REG - Brunner Investment - Final Results replacement
12/02/2026 14:15
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RNS Number : 8223S Brunner Investment Trust PLC 12 February 2026
The following amendment has been made to the Final Results announcement
released on 12 February 2026 at 09:47am under RNS No 7766S
The payment date for the proposed final dividend has been changed from 3 April
2026 to 2 April 2026.
All other details remain unchanged.
The full amended text is shown below.
Legal Entity Identifier: 529900S0Y9ZINCHB3O93
THE BRUNNER INVESTMENT TRUST PLC
Final Results for the year ended 30 November 2025.
The following comprises extracts from the company's Annual Financial Report
for the year ended 30 November 2025. The full annual financial report is being
made available to be viewed on or downloaded from the company's website at
www.brunner.co.uk (http://www.brunner.co.uk) . Copies will be posted to
shareholders shortly.
Financial Highlights
· Net Asset Value total return (debt at fair value) +9.0% (2024:
+17.9%)
· Net Asset Value total return (debt at par) +9.0% (2024: +18.2%)
· Benchmark total return index +15.8% (2024: +23.6%)
· Net assets per ordinary share (debt at fair value)1,565.8p (2024:
1,459.6p, +7.3%)
· Net assets per ordinary share (debt at par) 1,543.2p (2024:
1,438.8p, +7.3%)
· Share price total return -2.0% (2025: 1,406.0p, 2024: 1,460.0p)
· Earnings per ordinary share 27.9p (2024: 27.4p, +1.8%)
· Dividend per ordinary share 25.0p (2024: 23.75p, +5.3%)
· Revenue reserves per ordinary share 35.6p (2024: 33.0p)
· Discount - average in the period 3.7% (2024: 4.6%)
· Consumer price index +3.3% (2025: 139.5, 2024: 135.1)
MANAGEMENT REPORT
Chair's Statement
Dear Shareholder,
Board affirmation and conviction
In a world of accelerating change, and more than a little turbulence, I would
like to open my statement for this year's accounts with a resolute affirmation
for Brunner, on behalf of myself, the other members of your board, and all
those involved in running your trust.
We consider Brunner to be a valuable, and enduring investment proposition.
This conviction is rooted in a combination of factors that, we believe,
differentiate Brunner strongly from not only other investment trusts, but also
from a wider universe of investment choices available to you today.
These are the foundational pillars that support our confidence in delivering
long-term capital growth, combined with a predictable income: a balanced,
differentiated way of viewing global equities; the predictability of income we
provide through our forecasted dividend - a rarity in today's market, but
backed by substantial revenue reserves; the steadfast support of the Brunner
family, whose legacy is woven into the fabric of our trust; and the commitment
of your board, now and in the future, for the benefit of all shareholders.
These are the reasons we, as a board, "turn up", dedicated to the stewardship
of your capital.
We acknowledge that 2025 presented challenges in relative performance terms.
The trust's NAV lagged its benchmark as the market concentrated returns in a
narrow group of mega-cap technology stocks. However, the trust delivered a
positive absolute return of 9.0% on a total-return basis, and we remain
confident that the investment philosophy that has guided Brunner through
numerous market cycles - and delivered 53 consecutive years of dividend
increases - remains sound and appropriate for long-term shareholders.
The investment landscape in 2025
The financial year was defined by two powerful, and somewhat conflicting,
forces: a shift in monetary policy by the US Federal Reserve and an
unprecedented concentration of returns in a handful of technology stocks.
After a period of aggressive tightening, the Federal Open Market Committee
began to ease policy, cutting the federal funds rate three times to a final
range of 3.5% to 3.75%. This decision, while not without internal division,
provided a supportive backdrop for equity valuations.
However, 2025 was anything but ordinary. The market rally was extraordinarily
narrow, driven in the main by a select group of technology companies. The US
market has hit unprecedented levels of concentration, with the most
significant returns driven by a handful of high-growth technology stocks. This
was driven by a surge of capital into companies seen by the market as best
positioned to capitalise on the artificial intelligence investment cycle.
This concentration of returns in a narrow set of stocks creates material risk
for investors. While such rallies can be powerful in the near term, history
suggests they are typically followed by periods of mean reversion and
volatility. Your Board remains focused on protecting your capital through a
diversified approach that avoids excessive concentration in any single theme
or style.
Artificial Intelligence - opportunity and participation without speculation
Artificial intelligence was the dominant narrative driving equity markets in
2025. The transformative potential of AI is undeniable, with some estimates
suggesting it could contribute as much as $15.7 trillion to global GDP by
2030. This has fuelled a surge in AI-related investment - almost an 'arms
race', with the potential 'cost' of missing out on being a leader in the space
seemingly justifying eye-watering levels of investment.
