Finsbury Growth & Income Trust PLC - Finsbury Growth & Income Trust PLC-Half-year Report
Legal Entity Identifier: 213800NN42KX2LG1GQ40
Unaudited Half Year Results For The Six Months Ended
Highlights
The Company received strong shareholder support at January's AGM, with over 97% voting in favour of the continuation vote an endorsement the Board warmly welcomes. While mindful of recent performance, the Board will keep under review the need for any further continuation vote, guided by performance and market conditions rather than a fixed timetable. In the meantime, the Board is taking three measures to better utilise the investment trust structure and enhance shareholder returns.
1. Enhanced Dividends: Following a thorough review, the Board has adopted
an enhanced dividend policy effective from 1 October 2026 , under which the
annual dividend will increase by at least 50% from approximately 20 pence
to 30 pence per share raising the current yield from around 2.6% to 3.9%.
Going forward, the dividend will be set on a pence per share basis rather
than by reference to NAV or share price, providing shareholders with
greater clarity and certainty over their income.
Dividend payments will move to a quarterly schedule in February, May, August and November, reflecting the Board's commitment to delivering a sustainable and growing income stream over the long term.
1. Increased Gearing: The Board are aiming to fully deploy its £100m
borrowing facility, having previously kept gearing modest at £29.2 million.
This reflects the Board's conviction that UK equity valuations are
currently particularly attractive and that long-term equity returns should
exceed the cost of debt.
1. Reduced Management Fees: As previously reported the Board agreed
revisions to the management fee arrangements in December 2025 , delivering
cost saving for Shareholders with effect from 1 January 2026 . The revised
structure delivered an immediate cost saving of £129,000 in the 3 months to
31 March 2026 . Since the appointment of Lindsell Train in 2000, management
fees have been regularly reviewed and stepped down with increased fund size
providing economies of scale for Shareholders.
Chairman’s Statement
Pars Purewal, Chairman
“While recent performance has been disappointing, we are seeing early signs of stabilisation and remain firmly committed to the Portfolio Manager's disciplined, long-term approach focused on high quality businesses with resilient franchises and hard-to-replicate data assets, where we believe AI will prove an enhancer of value rather than a threat. Against a backdrop of compelling
“Writing this report reinforces our conviction that your portfolio is comprised of a collection of outstanding, in most cases world-class,
“This really should be an opportunity to utilise the special powers of an investment trust to create additional value for its shareholders.”
About
The Company aims to achieve capital and income growth and to provide Shareholders with a total return in excess of that of the FTSE All-Share Index (the Company’s benchmark)
The Half Year results are set out below.
COMPANY SUMMARY
INVESTMENT OBJECTIVE AND PERFORMANCE MEASUREMENT
The Company aims to achieve capital and income growth and to provide Shareholders with a total return in excess of that of the FTSE All-Share Index (the Company’s benchmark).
INVESTMENT POLICY
The Company’s investment policy is to invest principally in the securities of companies either listed in the
The portfolio will normally comprise up to 30 investments. This level of concentration is likely to lead to an investment return which is materially different from the Company’s benchmark index and is likely to be more volatile and carry more risk.*
Unless driven by market movements, securities in
The Company will not invest more than 15% of the Company’s net assets, at the time of acquisition, in the securities of any single issuer. For the purposes of this limit only, net assets shall exclude the value of the Company’s investment in
The Company does not and will not invest more than 15%, in aggregate, of the value of the gross assets of the Company in other listed closed ended investment companies. Further, the Company does not and will not invest more than 10%, in aggregate, of the value of its gross assets in other listed closed ended investment companies except where the investment companies themselves have stated investment policies to invest no more than 15% of their gross assets in other listed closed ended investment companies.
The Company has the ability to invest up to 25% of its gross assets in preference shares, bonds and other debt instruments, although no more than 10% of any one issue may be held.
In addition, a maximum of 10% of the Company’s gross assets can be held in cash, where the Portfolio Manager believes market or economic conditions make equity investment unattractive or while seeking appropriate investment opportunities or to maintain liquidity.
The Company’s gearing policy is that gearing will not exceed 25% of the Company’s net assets.
No investment will be made in any fund or investment company managed by
In accordance with the
* The Company publishes its Active Share scores in its monthly fact sheet for investors and in both the annual and half-yearly reports to highlight how different the portfolio is from the Company’s benchmark index.
PERFORMANCE
Whilst performance is measured against the FTSE All-Share Index, the Company’s portfolio is constructed and managed without reference to a stock market index with the Portfolio Manager selecting investments based on their assessment of their long-term value.
The Company’s net assets as at
MANAGEMENT
DIVIDENDS
An interim dividend of 8.8p per share (2025: 8.8p) was paid on
It is expected that a second interim dividend will be declared and paid in the Autumn.
