REG - Baillie Gifford UK - Baillie Gifford UK Growth Trust Interim Results
28/11/2025 07:00
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RNS Number : 3522J Baillie Gifford UK Growth Trust PLC 28 November 2025
RNS Announcement
Baillie Gifford UK Growth Trust plc (BGUK)
Legal Entity Identifier: 549300XX386SYWX8XW22
Results for the six months to 31 October 2025
The following is the unaudited Interim Financial Report for the six months to
31 October 2025 which was approved by the Board on 27 November 2025.
Over the six month period to 31 October 2025, the Company's net asset value
('NAV') per share total return (capital and income) was 16.2% compared to
16.0% for the FTSE All-Share Index total return. The share price total return
for the same period was 17.7% as the discount narrowed to end the period at
9.6%.
− Just Group, St James's Place, AJ Bell and Renishaw were
notable contributors to positive absolute and relative outperformance. Of the
larger holdings, Autotrader, Wise and Experian were notable detractors to
absolute and relative performance, and not owning banks and Rolls Royce also
detracted.
− One new position was initiated in the period, Spirax,
the engineering business. The position in First Derivatives was exited
following a takeover and a number of positions reduced to fund the new
purchase and the buybacks. There were 37 companies held in the portfolio as at
31 October 2025 and net gearing stood at 8%.
− The net revenue return per share was 2.60p compared to
2.78p in the corresponding period last year. As highlighted previously, no
interim dividend will be declared as all dividends are paid as a single final
dividend.
− Over the period, a total of 11,097,159 shares were
bought back for treasury, representing 8.6% of the number of shares in issue
at the start of the financial year. Following the period end, a further
1,625,737 shares have been purchased to 26 November 2025, representing 1.3% of
the Company's shares in issue at the start of the financial year.*
− Chairman Neil Rogan commented: "Many of the companies
we hold are already showing that they are able to grow even if the UK economy
remains lacklustre. The real excitement would come if the UK was able to
unleash its growth potential. While we wait impatiently for that to happen, a
repeat of what we have just seen, a closing of the UK's valuation discount and
earnings growth from the companies we hold, would be a positive outcome."
* This percentage calculation excludes treasury shares
from the denominator.
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 total return.
The Company is managed by Baillie Gifford & Co, an Edinburgh based fund
management group with around £204.7 billion under management and advice as at
27 November 2025.
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(‡).
Past performance is not a guide to future performance. See disclaimer at end
of this announcement.
(‡) 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.
27 November 2025
For further information please contact:
Anzelm Cydzik, Baillie Gifford & Co
Tel: 0131 275 2000
Jonathan Atkins, Four Communications
Tel: 0203 920 0555 or 07872 495396
Principal risks and uncertainties
The principal risks facing the Company are financial risk, investment strategy
risk, discount risk, climate and governance risk, regulatory risk, custody and
depositary risk, operational risk, leverage risk, political risk, cyber
security risk and emerging risks. An explanation of these risks and how they
are managed is set out on pages 30 to 33 of the Company's Annual Report and
Financial Statements for the year to 30 April 2025 which is available on the
Company's website: bgukgrowthtrust.com. The principal risks and uncertainties
have not changed since the date of that report.
Responsibility statement
We confirm that to the best of our knowledge:
a. the condensed set of Financial Statements has been prepared in
accordance with FRS 104 'Interim Financial Reporting';
b. the Interim Management Report includes a fair review of the
information required by Disclosure Guidance and Transparency Rule 4.2.7R
(indication of important events during the first six months, their impact on
the Financial Statements and a description of the principal risks and
uncertainties for the remaining six months of the year); and
c. the Interim Financial Report includes a fair review of the
information required by Disclosure Guidance and Transparency Rule 4.2.8R
(disclosure of related party transactions and changes therein).
On behalf of the Board
Neil Rogan
Chairman
27 November 2025
Chairman's interim update
Over the six months to 31 October 2025 your NAV per share total return was
+16.2% and your share price total return was +17.7%, both outperforming the
FTSE All-Share Index total return of +16.0%. This is both encouraging and
disappointing at the same time.
