Baillie Gifford UK - Baillie Gifford UK Growth Trust Annual Results
13/06/2025 07:00
RNS Number : 6822M
Baillie Gifford UK Growth Trust PLC
13 June 2025
Baillie Gifford UK Growth Trust plc
Legal Entity Identifier: 549300XX386SYWX8XW22
Results for the year to 30 April 2025
For the year to 30 April 2025, the Company's net asset value ('NAV') total return (capital and income) was 7.1% compared to 7.5% for the FTSE All-Share Index total return. The share price total return for the same period was 13.6% as the discount narrowed.
¾ It has felt like one step forward and one step back. Relative performance was strong in the first half of the year but poor in the second half.
¾ The largest detractors to relative performance were: 4imprint, the direct marketer of promotional merchandise, and Renishaw, a world leading engineering company specialising in metrology. Games Workshop, a gaming company known for its fantasy game Warhammer, and St James's Place, a UK wealth manager, were the notable positive contributors to relative performance.
¾ The net revenue return for the year was 5.32p per share (2024: 5.68p). A final dividend of 5.70p per share is being recommended (2024: 5.60p). This dividend will be paid by way of a single final payment.
¾ Following on from the introduction of a conditional tender, based on five-year performance to 30 April 2029, and additional continuation vote in 2027, in January this year the Board announced its intention of maintaining the Company's discount in single figures in normal market conditions, building on the initiatives to date to enhance shareholder value.
¾ Over the year a total of 17,403,697 shares, representing 11.9% of the Company's issued share capital as at 30 April 2024, were bought back into treasury. Since period end to 10 June 2025, a further 1,623,033 shares have been bought back into treasury. The Company is seeking to refresh its buyback authority at a General Meeting being convened 3 July 2025, which will be superseded, if passed, by the buyback authority being requested as part of the Company's Annual General Meeting business 3 September 2025;
¾ Chairman Neil Rogan commented: "The Directors are all acutely aware that the Company remains in a recovery situation. We will continue to do all we can to enhance shareholder returns. We know we need to demonstrate clear progress by the time of the next continuation vote. But we also know that we are sitting on a Company of enormous potential: The UK market as a whole is widely regarded as unusually cheap both by comparison with its own history and with global markets. That alone is a case for optimism. If growth stocks start to outperform, either because they are so cheap already or because UK economic growth accelerates from its very low current levels, then a favourable tailwind should be felt again. And if all this coincides with investment trust discounts reverting to normal levels, then the case for BGUK is compelling."
Total return information is sourced from Baillie Gifford/LSEG. See disclaimer at the end of this announcement. For a definition of terms see Glossary of Terms and Alternative Performance Measures at the end of this announcement.
Baillie Gifford UK Growth Trust plc invests to achieve capital growth predominantly from investment in UK equities with the aim of providing a total return in excess of the FTSE All-Share Index.
The Company is managed by Baillie Gifford & Co, an Edinburgh based fund management group with around £209 billion under management and advice as at 10 June 2025.
Past performance is not a guide to future performance. Baillie Gifford UK Growth Trust plc is a listed UK company. The value of its shares and any income from them can fall as well as rise and investors may not get back the amount invested. The Company is listed on the London Stock Exchange and is not authorised or regulated by the Financial Conduct Authority. You can find up to date performance information about Baillie Gifford UK Growth Trust plc at bgukgrowthtrust.com. Neither the contents of the Managers' website nor the contents of any website accessible from hyperlinks on the Managers' website (or any other website) is incorporated into, or forms part of, this announcement.
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
The following is the results announcement for the year to 30 April 2025 which was approved by the Board on 12 June 2025.
Chairman's statement
It has felt like one step forward and one step back this year. Relative performance was strong in the first half of the year but poor in the second half. For the full year to 30 April 2025, NAV total return was +7.1%%, slightly behind the FTSE All-Share Index total return of +7.5%. Your share price total return was better at +13.6% as the discount narrowed from 15.3% to 10.5%. The portfolio had been performing well until hitting an air pocket in February/March when the uncertainty caused globally by President Trump's tariff impositions and a simultaneous collapse in confidence in UK economic growth hit UK equity returns and growth companies in particular. The performance attribution numbers reveal that stock selection was the major culprit, with 4Imprint and Renishaw the largest detractors.