DIVIDEND POLICY
The Company’s aim is to increase or at least maintain the total dividend each year. A first interim dividend is typically paid in May and a second interim in November in lieu of a final dividend.
The level of dividend growth is dependent upon the growth and performance of the companies within the investment portfolio. The decision as to the level of dividend paid takes into account the income forecasts maintained by the Company’s AIFM and Portfolio Manager as well as the level of revenue reserves. These forecasts consider dividends earned from the portfolio together with predicted future earnings and are regularly reviewed by the Board.
All dividends have been distributed from current year income and revenue reserves.
Following a review, the Board has resolved to adopt an enhanced dividend policy, to take effect from the financial year commencing
CAPITAL STRUCTURE
At
GEARING
As at the half year end the Company was in the first year of its three-year secured facility of £40 million with an additional £60 million facility available if required with
COMPANY PERFORMANCE
AS AT
KEY FACTS
780.3p (14.0%) (13.2%)
Net Asset Value per share Net Asset value per share
† total Share price total
return*^
30 September 2025 : 923.0p return*^
(change (15.5%)) 31 March 2025: 4.2%
31 March 2025: 2.1%
730.0p £856.3bn 8.8p
Share price Shareholders’ funds † First interim dividend
per share
30 September 2025 : 861.0p 30 September 2025 :
£1.227.8bn 2025: 8.8p
(change (15.2%))
(change (30.3%)) no change
6.4% 0.62% 2.8%
Discount of share price
to net Ongoing charges p.a.^ Gearing^
asset value per share^ 30 September 2025: 0.62% 30 September 2025: 1.9%
30 September 2025 : 6.7%
(140.3p) 89.6% 109,741,552
Number of shares in issue
(excluding 115,249,751
shares held
in Treasury)
Return per share † Active Share^*
30 September 2025:
31 March 2025: 12.7p 30 September 2025: 86.4% 133,018,887
(excluding 91,972,416
shares held in
Treasury)
(change (17.5%))
^ Alternative Performance Measure (see glossary)
†
* Source – Morningstar
**
Source –
REVIEWS
Chairman’s Statement
We were gratified the Company received resounding support at the Annual General Meeting in January, with over 97% of votes cast in favour of the continuation vote resolution. The Board welcomes this strong endorsement of the Company’s long term investment approach.
Nevertheless, the Board also remains mindful of the Company’s recent performance and will keep under review whether, and when, it may be appropriate to seek a further validation via another continuation vote. Any such decision would be informed by Company performance, market conditions, and ongoing Shareholder engagement, rather than adherence to a predetermined timetable.
Meanwhile, the Board recognises the need to better utilise the investment trust structure, support performance and enhance Shareholder returns and, to that end, is undertaking the following three measures:
1. ENHANCING DIVIDENDS
The Board declared a first interim dividend of 8.8p per share (2025: 8.8p) in respect of the year ending
In light of structural changes in the
Following this review, the Board has decided to adopt an enhanced dividend policy, which will apply from the financial year commencing
The Board intends to adopt a progressive approach to dividends thereafter, with the objective of maintaining a sustainable and growing income stream over the long term. Distributions will be funded from a combination of revenue and capital, consistent with market practice and the Company’s investment objective.
In addition, it is intended that with effect from
Taken together, these measures are intended to provide Shareholders with a more appealing dividend policy and offer improved clarity and certainty over their future income.
The revised policy is designed to position the Company more appropriately within the sector from a yield perspective, while remaining aligned with the long term interests of Shareholders.
2. INCREASING GEARING
The Company has a policy that gearing will not exceed 25% of net assets, a committed borrowing facility of £40
million and an accordion option that allows
borrowings of up to £100 million. To date, the Company has made limited use of this facility, resulting in modest borrowing of £29.2 million at
The Board has considered carefully the role of gearing within the investment trust structure and has agreed with the Portfolio Manager that the Company will make use of gearing of up to £100 million. This reflects the Board’s view that current valuations within the
3. REDUCING MANAGEMENT FEES
As previously reported the Board agreed revisions to the management fee arrangements in
PERFORMANCE
The six months from
The Company’s NAV performance therefore lagged the benchmark, reflecting continued challenges in parts of the
The Board remains firmly focused on performance and recognises that recent years have been disappointing for Shareholders. However, during the period under review, there were early indications of stabilisation and recovery across parts of the portfolio, alongside a broader reassessment of
Against a backdrop of heightened volatility, the Board has continued to endorse the Portfolio Manager’s disciplined, long term investment philosophy. The focus remains on identifying high quality businesses with resilient franchises, strong brands, or hard to replicate data assets for whom the emergence of Artificial Intelligence will enhance rather than detract from the value of these data sets, acquired at valuations considered attractive over the long term. The Board remains alert to the evolving risks posed by global trade tensions and economic uncertainty and will continue to monitor these closely.
Further detail on portfolio positioning and individual holdings can be found in the Portfolio Manager’s Review.
