Baillie Gifford Shin - Annual Financial Report
31/03/2026 08:31
RNS Number : 7107Y
Baillie Gifford Shin Nippon PLC
30 March 2026
RNS Announcement
Baillie Gifford Shin Nippon PLC (BGS)
Legal Entity Identifier: X5XCIPCJQCSUF8H1FU83
Results for the year to 31 January 2026
The following is the results announcement for the year to 31 January 2026 which was approved by the Board on 30 March 2026.
Over the year to 31 January 2026, the Company's net asset value per share† increased by 5.4% and the share price by 14.4%, compared to a 21.5% increase for the comparative index*.
Over five years, the Company's comparative index* was up 42.4% while the net asset value per share† was down by 36.1% and the share price was down 43.8%.
¾ Investing for capital growth from Japanese smaller companies has continued to be challenging. High-growth, domestically oriented small caps, the focus of the portfolio, continue to be out of favour. Rising interest rates, a weak yen and significant valuation de-rating across small-cap growth stocks in Japan have further weighed on performance, despite many holdings continuing to grow top and bottom-line earnings strongly.
¾ While the recent period has further tested patience, the Board continues to believe the portfolio is invested in one of the most overlooked areas of global equity markets, with valuations at near decade lows and long-term growth opportunities intact; disciplined, long-term investment in high-quality Japanese smaller companies offers the potential for attractive capital growth over time.
¾ During the period, Brian Lum was promoted from deputy to being the Company's lead portfolio manager and Jared Anderson was appointed as deputy portfolio manager. Portfolio turnover for the financial year was 21.2%, with fifteen positions exited and eight new positions initiated. There are currently three private companies in the portfolio accounting for 1.8% of total assets.
¾ The Company's share price ended the period at a 7.5% discount to the NAV per share compared to a discount of 14.6% as at 31 January 2025. 34.2 million shares were bought back in the reporting period and are currently held in treasury.
¾ Revenue return per share was 0.77p (2025: 0.67p). The Board is recommending a final dividend of 0.69p per share (2025: 0.60p), being broadly the minimum required to maintain investment trust status.
¾ Since period end, shareholders have approved the replacement of the 15% one-off three-year performance-triggered tender (measured to 31 January 2027) with an immediate 15% tender, along with the introduction of a continuation vote in 2028 and a 100% performance-triggered tender measured over the five years to 31 December 2030.
¾ The annual management fee paid, with effect from 1 February 2026, will be 0.65% on the first £250m of the Company's net assets and 0.55% on the remainder.
† After deducting borrowings at fair value. For a definition of terms see Glossary of terms and Alternative Performance Measures at the end of this announcement.
* The Company's comparative index is the MSCI Japan Small Cap Index (total return and in sterling terms). See disclaimer at the end of this announcement.
Source: LSEG/Baillie Gifford and relevant underlying index providers. See disclaimer at the end of this announcement.
Shin Nippon aims to achieve long term capital growth through investment principally in small Japanese companies which are believed to have above average prospects for growth. At 31 January 2026 the Company had total assets of £428.9 million (before deduction of bank loans of £70.1 million).
The Company is managed by Baillie Gifford, an Edinburgh based fund management group with approximately £183 billion under management and advice as at 26 March 2026.
Past performance is not a guide to future performance. The value of an investment and any income from it is not guaranteed and may go down as well as up and investors may not get back the amount invested. The Company has borrowed money to make further investments. This is commonly referred to as gearing. The risk is that, when this money is repaid by the Company, the value of these investments may not be enough to cover the borrowing and interest costs, and the Company makes a loss. If the Company's investments fall in value, gearing will increase the amount of this loss. The more highly geared the Company, the greater this effect will be.
Investment in investment trusts should be regarded as long term. You can find up to date performance information about Shin Nippon at shinnippon.co.uk.
31 March 2026
For further information please contact:
Anzelm Cydzik, Baillie Gifford & Co
Tel: 0131 275 2000
Jonathan Atkins, Director, Four Communications
Tel: 0203 920 0555 or 07872 495396
Chair's statement
Performance
Despite achieving positive absolute returns, I am sorry to report that over the twelve months to 31 January 2026, the Company's poor relative performance has continued. Net asset value total return was 5.4%* and the share price total return was 14.4%. The MSCI Japan Small Cap Index (total return in sterling terms) increased by 21.5%.
Investing for capital growth from Japanese smaller companies has continued to be challenging. The portfolio's focus on high-growth, domestically-oriented small caps has been out of favour as value stocks, large exporters and AI-related mega-caps have dominated returns in Japan. Rising interest rates, a weak yen and significant valuation de-rating across small-cap growth stocks in Japan have further weighed on performance, despite many holdings continuing to grow earnings strongly.
Mistakes have certainly been made. Following challenge from the Board, and open constructive dialogue with the Managers, lessons have been learnt. Past portfolio construction underestimated correlations between certain growth holdings, exacerbating the impact of market-wide de-rating and a shrinking opportunity set at the point of initial investment. As covered in my interim statement, the investment process has been refined to reflect these insights, along with accessing a broadened opportunity set at point of initial investment, improved position sizing and a sharper focus on resilience as well as growth.
While the recent period has further tested patience, the Board continues to believe the portfolio is invested in one of the most overlooked areas of global equity markets, with valuations at near decade lows and long-term growth opportunities intact.
Portfolio managers
In May 2025, Brian Lum was promoted from deputy portfolio manager to lead portfolio manager, replacing Praveen Kumar. Jared Anderson was also appointed deputy portfolio manager. While remaining committed to their long-term investment approach, Brian and Jared have made a number of changes to the portfolio since their appointment. These changes reflect their views of the best Japanese small cap growth companies and take advantage of the changes to the Company's investment policy announced in 2025, which broadened the investable universe to reflect the opportunity set. Since then, there have been five positions initiated in companies with market capitalisation in excess of ¥150 billion (the upper restriction prior to the changes to the investment policy) and eleven complete exits, including Moneytree, which was an unquoted holding. In addition, there have been significant changes to the size of a number of existing holdings with position sizing forming an important element of the portfolio review.
Further details on the transactions, current portfolio positioning and prospects for the portfolio are contained within the portfolio managers' report.
