Interim Financial Report
15/10/2025 07:01
LEI: 549300K1D1P23R8U4U50 Artemis UK Future Leaders plc Interim Financial Report The following text is extracted from the Interim Financial Report of the Company for the half year ended 31 July 2025. All page numbers below refer to the Interim Financial Report which will be made available on the Company's website: www.artemisfunds.com/futureleaders A copy of the Interim Financial Report will also be submitted to the National Storage Mechanism and will shortly be available for inspection online at: https://data.fca.org.uk/#/nsm/nationalstoragemechanism Chairman’s Statement Dear shareholders, I am writing to report the results for the six months ended 31 July 2025. In what continues to be a challenging market backdrop for UK smaller companies, the Trust delivered a 1.1% total return on a net asset value (‘NAV’) basis and a 4.0% total return on a share price basis, both underperforming our benchmark, the Deutsche Numis Smaller Companies + AIM (ex-Investment Companies) index, which returned 6.7% over the same period. We notified Shareholders that the Managers were to be changed from Invesco to Artemis in mid-March. This took place during this six-month reporting period. Artemis took around two months to rebalance the portfolio, so it is too early to judge their impact on the Portfolio’s performance. Performance and markets The performance reflects a period of modest recovery in UK smaller companies, yet it was outpaced by gains in the broader market. The NAV return lagged markedly behind that of the benchmark; and the share price return, while stronger than NAV, still fell short. The market environment has remained volatile, influenced by inflationary concerns, geopolitical tensions and softness in domestic consumption. Although pockets of opportunity have emerged, especially among high-quality, cash-generative smaller businesses, broader sentiment to UK small companies remains cautious. Dividends and dividend policy Our dividend policy remains unchanged: to distribute all available revenue income in the form of quarterly dividends, supplemented, as necessary, by realised capital reserves. The policy target is a 4% dividend yield (based on the year-end share price) for the year ending 31 January 2026, subject to normal circumstances. For the six-month period to 31 July 2025, the Board continues to review the balance of revenue and capital contributions to ensure sustainable distributions. A first interim dividend for the year ending 31 January 2026 of 3.85 pence per share was paid in August. A second interim dividend of 3.85 pence per share will be paid in December. The Board remains committed to delivering consistent quarterly payments and maintaining alignment with the stated yield goal. Update on the transition to Artemis As shareholders will recall, Artemis were appointed as the Trust’s manager in March 2025, with Mark Niznik and Will Tamworth now running the portfolio. The handover is complete, with the portfolio now reflecting the high-conviction approach of Artemis. The new managers have repositioned the portfolio towards companies with robust balance sheets, strong cashflows and long-term growth potential. At the same time, they have been careful to manage transition costs and market impact. While the benefits of this transition will take time to be fully reflected in performance, the Board remains confident that the Trust is now well placed under the stewardship of Artemis. Outlook The managers have been saying for some time that the UK economy is in better shape than the headlines suggest. Their view was confirmed in mid-August on the news that GDP growth had outpaced expectations in Q2, making the UK the fastest growing G7 economy in the first half of the year. Meanwhile, household debt (as a percentage of gross disposable income) is at its lowest since the late ‘90s. It is possible that the managers are wrong and the UK is about to enter a recession. However, there are two other scenarios that they think are far more likely and represent something of an each-way bet for the UK smaller companies sector. On the one hand, if employment holds up, consumer confidence and spending may slowly increase. This pushes up economic growth in the UK at a time when some commentators expect it to falter in the US. The relative valuation disparity could prompt a modest investor switch which fuels flows into the UK. Small-cap returns get turbo-charged as they benefit from greater domestic revenues. On the other hand, the UK hobbles on with more of the same: a rather moribund economy where, even though investors don’t return to UK smaller companies, low valuations mean takeovers and share buybacks continue to drive returns. Final thoughts On behalf of the Board, I would like to thank shareholders for your ongoing support during this transitionary period. We continue to believe in the long-term potential of the Trust and are confident that the appointment of Artemis, together with our robust dividend policy and active stewardship, will assist in delivering sustainable returns. We remain closely aligned with shareholder interests and committed to clear, transparent communication. I