Encouraging because the UK equity market has risen despite an almost constant
flow of poor economic and political news. +17.7% is a healthy absolute return
by anyone's standards over a six‑month period. This has been possible
because the UK market was so cheap by comparison to both its own history and
to global markets. That discount has closed a little but has much further to
go.
Disappointing because the lack of growth in the economy has meant little
opportunity for UK growth stocks to shine and so the style headwind that
Baillie Gifford has suffered over the past four years has continued.
As you can see in the table below NAV and share price performance numbers are
behind the benchmark index over one, three and five years and marginally
behind over the period since 30 April 2024, which was the start date for the
five-year performance conditional tender calculation. Iain and Milena analyse
performance in more detail in their report.
Total return performance*
Since 1 Year 3 Year 5 Year
30/4/24 *
FTSE All-Share Index(†) 24.7% 22.5% 50.9% 98.6%
NAV 24.4% 15.2% 42.2% 32.5%
Share price 33.7% 19.7% 49.0% 27.0%
* Start of the five-year performance related tender period.
What has the Board done? We have committed to a continuation vote in 2027 and
then to a 100% performance conditional tender in 2029, which means that
shareholders will be given the opportunity to tender as much of their holding
as they wish at a 2% discount to NAV, if performance fails to beat the
comparative index over the five‑year period to 30 April 2029. In January
2025 we tightened our buyback program by stating a commitment to maintain the
discount in single figures. Over the six months to 31 October 2025, we bought
back 11,097,159 shares, representing 8.6% of the number of shares in issue at
the start of the financial year. The discount has averaged 10.0% over the six
months and closed at 9.6% on 31 October 2025.
The Board's dividend policy remains unchanged, which is to pay out at least
85% of earned income in one payment per year, putting any excess into revenue
reserves. The Board is responsible for the level of ongoing charges which was
a competitive 0.71% per annum at 30 April 2025. The major component of this is
the 0.50% management fee paid to Baillie Gifford.
There is still much work to be done by the Managers and by the Board to turn
around this Company. Obviously, the main determinant of our future success
will be performance over the next two to four years. Your Board believes that
the ingredients are in place for Baillie Gifford to deliver this improvement,
with their clear investment philosophy, a robust investment process and a
strong team led by Iain and Milena managing the portfolio. Beating the index
during the headwinds of the last six months is a positive sign. The true test
will come when the style tailwind returns. Baillie Gifford's investment
approach means that this Company is likely to perform best when markets are
rising, when growth stocks are outperforming value stocks and when mid- and
small‑cap stocks are outperforming large-caps.
Please note that because the active share of the portfolio is large (90%;
meaning that 90% of the portfolio is different from the FTSE All-Share Index)
performance outcomes are likely to remain significantly different to the
index.
Outlook
Looking at the data reveals that we have in Baillie Gifford UK Growth Trust a
portfolio of growth companies on unusually attractive valuations. The weighted
average historic price to earnings ratio for the portfolio is around 20 times,
with 7% annualised earnings growth predicted for the next three years and
companies that should produce superior growth beyond that horizon. This
remains a much better starting position for a growth portfolio than has been
the case for many years. Many of the companies we hold are already showing
that they are able to grow even if the UK economy remains lacklustre. The real
excitement would come if the UK was able to unleash its growth potential.
While we wait impatiently for that to happen, a repeat of what we have just
seen, a closing of the UK's valuation discount and earnings growth from the
companies we hold, would be a positive outcome.
Neil Rogan
Chairman
27 November 2025
* Alternative Performance Measure, see Glossary of terms and Alternative
Performance Measures at the end of this announcement.
† Source: LSEG/Baillie Gifford and relevant underlying data providers.
See disclaimers at the end of this announcement.
Past performance is not a guide to future performance.
Interim management report
Over the six-month period, the Company's NAV marginally outperformed its
index. The healthy absolute return in the period underlined the strong bounce
back in markets following the turmoil caused by the initial announcement of
President Trump's tariffs, which have been softened subsequently.