However, the market's enthusiasm for AI has led to a significant expansion of
valuation multiples for a narrow set of AI-related companies, with the
technology sector (and within that sector a small subset of companies actually
driving the strong sector return) significantly outperforming the broader
market. This has raised concerns about a potential valuation bubble. While the
underlying technology is more mature than in the speculative internet bubble
of the late 1990s, the risk of a material correction in the most speculative
segments of the technology market remains a key consideration for investors.
Brunner has chosen to participate in the AI opportunity through a diversified
set of holdings that capture genuine value creation without excessive
speculation. Rather than holding the most speculative technology stocks, the
trust maintains large positions in companies such as TSMC, ASML, and Amphenol.
These companies have performed well and are essential to the AI infrastructure
buildout. Additionally, the trust holds a substantial position in Alphabet
(Google), which is at the forefront of the large language model race and is a
leading designer of its own AI chips. These holdings have provided meaningful
exposure to the AI opportunity while maintaining the portfolio's quality and
diversification standards.
This positioning was vindicated in the final quarter of the year, when some
technology leaders faltered on market concerns on whether they could deliver
on elevated expectations, while value-oriented sectors, even now including
healthcare, rallied. This underscores the risk of over-concentration and the
importance of a diversified approach, precisely the philosophy that has guided
Brunner for decades. Please do read more about the detail of the investment
portfolio and how our philosophy has been applied over the financial year in
the Portfolio Managers' Report starting on page 27 of the Annual Report.
Geopolitical fragmentation and the global trade landscape
The geopolitical landscape in 2025 has been marked by continued fragmentation.
The US-China trade relationship has remained a source of volatility, with the
continued use of tariffs as a key instrument of trade policy. While the stated
goal is to reshore manufacturing, the evidence of effectiveness is mixed, with
China's trade surplus continuing to grow to record levels.
Beyond the US-China dynamic, the global trade landscape is being reshaped by
the rise of new economic powers. In 2025, India surpassed China as the world's
most populous country and also overtook Japan to become the world's
fourth-largest economy. This has significant implications for global supply
chains and represents a structural shift in global economic power. The ongoing
conflict in Ukraine and the humanitarian crisis in Sudan, which the
International Rescue Committee has for the third consecutive year named the
world's worst, further contributed to a climate of geopolitical uncertainty.
Understanding the "all-weather" investing approach
We recognise that for some shareholders, the term "all-weather" may seem
abstract or unclear. We therefore feel it is important that we articulate
precisely what we mean by this phrase and what it delivers in practice.
The core principle
Brunner's "all-weather" approach means delivering consistent, steady returns
through a diversified portfolio positioned to perform across a range of market
environments. This is not achieved by chasing every trend or attempting to
predict or time markets. Rather, it is achieved by maintaining a balanced
exposure to companies and sectors that generate steady returns in aggregate
through varying economic or market cycles. It is, in essence, a philosophy of
prudent diversification combined with bottom-up stock selection.
The trade-off
Brunner maintains a quality-oriented portfolio of global equities that aims
for a sensible approach to risk. This means the trust has certain rules,
including not investing in speculative, loss-making or unprofitable companies
- a philosophy of 'cash is king' - with solid free cash flow that can be
returned to shareholders being the solid base that we build the portfolio on.
We recognise that this means the trust will sometimes underperform in periods
when the market concentrates returns in a narrow manner via outperformance of
a particular style, sector or fashion. However, this trade-off is intentional
and deliberate. In 2025 for example, it was these types of speculative,
unprofitable technology stocks that were one of the key drivers of market
performance. By adhering to our investment philosophy, Brunner did not fully
participate in this narrow, cyclically-driven upmarket.
History provides important context - for example, the last time that quality
factors underperformed as significantly as they have over the past year or so
was in 1999/2000, after which there was a significant recovery and
outperformance by quality stocks. The same pattern repeated, albeit with
slightly lower extremes, beginning in 2009. We believe this historical pattern
is relevant to investors today, and we remain confident that our discipline
will prove its worth over the long term.
Why this matters
In a market dominated by a handful of stocks and vulnerable to sharp,
unpredictable rotations, the all-weather approach is not just a marketing
phrase, it is a genuine advantage. You are positioned to benefit from strong
businesses around the world, in a multitude of different industries. Your
portfolio is diversified across geographies, sectors, themes and industries,
so you are not concentrated in any single region affected by geopolitical
shocks. Neither are you dependent on any single sector or theme to drive
returns.
The supporting pillars of our approach
Our all-weather positioning is supported by the following key factors:
Balanced diversification with no dominant style - exposure across multiple
geographies, sectors, and themes means returns are not dependent on any single
area performing well. We actively avoid excessive concentration and ensure our
shareholders do not have all their eggs in one basket. We have a well-stated
policy to triangulate the best balance of 'value', 'growth' and 'quality'
investment factors within the portfolio. There is no significant stylistic
dominance, although quality factors are favoured in portfolio stock picks due
to the inherent solidity provided to the portfolio over the long term -
dominant market positions, strong competitive moats, recurring revenue streams
and so on. These factors generally mean the portfolio is less vulnerable to
economic shocks and provides better protection in a downcycle.
