. The net asset value divided by the number of shares in issue produces the net asset value per share.
* FTSE SmallCap (ex Investment Trusts) Index.
1 Alternative Performance Measure.
The Report & Financial Statements for the six months ended
Copies of this announcement, annual and half-year reports, quarterly update presentations and other corporate information can be found on the Company’s website at:
www.strategicequitycapital.com
For further information, please contact:
Strategic Equity Capital plc (via Juniper Partners )
William Barlow (Chairman) +44 (0)131 378 0500
Liberum Capital Limited (Corporate Broker)
Chris Clarke +44 (0)20 3100 2000
Darren Vickers Juniper Partners Limited (Company Secretary)
+44 (0)131 378 0500
Steven Davidson KL Communications (PR Adviser)
Charles Gorman gh@kl-communications.comAdam Westall
+44 (0)20 3995 6673
Charlotte Francis
Chairman’s Statement
I am pleased to present the Interim Report for
Most notably, the period saw the conclusion of the Company’s scheduled realisation opportunity. The Board was delighted to note that the vast majority of shareholders (representing c. 78% of issued shares) chose to continue their investment in the Company, a decision the Board views as a strong endorsement of the Investment Manager’s strategy and the long-term potential of the portfolio.
The Company’s Net Asset Value (NAV) per share (on a total return basis) increased by 1.8% during the 6 months. Over the same period, the Company’s share price delivered a total return of +3.1%. This compared to the FTSE Small Cap (ex Investment Trusts) Total Return Index (“FTSE Small Cap Index”), which also rose by 3.1%.
The period under review was characterised by continued volatility in equity markets, particularly within
An overview of the reporting period, portfolio activity and outlook is set out in the Investment Manager’s Report that follows.
Performance
Market sentiment towards
Against this backdrop, the Board continues to emphasise long-term outcomes and intrinsic value creation. Since
Recent corporate activity, including the takeovers of
Realisation Opportunity
A key strategic priority for the Board during the period was the implementation of the realisation opportunity whereby shareholders were given the opportunity to tender up to 100% of their shares held, as committed to in 2022.
In
Assets were allocated proportionately between the
Discount and Discount Management
The Company’s shares continued to trade at a discount to Net Asset Value during the period, reflecting broader market conditions rather than any change in the quality or prospects of the portfolio.
The Board remains committed to disciplined discount management in the
Risk Management
The Investment Manager continues to apply a disciplined and research-driven approach to risk management, focusing on high-quality businesses with resilient balance sheets, strong cash generation and defensive revenue profiles. These attributes provide a degree of protection in uncertain macroeconomic conditions.
The portfolio remains diversified across sectors that are less exposed to global trade disruption and more reflective of the
Valuation
The Board maintains that the valuation opportunity within
This valuation disconnect continues to attract corporate interest, contributing to elevated levels of takeover activity and private equity engagement. The Board believes this dynamic will support realisation opportunities over time and underscores the importance of patient capital in capturing intrinsic value.
Marketing
Marketing and shareholder engagement remain strategic priorities. During the period, the Board oversaw ongoing outreach through investor briefings, portfolio commentary and media engagement. These activities are designed to deepen understanding of SEC’s differentiated investment proposition and to support demand for the Company’s shares.
Broader industry engagement continues to emphasise the structural opportunity within
Gearing and Cash Management
The Company has maintained its policy of operating without a banking loan facility over the period. This policy is reviewed regularly by the Board in conjunction with the Investment Manager to ensure it remains appropriate in the context of market conditions and portfolio positioning.
Board Succession
As previously noted in the Company’s 2025 Annual Report,
The Board has commenced a formal process to identify suitable candidates to fill the two non-executive director roles resulting from these Board changes. Further announcements will be made in due course as this process progresses.
Outlook
The Board believes the outlook for
Despite ongoing negative domestic fund flows, international capital has begun to recognise the relative value opportunity in
Valuation dispersion between larger
Elevated corporate activity, including takeover and private equity interest, continues to offer tangible catalysts for value realisation, a theme that has been evident in recent portfolio exits. This combination of valuation support, improving liquidity conditions and corporate engagement contributes to the Board’s constructive medium-term view for
Accordingly, the Board remains confident that the continuing pool is well positioned to benefit from these dynamics and that the Company’s strategy remains appropriate for delivering attractive long-term returns for shareholders.
The Board thanks shareholders for their continued support.
