REG-BlackRock Energy and Resources Income Trust Plc: Final Results
Yesterday 18:00
BlackRock Energy and Resources Income Trust plc (LEI: 54930040ALEAVPMMDC31)
Annual Report and Financial Statements 30 November 2025
* 5 years change in NAV per share (with
dividends reinvested) to 30 November 2025 was 144.0%, outperforming the
Reference index over the same period which was 65.8%.
* Increase in dividend for the year ended
30 November 2026 to 6.6 pence per share, representing a 38.3% increase over
the 2024/2025 financial year dividend.
Performance record
As at As at
30 November 30 November
2025 2024
Net assets (£’000) ( 182,814 167,327
1
)
Net asset value per ordinary share (pence) 164.30 137.66
Ordinary share price (pence) 150.00 121.00
Discount to net asset value ( 8.7% 12.1%
2
)
========= =========
For the year For the year
ended ended
30 November 30 November
2025 2024
Performance (with dividends reinvested)
Net asset value per share ( 23.5% 15.3%
2
)
Ordinary share price ( 28.8% 14.0%
2
)
Reference index(3) 17.9% 0.5%
========= =========
Since inception Since inception
to 30 November to 30 November
2025 2024
Performance since inception(4) (with dividends reinvested)
Net asset value per share ( 344.7% 259.9%
2
)
Ordinary share price ( 310.1% 218.4%
2
)
========= =========
For the year For the year Change
ended ended %
30 November 30 November
2025 2024
Revenue
Net profit on ordinary taxation (£’000) 4,076 4,541 -10.2
Revenue earnings per ordinary share (pence) ( 3.50 3.63 -3.6
5
)
--------------- --------------- ---------------
Dividends (pence)
1st interim 1.125 1.125 0.0
2nd interim 1.125 1.125 0.0
3rd interim 1.250 1.125 11.1
4th interim 1.250 1.125 11.1
--------------- --------------- ---------------
Total dividends paid 4.750 4.500 5.6
========= ========= =========
(
1
) The change in net
assets reflects portfolio movements, the repurchase of shares and dividends
paid during the year.
(
2
) Alternative
Performance Measures, see Glossary contained within the Annual Report and
Financial Statements.
(
3
) The reference index is
the blended comparator index comprised of three indices – the MSCI ACWI
Select Metals & Mining Producers Ex Gold and Silver IM (Mining), the MSCI
World Energy Index (Traditional Energy) and S&P Global Clean Energy Transition
Index (Energy Transition) with a 40:30:30 mix of the three indices.
(
4
) The Company was
launched on 13 December 2005.
(
5
) Further details are
given in the Glossary contained within the Annual Report and Financial
Statements.
Chairman’s statement
Dear
Shareholder
As the Company reaches its 20th birthday and completes a full 5 years under
the new investment strategy, I am delighted to be able to report on another
year of strong performance and to reward our loyal shareholders with a new,
enhanced dividend policy. At the same time, in line with best practice, we are
offering you a chance to vote on the Continuation of the Company at its AGM in
March, and would urge you all to do so.
Market Overview
The year under review saw significant moves in
global stock markets driven by geopolitical events, in particular related to
US trade tariff policy. Markets ended the year higher, with the positive
investment momentum linked to developments in artificial intelligence (AI) and
related infrastructure investment and earnings upgrades for many associated
companies. This additional infrastructure spend has brought the supply of
power and of critical raw materials and rare earth minerals into sharp focus,
and many clean power companies performed strongly following US energy policy
clarification with the passing of the One Big Beautiful Bill Act (OBBBA). The
Company’s ability to allocate to Energy Transition alongside mining and
Traditional Energy companies, has enabled it to benefit from this trend, and
exposure to Energy Transition stocks within the portfolio increased to 34.9%
at the year end from 29.2% at the start of the year.
In terms of the commodities and mining sectors, continued weak economic data
from China has been a headwind, although the increased demand for the metals
and minerals required to support these evolving technologies should support
prices. An ample global oil supply following increased oil production from a
range of new projects has weighed on the oil price, albeit this has been
tempered by continuing geopolitical risks and strong refining margins. Another
key feature of global markets was the strong rise in the gold price, up 57.9%,
and also in gold equities.
In response to these developments, our portfolio managers marginally increased
Mining sector exposure (up from 40.2% at the start of the year to 41.6% at 30
November 2025) and reduced the weighting of Traditional Energy stocks within
the portfolio (down from 30.6% at the start of the year to 23.5% at the end of
the year).
Performance
During the year ended 30 November 2025, the
Company’s share price returned 28.8% and the net asset value (NAV) per share
returned 23.5% (both percentages in British Pound Sterling terms with
dividends reinvested). The NAV out-turn represented a substantial
outperformance of the comparator index (which returned 17.9%) for the third
year in a row. The internal benchmark that the fund manager and the board use
to evaluate performance is a blended comparator index which comprised three
indices – the MSCI ACWI Select Metals & Mining Producers Ex Gold and Silver
IM (Mining), the MSCI World Energy Index (Traditional Energy) and S&P Global
Clean Energy Transition Index (Energy Transition) with a 40:30:30 mix of the 3
indices. The representative constituent indices returned 19.2% for Mining,
0.6% for Traditional Energy and 33.9% for Energy Transition (all percentages
in British Pound Sterling terms with dividends reinvested).
Performance to 30 November 2025 1 Year 2 Years 3 Years 5 Years Since
change change change change inception(2)
% % % % %
NAV per share (with dividends reinvested)(1) 23.5 42.5 25.7 144.0 344.7
Share price (with dividends reinvested)(1) 28.8 46.8 24.4 155.2 310.1
Reference index(3,4) 17.9 18.2 0.1 65.8 N/A
(
1
) Alternative
Performance Measures. Further details of the calculation of performance with
dividends reinvested are given in the Glossary contained within the Annual
Report and Financial Statements.
(
2
) The Company was
launched on 13 December 2005.
(
3
) Reference index is the
blended comparator index comprised of three indices – the MSCI ACWI Select
Metals & Mining Producers Ex Gold and Silver IM (Mining), the MSCI World
Energy Index (Traditional Energy) and S&P Global Clean Energy Transition Index
(Energy Transition) with a 40:30:30 mix of the 3 indices.
(
4
) Please note though,
that the Company’s objectives are to achieve both an annual dividend target
and, over the long term, capital growth (see table above). Consequently, the
Board does not formally benchmark performance against mining and energy sector
indices as meeting a specific dividend target is not within the scope of these
indices. In addition, the S&P Global Clean Energy Transition Index is not
directly comparable but following recent changes is the best available proxy.
Source: BlackRock. Data as at 30 November 2025.
The portfolio’s holding in Abaxx Technologies was a significant positive
contributor to overall returns in the year, the firm’s role developing
software and infrastructure for energy transition commodities trading
benefitting from the growth of AI. This is one of the portfolio’s less
liquid holdings and illustrates the benefit of the Company’s closed ended
structure, allowing it to hold material positions in such investments. Within
the Mining portfolio, gold producers were also notable contributors to
performance on the back of the strong rise in the gold price.
Our portfolio managers provide a detailed description of the main contributors
and detractors to performance during the period, insight into the positioning
of the portfolio and their views on the outlook for the forthcoming year in
their report below.
Revenue return and dividends
The Company’s revenue earnings per share for
the year to 30 November 2025 was 3.50 pence per share, a small decrease of
3.6% compared to the prior year revenue earnings per share of 3.63 pence. This
was driven in part by an increased portfolio exposure to Energy Transition
companies, which tend to have a lower yield at this stage of their
development.
The Board is cognisant of the importance of a reliable, steady income to its
shareholders and aims to ensure that the dividend is competitive. With this in
mind, the Board announced in July 2025 that it was increasing the quarterly
dividend target from 1.125 pence per share to 1.25 pence per share (an
increase of 11.1%) for the remainder of the year to 30 November 2025. Together
with the two quarterly dividends of 1.125 pence per share already paid this
financial year, this rate equates to a total dividend of 4.75 pence per share
in respect of the current financial year which represents a yield of 3.2%
based on the share price at 30 November 2025. The shortfall of 1.25 pence
between earnings per share and the annual dividend target will be funded out
of the Company’s available revenue reserves (c£3.8 million (3.43 pence per
share) at 30 November 2025).
In addition, as announced in July 2025, and with effect from 1 December 2025,
the Board will target a dividend in each financial year of the greater of (i)
the total dividend per share in respect of the prior year, and (ii) at least
4% of NAV per share at the end of the preceding financial year, which equates
to a minimum dividend target for the year to 30 November 2026 of 6.6pence per
share. This will be paid in four quarterly installments of 1.65 pence per
share, representing 38.3% increase in the annual dividend over the 2024/2025
financial year. The first installment is due to be announced and go
ex-dividend in March 2026 and will be paid in April 2026. The dividend will be
met through a mix of dividend income from the portfolio and revenue reserves,
although this may be supported by the distribution of other distributable
reserves if required.
This target represents a yield of 4.4% based on the share price of 150.00
pence at 30 November 2025, and 3.9% based on the share price at the close of
business on 2 February 2026.
2024 2025 2026
(forecast)
Dividends paid/forecast for the financial year (pence) 4.50 4.75 6.6
Increase in dividend year-on-year 1.7% 5.6% 38.3%
Share price(1) 121.00 150.00 168.00
Yield(1) 3.7% 3.2% 3.9%
(
1
) Based on the share price at 30
November 2024, 30 November 2025 and 2 February 2026, respectively.
The Company may also continue to write options to generate revenue return,
although the portfolio managers’ focus is on investing the portfolio to
generate an optimal level of total return without striving to meet an annual
income target and will only undertake option transactions to the extent that
the overall contribution is beneficial to total return.
This dividend target should not be interpreted as a profit forecast.
Gearing
The Company operates a flexible gearing policy
which depends on prevailing market conditions. It is not intended that gearing
will exceed 20% of the gross assets of the Company. The maximum gearing used
during the period was 13.9%, and the level of gearing at 30 November 2025 was
4.0%. Average gearing over the year to 30 November 2024 was 7.1%. For
calculations, see the Glossary contained within the Annual Report and
Financial Statements.
Management of share rating
The Directors recognise the importance to
investors that the Company’s share price should not trade at a significant
premium or discount to NAV, and therefore, in normal market conditions, may
use share repurchases, sales of shares from treasury and share issues to
ensure that the share price is broadly in line with the underlying NAV.
Discounts across the closed end funds sector remained wide over the period
under review, driven by ongoing uncertainty around interest rates, cost
inflation and global economic growth, and heightened by an accelerated stream
of retail selling in the run-up to the UK Budget. Against this challenging
backdrop, the Company’s shares started the year under review trading at a
discount of 12.1% and ended the year at 8.7%, which compared favourably to a
closed end fund sector average (excluding 3i) of 11.5% and an average for the
AIC Commodities and Natural resources peer group of 12.0% at 30 November 2025.
The Board stepped in to actively manage the discount, buying back 10,283,000
shares in the year under review at a cost of £12,480,000. This discount
management activity has continued since the year end, and up to 2 February
2026, the Company repurchased 9,071,500 ordinary shares for a net
consideration of £15,939,000. It is pleased to note that as at 2 February
2026, the Company's discount had narrowed further.
The Board’s objectives in exercising the buy back are to seek to minimise
share price volatility and encourage the Company’s share price to trade
within as tight a range as possible, taking into account the various factors
described above.
Your Board will continue to monitor the Company’s share rating and may
deploy its powers to support it by issuing or buying back the Company’s
shares where it believes that it is in shareholders’ long-term best
interests to do so.
Consumer Duty Value Assessment
The Manager has conducted an annual value
assessment on the Company in line with FCA rules set out in the Consumer Duty
regulation. The assessment focuses on the nature of the product, including
benefits received and its quality, limitations that are part of the product,
expected total costs to clients and target market considerations. Within this,
the assessment considers quality of services, performance of the Company
(against both relevant reference indices and peers), total costs associated
with the product (including management fees and other operating costs), and
also considers whether all consumers, including vulnerable consumers, are able
to receive fair value from the product.
The Manager has concluded that the Company is providing good value based on
the above assessment.
Annual general meeting arrangements
The AGM will be held in person at 12:00 p.m. on
Wednesday, 25 March 2026 at the offices of BlackRock at 12 Throgmorton Avenue,
London EC2N 2DL. The Board very much looks forward to meeting shareholders and
we encourage you to attend this year’s AGM. A buffet lunch and refreshments
will be available to all shareholders joining us on the day, and the Board
look forward to meeting shareholders over lunch to discuss your views and to
answer any questions you may have. As I mention at the start of this report,
there is a particularly important vote this year, on the Continuation of the
Company (Resolution 11). This gives you an opportunity to express your support
(or not) for the Company’s current strategy. If we fail to get your support,
it could lead to the wind-up of the Company. The Board will be voting FOR
Continuation and, whether you can attend the AGM or not we urge you to vote.
For those of you who hold shares via platforms, voting is now free and
relatively straightforward on many platforms, and information on how to vote
can be found here:
https://www.theaic.co.uk/availability-on-platforms
.
In the meantime, if shareholders would like to contact me, please write to
BlackRock Energy and Resources Income Trust plc, 12 Throgmorton Avenue, London
EC2N 2DL, marked for the attention of the Chairman or email me at
Berichairman@georgeson.com
.
Outlook
The Energy Transition remains a key megatrend
for the global economy, and the rapid innovations in AI are driving even
greater power demands. Multiple energy solutions are likely to be needed to
meet these requirements, with the commodity intensive nature of renewables,
EVs and battery storage driving increasing demand for critical raw materials
such as lithium from the Mining sector. The flexibility of your Company’s
investment mandate, with the ability to shift exposure between Mining,
Traditional Energy and Energy Transition sectors, means that it is uniquely
positioned to capitalize on these trends and serve investors as these sectors
evolve.
The Board is confident that the Company offers investors exposures which would
be hard to replicate through passive indices and remains well-placed to
benefit from these key investment trends over the long term.
ADRIAN BROWN
5 February 2026
Investment Managers’ report
Market overview
The Company delivered a positive year in 2025,
with a NAV return of 23.5% and share price return of 28.8%, both of which were
ahead of our reference index which returned 17.9%. This was achieved with
decisive changes in the positioning of the Company during the year,
recognizing the impact of geopolitical events, particularly related to US
trade tariff policy and opportunity presented by significant moves in global
stock markets. The ability to gain exposure to selected energy transition
companies played an important factor in delivering returns. The Company’s
decision five years ago, to include energy transition alongside mining and
Traditional Energy companies, was a recognition of the major structural
changes taking place in the global energy system. The latest year’s
performance builds on prior years and takes the Company’s five-year NAV
return to 144.0% and share price return to 155.2% (all percentages in British
Pound Sterling terms with dividends reinvested).
Over the year, global stock markets moved higher, with some of the largest
companies in the world continuing to see positive investment momentum, linked
to the buildout of artificial intelligence (AI) data centres needed for
training new large language models. A combination of US import tariff related
uncertainty and China’s announcement of a DeepSeek AI model contributed to a
market sell-off in April. However, trade agreements and announcements of
further increases in AI investment plans by US hyperscalers (large-scale cloud
service providers) drove further earnings upgrades for many associated
companies, supporting a market recovery.
A focus on the large power requirements of AI and increased demand for
critical raw materials necessary for today’s technologies was evident
throughout the year. US related clean power companies, which have faced
numerous headwinds to market sentiment in recent years, performed strongly
following US energy policy clarification with the passing of the One Big
Beautiful Bill Act (OBBBA).