15% Tender, Continuation Vote in 2028 and 100% Performance Triggered Tender
During the final quarter of 2025, the Board undertook a consultation exercise with shareholders representing in excess of 43% of the Company's issued share capital. While those shareholders shared the Board's frustration with the continued poor performance, many recognised the unique opportunity offered by the Company, being the only investment trust offering dedicated exposure to small cap growth companies in Japan, and were supportive of the mandate continuing to be pursued. They, and the Board, also believed that the incumbent portfolio managers should be given an appropriate amount of time to demonstrate the efficacy of the changes made to the portfolio.
Consequently, and looking to balance the views of different shareholders, the Board sought and, on the 18 February 2026, obtained shareholder approval to: undertake a tender offer for up to 15% of the Company's issued share capital in Q1 2026; remove the 2027 performance triggered conditional tender offer for up to 15% of the Company's issued share capital; introduce a performance triggered tender offer for up to 100% of the Company's issued share capital, which will be undertaken if the Company's net asset value total return does not equal or exceed the total return on the MSCI Japan Small Cap Index (in sterling terms) over the five year period from 31 December 2025 to 31 December 2030; and put a one-off continuation vote to shareholders in 2028.
The 15% tender offer has taken place and was oversubscribed, with 49.8% of the Company's issued share capital tendered. On 20 March 2026, payments were made, in lieu of the tendered shares, through CREST and cheques despatched to certified shareholders.
Ongoing Charges and Management Fee
The Company's ongoing charges ratio for the year was 0.81% compared to 0.80% last year.
It has been agreed with the Managers that the annual management fee paid, with effect from 1 February 2026, will be 0.65% on the first £250m of the Company's net assets and 0.55% on the remainder. It had previously been 0.75% on the first £50m of net assets, 0.65% on the next £200m of net assets and 0.55% on the remainder.
Buybacks and Discount
Following shareholder approval at last year's Annual General Meeting ('AGM'), in August 2025 the Scottish Court of Session approved the Company's application to cancel its share premium account and the creation of an equivalent Distributable Capital Reserve of £260.3 million. This provides a significant pool of reserves which can be used to fund distributions, including dividends, and returns of capital, such as tender offers and share buybacks.
As at 31 January 2026, the Company's share price stood at a 7.5% discount to the NAV per share compared to 14.6% as at 31 January 2025. Over the financial year, the Company has bought back approximately 34.2 million shares, which are held in treasury, equivalent to approximately 12.2% of the Company's issued share capital. Since then and excluding the shares bought back as part of the recent 15% unconditional tender, a further 2.8 million shares have been purchased. The Board will continue to authorise the use of buy backs if the discount to NAV is substantial in absolute terms or in relation to its peers.
Borrowings
The Company has a ¥16.1bn secured revolving credit facility with Bank of America, which matures in November 2027. At present, ¥14.84bn is drawn, compared to ¥16.1bn a year ago, with net gearing standing at 14.9% as at 31 January 2026 compared to 16.1% a year earlier.
Dividend
Revenue return per share was 0.77p compared to 0.67p the prior year. The Board is recommending a final dividend of 0.69p per share (0.60p - 2025), being broadly the minimum required to maintain investment trust status. The proposed final dividend will be put before shareholders as part of the Company's AGM business in May. I should add that, as the Company's focus is on capital growth, shareholders should not rely on their investment in the Company to provide any income.
Annual General Meeting
This year's AGM will take place on Thursday 21 May 2026 at the ICAEW, Chartered Accountants' Hall, 1 Moorgate Place, London EC2R 6EA commencing at 11.30am. The AGM is an important opportunity for engagement, giving shareholders the chance to meet and ask questions of the Directors and the portfolio managers, and vice versa. I very much hope to see as many of you there as possible.
Outlook
During the year, the Board undertook its triennial trip to Japan. The trip allows the Directors to assess the portfolio managers in action first hand, along with the quality of current and potential investments. It also provides an insight to the mood on the ground of management teams, providing a useful perspective. Utilising a twin-track approach, the Directors met with a total of 35 companies in aggregate over the course of five days.
Based in part on the learnings from this trip, despite a prolonged period of weak sentiment and challenging market conditions, it appears that the outlook for long-term capital growth from investments in Japanese smaller companies remains attractive. Growth investing and domestically oriented small caps have been out of favour, particularly amid a weaker yen, rising interest rates and a strong market preference for value stocks. However, the Board and Managers believe this backdrop remains a compelling opportunity for patient investors.
Japan is confronting structural pressures that are driving meaningful change. Labour shortages, demographic challenges and entrenched inefficiencies are forcing companies to rethink how they operate. Smaller, more entrepreneurial businesses are often best placed to respond, using digitalisation, automation and new technologies to improve productivity and scale their businesses. Artificial intelligence, in particular, is emerging as a powerful enabler across a wide range of sectors, helping companies remove bottlenecks and expand growth potential.
The Japanese small-cap universe remains broad and underexplored, offering access to specialist businesses operating in niche markets, often protected by local regulation, culture or technical expertise. Many portfolio companies are delivering growth well ahead of the broader market, yet valuations remain depressed following an extended period of de-rating.
Despite the troubled times we live in and the current market volatility, the Board remains confident that disciplined, long-term investment in high-quality Japanese smaller companies offers the potential for attractive capital growth over time.
Jamie Skinner
30 March 2026
* After deducting borrowings at fair value. For a definition of terms see Glossary of terms and Alternative Performance Measures at the end of this announcement.
Source: LSEG/Baillie Gifford and relevant underlying index providers. See disclaimer at the end of this announcement.
Past performance is not a guide to future performance.
Managers' report
In May 2025, Jared Anderson and I became the respective new deputy and lead portfolio managers for Baillie Gifford Shin Nippon. Given the portfolio's poor performance in recent times, we are under no illusion regarding the challenge that awaits us, and we acknowledge that shareholders' patience has been severely tested.
We have subsequently reviewed the portfolio comprehensively, implemented modifications to the portfolio construction process, and made numerous changes to the portfolio. What remains unchanged though, is our fundamental commitment to invest in a portfolio of high growth smaller companies in Japan with a genuinely long-term mindset, and we are optimistic in our prospects given the underlying operating performance of the portfolio companies and the attractive valuations on offer.
Annual review
While it gives us some comfort to see Shin Nippon deliver its first positive annual NAV (and share price) returns for 5 years, we are nevertheless acutely aware of the scale of our underperformance relative to the MSCI Japan Small Cap ('MXJPSC') index in the past 12 months, a period during which the portfolio continued to face heavy stylistic headwinds.