Chairman
Investment Manager’s Report – Introduction
Why
Expertise and Proven
A Distinctive Approach
The
-- providing primary capital
-- facilitating strategic shifts or operational improvements
-- pre-IPO funding
-- acting as a catalyst for mergers and acquisitions
Powerful Network
The Investment Manager’s network of advisers and connections provides challenge, validation and insight to the investment team, which in turn drives better decision making, stock-selection and ultimately, value to
Active and Engaged
Strong Fundamentals
The Investment Manager focuses on businesses that demonstrate fundamentally profitable business models, strong cash generation, attractive returns on capital and defensible market positions. Early-stage, pre-profit and highly cyclical businesses are deliberately avoided.
Disciplined and repeatable process
The investment portfolio is constructed on a “bottom up” basis, with a focus on individual company fundamentals and idiosyncratic components of risk and reward, rather than “top down” thematic or macro positioning. Targeted due diligence is conducted on the critical judgements for each investment case, with a focus on identifying and mitigating key risk areas with a view to downside protection. Each investment is subject to a conviction score across six categories, upon which valuation and asymmetry of returns is overlaid.
Our Strategic Public Equity Strategy
The appointment of
Investment Focus
Our investment focus is to invest into high quality, publicly listed companies which we believe can materially increase their value over the medium to long term through strategic, operational or management change. To select suitable investments and to assist in this process we apply our proprietary Strategic Public Equity (“SPE”) investment strategy. This includes a much higher level of engagement with management than most investment managers adopt and is closer in this respect to a private equity approach to investing in public markets companies. Our path to achieving this involves constructing a high conviction, concentrated portfolio; focusing on quality business fundamentals; undertaking deep due diligence including engaging our proprietary network of experts and assessing ESG risks and opportunities through the completion of the ESG decision tool; and maintaining active stewardship of our investments.
Through constructive, active engagement with the management teams and boards of directors, we seek to ensure alignment with shareholder objectives and to provide support and access to other resource and expertise to augment a company’s value creation strategy. We are long term investors and typically aim to hold companies for three-to-five years to back a thesis that includes an entry and exit strategy and a clearly identified route to value creation. We have clear parameters for what we will invest in and areas which we will deliberately avoid.
Smaller Company Focus
We believe that
Inefficient Markets: Smaller companies are often under-researched, presenting opportunities for those willing to devote time and resources.
Large Universe:
Most
Valuation Discounts: These discounts present attractive entry points where the intrinsic value of a company’s long-term prospects is undervalued.
M&A Activity: Smaller companies often offer strategic opportunities within their niche markets and can become attractive acquisition targets for both trade and private equity buyers.
We maintain a concentrated portfolio of 15-25 high conviction holdings with prospects for attractive absolute returns over our investment holding period. The majority of portfolio value is likely to be concentrated in the top 10 holdings, with other positions representing smaller initial “toehold” investments where we are awaiting a catalyst to increase our stake to an influential, strategic level. Bottom up stock picking determines SEC’s sector weightings, which are not explicitly managed relative to a target benchmark weighting. The absence of certain sectors such as oil & gas, mining, and banks, as well as limited exposure to overtly cyclical parts of the market, typically result in a portfolio weighted towards businesses with sustainable profit and cash generation characteristics. This is further reinforced by the absence of early stage or pre-profit businesses from the portfolio.
As a result, whilst the portfolio’s sector composition may vary between reporting periods, over the long term it is expected to comprise primarily technology, healthcare, business services, financials and industrials businesses.
The underlying value drivers are typically company-specific and they exhibit limited correlation even within the same broad sectors. The pie-chart on page 17 of the Interim Report sets out the sector exposure of the Company as at
Once purchased there is no upper limit restriction on the market capitalisation of an individual investment. We may run active positions regardless of market capitalisation provided they continue to deliver the expected contribution to overall portfolio returns and subject to exposure limits and portfolio construction considerations.
Constructive Active Engagement Approach
Where appropriate the GHAM team is able to leverage its combined interest in an
The team engages with company management and boards in several areas, including:
-- Strategy:Ensuring that business strategy and operations align with
long-term value creation and focus on building strategic value within a
company’s market.
-- Corporate Activity: Supporting acquisition and divestment activities
through advice, network introductions, and cornerstone capital.
-- Capital Allocation: Optimising capital allocation by prioritising the
highest return and value-added projects.
-- Board Composition: Ensuring boards are appropriately balanced and
introducing high-quality candidates as needed.
-- Management Incentivisation:Aligning management incentives with long-term
shareholder value.