Interestingly, it also belied the relatively gloomy economic news in the UK
and concerns about another tax raising budget in November. We don't pretend to
know what happens from here, other than one of the things we look for in the
management teams and businesses we own is their adaptability. To be clear,
this doesn't mean that we should expect a company to buck the cycle in the
industry it operates in, but we do expect its management to be clear sighted
about the near-term challenges without sacrificing the long-term
opportunities. This is not an easy task and can sometimes bring short term
pain for shareholders. The rewards, however, were illustrated by a couple of
stocks in the period that performed extremely well.
The first was the annuity insurer Just Group which was the most positive
contributor to the portfolio's performance in the period. It agreed to a
takeover from a Canadian financial services business at a significant premium
to the prevailing share price. This has been a trying investment at times for
us as the market has stubbornly refused to give credit to an impressive
management's ability to grow the business in a disciplined and low risk
manner. As the fundamentals, in our opinion, remained compelling, we stuck
with the position, so we had mixed feelings when the Just Group board accepted
an offer at what we think is a reasonable, but not generous, valuation. As we
doubted that a rival bid would appear, we decided to reduce our holding in
Just Group to fund purchases elsewhere in the portfolio and, in part, the
shares that have been bought back by the Company in the period.
The wealth advice manager St James's Place has also been a challenging
investment in recent years, with bad publicity about its charging structure
and not all clients receiving the service the regulator expects. However, the
shares outperformed strongly following the new management team's clear and
firm actions, to address the historic issues, appearing to bear fruit. New
business volumes have also exceeded expectations suggesting that customers
continue to trust the brand. The management of St James' Place has always
remained confident that St James's Place offers a compelling proposition for
customers to save and invest with trusted advice that its exclusive sales
force is well positioned to offer. Undoubtedly, a rising stock market was
helpful for St James's Place and that tailwind also helped the investment
platform AJ Bell, which has undergone significant growth in customers and
assets in its direct-to-consumer business.
Finally, in terms of good performers, the share price of engineer Renishaw
recovered strongly although it should be remembered that it was a prime
example of a share badly hit by tariff fears in the previous period.
In terms of negatives, not owning banks and Rolls Royce hurt as their
respective prices went up significantly in the half. In terms of what we did
own, a few of our larger holdings such as Autotrader, Wise and Experian failed
to keep up with the market but, in each case, we think the operational
performance is solid and we remain happy holders of each. That said, we did
trim some of our larger positions to fund part of the share buybacks.
Importantly we remain open for new opportunities and took advantage of
relative price weakness to add to positions in the IT services business Kainos
and direct marketer of promotional products 4imprint.
The other notable transaction was a new holding in the engineering business
Spirax, a company best known for its steam management systems. Since Covid,
its shares have fallen from a very high rating mostly because a separate
division, that sells specialist pumps to the pharmaceutical and biotechnology
areas, enjoyed something of a one-off boost to demand from Covid that has
since reversed. We think that has largely played out and there is now an
opportunity to own a high-quality growing business at a much more attractive
rating.
Overall, we remain happy with the shape of the portfolio and believe the
companies within it have excellent growth potential. We look forward to the
future with optimism.
Iain McCombie and Milena Mileva
Baillie Gifford & Co
27 November 2025
The principal risks and uncertainties facing the Company are set out on the
inside front cover. Related party transaction disclosures are set out in
note 9 on below.
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. 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 many investors pay too much attention to the
composition of market indices and active managers should make meaningful
investments in their best ideas regardless of the weightings of the index. For
example, we would never invest in a company just because it is large or to
reduce risk. As a result, shareholders should expect the composition of the
portfolio to be significantly different from the benchmark. This
differentiation is a necessary condition for delivering superior returns over
time and shareholders should be comfortable tolerating the inevitable ups and
downs in short-term relative performance that will follow from that. Portfolio
construction flows from the investment beliefs stated above.