SHARE CAPITAL
The Board continues to keep the Company’s discount under close review and remains committed to using share buybacks as an important mechanism to protect shareholder value. While buybacks cannot eliminate discount volatility entirely, the Board believes they enhance net asset value per share for remaining shareholders, provide liquidity and help mitigate adverse movements in the discount.
During the six months under review, the Company bought back 23,277,335 shares into treasury at a cost of approximately £188.1 million. As at
Since
OUTLOOK
The Company continues to own a portfolio of high quality businesses which the Board and the Portfolio Manager believe possess durable competitive advantages and the potential to deliver attractive long term returns. That assessment remains unchanged. Against the backdrop of continued compelling valuations within the
Since our last report the Board has continued to focus on the key objectives: maintaining a disciplined investment approach, making more active use of the balance sheet where appropriate, enhancing the Company’s dividend policy, and managing the Company’s discount. Taken together, these measures reflect a coherent and deliberate approach aimed at improving outcomes for Shareholders over the long term. Your Portfolio Manager continues to demonstrate his commitment to the Company through further share purchases. During the six month period,
Let me reassure you that the Board remains committed to doing whatever it takes to add value for Shareholders and we welcome feedback on our approach at any time. You can contact the Board via the Company Secretary at
Pars Purewal
Chairman
^ Alternative Performance Measure (see glossary).
PORTFOLIO MANAGER’S REVIEW
By no means did I take the result of the continuation vote at FGT’s
As context, over the first quarter of a century of our responsibility, FGT’s portfolio has been built around three strategic industry preferences, listed below in order of current exposure:
-- Data/Software/Platform companies 58%
-- Consumer Brands, with a preference for Premium and Luxury 31%
-- Stock Market Proxies, notably Asset Management companies 9%
These strategic preferences have in common some highly attractive investment characteristics:
-- Repeatable/Sticky revenues, often subscription-based
-- Low capital intensity, making for sustainably high Returns on Capital
-- Secular growth trends
For a long time shareholders were rewarded by our focus on these three categories and we found and held onto some tremendous long-term investment winners. Regrettably, the shares of both Data companies and Consumer brand owners remained under pressure during the first half of the financial year. That despite the majority of companies delivering steady and in some cases strong and accelerating growth. On the other hand, many of the value-orientated cyclical sectors in the
In the face of challenging performance, it is only right that we ask ourselves challenging questions. Has the investment thesis for our companies broken down, or are the challenges temporary? Do the attractive investment characteristics listed above still apply to our portfolio companies? And most pertinently – do we stay invested, do we sell, or do we buy more?
Here, we analyse the prospects for our holdings across each industry category.
DATA/SOFTWARE/PLATFORM COMPANIES
The biggest detractor from performance over the six months was the sell-off in portfolio constituents to this theme – Experian, London Stock Exchange Group (“LSEG”), RELX, Rightmove,
In
This was such a useful insight, because “constantly replenishing, proprietary business data at scale” is right at the heart of the competitive advantages of the companies we have chosen to invest in.
Experian’s data, often confidential information on millions of individuals and companies around the world, is updated a billion times each month. This data derives from sources that it is impossible for others to access, or for an AI model, however sophisticated, to replicate.
RELX’s risk division handles 450 million identity checks a day; its legal division processes 2 million new documents daily.
LSEG’s tick history grows at a rate of 15 million new messages every second.
The 16.8 billion minutes spent on Rightmove in 2025 (32,000 years) generated 69 billion signals, that combine to offer its customers the most accurate picture of
Autotrader’s platform engagement of 10x its closest competitor gives it insights into this industry vertical that can’t be matched.
Sage has been training its own in-house AI agents on the transactions that cross its cloud-connected platform since 2020 and the result is new tools and services that improve the efficiency of Sage’s customers. The new “monthly
close” service, embedded into
For the owners of data, the AI debate so far has been couched in terms of threat, risk and share price downside. Yet when you talk to the companies themselves, they see AI as a significant opportunity to not just grow, but to transform their scale. Crucially, business developments to date lend credence to their optimism. If our analysis is correct, all these companies will be reporting notably higher profits in five years’ time and that should mean very significant upside for FGT shareholders.
CONSUMER BRANDS
We own AG Barr, Burberry, Diageo, Fever-Tree and Unilever and we do so because we believe that the investment outlook for those brands that remain relevant for 21st century consumers is as good as ever. Such brands should deliver steady growth and reliable cash flows, as continues to be the case, for example, with Dove, Guinness and IRN-BRU. These qualities have been highly valued by investors in the past, although not so today. Their time will come again.
Holding Burberry and Diageo through their respective bear markets over the last three years has been painful for FGT shareholders and, understandably, severely tested their patience. Nonetheless, we still believe the Burberry brand and the best of Diageo’s brands retain their global relevance and will resume their long-term growth trajectories once consumer confidence improves. As a result, we view both share prices as meaningfully undervalued today.