Earnings and Dividend
For the year to 30 April 2025, the revenue return per share was 5.32p (2024 - 5.68p). The year‑on‑year decrease was largely as a consequence of reduced dividends paid by 4Imprint and St James' Place and the sale of holdings in Rio Tinto and Hargreaves Lansdown. One of the advantages of our investment trust structure is that we can recommend a final dividend of 5.70p per share to shareholders, payable on 12 September 2025. Accumulated Revenue Reserves at the year end of 13.6p per share are ample to fund the difference, although the number of shares bought back since the year-end (dividends are not paid on shares held in Treasury) means that we are unlikely to need to dip into these reserves this time.
The Company's focus is on capital growth rather than income; shareholders should not expect a regular or steady level of income to be paid by the Company.
Borrowings and Gearing
At present, the Company has a one-year £30 million rolling credit facility with Royal Bank of Scotland International Limited. Drawn and invested gearing stood at 9% and 9% of shareholders' funds as at the Company's year end compared to 6% and 5% respectively a year earlier. Over the financial year, invested gearing ranged between 4% and 10%.
The Board sets the gearing parameters within which the portfolio managers operate. These are reviewed at each board meeting but are subject to drawn gearing not representing more than 20% of shareholders' funds at time of drawdown.
Issuance, Buybacks and Treasury
The Board is keen that the Company's shares do not trade at a double digit discount to their NAV. Despite being more active in buying back shares over the last year, at points the share price discount was wider than desired. Therefore, in January, the Board announced to the market that it had determined to use buybacks with the aim of maintaining a single digit discount to the Company's NAV per share in normal market conditions. From 28 January 2025 to 30 April 2025, the Company's discount averaged 9.6% and has averaged 9.9% since the Company's year-end.
Over the Company's financial year, the discount averaged 13.1%, ranging between 8.5% and 16.5%, ending the financial year at 10.5% compared to 15.3% a year earlier. The Company bought back into treasury 17,403,697 shares, representing 11.9% of the Company's issued share capital as at 30 April 2024. Since the financial year end, a further 1,623,033 shares have been bought back. The Company currently has 33,265,407 shares held in treasury.
The Company benefits from the flexibility of being able to issue new shares or to re-issue any shares that might be held in treasury, when there is sufficient demand, at a premium to NAV as this helps to improve trading liquidity and reduces ongoing costs by being asset accretive. As some shareholders will have noticed, the rate and quantum of buybacks has increased over the course of 2025, meaning that the Company has called a General Meeting for 3 July 2025 seeking shareholder approval to renew the buyback authority earlier than would normally have been the case. Not doing so would likely mean that the Company would run out of buyback authority prior to its next scheduled renewal (subject to shareholder approval) request at the 3 September 2025 AGM. The Company will also seek to renew the annual issuance authority at its upcoming AGM and this will supersede the authority, should it be granted, of 3 July 2025. To avoid any dilution to existing shareholders, shares held in treasury and any new shares would only be issued/re-issued at a premium to the NAV per share and after associated costs.
Board Composition
As highlighted in my interim report, Ms Carolan Dobson stood down as Chairman in August 2024, having served on the Board for nearly ten years. I would like to reiterate my thanks to her for her contribution to the Company.
Following her retirement, Trust Associates, an external recruitment consultant, was engaged to support the process to appoint a new board director, resulting in the appointment of Ms Seema Paterson from 2 January 2025. Ms Paterson is a qualified chartered accountant and has notable senior public and private company experience. Her biography, along with that of the other directors, can be found on the Company's website bgukgrowthtrust.com.
The appointment of Ms Paterson is to be approved by shareholders at the Company's AGM in September.
Annual General Meeting
The Company's AGM is scheduled to take place at noon, Wednesday 3 September at 1 Moorgate Place, City of London, London EC2R 6EA. Shareholders should note that this is not the same venue as in 2024. The meeting will include a presentation by the portfolio managers on the prospects for UK equities and the positioning of the portfolio. They and the Board will be available to answer any questions. Light refreshments will be available and shareholders are welcome to bring a guest with them.
Outlook
With US policy announcements almost daily, any outlook such as this will date quickly. So it will focus on the long term drivers for BGUK.