Increasingly, supply of power and of critical raw materials is viewed as a
matter of national security, with the US government taking stakes in companies
seeking to build domestic supply chains. There appeared to be particular
concern around the over-reliance on China for refined production of a number
of commodities. Certain rare earth minerals were subject to increased
restrictions during US-China trade talks, including those needed for powerful
rare earth magnets (NdFeB magnets)(1) used in electric vehicle (EV) motors,
electronics, medical devices and other critical industrial and defence
applications. The price of copper and aluminium was well-supported, up 26.3%
and 10.3% respectively. On the supply side, there has been major production
disruption at copper mines Kamoa-Kakula, Cobre Panama and a mudslide with
tragic consequences at Grasberg in Indonesia. Together these account for
c.1.6mt of lost copper production, c.7% of global supply(2).
Infrastructure spend has been underpinned by AI investment, whilst
additionally in Europe, Germany announced a €500 billion infrastructure
bill, of which €100 billion was allocated to climate and transition related
investment.
Another key feature of global markets was the strong rise in the gold price,
up 57.9% and also in gold equities. Elevated government debt levels and risk
of declining value of fiat currencies have been a primary driver, in our view.
Silver ended the period up 75.6%, after its price rallied through September
and October as precious metals saw notable investor inflows in the second half
of the year.
Ample global oil supply following increased oil production from new projects
in Guyana, Norway and expansion of US shale, weighed on the oil price.
OPEC’s decision to add back previously curtailed oil production to a
well-supplied oil market combined to put downward pressure on oil prices.
Despite oil prices moving lower, energy equities were supported by continuing
geopolitical risks and strong refining margins. Oil demand remained resilient
and in the second half of the year, the International Energy Agency (IEA)
revised upwards its oil demand forecasts for 2025 and for 2026(3).
(
1
) NdFeB:
Neodymium-Iron-Boron magnet is the strongest type of permanent magnet
commercially available.
(
2
) International Copper
Study Group (ICSG) “Copper Market Forecast 2025/2026” Ivanho Mines June
2025, Reuters May 2025 and September 2025.
(
3
) IEA Oil market report,
November 2025.
Commodity 30 November 30 November % change 2025 on 2024
2025 2024 Average Price %
Change(1)
Base Metals (US$/tonne)
Aluminium 2,842 2,577 10.3% 8.8%
Copper 11,234 8,892 26.3% 6.5%
Lead 1,939 2,048 -5.3% -5.2%
Nickel 14,632 15,671 -6.6% -10.1%
Tin 39,284 28,695 36.9% 11.0%
Zinc 3,280 3,109 5.5% 4.5%
--------------- --------------- --------------- ---------------
Precious Metals (US$/ounce)
Gold 4,200 2,659 57.9% 41.1%
Silver 54 31 75.6% 33.8%
Platinum 1,640 940 74.5% 25.4%
Palladium 1,448 983 47.3% 10.2%
--------------- --------------- --------------- ---------------
Energy
Oil (West Texas Intermediate) (US$/barrel) 59 68 -14.2% -13.4%
Oil (Brent) (US$/barrel) 64 74 -13.6% -14.2%
Natural Gas (US$/Metric Million British Thermal Unit) 5 3 35.4% 57.2%
--------------- --------------- --------------- ---------------
Bulk Commodities (US$/tonne)
Iron ore 107 106 0.8% -9.1%
Coking coal 198 205 -3.5% -24.7%
Thermal coal 111 142 -21.5% -20.7%
--------------- --------------- --------------- ---------------
Equity Indices
MSCI ACWI(2) Metals & Mining Index (US$) 1,616 1,301 24.2% -1.6%
MSCI ACWI(2) Metals & Mining Index (£) 1,986 1,666 19.2% -4.2%
MSCI(3) World Energy Index (US$) 536 511 4.8% 2.3%
MSCI World Energy Index (£) 673 669 0.6% -0.3%
S&P Global Clean Energy Transition Index (US$) 1,586 1,132 40.1% -3.2%
S&P Global Clean Energy Transition Index (£) 1,197 891 34.3% -5.9%
========= ========= ========= =========
Source: LSEG Datastream and Bloomberg.
(
1
) Average Price % Change
(Average of 1/12/23-30/11/24 to 1/12/24-30/11/25).
(
2
) Morgan Stanley Capital
International All Country Weighted Index.
(
3
) Morgan Stanley Capital
International.
Investment performance
The Company’s portfolio delivered a NAV
return of 23.5% for the year with strong absolute performance from the Mining
and Energy Transition sectors and a flat return from the Traditional Energy
sector. This result was a pleasing turnaround from the negative return at the
half-year stage, which was impacted by US tariff related uncertainty and
demonstrates the scale of the market moves over the year.
The ability to actively invest across the mining, energy and energy transition
sectors enabled the portfolio to benefit from market volatility over the year,
particularly via increased allocation to selected companies within the energy
transition sector. A combination of fundamental stock decisions and asset
allocation changes contributed positively to returns.
Within the energy transition holdings, Siemens Energy and GE Vernova reported
earnings growth and benefitted from an upwards re-rating in their valuations.
They reported increased demand for gas turbines for power generation, with
earnings expectations raised throughout the year. Power cable company Prysmian
also reported earnings ahead of consensus expectations, supported by a need to
connect increased renewable energy projects to the power grid. The Company
participated in capital raises by Elia and SSE and both contributed positively
to returns. A private share placing by Elia, a German/Belgian power network
business, was part of a €2.2 billion funding package to support its grid
investment plans, whilst UK utility SSE raised equity as part of an
accelerated growth program. Both capital raises were received well by the
market, and the shares subsequently rose.
Within the portfolio’s mining holdings, gold producers Firefly Metals,
Kinross Gold and gold royalty company Wheaton Precious Metals were notable
contributors, each displaying positive beta to the rise in the gold price. The
portfolio’s overweight position in Brazilian iron ore producer Vale
contributed positively to returns as the company’s share price rose with
strong cash flow generation, due to higher iron ore output with
lower-than-expected cash costs. Lynas Rare Earths is one of the few rare earth
producers outside of China and benefitted from higher rare earth prices and
positive market sentiment towards the sector, following the US government’s
stake in rare earths company MP Materials. The Company’s holding in European
cement group Heidelberg Materials contributed to returns with expectations
raised following new infrastructure investment announcements from the EU and
Germany. Validation of Abaxx Technologies’ digital commodities and carbon
exchange saw its share price rise strongly with the stock the largest positive
contributor to overall returns.
On the negative side, the notable detractors to return included a number of
Traditional Energy companies. US shale oil producer Permian Resources fell due
to lower oil prices and pipeline and energy distribution companies Targa
Resources and Cheniere, as market expectations for increased LNG supply
weighed on forward price expectations.
Within mining exposure, an operational incident at Freeport McMoRan’s
Grasberg mine in Indonesia led the company to guide the market that it was
unlikely there would be any significant production from the asset for the
remainder of the year, with a phased restart planned from 2026 through to
2027. This incident caused the stock to fall 5.3% during the period and
detract from returns. For context, the mine accounted for 3.5% of global
supply in 2024. This added to current disruption at other major copper mines,
Kamoa-Kakula and Cobre Panama.
Portfolio activity
Looking across the three sectors, exposure to
Traditional Energy was reduced throughout the year, on an expectation that a
well-supplied oil market would see oil prices trade lower. Exposure to
exploration & production companies was significantly reduced, as these
companies may typically be expected to prove less defensive in a softer oil
price environment. Exposure to selected oil majors was increased due to their
combination of strong balance sheets and diverse businesses across oil and gas
production, trading and refining. New purchases included TotalEnergies and
Chevron, whilst Galp and Repsol were added given their relative exposure to
refining, where margins continue to be well-supported.
Exposure to Energy Transition was meaningfully reduced through January and
February before being significantly increased with the passing of the OBBBA
and clarification around US energy policy. Exposure to US renewables was
increased via additions to First Solar and a new purchase of EDP Renewables.
Exposure to power grid infrastructure was increased with new purchases in
cable group Nexans, and selected utility companies. Exposure to energy storage
and power management was also increased. Exposure to Energy Transition related
industrial companies was significantly reduced where valuations had increased
significantly.
Within Mining we maintained a positive outlook for gold producers, given the
supportive factors we see as underpinning the gold price, coupled with a
benign energy cost environment, which should lead to strong conversion of
earnings to cash flow. Exposure to copper producers was maintained over the
year, however a number of smaller producers were sold as valuations expanded
with the increase in the copper price, whilst the incident at Grasberg led us
to exit Freeport, given uncertainty over a production restart. We purchased
Rio Tinto, which has copper exposure alongside its large iron ore business and
where new management appeared to support a disciplined approach to growth
investment.
Portfolio income
From a portfolio income perspective, the
increase in allocation to companies within the Energy Transition area and a
reduction in exposure to conventional energy companies, contributed to the
slight fall in portfolio income over the year. Energy Transition companies,
including wind turbine manufacturers, or solar panel manufacturers may
typically have lower dividend payments than integrated oil companies and
midstream energy pipeline companies. Commodity price movements and therefore
implications for earnings of the commodity producers were mixed, with lower
oil prices impacting on earnings and dividends for energy companies, whilst
higher metal prices were broadly positive for earnings and dividends of mining
companies.
We have previously noted that British Pound Sterling has strengthened versus
the US Dollar and this trend has continued in 2025. This will act as a
headwind for the Company’s income generation in British Pound Sterling terms
as most of the dividends from the underlying portfolio companies are paid in
US Dollars.
Gearing was reduced through the first half of the reporting period due to
trade tensions giving rise to an uncertain outlook for economic growth.
Traditional Energy
Traditional Energy companies delivered flat
returns over the period, where the Company’s holdings returned 0.0% compared
to 1.5% for the Traditional Energy portion of the benchmark.
Energy markets have contended with clear oversupply through 2024 and 2025,
with the oil price trending down, however, during this down trend, there have
been periods when the oil price has risen, due to geopolitical risk. Events in
the Middle East have been notable contributors to these risk spikes,
particularly with the targeted attacks on Iran’s nuclear facilities in early
June. The Russia-Ukraine conflict has seen certain energy related assets
targeted in drone and missile attacks. As risk of escalation or impact has
faded, so has the oil price. We noted in the half-yearly report, that the Oil
and Petroleum Exporting Countries (OPEC) plus countries had changed their
behaviour from curtailing production to support higher oil prices, to steadily
increasing oil production to maintain market share. US shale oil producers
include a number of higher-cost oil producers, which means they are typically
the marginal producer – willing to increase drilling activity under higher
oil prices and to curtail activity if prices fall below the cost of drilling.
In our view, a sub-$60/barrel oil price is having an impact on the drilling
decisions of US shale companies, with the number of drilling rigs reducing.
On the demand side, there are several key trends. We remain in an oil-based
global economy with oil demand linked to global economic growth and with the
exception of the impact from Covid in 2020, global economic growth and oil
demand has continued to be positive. China and increasingly, also India, are
key oil demand growth markets, whilst oil demand in a number of developed
markets has already peaked. The electrification of transport is beginning to
impact, already estimated to be reducing oil demand by c.1.5mbpd, with EV
sales rapidly expanding year on year.
The resilience of oil demand growth has been underestimated in recent years,
as shown by Figure 4 (contained within the annual report) and the upward
revisions to future oil demand. In part, recognizing this challenge, in its
latest Energy Outlook, the IEA introduced a new “current policies
scenario”, which forecast that this could continue to increase from
c.100mbpd in 2024 to 105mbpd in 2035 and to 113mbpd by 2050. Other scenarios
suggest oil demand may peak in the 2030s. Either scenario requires continued
investment in new oil production, beyond the level we see today, to meet
expected demand, in our view.
The Company remains defensively positioned for a $50-60/bbl oil price in the
near term. However, resilient oil demand is evident by the strong refining
margins shown in Figure 5 (contained within the annual report), which are at
exceptionally high levels and it may be possible that by mid-2026, the outlook
for oil appears significantly tighter, with OPEC spare production capacity
back to lower levels.
We are beginning to see some energy companies re-focus investment on longer
duration wells, in addition to US shale oil. We expect this to be positive for
certain offshore oilfield services companies that have retained expertise in
those areas. Investment in liquified natural gas (LNG) may see large capacity
additions each year out to 2030, to support increased demand from large energy
importers including Europe, China and Japan. The Company has exposure to LNG
specialists along the supply chain, from midstream pipeline companies to the
necessary oilfield services companies and to specialists in LNG storage.
Energy Transition
Energy Transition companies have delivered
positive returns over the period, where the Company’s holdings returned
23.4% compared to 34.6% for the energy transition portion of the benchmark.
Developed market power demand has seen a prolonged period of stagnation and as
we commented on in last year’s report, we believe that we are now seeing a
positive inflection in power demand, driven by rapidly increasing adoption of
AI and electrification and reshoring of manufacturing.
One of the key changes we have seen this year is clarity on US energy policy
post the OBBBA, which removes a major headwind to energy related investment,
in our view. Policy clarity, combined with the catalyst of AI electricity
demand requirements and an expectation of lower interest rates, are likely
supportive for energy transition related investments. In Europe there is the
added factor of a need to continue to focus on energy security, following the
energy crisis in 2022. For US renewables companies, we see confirmation that
US production tax credits would continue for US utility scale projects,
coupled with import restrictions on lower cost solar panels, as providing a
strong market backdrop for selected US renewables companies selling into the
domestic market. We continue to see the Chinese solar market as oversupplied.
Companies are racing to scale the intelligence of AI models as quickly as
possible and AI data centres are capital and energy intensive. The AI arms
race is as much an energy arms race. It is estimated that c.7 GigaWatt (GW) of
new global data centre capacity will be built in 2025, with 1GW roughly
equating to the output of a nuclear power station. S&P Global Energy estimate
that by 2028, up to 44GW of additional capacity will be required by new data
centres. Powering this computing requires an all-of-the-above energy solutions
and it will therefore benefit all forms of power generation. We have already
seen agreements to restart the Three Mile Island nuclear power station in
2027/28 and a large increase in orders for combined cycle gas turbines, but
the reality is that renewable energy solutions, primarily solar + storage, are
the quickest and cheapest way to meet growing power needs.
Data centres represent 4% of US power demand today but are likely to represent
double digits, potentially as much as 15-20% of US power demand by 2030. This
means the power supply chain is increasingly likely to be the bottleneck in
the data centre ambition.
This power demand is manifesting itself in the form of increased grid
infrastructure spending, whereby latest forecasts show a material step up, in
order to meet this rising demand and connect new sources of generation. Whilst
much of investor focus has been on the computing power required to train AI
models, we believe the power demand aspect may be less well understood. We
continue to see investment opportunities related to the power grid, especially
given that valuations for many of the companies have been relatively less
impacted so far.
Mining
Mining companies have delivered strong positive
returns over the period, where the Company’s holdings returned 30.8%
compared to 19.3% for the mining portion of the benchmark.
Demand for various critical raw materials is forecast to increase, driven by
the prominent technological growth trends previously mentioned: artificial
intelligence, renewable energy, energy storage and electric vehicles. Given
supply constraints, we see potential for certain metals to deliver
higher-than-anticipated prices, to bring about increased supply and for this
outcome to drive better-than-expected earnings for producers.
Capital discipline by the mining industry over the decade means that we see
relatively limited scope for copper supply growth, yet with copper a key metal
in many of today’s technologies, as highlighted in Figure 9 (contained
within the annual report), demand growth may outstrip supply. If the world’s
copper demand rises as forecast, by over 3 million tonnes by 2028, we will
require the equivalent again of the current top 5 copper producing mines in
the world. Metals that may be substitutes for copper in certain applications
may also see increased demand, including aluminium. China has placed
restrictions on aluminium exports, which may further tighten the industrial
metals space.