As I write this report Burberry’s shares stand at c.£12. This is more than double the lows they hit back in 2024, a recovery that has been driven by the new CEO’s credible plans to restore this unique, global brand to sustained growth. To date Diageo’s new CEO, Sir
You would expect consolidation in an industry going through a tough time, as companies look for ways to cut costs and to acquire enduring brands at low valuations. Therefore, we were not surprised in
I remarked to a colleague that I would be amazed if Unilever/ McCormick was the only substantive transaction in the consumer industry in 2026, because the logic of combination is so strong, with valuations so depressed. And, less than a week later, Pernod Ricard and
On this theme of consolidation, we also highlight recent developments at Intertek whose Testing and Assurance services are crucial to many Consumer brand owning companies and, as such, attractive to us as investors. Its shares have been overlooked recently, through a period of concerns about volumes of global trade and, as a result, we were not wholly surprised that the company has recently received a bid approach from private equity, at a c.60% premium to its share price low in March. We never like losing shares in good businesses and it is not clear that Intertek will successfully be taken over. However, it is reassuring to us to note that after a very tough time for your portfolio there is some recognition, in terms of M&A activity, that investment value for some holdings has become compelling
ASSET MANAGERS
Another bid – that for Schroders in
Once Schroders exits the portfolio later this year, our remaining holding in this category is Rathbones – itself the result of a substantial combination of two private wealth managers. We remain of the opinion that the provision of private wealth advice is an attractive subset of the asset management industry and expect more consolidation to come and, as a result, intend to retain our holding in Rathbones. It is certainly the case that the
CONCLUSION
Writing this report reinforces our conviction that your portfolio is comprised of a collection of outstanding, in most cases world-class,
Returning to the pertinent question I asked earlier in the report – buy more or sell out of our core holdings – we think the answer is that we should respond to the value we see and buy more. Given that decision, we note that over the 25 years of managing the portfolio, we have deliberately kept FGT’s borrowings low, currently at 2.8% of NAV. However, when we look at the prospects for the companies held in the portfolio, the steady growth that the vast majority of them are delivering, and their valuations, there is a compelling case to add to the Company’s borrowings.
In this context, the forward price to earnings multiple of the portfolio is c.17x which is near to the lowest level the P/E has been since 2013. Combined with a return on equity (“ROE”) of 31%, we believe that multiple is extremely attractive. Particularly when compared to the FTSE All Share’s 13x earnings – an Index dominated by oil majors, miners and banks, offering an ROE of 12%. This really should be an opportunity to utilise the special powers of an investment trust to create additional value for its shareholders.
Director
Portfolio Manager
INVESTMENTS AS AT
FAIR VALUE
NET CAPITAL FAIR VALUE
SECTOINVESTMENTS 1 OCTOBER INVESTMENTS APPRECIATION/ 31 MARCH % OF
R £’000 (DEPRECIATION) 2026 INVESTMENTS
2025 £’000 £’000
£’000
· F London Stock 126,633 (20,851) 4,752 110,534 12.6
Exchange
· CS Unilever 130,482 (26,851) (12,093) 91,538 10.4
· T Sage Group 144,914 (24,520) (29,953) 90,441 10.3
· I Experian 152,356 (21,372) (41,976) 89,007 10.1
· CD RELX 151,101 (20,353) (42,528) 88,220 10.0
· CS Diageo 116,573 (18,758) (21,467) 76,347 8.7
· F Schroders 53,828 (9,215) 24,896 69,509 7.9
· CD Burberry 69,151 (12,262) (3,631) 53,258 6.1
Group
· CD Rightmove 105,257 (13,728) (38,558) 52,972 6.0
· I Clarkson 32,480 (4,247) 7,364 35,597 4.0
Top 10 1,082.775 (172,157) (153,196) 757,422 86.1
Investments
· I Intertek 44,864 (8,328) (8,465) 28,071 3.2
Group
· CS Fever-Tree 27,871 (4,385) (3,137) 20,349 2.3
· T Auto Trader 34,436 (3,695) (13,105) 17,636 2.0
Group
· CS A.G. Barr 19,445 (3,145) (463) 15,837 1.8
· F Rathbones 13,443 (2,629) 1,124 11,938 1.4
Brothers
· CD Manchester 11,747 (2,431) 1,535 10,851 1.2
United #
· CD Celtic* 5,893 – 664 6,557 0.7
The Lindsell
· F Train 6,800 – (1,300) 5,500 0.6
Investment
Trust plc
Frostrow
· F Capital LLP 2,925 – (0) 2,925 0.3
** Δ
· CS Magnum Ice – (450) 2,323 1,873 0.3
Cream +
Games
· CD Workshop 816 (2) 177 991 0.1
Group
Total 1,251,015 (197,232) (173,842) 879,950 100.0
Investments
* Includes Celtic 6% cumulative convertible preference shares, fair value £380,000 (