List of investments
as at 31 October 2025 (unaudited)
Name Business Value % of total
£'000 assets *
Consumer discretionary
Games Workshop Toy manufacturer and retailer 19,704 6.7
Howden Joinery Manufacturer and distributor of kitchens to trade customers 12,421 4.2
4imprint Direct marketer of promotional merchandise 10,259 3.5
Moonpig Online greetings card and gifting platform 9,172 3.1
Inchcape Car wholesaler and retailer 7,480 2.5
Burberry Luxury goods retailer 4,943 1.7
63,979 21.7
Consumer staples
Diageo International drinks company 4,978 1.7
Applied Nutrition Producer of premium nutrition supplements 1,633 0.6
6,611 2.3
Financials
AJ Bell UK wealth manager 14,104 4.8
St. James's Place UK wealth manager 13,586 4.6
Prudential International life insurer 9,725 3.3
Legal & General Insurance and investment management company 9,276 3.2
Lancashire Holdings General insurance 8,102 2.8
IntegraFin Provides platform services to financial clients 7,108 2.4
Molten Ventures Technology focused venture capital firm 6,050 2.1
Just Group Provider of retirement income products and services 2,347 0.8
70,298 24.0
Healthcare
Genus World leading animal genetics company 9,836 3.3
Creo Medical Designer and manufacturer of medical equipment 471 0.2
Oxford Nanopore Novel DNA sequencing technology 424 0.1
10,731 3.6
Industrials
Volution Group Supplier of ventilation products 17,944 6.1
Experian Global provider of credit data and analytics 13,120 4.5
Wise Online platform to send and receive money 12,909 4.4
Renishaw Metrology company 9,021 3.1
Halma Specialist engineer 6,112 2.1
Ashtead Construction equipment rental company 5,923 2.0
Bodycote Heat treatment and materials testing 5,738 2.0
Bunzl Distributor of consumable products 5,405 1.8
Spirax Group Manufacturer of steam control systems 2,935 1.0
PageGroup Recruitment consultancy 2,576 0.9
FDM Group Provider of professional services focusing on information technology 939 0.3
82,622 28.2
Real estate
Rightmove Online property portal 7,102 2.4
Helical Property developer 3,756 1.3
10,858 3.7
Technology
Auto Trader Group Advertising portal for second hand cars in the UK 16,026 5.4
Kainos Group IT services and implementer 10,033 3.4
Softcat IT reseller and infrastructure solutions provider 9,894 3.4
RELX Professional publications and information provider 5,326 1.8
Wayve Technologies Ltd Series B Pref.(U) Developer of full autonomous driving systems 5,073 1.7
46,352 15.7
Total equities 291,451 99.2
Net liquid assets 2,305 0.8
Total assets 293,756 100.0
(U) Denotes private company investment.
* Total assets less current liabilities, before deduction of borrowings.
See Glossary of terms and Alternative Performance Measures at the end of this
announcement.
Income statement (unaudited)
For the six months ended For the six months to 31 October 2024 For the year ended 30 April 2025 (audited)
31 October 2025
Notes Revenue Capital Total Revenue Capital Total Revenue Capital Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Gains on investments - 36,591 36,591 - 19,037 19,037 - 11,412 11,412
Currency losses - 4 4 - (20) (20) - - -
Income 4,013 - 4,013 4,281 - 4,281 8,893 - 8,893
Investment management fee 3 (207) (483) (690) (223) (520) (743) (433) (1,010) (1,443)
Other administrative expenses (362) - (362) (306) - (306) (598) - (598)
Net return before finance costs and taxation 3,444 36,112 39,556 3,752 18,497 22,249 7,862 10,402 18,264
Finance costs and borrowings (204) (476) (680) (208) (485) (693) (394) (919) (1,313)
Net return on ordinary activities before taxation 3,240 35,636 38,876 3,544 18,012 21,556 7,468 9,483 16,951
Tax on ordinary activities - - - - - - - - -
Net return on ordinary activities after taxation 3,240 35,636 38,876 3,544 18,012 21,556 7,468 9,483 16,951
Net return per ordinary share 4 2.60p 28.58p 31.18p 2.45p 12.44p 14.89p 5.32p 6.72p 12.04p
Note: 5 - - -
Dividends paid and payable per share
The total column of this statement is the profit and loss account of the
Company. The supplementary revenue and capital columns are prepared under
guidance published by the Association of Investment Companies.
All revenue and capital items in the above statements derive from continuing
operations.