Critical raw materials were in focus throughout the year, where demand for
various metals and minerals is increasing, driven by prominent technological
growth trends: artificial intelligence, renewable energy, energy storage and
electric vehicles. Certain rare earth minerals were subject to increased
restrictions during US-China trade talks, including those needed for powerful
rare earth magnets (NdFeB magnets) used in EV motors, electronics, medical
devices and other critical industrial and defence applications. The US
Government announced direct investment in rare earth minerals group MP
Materials, which was supportive for other rare earth producers, including the
Company’s position in Lynas Rare Earths, which returned 103% over the year.
China is the largest source of demand for many mined commodities. Whilst
Chinese property related development remains at lower levels, other industries
have seen commodity demand increase, for example the continued rapid build out
of renewable power, solar and onshore wind and the growth in Chinese EV
manufacturing. Global solar power capacity added in 2024 was c.600GW, of which
c.330GW was installed in China.
The mining industry is faced with the challenge of meeting the increased
demand for the metals and minerals, given the materials intensity of today’s
technologies. In order to do this, the commodity price needs to be sufficient
to incentivise new production capital expenditure.
Valuations of mining companies are at a level where it typically remains
cheaper to buy production than to build a new mine and we see this as
supporting mergers and acquisitions in the sector. For example, Anglo American
announced a bid for Teck Resources, during the year to create a leading global
copper producer.
Gold rose strongly through the year, +58%, with performance primarily been
driven by the “risk aversion towards currencies” in our view. Investors
and central banks have sought gold as a hedge against the declining value of
paper currencies, impacted by high government debt to fund expanding
commitments. The debt to GDP ratio has passed 100% in several major economies:
US, UK, Italy, France, Canada with interest payments on the debt rising now
that interest rates are no longer close to zero. Inflation remains above
central bank targets, contributing to an erosion of purchasing power of
currency. For central banks and investors seeking to diversify away from the
US Dollar, gold may have appeared attractive.
We entered 2025 with a positive view on gold equities, in contrast with 2024
where a more cautious view was held. The difference was due to the cost
environment for gold producers: where we saw higher costs impacting on profit
margins in 2024, by 2025, energy prices were moving lower. Other costs such as
raw materials and labour inflation appeared to be past recent higher levels,
and we expected higher gold prices to translate to higher cash flows. The move
in the gold price was greater than expected, and this outlook proved correct,
with companies returning increased cash flow to shareholders via dividends and
share buybacks. Gold producers are not part of the reference index and
contributed to relative performance.
Gold producers have the ability to add value though new production and
operational efficiency, in addition to benefitting from a higher gold price
and following the moves in 2025 we see a need to focus on those companies able
to maintain capital discipline, in order that profitability is maintained.
Outlook
The build out of AI data centres and the
necessary supporting infrastructure has grabbed many headlines, with strong
performance from a number of perceived beneficiaries. The build out of AI
infrastructure means a shift toward capital intensive investment and comes on
top of existing electrification trends. We expect power demand to be met via
multiple energy solutions, however renewables plus battery storage look to be
a key part of the solution to meeting the near-term power needs and are also
recovering from previously depressed valuation levels.
The commodity intensive nature of renewables, EVs and battery storage is
positive for demand trends for critical raw materials. A new focus on security
of supply may support pricing in certain materials to incentivise domestic
supply chains. Near term, the mining sector faces a headwind of uncertainty
surrounding China’s economy, however this has been more than offset by tight
supply in a number of metals, including copper, which has resulted in higher
commodity prices. That said, the country’s anti-involution measures, which
aim to reduce the negative effect from overcapacity in the domestic market,
could be a cause for optimism, whilst trade relations with the US remain at
risk. On the supply side, capital discipline of recent years means a lack of
shovel-ready projects to meet demand, and this is likely to drive further M&A
activity as companies seek to add production at lower cost than developing a
new mine. Gold producer equities look attractive in our view, where analyst
expectations do not appear to reflect current gold prices and investors have
only recently begun to add exposure.
Amidst a strong bout of non-OPEC growth, and assuming current production rates
from OPEC+ are maintained, global oil markets look significantly oversupplied
as we head into the first half of calendar 2026. In the absence of any
meaningful changes in supply, we see oil prices having to slide lower to help
balance markets in the first half of the year. However, with US oil rig counts
already down 20% from an April 2025 peak of 450 (and peak of 572 in 2022), we
expect US shale oil growth to reverse through the course of next year.
Combined with a slowdown in new project start-ups from non-OPEC countries,
global balances should tighten again in the latter part of 2026. Importantly,
as we look into the period beyond 2026 we believe supply growth will need to
come from increasingly higher cost regions. As demand remains resilient, oil
prices will need to rise to incentivise some combination of higher supply
and/or lower demand. Production companies with asset duration will fare well
in this environment and a new cycle of upstream investment will benefit
well-positioned oilfield services companies in the years ahead. Geopolitical
risk was a feature immediately following the Company's financial year-end,
supporting oil prices, with US naval build up offshore Venezuela and a
blockade of sanctioned oil tankers ahead of the removal of President Maduro
from power by the US.
TOM HOLL AND MARK HUME
BLACKROCK INVESTMENT MANAGEMENT (UK) LIMITED
5 February 2026
Distribution of investments as at 30 November 2025
Asset Allocation – Geography
Global¹ 53.2%
United States 14.1%
Brazil 6.2%
Canada 6.1%
Germany 5.0%
United Kingdom 3.9%
Italy 2.8%
France 1.6%
Africa 1.5%
Spain 1.5%
Morocco 1.1%
Australia 1.0%
Latin America(2) 0.8%
South Africa 0.7%
Ireland 0.5%
(
1
) Global relates
to companies having businesses and operations in multiple countries and
territories.
(
2
) Latin America
represents Argentina.
Source: BlackRock.
Asset Allocation – Commodity/sub-sectors
Traditional Energy 23.5%
Integrated 11.8%
Oil Services 4.7%
Exploration & Production 3.5%
Refining & Marketing 1.8%
Distribution 1.7%
Energy Transition 34.9%
Electrification 12.9%
Renewables 12.7%
Storage 5.3%
Energy Efficiency 4.0%
Mining 41.6%
Diversified 25.0%
Gold 5.0%
Copper 4.0%
Industrial Minerals 2.9%
Steel 1.1%
Silver 1.1%
Aluminium 1.1%
Platinum Group Metals 0.7%
Metals & Mining 0.4%
Nickel 0.3%
Source: BlackRock.
Ten largest investments
Together, the Company’s ten largest investments represented 41.3% of the
Company’s portfolio as at 30 November 2025 (2024: 32.5%)
1
▲
Abaxx Technologies (2024: 30th)
Diversified mining group
Market value: £14,259,000
Share of investments: 7.5%(1)(2024: 1.3%)
A financial software and market infrastructure company focused on developing
technology for global commodity exchanges and digital marketplaces, which owns
and operates Abaxx Exchange and Abaxx Clearing.
2
▲
Vale
(2024: 8th)
Diversified mining group
Market value: £11,830,000
Share of investments: 6.2%(2)(2024: 2.8%)
One of the largest mining groups in the world, with operations in 30
countries. Vale is the world’s largest producer of iron ore and iron ore
pellets, and the world’s largest producer of nickel. The group also produces
manganese ore, ferroalloys, metallurgical and thermal coal, copper, platinum
group metals, gold, silver, cobalt, potash, phosphates and other fertiliser
nutrients.
3
▼
Anglo American (2024: 1st)
Diversified mining group
Market value: £8,514,000
Share of investments: 4.5% (2024: 4.6%)
A global mining group. The group’s mining portfolio includes bulk
commodities including iron ore, manganese, metallurgical coal, base metals
including copper and nickel and precious metals and minerals such as platinum
and diamonds. Anglo American has mining operations globally, with significant
assets in Africa and South America.
4
▲
Chevron Corporation (2024: n/a)
Integrated oil group
Market value: £8,427,000
Share of investments: 4.4% (2024: n/a)
One of the world’s largest publicly listed globally integrated energy
companies. With core assets in the prolific Permian Basin of West Texas, and a
large position in the world-class Guyana Stabroek license, the company has
ample duration and quality across its portfolio. Following the completion of
the Hess merger in 2025, the company has also embarked on a substantive cost
reduction program which should help deliver further margin accretion in the
years ahead.
5
▼
Shell (2024: 4th)
Integrated oil group
Market value: £6,488,000
Share of investments: 3.4% (2024: 2.9%)
One of the largest integrated energy companies globally with five main
operating segments: Integrated Gas, Upstream, Marketing, Chemicals and
Products, and Renewables and Energy Solutions. The company has a high quality,
gas/liquified natural gas (LNG)-weighted portfolio.
6
▲
Siemens Energy (2024: 55th)
Renewables
Market value: £6,417,000
Share of investments: 3.4% (2024: 0.6%)
Spun out of Siemens AG in 2020, Siemens Energy is one of the world’s leading
energy technology companies. Its business spans conventional (gas turbines)
and renewable (wind turbines) power generation as well as grid and
transmission/distribution equipment such as transmission gear, transformers,
switchgear and grid integration. As the world continues on a multi-decade path
towards electrification, the company is in a strong position to deliver
bespoke solutions to its end customers.
7
▲
Glencore (2024: 10th)
Diversified mining group
Market value: £6,012,000
Share of investments: 3.2% (2024: 2.7%)
One of the world’s largest diversified natural resource companies and a
leading producer and marketer of more than 60 commodities, operating an
integrated mining, processing, logistics and trading platform across over 35
countries. Leveraging sizable positions in copper, cobalt, nickel, zinc and
other transition metals alongside a cash generative coal business, the group
is increasingly orienting its portfolio toward materials critical to global
electrification while using its scale and marketing expertise to capture value
across the commodity supply chain.
8
▲
SSE (2024: 46th)
Renewables
Market value: £5,753,000
Share of investments: 3.0% (2024: 0.9%)
A leading energy company in the UK and Ireland, focused on electricity
networks and renewable energy generation and is a major player in onshore and
offshore wind, hydro power, and electricity transmission and distribution
networks.
9
▲
First Solar (2024: 50th)
Renewables
Market value: £5,483,000
Share of investments: 2.9% (2024: 0.8%)
First Solar manufactures photovoltaic (solar PV) modules for large-utility
scale projects. With a large domestic manufacturing and supply chain
footprint, the company looks set to benefit from the ongoing
reindustrialisation and power demand growth in the United States.
10
▲
Prysmian (2024: 19th)
Storage
Market value: £5,327,000
Share of investments: 2.8% (2024: 1.9%)
Headquartered in Italy, Prysmian is the world’s largest cable manufacturer
by sales. The company provides high voltage direct and alternating current
(HVDC and HVAC) cabling to connect large scale power generation facilities to
electric grids. The company specialises in high-voltage and subsea cables
positioning it well for the continued electrification of the world’s global
power system.
(
1
) 5.1% relates to
interest in fixed income investments which is unlisted and held at fair value.
(
2
) 1.3% relates to
interest in Vale shareholder debentures.
All percentages reflect the value of the holding as a percentage of total
investments.
Arrows indicate the change in relative ranking of the position in the
portfolio compared to its ranking as at 30 November 2024.
Percentages in brackets represent the value of the holding as at 30 November
2024.
Investments as at 30 November 2025
Main Market % of
geographic value investments
exposure £’000
Mining
Diversified
Abaxx Technologies 7.0% 21/03/2028 – convertible debtentures(1,2) Global 9,754 } 7.5
Abaxx Technologies Global 4,505
Vale Brazil 9,351 } 6.2
Vale Debentures(3,4) Brazil 2,479
Anglo American Global 8,514 4.5
Glencore Global 6,012 3.2
Rio Tinto Global 3,587 1.9
Teck Resources Global 1,706 0.9
BHP Global 1,459 0.8
--------------- ---------------
47,367 25.0
========= =========
Gold
Firefly Metals Canada 3,692 1.9
Wheaton Precious Metals Global 2,705 1.4
Allied Gold Corporation 8.75% 07/09/2028(4) Africa 2,016 1.1
Kinross Gold Global 1,174 0.6
--------------- ---------------
9,587 5.0
========= =========
Copper
Freeport-McMoran United States 2,270 1.2
Foran Mining Canada 1,592 0.8
Ngex Minerals Latin America 1,507 0.8
Ivanhoe Electric United States 1,474 0.8
First Quantum Minerals Global 763 0.4
LunR Royalties(1,2) Canada 5 –
--------------- ---------------
7,611 4.0
========= =========
Industrial Minerals
Heidelberg Materials Global 1,920 1.0
Lynas Corporation Australia 1,892 1.0
Albemarle Global 1,768 0.9
--------------- ---------------
5,580 2.9
========= =========
Steel
ArcelorMittal Global 2,083 1.1
--------------- ---------------
2,083 1.1
========= =========
Silver
Aya Gold & Silver Morocco 2,057 1.1
--------------- ---------------
2,057 1.1
========= =========
Aluminium
Hydro Global 2,003 1.1
--------------- ---------------
2,003 1.1
========= =========
Platinum Group Metals
Valterra Platinum South Africa 1,423 0.7
--------------- ---------------
1,423 0.7
========= =========
Metals & Mining
Ivanhoe Mines Africa 835 0.4
--------------- ---------------
835 0.4
========= =========
Nickel
Lifezone Metals Global 656 0.3
--------------- ---------------
656 0.3
========= =========
Uranium
Cameco Canada 25 –
--------------- ---------------
25 –
========= =========
Total Mining 79,227 41.6
========= =========
Energy Transition
Electrification
EDP Renováveis Global 5,270 2.8
RWE Germany 4,758 2.5
Centerpoint Energy United States 3,993 2.1
Nexans France 2,965 1.6
Spie Global 2,246 1.2
Centrica United Kingdom 1,716 0.9
Talen Energy United States 1,298 0.7
Vistra United States 1,080 0.6
Howmet Aerospace United States 880 0.5
--------------- ---------------
24,206 12.9
========= =========
Renewables
Siemens Energy Global 6,417 3.4
SSE United Kingdom 5,753 3.0
First Solar Global 5,483 2.9
Vestas Wind Systems Global 5,038 2.6
Grenergy Renovables Spain 1,429 0.8
--------------- ---------------
24,120 12.7
========= =========
Storage
Prysmian Italy 5,327 2.8
Elia Group Germany 4,759 2.5
--------------- ---------------
10,086 5.3
========= =========
Energy Efficiency
Schneider Electric Global 3,336 1.8
Trane Technologies United States 2,338 1.2
Kingspan Group Ireland 937 0.5
Vertiv Holdings Global 864 0.5
--------------- ---------------
7,475 4.0
========= =========
Total Energy Transition 65,887 34.9
========= =========
Traditional Energy
Integrated
Chevron Corporation Global 8,427 4.4
Shell Global 6,488 3.4
TotalEnergies Global 3,527 1.9
Suncor Energy Canada 1,773 0.9
Repsol Spain 1,253 0.7
Galp Energia Global 1,013 0.5
Gazprom(1,5) Russia – –
--------------- ---------------
22,481 11.8
========= =========
Oil Services
NiSource United States 4,731 2.5
Gaztransport & Technigaz Global 2,497 1.3
TechnipFMC Global 1,370 0.7
Téchnicas Reunidas Global 449 0.2
--------------- ---------------
9,047 4.7
========= =========
Exploration & Production
Canadian Natural Resources Canada 2,140 1.1
Permian Resources United States 1,891 1.0
Arc Resources Canada 1,370 0.7
California Resources United States 1,342 0.7
--------------- ---------------
6,743 3.5
========= =========
Refining & Marketing
HF Sinclair Corporation United States 2,108 1.1
Alimentation Couche-Tard Canada 1,271 0.7
--------------- ---------------
3,379 1.8
========= =========
Distribution
Cheniere Energy United States 1,792 0.9
Targa Resources United States 1,561 0.8
--------------- ---------------
3,353 1.7
========= =========
Total Energy Transition 45,003 23.5
========= =========
Total Portfolio 190,117 100.0
Comprising:
Equity and debt investments 190,117 100.0
--------------- ---------------
190,117 100.0
========= =========
(
1
) Investment is a Level
3 investment.