BGUK is a portfolio of long-term growth investments in the UK stock market. The portfolio managers have researched the investment companies thoroughly and have reviewed all of them in the past year to assess suitability for retention. Measured by active risk, or deviation from the index, it is a very active portfolio: Active share at 89.5% is very high compared to other UK investment trust companies and OEICs. Portfolio turnover is lower than elsewhere as the Managers' style is to take long-term conviction positions. The portfolio managers cover the holdings in detail in their report but, overall, the portfolio has an average PE ratio of 18.8 times for the current year and a future 3Y projected EPS growth of 7.5%. It is unusual for a portfolio of growth companies to trade at levels this attractive.
In the last 12 months, the Board has been active in making BGUK a better proposition for investors. Last year we introduced a 5-year performance conditional tender offer by which shareholders, if they wish, will be able to sell their entire holding at NAV less 2% if the NAV total return over the 5 years to 30 April 2029 does not beat the FTSE All-Share Index. This makes the Company somewhat of an each-way bet: If performance goes well, shareholders should be rewarded handsomely; if it does not, then they will be able to sell their holding near to NAV. Recognising that 5 years is a long time for some shareholders to wait, we also introduced an additional continuation vote scheduled for September 2027.
In January this year, we announced that we would step up our buyback policy with the intention of maintaining the discount in single figures in normal market conditions. Since then, conditions have hardly been normal at all, but the discount has come in, to 10.5% at the year end and to 9.9% at the time of writing.
All this comes while the Company still benefits from low fees: the management fee of 0.5% is low for an active portfolio and the ongoing charges ratio of 0.71% stands up well against competitor funds both closed-ended and open-ended. The ability to gear (or borrow to enhance returns) is another positive factor. The amounts borrowed are managed day‑to‑day by the portfolio managers and are a good reflection of their optimism about the underlying portfolio. Overall limits are set by the Board.
The Directors are all acutely aware that the Company remains in a recovery situation. We will continue to do all we can to enhance shareholder returns. We know we need to demonstrate clear progress by the time of the next continuation vote. But we also know that we are sitting on a Company of enormous potential: The UK market as a whole is widely regarded as unusually cheap both by comparison with its own history and with global markets. That alone is a case for optimism. If growth stocks start to outperform, either because they are so cheap already or because UK economic growth accelerates from its very low current levels, then the Baillie Gifford tailwind should be felt again. And if all this coincides with investment trust discounts reverting to normal levels, then the case for BGUK is compelling. Especially given the each-way bet of the 5‑year 100% performance conditional tender offer.
We look forward with confidence.
Update
Since 30 April to 10 June 2025, the Company's share price and NAV total return have been 9.7% and 8.7% respectively versus 5.3% for the FTSE All‑Share Index total return. A further 1,623,033 shares have been bought back and the discount stands at 9.9%.
Neil Rogan
Chairman
12 June 2025
Managers' report
After an encouraging period of performance in 2024, the opening months of 2025 were characterised by significant volatility, driven by geopolitical tensions, inflationary concerns and cautious investor sentiment. Investors, therefore, gravitated towards defensive, value-oriented sectors, while high-growth stocks struggled despite strong fundamentals in many cases. We are disappointed to report that the outperformance we noted in the interim report was erased in the second half of the Company's financial year, so that we ended marginally behind the index for the twelve months to 30 April 2025.
At the heart of this were some of the actions and comments from President Trump in regard to tariffs. This could be an essay in itself, but for the purposes of this Managers' Report it's enough to say that it's difficult to assess the long-term implications of his actions and intentions. Indeed, even if some of his proposals are moderated or reversed, it's hard to think that there won't be damage caused to trading relationships. In the short term it has certainly shaken the confidence of consumers and also businesses. Delaying investment or purchasing decisions given the uncertainty at an individual level might appear understandable, but if aggregated and prolonged, this could prove damaging to short-term economic prospects.
Closer to home, the new Labour Government has been unable, so far at least, to shake off its initial faltering steps and the frankly uninspiring narrative has been made no easier with events outside their control in the form of increasing concerns about the health of the global economy. With the domestic economy still unable to break out of its low growth trajectory with higher business taxes looming, consumer confidence has remained low, with cost-of-living pressures curbing discretionary spending. The Chancellor's Spring Statement did emphasise fiscal restraint but also lowered the UK growth forecast from 2% to 1%. It's important to remember that many of our businesses are only marginally impacted by this but a fair number are seeing a tougher demand backdrop despite their long-term strengths and growth potential.