**
# Listed in
+ Listed in
Δ Unquoted
FINANCIAL STATEMENTS
CONDENSED INCOME STATEMENT
for the six months ended
(UNAUDITED) (UNAUDITED)
SIX MONTHS ENDED SIX MONTHS ENDED
31 MARCH 2026 31 MARCH 2025
REVENUE CAPITAL TOTAL REVENUE CAPITAL TOTAL
£’000 £’000 £’000 £’000 £’000 £’000
(Losses)/gains on
investments at fair value – (173,842) (173,842) – 11,271 11,271
through profit or loss
Losses on currency – (35) (35) – (14) (14)
translations
Income (note 2) 9,487 – 9,487 13,280 – 13,280
AIFM and Portfolio (684) (2,054) (2,738) (995) (2,983) (3,978)
Management fees (note 3)
Other expenses (706) – (706) (594) – (594)
Return before finance 8,097 (175,931) (167,834) 11,691 8,274 19,965
charges and taxation
Finance charges (192) (575) (767) (234) (703) (937)
Return before taxation 7,905 (176,506) (168,601) 11,457 7,571 19,028
Taxation – – – 3 – 3
Return after taxation 7,905 (176,506) (168,601) 11,460 7,571 19,031
Return per share – basic 6.6p (146.9p) (140.3p) 7.6p 5.1p 12.7p
and diluted (note 4)
The “Total” column of this statement represents the Company’s Income Statement.
The “Revenue” and “Capital” columns are supplementary to this and are prepared under guidance published by
All items in the above statement derive from continuing operations. The Company had no recognised gains or losses other than those declared in the Income Statement; therefore no separate Statement of Comprehensive Income has been presented.
CONDENSED STATEMENT OF CHANGES IN EQUITY
for the six months ended
(Unaudited) CALLED UP SPECIAL CAPITAL TOTAL
SHARE DISTRIBUTABLE REDEMPTION CAPITAL REVENUE SHAREHOLDERS
Six months CAPITAL RESERVE RESERVE RESERVE RESERVE FUNDS
ended 31 £’000 £’000 £’000 £’000 £’000 £’000
March 2026
At 1 October 56,248 740,342 3,453 370,643 57,054 1,227,740
2025
Net return
from – – – (176,506) 7,905 (168,601)
ordinary
activities
Second
interim
dividend
(11.4p per
share)
for the year
ended 30 – – – – (15,014) –
September
2025
Historical
share and – – – 148 84 232
dividend
forfeitures
Repurchase
of shares – (188,045) – – – (188,045)
into
Treasury
At 31 March 56,248 552,297 3,453 194,285 50,029 856,312
2026
(Unaudited) CALLED UP SHARE CAPITAL CAPITAL
SHARE CAPITAL PREMIUM REDEMPTION RESERVE REVENUE TOTAL
Six months ACCOUNT RESERVE RESERVE SHAREHOLDERS
ended 31 March £’000 £’000 £’000 £’000 £’000 FUNDS £’000
2025
At 1 October 56,248 1,050,008 3,453 412,490 59,969 1,582,168
2024
Net return
from ordinary – – – 7,571 11,460 19,031
activities
Second interim
dividend
(10.8p per
share)
for the year
ended 30 – – – – (18,097) (18,097)
September 2024
Repurchase of
shares into – (199,989) – – – (199,989)
Treasury
At 31 March 56,248 850,019 3,453 420,061 53,332 1,383,113
2025
CONDENSED STATEMENT OF FINANCIAL POSITION
as at
(UNAUDITED) (AUDITED)
31 MARCH 30 SEPTEMBER
2026 2025
£’000 £’000
Fixed assets
Investments held at fair value through profit or loss 879,950 1,251,015
(note 1)
Current assets
Debtors 6,747 5,387
Cash and cash equivalents 3,717 5,110
10,464 10,497
Current liabilities
Creditors: amounts falling due within one year (4,902) (4,572)
Bank loan – (29,200)
(4,902) (33,772)
Net current assets/(liabilities) 5,562 (23,275)
Non-current liabilities
Bank loan (29,200) –
Net assets 856,312 1,227,740
Capital and reserves
Called up share capital 56,248 56,248
Special distributable reserve 552,297 740,342
Capital redemption reserve 3,453 3,453
Capital reserve 194,285 370,643
Revenue reserve 50,029 57,054
Total Shareholders’ funds 856,312 1,227,740
Net asset value per share (note 5) 780.3 923.0
CONDENSED STATEMENT OF CASH FLOWS
for the six months ended
(UNAUDITED) (UNAUDITED)
31 MARCH 31 MARCH
2026 2025
£’000 £’000
Net cash inflow from operating activities before 5,013 8,440
interest (note 7)
Investing activities
Purchase of investments (290) (43,658)
Sale of investments 197,139 239,482
Net cash inflow from investing activities 196,849 195,824
Financing activities
Equity dividends paid (15,014) (18,097)
Repurchase of Shares into Treasury (187,671) (197,741)
Historical share and dividend forfeitures 232 –
Interest paid (767) (937)
Net cash outflow from financing activities (203,220) (216,775)
Decrease in cash and cash equivalents (1,358) (12,511)
Currency translations (35) (14)
Cash and cash equivalents at 1 October 5,110 14,639
Cash and cash equivalents at 31 March 3,717 2,114
NOTES TO THE FINANCIAL STATEMENTS
1. BASIS OF PREPARATION
The condensed Financial Statements for the six months to
The accounting policies used for the year ended
FAIR VALUE
Under FRS 102 and FRS 104 investments have been classified using the following fair value hierarchy:
Level 1 – quoted prices in active markets
Level 2 – prices of recent transactions for identical instruments
Level 3 – valuation techniques using observable and unobservable market data.