look forward to updating you further as we move into the second half of the year. Bridget Guerin Chairman 14 October 2025 Portfolio Managers’ report Statement from the previous managers Invesco Perpetual UK Smaller Companies plc’s net asset value (NAV) delivered a total return of –4.6% during the period 1 February to 9 March 2025. This was modestly behind its Deutsche Numis Smaller Companies plus AIM (Inv-Trust) benchmark which returned –4.4% during the same period. During this period the fund managers had been instructed by the Board to administer the portfolio on a ‘care and maintenance’ basis. We were asked not to purchase any new holdings and to take instructions on sales and reductions in holdings in order to raise funds for the redemption of the debt facility. Effectively we were taking instructions from the Board and Artemis via the Board. Jonathan Brown & Robin West Invesco Fund Managers Limited Portfolio managers until 9 March 2025 Performance Artemis UK Future Leaders plc’s net asset value (NAV) rose 1.1% in the six months to the end of July 2025, compared with gains of 6.7% from its Deutsche Numis Smaller Companies plus AIM (Inv-Trust) benchmark1. Since we took charge of the trust on 7 March, NAV has risen by 6.5% compared with gains of 11.6% from its benchmark. It took us less than three months to reposition the portfolio, so it better reflects our investment philosophy. With this process now complete, we have added a small amount of gearing to the trust which we hope can be taken as a sign of confidence, as should the fact that we have bought 726,000 shares in Artemis UK Future Leaders between us. Negatives GB Group, a provider of identity-verification and fraud-prevention services, was a detractor from performance. Full-year results were in line with expectations, but some analysts cut forecasts for next year (in large part due to currency movements) despite management reiterating that they expect to meet full-year expectations. We remain positive on GB Group’s medium-term prospects and felt the share price reaction was overdone. An 8% free cashflow yield looks attractive to us for what is a business with a largely recurring earnings model. We added to our holding. Victorian Plumbing Group also performed poorly after cutting forecasts: most of the downgrade came from new investment in the acquired MFI brand in order to enter the adjacent UK homewares market. The company also underestimated the impact of depreciation following completion of its new warehouse and is yet to see an improvement in the market backdrop. We added to our holding: the investment in MFI represents a low-cost way of entering a new large market and can be curtailed quickly if it is not successful. Translation services provider RWS delivered a couple of negative updates. It downgraded its expectations for profit before tax due to several issues including onboarding challenges with two new customers, weakness in its life sciences division and the impact of currency movements. The shares are now trading at just 5x earnings, there are no balance sheet issues and the incoming chief executive just bought 1 million shares. However, RWS has a lot of work to do to regain investors’ confidence. Positives Since we took charge of the trust on 10 March, the defence stocks in our portfolio have done well, with holdings in Avon Technologies, Chemring Group and Serco Group (which generates about 40% of its revenues from this area) rising strongly. Our financial positions have fared even better. The portfolio’s best performer during the period was Secure Trust Bank, which fell significantly in October last year when three Court of Appeal decisions relating to motor finance went against FirstRand Bank and Close Brothers (which we don’t own). Aside from a potentially large compensation bill, Secure Trust Bank also issued a profit warning driven by a slower recovery in its vehicle finance division, after the FCA’s Borrowers in Financial Difficulty (BiFD) review led to a temporary pause in collections and a higher default rate. At the time, we felt that the shares offered substantial potential upside, trading as they were at a 75% discount to book value. Since then, they have rebounded past their October starting price with the company’s loss-making vehicle finance book put into run-off. After the end of the reporting period, the UK Supreme Court largely overturned the Court of Appeal’s rulings. Pawnbroker H&T Group and foreign exchange specialist Alpha Group International announced they were to be taken over, at premiums of 44% and 55% respectively to their pre-offer share prices. M&A has been and is likely to remain a driver of performance. Another is buybacks: over the first half of the year we have seen a record number of holdings in our open-ended fund reduce their share count. We see this as indicative of management teams expressing the view that: a) Their businesses have surplus capital (our median holding is forecast to have no net debt); b) They are confident in the outlook; and c) Their share prices do not reflect fundamental value. Activity With our portfolio rebalancing now effectively complete, there was a 75% overlap between the trust