Risk-managed balance of conviction and active management - active management
melds art with science and, within our risk management framework, allows the
manager to back investment convictions, as well as adapt flexibly as markets
develop. We believe this will have a net-positive outcome over the long term,
though one has to accept occasional stock-pick failures. We feel the long-term
benefits outweigh the occasional setback. Overall, prudent positioning in
less-levered, higher-quality segments of each sector should create natural
downside protection in market corrections. Position sizes are managed closely
to ensure portfolio risk is appropriate to the outcome we are trying to
achieve for shareholders.
Income stability and predictability - our dividend focus and policy means
shareholders should receive a steady income regardless of market conditions,
combined with the growth potential of a portfolio of global equities. Unlike
many investment trusts, Brunner forecasts and declares its dividend projection
in advance each year and maintains substantial reserves to support income in
difficult years. This provides shareholders with genuine income certainty,
creating a useful combination of risk-managed equity returns with an almost
fixed-income-like income stream for shareholders. Our strong track record of
53 years of consecutive dividend increases, combined with steady capturing of
growth from equity markets, demonstrates Brunner's ability to deliver
consistent returns through multiple market cycles, wars, recessions, and
crises. This is not a theoretical approach; it is one that has been tested and
proven over almost a century.
Brunner family support - the ongoing support of the Brunner family for the
trust signals a long-term commitment and shared interests with all other
shareholders. We believe this alignment is to the advantage of all
shareholders and a valuable feature of the trust, providing a welcome
stability in a sometimes not-so-stable world.
Shareholder communications and messaging
Shareholder communications and messaging are important for the trust's
continued success. The board wants to ensure that the trust's value
proposition is clearly understood by both existing and prospective investors.
Our core message - as described above - is that we deliver a balanced strategy
with a variety of themes allowing Brunner to make money for its shareholders
over time. We aim for a forecastable approach with our dividend focus, thus
providing steady equity market returns but with a stability of income
provision for shareholders. This is both our purpose and our key
differentiation. It demonstrates why Brunner offers a unique proposition for
investors.
While we communicate this message in depth through our various communications
channels, we recognise the need for it to be even more accessible and to
'punch hard' to garner attention. Brunner undoubtedly has a strong following
of loyal investors, however for the benefit of both existing and new
shareholders, we recognise the benefits of bringing the trust into view of new
audiences and those not already familiar. We need to demonstrate our
differentiated approach vigorously, not just from other investment trusts, but
from other investment vehicles too.
Investment management team changes
The board was pleased to announce in December 2025 the appointment of James
Ashworth as co-lead manager of Brunner alongside Julian Bishop, who has co-led
the management of the portfolio for three years. James had been a deputy since
early 2024. Christian Schneider and Simon Gergel will continue to provide
investment support to the team as named deputy managers.
Earnings per share
Over the past year the portfolio's generation of income and earnings grew once
more, with earnings per share for the year rising by 1.8%, from 27.4p to
27.9p. Brunner is again able to cover our increased dividend payment to
shareholders and still contribute to revenue reserves to help smooth dividend
growth during any future years when earning income is more challenging.
Dividend
The proposed final dividend of 6.25p, if approved by shareholders, will be
paid on 2 April 2026 to shareholders on the register on 27 February 2026, with
an ex-dividend date of 26 February 2026. For those shareholders in the
Dividend Reinvestment Plan (DRIP), the last date for this will be 13 March
2026. In line with board's dividend policy, which is outlined on page 16, the
total dividend for 2025, including the proposed final dividend, will be 25.0p.
This represents an increase of 5.3% over the 2024 dividend which was 23.75p
and means Brunner will now reach 54 years of consecutive dividend increases,
remaining in place near the top of the AIC's 'Dividend Heroes' list. Revenue
reserves will remain strong at 35.6p (2024: 33.0p) after the payment of the
proposed final dividend.
Outlook
The new financial year has begun with as much uncertainty as the last.
Geopolitical tensions remain elevated, with ongoing conflicts and realignments
of global powers creating a fragile backdrop. While the two main geopolitical
'events' of the year so far (Venezuela and Iran) are having relatively muted
impact on markets thus far, it is the implications of the US actions in
Venezuela in terms of potential future actions, not only by the US, but
potentially by other emboldened powers that is causing more consternation.
While inflation has moderated from its recent peaks, the path ahead is also by
no means clear. In this environment, we believe that our managers' focus on
bottom-up stock selection, identifying world-class businesses with resilient
earnings, is the most prudent course for an investment trust aiming to be at
the core of an individual investor's own portfolio. The world continues to
offer a wealth of opportunities for those with a discerning eye and a
long-term perspective.