-- ESG: Leveraging Gresham House’s sustainable investing framework to
identify, understand, and monitor key ESG risks and opportunities, with
a particular focus on corporate governance.
-- Investor Relations: Assisting management teams in refining their equity
story and targeting investor relations activities to ensure market
understanding and value creation.
Engagement is typically undertaken privately, leveraging the resources of the
Investment Manager’s Report for the half-year ended
1) Overview – H2 2025
The six months to
A dominant theme during the period was the domestic political environment. The protracted lead-up to the 2025 Autumn Budget created a vacuum of uncertainty that weighed heavily on risk appetite. Speculation regarding tax policy changes specifically impacted asset allocation decisions (through, for example, SIPP withdrawals), causing a hiatus in investment decision-making and exacerbating liquidity challenges in the sector. While the final Budget announcement provided clarity, the months of speculation delayed the recovery in sentiment that fundamental data otherwise supported.
Despite this backdrop, operational performance across the Company’s portfolio was generally resilient. The majority of portfolio companies continued to trade in line with, or ahead of, management expectations, supported by strong balance sheets, recurring revenues and defensible market positions.
Importantly, depressed public market valuations continued to act as a catalyst for corporate activity, reinforcing the relevance of the Company’s private equity-style investment approach.
2) Performance – H2 2025
The Company’s Net Asset Value (NAV) per share (on a total return basis) increased by 1.8% during the 6 months. Over the same period, the Company’s share price delivered a total return of +3.1% . This compared to the FTSE Small Cap (ex Investment Trusts) Total Return Index (“FTSE Small Cap Index”), which also rose by 3.1% .
Performance during the period was driven primarily by stock-specific factors rather than broader market movements. Corporate activity was a notable contributor, with realisations validating underlying investment theses. Elsewhere, share price movements reflected a combination of company-specific developments and broader market sentiment towards
Key contributors to performance during the year included:
-- TruFin (+210 bps contribution to return “CTR”)*, following multiple
forecast upgrades due to the continued strong performance of its
Playstack division.
-- Next 15 Group (+131 bps CTR), after its interim results showed trading
in line with full-year expectations supported by disciplined cost
management and portfolio simplification, and the company completed the
sale of non-core assets such as the Beyond unit, reinforcing strategic
focus and strengthening operational momentum.
-- Tribal Group (+119 bps CTR), following a trading update that reaffirmed
the Group was on track to deliver full-year revenue in line with
expectations, adjusted EBITDA ahead of consensus and the move to a net
cash position.
The main detractors over the period were:
-- Iomart Group (-154 bps CTR), reflecting a continuation of revenue
pressure in its legacy self-managed infrastructure division, which had
led to a profit downgrade in the period.
-- Fintel (-78 bps CTR), despite encouraging business momentum (in
particular SaaS revenue growth).
-- Spire Healthcare Group (-72 bps CTR), following a downgrade to 2026
profit expectations due to heightened uncertainty around the volume of
NHS commissioning and below-inflation tariff increases proposed by NHS England .
* CTR (Contribution To Return) for an investment in the Company’s portfolio is the daily total return multiplied by the daily weight, compounded over the reporting period.
3) Portfolio Activity
New investments
We made three new investments during the period:
-- ActiveOps, a leading enterprise software provider specialising in
back-office management which is led by a high-quality Executive Chair,
operating in a structurally expanding market with a dominant position,
and benefitting from attractive SaaS financial characteristics,
including c.90% recurring revenue, double-digit organic growth, and
strong cash flow generation.
-- Watkin Jones , a specialist property development and management business
focussed on the UK build-to-rent and purpose-built student accommodation
sectors. Watkin Jones deploys a capital-light forward funding model, is
well capitalised with a strong net cash balance sheet, and is already
benefitting from the gradual recovery in development activity and the
growth in its non-cyclical refurbishment and property management
offerings. The business trades at a substantial discount to net tangible
asset value and, the Manager believes, has the potential to re-rate
materially from its current Enterprise Value multiple.
-- Spire Healthcare, the UK’s largest private hospital group by revenue,
which operates in a structurally attractive UK private healthcare
market, is executing on a clear strategy to grow profit per theatre, is
cutting costs materially to expand operating margins, and is building a
scaled primary care business to drive referral income into the higher
margin hospital business. Spire trades at a substantial discount to the
freehold value of its property portfolio, the value of which could be
catalysed by an ongoing Strategic Review process.