and our open-ended Artemis UK Smaller Companies Fund as at the 31 July period end. It is now closer to 90% as at the date of publication. If you are wondering why 25% is different, about 10 percentage points is in companies we own in both vehicles, but in different weights, while the other 15 percentage points is in companies we own in one and not the other (there will always be shares entering or exiting any live portfolio, while in some cases we have exposure to the same theme across both vehicles through different companies). With so many changes in the portfolio, we thought it would be more instructive to focus on the four largest holdings – all of which are leaders in their niches. • Serco Group – Serco Group is the market leader in government outsourcing. We like the visibility and inflation protection provided by its long-term contracts. The previous management team introduced greater rigour into the business and addressed some problematic contracts, leaving a very cash-generative, high-return-on-capital business with a strong balance sheet. We feel a 7% free cashflow yield is attractive. • IntegraFin Holdings – IntegraFin Holdings is the parent company of the retail investment platform Transact. It has recurring revenue (which admittedly rises and falls with the market) and, unlike some of its competitors, does not earn any interest on client funds. It makes high margins, generates strong cashflows (we can think of few companies with a cleaner set of accounts) and operates in a segment that is seeing structural growth as investors migrate onto platforms. In addition, it has a very strong balance sheet with more than £200 million net cash. With these characteristics we see a free cashflow yield approaching 6% for next year as attractive. • GB Group – GB Group is a market leader in online fraud prevention and identity verification and in many cases is embedded in its customers’ routes to market. Although there has been a post-Covid hangover (as online activity has reverted to more normal levels from an unsustainable position) we believe this remains a structurally growing market. It now has a strong balance sheet and trades on a high single-digit free cashflow yield. • MONY Group – MONY Group, the owner of the MoneySuperMarket and MoneySavingExpert brands, is the UK’s market-leading price-comparison platform. While it may not be the largest in every category (for example Compare the Market is bigger in insurance), it has the broadest offering. A wide range of verticals increases customer touchpoints: most consumers only buy car insurance once per year and only switch every few years. By also offering current accounts, broadband, energy, loans, travel insurance and other products, MONY Group interacts more frequently with visitors to its websites. Its rewards programme, SuperSaveClub, goes further in helping to convert a one-off transaction into a recurring revenue stream and therefore reduces its reliance on Google or television advertising. It is this opportunity that really excites us and is certainly not reflected in a free cashflow yield approaching 10%. Outlook We continue to believe that the negative narrative that surrounds the UK economy is not supported by the data: the fundamentals are better than widely perceived. Consumers are relatively well positioned (with rising real incomes, low unemployment and declining household debt); businesses have strong balance sheets (the median company in the trust is forecast to have no net debt); and the political backdrop is (relatively) stable. With the national insurance increases now in the past, we are confident that the slight softening we have already seen in the labour market will not translate into a spike in unemployment. This view is supported by our conversations with companies. If we are right, then we expect a gradual recovery in consumer, business and ultimately investor confidence, resulting in a recovery in consumer spending, business investment and UK equity allocations. In the interim, we continue to see high levels of takeover activity – third parties attracted to the same traits as we are, taking a more positive view on the outlook and illustrating the degree of undervaluation of UK smaller companies (the average takeover premium is close to 50%). We are also seeing record levels of holdings buying back their own shares. Mark Niznik & William Tamworth Artemis Fund Managers Limited Portfolio managers from 10 March 2025 14 October 2025 Principal risks and uncertainties The Directors confirm that they have carried out a robust assessment of the emerging and principal risks facing the Company, including those that would threaten its business model, future performance, solvency or liquidity. Most of these risks are market related and are similar to those of other investment trusts investing primarily in listed markets. The Audit Committee reviews the Company’s risk control summary at each meeting, and as part of this process, gives consideration to identify emerging risks. Emerging risks, such as evolving cyber threats, geo-political tensions and climate related risks, have been considered during the period as part of the Directors’ assessment.