The increasing interest rate in Japan meant growth stocks' intrinsic valuations suffered as future profits are discounted more heavily. In addition, the ongoing push for corporate governance reform, where companies are heavily encouraged to place more emphasis on shareholder returns, has given the strongest share price boost to Japan's most poorly run listed companies. Faced with pressure from the regulators and activist investors, many such companies have responded by unwinding cross shareholdings and announcing record buybacks and dividends. A portfolio built around high growth, typically better-managed businesses did not benefit to the same degree.
The result is that value stocks overwhelmingly outperformed growth stocks in the past year - to give an illustration of this dynamic, MSCI Japan Value outperformed MSCI Japan Growth by 15 percentage points in the calendar year 2025 - and Shin Nippon is positioned much further along the growth spectrum than Japan's growth indices.
The other headwind is the weak yen, which, despite some strengthening during the summer of 2025, subsequently returned to near historic lows relative to the dollar as the market reacted to the election of Sanae Takaichi as Japan's prime minister in October. Our portfolio is skewed towards domestic growth companies, which typically suffer as a weak yen stimulates cost inflation and hurts domestic consumption.
On a more anecdotal note, the level of interest towards individual Japanese small caps from institutional investors remains low. As someone who has met Japanese companies regularly at our Edinburgh office for a decade, it is striking to me that most visiting Japanese small companies have struggled to secure any other investor meetings in the past year - this was not the case in the past. Related to this, executives (including those for our holdings) are often genuinely puzzled (rather than apologetic) by their company's weak share price. To patient investors like us, these reactions are illuminating. Indeed, we derive confidence by observing the strong fundamentals of our portfolio companies. Delivered and expected growth for Shin Nippon's portfolio companies continue to be far superior to that of the comparative index, both in terms of revenues and profits. For example, market estimates suggest that the portfolio will grow sales and earnings by 12.9% and 18.6% respectively on a one-year forward basis. The equivalent figures for the comparative index are 3.5% and 11.8%. Longer term projections show a similar dynamic. In the meantime, the portfolio continues to trade at a valuation discount in terms of EV/EBIT multiple (Enterprise Value/Earnings Before Interest and Tax); 11.1x for the portfolio vs 12.5x for the comparative index.
Process Improvements
While we remain true to our growth and long-term orientation, we also recognise that mistakes have been made in recent years. For example, with the benefit of hindsight, the portfolio was invested in too many stocks that were driven by a narrow set of growth drivers (such as digitalisation), and the subsequent correlated derating (deserved or not) hurt. The weighting of a stock in the portfolio should be commensurate with its potential upside, the absolute downside risk and its correlation with the rest of the portfolio.
With these in mind, we have implemented a position sizing framework which divides our portfolio companies into four types of growth profiles (Emerging Prospects, Rapid Scalers, Cyclical Gainers, and Proven Winners); and three tiers of conviction levels, as shown by the table below.
The four growth profiles give a sense of a company's level of maturity and absolute risk profile. Emerging Prospects are companies with unproven business models, and sometimes in the loss-making or even pre-revenue phase. These are high risk, high impact investments that should be small positions. The next category along the maturity spectrum is Rapid Scalers - these typically founder-led companies are at the most exciting stage of scaling into what are still immature markets, and this category can be thought of as the engine room of the portfolio. Then we have Cyclical Gainers, established companies which enjoy structural growth tailwinds, but nevertheless operate in viciously cyclical industries (such as semiconductors or capital equipment) where a degree of caution on position sizing is warranted. Finally, we have Proven Winners, which are above-average growth companies with proven business models, strong market positions, and decent or improving financials. These are the larger positions. Jared and I monitor the portfolio on a regular basis using this framework as a guideline - corporate developments, further investment research, or share price movements may prompt us to re‑evaluate a stock's growth classification, our conviction levels, and therefore the optimal portfolio weighting.
This process helps us 1) sharpen our research and engagement efforts (each growth profile demands a different focus), 2) improve buy & sell discipline, and 3) also enables us to systematically recognise the growth milestones of our companies (e.g. is this Rapid Scaler now a Proven Winner?). As growth investors, we will never lose sight of the possibility of unearthing the next megacaps - having a framework that recognises this is a part of this.
Additionally, we have been working more closely with our internal risk team and adopted various risk tools to monitor portfolio correlations and risk factors better. Our primary focus daily remains centred around picking the best growth stocks. However, we believe these additional considerations will lead to better aggregate performance outcomes in the long-term.
Portfolio updates
There are several broad directions to highlight. Firstly, we have taken advantage of our new ability to invest in companies with market capitalisation of above ¥150b. New buys Seiko Group (the watch company, a 'Proven Winner'), JMDC (a healthcare big data company, a 'Rapid Scaler'), Kasumigaseki Capital (a real estate company with an unusual asset light business model, also a 'Rapid Scaler'), DMG Mori (a leading high precision machine tools company, a 'Cyclical Gainer'), and Money Forward (a cloud-based software company that automates back office workflow such as accounting, another 'Rapid Scaler') are all such examples. We have long admired some of these names and believe these are all exciting investment cases individually. At a portfolio level, historically we have displayed a significant bias towards the small end of the comparative index. While we expect this stylistic tilt to remain given our growth style, these latest additions have incrementally narrowed our difference to the benchmark.
More importantly, they represent a diverse range of growth profiles, driven by different themes. For example, the investment case for Seiko Group hinges on structural premiumisation of its product mix, which is shifting gradually from affordable battery watches to luxury Grand Seiko timepieces which retail for over £5,000. Kasumigaseki Capital - the real estate development company - focuses on specific niches such as cold chain storage and group stay hotels in Japan and beyond, opportunities with esoteric dynamics which the innovative management team has identified. DMG Mori - a result of a historic merger between a Japanese company and a German company - is not only a play on factory automation but also offers a degree of exposure to the growing aerospace and defence sector in Europe and Japan.
Concurrent with implementing the position sizing framework articulated above, we have also made the decision to exit several positions that do not make the cut in terms of conviction levels. Some were successful investments where we felt significant future upside was unlikely - these include long‑term holding MonotaRO (the B2B e-commerce company) and MatsukiyoCocokara (the pharmacy chain). Others were investment cases that have not developed as we had hoped, such as Kumiai (the agricultural chemicals company), Avex (the entertainment agency), Cellsource (a regenerative medicine company) and Demae-Can (the food delivery platform). Another is oRo (a Software-as-a-Service company) which correlated highly with other similar holdings in the portfolio, but one we felt may be less resilient to potential AI disruptions in the long-term. Two holdings, TechnoPro (IT consultancy) and Moneytree (unlisted fintech), were acquired by third parties during the year, resulting in the Fund exiting these positions.