We believe that the key benefit we offer our shareholders is the consistency
of the strategy that engineers a well-diversified portfolio of companies which
delivers steady performance under a myriad of possible global conditions - the
reason behind our "all-weather" tagline as we outline above. Amidst all the
macro uncertainty, the portfolio remains constructed from bottom-up stock
picks, seeking diverse opportunities from individual companies. We remain
cognisant of the effect that external factors could have on that portfolio of
companies, but we are not trying to predict outcomes or have investment
decisions guided in a wholesale fashion by those factors.
Annual General Meeting
It was a pleasure to see so many of you at our last Annual General Meeting. We
look forward to welcoming you again this year at Trinity House, Trinity
Square, Tower Hill, London, EC3N 4DH, at 11.30 am on Tuesday 31 March 2026.
Attending shareholders will, as usual, receive a presentation from the
portfolio managers before the formal business takes place. It is always a
valuable opportunity for the Board and our portfolio managers to hear your
views and answer your questions directly. We would be delighted to see you
there.
Shareholders can send any questions to be answered at the AGM by the board and
portfolio managers care of the company secretary at
investment-trusts@allianzgi.com or in writing to the registered office, and we
will publish questions and answers on the website after the meeting. We
encourage all shareholders to exercise their votes in advance of the meeting
by completing and returning the form of proxy.
Carolan Dobson
Chair
11 February 2026
Risk management policy
The board operates a risk management policy to ensure that the level of risk
taken in pursuit of the board's objectives and in implementing its strategy
are understood. The principal risks identified by the board are set out in the
tables below, together with the actions taken to mitigate these risks. The
process by which the directors monitor risk is described in the Audit and Risk
Committee Report on page 75 of the Annual Report and includes a review of a
more detailed version of these tables, in the form of a risk matrix, at least
twice yearly.
Risk appetite
The directors assess the likelihood of occurrence and perceived impact of each
risk after mitigating actions and consider the extent to which the resulting
residual risk is acceptable, which is defined as the board's risk appetite.
The results of this exercise are shown in the heat map on page 18 of the
Annual Report. Risks are rated as 'red' when the risk is of concern and
sufficient mitigation measures are not possible; 'amber' when the risk is of
concern but sufficient measures are defined and have been or are being
implemented; and 'green' when the risk is acceptable and no additional
measures are needed.
Principal risks identified Controls and mitigation Risk
appetite
1.1 Market volatility The board meets with the portfolio managers and considers asset allocation, Red
stock selection and levels of gearing on a regular basis and has set
Significant market movements may adversely impact the investments held by the investment restrictions and guidelines that are monitored and reported on by
company increasing the risk of loss or challenges to the investment strategy, AllianzGI. The board monitors yields and can modify investment parameters and
reduction of dividends across the market affecting the portfolio yield and the consider a change to dividend policy.
ability to pay in line with dividend policy.
Macroeconomic factors and their causes may mean mitigation may not be possible
Macroeconomic factors could also cause significant market falls, unexpected for significant market movements caused by factors outside the board's
volatility, threat to income or increase in gearing. control.
1.2 Market liquidity and pricing The board receives reports from the manager on the stress testing of the Green
portfolio at least twice each year and contact is made with the Chair and
Failure of investments. board if necessary between board meetings.
1.3 Counterparty risk The manager operates on a delivery versus payment system, reducing the risk of Green
counterparty default.
Non-delivery of stock by a counterparty.
1.4 Currency Currency movements are monitored closely and are reported to the board. Green
Exposure to significant exchange rate volatility could affect the performance
of the investment portfolio.
2.1 Investment strategy The board manages these risks by diversification of investments through its Green
investment restrictions and guidelines which are monitored and on which the
An inappropriate investment strategy e.g., asset allocation or the level of board receives reports at every meeting. The board monitors the implementation
gearing may lead to underperformance against the company's benchmark index and and results of the investment process with the investment managers, who attend
peer group companies, resulting in the company's shares trading on a wider all board meetings, and reviews data which shows risk factors and how they
discount. affect the portfolio.
The manager employs the company's gearing tactically within a strategic range
set by the board. The board also meets annually specifically to discuss
strategy, including investment strategy.
2.2 Shareholder relations Reports on shareholder sentiment are received from the manager and brokers and Green
reviewed by the board. Shareholders are actively encouraged to make their
The investment objectives, or views on decisions such as gearing, discount views known.
management, dividend policy, of existing shareholders may not coincide with
those of the board leading investors to sell their shares. The board reviews and assesses the company's strategy regularly to ensure it
remains suitable and continuously monitors performance.
2.3 Investment performance The investment manager attends all board meetings to discuss performance with Amber
the directors. The board manages these risks by giving investment guidelines
Persistent poor performance against the benchmark or other trusts in our peer which are monitored at each meeting. The board reviews the investment
group leads to decline in attractiveness of the company to investors. performance of the company against the benchmark and peer group.