| Principal Risk Description | Mitigating Procedures and Controls |
| Market (Economic) Risk Factors such as fluctuations in stock markets, interest rates and exchange rates are not under the control of the Board or the Portfolio Managers, but may give rise to high levels of volatility in the share prices of investee companies, as well as affecting the Company’s own share price and the discount to its NAV. The risk could be triggered by unfavourable developments globally and/or in one or more regions, contemporary examples being the market uncertainty in relation to the wider political developments in Ukraine, the Middle East and the worldwide tariffs implemented by the USA. | The Directors have assessed the market impact of the ongoing uncertainty from the unfavourable developments globally through regular discussions with the Portfolio Managers and the Corporate Broker. The Company’s current portfolio consists of companies listed on the main UK equity market and those listed on AIM. To a limited extent, futures can be used to mitigate against market (economic) risk, as can the judicious holding of cash or other very liquid assets. Futures are not currently being used. |
| Investment Risk The Company invests in small and medium-sized companies traded on the London Stock Exchange or on AIM. By their nature, these are generally considered riskier than their larger counterparts and their share prices can be more volatile, with lower liquidity. In addition, as smaller companies may not generally have the financial strength, diversity and resources of larger companies, they may find it more difficult to overcome periods of economic slowdown or recession. | The Portfolio Managers seek to mitigate risk through holding an economically diversified portfolio without concentrated macroeconomic bets. UK Smaller Companies in aggregate earn approximately 60% of their revenues from the domestic UK economy so the portfolio will be sensitive to both the UK macro economic outlook and sentiment towards the UK. Artemis’ preference is to invest in companies with strong balance sheets and strong cash generation which should be relatively better positioned to withstand economic shocks. We like companies with market leading positions which tend to be better able to pass through price increases to mitigate cost inflation. The portfolio is constructed without reference to the benchmark. The weighting that a stock is given is a function of anticipated share price upside, the level of conviction and the riskiness of an investment. A single holding will typically not exceed 5% of the portfolio. The factor profile of the portfolio is also principally driven by bottom-up stock picking although our investment risk team generates factor analysis for the investment team to review on a regular basis. Sustainability analysis is a core part of our stock analysis in both assessing the opportunities and risks facing companies over the medium to long term. We identify key ESG metrics for each company and track the disclosure and trend of these. Disclosures by companies in the investment universe can often be poor, so this is an area we engage on. The Portfolio Managers remain cognisant at all times of the potential liquidity of the portfolio. There can be no guarantee that the Company’s strategy and business model will be successful in achieving its investment objective. The Board monitors the performance of the Company, giving due consideration to how the Manager has incorporated ESG considerations including climate change into their investment process. The Board also has guidelines in place to ensure that the Managers adhere to the approved investment policy. The continuation of the Manager’s mandate is reviewed annually. |