Follow-on investments
During the period, the Investment Manager made selective follow-on investments into existing holdings where share price weakness was assessed to be disconnected from long-term fundamentals, including Diaceutics, Costain Group,
Full exits
Corporate activity continued to provide opportunities to crystallise value.
We made three full exits during the period:
-- Benchmark Holdings, pursuant to a Tender Offer return of proceeds
following the disposal of its Genetics division at a 48% premium to the
ex-cash equity value of the company.
-- Inspired, following an all-cash Recommended Takeover by HGGC, a US
mid-market private equity firm, at 81p per share, a c. 33% premium to
the undisturbed share price and a c. 103% premium to the 40p equity
recapitalisation led by the Manager in January 2025 .
-- Ricardo, following the agreed all-cash Recommended Takeover by WSP
Global at a c. 70% premium versus the 90-day volume-weighted average
price.
These exits followed periods of active engagement and strategic progress, validating the Investment Manager’s assessment of intrinsic value.
4) Tender Offer and Realisation
A significant corporate development during the period was the completion of the Tender Offer announced in
A total of 9,510,496 Ordinary Shares were validly tendered, representing approximately 22% of the Company’s issued share capital. Crucially, with 78% of shares electing to remain invested, the
Assets were allocated pro rata between the
Shareholders who tendered will receive returns of capital as assets within the
Top Five Absolute Contributors to Performance
________________________________________ | |Valuation |Period | | | | | | |31 December|Contribution | |Security | | | | |2025 |to return | | | | | | |£’000 |(basis points)| |_____________|___________|______________| |Trufin |14,461 |210 | |_____________|___________|______________| |Next 15 Group|7,867 |131 | |_____________|___________|______________| |Tribal Group |8,086 |119 | |_____________|___________|______________| |Costain Group|14,944 |113 | |_____________|___________|______________| |Active Ops |7,824 |95 | |_____________|___________|______________|
Bottom Five Absolute Contributors to Performance
_________________________________________________ | |Valuation |Period | | | | | | |31 December|Contribution | |Security | | | | |2025 |to return | | | | | | |£’000 |(basis points)| |______________________|___________|______________| |Iomart Group |4,386 |(154) | |______________________|___________|______________| |Fintel |6,779 |(78) | |______________________|___________|______________| |Spire Healthcare Group|2,064 |(72) | |______________________|___________|______________| |Ricardo |- |(36) | |______________________|___________|______________| |Netcall |11,438 |(31) | |______________________|___________|______________|
5) Outlook – FY 2025/26
Looking ahead, while macroeconomic and geopolitical risks remain elevated, we believe the outlook for
Valuation dispersion between
As highlighted in broader public equity outlook work, several potential catalysts could support improved returns in 2026, including easing monetary policy, stabilising inflation, improving liquidity conditions and a gradual reopening of equity capital markets. Furthermore, with the uncertainties of the 2025 Budget now resolved, we expect corporate confidence to return, allowing management teams to refocus on growth and capital allocation rather than regulatory preservation. Even modest capital reallocation into
Corporate activity remains a key theme. Strategic and private equity buyers continue to recognise the value opportunity in
Importantly, the Company’s investment cases do not depend on a broad market recovery. The portfolio is constructed around company-specific value creation, supported by strong fundamentals, clear strategic drivers and active engagement. Any improvement in market sentiment represents upside optionality rather than a prerequisite for attractive returns.