The number of stocks in the portfolio has reduced to 63 as at the end of the Company's financial year, approaching the 50-60 holding range which we see as the optimal on an ongoing basis in terms of research depth and more meaningful corporate engagement. There are currently three private companies held, accounting for 1.8% of the portfolio. Our experience of investing in private companies has in aggregate been poor and it is likely that the main area of our focus for the foreseeable future will be on listed companies.
Beyond new buys and complete exits, we have adjusted existing positions to align with the framework discussed above. Most of the changes are down to individual bottom-up factors, but one noteworthy theme is of course the rise of Artificial Intelligence (AI). Japanese Small Caps may not be the first place to look for AI winners, but this is precisely the opportunity. Over the past year, we have added to the likes of JEOL and Kohoku Kogyo. These are just two examples amongst a group of 'Hidden AI Champions' in the portfolio - low profile companies with strong market positions that either supply into the AI supply chain or address AI-induced bottlenecks. For example, while JEOL is better known for selling microscopes to universities, it is also the global leader in Multi-Beam Mask Writers - an essential piece of equipment used in the production of the world's most advanced semiconductor chips. Kohoku Kogyo is the dominant producer of 'optical isolators' - a mission critical component deployed in subsea communication cables that are also used by datacentres - which is the company's second most important product in revenue terms but serves as its key profit driver. These are not well-known companies for global investors seeking to gain exposure to the AI theme, and we believe they are underappreciated by the market.
The portfolio segmented by growth profiles can be found on page 42 of the Annual Report and Financial Statements. The company's net gearing decreased marginally to 15%.
Performance
For the year ended 31 January 2026, Shin Nippon's NAV total return increased by 5.4% compared to an increase of 21.5% in the comparative index (all figures total return and in sterling terms, NAV with borrowings at fair value). Over three and five years, the Company's NAV (total return) has declined by 14.9% and 36.1% compared to an increase of 40.7% and 42.4% respectively for the comparative index.
For the year, Tsugami was our top contributor. Tsugami (a Cyclical Gainer) is a precision machine-tool maker founded in 1937, best known for products such as automatic lathes and precision grinding machines. It entered the Chinese market in the 1990s and today derives most of its sales through its listed Chinese subsidiary Precision Tsugami. While automotive is the key industry for Tsugami, it is also exposed to emerging fields such as humanoid robotics and AI infrastructure, which helped drive strong profit growth in the past year. In recent years, it has started to invest aggressively in India, which it sees as the next key growth market for the company, potentially following Precision Tsugami's trajectory in the long run.
Raksul - the procurement and marketing platform targeting small businesses in Japan - was also a significant positive contributor to portfolio performance. We have invested in Raksul since its IPO in 2018, and it has since achieved sales CAGR of over 27% (and profits ahead of that). Shares jumped in December following the announcement that the management and Goldman Sachs proposed to take the company private at ¥1710, a 37% premium relative to the pre-announcement share price. We believe the tender offer price of ¥1710 severely undervalues the company. We have voiced our opposition both with the Board of Directors, as well as publicly. The tender offer price has since been increased to ¥1900 and is set to go through at time of writing in March 2026. This case highlights 1) the tremendous value that can found in the small cap growth space, and 2) the premature 'acquisition risk' for some of the best growth companies in the universe.
Inforich was our biggest detractor to performance. Inforich (an `Emerging Prospect'), a start-up best known for its network of over 80k mobile battery rental stations globally, delivered sales growth and operational profit growth of 35% and 24% respectively in 2025, and is in an early phase of overseas expansion. These are highly respectable numbers, even if they fall short of the company's own ambitions a year ago. Unfortunately, the mix of below-plan growth and its small market capitalisation (which deterred most institutional investors) has led to a sharp decline in its share price. As of March 2026, a tender offer is in progress that will see Bain Capital take Inforich private at ¥4560 per share, more than double the company's share price before the tender offer announcement.
Given the broader market environment, it is no surprise that the second biggest performance detractor was another high growth company. Appier, founded in 2012 by a team of AI scientists, delivers Software-as-a-Service that helps its business clients find and keep customers - think of Appier's AI tools as the brains to their clients' marketing department if you will. The effectiveness of Appier's offering enabled it to consistently deliver strong growth along with positive and rising profitability. In 2025, it delivered strong sales growth of 28% (32% on a FX neutral basis) and operating income growth of 50%. Despite these encouraging results, the shares have declined due to concerns about its growth investments and general weak sentiment toward software companies based on AI disruption. While we acknowledge the dynamism and unpredictability of the AI landscape, we believe Appier's prospects are still underestimated by the market.
Concluding remarks
As the new lead portfolio manager for Shin Nippon, which has now gone through a prolonged period of severe underperformance, it is natural to reflect on the validity of my and Jared's investment approach in this market and why we remain hugely excited by growth investing in the Japan Small Cap universe, despite our performance difficulties.
Firstly, Japan is a market that faces huge structural issues: ageing demographics; a shrinking workforce; and, persistently low labour productivity. These are well-documented challenges, but for growth investors and innovative companies (including many portfolio holdings), they represent enormous opportunities to scale into. For me, this is a far more enticing long-term investment prospect than aiming for a one-off capital efficiency uplift that has driven the returns of value stocks in recent times, especially after a period of dramatic performance differential between growth and value.
Secondly, we acknowledge that growth companies in Japan have not historically scaled as rapidly as other innovative companies in the US or even Europe. One typical bottleneck is human resources. It is hard to hire enough top talent when employment for life is the norm and when the population is shrinking. This challenge may be falling away, as we are seeing shifts in attitudes towards employment amongst the younger generation. Then there is AI. AI may be seen as a job-killer in some markets; in Japan, AI adoption is necessary and can potentially be a catalyst for the elusive much needed jump in productivity. Japan may not be an AI superpower like the US or China, but it could be one of the biggest AI beneficiaries. Encouragingly, the Japanese government recognises this.
Having stated earlier how higher interest rates are hurting growth companies' valuations, there is a silver lining here. That capital now carries a cost should benefit those that can deploy it most effectively - i.e. high-quality growth companies. At one end of the spectrum, weak companies sustained historically by zero-cost debt may struggle and eventually exit, freeing up societal resources. At the other end, those that provide the best products and services will be able to exercise pricing power more easily in an environment where inflation has finally taken hold after decades of deflation.