The financial assets and liabilities measured at fair value in the Statement of Financial Position are grouped into the fair value hierarchy at the reporting date as follows:
(UNAUDITED) AS AT 31 MARCH 2026
LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
AS AT 31 MARCH 2026
£’000 £’000 £’000 £’000
Equity investments 870,468 6,177 – 876,645
Limited liability partnership interest – – 2,800 2,800
(Frostrow)
AIFM Capital contribution (Frostrow) – – 125 125
Preference share investments – 380 – 380
870,468 6,557 2,925 879,950
(AUDITED) AS AT 30 SEPTEMBER 2025
LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
AS AT 30 SEPTEMBER 2025
£’000 £’000 £’000 £’000
Equity investments 1,242,198 5,527 – 1,247,725
Limited liability partnership interest – – 2,800 2,800
(Frostrow)
AIFM Capital contribution (Frostrow) – – 125 125
Preference share investments – 365 – 365
1,242,198 5,892 2,925 1,251,015
2. INCOME
(UNAUDITED) (UNAUDITED)
SIX MONTHS
SIX MONTHS ENDED
ENDED
31 MARCH 2026 31 MARCH 2025
£’000 £’000
Income from investments
UK dividends 9,409 13,166
Other income
Bank interest 78 114
Total income 9,487 13,280
3. AIFM AND PORTFOLIO MANAGEMENT FEES
(UNAUDITED) (UNAUDITED)
SIX MONTHS TO SIX MONTHS TO
31 MARCH 2026 31 MARCH 2025
REVENUE CAPITAL TOTAL REVENUE CAPITAL TOTAL
£’000 £’000 £’000 £’000 £’000 £’000
AIFM fee 171 513 684 249 746 995
Portfolio management fee 513 1,541 2,054 746 2,237 2,983
Total fees 684 2,054 2,738 995 2,983 3,978
4. Return per share – basic and diluted
(UNAUDITED) (UNAUDITED)
SIX MONTHS TO SIX MONTHS TO
31 MARCH 31 MARCH
2026 2025
£’000 £’000
The return per share is based on the following
figures:
Revenue return 7,905 11,460
Capital return (176,506) 7,571
Total return (168,601) 19,031
Weighted average number of shares in issue for the 120,173,704.44 149,640,691
period
Revenue return per share 6.6p 7.6p
Capital return per share (146.9p) 5.1p
Total return per share (140.3p) 12.7p
The calculation of the total, revenue and capital returns per ordinary share is carried out in accordance with IAS 33, “Earnings per Share”.
During the period there were no dilutive instruments held, therefore the basic and diluted return per share are the same.
5. NET ASSET VALUE PER SHARE
(UNAUDITED) (AUDITED)
AS AT AS AT
31 MARCH 30 SEPTEMBER
2026 2025
Net Assets (£'000) 856,312 1,227,740
Number of shares in issue (excluding shares held in 109,741,552 133,018,887
Treasury)
Net asset value per share 780.3p 923.0p
6. TRANSACTION COSTS
Purchase transaction costs for the six months ended
Sales transaction costs for the six months ended
These transaction costs are included within the gains and losses on investments within the Income Statement.