The Investment Manager remains focused on executing its high-conviction, bottom-up strategy and believes the
Top 10 Investee Company Review
(as at
______________________________________________________________________________ |Company |Investment Thesis |Developments | |______________________|___________________________|___________________________| | | -- UK infrastructure | | | | delivery partner | -- Continued orderbook| | | with particularly | momentum, | | | strong franchise | particularly | | | presence across | winning AMP8 | | | Rail and Water | framework | | | (secular growth | agreements in the | | | markets). | Water sector. | | | -- Significantly | -- H1 results | | | better capitalised | demonstrated the | |Costain Gorup | versus history, | successful | | | with a | mix-shift toward | | | substantially | higher-margin | | | de-risked | consultancy | | | contracting model. | revenue. | | | -- Embedded | -- Maintained strong | | | consultancy | net cash position, | | | offering delivering| supporting the | | | material margin | reinstatement of | | | upside above and | dividends. | | | beyond project | | |______________________|________delivery.__________|___________________________| | | | -- Multiple forecast | | | -- Provider of | upgrades driven by | | | financing, payment | exceptional | | | and video game | performance in the | | | publishing software| Playstack division.| |Trufin | and services. | -- Successful launches| | | -- Significant latent | of Balatro and | | | value when | Abiotic Factor | | | appraised on a | drove revenue | | | sum-of-the-parts | significantly ahead| | | basis. | of market | |______________________|___________________________|________expectations.______| | | -- UK focused wealth | | | | management | -- Completed the | | | platform; | disposal of its | | | structural growth | non-core | | | given continuing | international | | | transition to | division, | | | self-investment. | simplifying the | | | -- Opportunity to | group structure. | |Brooks Macdonald | leverage | -- Completed migration| | | operational | from AIM to the | | | investments to grow| Main Market to | | | margin and continue| broaden investor | | | strong cash flow | access. | | | generation. | -- First net organic | | | -- A consolidating | inflow period in 3 | | | market; opportunity| years (Q4 Calendar | | | for Brooks as both | Year 2025). | | | consolidator and | | |______________________|________potential_target.__|___________________________| | | -- Independent video | | | | game publisher and | -- Reported interim | | | developer. | results | | | -- Earnings | demonstrating | | | significantly | growth in back | |Everplay Group | underpinned by back| catalogue revenue, | | | catalogue sales | helping offset | | | (e.g. Worms | softer new release | | | franchise). | schedules across | | | -- Significant founder| the broader | | | ownership and | industry. | | | experienced | | |______________________|________management_team.___|___________________________| | | -- Provider of | | | | AI-driven process | | | | automation and | -- FY25 trading update| | | customer engagement| demonstrated | | | solutions. | double-digit | | | -- Structural | organic growth | | | tailwinds driving | driven by Cloud | |Netcall | adoption of process| ACV. | | | automation and | -- Increasing adoption| | | “Liberty Cloud” | of AI capabilities | | | platform. | within the Liberty | | | -- High levels of | platform by | | | revenue visibility | existing customer | | | due to contracted | base. | | | revenues and >100% | | | | Net Revenue | | |______________________|________Retention._________|___________________________| | | -- Commercialisation | | | | data and service | | | | provider for the | | | | global | -- Reported >20% | | | pharmaceutical | organic revenue | | | industry. | growth and EBITDA | | | -- High quality, | ahead of | | | recurring revenue | expectations for | |Diaceutics | model based on | 2025. | | | proprietary data | -- Continued contract | | | and platform | wins with top-tier | | | technology. | global pharma | | | -- Structural growth | clients, with 18 of| | | in precision | the top 20 global | | | medicine requires | pharma companies | | | better diagnostic | now clients. | | | testing, directly | | | | benefiting | | |______________________|________Diaceutics.________|___________________________| | | -- Structurally | | | | growing UK | | | | residential | | | | lettings market | | | | leader. | -- Analyst upgrades | | | -- Exceptional quality| through 2025, | | | of earnings due to | reflecting growth | |The Property Franchise| franchisees’ bias | in management | |Group | towards lettings | service fees and | | | revenues and | demonstrating | | | management service | resilience against | | | fees. | a stagnant sales | | | -- Capital light and | market. | | | highly cash | | | | generative model | | | | supporting | | | | progressive | | |______________________|________dividends._________|___________________________| | | -- Leading | -- Delivered strong | | | ‘challenger’ brand | interim results | | | in the pensions | with c.13% | | | consulting and | year-on-year | | | administration | revenue growth. | | | market. | -- Continued demand | | | -- Highly defensive | for advisory | |XPS Pensions Group | with high degree of| services driven by | | | revenue visibility | gilt volatility and| | | and inflation | “McCloud Remedy” | | | pass-through | regulations. | | | ability. | -- Strong cash | | | -- Beneficiary of | generation | | | regulatory change | supporting both | | | and increased | organic investment | | | demand for advisory| and dividends. | |______________________|________services.