Indeed, when discussing performance, what was striking in the period was the range of performance of stocks within our concentrated portfolio of 37 companies (36 listed and 1 private). Normally, when performance is close to the benchmark, one would reasonably imagine that most stocks would be grouped in a tightish band around the index and there'd be a few outliers (good and bad) beyond that. This wasn't the case in this period. Instead, we saw a picture of extremes: for example the shares of the six largest holdings in the portfolio at the year end: Games Workshop, Autotrader, Volution Group, Experian, Wise and AJ Bell, all performed very well reflecting for the most part good underlying operational performance in each of these very different businesses. There were a fair few others that are smaller positions which also saw similar positive share price performance such as Just Group, Moonpig and Rightmove. In contrast, Howden Joinery was the only one of our top ten holdings that underperformed. However, there were also a notable number of other holdings in the portfolio that performed extremely poorly. It's here that we get to the heart of the matter as it helps explain the more difficult performance of the second half because most of these stocks were economically sensitive businesses such as 4imprint, Inchcape, Ashtead, Renishaw, Bodycote and Page Group. There were also some company specific problems that hurt Diageo, Bunzl and Kainos.
The key debate for a long-term investor is whether a share price setback is indicative of something going fundamentally wrong with the business or whether it is a temporary or cyclical issue. In all of the above cases, we've carefully thought about this and for the most part other than some modest additions and trims, we've largely stuck with the same positions. This is because we believe that these businesses have the operational and balance sheet strength, alongside sensible management teams, to weather the storms and come through in even better shape. For example, it will be no surprise to any reader that the UK kitchen market has been a tough place in the last couple of years but while its short term financial results are off their peak, Howdens Kitchens is outperforming the kitchen market and, crucially in our view, still investing in its manufacturing, logistics, store refurbishment and new openings as well as launching new product ranges. In our view, this is an example of a business having the conviction to do the right things in tough times to position the business for an even brighter future when better times return. In Howdens' case, it is particularly laudable as, unlike some of our technology or 'platform' investments, it does not earn particularly high profit margins, albeit it has the safety net of a very strong balance sheet.
In terms of trading, we made no new purchases in the second half of the Company's year. We did decide to add to positions in Moonpig as we think the market is still underestimating the potential of this online card retailer. We also added to 4imprint, a direct marketer of promotional products, where the shares have been derated on US economic fears but where we think this tougher environment actually allows its scale and superior management to lay the groundwork, as in previous downturns, to strengthen their growth potential when the US economy recovers. On the other side, we sold out of the insurer Hiscox, the miner Rio Tinto and modestly reduced positions in a few stocks such as Relx, Games Workshop, Ashtead and Bunzl. While we have a high opinion of the management of Hiscox, we have been disappointed by the lack of growth in its retail business while we simply felt with Rio Tinto that the demand backdrop looked dull.
It should be emphasised that much of this selling activity was a result of the Company's new buyback policy that led to an acceleration of shares purchased in the second half of the Company's year. As managers we could simply have prorated sales across the whole portfolio but with the backing and encouragement of the Board we have tried to apply a 'competition for capital' mindset and decided to reduce or sell those investments either where we had a lower degree of conviction or in cases of Relx and Games Workshop where we retain our enthusiasm, but acknowledged the shares have performed very well and the valuation was more demanding. In a concentrated portfolio this seemed to us to be a more logical step than potentially reducing holdings where we retain strong conviction. That said, at the period end we were close to the lower end of our 35 - 65 range of companies so we can't rule out a slightly different approach in the future.
Outlook
The last few years have vividly demonstrated that 'stuff happens' far more frequently than any model would predict. Whatever the reasons for that, the effect of appearing to live in a world 'permanently in fast forward' can be dizzying, disorientating, exciting and slightly alarming at times. Trying to unpick this, the problem is often evaluating whether current concerns are transitory or genuinely seismic. We'd humbly posit that far more fall into the former category than the market or commentators would have you believe. However, it's vital also to remember that for nimble, far sighted management teams, uncertain times can be a source of great opportunity too. For us, it helps immeasurably having the discipline of a clear investment framework of growth investing that allows us to keep evaluating the fundamental quality of the portfolio and to search for new opportunities without getting sucked into distractions. That we have continued to stick with most of the holdings over the year is testament to a lot of time spent with businesses genuinely trying to evaluate their prospects. While we are very aware that long term performance needs to improve, we remain highly encouraged by the potential of the companies in the portfolio and remain optimistic about its future prospects.