7. RECONCILIATION OF TOTAL RETURN BEFORE FINANCE COSTS AND TAXATION TO NET CASH INFLOW FROM OPERATING ACTIVITIES
(UNAUDITED) (UNAUDITED)
SIX MONTHS SIX MONTHS
ENDED ENDED
31 MARCH 2026 31 MARCH 2025
£’000 £’000
Total return before finance charges and taxation (167,834) 19,965
Add/(deduct) capital return before finance charges 175,931 (8,274)
and taxation
Net revenue before finance costs and taxation 8,097 11,691
Increase in accrued income and prepayments (1,360) (431)
Increase/(decrease) in creditors 330 (184)
Taxation – withholding tax – 347
AIFM, Portfolio management charged to capital (2,054) (2,983)
Net cash inflow from operating activities 5,013 8,440
8. GOING CONCERN
The Directors believe, having considered the Company’s financial position, investment objective, risk management policies, capital management policies and procedures, as well as the nature of the portfolio and the expenditure projections, that the Company has adequate resources, an appropriate financial structure and suitable management arrangements in place to continue in operational existence for the foreseeable future. In addition, there are no material uncertainties relating to the Company that would prevent its ability to continue in such operational existence for at least twelve months from the date of the approval of this half year financial report. For these reasons, the Directors consider there is reasonable evidence to continue to adopt the going concern basis in preparing the Financial Statements. In reviewing the position as at the date of this report, the Board has considered the guidance on this matter issued by the
As part of their assessment, the Directors have given careful consideration to the potential consequences for the Company arising from the continuing uncertainty created by elevated global inflation, rising interest rates, renewed international trade tensions and tariffs, and the ongoing wars in
Stress testing was undertaken in
9. COMPARATIVE INFORMATION
The financial information contained in this Half Year Report does not constitute statutory accounts as defined in sections 434 to 436 of the Companies Act 2006. The financial information for the six months ended
The information for the year ended
GOVERNANCE
INTERIM MANAGEMENT REPORT
INTERIM MANAGEMENT REPORT
The Directors are required to provide an Interim Management Report in accordance with the
PRINCIPAL RISKS AND UNCERTAINTIES
The Company’s principal and emerging risks are described in detail under the heading “Principal and Emerging Risks” within the Strategic Report in the Company’s Annual Report for the year ended
In the view of the Board, there has been an increase in some of the material risks that the Company faces notably relating to
RELATED PARTY TRANSACTIONS
During the first six months of the current financial year, no transactions with related parties have taken place which have materially affected the financial position or the performance of the Company.
DIRECTORS’ RESPONSIBILITIES
The Board of Directors confirms that, to the best of its knowledge:
(i)
the condensed set of financial statements contained within the Half Year Report have been prepared in accordance with applicable
(ii) the interim management report includes a true and fair review of the information required by:
(a) DTR 4.2.7R 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 4.2.8R 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 entity during that period; and any changes in the related party transactions described in the last annual report that could do so.
The Half Year Report has not been audited by the Company’s auditors.
This Half Year Report contains certain forward-looking statements. These statements are made by the Directors in good faith based on the information available to them up to the date of this report and such statements should be treated with caution due to the inherent uncertainties, including both economic and business risk factors, underlying any such forward-looking information.
For and on behalf of the Board
Pars Purewal
Chairman
FURTHER INFORMATION
GLOSSARY OF TERMS AND ALTERNATIVE PERFORMANCE MEASURES (“APM”)
ACTIVE SHARE (APM)
Active Share is expressed as a percentage and shows the extent to which a fund’s holdings and their weightings differ from those of the fund’s benchmark index. A fund that closely tracks its index might have an Active Share of less than 20% and be considered passive, while a fund with an Active Share of 60% or higher is generally considered to be actively managed. The Company has a distinctive strategy: a concentrated portfolio of holdings invested across a small number of sectors and themes. Active Share helps quantify the extent to which the portfolio differs from the benchmark index.
The Active Share performance is sourced from Morningstar.
AIC
ALTERNATIVE INVESTMENT FUND MANAGERS DIRECTIVE (“AIFMD”)
Agreed by the
ALTERNATIVE PERFORMANCE MEASURE (“APM”)
An Alternative Performance Measure is a numerical measure of the Company’s current, historical or future financial performance, financial position or cash flows other than a financial measure defined or specified in the applicable financial framework. In selecting these Alternative Performance Measures, the Directors considered the key objectives and expectations of typical investors and believe that each APM gives the reader useful and relevant information in judging the Company’s performance and in comparing other Investment Companies.
BENCHMARK RETURN
Total return on the benchmark, assuming that all dividends received were re-invested, without transaction costs, into the shares of the underlying companies at the time the shares were quoted ex-dividend.
DISCOUNT OR PREMIUM (APM)
A description of the difference between the share price and the net asset value per share. The size of the discount or premium is calculated by subtracting the share price from the net asset value per share and is usually expressed as a percentage (%) of the net asset value per share. If the share price is higher than the net asset value per share the result is a premium. If the share price is lower than the net asset value per share, the shares are trading at a discount. The Board regularly reviews the level of the discount/premium of the Company’s share price to the net asset value per share and considers ways in which share price performance may be enhanced, including the effectiveness of share buy-backs, where appropriate.