2.4 Financial A rolling income forecast (including special dividends), balance sheet and Green
expenses are reviewed at every board meeting. Reporting from the custodian
Range of risks including incorrect calculation of NAV, inaccurate revenue covering internal controls in place over custody of investments and over
forecasts, incorrectly calculated management fees, issues with title to appointment and monitoring of sub-custodians is produced and reviewed at least
investment holdings. annually. The board's investment restrictions are input in trading systems to
impose a pre-trade check.
2.5 Liquidity and gearing The board meets with the portfolio managers and considers asset allocation, Green
stock selection and levels of gearing on a regular basis. Investment
Insufficient income generated by the portfolio and due to stock market falls, restrictions and guidelines are monitored and reported on by AllianzGI.
gearing increases to levels unacceptable to shareholders and the market which Regular compliance information is prepared on covenant requirements.
in extreme circumstances results in a breach of loan covenants.
2.6 Market demand The board regularly reviews the level of premium and discount and existing Green
shares can be bought back by the company when the board considers this
The level of discount of the share price to the NAV moves to unacceptable expedient.
levels, threatening confidence in the company's shares and exposing the
company to acquisitions of stakes in the company by predatory or hostile
shareholders.
3.1 Organisation set up and process The manager and the other key service providers report on business continuity Green
plans and the resilience of their response to extreme situations. Third party
Failure in the operational set up of the company, through people, processes, internal controls reports are also received from these service providers.
systems or external events could result in financial loss to the company or
its inability to operate.
3.2 Outsourcing and third party AllianzGI carries out regular monitoring of outsourced administration Amber
functions, which includes compliance visits and risk reviews where necessary.
Risk of inadequate procedures for the identification, evaluation and Results of these reviews are monitored by the board. Additional assurances on
management of risks at outsourced providers including AllianzGI and its business resilience and cyber security are obtained by the board. Agreed
outsourced administration provider, State Street Bank & Trust Company, Service Level Agreements (SLAs) and Key Performance Indicators (KPIs) are in
HSBC Bank plc (Depositary and Custodian) and MUFG Corporate Markets place and the board receives reports against these.
(Registrar).
3.3 Regulatory The board maintains close relations with its advisers and makes preparations Green
for mitigation of these risks as and when they are known or can be
Failure to be aware of or comply with legal, accounting and regulatory anticipated.
requirements which could result in censure, financial penalty or loss of
investment company status.
3.4 Corporate governance The board is highly experienced and knowledgeable about corporate governance Green
best practice and includes directors who are board members of other UK plcs
Weak adherence to best practice in corporate governance can result in and other investment companies. The board takes regular advice on best
shareholder discontent and potential reputational damage to the company. practice.
3.5 Key person Manager and board succession plans are in place. Cover is available for core Green
members of the relevant teams of the manager, and work can be carried out by
Departure of the portfolio manager, certain professional individuals, and/or other team members should the need arise.
board members, may impact the management of the portfolio, the achievement of
the company's investment objective and/or disruption to its operations.
3.6 Financial crime, fraud, cyber security and AI AllianzGI has anti-fraud, anti-bribery policies and robust procedures in Green
place. The board is alert to the risks of financial crime and threat of cyber
That the company and the manager's firm, its employees, or clients are subject attacks and reviews how third party service providers handle these threats.
to financial crime or breach elements of the Bribery Act. Risk of increased These reports confirm that all systems are secure and are updated in response
cyber attacks. Risk from traditional and generative Artificial Intelligence to any new threats as they arise.
(AI) in respect of malicious AI, its rapid growth and the lack of regulation.
The board asks for and receives assurance from key suppliers on information
security and AI developments and threats.
3.7 Reputational The portfolio management team is in constant interaction with AllianzGI's Green
Environmental, Social and Governance (ESG) and Stewardship function and
Association with poor governance in portfolio companies and operational issues actively engages with investee companies on ESG issues and makes investments
in service providers which can affect the reputation of the company. incorporating ESG factors in the decision process. Service providers are
monitored and the manager provides oversight.
4.1 Geopolitical uncertainty The board carries out horizon scanning by keeping informed through its manager Red
and advisers on the political, economic and legal landscape, and reviews
Geopolitical uncertainties including changing membership of international updates received on regulatory changes that affect the company.
alliances and other Middle-Eastern conflicts in recent times including
Iran-Israel, the ongoing invasion of Ukraine by Russia, tensions caused by the
US-China trade relationship and volatile US foreign policies, in particular
the ongoing tariffs trade war. Any of which could cause significant market
falls, threat to income or increase in gearing.
4.2 Impact of AI on the investment portfolio The board carries out horizon scanning by keeping informed through its manager Red
and advisers on the political, economic and legal landscape, and reviews
The rapidly changing landscape for the tech sector and impact of disruptive updates received on regulatory changes that affect the company.
use of AI on other sectors which could cause significant shifts in valuations
of companies in the portfolio. The manager reports on its consideration of AI developments and threats in its
oversight of investments.