Iain McCombie and Milena Mileva
Baillie Gifford & Co
12 June 2025
The managers' core investment principles
Investment philosophy
The following are the three core principles underpinning our investment philosophy. We have a consistent, differentiated long-term investment approach to managing UK equities that should stand investors in the Company in good stead:
Growth
We search for the few companies which have the potential to grow substantially and profitably over many years. Whilst we have no insight into the short-term direction of a company's share price, we believe that, over the longer term, those companies which deliver above average growth in cash flows will be rewarded with above average share price performance and that the power of compounding is often under-appreciated by investors. Successful investments will benefit from a rising share price and also from income accumulated over long periods of time.
Patience
Great growth companies are not built in a day. We firmly believe that investors need to be patient to fully benefit from the scale of the potential. Our investment time horizon, therefore, spans decades rather than quarters and our portfolio turnover is significantly below the UK industry average. This patient, long-term approach affords a greater chance for the superior growth and competitive traits of companies to emerge as the dominant influence on their share prices and allows compounding to work in the investors' favour.
Active investment management
It is our observation that too much attention is paid to the composition of market indices and active managers should make meaningful investments in their best ideas regardless of the weightings of the index. As a result, shareholders should expect the composition of the portfolio to be significantly different from the benchmark and hence the outcome in returns (in both good and bad periods) will also be significantly different from the benchmark. This differentiation is a necessary condition for delivering superior returns over a long-term time horizon.
Portfolio construction flows from the investment beliefs stated above.
Baillie Gifford's stewardship principles
Baillie Gifford's overarching ethos is that we are 'Actual' investors. That means we seek to invest for the long term. Our role as an engaged owner is core to our mission to be effective stewards for our clients. As an active manager, we invest in companies at different stages of their evolution across many industries and geographies, and focus on their unique circumstances and opportunities. Our approach favours a small number of simple principles rather than overly prescriptive policies. This helps shape our interactions with holdings and ensures our investment teams have the freedom and retain the responsibility to act in clients' best interests.
Long-term value creation
We believe that companies that are run for the long term are more likely to be better investments over our clients' time horizons. We encourage our holdings to be ambitious, focusing on long-term value creation and capital deployment for growth. We know events will not always run according to plan. In these instances we expect management to act deliberately and to provide appropriate transparency. We think helping management to resist short-term demands from shareholders often protects returns. We regard it as our responsibility to encourage holdings away from destructive financial engineering towards activities that create genuine value over the long run. Our value will often be in supporting management when others don't.
Alignment in vision and practice
Alignment is at the heart of our stewardship approach. We seek the fair and equitable treatment of all shareholders alongside the interests of management. While assessing alignment with management often comes down to intangible factors and an understanding built over time, we look for clear evidence of alignment in everything from capital allocation decisions in moments of stress to the details of executive remuneration plans and committed share ownership. We expect companies to deepen alignment with us, rather than weaken it, where the opportunity presents itself.
Governance fit for purpose
Corporate governance is a combination of structures and behaviours; a careful balance between systems, processes and people. Good governance is the essential foundation for long-term company success. We firmly believe that there is no single governance model that delivers the best long-term outcomes. We therefore strive to push back against one-dimensional global governance principles in favour of a deep understanding of each company we invest in. We look, very simply, for structures, people and processes which we think can maximise the likelihood of long-term success. We expect to trust the boards and management teams of the companies we select, but demand accountability if that trust is broken.
Sustainable business practices
A company's ability to grow and generate value for our clients relies on a network of interdependencies between the company and the economy, society and environment in which it operates. We expect holdings to consider how their actions impact and rely on these relationships. We believe long-term success depends on maintaining a social licence to operate and look for holdings to work within the spirit and not just the letter of the laws and regulations that govern them. Material factors should be addressed at the board level as appropriate.