A Statement of Comprehensive Income is not required as all gains and losses of
the Company have been reflected in the above statement.
The accompanying notes below are an integral part of the Financial Statements.
Balance sheet (unaudited)
Notes At 31 October At 30 April
2025 2025 (audited)
£'000 £'000
Fixed assets
Investments held at fair value through profit or loss 6 291,450 282,957
Current assets
Debtors 1,403 1,776
Cash and cash equivalents 2,529 823
3,932 2,599
Creditors
Amounts falling due within one year 7 (25,976) (25,469)
Net current liabilities (22,044) (22,870)
Net assets 269,406 260,087
Capital and reserves
Share capital 40,229 40,229
Share premium account 11,664 11,664
Capital redemption reserve 19,759 19,759
Warrant exercise reserve 417 417
Share purchase reserve - 17,522
Capital reserve 183,624 152,943
Revenue reserve 13,713 17,553
Shareholders' funds 269,406 260,087
Net asset value per ordinary share 228.0p 201.2p
Ordinary shares in issue 8 118,177,651 129,274,810
* See Glossary of terms and Alternative Performance Measures at the end of
this announcement.
The accompanying notes below are an integral part of the Financial Statements.
Statement of changes in equity (unaudited)
Six months to 31 October 2025
Notes Share Share Capital Warrant Share Capital Revenue Shareholders'
capital premium redemption exercise purchase reserve * reserve funds
£'000 account reserve reserve reserve £'000 £'000 £'000
£'000 £'000 £'000 £'000
Shareholders' funds at 1 May 2025 40,229 11,664 19,759 417 17,522 152,943 17,553 260,087
Ordinary shares bought back into treasury 8 - - - - (17,522) (4,955) - (22,477)
Dividends paid during the year 5 - - - - - - (7,080) (7,080)
Net return on ordinary activities after taxation - - - - - 35,636 3,240 38,876
Shareholders' funds 40,229 11,664 19,759 417 - 183,624 13,713 269,406
at 31 October 2025
Six months to 31 October 2024
Notes Share Share Capital Warrant Share Capital Revenue Shareholders'
capital premium redemption exercise purchase reserve * reserve funds
£'000 account reserve reserve reserve £'000 £'000 £'000
£'000 £'000 £'000 £'000
Shareholders' funds at 40,229 11,664 19,759 417 49,380 143,508 18,196 283,153
1 May 2024
Ordinary shares bought back into treasury 8 - - - - (8,761) - - (8,761)
Dividends paid 5 - - - - - - (8,111) (8,111)
Net return after taxation - - - - - 18,012 3,544 21,556
Shareholders' funds 40,229 11,664 19,759 417 40,619 161,520 13,629 287,837
at 31 October 2024
* The Capital Reserve balance at 31 October 2025 includes investment holding
gains of £32,562,000 (31 October 2024 - losses of £21,746,000).
The accompanying notes below are an integral part of the Financial Statements.
Cash flow statement (unaudited)
Six months to Six months to
31 October 2025 31 October 2024
£'000 £'000
Cash flows from operating activities
Net return on ordinary activities before taxation 38,876 21,556
Adjustments to reconcile company profit before tax to net cash flow from
operating activities
Net (gains)/losses on investments (36,591) (19,037)
Currency (gains)/losses (4) 20
Finance costs of borrowings 680 693
Other capital movements
Changes in debtors 1,052 1,087
Changes in creditors 62 (6)
Cash from operations* 4,075 4,313
Interest paid (580) (545)
Net cash inflow from operating activities 3,495 3,768
Cash flows from investing activities
Acquisitions of investments (7,417) (1,851)
Disposals of investments 34,836 12,156
Net cash inflow/(outflow) from investing activities 27,419 10,305
Cash flows from financing activities
Bank loan drawn down - 8,000
Equity dividends paid (7,082) (8,111)
Ordinary shares bought back into treasury and stamp duty thereon (22,130) (9,047)
Net cash outflow from financing activities (29,212) (9,158)
Increase/(decrease) in cash and cash equivalents 1,702 4,915
Exchange movements 4 (20)
Cash and cash equivalents at start of period 823 1,917
Cash and cash equivalents at end of period† 2,529 6,812
* Cash from operations includes dividends received of £5,043,000 (2024 -
£5,305,000) and £23,000 deposit interest (2024 - £48,000).