Going Concern
The directors have considered the company's investment objective and capital
structure both in general terms and in the context of the current
macroeconomic background. The portfolio, which is constructed by the portfolio
manager on a bottom up basis, consists mainly of securities which are readily
realisable. The directors have also continued to consider the risks and
consequences of external factors on the operational aspects of the company and
have concluded that the company has the ability to continue in operation and
meet its objectives in the foreseeable future. For this reason the directors
continue to adopt the going concern basis in preparing the financial
statements.
Viability Statement
Brunner is an investment company and has operated as an investment vehicle
since 1927 with the aim of offering a return to investors over the long term.
The directors have formally assessed the prospects of the company for a period
of longer than a year. The directors believe that five years is the suitable
outlook period for this review as there is a realistic prospect that the
company will continue to be viable whilst seeking to achieve its aim to
provide growth in capital value and dividends over the long term. This
reflects the longevity of the company and the expectation that investors will
want to hold on to their shares for some time. The board also notes that as a
high conviction investor, the portfolio manager has a five year view on stocks
in the portfolio.
The board has assessed the long-term viability of the company against the
principal risks faced by the company, outlined in the reporting under Risk
Management Policy on page 18 of the Annual Report. Many of these matters are
subject to ongoing review and the final assessment, to enable this statement
to be made, has been formally reviewed by the board.
The factors considered at each board meeting are:
· The company's investment strategy and the long-term performance
of the company, together with the board's view that it can continue to provide
attractive returns to investors;
· As an investment company Brunner is able to put aside revenue
reserves in years of good income to cover a smooth payment of growing
dividends in years when there are challenges to portfolio revenues;
· The financial position of the company, including the impact of
foreseeable market movements on future earnings and cash flows. The board
monitors the financial position in detail at each board meeting and at least
twice each year it stress-tests the portfolio against significant market
falls;
· In the current environment the board is reviewing earnings
prospects, gearing and debt covenants on a continuous basis with the managers;
and
· The liquidity of the portfolio, and the company's ability to pay
dividends and to meet the budgeted expenses, including interest payments, of
running the company.
Based on the results of this assessment, 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 five year period of their review.
The future
The future attractiveness of Brunner as an investment proposition with
relevance to a wide variety of investors is something we debate and evaluate
continuously. We have to consider the investment environment and wider
economic considerations, such as increasing inflationary pressures, and take
soundings on the prospects for our markets, the returns on assets, economic
growth and numerous other factors. Taking all this into account the board
continues to believe that there is a place for Brunner in the range of options
available to the investor and that the company remains viable for the five
year period here under review.
The strategy for the future
The development of the company is dependent on the success of the company's
investment strategy against the economic environment and market developments.
I give my view in the Chair's Statement and the portfolio managers discuss
their view of the outlook for the company's portfolio in their review on page
27 of the Annual Report.
On behalf of the board
Carolan Dobson
Chair
11 February 2026
Statement of Directors' Responsibilities in respect of the financial
statements
The directors are responsible for preparing the Annual Report and the
financial statements in accordance with applicable law and regulation.
Company law requires the directors to prepare financial statements for each
financial year. Under that law the directors have prepared the financial
statements in accordance with United Kingdom Generally Accepted Accounting
Practice (United Kingdom Accounting Standards, comprising FRS 102 'The
Financial Reporting Standard applicable in the UK and Republic of Ireland',
and applicable law).
Under company law 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 and of the profit or loss of the company for that period. In
preparing these financial statements, the directors are required to:
· select suitable accounting policies and then apply them
consistently;
· state whether applicable United Kingdom Accounting Standards,
comprising FRS 102 have been followed, subject to any material departures
disclosed and explained in the financial statements;
· make judgements and accounting estimates that are reasonable and
prudent; and
· 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 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 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 and the
Directors' Remuneration Report comply with the Companies Act 2006.
The directors are responsible for the maintenance and integrity of the
company's website. Legislation in the United Kingdom governing the preparation
and dissemination of financial statements may differ from legislation in other
jurisdictions.
Directors' confirmations
Each of the directors, whose names and functions are listed in Directors,
Manager and Advisers on pages 60 to 61 of the Annual Report, confirm that, to
the best of their knowledge:
· the company financial statements, which have been prepared in
accordance with United Kingdom Accounting Standards, comprising FRS 102, give
a true and fair view of the assets, liabilities, financial position and profit
of the company; and
· the Strategic Report 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.
In the case of each director in office at the date the directors' report is
approved:
· so far as the director is aware, there is no relevant audit
information of which the company's auditors are unaware; and
· they have taken all the steps that they ought to have taken as a
director in order to make themselves aware of any relevant audit information
and to establish that the company's auditors are aware of that information.