List of investments as at 30 April 2025
| Name | Business | Fair value £'000 | % of total assets |
| Consumer discretionary | |||
| Games Workshop | Toy manufacturer and retailer | 21,376 | 7.5 |
| Howden Joinery | Manufacturer and distributor of kitchens to trade customers | 11,061 | 3.9 |
| Moonpig | Online greetings card and gifting platform | 9,836 | 3.5 |
| 4imprint | Direct marketer of promotional merchandise | 7,444 | 2.6 |
| Inchcape | Car wholesaler and retailer | 6,579 | 2.3 |
| Burberry | Luxury goods retailer | 2,891 | 1.0 |
| 59,187 | 20.8 | ||
| Consumer staples | |||
| Diageo | International drinks company | 5,948 | 2.1 |
| Applied Nutrition | Producer of premium nutrition supplements | 1,104 | 0.4 |
| 7,052 | 2.5 | ||
| Financials | |||
| AJ Bell | UK wealth manager | 12,445 | 4.4 |
| Just Group | Provider of retirement income products and services | 11,010 | 3.9 |
| St. James's Place | UK wealth manager | 10,070 | 3.5 |
| Legal & General | Insurance and investment management company | 9,143 | 3.2 |
| Prudential | International life insurer | 7,300 | 2.6 |
| Lancashire Holdings | General insurance | 6,804 | 2.4 |
| IntegraFin | Provides platform services to financial clients | 5,970 | 2.1 |
| Molten Ventures | Technology focused venture capital firm | 3,456 | 1.2 |
| 66,198 | 23.3 | ||
| Healthcare | |||
| Genus | World leading animal genetics company | 7,365 | 2.6 |
| Creo Medical | Designer and manufacturer of medical equipment | 449 | 0.2 |
| Oxford Nanopore | Novel DNA sequencing technology | 368 | 0.1 |
| 8,182 | 2.9 | ||
| Industrials | |||
| Volution Group | Supplier of ventilation products | 18,177 | 6.4 |
| Experian | Global provider of credit data and analytics | 15,255 | 5.4 |
| Wise | Online platform to send and receive money | 13,331 | 4.7 |
| Halma | Specialist engineer | 8,840 | 3.1 |
| Ashtead | Construction equipment rental company | 5,759 | 2.0 |
| Renishaw | World leading metrology company | 5,716 | 2.0 |
| Bunzl | Distributor of consumable products | 5,475 | 1.9 |
| Bodycote | Heat treatment and materials testing | 4,425 | 1.6 |
| PageGroup | Recruitment consultancy | 2,937 | 1.0 |
| FDM Group | Provider of professional services focusing on information technology | 1,757 | 0.6 |
| 81,672 | 28.7 | ||
| Real estate | |||
| Rightmove | UK's leading online property portal | 7,846 | 2.7 |
| Helical | Property developer | 3,920 | 1.4 |
| 11,766 | 4.1 | ||
| Technology | |||
| Auto Trader Group | Advertising portal for second hand cars in the UK | 18,103 | 6.4 |
| Softcat | IT reseller and infrastructure solutions provider | 10,352 | 3.6 |
| Kainos Group | IT services and implementer | 6,679 | 2.3 |
| RELX | Professional publications and information provider | 6,448 | 2.3 |
| Wayve Technologies Ltd Series B Pref.U | Developer of full autonomous driving systems | 3,757 | 1.3 |
| First Derivatives | IT consultant and software developer | 3,561 | 1.3 |
| 48,900 | 17.2 | ||
| Total Equities | 282,957 | 99.5 | |
| Net Liquid Assets | 1,480 | 0.5 | |
| Total Assets | 284,437 | 100.0 |
| Notes | 2025 Revenue £'000 | 2025 Capital £'000 | 2025 Total £'000 | 2024 Revenue £'000 | 2024 Capital £'000 | 2024 Total £'000 | |
| Gains/(losses) on investments | 9 | - | 11,412 | 11,412 | - | (6,288) | (6,288) |
| Currency losses | - | (48) | (48) | - | (93) | (93) | |
| Income | 2 | 8,893 | - | 8,893 | 9,787 | - | 9,787 |
| Investment management fee | 3 | (433) | (1,010) | (1,443) | (421) | (982) | (1,403) |