(
2
) Investment is unlisted
and is held at fair value.
(
3
) The investment in the
Vale debentures is illiquid and has been valued using secondary market pricing
information provided by the Brazilian Financial and Capital Markets
Association (ANBIMA).
(
4
) Investment is a Level
2 investment.
(
5
) The investment in
Gazprom has been valued at a nominal value of RUB0.01 as secondary listings of
the depositary receipts on Russian companies have been suspended from trading.
All investments are ordinary shares unless otherwise stated. The total number
of holdings (including options) at 30 November 2025 was 68 (2024: 74).
There were no open options as at 30 November 2025 (2024: one option).
The equity and fixed income investment total of £190,117,000 (2024:
£189,752,000) above before the deduction of the negative option valuation of
£nil (2024: £51,000) represents the Group’s total investments held at fair
value as reflected in the Consolidated and Parent Company Statements of
Financial Position. The table above excludes cash and gearing; the level of
the Group’s gearing may be determined with reference to the bank overdraft
of £6,869,000 (2024: £25,944,000) and cash and cash equivalents of £nil
(2024: £3,714,000) that are also disclosed in the Consolidated and Parent
Company Statements of Financial Position. Details of the AIC methodology for
calculating gearing are given in the Glossary contained within the Annual
Report and Financial Statements.
As at 30 November 2025, the Company did not hold any equity interests
comprising more than 3% of any company’s share capital.
Strategic report
The Directors present the Strategic Report of the Company for the year ended
30 November 2025. The aim of the Strategic Report is to provide shareholders
with the information required to enable them to assess how the Directors have
performed in their duty to promote the success of the Company for the
collective benefit of shareholders.
The Chairman’s Statement together with the Investment Managers’ Report and
the Section 172 Statement set out how the Directors promote the success of the
Company form part of the Strategic Report. The Strategic Report was approved
by the Board at its meeting on 5 February 2026.
Business and management of the Company
BlackRock Energy and Resources Income Trust plc
(the Company) is an investment trust company that has a premium listing on the
London Stock Exchange. Its principal activity is portfolio investment and
option writing. The Company’s wholly owned subsidiary is BlackRock Energy
and Resources Securities Income Company Limited (together ‘the Group’).
Its principal activity is investment dealing.
Investment trusts, like unit trusts and open-ended investment companies
(OEICs), are pooled investment vehicles which allow exposure to a diversified
range of assets through a single investment thus spreading, although not
eliminating, investment risk. In accordance with the Alternative Investment
Fund Managers’ Directive (AIFMD) the Company is an Alternative Investment
Fund (AIF). BlackRock Fund Managers Limited (the Manager) is the Company’s
Alternative Investment Fund Manager (AIFM). The management of the investment
portfolio and the administration of the Company have been contractually
delegated to the Manager. The Manager, operating under guidelines determined
by the Board, has direct responsibility for decisions relating to the running
of the Company and is accountable to the Board for the investment, financial
and operating performance of the Company.
The Company delegates fund accounting services to the Manager, which in turn
subdelegates these services to the Fund Accountant, The Bank of New York
Mellon (International) Limited. The Company sub-delegates registration
services to the Registrar, Computershare Investor Services PLC. Other service
providers include the Depositary, also performed by The Bank of New York
Mellon (International) Limited. Details of the contractual terms with these
service providers are set out in the Directors’ Report contained within the
Annual Report and Financial Statements.
Business model
The Company invests in accordance with the
investment objective. The Board is collectively responsible to shareholders
for the long-term success of the Company. There is a clear division of
responsibility between the Board and the Manager. Matters reserved for the
Board include setting the Company’s strategy, including its investment
objective and policy, setting limits on gearing, capital structure,
governance, and appointing and monitoring of the performance of service
providers, including the Manager. As the Company’s business model follows
that of an externally managed investment trust, it does not have any employees
and outsources its activities to third party service providers including the
Manager who is the principal service provider.
Investment objective
The Company’s objectives are to achieve an
annual dividend target and, over the long term, capital growth by investing
primarily in securities of companies operating in the mining and energy
sectors.
Investment policy and strategy
The Company seeks to achieve its objectives
through a focused portfolio, consisting of approximately 30 to 150 securities.
Although the Company has the flexibility to invest within this range, at 30
November 2025 the portfolio consisted of 68 investments and the detailed
portfolio listing is provided above.
There are no restrictions on investment in terms of geography or sub-sector
and, in addition to equities, other types of securities, such as convertible
bonds and debt issued primarily by mining or energy companies, may be
acquired. Although most securities will be quoted, listed or traded on an
investment exchange, up to 10% of the gross assets of the Group, at the time
of investment, may be invested in unquoted securities. Investment in
securities may be either direct or through other funds, including other funds
managed by BlackRock or its associates, with up to 15% of the portfolio being
invested in other listed investment companies, including listed investment
trusts. In order to comply with the current Listing Rules, the Company will
not invest more than 10% of its gross asset value in other listed closed-ended
investment funds which themselves may invest more than 15% of their gross
assets in other listed closed-ended investment funds. This restriction does
not form part of the Company’s investment policy. Up to 10% of the gross
assets of the Group, at the time of investment, may be invested in physical
assets, such as gold and in securities of companies that operate in the
commodities sector other than the mining and energy sectors.
No more than 15% of the gross assets of the Group will be invested in any one
company as at the date any such investment is made and the portfolio will not
own more than 15% of the issued shares of any one company, other than the
Company’s subsidiary. The Group may deal in derivatives, including options
and futures, up to a maximum of 30% of the Group’s assets for the purposes
of efficient portfolio management and to enhance portfolio returns. In
addition, the Group is also permitted to enter into stock lending arrangements
up to a maximum of 33.3% of the total asset value of the portfolio.
The Group may, from time to time, use borrowings to gear its investment policy
or in order to fund the market purchase of its own ordinary shares. This
gearing typically is in the form of an overdraft or short-term facility, which
can be repaid at any time. Under the Company’s Articles of Association, the
Board is obliged to restrict the borrowings of the Company to an aggregate
amount equal to 40% of the value of the gross assets of the Group. However,
borrowings are not anticipated to exceed 20% of gross assets at the time of
drawdown of the relevant borrowings.
The Group’s financial statements are maintained in British Pound Sterling.
Although many investments are denominated and quoted in currencies other than
British Pound Sterling, the Company does not intend to employ a hedging policy
against fluctuations in exchange rates but may do so in the future if
circumstances warrant implementing such a policy.
No material change will be made to the investment policy without shareholder
approval.
Environmental, social and governance (ESG) impact
The Board’s ESG approach is set out within
the Annual Report and Financial Statements. The direct impact of the
Company’s activities is minimal as it has no employees, premises, physical
assets or operations either as a producer or a provider of goods or services.
Neither does it have customers. Its indirect impact occurs through the
investments that it makes, and this is managed through BlackRock’s approach
to material ESG integration.
Performance
Details of the Company’s performance for the
year are given in the Chairman’s Statement above. The Investment Managers’
Report above includes a review of the main developments during the year,
together with information on investment activity within the Company’s
portfolio.
Results and dividends
The Company’s revenue earnings for the year
amounted to 3.50p per share (2024: 3.63p). Details of dividends paid and
declared in respect of the year, together with the Company’s dividend
policy, are set out in the Chairman’s Statement.
Future prospects
The Board’s main focus is the achievement of
an annual dividend target and, over the long term, capital growth. The future
of the Company is dependent upon the success of the investment strategy. The
outlook for the Company is discussed in both the Chairman’s Statement and in
the Investment Managers’ Report above.
Employees, social, community and human rights issues
The Company has no employees, and all the
Directors are non-executive, therefore, there are no disclosures to be made in
respect of employees. The Company believes that it is in shareholders’
interests to consider environmental, social and governance factors and human
rights issues when selecting and retaining investments. Details of the
Company’s policy on socially responsible investment are set out within the
Annual Report and Financial Statements.
Modern slavery act
As an investment vehicle the Company does not
provide goods or services in the normal course of business and does not have
customers. Accordingly, the Directors consider that the Company is not
required to make any slavery or human trafficking statement under the Modern
Slavery Act 2015. The Board considers the Company’s supply chain, dealing
predominantly with professional advisers and service providers in the
financial services industry, to be low risk in relation to this matter.
Directors and gender representation
The Directors of the Company are set out in the
Governance structure and Directors’ biographies contained within the Annual
Report and Financial Statements. All the Directors held office throughout the
year. The Board consists of two male Directors and two female Directors.
Key performance indicators
A number of performance indicators (KPIs) are
used to monitor and assess the Company’s success in achieving its objectives
and to measure its progress and performance. The principal KPIs are described
below:
Performance
At each meeting the Board reviews the
performance of the portfolio as well as the net asset value and share price
for the Company and compares this to the performance of other companies in the
peer group. The Company does not have a benchmark; however, the Board also
reviews performance in the context of the blended performance of the MSCI ACWI
Select Metals & Mining Producers Ex Gold and Silver IM (Mining), the MSCI
World Energy Index (Traditional Energy) and S&P Global Clean Energy Transition
Index (Energy Transition) with a 40:30:30 composite of the three indices. The
Board also monitors performance relative to a peer group of commodities and
natural resources focused funds and also regularly reviews the Company’s
performance attribution analysis to understand how performance was achieved.
This provides an understanding of how components such as sector exposure,
stock selection and asset allocation impacted performance. Information on the
Company’s performance is given in the performance record contained within
the Annual Report and Financial Statements and the Chairman’s Statement and
Investment Managers’ Report above.
Share rating
The Board monitors the level of the Company’s
premium or discount to NAV on an ongoing basis and considers strategies for
managing any premium or discount. In the year to 30 November 2025, the
Company’s share price to NAV traded in the range of a discount of 6.5% and
13.5% on a cum income basis. The average discount for the year was 9.1%.
10,283,000 shares were repurchased into treasury during the year at a total
cost of £12,480,000. Details of shares issued or repurchased since the year
end date are given in note 15 contained within the Annual Report and Financial
Statements.
Further details setting out how the discount or premium at which the
Company’s shares trade is calculated are included in the Glossary contained
within the Annual Report and Financial Statements.
Ongoing charges
The ongoing charges represent the Company’s
management fee and all other recurring operating expenses, excluding finance
costs, direct transaction costs, custody transaction charges, VAT recovered,
taxation, prior year expenses written back and certain non-recurring items,
expressed as a percentage of average daily net assets. The ongoing charges are
based on actual costs incurred in the year as being the best estimate of
future costs. The Company’s Manager has also agreed to reduce the existing
cap on ongoing charges from 1.25% to 1.15% with effect from 1 December 2024.
To the extent that the Company’s ongoing charges exceed 1.15% of average net
assets, the Manager will rebate a portion of the management fee to ensure they
remain below 1.15%. The Board reviews the ongoing charges and monitors the
expenses incurred by the Company on an ongoing basis. A definition setting out
in detail how the ongoing charges ratio is calculated is included in the
Glossary contained within the Annual Report and Financial Statements. The
Company’s ongoing charges amounted to 1.15% for the year ended 30 November
2025 (there was a management fee rebate of £28,000 applied for the year).
Dividend target and income generation
The level of income is considered at each
meeting and the Board receives detailed income forecasts. The Board also
monitors the risks and returns from option writing, and regularly reviews the
Company’s levels of distributable reserves.
The table below sets out the key KPIs for the Company. These KPIs fall within
the definition of ‘Alternative Performance Measures’ (APMs) under guidance
issued by the European Securities and Markets Authority (ESMA) and additional
information explaining how these are calculated is set out in the Glossary
contained within the Annual Report and Financial Statements.
Key Performance Indicators Year ended Year ended
30 November 30 November
2025 2024
Net asset value total return(1,2) 23.5% 15.3%
Share price total return(1,2) 28.8% 14.0%
Discount at year end(2,3) 8.7% 12.1%
Revenue earnings per share 3.50p 3.63p
Dividends per share 4.75p 4.50p
Ongoing charges(2,)(4) 1.15% 1.20%
========= =========
(
1
) This measures the
Company’s NAV and share price total returns, which assumes dividends paid by
the Company have been reinvested.
(
2
) Alternative
Performance Measures, see Glossary contained within the Annual Report and
Financial Statements.
(
3
) This is the difference
between the share price and the cum-income NAV per share.
(
4
) Ongoing charges
represent the management fee and all other recurring operating expenses
excluding finance costs, direct transaction costs, custody transaction
charges, VAT recovered, taxation, prior year expenses written back and certain
non-recurring items, expressed as a percentage of average daily net assets.
The cap on ongoing charges reduced from 1.25% to 1.15% with effect from 1
December 2024.
Principal risks
The Company is exposed to a variety of risks
and uncertainties. The Board has in place a robust process to identify, assess
and monitor the principal risks of the Company. A core element of this process
is the Company’s risk register which identifies the risks facing the Company
and assesses the likelihood and potential impact of each risk and the controls
established for mitigation. A residual risk rating is then calculated for each
risk.
The risk register is regularly reviewed, and the risks reassessed. The risk
environment in which the Company operates is also monitored and regularly
appraised. New risks are also added to the register as they are identified
which ensures that the document continues to be an effective risk management
tool.
The risk register, its method of preparation and the operation of key controls
in the Manager’s and third-party service providers’ systems of internal
control are reviewed on a regular basis by the Audit and Management Engagement
Committee. In order to gain a more comprehensive understanding of the
Manager’s and other third-party service providers’ risk management
processes, and how these apply to the Company’s business, BlackRock’s
internal audit department provides an annual presentation to the Audit and
Management Engagement Committee Chairman setting out the results of testing
performed in relation to BlackRock’s internal control processes. The Audit
and Management Engagement Committee also periodically receives presentations
from BlackRock’s Risk & Quantitative Analysis teams, and reviews Service
Organisation Control (SOC 1) reports from BlackRock and other key service
providers. The Custodian is appointed by the Company’s Depositary and does
not have a direct contractual relationship with the Company.
The Board has undertaken a robust assessment of both the principal and
emerging risks facing the Company, including those that would threaten its
business model, future performance, solvency or liquidity. The risk that
unforeseen or unprecedented events including (but not limited to) heightened
geo-political tensions such as the war in Ukraine, high inflation and the
current cost of living crisis has had a significant impact on global markets.
The Board has taken into consideration the risks posed to the Company by these
events and incorporated them into the Company’s risk register. Emerging
risks are considered by the Board as they come into view and are incorporated
into the existing review of the Company’s risk register.
Additionally, the Manager considers emerging risks in numerous forums and the
Risk and Quantitative Analysis team produces an annual risk survey. Any
material risks of relevance to the Company identified through the annual risk
survey will be communicated to the Board.
Emerging risks that have been considered by the Board over the year include
the impact of climate change, escalating geo-political conflict and
technological advances such as in Artificial Intelligence.