Similarly, ongoing corporate reforms benefit the whole market, as painful as that has been for us in relative terms. A more competitive and dynamic market should increase the chances of world class growth companies emerging again from Japan - this is exciting for growth investors in the long run.
I am hugely energised by the opportunity set as a growth investor, and excited by what our portfolio can achieve in the coming years. We have companies that are addressing large growing market opportunities, often with strong competitive edge (as demonstrated by superior financials), and led by aligned and ambitious management. Nearly 80% of the companies have founder/founding family involvement. Many of these are deeply overlooked in an era of factor investing, and the pipeline of ideas is equally rich and compelling.
In the short term, we are mindful of the crisis in the Middle East. Japan's economy is particularly vulnerable given its reliance on energy imports, and a prolonged conflict raises the prospect of stagflation in Japan. Despite the troubling headlines, we believe that our portfolio is relatively resilient given our bias towards fast moving domestically orientated companies. We will monitor the situation closely and adjust the portfolio accordingly.
We would like to thank our shareholders for their continued support and patience. Jared and I will do our utmost to deliver the returns that Shin Nippon shareholders deserve in the coming years.
Brian Lum
For a definition of terms see Glossary of terms and Alternative Performance Measures at the end of this announcement.
Baillie Gifford - valuing private companies
We hold our private company investments at an estimation of 'fair value', i.e. the price that would be paid in an open-market transaction. Valuations are adjusted both during regular valuation cycles and on an ad hoc basis in response to 'trigger events'. Our valuation process ensures that private companies are valued in both a fair and timely manner.
The valuation process is overseen by a valuations group at Baillie Gifford, which takes advice from an independent third party (S&P Global). The valuations group is independent from the investment team, as well as Baillie Gifford's Private Companies Specialist team, with all voting members being from different operational areas of the firm, and the investment managers only receive final valuation notifications once they have been applied.
We revalue the private holdings on a three-month rolling cycle, with one-third of the holdings reassessed each month. During stable market conditions, and assuming all else is equal, each investment would be valued four times in a twelve‑month period. Regarding the Trust's private portfolio, the prices are also reviewed twice per year by the respective boards and are subject to the scrutiny of external auditors in the annual audit process.
Beyond the regular cycle, the valuations group also monitors the portfolio for certain `trigger events'. These may include changes in fundamentals, a takeover approach, an intention to carry out an Initial Public Offering (`IPO'), company news which is identified by the valuation team or by the portfolio managers, or meaningful changes to the valuation of comparable public companies. Any ad hoc change to the fair valuation of any holding is implemented swiftly and reflected in the next published net asset value ('NAV'). There is no delay.
The valuations team also monitors relevant market indices on a weekly basis and updates valuations in a manner consistent with our external valuer's (S&P Global) most recent valuation report where appropriate.
The valuation movements in the year have been summarised below, pricing in the continued challenging market backdrop, coupled with some positive performance within the private portfolio.
| Average movement in company valuation | Average movement in price of share class held | |
| Shin Nippon* | 47.2% | 39.1% |
| Valuation | £17,774,000 |
| % of total assets* | 4.1% |
| Valuation at 31 January 2025 | £10,224,000 |
| % of total assets at 31 January 2025 | 2.2% |
| Net purchases/(sales) in year to 31 January 2026 | £118,000 |
| Held since | 2019 |
| Valuation | £17,333,000 |
| % of total assets* | 4.0% |
| Valuation at 31 January 2025 | £11,479,000 |
| % of total assets at 31 January 2025 | 2.4% |
| Net purchases/(sales) in year to 31 January 2026 | £692,000 |
| Held since | 2018 |
| Valuation | £14,042,000 |
| % of total assets* | 3.3% |
| Valuation at 31 January 2025 | £12,617,000 |
| % of total assets at 31 January 2025 | 2.7% |
| Net purchases/(sales) in year to 31 January 2026 | £1,567,000 |
| Held since | 2013 |
| Valuation | £12,198,000 |
| % of total assets* | 2.8% |
| Valuation at 31 January 2025 | £12,372,000 |
| % of total assets at 31 January 2025 | 2.6% |
| Net purchases/(sales) in year to 31 January 2026 | £530,000 |
| Held since | 2020 |
| Valuation | £11,812,000 |
| % of total assets* | 2.8% |
| Valuation at 31 January 2025 | £11,906,000 |
| % of total assets at 31 January 2025 | 2.5% |
| Net purchases/(sales) in year to 31 January 2026 | (£1,946,000) |
| Held since | 2015 |
| Valuation | £11,332,000 |
| % of total assets* | 2.6% |
| Valuation at 31 January 2025 | £7,917,000 |
| % of total assets at 31 January 2025 | 1.7% |
| Net purchases/(sales) in year to 31 January 2026 | £2,617,000 |
| Held since | 2022 |
| Valuation | £10,652,000 |