| Other administrative expenses | 4 | (598) | - | (598) | (568) | - | (568) |
| Net return before finance costs and taxation | 7,862 | 10,354 | 18,216 | 8,798 | (7,363) | 1,435 | |
| Finance costs of borrowings | 5 | (394) | (919) | (1,313) | (314) | (732) | (1,046) |
| Net return on ordinary activities before taxation | 7,468 | 9,435 | 16,903 | 8,484 | (8,095) | 389 | |
| Tax on ordinary activities | 6 | - | - | - | - | - | - |
| Net return of ordinary activities after taxation | 7,468 | 9,435 | 16,903 | 8,484 | (8,095) | 389 | |
| Net return per ordinary share | 7 | 5.32p | 6.72p | 12.04p | 5.68p | (5.42p) | 0.26p |
| Notes | 2025 £'000 | 2025 £'000 | 2024 £'000 | 2024 £'000 | |
| Fixed assets | |||||
| Investments held at fair value through profit or loss | 9 | 282,957 | 296,590 | ||
| Current assets | |||||
| Debtors | 10 | 1,776 | 2,242 | ||
| Cash and cash equivalents | 18 | 823 | 1,917 | ||
| 2,599 | 4,159 | ||||
| Creditors | |||||
| Amounts falling due within one year | 11 | (25,469) | (17,596) | ||
| Net current liabilities | (22,870) | (13,437) | |||
| Net assets | 260,087 | 283,153 | |||
| Capital and reserves | |||||
| Share capital | 12 | 40,229 | 40,229 | ||
| Share premium account | 13 | 11,664 | 11,664 | ||
| Capital redemption reserve | 13 | 19,759 | 19,759 | ||
| Warrant exercise reserve | 13 | 417 | 417 | ||
| Share purchase reserve | 13 | 17,522 | 49,380 | ||
| Capital reserve | 13 | 152,943 | 143,508 | ||
| Revenue reserve | 13 | 17,553 | 18,196 | ||
| Shareholders' funds | 260,087 | 283,153 | |||
| Net asset value per ordinary share* | 14 | 201.2p | 193.0p |
| Notes | Share capital £'000 | Share premium account £'000 | Capital redemption reserve £'000 | Warrant exercise reserve £'000 | Share purchase reserve £'000 | Capital reserve £'000 | Revenue reserve £'000 | Shareholders' funds £'000 | |
| Shareholders' funds at 1 May 2024 | 40,229 | 11,664 | 19,759 | 417 | 49,380 | 143,508 | 18,196 | 283,153 | |
| Ordinary shares bought back into treasury | 12 | - | - | - | - | (31,858) | - | - | (31,858) |
| Dividends paid during the year | 8 | - | - | - | - | - | - | (8,111) | (8,111) |
| Net return on ordinary activities after taxation | 7 | - | - | - | - | - | 9,435 | 7,468 | 16,903 |
| Shareholders' funds at 30 April 2025 | 40,229 | 11,664 | 19,759 | 417 | 17,522 | 152,943 | 17,553 | 260,087 |
| Notes | Share capital £'000 | Share premium account £'000 | Capital redemption reserve £'000 | Warrant exercise reserve £'000 | Share purchase reserve £'000 | Capital reserve £'000 | Revenue reserve £'000 | Shareholders' funds £'000 | |
| Shareholders' funds at 1 May 2023 | 40,229 | 11,664 | 19,759 | 417 | 55,628 | 151,603 | 15,122 | 294,422 | |
| Ordinary shares bought back into treasury | 12 | - | - | - | - | (6,248) | - | - | (6,248) |
| Dividends paid during the year | 8 | - | - | - | - | - | - | (5,410) | (5,410) |
| Net return on ordinary activities after taxation | 7 | - | - | - | - | - | (8,095) | 8,484 | 389 |
| Shareholders' funds at 30 April 2024 | 40,229 | 11,664 | 19,759 | 417 | 49,380 | 143,508 | 18,196 | 283,153 |
| Notes | 2025 £'000 | 2025 £'000 | 2024 £'000 | 2024 £'000 | |
| Cash flows from operating activities | |||||
| Net return on ordinary activities before taxation | 16,903 | 389 | |||
| Adjustments to reconcile company profit before tax to net cash flow from operating activities | |||||
| Net (gains)/losses on investments | 9 | (11,412) | 6,288 | ||