† Cash and cash equivalents represent cash at bank.
The accompanying notes below are an integral part of the Financial Statements.
Notes to the Financial Statements (unaudited)
01 Basis of accounting
The condensed Financial Statements for the six months to 31 October 2025
comprise the statements set out above together with the related notes below.
They have been prepared in accordance with FRS 104 'Interim Financial
Reporting' and the AIC's Statement of Recommended Practice issued in November
2014 and updated in July 2022 with consequential amendments and have not been
audited or reviewed by the Auditor pursuant to the Auditing Practices Board
Guidance 'Review of Interim Financial Information'. The Financial Statements
for the six months to 31 October 2025 have been prepared on the basis of the
same accounting policies as set out in the Company's Annual Report and
Financial Statements at 30 April 2025.
Going concern
Having considered the nature of the Company's principal risks and
uncertainties, as set out on the inside front cover, together with its current
position, investment objective and policy, its assets and liabilities and
projected income and expenditure, together with the Company's dividend policy,
it is the Directors' opinion that the Company has adequate resources to
continue in operational existence for the foreseeable future. The Board has,
in particular, considered heightened geopolitical tensions, conflicts and
macroeconomic concerns. It has reviewed the results of specific leverage and
liquidity stress testing, but does not believe the Company's going concern
status is affected. The Company's assets, the majority of which are
investments in quoted securities which are readily realisable, exceed its
liabilities significantly and could be sold to repay borrowings if required.
All borrowing facilities require the prior approval of the Board. Gearing
levels and compliance with borrowing covenants are reviewed by the Board on a
regular basis. In accordance with the Company's Articles of Association,
shareholders have a right to vote on the continuation of the Company every
five years. This resolution was last passed at the 2024 Annual General
Meeting. The Board made a commitment during 2024 to put forward a resolution
at the Annual General Meeting to be held in 2027 for the continuation of the
Company. This is in addition to the five-yearly continuation votes and, as
such, a continuation vote is expected to be held in 2029 as well.
The Directors have considered the continuation vote to be held at the 2027
Annual General Meeting, along with the other factors set out above, and are
satisfied that it is appropriate to adopt the going concern basis of
accounting in preparing these Financial Statements and confirm that they are
not aware of any material uncertainties which may affect the Company's ability
to continue to do so over a period of at least twelve months from the date of
approval of these Financial Statements.
02 Financial information
The financial information contained within this Interim Financial Report does
not constitute statutory accounts as defined in sections 434 to 436 of the
Companies Act 2006. The financial information for the year ended 30 April 2025
has been extracted from the statutory accounts which have been filed with the
Registrar of Companies. The Auditor's Report on those accounts was not
qualified, did not include a reference to any matters to which the Auditor
drew attention by way of emphasis without qualifying their report, and did not
contain a statement under sections 498(2) or (3) of the Companies Act 2006.
03 Investment manager
Baillie Gifford & Co Limited, a wholly owned subsidiary of Baillie Gifford
& Co, has been appointed by the Company as its Alternative Investment
Fund Manager ('AIFM') and Company Secretary. The investment management
function has been delegated to Baillie Gifford & Co. The management
agreement can be terminated on six months' notice. The annual fee is 0.5% of
net asset value, calculated and payable quarterly.
04 Net return per ordinary share
Six months to Six months to
31 October 2025 31 October 2024
£'000 £'000
Revenue return after taxation 3,240 3,544
Capital return after taxation 35,636 18,012
Total net return 38,876 21,556
Weighted average number of ordinary shares in issue 124,689,422 144,731,603
Net return per ordinary share is based on the above totals of revenue and
capital and the weighted average number of ordinary shares in issue during
each period.
There are no dilutive or potentially dilutive shares in issue.