This responsibility statement was approved by the board of directors on 11
February 2026 and signed on its behalf by:
Carolan Dobson
Chair
PORTFOLIO BREAKDOWN as at 30 November 2025
Region % of Invested Funds
North America 44.5
United Kingdom 25.7
Continental Europe 20.5
Pacific Basin 6.0
Japan 3.3
Total 100.0
TOP 20 HOLDINGS as at 30 November 2025
Name Sector Value (£) Funds
Microsoft Software & Computer Services 42,119,286 6.2
Alphabet Software & Computer Services 35,982,034 5.3
Taiwan Semiconductor Technology Hardware & Equipment 25,582,720 3.8
Visa Industrial Support Services 24,119,592 3.6
Bank Of Ireland Group Banks 21,945,087 3.2
SSE Electricity 19,522,937 2.9
AIA Life Insurance 19,244,963 2.8
Intercontinental Hotels Travel & Leisure 19,025,095 2.8
TotalEnergies Oil, Gas & Coal 18,353,568 2.7
Thermo Fisher Scientific Medical Equipment & Services 18,245,984 2.7
ASML Holding Technology Hardware & Equipment 18,040,314 2.7
Corpay Industrial Support Services 16,980,528 2.5
Shell Oil, Gas & Coal 16,590,606 2.5
Charles Schwab Investment Banking & Brokerage 16,567,420 2.4
Schneider Electric Electronic & Electrical Equipment 14,941,256 2.2
Auto Trader Group Software & Computer Services 14,300,573 2.1
Amazon Retailers 14,128,126 2.1
Itochu General Industrials 13,930,785 2.1
GSK Pharmaceuticals & Biotechnology 13,747,584 2.0
AMETEK Electronic & Electrical Equipment 13,643,871 2.0
Income Statement
for the year ended 30 November 2025
2025 2025 2025 2024 2024 2024
Revenue
Capital
Total Return
Revenue
Capital
Total Return
£'000s
£'000s
£'000s
£'000s
£'000s
£'000s
Gains on investments held at fair value through profit or loss - 46,435 46,435 - 87,450 87,450
Losses on foreign currencies - (164) (164) - (209) (209)
Income 15,244 - 15,244 15,233 - 15,233
Investment management fee (875) (2,041) (2,916) (823) (1,919) (2,742)
Administration expenses (923) (6) (929) (954) (3) (957)
Profit before finance costs and taxation 13,446 44,224 57,670 13,456 85,319 98,775
Finance costs: interest payable and similar charges (332) (718) (1,050) (434) (954) (1,388)
Profit on ordinary activities before taxation 13,114 43,506 56,620 13,022 84,365 97,387
Taxation (1,068) - (1,068) (1,336) - (1,336)
Profit after taxation attributable to ordinary shareholders 12,046 43,506 55,552 11,686 84,365 96,051
Earnings per ordinary share (basic and diluted) 27.86p 100.62p 128.48p 27.37p 197.57p 224.94p
Balance Sheet
at 30 November 2025
2025 2025 2024
£'000s £'000s £'000s
Fixed assets
Investments held at fair value through profit or loss 677,851 644,737
Current assets
Other receivables 1,919 5,471
Cash at bank and in hand 17,603 4,812
19,522 10,283
Current liabilities
Other payables (5,029) (11,727)
Net current assets (liabilities) 14,493 (1,444)
Total assets less current liabilities 692,344 643,293
Creditors: amounts falling due after more than one year (25,121) (25,111)
Total net assets 667,223 618,182
Capital and reserves
Called up share capital 10,812 10,741
Share premium account 7,945 3,840
Capital redemption reserve 5,327 5,327
Capital reserve 622,356 578,996
Revenue reserve 20,783 19,278
Total shareholders funds 667,223 618,182
Net Asset Value per ordinary share 1,543.2p 1,438.8p
Statement of Changes in Equity for the year ended 30 November 2025
Called up Share Capital redemption reserve Capital Revenue reserve Total
share
premium account
£'000s
reserve
£'000s
£'000s
capital
£'000s
£'000s
£'000s
Net assets as at 1 December 2023 10,673 - 5,327 494,631 17,579 528,210
Revenue profit - - - - 11,686 11,686
Shares issued during the year 68 3,840 - - - 3,908
Dividends on ordinary shares - - - - (9,990) (9,990)
Unclaimed dividends - - - - 3 3
Capital profit - - - 84,365 - 84,365
Net assets as at 30 November 2024 10,741 3,840 5,327 578,996 19,278 618,182
Net assets as at 1 December 2024 10,741 3,840 5,327 578,996 19,278 618,182
Revenue profit - - - - 12,046 12,046
Shares repurchased into treasury during the year - - - (146) - (146)
Shares issued during the year 71 4,105 - - - 4,176
Dividends on ordinary shares - - - - (10,541) (10,541)
Capital profit - - - 43,506 - 43,506
Net assets as at 30 November 2025 10,812 7,945 5,327 622,356 20,783 667,223
Cash Flow Statement
for the year ended 30 November 2025
2025 2024
£'000s £'000s
Operating activities
Profit before finance costs and taxation* 57,670 98,775
Less: gains on investments held at fair value through profit or loss (46,435) (87,450)
Less: overseas tax suffered (1,068) (1,336)
Add: losses on foreign currency 164 209
Purchase of fixed asset investments held at fair value through profit or loss (144,803) (121,281)
Sales of fixed asset investments held at fair value through profit or loss 161,587 117,371
(Increase) decrease in other receivables (356) 99
Increase in other payables 98 127
Net cash inflow from operating activities 26,857 6,514
Financing activities
Interest paid and similar charges (1,283) (1,349)
Repayment of revolving credit facility (10,000) -
Dividend paid on cumulative preference stock (23) (22)
Dividends paid on ordinary shares (10,541) (9,990)
Unclaimed dividends over 12 years - 3
Shares repurchased into treasury during the year (139) -
Share issue proceeds 8,084 -
Net cash outflow from financing activities (13,902) (11,358)
Increase (decrease) in cash and cash equivalents 12,955 (4,844)
Cash and cash equivalents at the beginning of the year 4,812 9,865
Effect of foreign exchange rates (164) (209)
Cash and cash equivalents at the end of the year 17,603 4,812
Comprising:
Cash at bank 17,603 4,812
* Cash inflow from dividends was £13,739,000 (2024: £13,372,000) and cash
inflow from interest was £85,000 (2024: £161,000).