__________|___________________________| | | -- Global provider of | | | | student information| | | | systems to the | -- Double digit ARR | | | education sector. | growth in FY25 and | | | -- Transitioned | Adjusted EBITDA | | | business model to | ahead of consensus,| |Tribal Group | Software as a | driving a share | | | Service (“SaaS”), | price re-rating. | | | improving quality | -- Substantially | | | of earnings vs. | improved net cash | | | history. | position reduces | | | -- Significant | balance sheet risk.| | | medium-term growth | | | | tailwind as legacy | | |______________________|________contracts_roll_off.|___________________________| | | -- Tech-enabled growth| -- Completed the sale | | | consultancy with a | of non-core assets | | | focus on data and | (including the | | | digital marketing. | Beyond unit), | | | -- Trades at a | reinforcing | | | significant | strategic focus on | |Next 15 Group | valuation discount | high-growth | | | relative to its | segments. | | | earnings growth and| -- Disciplined cost | | | cash generation | management has | | | profile. | protected margins | | | -- Potential value | during a period of | | | realisation from | slower client | | | portfolio | spend. | |______________________|________divestment.________|___________________________|
Portfolio as at
% of % of
Date of Cost Valuation invested invested % of
Company Sector first portfolio portfolio net
Classification investment £’000 £’000 at 31 at 30 assets
December June 2025
2025
Industrial
Costain Group Jun 2024 8,664 14,944 10.5% 11.0% 10.0%
Goods &
Services
TruFin Technology Jul 2023 7,805 14,461 10.2% 6.5% 9.7%
Brooks Financial Jun 2016 16,327 14,068 9.9% 10.5% 9.4%
Macdonald Services
Everplay Technology Dec 2023 8,481 12,888 9.1% 9.5% 8.6%
Group
Netcall Technology Mar 2023 10,298 11,438 8.1% 7.3% 7.7%
Diaceutics Healthcare Sep 2024 11,088 10,520 7.4% 3.6% 7.0%
The Property
Business Oct 2023 6,141 9,886 7.0% 7.8% 6.6%
Franchise Services
Group
XPS Pensions Business Jul 2019 3,305 8,087 5.7% 5.6% 5.4%
Group Services
Tribal Group Technology Dec 2014 8,260 8,086 5.7% 2.2% 5.4%
Next 15 Group Business Oct 2024 8,218 7,867 5.5% 4.0% 5.3%
Services
ActiveOps Technology Jul 2025 6,428 7,824 5.5% – 5.2%
Fintel Business Oct 2020 6,448 6,779 4.8% 4.1% 4.5%
Services
Industrial
Watkin Jones Aug 2025 4,251 4,466 3.1% – 3.0%
Goods &
Services
Iomart Group Technology Mar 2022 26,451 4,386 3.1% 3.0% 3.0%
Halfords Consumer Jun 2024 4,533 4,251 3.0% 3.5% 2.8%
Group
Spire
Healthcare Healthcare Sep 2025 2,964 2,064 1.5% – 1.5%
Group
R&Q Financial Jun 2022 6,816 – 0.0% 0.0% 0.0%
Insurance* Services
Total 142,015 95.1%
investments
Cash 7,358 4.9%
Net current (117) 0.0%
liabilities
Total
shareholders' 149,256 100.0%
funds
* in liquidation
Statement of Directors’ Responsibilities, Going Concern, Principal Risks and Uncertainties
Statement of Directors’ Responsibilities
The Directors confirm that to the best of their knowledge:
-- the condensed set of financial statements contained within the
Half-Yearly Report has been prepared in accordance with IAS 34, ‘Interim
Financial Reporting’, and give a true and fair view of the assets,
liabilities, financial position and profit of the Company as required by
Disclosure Guidance and Transparency Rules (“DTR”) 4.2.4R;
-- the Half-Yearly Report includes a fair review of the information
required by:
(a) DTR 4.2.7 of the Disclosure Guidance and Transparency Rules, being an indication of important events that have occurred during the first six months of the financial year and their impact on the condensed set of financial statements; and a description of the principal risks and uncertainties for the remaining six months of the year; and
(b) DTR 4.2.8 of the Disclosure Guidance and Transparency Rules, being related party transactions that have taken place in the first six months of the current financial year and that have materially affected the financial position or performance of the Company during that period; and any changes in the related party transactions described in the last Annual Report that could do so.
This Half-Yearly Report was approved by the Board of Directors on
Going Concern
The Company has adequate financial resources to meet its investment commitments and, and as a consequence, the Directors believe that the Company is well placed to manage its business risks. After making appropriate enquiries and due consideration of the Company’s cash balances and the liquidity of the Company’s investment portfolio, the Directors have a reasonable expectation that the Company has adequate available financial resources to continue in operational existence for the foreseeable future and accordingly have concluded that it is appropriate to continue to adopt the going concern basis in preparing the Half-Yearly Report, consistent with previous periods.
Principal Risks and Uncertainties
The Board believes that the overriding risks to shareholders are events and developments which can affect the general level of share prices, including, for instance, inflation or deflation, economic recessions and movements in interest rates and currencies which are outside of the control of the Board.