| Shareholders’ Risk The value of an investment in the Company may go down as well as up and an investor may not get back the amount invested. | The Board reviews regularly the Company’s investment objective and strategy to ensure that it remains relevant, as well as reviewing the composition of the shareholder register, peer group performance on both a share price and NAV basis, and the Company’s share price discount to NAV per share. The Board and the Portfolio Managers maintain an active dialogue with the aim of ensuring that the market rating of the Company’s shares reflects the underlying NAV; both share buy back and issuance facilities are in place to help the management of this process. |
| Reliance on the Manager and other Third-Party Service Providers The Company has no employees and the Board comprises non-executive directors only. The Company is therefore reliant upon the performance of third-party service providers for its executive function and service provisions. The Company’s operational structure means that all cyber risk (information and physical security) arises at its third-party service providers, including fraud, sabotage or crime against the Company. The Company’s operational capability relies upon the ability of its third-party service providers to continue working throughout the disruption caused by a major event such as the Covid-19 pandemic. Failure by any service provider to carry out its obligations to the Company in accordance with the terms of its appointment could have a materially detrimental impact on the operation of the Company and could affect the ability of the Company to successfully pursue its investment policy. The Company’s main service providers, of which the Manager is the principal provider, are listed on pages 28 to 29. The Manager may be exposed to reputational risks. In particular, the Manager may be exposed to the risk that litigation, misconduct, operational failures, negative publicity and press speculation, whether or not it is valid, will harm its reputation. Damage to the reputation of the Manager could potentially result in counterparties and third parties being unwilling to deal with the Manager and by extension the Company, which carries the Manager’s name. This could have an adverse impact on the ability of the Company to pursue its investment policy successfully. | Third-party service providers are subject to ongoing monitoring by the Manager and the Board. The Manager reviews the performance of all third-party providers regularly through formal and informal meetings. The Audit Committee reviews regularly the performance and internal controls of the Manager and all third-party providers through audited service organisation control reports together with updates on information security, the results of which are reported to the Board. The Manager’s business continuity plans are reviewed on an ongoing basis and the Directors are satisfied that the Manager has in place robust plans and infrastructure to minimise the impact on its operations so that the Company can continue to trade, meet regulatory obligations, report and meet shareholder requirements. The Board receives regular update reports from the Manager and third-party service providers on business continuity processes and has been provided with assurance from them all insofar as possible that measures are in place for them to continue to provide contracted services to the Company. |
| Regulatory Risk The Company is subject to various laws and regulations by virtue of its status as an investment trust, its listing on the London Stock Exchange and being an Alternative Investment Fund under the UK AIFMD regime. A loss of investment trust status could lead to the Company being subject to corporation tax on the chargeable capital gains arising on the sale of its investments. Other control failures, either by the Manager or any other of the Company’s service providers, could result in operational or reputational problems, erroneous disclosures or loss of assets through fraud, as well as breaches of regulations. | The Manager reviews the level of compliance with tax and other financial regulatory requirements on a regular basis. The Board regularly considers all risks, the measures in place to control them and the possibility of any other risks that could arise. The Manager’s Compliance and Internal Audit team produce annual reports for review by the Company’s Audit Committee. |