The key emerging risks identified are as follows:
Climate change: Investors can no longer ignore the impact that the world’s
changing climate will have on their portfolios, with the impact of climate
change on returns, including climate-related natural disasters, now
potentially significant and with the potential to escalate more swiftly than
one is able to predict. The Board receives ESG reports from the Manager on the
portfolio and the way ESG considerations are integrated into the investment
decision-making, so as to mitigate risk at the level of stock selection and
portfolio construction.
Artificial Intelligence (‘AI’): Advances in computing power means that AI
has become a powerful tool that will impact a huge range of areas and with a
wide range of applications that have the potential to dislocate established
business models and disrupt labour markets, creating uncertainty in corporate
valuations. The significant energy required to power this technological
revolution will create further pressure on environmental resources and carbon
emissions.
Geo-political risk: Geo-political tensions (including, but not limited to the
ongoing war in Ukraine, or deteriorating relations between China and the
US/other countries) have a significant negative impact on global markets, with
an increasing use of tariffs and domestic regulations making global trade more
complex and driving economic fragmentation.
The Board will continue to assess these risks on an ongoing basis. In relation
to the UK Code, the Board is confident that the procedures that the Company
has put in place are sufficient to ensure that the necessary monitoring of
risks and controls has been carried out throughout the reporting period.
The principal risks and uncertainties faced by the Company during the
financial year, together with the potential effects, controls and mitigating
factors are set out below.
Investment performance
Principal risk
The returns achieved are reliant primarily upon
the performance of the portfolio.
The Board is responsible for:
· setting the
investment strategy to fulfil the Company’s objective; and
· monitoring the
performance of the Investment Manager and the implementation of the investment
strategy.
An inappropriate investment strategy may lead to:
· poor
performance;
· widening
discount;
· a reduction or
permanent loss of capital; and
· dissatisfied
shareholders and reputational damage.
The Board is also cognisant of the long-term risk to performance from
inadequate attention to ESG issues, and in particular the impact of climate
change. More detail in respect of these risks can be found in the AIFMD Fund
Disclosures document available on the Company’s website at
www.blackrock.com/uk/individual/literature/policies/itc-disclosure-blackrock-energy-
and-resources-income-trust-plc.pdf
(http://www.blackrock.com/uk/individual/literature/policies/itc-disclosure-blackrock-energy-and-resources-income-trust-plc.pdf)
.
Mitigation/Control
To manage this risk the Board:
· regularly
reviews the Company’s investment mandate and long-term strategy;
· where
necessary, the Board seeks shareholder approval to both repurchase and issue
shares to help control the level of discount/premium at which the shares
trade. The Board also keep under review other mechanisms for reducing the
discount, including the option of offering occasional cash exits at close to
NAV;
· has set
investment restrictions and guidelines which the Investment Manager monitors
and regularly reports on;
· receives from
the Investment Manager a regular explanation of stock selection decisions,
portfolio exposure, gearing and any changes in gearing and the rationale for
the composition of the investment portfolio; and
· monitors the
maintenance of an adequate spread of investments in order to minimise the
risks associated with factors specific to particular sectors, based on the
diversification requirements inherent in the investment policy.
ESG analysis is integrated in the Manager’s investment process, as set out
within the Annual Report and Financial Statements. This is monitored by the
Board.
Income/dividend
Principal risk
The ability to pay dividends, and future
dividend growth, is dependent on a number of factors including the level of
dividends earned from the portfolio and income generated from the option
writing strategy. Income returns from the portfolio are dependent, among other
things, upon the Company successfully pursuing its investment policy.
Any change in the tax treatment of dividends or interest received by the
Company including as a result of withholding taxes or exchange controls
imposed by jurisdictions in which the Company invests may reduce the level of
dividends received by shareholders.
Mitigation/Control
The Board monitors this risk through the
receipt of detailed income forecasts and considers the level of income at each
meeting.
The Company has the ability to make dividend distributions out of special
reserves and capital reserves as well as revenue reserves to support any
dividend target. These reserves totalled £111.5 million at 30 November 2025.
In setting the dividend target each year, the Board is mindful of the balance
of shareholder returns between income and capital.
Gearing
Principal risk
The Company’s investment strategy may involve
the use of gearing, including borrowings.
Gearing may be generated through borrowing money or increasing levels of
market exposure through the use of derivatives. The Company currently has an
overdraft facility with The Bank of New York Mellon (International) Limited.
The use of gearing exposes the Company to the risk associated with borrowing.
Gearing provides an opportunity for greater returns where the return on the
Company’s underlying assets exceeds the cost of borrowing. It is likely to
have the opposite effect where the return on the underlying assets is below
the cost of borrowings. Consequently, the use of borrowings by the Company may
increase the volatility of the NAV.
Mitigation/Control
The Company’s Articles of Association limit
borrowings to an aggregate amount equal to 40% of the value of the gross
assets of the Company. However, to further manage this risk the Board does not
anticipate borrowings will exceed 20% of gross assets at the time of drawdown.
The use of derivatives, including options and futures has been limited to a
maximum of 30% of the Group’s assets.
The Investment Manager will only use gearing when confident that market
conditions and opportunities exist to enhance investment returns.
The Investment Manager reports to the Board on a regular basis the levels of
gearing in place as compared to limits set by the Board under the investment
policy and by the Manager as Alternative Investment Fund Manager (AIFM) under
the Alternative Investment Fund Managers’ Directive, as retained and
onshored in the UK (AIFMD).
The Board monitors gearing levels and will raise any queries or concerns in
respect of changes in the gearing level with the Investment Manager.
Legal and regulatory compliance
Principal risk
The Company has been approved by HM Revenue &
Customs as an investment trust, subject to continuing to meet the relevant
eligibility conditions and operates as an investment trust in accordance with
Chapter 4 of Part 24 of the Corporation Tax Act 2010. As such, the Company is
exempt from capital gains tax on the profits realised from the sale of its
investments.
Any breach of the relevant eligibility conditions could lead to the Company
losing investment trust status and being subject to corporation tax on capital
gains realised within the Company’s portfolio.
Any serious breach could result in the Company and/or the Directors being
fined or the subject of criminal proceedings or the suspension of the
Company’s shares which would in turn lead to a breach of the Corporation Tax
Act 2010.
Amongst other relevant laws and regulations, the Company is required to comply
with the provisions of the Companies Act 2006, the Alternative Investment Fund
Managers’ Directive, the Market Abuse Regulation, the UK Listing Rules,
international sanctions and the FCA’s Disclosure Guidance and Transparency
Rules.
Mitigation/Control
The Investment Manager monitors investment
movements, the level and type of forecast income and expenditure and the
amount of proposed dividends to ensure that the provisions of Chapter 4 of
Part 24 of the Corporation Tax Act 2010 are not breached. The results are
reported to the Board at each meeting.
Compliance with the accounting rules affecting investment trusts are also
carefully and regularly monitored.
The Company Secretary, Manager and the Company’s professional advisers
provide regular reports to the Board in respect of compliance with all
applicable rules and regulations. The Board and the Manager also monitor
changes in government policy and legislation which may have an impact on the
Company.
The Company’s Investment Manager, BlackRock, at all times complies with the
sanctions administered by the UK Office of Financial Sanctions Implementation,
the United States Treasury’s Office of Foreign Assets Control, the United
Nations, European Union member states and any other applicable regimes.
The Market Abuse Regulation came into force on 3 July 2016. The Board has
taken steps to ensure that individual Directors (and their Persons Closely
Associated) are aware of their obligations under the regulation and has
updated internal processes, where necessary, to ensure the risk of
non-compliance is effectively mitigated.
Operational
Principal risk
The Company relies on the services provided by
third parties.
Accordingly, it is dependent on the control systems of the Manager and The
Bank of New York Mellon (International) Limited (who act as both Depositary,
Custodian and Fund Accountant and who maintain the Company’s assets,
settlement and accounting records). The Company’s share register is
maintained by the Registrar, Computershare Investor Services PLC. The security
of the Company’s assets, dealing procedures, accounting records and
adherence to regulatory and legal requirements depend on the effective
operation of the systems of the third-party service providers.
Failure by any service provider to carry out its obligations to the Company
could have a material adverse effect on the Company’s performance.
Disruption through a global IT outage, a cyber-attack or by way of any other
event leading to the disruption of the accounting, payment systems, custody
records and other IT systems which prevent the accurate reporting and
monitoring of the Company’s financial position and operational activities.
Inadequate succession arrangements, particularly of the Manager, could disrupt
the level of service provided.
Any significant reduction in the market value of the Company, including
through falls in its share price and increased buy-backs may result in the
Company’s size becoming unviable.
Mitigation/Control
The Fund Accountant’s and the Manager’s
internal control processes are regularly tested and monitored throughout the
year and are evidenced through their SOC 1 reports, which are subject to
review by an Independent Service Assurance Auditor. The SOC 1 reports provide
assurance in respect of the effective operation of internal controls. These
reports are provided to the Audit and Management Engagement Committee.
The Company’s financial assets are subject to a strict liability regime and
in the event of a loss of assets, the Depositary must return assets of an
identical type or the corresponding amount, unless able to demonstrate the
loss was a result of an event beyond its reasonable control.
The Board reviews the overall performance of the Manager, Investment Manager
and all other third-party service providers on a regular basis.
The Board also considers the business continuity arrangements of the
Company’s key service providers on an ongoing basis and reviews these as
part of its review of the Company’s risk register.
The Board considers the Manager’s succession plans in so far as they affect
the services provided to the Company.
The Board considers opportunities to enhance the size of the Company, monitors
any buy-backs, and has in place an ongoing charges cap.
Market
Principal risk
Market risk arises from volatility in the
prices of the Company’s investments. The price of shares of companies in the
mining, traditional energy and energy transition sectors can be volatile and
this may be reflected in the NAV and market price of the Company’s shares.
The Company invests in the mining, traditional energy and energy transition
sectors in many countries globally and will also be subject to
country-specific risk. A lack of growth in world or country-specific
industrial production may adversely affect metal and energy prices.
Companies operating within the sectors in which the Company invests will be
impacted by climate change and by new legislation governing climate change and
environmental issues, which may have a negative impact on their valuation and
share price. Market risk includes the potential impact of events which are
outside the Company’s control, including (but not limited to) heightened
geo-political tensions and military conflict, a global pandemic and high
inflation.
There is the potential for the Company to suffer loss through holding
investments in the face of negative market movements. There is also risk
related to the investment trust sector. The sector may be out of favour,
leading to higher discounts.
Companies within the sector are also at risk that high discounts allow
activist investors, whose objectives may not be aligned with other
shareholders, to secure significant stakes. The low level of retail voting at
general meetings exacerbates this risk.
Mitigation/Control
The Board considers the diversification of the
portfolio, asset allocation, stock selection, and levels of gearing on a
regular basis and has set investment restrictions and guidelines which are
monitored and reported on by the Investment Manager. The Board monitors the
implementation and results of the investment process with the Investment
Manager.
Under the Company’s investment policy, the Investment Manager has the
ability to invest in energy transition stocks and is mindful of the impact of
any shift in energy consumption towards less carbon intensive energy supply.
This is taken into account by the Investment Manager in building a well
diversified portfolio.
The Board also recognises the benefits of a closed-end fund structure in
extremely volatile markets such as those experienced during the Russia-Ukraine
and Middle East conflicts. Unlike open-ended counterparts, closed-end funds
are not obliged to sell-down portfolio holdings at low valuations to meet
liquidity requirements for redemptions. During times of elevated volatility,
restrictions and impacts on securities and markets following the Russian
invasion of the Ukraine and market stress, the ability of a closed-end fund
structure to remain invested for the long term enables the Portfolio Managers
to adhere to disciplined fundamental analysis from a bottom-up perspective and
be ready to respond to dislocations in the market as opportunities present
themselves.
The Board monitors its share register, consults regularly with shareholders
and seeks to improve engagement with retail shareholders.
Financial
Principal risk
The Company’s investment activities expose it
to a variety of financial risks that include interest rate risk and foreign
currency risk.
The Company invests in both British Pound Sterling and non-British Pound
Sterling denominated securities. Consequently, the value of investments in the
portfolio made in non-British Pound Sterling currencies will be affected by
currency movements.
Mitigation/Control
Details of these risks are disclosed in note 17
to the Financial Statements, together with a summary of the policies for
managing these risks.
Viability statement
In accordance with provision 31 of the 2018 UK
Corporate Governance Code, the Directors have assessed the prospects of the
Company over a longer period than the twelve months referred to by the
‘Going Concern’ guidelines. The Board is cognisant of the uncertainty
surrounding the outcome of the continuation vote. Notwithstanding this and
given the factors stated below, the Board expects the Company to continue for
the foreseeable future and has therefore conducted this review for a period of
five years. This is generally the investment holding period investors consider
while investing in the sector. The Board conducted this review for the period
up to the AGM in 2031.
The Board has also considered a number of other factors in its assessment,
including:
· continuation
vote to be passed at the AGM which is to be held on 25 March 2026;
· portfolio
liquidity;
· setting the
investment strategy to fulfill the Company’s objective; and monitoring the
performance of the Investment Manager and the implementation of the investment
strategy. The Board regularly reviews the Company’s investment mandate and
long-term strategy; it has set investment restrictions and guidelines which
the Investment Manager monitors and regularly reports to the Board;
· the Company’s
revenue and expense forecasts. The Board is confident that the Company’s
business model remains viable and that there are sufficient resources to meet
all liabilities as they fall due for the period under review;
· the Company’s
borrowing facility and the fact that the Company continues to meet its
financial covenants in respect of this facility;
· the long-term
risk to performance from inadequate attention to ESG issues, and in particular
the impact of climate change. ESG analysis is integrated in the Manager’s
investment process. This is monitored by the Board;
· the principal
risks and uncertainties as set out above and the fact that the Company has
appropriate controls and processes in place to manage these and to maintain
its operating model;
· the operational
resilience of the Company and its key service providers and their ability to
continue to provide a good level of service for the foreseeable future;
· the
effectiveness of business continuity plans in place for the Company and key
service providers; and
· the level of
income generated by the Company and future income forecasts.
In its assessment of the viability of the Company the Directors have noted
that:
· the Company
predominantly invests in highly liquid, large listed companies so its assets
are readily realisable;
· the Company has
gearing facilities in place and no concerns around facilities, headroom or
covenants;
· the Company’s
forecasts for revenues, expenses and liabilities are relatively stable, it has
largely fixed overheads which comprise a small percentage of net assets and
ongoing charges are capped at 1.15% of average net asset value; and
· the business
model should remain attractive for longer than five years unless there is
significant economic or regulatory change.
The Directors have also reviewed:
· the impact of a
significant fall in global commodity equity markets on the value of the
Company’s investment portfolio;
· the ability of
portfolio companies to pay dividends, and the Company’s portfolio yield and
ability to meet its dividend target over the longer term;
· the ongoing
relevance of the Company’s investment objective, business model and
investment policy in the current environment; and
· the level of
demand for the Company’s shares and expectations on the outcome of the
continuation vote.
Based on the results of their analysis, the Directors have concluded that
there is a reasonable expectation that the Company will be able to continue in
operation and meet its liabilities as they fall due over the period of their
assessment.
Section 172 Statement: promoting the success of BlackRock Energy and Resources
Income Trust plc
The Directors are required to explain in detail
how they have discharged their duties under Section 172(1) of the Companies
Act 2006 in promoting the success of their companies for the benefit of
members as a whole. This includes the likely consequences of their decisions
in the longer term and how they have taken wider stakeholders’ needs into
account.