The principal risks and uncertainties are set out on pages 20 to 22 of the Annual Report for the year ended
The Company’s principal risks and uncertainties have not changed since the date of the Annual Report and are not expected to change for the remaining six months of the Company’s financial year.
Statement of Comprehensive Income
for the six month period to
Six month period ended Year ended Six month period to
31 December 2025 30 June 2025 31 December 2024
unaudited audited unaudited
Revenue Capital Revenue Capital Revenue Capital
Total Total Total
return return return return return return
£'000 £’000 £'000
£'000 £'000 £’000 £’000 £'000 £'000
Investments
Gains/
(losses) on
investments
held at fair - 3,336 3,336 - (4,998) (4,998) - (18,649) (18,649)
value through
profit or
loss
- 3,336 3,336 - (4,998) (4,998) - (18,649) (18,649)
Income
Dividends 1,900 - 1,900 4,405 - 4,405 2,822 - 2,822
Interest 147 - 147 51 - 51 39 - 39
Total income 2,047 - 2,047 4,456 - 4,456 2,861 - 2,861
Expenses
Investment (660) - (660) (1,256) - (1,256) (669) - (669)
Manager’s fee
Other (1,246) - (1,246) (870) - (870) (447) - (447)
expenses
Total (1,906) - (1,906) (2,126) - (2,126) (1,116) - (1,116)
expenses
Net return
before 141 3,336 3,477 2,330 (4,998) (2,668) 1,745 (18,649) (16,904)
taxation
Taxation - - - - - - - - -
Net return
and total
comprehensive 141 3,336 3,477 2,330 (4,998) (2,668) 1,745 (18,649) (16,904)
income for
the period
pence pence pence pence pence pence pence pence pence
Return per
Ordinary 0.33 7.87 8.20 5.03 (10.78) (5.75) 3.70 (39.49) (35.79)
share
The total column of this statement represents the Statement of Comprehensive Income. The supplementary revenue and capital return columns are both prepared under guidance published by the AIC.
All items in the above statement derive from continuing operations. No operations were acquired or discontinued in the period.
The notes form an integral part of these Half-Yearly financial statements.
Statement of Changes in Equity
for the six month period to
Share Capital
Share Capital Revenue
premium redemption Total
capital reserve reserve
account reserve £'000
£'000 £'000 £'000
£'000 £’000
For the six month period to
31December 2025 unaudited
1 July 2025 6,353 11,300 148,996 2,897 4,607 174,153
Net return and total
comprehensive income for - - 3,336 - 141 3,477
the period
Dividends paid - - - - (1,830) (1,830)
Share buy-backs (476) - (26,544) 476 - (26,544)
31 December 2025 5,877 11,300 125,788 3,373 2,918 149,256
For the year to 30 June
2025 audited
1 July 2024 6,353 11,300 165,489 2,897 3,926 189,965
Net return and total
comprehensive income for
the - - (4,998) - 2,330 (2,668)
year
Dividends paid - - - - (1,649) (1,649)
Share buy-backs - - (11,495) - - (11,495)
30 June 2025 6,353 11,300 148,996 2,897 4,607 174,153
For the six month period to
31December 2024 unaudited
1 July 2024 6,353 11,300 165,489 2,897 3,926 189,965
Net return and total
comprehensive income for - - (18,649) - 1,745 (16,904)
the period
Dividends paid - - - - (1,648) (1,648)
Share buy-backs - - (4,680) - - (4,680)
31 December 2024 6,353 11,300 142,160 2,897 4,023 166,733
The notes form an integral part of these Half-Yearly financial statements.
Balance Sheet
as at
As at 31 December As at 30 June As at 31 December 2024
unaudited
2025 unaudited 2025 audited
£'000
£'000 £'000
Non-current assets
Investments held at fair
value through profit or 142,015 164,677 164,396
loss
Current assets
Trade and other 212 203 312
receivables
Cash and cash equivalents 7,358 9,519 2,364
7,570 9,722 2,676
Total assets 149,585 174,399 167,072
Current liabilities
Trade and other payables (329) (246) (339)
Net assets 149,256 174,153 166,733
Capital and reserves
Share capital 5,877 6,353 6,353
Share premium account 11,300 11,300 11,300
Capital reserve 125,788 148,996 142,160
Capital redemption 3,373 2,897 2,897
reserve
Revenue reserve 2,918 4,607 4,023
Total shareholders’ 149,256 174,153 166,733
equity
pence pence pence
Net asset value per share 395.53 392.47 358.41
number number number
Ordinary shares in issue 37,735,567 44,373,800 46,520,577
The notes form an integral part of these Half-Yearly financial statements.