| Market Value | Portfolio Exposure* | ||||
| Company | Sector | £’000 | £'000 | % | |
| Serco Group | Industrial Support Services | 4,508 | 4,508 | 3.1 | |
| IntegraFin Holdings | Investment Banking and Brokerage Services | 2,494 | 4,103^ | 2.8 | |
| GB Groupᴬᴵᴹ | Software and Computer Services | 3,139 | 3,813^ | 2.6 | |
| MONY Group | Software and Computer Services | 3,458 | 3,781^ | 2.6 | |
| Brooks Macdonald Group | Investment Banking and Brokerage Services | 3,629 | 3,629 | 2.5 | |
| Mears Group | Industrial Support Services | 3,485 | 3,485 | 2.4 | |
| Moonpig Group | Retailers | 3,141 | 3,475^ | 2.4 | |
| Chemring Group | Aerospace and Defence | 3,421 | 3,421 | 2.3 | |
| Avon Technologies | Aerospace and Defence | 3,352 | 3,352 | 2.3 | |
| Secure Trust Bank | Banks | 3,263 | 3,263 | 2.2 | |
| NCC Group | Software and Computer Services | 2,167 | 3,231^ | 2.2 | |
| Gamma Communications | Telecommunications Service Providers | 2,473 | 3,143^ | 2.2 | |
| Wilmington | Media | 2,200 | 3,043^ | 2.1 | |
| Coats Group | General Industrials | 2,972 | 2,972 | 2.0 | |
| Telecom Plus | Electricity | 2,411 | 2,931^ | 2.0 | |
| Dunelm Group | Retailers | 2,912 | 2,912 | 2.0 | |
| Hilton Food Group | Food Producers | 2,904 | 2,904 | 2.0 | |
| Morgan Sindall Group | Construction and Materials | 2,877 | 2,877 | 2.0 | |
| Hollywood Bowl Group | Travel and Leisure | 2,155 | 2,834^ | 2.0 | |
| Future | Media | 1,323 | 2,784^ | 1.9 | |
| Alpha Group International | Investment Banking and Brokerage Services | 2,717 | 2,717 | 1.9 | |
| JTC | Investment Banking and Brokerage Services | 1,986 | 2,684^ | 1.8 | |
| Wickes Group | Retailers | 2,536 | 2,536 | 1.7 | |
| J D Wetherspoon | Travel and Leisure | 2,529 | 2,529 | 1.7 | |
| Norcros | Construction and Materials | 1,592 | 2,473^ | 1.7 | |
| Victorian Plumbing GroupAIM | Retailers | 2,429 | 2,429 | 1.7 | |
| On the Beach Group | Travel and Leisure | 2,361 | 2,361 | 1.6 | |
| RestoreAIM | Industrial Support Services | 2,338 | 2,338 | 1.6 | |
| Young & Co’s Brewery – Non-VotingAIM | Travel and Leisure | 2,306 | 2,306 | 1.6 | |
| Halfords Group | Retailers | 2,228 | 2,228 | 1.5 | |
| GlobalDataAIM | Industrial Support Services | 2,198 | 2,198 | 1.5 | |
| DFS Furniture | Retailers | 2,194 | 2,194 | 1.5 | |
| Next 15 GroupAIM | Media | 2,185 | 2,185 | 1.5 | |
| Henry Boot | Real Estate Investment and Services | 1,473 | 2,157^ | 1.5 | |
| Tatton Asset ManagementAIM | Investment Banking and Brokerage Services | 2,133 | 2,133 | 1.5 | |
| 4Imprint Group | Media | 2,114 | 2,114 | 1.5 | |
| SSP Group | Travel and Leisure | 2,104 | 2,104 | 1.4 | |
| Oxford Instruments | Electronic and Electrical Equipment | 2,064 | 2,064 | 1.4 | |
| Kainos Group | Software and Computer Services | 1,970 | 1,970 | 1.3 | |
| Johnson Service Group | Industrial Support Services | 1,955 | 1,955 | 1.3 | |
| MJ Gleeson | Household Goods and Home Construction | 1,892 | 1,892 | 1.3 | |
| Harworth Group | Real Estate Investment and Services | 441 | 1,878^ | 1.3 | |
| Accesso Technology GroupAIM | Software and Computer Services | 1,871 | 1,871 | 1.3 | |
| NetcallAIM | Software and Computer Services | 1,806 | 1,806 | 1.2 | |
| Energean | Oil, Gas and Coal | 1,783 | 1,783 | 1.2 | |
| RWSAIM | Industrial Support Services | 1,750 | 1,750 | 1.2 | |
| YouGovAIM | Media | 1,698 | 1,698 | 1.2 | |
| NIOX GroupAIM | Medical Equipment and Services | 1,660 | 1,660 | 1.1 | |
| Auction Technology Group | Software and Computer Services | 1,621 | 1,621 | 1.1 | |