As the Company is an externally managed investment company and does not have
any employees or customers, the Board considers the main stakeholders in the
Company to be the shareholders, key service providers (being the Manager and
Investment Manager, the Custodian, Depositary, Registrar and Broker) and
investee companies. The reasons for this determination, and the Board’s
overarching approach to engagement, are set out below.
Stakeholders
Shareholders
Continued shareholder support and engagement
are critical to the continued existence of the Company and the successful
delivery of its long-term strategy. The Board is focused on fostering good
working relationships with shareholders and on understanding the views of
shareholders in order to incorporate them into the Board’s strategy and
objectives in delivering long-term growth and income. The Chairman and
advisors met with a number of significant shareholders during the year in
particular in assessing their support for the forthcoming continuation vote at
the AGM this year.
Manager and Investment Manager
The Board’s main working relationship is with
the Manager, who is responsible for the Company’s portfolio management
(including asset allocation, stock and sector selection) and risk management,
as well as ancillary functions such as administration, secretarial, accounting
and marketing services. The Manager has sub-delegated portfolio management to
the Investment Manager. Successful management of shareholders’ assets by the
Investment Manager is critical for the Company to successfully deliver its
investment strategy and meet its objective. The Company is also reliant on the
Manager as AIFM to provide support in meeting relevant regulatory obligations
under the AIFMD and other relevant legislation.
Other key service providers
In order for the Company to function as an
investment trust with a listing on the premium segment of the official list of
the Financial Conduct Authority (FCA) and trade on the London Stock
Exchange’s (LSE) main market for listed securities, the Board relies on a
diverse range of advisors for support in meeting relevant obligations and
safeguarding the Company’s assets. For this reason, the Board considers the
Company’s Custodian, Depositary, Registrar and Broker to be stakeholders.
The Board maintains regular contact with its key external service providers
and receives regular reporting from them through the Board and committee
meetings, as well as outside of the regular meeting cycle.
Investee companies
Portfolio holdings are ultimately
shareholders’ assets, and the Board recognises the importance of good
stewardship and communication with investee companies in meeting the
Company’s investment objective and strategy. The Board monitors the
Manager’s stewardship activities and receives regular feedback from the
Manager in respect of meetings with the management of portfolio companies.
A summary of the key areas of engagement undertaken by the Board with its key
stakeholders in the year under review and how Directors have acted upon this
to promote the long-term success of the Company are set out below.
Area of Engagement
Investment Mandate and
Objective
Issue
The Board is committed to promoting the role
and success of the Company in delivering on its investment mandate to
shareholders over the long term. However, the Board recognises that the
sectors in which the Company invests are undergoing structural changes, with a
gradual shift in the energy sector away from carbon-based energy supplies
towards alternative and renewable energy sources. The extractive industries in
which the companies in the Company’s investment universe operate are facing
ethical and sustainability issues that cannot be ignored by asset managers and
investment companies alike. More than ever, consideration of material ESG
information and sustainability risks is an important element of the investment
process. The Board also has responsibility to shareholders to ensure that the
Company’s portfolio of assets is invested in line with the stated investment
objective and in a way that ensures an appropriate balance between spread of
risk and portfolio returns.
Engagement
The Board believes that responsible investment
and sustainability are integral to the longer-term delivery of growth in
capital and income and has worked very closely with the Manager throughout the
year to regularly review the Company’s performance, investment strategy and
underlying policies to ensure that the Company’s investment objective
continues to be met in an effective, responsible way that is transparent to
current and future investors.
In addition to six scheduled Board meetings a year, the Board holds a Strategy
Day which is dedicated to an in depth review of the Company’s strategy in
conjunction with key advisors including the Company’s broker, public
relations and marketing teams and members of BlackRock’s portfolio
management and risk analytics teams.
The Manager’s approach to the consideration of ESG factors in respect of the
Company’s portfolio, as well as its engagement with investee companies to
encourage the adoption of sustainable business practices which support
long-term value creation, are kept under review by the Board.
The Manager reports to the Board in respect of its consideration of ESG
factors and how these are integrated into the investment process; a summary of
BlackRock’s approach to material ESG integration is set out within the
Annual Report and Financial Statements.
In order to assess the support for the investment mandate, the Board decided
to offer a continuation vote at the 2026 AGM in line with best corporate
governance.
Impact
The portfolio activities undertaken by the
Investment Manager can be found in the Investment Managers’ Report above.
The Board does not formally benchmark the Company’s performance against
mining and energy sector indices because meeting a specific dividend target is
not within the scope of these indices and also because no index appropriately
reflects the Company’s blended exposure to the Energy (including the energy
transition) and mining sectors. For internal monitoring purposes, however, the
Board compares the performance of the portfolio against a bespoke composite
index. The neutral sector weightings of this bespoke index are 40% Mining, 30%
Traditional Energy and 30% Energy Transition, as measured (respectively) by
the MSCI ACWI Select Metals & Mining Producers Ex Gold and Silver IMI Index,
the MSCI World Energy Index and the S&P Global Clean Energy Transition Index.
The result of the continuation vote will be announced subsequent to the AGM on
25 March 2026.
Details regarding the Company’s Key Performance Indicators can be found in
this Strategic Report contained within the Annual Report and Financial
Statements.
Management of Share Rating
Issue
The Board recognises the importance to
shareholders that the market price of the Company’s shares should not trade
at either a significant discount or premium to the NAV. One of the Board’s
long-term strategic aspirations is that the Company’s shares should trade
consistently at a price close to the NAV per share.
Engagement
The Board monitors the Company’s discount on
an ongoing basis and meets with the Manager and the Company’s Broker on a
regular basis to discuss methods to try to ensure that the shares trade
neither at an excessive discount or premium to NAV, but reasonably close to
par. The Board considers both prevailing market conditions and the need to
preserve the shares trading liquidity (and the Company’s scale) in
determining the level of buy back activity. A range of discount control
mechanisms have been considered and the benefits and disadvantages of these
have been discussed at length. The Chairman and advisors also had discussions
with major shareholders during the year to seek the importance or otherwise of
the level of the Company’s discount level.
For the year under review, the Board authorised the buy back of 10,283,000
shares at a cost of £12,480,000. Since the year end and up to 2 February
2026, the Company repurchased 9,071,500 ordinary shares for a net
consideration of £15,939,000.
In addition, the Board has worked closely with the Manager to develop the
Company’s marketing strategy, with the aim of ensuring effective
communication with existing shareholders and to attract new shareholders to
the Company in order to improve liquidity in the Company’s shares and to
sustain the share rating of the Company.
Impact
The Company’s average discount for the year
to 30 November 2025 was 9.1% (2024: 10.8%) and as at 2 February 2026 the
discount stood at 8.3%. This compares to an average discount for the AIC
Commodities and Natural resources sector of 12.0% at 30 November 2025 and
10.2% at 2 February 2026.
The Company contributed during the year to a focused investment trust sales
and marketing initiative operated by BIM (UK) on behalf of the investment
trusts under its management. For the year ended 30 November 2025, the
Group’s contribution to the consortium element of the initiative, which
enables the trusts to achieve efficiencies by combining certain sales and
marketing activities, represented 0.025% per annum of its net assets (£184.7
million) as at 31 December 2025, and this contribution was matched by BIM
(UK).
Dividend target
Issue
A key element of the Company’s investment
objective is to achieve an annual dividend target. The Board is cognisant that
portfolio investments with a high yield may have lower capital growth, and
that seeking to ensure that any dividend target is covered by current year
dividend revenue may result in a lower total return. Conversely, a move to
invest a higher proportion of the portfolio in higher growth investments
(including certain energy transition stocks) may result in a lower yielding
portfolio.
Engagement
The Board reviews income forecasts and option
writing activity in conjunction with the Manager to determine the most
effective approach for meeting the dividend target whilst generating the
optimal level of total return for shareholders.
The Board aims to meet the annual target dividend primarily from a mix of
dividend income from the portfolio and revenue reserves, although this will be
supported by the distribution of the Company’s other substantial
distributable reserves (£107.7 million at 30 November 2025) if required.
Impact
The Board’s dividend target for 2025 was to
declare quarterly dividends of at least 1.125 pence per share in the year to
30 November 2025, making a total of at least 4.50 pence per share for the year
as a whole. This was increased to 1.25 pence per share during the second half
of the year making a total of 4.75 pence per share for the year as a whole.
The shortfall of 1.25 pence between earnings per share and the annual dividend
target will be funded out of the Company’s revenue reserves and
distributable reserves (£111.5 million at 30 November 2025).
The Board has decided with effect from 1 December 2025, the Board will target
a dividend in each financial year of the greater of (i) the total dividend per
share in respect of the prior year, and (ii) at least 4% of NAV per share at
the end of the preceding financial year, which equates to a minimum dividend
target for the year to 30 November 2026 of 6.57 pence per share.
The Company has sufficient distributable reserves to meet its current target
dividend for a period of 15 years.
Service levels of third party providers
Issue
The Board acknowledges the importance of
ensuring that the Company’s principal suppliers are providing a suitable
level of service: this includes the Manager in respect of investment
performance and delivering on the Company’s investment mandate; the
Custodian and Depositary in respect of their duties towards safeguarding the
Company’s assets; the Registrar in its maintenance of the Company’s share
register and dealing with investor queries and the Company’s Broker in
respect of the provision of advice and acting as a market maker for the
Company’s shares.
Engagement
The Manager reports to the Board on the
Company’s performance on a regular basis. The Board carries out a robust
annual evaluation of the Manager’s performance, its commitment and available
resources.
The Board performs an annual review of the service levels of all third-party
service providers and concludes on their suitability to continue in their
role.
The Board receives regular updates from the AIFM, Depositary, Registrar and
Broker on an ongoing basis.
Impact
All performance evaluations were performed on a
timely basis and the Board concluded that all key third-party service
providers, including the Manager were operating effectively and providing a
good level of service.
Board composition
Issue
The Board is committed to ensuring that its own
composition brings an appropriate balance of knowledge, experience and skills,
and that it is compliant with best corporate governance practice under the UK
Code, including guidance on tenure and the composition of the
Board’s committees.
Engagement
The Board reviews succession planning on an
ongoing basis. Board diversity, including gender, is taken into account when
establishing the criteria.
The Board remain focused on best Corporate Governance Practice, and in
particular the recommendation under the UK Code that Directors’ tenure is
limited to nine years. The Board does not have a formal limit on tenure.
Impact
Details of each Director’s contribution to
the success and promotion of the Company are set out in the Directors’
Report contained within the Annual Report and Financial Statements.
All Directors currently serving on the Board have tenure below the nine years
maximum limit recommended under the UK Code.
The Board’s composition currently meets all targets recommended under the
Parker Review and enshrined in recent changes to the FCA’s Listing Rules
(which set new diversity targets and associated disclosure requirements for UK
companies listed on the London Stock Exchange).
BlackRock Active Investment Stewardship engagement with portfolio companies in
the year ended 30 November 2025
Given the Board’s belief in the importance of
engagement and communication with portfolio companies, they receive regular
updates from the Manager in respect to the stewardship activity undertaken for
the year under review. The Board notes that over the year to 30 November 2025,
27 total company engagements were held with the management teams of 19
portfolio companies representing 29.2% of the portfolio by value at 30
November 2025. To put this into context, there were 65 companies in the
BlackRock Energy and Resources Income Trust plc portfolio at 30 November 2025.
Additional information is set out below.
BlackRock Energy and Resources Income Trust plc –
year ended 30 November 2025
Number of engagements held 27
Number of companies met 19
% of equity investments covered 29.2
Shareholder meetings voted at 72
Number of proposals voted on 1,024
Number of votes against management 17
% of total votes represented by votes against management 1.7
The BAIS Global Engagement and Voting Guidelines provide clients and companies
factors we consider when we engage and vote on matters that are commonly on
shareholder meeting agendas. They are not prescriptive and are applied in the
context of a company’s operating environment and an active equity portfolio
manager’s investment strategy, anchored in our fiduciary duty to clients.
BAIS undertakes the analysis related to the items on the agenda of the annual
or special shareholder meeting and makes voting recommendations to the active
portfolios managers with holdings. Any active portfolio manager may override
the BAIS recommendation if they determine that voting differently is more
aligned with the investment objectives of their fund.
Senior representatives of the active investment, legal and risk teams, reviews
and advises on amendments to BAIS’ Global Engagement and Voting Guidelines.
They also consider developments in corporate governance, related public
policy, and market norms and how these might influence BAIS’ policies and
practices.
BAIS does not act collectively with other shareholders or organizations in
voting shares. Instead, the team engages companies and makes vote
recommendations to portfolio managers based solely on our assessment of what
is most aligned with the investment objectives of clients and funds.
BAIS’ Global Engagement and Voting Guidelines are available here:
https://www.blackrock.com/corporate/literature/
publication/blackrock-active-investment-stewardship-engagement-and-voting-guidelines.pdf
(https://www.blackrock.com/corporate/literature/publication/blackrock-active-investment-stewardship-engagement-and-voting-guidelines.pdf)
.
A detailed approach to the team’s engagement priorities is available here:
https://www.blackrock.com/corporate/literature/
publication/blackrock-active-investment-stewardship-engagement-priorities.pdf
(https://www.blackrock.com/corporate/literature/publication/blackrock-active-investment-stewardship-engagement-priorities.pdf)
.
BlackRock Active Investment Stewardship(#)
BlackRock Active Investment Stewardship (BAIS)
partners with BlackRock’s active investment teams on company engagement and
voting in relation to their holdings. Through direct dialogue with company
leadership, the team seeks to understand their businesses and how they manage
risks and opportunities to deliver durable, risk-adjusted financial returns.
Generally, portfolio managers and stewardship specialists engage jointly on
substantive stewardship matters. The team’s discussions focus on topics
relevant to a company’s success over time including governance and
leadership, corporate strategy, capital structure and financial performance,
operations and sustainability-related risks, as well as macro-economic,
geopolitical and sector dynamics. The team aims to be informed investors and
generally vote in support of management teams’ recommendations when a
company has a track record of financial value creation.
Environmental, Social and Governance Approach
The Board’s approach
Environmental, social and governance (ESG)
issues can present both opportunities and risks to long-term investment
performance. The Company’s investment universe comprises sectors that are
undergoing significant structural change and are likely to be highly impacted
by increasing regulation as a result of climate change and other social and
governance factors. Your Board is committed to ensuring that we have appointed
a manager that integrates ESG considerations into its investment process and
has the skill and vision to navigate the structural transition that the
Company’s investment universe is undergoing.
More information on BlackRock’s global approach to ESG integration, as well
as activity specific to the BlackRock Energy and Resources Income Trust plc
portfolio, is set out below. BlackRock has defined ESG integration as the
practice of incorporating financially material ESG information and
consideration of sustainability risks into investment decisions in order to
enhance risk-adjusted returns. ESG integration does not change the Company’s
investment objective or constrain the Investment Managers’ investable
universe and does not mean that an ESG or impact focused investment strategy
or any exclusionary screens have been or will be adopted by the Company.
Similarly, ESG integration does not determine the extent to which the Company
may be impacted by sustainability risks. More information on sustainability
risks may be found in the AIFMD Fund Disclosures document of the Company
available on the Company’s website at
www.blackrock.com/uk/individual/literature/
policies/itc-disclosure-blackrock-energy-and-resources-income-trust-plc.pdf
(http://www.blackrock.com/uk/individual/literature/policies/itc-disclosure-blackrock-energy-and-resources-income-trust-plc.pdf)
.
The Company does not meet the criteria for Article 8 or 9 products under the
EU Sustainable Finance Disclosure Regulation (“SFDR”) and the investments
underlying this financial product do not take into account the EU criteria for
environmentally sustainable economic activities.