DISCOUNT OR PREMIUM (APM) 31 MARCH 2026 30 SEPTEMBER 2025 Share Price (p) 730.0 861.0 Net Asset value per share (p) 780.3 923.0 Share Price Discount to NAV per Share 6.4% 6.7%
FTSE DISCLAIMER
“FTSE©” is a trade mark of the London Stock Exchange Group companies and is used by
Gearing represents prior charges, adjusted for net current assets expressed as a percentage of net assets (AIC methodology). The Directors believe that it is appropriate to show net gearing in relation to Shareholders’ funds as it represents the amount of debt funding on the investment portfolio. The gearing policy is that borrowing will not exceed 25% of the Company’s net assets. Prior charges include all loans and bank overdrafts for investment purposes.
31 MARCH 30 SEPTEMBER
2026 2025
£’000 £’000
Bank loan (29,200) (29,200)
Less net current assets (excluding loan) 5,562 5,925
(23,638) (23,275)
Net assets 856,312 1,227,740
Net Gearing 2.8% 1.9%
NET ASSET VALUE (”NAV”)
The value of the Company’s assets, principally investments made in other companies and cash being held, less any liabilities. The NAV is also described as “Shareholders’ funds”. The NAV is often expressed in pence per share after being divided by the number of shares that have been issued. The NAV per share is unlikely to be the same as the share price which is the price at which the Company’s shares can be bought or sold by an investor. The share price is determined by the relationship between the demand and supply of the shares.
NET ASSET VALUE PER SHARE TOTAL RETURN (APM)
The theoretical total return on an investment over a specified period assuming dividends paid to Shareholders were reinvested at net asset value per share at the time the shares were quoted ex-dividend. This is a way of measuring investment management performance of investment trusts which is not affected by movements in discounts or premiums. The Directors regard the Company’s net asset value total return per share as being the overall measure of value delivered to Shareholders over the long term. The Board considers the principal comparator to be its benchmark, the FTSE All-Share Index.
31 MARCH 31 MARCH
2026 2025
Opening NAV per share (p) 923.0 943.4
Movement in NAV per share (p) (142.7) 9.0
Closing NAV per share (p) 780.3 952.4
% movement in NAV per share (15.5%) 1.0%
% impact of dividends re-invested and share buyback 1.5% 1.1%
NAV per share total return (14.0%) 2.1%
In accordance with FRS 102 dividends are included in the Financial Statements in the period in which they are paid or approved by Shareholders.
The source is Morningstar which has calculated the return on an industry comparative basis.
ONGOING CHARGES (APM)
Ongoing charges are calculated by taking the Company’s annualised operating expenses expressed as a proportion of the average daily net asset value of the Company over the year. The costs of buying and selling investments are excluded, as are interest costs, taxation, cost of buying back or issuing ordinary shares and other non-recurring costs. Ongoing charges represent the costs that Shareholders can reasonably expect to pay from one year to the next, under normal circumstances. The Board continues to be conscious of expenses and works hard to maintain a sensible balance between high quality service and the cost of provision.
FOR THE FOR THE
SIX MONTHS TO YEAR TO
31 MARCH 30 SEPTEMBER
2026 2025
£’000 £’000
AIFM and portfolio management fees 2,738 7,686
Other operating expenses 706 1,148
Total ongoing expenses for the period 3,444 8,834
Total ongoing expenses – annualised* 6,268 8,834
Average net assets 1,007,401 1,428,900
Annualised ongoing charges ratio** 0.62% 0.62%
* Estimated annualised expenses for the year ending
** Assumes no change in the average assets.
REVERSE STRESS TEST
Reverse stress tests are stress tests that identify scenarios and circumstances which would make a business unworkable and identify potential business vulnerabilities.
SHARE PRICE TOTAL RETURN (APM)
The change in capital value of a company’s shares over a given period, plus dividends paid to Shareholders, expressed as a percentage of the opening value. The assumption is that dividends paid to Shareholders are re-invested in the shares at the time the shares are quoted ex dividend. The Directors regard the Company’s share price total return to be a key indicator of performance. This reflects share price growth of the Company which the Board recognises is important to investors.
31 MARCH 31 MARCH
SHARE PRICE TOTAL RETURN 2026 2025
Opening share price (p) 861.0 861.0
Movement in share price (p) (131.0) 25.0
Closing share price (p) 730.0 886.0
% movement in share price (15.2%) 2.9%
% Impact of dividends re-invested 2.0% 1.3%
Share price total return (13.2%) 4.2%
The source is Morningstar which has calculated the return on an industry comparative basis.
STRESS TESTING
Stress testing is a forward-looking analysis technique that considers the impact of a variety of extreme but plausible economic scenarios on the financial position of the Company.
TREASURY SHARES
Shares previously issued by a company that have been bought back from Shareholders to be held by the Company for potential sale or cancellation at a later date. Such shares are not capable of being voted and carry no rights to dividends.
This Announcement is not the Company’s Half Year Report & Accounts. It is an abridged version of the Company’s full Half Year Report & Accounts for the six months ended
The Company's Half Year Report & Accounts for the six months ended
- END-
Company Secretary – 0203 170 8732
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