05 Dividends
Six months to Six months to
31 October 2025 31 October 2024
£'000 £'000
Amounts recognised as distributions in the period: 7,080 8,111
Previous year's final dividend of 5.70p (2024 - 5.60p), paid 12 September
2025
06 Fixed assets - investments
Fair value hierarchy
The fair value hierarchy used to analyse the basis on which the fair values of
financial instruments held at fair value through the profit or loss account
are measured is described below. Fair value measurements are categorised on
the basis of the lowest level input that is significant to the fair value
measurement.
Level 1 - using unadjusted quoted prices for identical instruments in an
active market;
Level 2 - using inputs, other than quoted prices included within Level 1, that
are directly or indirectly observable (based on market data); and
Level 3 - using inputs that are unobservable (for which market data is
unavailable).
Level 1 Level 2 Level 3 Total
As at 31 October 2025 £'000 £'000 £'000 £'000
Listed equities 286,377 - - 286,377
Unlisted preference shares* - - 5,073 5,073
Total financial asset investments 286,377 - 5,073 291,450
Level 1 Level 2 Level 3 Total
As at 30 April 2025 (audited) £'000 £'000 £'000 £'000
Listed equities 279,200 - - 279,200
Unlisted preference shares* - - 3,757 3,757
Total financial asset investments 279,200 - 3,757 282,957
* The unlisted preference shares investment represents a holding in Wayve
Technologies Ltd.
The fair value of listed investments is quoted bid price. Listed investments
are categorised as Level 1 if they are valued using unadjusted quoted prices
for identical instruments in an active market and as Level 2 if they do not
meet all these criteria but are, nonetheless, valued using market data.
Unlisted investments are valued at fair value by the Directors following a
detailed review and appropriate challenge of the valuations proposed by the
Managers. The Managers' unlisted investment policy applies methodologies
consistent with the International Private Equity and Venture Capital Valuation
Guidelines 2022 ('IPEV'). These methodologies can be categorised as follows:
(a) market approach (multiples, industry valuation benchmarks and available
market prices); (b) income approach (discounted cash flows); and (c)
replacement cost approach (net assets). The Company's holding in an unlisted
investment is categorised as Level 3 as unobservable data is a significant
input to its fair value measurement.
07 Bank loans
As at 31 October 2025, included within amounts due within one year are
borrowings of £24,350,000 (30 April 2025 - £24,350,000).
This was drawn down under a £30 million unsecured evergreen credit loan
facility with BNY Mellon (at 30 April 2025 the Company had a one year £30
million unsecured credit loan facility with The Royal Bank of Scotland
International Limited which expired in July 2025).
08 Share capital
At 31 October 2025, the Company had the authority to buy back 18,388,802
ordinary shares and to allot or sell from treasury 14,604,350 ordinary shares
without application of pre-emption rights in accordance with the authorities
granted at the AGM in September 2025. During the six months to 31 October
2025, no shares were sold from treasury (year to 30 April 2025 - no shares
were sold from treasury). During the six months to 31 October 2025, 11,097,159
ordinary shares with a nominal value of £2,774,000 were bought back at a
total cost of £22,478,000 and held in treasury (year to 30 April 2025 -
17,403,697 ordinary shares with a nominal value of £4,351,000 were bought
back at a total cost of £31,858,000 and held in treasury).
09 Related party transactions
There have been no transactions with related parties during the first six
months of the current financial year that have materially affected the
financial position or the performance of the Company during that period and
there have been no changes in the related party transactions described in the
last Annual Report and Financial Statements that could have had such an effect
on the Company during that period.
None of the views expressed in this document should be construed as advice to
buy or sell a particular investment.
Glossary of terms and Alternative Performance Measures ('APM')
An alternative performance measure is a financial measure of historical or
future financial performance, financial position, or cash flows, other than a
financial measure defined or specified in the applicable financial reporting
framework.
Total assets
This is the Company's definition of adjusted total assets, being the total
value of all assets held less all liabilities (other than liabilities in the
form of borrowings).
Net asset value
Also described as shareholders' funds. Net asset value (NAV) is the value of
total assets less liabilities (including borrowings). The NAV per share is
calculated by dividing this amount by the number of ordinary shares in issue
(excluding treasury shares).
Net liquid assets
Net liquid assets comprise current assets less current liabilities, excluding
borrowings.