# As of 1 January 2025, BlackRock’s stewardship policies are
developed and implemented by two independent, specialist teams, BlackRock
Investment Stewardship (BIS) and BlackRock Active Investment Stewardship
(BAIS). While the two teams operate independently, their general approach is
grounded in widely recognized norms of corporate governance and shareholder
rights and responsibilities. BIS is responsible for engagement and voting in
relation to clients’ assets managed by certain index equity portfolio
managers. BAIS partners with BlackRock’s active investment teams on company
engagement and voting in relation to their holdings.
BlackRock’s reporting and disclosures
In terms of its own reporting, BlackRock
believes that the Sustainability Accounting Standards Board provides a clear
set of standards for reporting sustainability information across a wide range
of issues, from labour practices to data privacy to business ethics. For
evaluating and reporting climate-related risks, as well as the related
governance issues that are essential to managing them, the Task Force on
Climate-related Financial Disclosures (TCFD) provides a valuable framework.
BlackRock recognises that reporting to these standards requires significant
time, analysis, and effort. BlackRock’s 2024 TCFD report can be found at
https://www.blackrock.com/corporate/literature/continuous-disclosure-and-important-information/climate-
report-blkinc.pdf
(https://www.blackrock.com/corporate/literature/continuous-disclosure-and-important-information/climate-report-blkinc.pdf)
.
BlackRock’s approach to material ESG integration
BlackRock’s clients have a wide range of
perspectives on a variety of issues and investment themes. Given the wide
range of unique and varied investment objectives sought by our clients,
BlackRock’s investment teams have a range of approaches to considering
financially material E, S, and/or G factors. As with other investment risks
and opportunities, the relevance of E, S and/or G considerations may vary by
issuer, sector, product, mandate, and time horizon. Depending on the
investment approach, this financially material E, S and/or G data or
information may help inform due diligence, portfolio or index construction,
and/or monitoring processes of our portfolios, as well as our approach to risk
management.
BlackRock’s ESG integration framework is built upon our history as a firm
founded on the principle of thorough and thoughtful risk management. Aladdin,
our core risk management and investment technology platform, allows investors
to leverage financially material E, S and/or G data or information as well as
the combined experience of our investment teams to effectively identify
investment opportunities and investment risks. Our heritage in risk management
combined with the strength of the Aladdin platform enables BlackRock’s
approach to ESG integration.
We structure our approach around three main pillars: investment processes,
data & analytics and transparency and we support them by equipping our
employees with investment relevant E, S and/or G data, tools, and education.
More information in respect of BlackRock’s approach to material ESG
integration can be found at
https://www.blackrock.com/corporate/literature/publication/blk-esg-investment-statement-web.pdf
.
BAIS Global Engagement and Voting Guidelines
The BAIS Global Engagement and Voting
Guidelines provide clients and companies factors we consider when we engage
and vote on matters that are commonly on shareholder meeting agendas. They are
not prescriptive and are applied in the context of a company’s operating
environment and an active equity portfolio manager’s investment strategy,
anchored in our fiduciary duty to clients.
BAIS’ Global Engagement and Voting Guidelines are available here:
https://www.blackrock.com/corporate/literature/
publication/blackrock-active-investment-stewardship-engagement-and-voting-guidelines.pdf
(https://www.blackrock.com/corporate/literature/publication/blackrock-active-investment-stewardship-engagement-and-voting-guidelines.pdf)
.
BAIS Engagement priorities
The BAIS engagement priorities are the themes
on which BAIS most frequently engages with companies, where they are relevant
and a source of material business risk or opportunity. These engagement
priorities are available here:
https://www
.
blackrock.com/corporate/literature/publication/blackrock-active-investment-stewardship-engagement-priorities.pdf
(https://www.blackrock.com/corporate/literature/publication/blackrock-active-investment-stewardship-engagement-priorities.pdf)
.
The above forms part of the Strategic Report.
By order of the Board
GRAHAM
VENABLES
FOR AND ON BEHALF OF
BLACKROCK INVESTMENT
MANAGEMENT (UK) LIMITED
Company Secretary
5 February 2026
Related Party Transactions and Transactions with the AIFM and the Investment
Manager
BlackRock Fund Managers Limited (BFM) provides management and administrative
services to the Group under a contract which is terminable on six months’
notice. BFM has (with the Group’s consent) delegated certain portfolio and
risk management services, and other ancillary services to BlackRock Investment
Management (UK) Limited (BIM (UK)). Further details of the investment
management contract are disclosed in the Directors’ Report contained within
the Annual Report and Financial Statements.
The investment management fee due for the year ended 30 November 2025 amounted
to £1,305,000 (2024: £1,425,000). At the year end, £682,000 was outstanding
in respect of the management fee (2024: £1,072,000).
The Company is entitled to a rebate from the investment management fee charged
by the Manager in the event the Company’s ongoing charges exceeds the cap of
1.15% per annum of average daily net assets. Up to 30 November 2024, the cap
was 1.25% per annum of average daily net assets. The amount of rebate accrued
to 30 November 2025 amounted to £28,000 (2024: £nil).
Further details in respect of the management fee and rebate are given in note
4 below.
In addition to the above services, BIM (UK) has provided the Group with
marketing services. The total fees paid or payable for these services for the
year ended 30 November 2025 amounted to £50,000 excluding VAT (2024:
£80,000). Marketing fees of £59,000 excluding VAT (2024: £28,000) were
outstanding as at the year end.
The ultimate holding company of the Manager and the Investment Manager is
BlackRock, Inc., a company incorporated in Delaware USA.
At the date of this report, the Board consists of four non-executive
Directors, all of whom are considered to be independent of the Manager by the
Board.
Disclosures of the Directors’ interests in the ordinary shares of the
Company and fees and expenses payable to the Directors are set out in the
Directors’ Remuneration Report contained within the Annual Report and
Financial Statements. At 30 November 2025, £12,000 (2024: £12,000) was
outstanding in respect of Directors’ fees.
Statement of Directors’ responsibilities in respect of the Annual Report and
Financial Statements
The Directors are responsible for preparing the Annual Report and the
Financial Statements in accordance with applicable United Kingdom law and
regulations.
Company law requires the Directors to prepare financial statements for each
financial year. Under that law, the Directors have elected to prepare the
Group and Parent Company financial statements in accordance with UK-adopted
International Accounting Standards (IFRSs). Under company law the Directors
must not approve the financial statements unless they are satisfied that they
give a true and fair view of the state of affairs of the Group and the Company
and of the profit or loss of the Group and the Company for that period.
In preparing these financial statements, the Directors are required to:
· select suitable
accounting policies in accordance with IAS 8 Accounting Policies, Changes in
Accounting Estimates and Errors and then apply them consistently;
· present
information, including accounting policies, in a manner that provides
relevant, reliable, comparable and understandable information;
· make judgements
and estimates that are reasonable and prudent;
· in respect of
the Group financial statements, state whether UK-adopted International
Accounting Standards have been followed, subject to any material departures
disclosed and explained in the financial statements;
· provide
additional disclosures when compliance with the specific requirements in IFRSs
is insufficient to enable users to understand the impact of particular
transactions, other events and conditions on the Group and Company financial
position and financial performance;
· in respect of
the Parent Company financial statements, state whether UK-adopted
International Accounting Standards, have been followed, subject to any
material departures disclosed and explained in the financial statements; and
· prepare the
financial statements on the going concern basis unless it is inappropriate to
presume that the Group and/or the Company will continue in business.
The Directors are responsible for keeping adequate accounting records that are
sufficient to show and explain the Group’s and the Company’s transactions
and disclose with reasonable accuracy at any time the financial position of
the Group and the Company and enable them to ensure that the Group and Company
financial statements comply with the Companies Act 2006.
They are also responsible for safeguarding the assets of the Group and Parent
Company and hence for taking reasonable steps for the prevention and detection
of fraud and other irregularities.
Under applicable law and regulations, the Directors are also responsible for
preparing a Strategic Report, Directors’ Report, Directors’ Remuneration
Report, Corporate Governance Statement and the Report of the Audit and
Management Engagement Committee that comply with that law and those
regulations. The Directors have delegated responsibility to the Manager for
the maintenance and integrity of the Group’s corporate and financial
information included on the BlackRock website. Legislation in the United
Kingdom governing the preparation and dissemination of financial statements
may differ from legislation in other jurisdictions.
The Directors confirm, to the best of their knowledge:
· that the
consolidated financial statements prepared in accordance with UK-adopted
International Accounting Standards, give a true and fair view of the assets,
liabilities, financial position and profit of the Parent Company and
undertakings included in the consolidation taken as a whole;
· that the annual
report, including the strategic report, includes a fair review of the
development and performance of the business and the position of the Company
and undertakings included in the consolidation taken as a whole, together with
a description of the principal risks and uncertainties that they face; and
· that they
consider the annual report, taken as a whole, is fair, balanced and
understandable and provides the information necessary for shareholders to
assess the company’s position, performance, business model and strategy.
In order to reach a conclusion on this matter, the Board has requested that
the Audit and Management Engagement Committee advise on whether it considers
that the Annual Report and Financial Statements fulfils these requirements.
The process by which the Committee has reached these conclusions is set out in
the Audit and Management Engagement Committee’s Report contained within the
Annual Report and Financial Statements. As a result, the Board has concluded
that the Annual Report for the year ended 30 November 2025, taken as a whole,
is fair, balanced and understandable and provides the information necessary
for shareholders to assess the Group’s and the Company’s position,
performance, business model and strategy.
FOR AND ON BEHALF OF THE BOARD
ADRIAN BROWN
Chairman
5 February 2026
Consolidated statement of comprehensive income for the year ended 30 November
2025
2025 2024
Notes Revenue Capital Total Revenue Capital Total
£’000 £’000 £’000 £’000 £’000 £’000
Income from investments held at fair value through profit or loss 3 4,441 – 4,441 4,951 – 4,951
Other income 3 1,158 – 1,158 1,200 – 1,200
--------------- --------------- --------------- --------------- --------------- ---------------
Total income 5,599 – 5,599 6,151 – 6,151
========= ========= ========= ========= ========= =========
Net profit on investments and derivatives held at fair value through profit or loss – 30,463 30,463 – 18,986 18,986
Net profit on foreign exchange – 110 110 – 25 25
--------------- --------------- --------------- --------------- --------------- ---------------
Total 5,599 30,573 36,172 6,151 19,011 25,162
========= ========= ========= ========= ========= =========
Expenses
Investment management fees 4 (321) (984) (1,305) (356) (1,069) (1,425)
Other operating expenses 5 (482) (9) (491) (511) (9) (520)
--------------- --------------- --------------- --------------- --------------- ---------------
Total operating expenses (803) (993) (1,796) (867) (1,078) (1,945)
========= ========= ========= ========= ========= =========
Net profit before finance costs and taxation 4,796 29,580 34,376 5,284 17,933 23,217
Finance costs 6 (156) (469) (625) (230) (690) (920)
--------------- --------------- --------------- --------------- --------------- ---------------
Net profit before taxation 4,640 29,111 33,751 5,054 17,243 22,297
Taxation (charge)/credit (564) 184 (380) (513) 128 (385)
--------------- --------------- --------------- --------------- --------------- ---------------
Net profit for the year 4,076 29,295 33,371 4,541 17,371 21,912
========= ========= ========= ========= ========= =========
Earnings per ordinary share (pence) 8 3.50 25.18 28.68 3.63 13.87 17.50
========= ========= ========= ========= ========= =========
The total columns of this statement represent the Group’s Statement of
Comprehensive Income, prepared in accordance with UK-adopted International
Accounting Standards (IASs). The supplementary revenue and capital accounts
are both prepared under guidance published by the Association of Investment
Companies (AIC). All items in the above statement derive from continuing
operations. No operations were acquired or discontinued during the year. All
income is attributable to the equity holders of the Group.
The Group does not have any other comprehensive income/(loss) (2024: £nil).
The net profit/(loss) for the year disclosed above represents the Group’s
total comprehensive income.
Consolidated statement of changes in equity for the year ended 30 November
2025
Group Notes Called Share Special Capital Revenue Total
up share premium reserve reserves reserve £’000
capital account £’000 £’000 £’000
£’000 £’000
For the year ended 30 November 2025
At 30 November 2024 1,356 69,980 54,812 36,031 5,148 167,327
Total comprehensive income:
Net profit for the year – – – 29,295 4,076 33,371
Transactions with owners, recorded directly to equity:
Ordinary shares repurchased into treasury 9, 10 – – (12,395) – – (12,395)
Share repurchase costs 9, 10 – – (85) – – (85)
Dividends paid(1) 7 – – – – (5,404) (5,404)
--------------- --------------- --------------- --------------- --------------- ---------------
At 30 November 2025 1,356 69,980 42,332 65,326 3,820 182,814
========= ========= ========= ========= ========= =========
For the year ended 30 November 2024
At 30 November 2023 1,356 69,980 66,100 18,660 6,266 162,362
Total comprehensive income:
Net profit for the year – – – 17,371 4,541 21,912
Transactions with owners, recorded directly to equity:
Ordinary shares repurchased into treasury 9, 10 – – (11,208) – – (11,208)
Share repurchase costs 9, 10 – – (80) – – (80)
Dividends paid(2) 7 – – – – (5,659) (5,659)
--------------- --------------- --------------- --------------- --------------- ---------------
At 30 November 2024 1,356 69,980 54,812 36,031 5,148 167,327
========= ========= ========= ========= ========= =========
(
1
) 4th interim dividend
of 1.125p per share for the year ended 30 November 2024, declared on 28
November 2024 and paid on 7 January 2025; 1st interim dividend of 1.125p per
share for the year ended 30 November 2025, declared on 20 March 2025 and paid
on 25 April 2025; 2nd interim dividend of 1.125p per share for the year ended
30 November 2025, declared on 4 June 2025 and paid on 14 July 2025 and 3rd
interim dividend of 1.250p per share for the year ended 30 November 2025,
declared on 15 September 2025 and paid on 27 October 2025.
(
2
) 4th interim dividend
of 1.125p per share for the year ended 30 November 2023, declared on 7
December 2023 and paid on 12 January 2024; 1st interim dividend of 1.125p per
share for the year ended 30 November 2024, declared on 15 March 2024 and paid
on 26 April 2024; 2nd interim dividend of 1.125p per share for the year ended
30 November 2024, declared on 4 June 2024 and paid on 15 July 2024 and 3rd
interim dividend of 1.125p per share for the year ended 30 November 2024,
declared on 18 September 2024 and paid on 28 October 2024.
Parent company statement of changes in equity
Company Notes Called Share Special Capital Revenue Total
up share premium reserve reserves reserve £’000
capital account £’000 £’000 £’000
£’000 £’000
For the year ended 30 November 2025
At 30 November 2024 1,356 69,980 54,812 36,986 4,193 167,327
Total comprehensive income:
Net profit for the year – – – 28,340 5,031 33,371
Transactions with owners, recorded directly to equity:
Ordinary shares repurchased into treasury 9, 10 – – (12,395) – – (12,395)
Share repurchase costs 9, 10 – – (85) – – (85)
Dividends paid(1) 7 – – – – (5,404) (5,404)
--------------- --------------- --------------- --------------- --------------- ---------------
At 30 November 2025 1,356 69,980 42,332 65,326 3,820 182,814
========= ========= ========= ========= ========= =========
For the year ended 30 November 2024
At 30 November 2023 1,356 69,980 66,100 20,294 4,632 162,362
Total comprehensive income:
Net profit for the year – – – 16,692 5,220 21,912
Transactions with owners, recorded directly to equity:
Ordinary shares repurchased into treasury 9, 10 – – (11,208) – – (11,208)
Share repurchase costs 9, 10 – – (80) – – (80)
Dividends paid(2) 7 – – – – (5,659) (5,659)
--------------- --------------- --------------- --------------- --------------- ---------------
At 30 November 2024 1,356 69,980 54,812 36,986 4,193 167,327
========= ========= ========= ========= ========= =========
(
1
) 4th interim dividend
of 1.125p per share for the year ended 30 November 2024, declared on 28
November 2024 and paid on 7 January 2025; 1st interim dividend of 1.125p per
share for the year ended 30 November 2025, declared on 20 March 2025 and paid
on 25 April 2025; 2nd interim dividend of 1.125p per share for the year ended
30 November 2025, declared on 4 June 2025 and paid on 14 July 2025 and 3rd
interim dividend of 1.250p per share for the year ended 30 November 2025,
declared on 15 September 2025 and paid on 27 October 2025.