| TT Electronics | Technology Hardware and Equipment | 1,543 | 1,543 | 1.1 | |
| LBG MediaAIM | Media | 1,537 | 1,537 | 1.1 | |
| M&C SaatchiAIM | Media | 1,428 | 1,428 | 1.0 | |
| Workspace Group | Real Estate Investment Trusts | 1,405 | 1,405 | 1.0 | |
| Morgan Advanced Materials | Electronic and Electrical Equipment | 1,376 | 1,376 | 0.9 | |
| Videndum | Industrial Engineering | 1,371 | 1,371 | 0.9 | |
| Severfield | Construction and Materials | 1,369 | 1,369 | 0.9 | |
| Keller Group | Construction and Materials | 1,259 | 1,259 | 0.9 | |
| Jadestone EnergyAIM | Oil, Gas and Coal | 1,160 | 1,160 | 0.8 | |
| CLS | Real Estate Investment and Services | 1,065 | 1,065 | 0.7 | |
| Warpaint LondonAIM | Personal Goods | 1,064 | 1,064 | 0.7 | |
| SIG | Industrial Support Services | 1,046 | 1,046 | 0.7 | |
| Beeks Financial Cloud | |||||
| GroupAIM | Software and Computer Services | 1,017 | 1,017 | 0.7 | |
| Victrex | Chemicals | 842 | 842 | 0.6 | |
| FDM Group | Industrial Support Services | 506 | 506 | 0.3 | |
| Total Investments: 64 (31 January 2025: 60) | 134,206 | 146,083 | 100.0 | ||
| Six months ended | Six months ended | ||||||||||||
| 31 July 2025 | 31 July 2024 | ||||||||||||
| (unaudited) | (unaudited) | ||||||||||||
| Revenue | Capital | Total | Revenue | Capital | Total | ||||||||
| Notes | £’000 | £’000 | £’000 | £’000 | £’000 | £’000 | |||||||
| (Loss)/profit on investments held at fair value | – | (498) | (498) | – | 20,361 | 20,361 | |||||||
| Income | 2 | 2,381 | – | 2,381 | 2,855 | – | 2,855 | ||||||
| Net gains on derivatives | – | 255 | 255 | – | – | – | |||||||
| Investment management fee | 3 | (15) | (359) | (374) | (98) | (553) | (651) | ||||||
| Other expenses | (263) | (1) | (264) | (238) | (150) | (388) | |||||||
| Profit/(loss) before finance costs and taxation | 2,103 | (603) | 1,500 | 2,519 | 19,658 | 22,177 | |||||||
| Finance costs | 3 | (7) | (44) | (51) | (41) | (236) | (277) | ||||||
| Profit/(loss) before taxation | 2,096 | (647) | 1,449 | 2,478 | 19,422 | 21,900 | |||||||
| Taxation | 4 | – | – | – | – | – | – | ||||||
| Profit/(loss) after taxation | 2,096 | (647) | 1,449 | 2,478 | 19,422 | 21,900 | |||||||
| Return/(loss) per ordinary share | 6.90p | (2.13)p | 4.77p | 7.33p | 57.41p | 64.74p | |||||||
| Weighted average number of ordinary shares in issue during the period | 30,373,362 | 33,826,929 | |||||||||||
| Six months ended 31 July 2025 (unaudited) | ||||||
| Capital | ||||||
| Share | Share | redemption | Capital | Revenue | ||
| capital | premium | reserve | reserve | reserve | Total | |
| £’000 | £’000 | £’000 | £’000 | £’000 | £’000 | |
| At 31 January 2025 | 9,965 | 22,366 | 4,063 | 98,470 | 1,780 | 136,644 |
| Total comprehensive (loss)/income for the period | – | – | – | (647) | 2,096 | 1,449 |
| Dividends declared and paid | – | – | – | (1,607) | (1,780) | (3,387) |
| At 31 July 2025 | 9,965 | 22,366 | 4,063 | 96,216 | 2,096 | 134,706 |
| Six months ended 31 July 2024 (unaudited) | ||||||
| Capital | ||||||
| Share | Share | redemption | Capital | Revenue | ||
| capital | premium | reserve | reserve | reserve | Total | |
| £’000 | £’000 | £’000 | £’000 | £’000 | £’000 | |
| At 31 January 2024 | 10,642 | 22,366 | 3,386 | 123,147 | 1,854 | 161,395 |
| Total comprehensive income for the period | – | – | – | 19,422 | 2,478 | 21,900 |
| Dividends paid | – | – | – | (1,278) | (1,854) | (3,132) |
| At 31 July 2024 | 10,642 | 22,366 | 3,386 | 141,291 | 2,478 | 180,163 |
| 31 July | 31 January | ||
| 2025 | 2025 | ||
| Notes | £’000 | £’000 | |
| Non-current assets | |||
| Investments held at fair value through profit or loss | 134,163 | 143,920 | |
| Current assets | |||
| Amounts due from brokers | 1,427 | 2,404 | |
| Prepayments and accrued income | 512 | 435 | |
| Cash and cash equivalents | 94 | 2,472 | |
| Variation margin receivable | 210 | – | |
| Derivative assets | 168 | – | |
| 2,411 | 5,311 | ||