| % of total assets* | 2.5% |
| Valuation at 31 January 2025 | £12,625,000 |
| % of total assets at 31 January 2025 | 2.7% |
| Net purchases/(sales) in year to 31 January 2026 | (£1,450,000) |
| Held since | 2022 |
| Valuation | £10,521,000 |
| % of total assets* | 2.4% |
| Valuation at 31 January 2025 | £14,465,000 |
| % of total assets at 31 January 2025 | 3.1% |
| Net purchases/(sales) in year to 31 January 2026 | (£6,447,000) |
| Held since | 2017 |
| Valuation | £10,434,000 |
| % of total assets* | 2.4% |
| Valuation at 31 January 2025 | £10,334,000 |
| % of total assets at 31 January 2025 | 2.2% |
| Net purchases/(sales) in year to 31 January 2026 | £52,000 |
| Held since | 2024 |
| Valuation | £10,177,000 |
| % of total assets* | 2.4% |
| Valuation at 31 January 2025 | £11,033,000 |
| % of total assets at 31 January 2025 | 2.3% |
| Net purchases/(sales) in year to 31 January 2026 | £2,816,000 |
| Held since | 2012 |
| Valuation | £2,334,000 |
| % of total assets* | 0.5% |
| Valuation | £5,525,000 |
| % of total assets* | 1.3% |
| Valuation | £3,129,000 |
| % of total assets* | 0.7% |
| Valuation | £5,212,000 |
| % of total assets* | 1.2% |
| Valuation | £9,001,000 |
| % of total assets* | 2.1% |
| Valuation | £3,638,000 |
| % of total assets* | 0.8% |
| Valuation | £1,113,000 |
| % of total assets* | 0.3% |
| Valuation | £5,144,000 |
| % of total assets* | 1.2% |
| % of total assets* | 0.7% |
| % of total assets* | 1.8% |
| % of total assets* | 1.6% |
| % of total assets* | 3.3% |
| Meeting | 2025 Annual General Meeting |
| Vote | Abstain |
| % of total assets* | 1.2% |
| Meeting | 2025 Annual General Meeting |
| Vote | Abstain |
| % of total assets* | 2.6% |
| Meeting | 2025 Annual General Meeting |
| Vote | Against |
| Name | Business | 2026 Value £'000 | % of total assets # | Absolute † performance % | 2025 Value £'000 |
| Tsugami | Manufacturer of automated machine tools | 17,774 | 4.1 | 80.2 | 10,224 |
| Raksul | Internet based services | 17,333 | 4.0 | 36.2 | 11,479 |
| JEOL | Manufacturer of scientific equipment | 14,042 | 3.3 | (0.5) | 12,617 |
| GA Technologies | Interactive media and services | 12,198 | 2.8 | (7.0) | 12,372 |
| Yonex | Sporting goods | 11,812 | 2.8 | 42.3 | 11,906 |
| Kohoku Kogyo | Manufacturer of undersea cable lead terminals | 11,332 | 2.6 | 8.0 | 7,917 |
| SWCC | Electric wire and cable manufacturer | 10,652 | 2.5 | 41.2 | 12,625 |
| Katitas | Real estate services | 10,521 | 2.4 | 30.3 | 14,465 |
| Gift | Food industry operator and distributor | 10,434 | 2.4 | 1.7 | 10,334 |
| Harmonic Drive Systems | Robotic components | 10,177 | 2.4 | (30.8) | 11,033 |
| Lifenet Insurance | Online life insurance | 9,605 | 2.2 | (6.5) | 14,347 |
| Nifco | Value-added plastic car parts | 9,241 | 2.2 | 19.3 | 12,886 |
| Mani* | Manufactures medical goods and equipment | 9,001 | 2.1 | 20.9 | - |
| Vector | PR Company | 8,851 | 2.1 | 30.6 | 8,367 |
| Horiba | Manufacturer of measuring instruments | 8,669 | 2.0 | 73.6 | 6,889 |
| KH Neochem | Chemical manufacturer | 8,639 | 2.0 | 14.0 | 3,011 |
| Megachips | Electronic components | 8,191 | 1.9 | 35.6 | 13,318 |
| Cosmos Pharmaceuticals | Drugstore chain | 8,137 | 1.9 | (12.6) | 8,755 |
| Seria | Discount retailer | 8,125 | 1.9 | 28.5 | 6,136 |
| eGuarantee | Guarantees trade receivables | 7,993 | 1.9 | (7.4) | 4,683 |
| Top 20 | 212,727 | 49.5 | |||
| Toyo Tanso | Electronics company | 7,883 | 1.8 | 26.9 | 6,165 |
| Appier Group | Software as a service company providing AI platforms | 7,826 | 1.8 | (41.7) | 11,679 |
| Optex | Infrared detection devices | 7,677 | 1.8 | 35.2 | 6,622 |
| Bengo4.com | Online legal consultation | 7,615 | 1.8 | (5.3) | 7,226 |
| Kitz | Industrial valve manufacturer | 7,230 | 1.7 | 60.8 | 5,044 |
| Anicom | Pet insurance provider | 6,987 | 1.6 | 49.0 | 7,395 |
| Nakanishi | Dental equipment | 6,783 | 1.6 | (21.6) | 9,947 |
| Sho-Bond | Infrastructure reconstruction | 6,712 | 1.6 | 3.8 | 7,560 |
| Asahi Intecc | Specialist medical equipment | 6,548 | 1.5 | (10.1) | 4,501 |
| Nikkiso | Industrial pumps and medical equipment | 6,426 | 1.5 | 62.6 | 4,716 |
| Infomart | Internet platform for restaurant supplies | 6,352 | 1.5 | 27.3 | 10,886 |
| Global Security Experts | Cyber Security Company | 5,989 | 1.4 | 14.5 | 5,273 |
| Litalico | Provides employment support and learning support services for people with disabilities | 5,693 | 1.3 | (1.7) | 4,211 |
| DMG Mori* | Machine tool manufacturer | 5,525 | 1.3 | (21.9) | - |
| Peptidream | Drug discovery and development platform | 5,490 | 1.3 | (33.8) | 9,907 |
| Kasumigaseki Capital* | Real estate developer and management services | 5,212 | 1.2 | (24.1) | - |
| Shinnihon* | Construction company and real estate developer | 5,144 | 1.2 | 18.8 | - |
| Soracom | Networking software provider | 5,128 | 1.2 | (16.8) | 2,185 |
| Gojo & Company Inc OrdU | Diversified financial services | 5,112 | 1.2 | (15.5) | 6,050 |
| Anest Iwata | Manufactures compressors and painting machines | 4,650 | 1.1 | 15.2 | 11,060 |
| GMO Financial Gate | Face-to-face payment terminals and processing services | 4,612 | 1.1 | (28.3) | 7,140 |
| OSG | Manufactures machine tool equipment | 4,504 | 1.1 | 43.2 | 4,148 |
| Cybozu | Develops and markets internet and intranet application software for business | 4,497 | 1.0 | (20.5) | 9,389 |
| I-Ne | Hair care range | 4,303 | 1.0 | (42.1) | 6,991 |