| Currency losses | 48 | 93 | |||
| Finance costs of borrowings | 1,313 | 1,046 | |||
| Other capital movements | |||||
| Changes in debtors | (126) | (171) | |||
| Changes in creditors | (96) | 31 | |||
| Cash from operations* | 6,630 | 7,676 | |||
| Interest paid | (1,284) | (897) | |||
| Net cash inflow from operating activities | 5,346 | 6,779 | |||
| Cash flows from investing activities | |||||
| Acquisitions of investments | (7,944) | (24,185) | |||
| Disposals of investments | 33,581 | 23,251 | |||
| Net cash inflow/(outflow) from investing activities | 25,637 | (934) | |||
| Cash flows from financing activities | |||||
| Bank loan drawn down | 8,000 | 1,900 | |||
| Equity dividends paid | 5 | (8,111) | (5,410) | ||
| Ordinary shares bought back into treasury and stamp duty thereon | 12 | (31,918) | (5,837) | ||
| Net cash outflow from financing activities | (32,029) | (9,347) | |||
| (Decrease) in cash and cash equivalents | (1,046) | (3,502) | |||
| Exchange movements | (48) | (93) | |||
| Cash and cash equivalents at start of year | 15 | 1,917 | 5,512 | ||
| Cash and cash equivalents at end of year† | 15 | 823 | 1,917 | ||
| 2025 £'000 | 2024 £'000 | ||
| Income from investments | |||
| UK dividends | 8,811 | 9,705 | |
| Other income | |||
| Deposit interest | 82 | 82 | |
| Total income | 8,893 | 9,787 |
| 2025 Revenue £'000 | 2025 Capital £'000 | 2025 Total £'000 | 2024 Revenue £'000 | 2024 Capital £'000 | 2024 Total £'000 | ||
| Investment management fee | 433 | 1,010 | 1,443 | 421 | 982 | 1,403 |
| 2025 Revenue | 2025 Capital | 2025 Total | 2024 Revenue | 2024 Capital | 2024 Total | ||
| Net return per ordinary share | 5.32p | 6.72p | 12.04p | 5.68p | (5.42p) | 0.26p |
| 2025 | 2024 | 2025 £'000 | 2024 £'000 | ||
| Amounts recognised as distributions in the year: | |||||
| Previous year's final dividend (paid 13 September 2024) | 5.60p | 3.60p | 8,111 | 5,410 |
| 2025 | 2024 | 2025 £'000 | 2024 £'000 | ||
| Dividends paid and payable in respect of the year: | |||||
| Proposed final dividend (payable 12 September 2025) | 5.70p | 5.60p | 7,369 | 8,214 |
| 2025 | 2024 | |
| Closing NAV per share | 201.2p | 193.0p |
| Closing share price | 180.0p | 163.5p |
| Discount | (10.5%) | (15.3%) |
| 2025 NAV | 2025 share price | 2024 NAV | 2024 share price | ||
| Closing NAV per share/share price | (a) | 201.2p | 180.0p | 193.0p | 163.5p |
| Dividend adjustment factor* | (b) | 1.0275 | 1.0317 | 1.0197 | 1.0226 |
| Adjusted closing NAV per share/share price | (c = a x b) | 206.7p | 185.7p | 196.8p | 167.2p |
| Opening NAV per share/share price | (d) | 193.0p | 163.5p | 195.6p | 168.0p |
| Total return | (c ÷ d)-1 | 7.1% | 13.6% | 0.6% | (0.5%) |
| 2025 | 2024 | ||
| Investment management fee | £1,442,000 | £1,403,000 | |
| Other administrative expenses | £598,000 | £568,000 | |
| Total expenses | (a) | £2,040,000 | £1,971,000 |
| Average net asset value | (b) | £287,088,000 | £280,829,000 |
| Ongoing charges ((a) ÷ (b) expressed as a percentage) | 0.71% | 0.70% |
| 2025 | 2024 | |
| Borrowings | £24,350,000 | £16,350,000 |
| Less: cash and cash equivalents | (£823,000) | (£1,917,000) |
| Adjusted borrowings | £23,527,000 | £14,433,000 |
| Shareholders' funds | £260,087,000 | £283,153,000 |
| Invested gearing | 9% | 5% |
| 2025 | 2024 | |
| Borrowings | £24,350,000 | £16,350,000 |
| Shareholders' funds | £260,087,000 | £283,153,000 |
| Drawn gearing | 9% | 6% |