Statement of Cash Flows
for the six month period to
Six monthperiod to Year ended Six month period to
31 December2025 30 June 2025 31 December 2024
unaudited audited unaudited
£'000 £’000 £'000
Operating activities
Net return before taxation 3,477 (2,668) (16,904)
Adjustment for
(gains)/losses on (3,336) 4,998 18,649
investments
Operating cash flows before 141 2,330 1,745
movements in working capital
Increase in receivables (9) (37) (139)
Increase/(decrease) in 61 (1,416) (1,323)
payables
Purchases of portfolio (66,525) (55,361) (42,205)
investments
Sales of portfolio 92,545 67,994 41,461
investments
Net cash flow from operating 26,213 13,510 (461)
activities
Financing activities
Equity dividends paid (1,830) (1,649) (1,648)
Shares bought back in the (26,544)* (11,495) (4,680)
period
Net cash flow from financing (28,374) (13,144) (6,328)
activities
(Decrease)/increase in cash
and cash equivalents for the (2,161) 366 (6,789)
period
Cash and cash equivalents at 9,519 9,153 9,153
start of period
Cash and cash equivalents at 7,358 9,519 2,364
period end
The notes form an integral part of these Half-Yearly financial statements.
* Includes £19.3 million in relation to the Tender Offer.
Notes to the Financial Statements
1.1 Corporate information
The Company carries on business as an investment trust within the meaning of Sections 1158/1159 of the Corporation Tax Act 2010.
1.2 Basis of preparation/statement of compliance
The Half-Yearly financial statements of the Company have been prepared on a going concern basis and in accordance with international accounting standards in conformity with the requirements of the Companies Act 2006. They do not include all the information required for a full report and financial statements and should be read in conjunction with the report and financial statements of the Company for the year ended
The condensed Half-Yearly financial statements do not comprise statutory accounts within the meaning of Section 434 of the Companies Act 2006. The financial statements for the six month periods to
Convention
The financial statements are presented in Sterling, being the currency of the Primary Economic Environment in which the Company operates, rounded to the nearest thousand.
Segmental reporting
The Directors are of the opinion that the Company is engaged in a single segment of business, being investment business.
1.3 Accounting policies
The accounting policies, presentation and method of computation used in these condensed financial statements are consistent with those used in the preparation of the financial statements for the year ended
1.4 New standards and interpretations not applied
Implementation of changes and accounting standards in the financial periods, as outlined in the financial statements for the year ended
2. Income
Six month period to 31 Year ended Six month period to
December 2025
30 June 2025 31 December 2024
unaudited
audited unaudited
£'000 £'000 £'000
Income from investments
UK dividend income 1,900 4,405 2,822
Other operating income
Liquidity interest and 147 51 39
other income
Total income 2,047 4,456 2,861
3. Other expenses
Six month period to Year ended Six month period to
31 December 2025 31 December 2024
30 June 2025 audited
unaudited unaudited
£'000 £'000 £'000
Secretarial 91 183 92
services
Auditor’s
remuneration for:
Audit services 22 42 20
Directors’ 86 171 86
remuneration
Other expenses* 1,047 474 249
1,246 870 447
* Other expenses include £655,000 of costs in relation to the 2025 Tender Offer.
4. Dividend
The Company paid a final dividend of 4.25p in respect of the year ended
5. Return per Ordinary share
Six month period to Year ended Six month period to
31 December 2025 30 June 2025 31 December 2024
Revenue Capital Revenue Capital Revenue Capital
Total Total Total
return return return return return return
pence pence pence
pence pence pence pence pence pence
Return per
Ordinary 0.33 7.87 8.20 5.03 (10.78) (5.75) 3.70 (39.49) (35.79)
share
Returns per Ordinary share are calculated based on 42,364,104 (
The Half Yearly Report will be posted to shareholders shortly. The Report will also be available for download from the following website: www.strategicequitycapital.com or on request from the Company Secretary.
National Storage Mechanism
A copy of the Half Yearly Report will be submitted shortly to the National Storage Mechanism and will be available for inspection at: https://data.fca.org.uk/#/nsm/nationalstoragemechanism
Neither the contents of the Company's website nor the contents of any website accessible from hyperlinks on the Company's website (or any other website) is incorporated into, or forms part of this announcement.