| Noritsu Koki | Holding company with interests in biotech and agricultural products | 4,158 | 1.0 | 25.7 | 10,360 |
| Istyle | Beauty product review website | 4,136 | 1.0 | (21.5) | 6,598 |
| Kamakura Shinsho | Information processing company | 4,104 | 1.0 | 6.4 | 4,829 |
| Nittoku | Coil winding machine manufacturer | 3,871 | 0.9 | 3.0 | 7,119 |
| Shoei | Manufactures motor cycle helmets | 3,774 | 0.9 | (23.2) | 7,463 |
| Money Forward* | Accounting and back office software company | 3,638 | 0.8 | (17.8) | - |
| Weathernews | Weather information services | 3,323 | 0.8 | 6.6 | 3,057 |
| Oisix | Organic food website | 3,313 | 0.8 | (12.4) | 5,987 |
| GMO Payment Gateway | Online payment processing | 3,174 | 0.7 | (0.1) | 3,351 |
| INFORICH | Software Company | 3,167 | 0.7 | (62.2) | 9,831 |
| JMDC* | Medical statistics data services | 3,129 | 0.7 | (21.6) | - |
| SpiderPlus | Construction project management platform | 2,872 | 0.7 | (31.0) | 4,263 |
| Genda | Operates as a holding company for entertainment businesses | 2,699 | 0.6 | (58.4) | 659 |
| Nippon Ceramic | Electronic component manufacturer | 2,490 | 0.6 | 46.0 | 1,181 |
| JEPLANU | Chemical PET recycling | 2,459 | 0.6 | 194.9 | 834 |
| COVER* | An entertainment agency that manages content creators known as Vtubers ('virtual Youtubers') | 2,334 | 0.5 | (42.3) | - |
| Crowdworks | Crowd sourcing services | 1,225 | 0.3 | (44.6) | 3,597 |
| Seiko* | Vertically integrated manufacturer of watches, and various electronic devices | 1,113 | 0.3 | 6.3 | - |
| SpiberU | Textiles | - | - | (100.0) | 1,030 |
| Total investments | 411,604 | 96.0 | |||
| Net liquid assets# | 17,324 | 4.0 | |||
| Total assets# | 428,928 | 100.0 | |||
| Bank loans | (70,105) | (16.3) | |||
| Shareholders' funds | 358,823 | 83.7 |
| Listed equities % | Private company investments % | Net liquid assets † % | Total assets † % | |
| 31 January 2026 | 94.2 | 1.8 | 4.0 | 100.0 |
| 31 January 2025 | 93.8 | 1.9 | 4.3 | 100.0 |
| Notes | 2026 Revenue £'000 | 2026 Capital £'000 | 2026 Total £'000 | 2025 Revenue £'000 | 2025 Capital £'000 | 2025 Total £'000 | |
| Gains/(losses) on investments | 9 | - | 5,584 | 5,584 | - | (34,865) | (34,865) |
| Currency gains | 13 | - | 5,321 | 5,321 | - | 2,415 | 2,415 |
| Income | 2 | 7,052 | - | 7,052 | 7,389 | - | 7,389 |
| Investment management fee | 3 | (2,270) | - | (2,270) | (2,482) | - | (2,482) |
| Other administrative expenses | 4 | (889) | - | (889) | (714) | - | (714) |
| Net return before finance costs and taxation | 3,893 | 10,905 | 14,798 | 4,193 | (32,450) | (28,257) | |
| Finance costs of borrowings | 5 | (1,208) | - | (1,208) | (1,465) | - | (1,465) |
| Net return before taxation | 2,685 | 10,905 | 13,590 | 2,728 | (32,450) | (29,722) | |
| Tax on ordinary activities | 6 | (704) | - | (704) | (739) | - | (739) |
| Net return after taxation | 1,981 | 10,905 | 12,886 | 1,989 | (32,450) | (30,461) | |
| Net return per ordinary share | 7 | 0.77p | 4.22p | 4.99p | 0.67p | (10.97p) | (10.30p) |
| Note:Dividends per share payable and paid in respect of the year | 8 | 0.69p | 0.60p |
| Notes | 2026 £'000 | 2026 £'000 | 2025 £'000 | 2025 £'000 | |
| Fixed assets | |||||
| Investments held at fair value through profit or loss | 9 | 411,604 | 453,211 | ||
| Current assets | |||||
| Debtors | 10 | 2,427 | 1,989 | ||
| Cash at bank | 18 | 16,689 | 20,797 | ||
| 19,116 | 22,786 | ||||
| Creditors | |||||
| Amounts falling due within one year | 11 | (71,897) | (86,307) | ||
| Net current liabilities | (52,781) | (63,521) | |||
| Net assets | 358,823 | 389,690 | |||
| Capital and reserves | |||||
| Share capital | 12 | 6,285 | 6,285 | ||
| Share premium account | 13 | - | 260,270 | ||
| Distributable capital reserve | 13 | 260,270 | - | ||
| Capital redemption reserve | 13 | 21,521 | 21,521 | ||
| Capital reserve | 13 | 68,213 | 99,445 | ||
| Revenue reserve | 13 | 2,534 | 2,169 | ||
| Shareholders' funds | 358,823 | 389,690 | |||
| Net asset value per ordinary share* | 14 | 146.3p | 139.4p |
| Notes | Share capital £'000 | Share premium account £'000 | Distributable capital reserve £'000 | Capital redemption reserve £'000 | Capital reserve £'000 | Revenue reserve £'000 | Shareholders' funds £'000 | |
| Shareholders' funds at 1 February 2025 | 6,285 | 260,270 | - | 21,521 | 99,445 | 2,169 | 389,690 | |
| Ordinary shares bought back into treasury | 12 | - | - | - | - | (42,137) | - | (42,137) |
| Cancellation of share premium account | - | (260,270) | 260,270 | - | - | - | - | |
| Net return on ordinary activities after taxation | 7 | - | - | - | - | 10,905 | 1,981 | 12,886 |
| Dividend paid in the year | 8 | - | - | - | - | - | (1,616) | (1,616) |
| Shareholders' funds at 31 January 2026 | 6,285 | - | 260,270 | 21,521 | 68,213 | 2,534 | 358,823 |
| Notes | Share capital £'000 | Share premium account £'000 | Capital redemption reserve £'000 | Capital reserve £'000 | Revenue reserve £'000 | Shareholders' funds £'000 | |
| Shareholders' funds at 1 February 2024 | 6,285 | 260,270 | 21,521 | 167,114 | 2,602 | 457,792 | |
| Ordinary shares bought back into treasury | 12 | - | - | - | (35,219) | - | (35,219) |
| Net return on ordinary activities after taxation | 7 | - | - | - | (32,450) | 1,989 | (30,461) |
| Dividend paid in the period | 8 | - | - | - | - | (2,422) | (2,422) |
| Shareholders' funds at 31 January 2025 | 6,285 | 260,270 | 21,521 | 99,445 | 2,169 | 389,690 |
| Notes | 2026 £'000 | 2026 £'000 | 2025 £'000 | 2025 £'000 | |