NOTES
Note A
The financial statements have been prepared under the historical cost
convention, except for the revaluation of financial instruments held at fair
value through profit or loss and in accordance with applicable United
Kingdom law and UK Accounting Standards (UK GAAP), including Financial
Reporting Standard 102 - the Financial Reporting Standard applicable in the
United Kingdom and Republic of Ireland (FRS 102), the requirements of the
Companies Act 2006 and in line with the Statement of Recommended Practice
"Financial Statements of Investment Trust Companies and Venture Capital
Trusts" issued by the Association of Investment Companies (AIC SORP) in July
2022.
Note B
The earnings per ordinary share is based on a weighted number of shares
43,240,399 (2024: 42,701,544) ordinary shares in issue.
Note C
The total return column of this statement is the profit and loss account of
the company.
The supplementary revenue return and capital return columns are both prepared
under the guidance published by the Association of Investment Companies.
All revenue and capital items in the Income Statement derive from continuing
operations. No operations were acquired or discontinued in the year.
Profit after taxation attributable to ordinary shareholders disclosed in the
Income Statement represents the company's total comprehensive income.
Transaction costs and stamp duty on purchases amounted to £270,000 (2024:
£268,000) and transaction costs on sales amounted to £28,000 (2024:
£27,000).
Note D
Investments - As the company's business is investing in financial assets with
a view to profiting from their total return in the form of increases in fair
value, financial assets are held at fair value through profit or loss in
accordance with FRS 102 Section 11: 'Basic Financial Instruments' and Section
12: 'Other Financial Instruments'. The company manages and evaluates the
performance of these investments on a fair value basis in accordance with its
investment strategy, and information about investments is provided on this
basis to the board.
Note E
Dividends on Ordinary Shares
2025 2024
£'000s
£'000s
Dividends paid on ordinary shares
Third interim dividend - 5.90p paid 12 December 2024 (2023: 5.55p) 2,519 2,369
Final dividend - 6.05p paid 4 April 2025 (2024: 6.05p) 2,616 2,583
First interim dividend - 6.25p paid 24 July 2025 (2024: 5.90p) 2,703 2,519
Second interim dividend - 6.25p paid 19 September 2025 (2024: 5.90p) 2,703 2,519
10,541 9,990
Dividends payable at the year end are not recognised as a liability under FRS
102 Section 32 'Events After the End of the Reporting Period' (see page 90 of
the annual report - Statement of Accounting Policies). Details of these
dividends are set out below.
2025 2024
£'000s
£'000s
Third interim dividend - 6.25p paid 11 December 2025 (2024: 5.90p) 2,702 2,519
Final proposed dividend - 6.25p payable 2 April 2026 (2025: 6.05p) 2,702 2,599
5,404 5,118
The proposed final dividend accrued is based on the number of shares in issue
at the year end. However, the dividend payable will be based on the numbers of
shares in issue on the record date and will reflect any changes in the share
capital between the year end and the record date.
All dividends disclosed in the tables above have been paid or are payable from
the revenue reserves.
Note F
The financial information for the year ended 30 November 2025 has been
extracted from the statutory accounts for that year. The auditor's report on
those accounts was unqualified and did not contain a statement under either
section 498(2) or (3) of the Companies Act 2006. The annual financial report
has not yet been delivered to the registrar of companies.
The financial information for the year ended 30 November 2024 has been
extracted from the statutory accounts for that year which have been delivered
to the registrar of companies. The auditor's report on those accounts was
unqualified and did not contain a statement under either section 498(2) or
section 498(3) of the Companies Act 2006.
The full annual report will shortly be available to be viewed on or downloaded
from the company's website at www.brunner.co.uk. 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.
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. END FR SFLFDEEMSEIE
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