| Total assets | 136,574 | 149,231 | |
| Current liabilities | |||
| Amounts due to brokers | (225) | – | |
| Bank facility | – | (12,350) | |
| Accruals | (139) | (237) | |
| Dividends payable | (1,169) | – | |
| Collateral pledged | (210) | – | |
| Derivative liabilities | (125) | – | |
| (1,868) | (12,587) | ||
| Total assets less current liabilities | 134,706 | 136,644 | |
| Net assets | 134,706 | 136,644 | |
| Capital and reserves | |||
| Share capital | 9,965 | 9,965 | |
| Share premium | 22,366 | 22,366 | |
| Capital redemption reserve | 4,063 | 4,063 | |
| Capital reserve | 96,216 | 98,470 | |
| Revenue reserve | 2,096 | 1,780 | |
| Total shareholders’ funds | 134,706 | 136,644 | |
| Net asset value per ordinary share | 443.50p | 449.88p | |
| Number of ordinary shares in issue at the period end | 6 | 30,373,362 | 30,373,362 |
| Six months | Six months | ||
| ended | ended | ||
| 31 July | 31 July | ||
| 2025 | 2024 | ||
| Notes | £’000 | £’000 | |
| Cash flow from operating activities | |||
| Profit/(loss) before taxation | 1,449 | 21,900 | |
| Finance costs | 51 | 277 | |
| Adjustments for: | |||
| Purchases of investments | (72,708) | (15,495) | |
| Sales of investments | 83,169 | 17,427 | |
| Purchases of derivatives | (43) | – | |
| 10,418 | 1,932 | ||
| Loss/(profit) on investments held at fair value | 498 | (20,361) | |
| (Increase)/decrease in receivables | (77) | 46 | |
| (Decrease)/increase in payables | (98) | 186 | |
| Net cash inflow from operating activities | 12,241 | 3,980 | |
| Cash flow from financing activities | |||
| Finance cost paid | (51) | (277) | |
| Bank overdraft repayment | – | (8,753) | |
| Bank facility (repayment)/drawdown | (12,350) | 8,200 | |
| Dividends paid | 5 | (2,218) | (3,132) |
| Net cash outflow from financing activities | (14,619) | (3,962) | |
| Net (decrease)/increase in cash and cash equivalents | (2,378) | 18 | |
| Cash and cash equivalents at start of the period | 2,472 | – | |
| Cash and cash equivalents at the end of the period | 94 | 18 | |
| Reconciliation of cash and cash equivalents to the | |||
| Balance Sheet is as follows: | |||
| Cash held at custodian | 94 | 18 | |
| Cash and cash equivalents | 94 | 18 | |
| Cash flow from operating activities includes: | |||
| Dividends received | 2,242 | 2,868 | |
| Interest received | 2 | – |
| Six months | Six months | |
| ended | ended | |
| 31 July | 31 July | |
| 2025 | 2024 | |
| £’000 | £’000 | |
| Income from investments: | ||
| UK dividends | ||
| – ordinary | 2,102 | 2,643 |
| – special | 183 | 150 |
| – property income distribution | 110 | – |
| Overseas dividends | 17 | 62 |
| 2,333 | 2,855 | |
| Other income: | ||
| Deposit interest | 2 | – |
| Derivative income | 21 | – |
| Liquidity fund income | 25 | – |
| 2,381 | 2,855 |
| Six months ended | Six months ended | ||||
| 31 July 2025 | 31 July 2024 | ||||
| Rate | £’000 | Rate | £’000 | ||
| Dividends paid during the period: | |||||
| Third interim (prior year) | 3.85p | 1,170 | 3.85p | 1,302 | |
| Final (prior year) | 3.45p | 1,048 | 5.41p | 1,830 | |
| Total dividends paid | 7.30p | 2,218 | 9.26p | 3,132 | |
| Dividends payable in respect of the year: | |||||
| First interim | 3.85p | 1,169 | – | – | |
| Total dividends declared and paid | 11.15p | 3,387 | 9.26p | 3,132 | |
| 31 July | 31 January | |
| 2025 | 2025 | |
| Share capital: | ||
| Ordinary shares of 20p each (£’000) | 6,075 | 6,075 |
| Treasury shares of 20p each (£’000) | 3,890 | 3,890 |
| 9,965 | 9,965 | |
| Number of ordinary shares in issue: | 30,373,362 | 30,373,362 |
| Number of shares held in treasury: | 19,453,074 | 19,453,074 |
| Total | 49,826,436 | 49,826,436 |
| 31 July 2025 | 31 January 2025 | |||
| Asset | Liabilities | Asset | Liabilities | |
| £’000 | £’000 | £’000 | £’000 | |
| Level 1 | 134,163 | – | 143,920 | – |
| Level 2 | 168 | (125) | – | – |
| 134,331 | (125) | 143,920 | – | |