| Cash flows from operating activities | |||||
| Net return/(loss) on ordinary activities before taxation | 13,590 | (29,722) | |||
| Net (gains)/losses on investments | (5,584) | 34,865 | |||
| Currency gains | (5,321) | (2,415) | |||
| Finance costs of borrowings | 1,208 | 1,465 | |||
| Overseas withholding tax | (709) | (805) | |||
| Decrease in debtors, accrued income and prepaid expenses | 55 | 638 | |||
| Increase/(decrease) in creditors | 149 | (402) | |||
| Cash inflow from operations | 3,388 | 3,624 | |||
| Interest paid | (1,384) | (1,460) | |||
| Net cash inflow from operating activities | 2,004 | 2,164 | |||
| Cash flows from investing activities | |||||
| Acquisitions of investments | (96,423) | (112,102) | |||
| Disposals of investments | 142,314 | 165,814 | |||
| Net cash inflow from investing activities | 45,891 | 53,712 | |||
| Ordinary shares bought back into treasury and stamp duty thereon | 12 | (42,137) | (35,219) | ||
| Bank loans repaid | (456,693) | (35,907) | |||
| Bank loans drawn down | 449,990 | 35,907 | |||
| Net cash (outflow) from financing activities | (48,840) | (35,219) | |||
| Dividends paid | 8 | (1,616) | (2,422) | ||
| (Decrease)/increase in cash and cash equivalents | (2,561) | 18,235 | |||
| Exchange movements | (1,547) | (403) | |||
| Cash and cash equivalents at 1 February | 18 | 20,797 | 2,965 | ||
| Cash and cash equivalents at 31 January* | 18 | 16,689 | 20,797 |
| 2026 £'000 | 2025 £'000 | ||
| Income from investments | |||
| Listed overseas dividends | 7,052 | 7,387 | |
| Other income | |||
| Deposit interest | - | 2 | |
| Total income | 7,052 | 7,389 | |
| Total income comprises | |||
| Dividends from financial assets designated at fair value through profit or loss | 7,052 | 7,387 | |
| Interest from financial assets not at fair value through profit or loss | - | 2 | |
| Total income | 7,052 | 7,389 |
| 2026 £'000 | 2025 £'000 | ||
| Investment management fee | 2,270 | 2,482 |
| 2026 p | 2025 p | 2026 £'000 | 2025 £'000 | ||
| Amounts recognised as distributions in the year: | |||||
| Previous year's final dividend (paid 29 May 2025) | 0.60p | 0.80p | 1,616 | 2,422 |
| 2026 p | 2025 p | 2026 £'000 | 2025 £'000 | ||
| Amounts paid and payable in respect of the financial year: | |||||
| Proposed final dividend per ordinary share (payable 26 May 2026) | 0.69p | 0.60p | 1,693 | 1,677 |
| 2026 Revenue | 2026 Capital | 2026 Total | 2025 Revenue | 2025 Capital | 2025 Total | ||
| Net return on ordinary activities after taxation | 0.77p | 4.22p | 4.99p | 0.67p | (10.97p) | (10.30p) |
| As at 31 January 2026 | Level 1 £'000 | Level 2 £'000 | Level 3 £'000 | Total £'000 | |
| Quoted equities | 404,032 | - | - | 404,032 | |
| Unlisted securities | - | - | 7,572 | 7,572 | |
| Total financial asset investments | 404,032 | - | 7,572 | 411,604 |
| As at 31 January 2025 | Level 1 £'000 | Level 2 £'000 | Level 3 £'000 | Total £'000 | |
| Quoted equities | 444,025 | - | - | 444,025 | |
| Unlisted securities | - | - | 9,186 | 9,186 | |
| Total financial asset investments | 444,025 | - | 9,186 | 453,211 |
| 31 January 2025 £'000 | Cash flows £'000 | Exchange movement £'000 | Other non-cash changes £'000 | 31 January 2026 £'000 | ||
| Cash and cash equivalents | 20,797 | (2,561) | (1,547) | - | 16,689 | |
| Loans due within one year | (83,676) | 6,703 | 6,868 | - | (70,105) | |
| (62,879) | 4,142 | 5,321 | - | (53,416) |
| 31 January 2026 | 31 January 2025 | |
| NAV per ordinary share (borrowings at book value) | 146.3p | 139.4p |
| Shareholders' funds (borrowings at book value) | £358,823,000 | £389,690,000 |
| Add: book value of borrowings | £70,105,000 | £83,676,000 |
| Less: fair value of borrowings | (£70,105,000) | (£83,676,000) |
| NAV (borrowings at fair value) | £358,823,000 | £389,690,000 |
| Shares in issue at year end | 245,320,073 | 279,491,301 |
| NAV per ordinary share (borrowings at fair value) | 146.3p | 139.4p |
| 2026 NAV (book) | 2026 NAV (fair) | 2025 NAV (book) | 2025 NAV (fair) | |
| Closing NAV per share | 146.3p | 146.3p | 139.4p | 139.4p |
| Closing share price | 135.4p | 135.4p | 119.0p | 119.0p |
| Discount | (7.5%) | (7.5%) | (14.6%) | (14.6%) |
| 31 January 2026 | 31 January 2025 | ||
| Investment management fee | £2,270,000 | £2,482,000 | |
| Other administrative expenses | £889,000 | £714,000 | |
| Less: Non-recurring expenses* | (£240,000) | - | |
| Total expenses | (a) | £2,920,000 | £3,196,000 |
| Average daily cum-income NAV (with borrowings at fair value) | (b) | £359,484,000 | £401,677,000 |
| Ongoing charges | (a) as a percentage of (b) | 0.81% | 0.80% |
| 2026 NAV (book) | 2026 Share price | 2025 NAV (book) | 2025 Share price | ||
| Closing NAV per share/share price | (a) | 146.3 | 135.4 | 139.4 | 119.0 |
| Dividend adjustment factor* | (b) | 1.0047 | 1.0058 | 1.0059 | 1.0076 |
| Adjusted closing NAV per share/share price | (c = a x b) | 147.0 | 136.2 | 140.2 | 119.9 |
| Opening NAV per share/share price | (d) | 139.4 | 119.0 | 147.8 | 126.2 |
| Total return | (c ÷ d)-1 | 5.4% | 14.4% | (5.1%) | (5.0%) |
| 31 January 2026 | 31 January 2025 | ||||
| Gearing * £'000 | Gross gearing† £'000 | Gearing * £'000 | Gross gearing† £'000 | ||
| Borrowings | (a) | 70,105 | 70,105 | 83,676 | 83,676 |
| Cash and cash equivalents | (b) | 16,689 | - | 20,797 | - |
| Shareholders' funds | (c) | 358,823 | 358,823 | 389,690 | 389,690 |
| 14.9% | 19.5% | 16.1% | 21.5% | ||