Discount/premium (APM)
As stockmarkets and share prices vary, an investment trust's share price is
rarely the same as its net asset value. When the share price is lower than the
net asset value per share it is said to be trading at a discount. The size of
the discount is calculated by subtracting the share price from the net asset
value per share and is usually expressed as a percentage of the net asset
value per share. If the share price is higher than the net asset value per
share, this situation is called a premium.
31 October 30 April
2025 2025
Closing NAV per share 228.0p 201.2p
Closing share price 206.0p 180.0p
Discount (9.6%) (10.5%)
Ongoing charges (APM)
The total expenses (excluding borrowing costs) incurred by the Company as a
percentage of the average Net Asset Value. The ongoing charges are calculated
on the basis prescribed by the Association of Investment Companies.
Total return (APM)
The total return is the return to shareholders after reinvesting the net
dividend on the date that the share price goes ex-dividend.
31 October 31 October 30 April 30 April
2025 2025 2025 2025
NAV Share price NAV Share price
Closing NAV per share/share price (a) 228.0p 206.0p 201.2p 180.0p
Dividend adjustment factor* (b) 1.0251 1.0282 1.0275 1.0317
Adjusted closing NAV per share/share price (c = a x b) 233.7p 211.8p 206.7p 185.7p
Opening NAV per share/share price (d) 201.2p 180.0p 193.0p 163.5p
Total return (c ÷ d) -1 16.2% 17.7% 7.1% 13.6%
* The dividend adjustment factor is calculated on the assumption that the
dividend of 5.70p (2024 - 5.60p) paid by the Company during the year were
reinvested into shares of the Company at the cum income NAV per share/share
price, as appropriate, at the ex-dividend date.
Gearing (APM)
At its simplest, gearing is borrowing. Just like any other public company, an
investment trust can borrow money to invest in additional investments for its
portfolio. The effect of the borrowing on the shareholders' assets is called
'gearing'. If the Company's assets grow, the shareholders' assets grow
proportionately more because the debt remains the same. But if the value of
the Company's assets falls, the situation is reversed. Gearing can therefore
enhance performance in rising markets but can adversely impact performance in
falling markets.
Net gearing is the Company's borrowings adjusted for cash and cash equivalents
expressed as a percentage of shareholders' funds.
31 October 30 April
2025 2025
Borrowings 24,350,000 24,350,000
Less: cash and cash equivalents (2,529,000) (823,000)
Adjusted borrowings 21,821,000 23,527,000
Shareholders' funds 269,406,000 260,087,000
Net gearing 8% 9%
Gross gearing is the Company's borrowings expressed as a percentage of
shareholders' funds.
31 October 30 April
2025 2025
Borrowings £24,350,000 £24,350,000
Shareholders' funds £269,406,000 £260,087,000
Gross gearing 9% 9%
Private (unlisted) company
A private (unlisted) company means a company whose shares are not available to
the general public for trading and not listed on a stock exchange.
Active share (APM)
Active share, a measure of how actively a portfolio is managed, is the
percentage of the portfolio that differs from its comparative index. It is
calculated by deducting from 100 the percentage of the portfolio that overlaps
with the comparative index. An active share of 100 indicates no overlap with
the index and an active share of zero indicates a portfolio that tracks the
index.
Leverage (APM)
For the purposes of the UK Alternative Investment Fund Managers (AIFM)
Regulations, leverage is any method which increases the Company's exposure,
including the borrowing of cash and the use of derivatives. It is expressed as
a ratio between the Company's exposure and its net asset value and can be
calculated on a gross and a commitment method. Under the gross method,
exposure represents the sum of the Company's positions after the deduction of
sterling cash balances, without taking into account any hedging and netting
arrangements. Under the commitment method, exposure is calculated without the
deduction of sterling cash balances and after certain hedging and netting
positions are offset against each other.
Treasury shares
The Company has the authority to make market purchases of its ordinary shares
for retention as treasury shares for future reissue, resale, transfer, or for
cancellation. Treasury shares do not receive distributions and the Company is
not entitled to exercise the voting rights attaching to them.
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