(
2
) 4th interim dividend
of 1.125p per share for the year ended 30 November 2023, declared on 7
December 2023 and paid on 12 January 2024; 1st interim dividend of 1.125p per
share for the year ended 30 November 2024, declared on 15 March 2024 and paid
on 26 April 2024; 2nd interim dividend of 1.125p per share for the year ended
30 November 2024, declared on 4 June 2024 and paid on 15 July 2024 and 3rd
interim dividend of 1.125p per share for the year ended 30 November 2024,
declared on 18 September 2024 and paid on 28 October 2024.
For information on the Company’s distributable reserves please refer to note
16 contained within the Annual Report and Financial Statements.
Consolidated and parent company statements of financial position as at 30
November 2025
30 November 2025 30 November 2024
Notes Group Company Group Company
£’000 £’000 £’000 £’000
Non current assets
Investments held at fair value through profit or loss 11 190,117 190,117 189,752 190,707
Current assets
Other receivables 11 499 499 436 3,176
Current tax asset 117 117 193 193
Cash collateral pledged with brokers – – 591 591
Cash and cash equivalents – cash at bank – – 3,714 19
--------------- --------------- --------------- ---------------
Total current assets 616 616 4,934 3,979
========= ========= ========= =========
Total assets 190,733 190,733 194,686 194,686
========= ========= ========= =========
Current liabilities
Other payables (1,050) (1,050) (1,364) (1,364)
Derivative financial liabilities held at fair value through profit or loss – – (51) (51)
Cash and cash equivalents – bank overdraft 11 (6,869) (6,869) (25,944) (25,944)
--------------- --------------- --------------- ---------------
Total current liabilities (7,919) (7,919) (27,359) (27,359)
========= ========= ========= =========
Net assets 182,814 182,814 167,327 167,327
========= ========= ========= =========
Equity attributable to equity holders
Called up share capital 9 1,356 1,356 1,356 1,356
Share premium account 10 69,980 69,980 69,980 69,980
Special reserve 10 42,332 42,332 54,812 54,812
Capital reserves 10
At 1 December 36,031 36,986 18,660 20,294
Net profit for the year 29,295 28,340 17,371 16,692
At 30 November 65,326 65,326 36,031 36,986
--------------- --------------- --------------- ---------------
Revenue reserve 10
At 1 December 5,148 4,193 6,266 4,632
Net profit for the year 4,076 5,031 4,541 5,220
Dividends paid (5,404) (5,404) (5,659) (5,659)
At 30 November 3,820 3,820 5,148 4,193
--------------- --------------- --------------- ---------------
Total equity 182,814 182,814 167,327 167,327
========= ========= ========= =========
Net asset value per ordinary share (pence) 8 164.30 164.30 137.66 137.66
========= ========= ========= =========
Consolidated and parent company cash flow statements for the year ended 30
November 2025
30 November 2025 30 November 2024
Group Company Group Company
£’000 £’000 £’000 £’000
Operating activities
Net profit before taxation(1) 33,751 33,751 22,297 22,297
Changes in working capital items:
(Increase)/decrease in other receivables (63) 2,677 182 183
Decrease in other payables (314) (314) (55) (55)
Decrease in amounts due to brokers – – (569) (569)
Other adjustments:
Finance costs 625 625 920 920
Net profit on investments and derivatives held at fair value through profit or loss (including transaction costs) (30,463) (29,508) (18,986) (17,486)
Net profit on foreign exchange (110) – (25) –
Sales of investments held at fair value through profit or loss 190,444 190,444 123,914 123,914
Purchases of investments held at fair value through profit or loss (160,397) (160,397) (119,979) (119,979)
Net movement in cash collateral held with brokers 591 591 947 947
--------------- --------------- --------------- ---------------
Net cash inflow from operating activities before taxation 34,064 37,869 8,646 10,172
Taxation on investment income included within gross income (304) (304) (448) (448)
--------------- --------------- --------------- ---------------
Net cash inflow from operating activities 33,760 37,565 8,198 9,724
========= ========= ========= =========
Financing activities
Interest paid (625) (625) (920) (920)
Shares repurchased into treasury (12,395) (12,395) (11,208) (11,208)
Share repurchase costs (85) (85) (80) (80)
Dividends paid (5,404) (5,404) (5,659) (5,659)
--------------- --------------- --------------- ---------------
Net cash outflow from financing activities (18,509) (18,509) (17,867) (17,867)
========= ========= ========= =========
Increase in cash and cash equivalents 15,251 19,056 (9,669) (8,143)
Effect of foreign exchange rate changes 110 – 25 –
Change in cash and cash equivalents 15,361 19,056 (9,644) (8,143)
Cash and cash equivalents at start of year (22,230) (25,925) (12,586) (17,782)
Cash and cash equivalents at end of year (6,869) (6,869) (22,230) (25,925)
Comprised of:
Cash at bank – – 3,714 19
Bank overdraft (6,869) (6,869) (25,944) (25,944)
--------------- --------------- --------------- ---------------
(6,869) (6,869) (22,230) (25,925)
========= ========= ========= =========
(
1
) Dividends and interest
received in cash during the year amounted to £3,567,000 and £427,000 (2024:
£4,080,000 and £436,000).
Notes to the financial statements for the year ended 30 November 2025
1. Principal activity
The principal activity of the Company is that
of an investment trust company within the meaning of Section 1158 of the
Corporation Tax Act 2010. The Company was incorporated on 4 November 2005 and
this is the eighteenth Annual Report.
2. Accounting policies
The principal accounting policies adopted by
the Group and Company are set out below.
(a) Basis of preparation
The Group and Company financial statements have
been prepared under the historic cost convention modified by the revaluation
of certain financial assets and financial liabilities held at fair value
through profit or loss and in accordance with UK-adopted International
Accounting Standards (IASs), with future changes being subject to endorsement
by the UK Endorsement Board and with the requirements of the Companies Act
2006 as applicable to companies reporting under those standards. All of the
Group’s operations are of a continuing nature. The Company has taken
advantage of the exemption provided under Section 408 of the Companies Act
2006 not to publish its individual Statement of Comprehensive Income and
related notes.
Insofar as the Statement of Recommended Practice (SORP) for investment trust
companies and venture capital trusts, issued by the Association of Investment
Companies (AIC) in October 2019 and updated in July 2022, is compatible with
UK-adopted IASs, the financial statements have been prepared in accordance
with guidance set out in the SORP.
Substantially, all of the assets of the Group and Company consist of
securities that are readily realisable and, accordingly, the Directors are
satisfied that the Group has adequate resources to continue in operational
existence for the foreseeable future for the period to 30 November 2027, being
a period of at least twelve months from the date of approval of the financial
statements and therefore consider the going concern assumption to be
appropriate. The Directors have reviewed compliance with the covenants
associated with the bank overdraft facility, income and expense projections
and the liquidity of the investment portfolio in making their assessment.
The Directors have considered the impact of climate change on the value of the
investments included in the financial statements and have concluded that there
was no further impact of climate change to be considered as the investments
are valued based on market pricing as required by IFRS 13.
None of the Group and Company’s other assets and liabilities were considered
to be potentially impacted by climate change.
The Group and Company’s financial statements are presented in British Pound
Sterling, which is the functional currency of the Group and Company and the
currency of the primary economic environment in which the Group and Company
operates. All values are rounded to the nearest thousand pounds (£’000)
except when otherwise indicated.
Adoption of new and amended International Accounting Standards and
interpretations:
IFRS 17 – Insurance
contracts
(effective 1 January 2023). This standard replaced IFRS 4 and applies to all
types of insurance contracts. IFRS 17 provides a consistent and comprehensive
model for insurance contracts covering all relevant accounting aspects.
IAS 1 – Classification of liabilities as current or non current and non
current liabilities with covenants
(effective 1 January 2024). The IASB has amended IAS 1
Presentation of Financial Statements to clarify its requirement for the
presentation of liabilities depending on the rights that exist at the end of
the reporting period. The amendment requires liabilities to be classified as
non current if the entity has a substantive right to defer settlement for at
least 12 months at the end of the reporting period. The amendment no longer
refers to unconditional rights. The IASB has also introduced additional
disclosures for liabilities with covenants within 12 months of the reporting
period. The additional disclosures include the nature of covenants, when the
entity is required to comply with covenants, the carrying amount of related
liabilities and circumstances that may indicate that the entity will have
difficulty complying with the covenants.
The amendment of this standard did not have any significant impact on the
Company.
IAS 21 – Lack of exchangeability
(effective 1 January 2025 – early adopted from 1 October
2024). The IASB issued amendments to IAS 21 The Effects of Changes in Foreign
Exchange Rates to specify how an entity should assess whether a currency is
exchangeable and how it should determine a spot exchange rate when
exchangeability is lacking. The amendments also require disclosure of
information that enables users of its financial statements to understand how
the currency not being exchangeable into the other currency affects, or is
expected to affect, the entity’s financial performance, financial position
and cash flows.
The amendment of this standard did not have any significant impact on the
Company’s operations as IAS 21 better reflects the practical considerations
of establishing fair values for the Company’s foreign currency assets.
Relevant International Accounting Standards that have yet to be adopted:
IFRS 18 – Presentation and
disclosure in financial statements
(effective 1 January 2027). The IASB issued IFRS 18, which
replaces IAS 1 Presentation of Financial Statements. IFRS 18 introduces new
requirements for presentation within the statement of profit or loss,
including specified totals and subtotals. Furthermore, entities are required
to classify all income and expenses within the statement of profit or loss
into one of five categories: operating, investing, financing, income taxes and
discontinued operations, whereof the first three are new. It also requires
disclosure of newly defined management performance measures, subtotals of
income and expenses, and includes new requirements for aggregation and
disaggregation of financial information based on the identified ‘roles’ of
the primary financial statements and the notes.
The amendment of this standard is expected to have an impact on the disclosure
and presentation of the Statement of Comprehensive Income but will not have
any impact on the accounting or financial results.
(b) Basis of consolidation
The Group’s financial statements are made up
to 30 November each year and consolidate the financial statements of the
Company and its wholly owned subsidiary, which is registered and operates in
England and Wales, BlackRock Energy and Resources Securities Income Company
Limited (together ‘the Group’).
Subsidiaries are consolidated from the date of their acquisition, being the
date on which the Company obtains control, and continue to be consolidated
until the date that such control ceases. The financial statements of
subsidiaries used in the preparation of the consolidated financial statements
are based on consistent accounting policies. All intra-group balances and
transactions, including unrealised profits arising therefrom, are eliminated.
(c) Presentation of the Consolidated Statement of Comprehensive Income
In order to better reflect the activities of an
investment trust company and in accordance with guidance issued by the AIC,
supplementary information which analyses the Consolidated Statement of
Comprehensive Income between items of a revenue and a capital nature has been
presented alongside the Consolidated Statement of Comprehensive Income.
(d) Segmental reporting
The Directors are of the opinion that the Group
is engaged in a single segment of business being investment business.
(e) Income
Dividends receivable on equity shares are
recognised as revenue for the year on an ex-dividend basis. Where no
ex-dividend date is available, dividends receivable on or before the year end
are treated as revenue for the year. Provision for bad debts is made for any
dividends not expected to be received. Special dividends, if any, are treated
as a capital or a revenue receipt depending on the facts or circumstances of
each particular case. The return on a debt security is recognised on a time
apportionment basis so as to reflect the effective yield on the debt security.
Options may be purchased or written over securities held in the portfolio for
generating or protecting capital returns, or for generating or maintaining
revenue returns. Where the purpose of the option is the generation of income,
the premium is treated as a revenue item. Where the purpose of the option is
the maintenance of capital, the premium is treated as a capital item.
Option premium income is recognised as revenue evenly over the life of the
option contract and included in the revenue account of the Consolidated
Statement of Comprehensive Income unless the option has been written for the
maintenance and enhancement of the Group’s investment portfolio and
represents an incidental part of a larger capital transaction, in which case
any premia arising are allocated to the capital account of the Consolidated
Statement of Comprehensive Income.
Deposit interest receivable is accounted for on an accruals basis.
Where the Group has elected to receive its dividends in the form of additional
shares rather than in cash, the cash equivalent of the dividend is recognised
as revenue. Any excess in the value of the shares received over the amount of
the cash dividend is recognised in capital.
(f) Expenses
All expenses, including finance costs, are
accounted for on an accruals basis. Expenses have been charged wholly to the
revenue account of the Consolidated Statement of Comprehensive Income, except
as follows:
– expenses which are incidental to the acquisition or sale of an
investment are charged to the capital account of the Consolidated Statement of
Comprehensive Income. Details of transaction costs on the purchases and sales
of investments are disclosed within note 10 to the financial statements
contained within the Annual Report and Financial Statements;
– expenses are treated as capital where a connection with the
maintenance or enhancement of the value of the investments can be
demonstrated; and
– the investment management fee and finance costs have been
allocated 25% to the revenue account and 75% to the capital account of the
Consolidated Statement of Comprehensive Income in line with the Board’s
expectations of the long-term split of returns, in the form of capital gains
and income, respectively, from the investment portfolio. The investment
management fee rebate accrued as a result of the application of the cap on
ongoing charges of 1.25% per annum of average daily net assets is offset
against management fees and is allocated between revenue and capital in the
ratio of total ongoing charges allocated between revenue and capital during
the year.
Finance costs incurred by the Subsidiary are charged 100% to revenue.
(g) Taxation
The Group accounts do not reflect any
adjustment for group relief between the Company and the Subsidiary.
The tax expense represents the sum of the tax currently payable and deferred
tax. The tax currently payable is based on the taxable profit for the year.
Taxable profit differs from net profit as reported in the Consolidated
Statement of Comprehensive Income because it excludes items of income or
expenses that are taxable or deductible in other years and it further excludes
items that are never taxable or deductible. The Group’s liability for
current tax is calculated using tax rates that were applicable at the balance
sheet date.
Where expenses are allocated between capital and revenue accounts, any tax
relief in respect of expenses is allocated between capital and revenue returns
on the marginal basis using the Company’s effective rate of corporation tax
for the accounting period.
Deferred taxation is recognised in respect of all temporary differences that
have originated but not reversed at the financial reporting date, where
transactions or events that result in an obligation to pay more taxation in
the future or right to pay less tax in the future have occurred at the
financial reporting date. This is subject to deferred taxation assets only
being recognised if it is considered more likely than not that there will be
suitable profits from which the future reversal of the temporary differences
can be deducted. Deferred taxation assets and liabilities are measured at the
rates applicable to the legal jurisdictions in which they arise.
(h) Investments held at fair value through profit or loss
In accordance with IFRS 9, the Group classifies
its investments at initial recognition as held at fair value through profit or
loss and are managed and evaluated on a fair value basis in accordance with
its investment strategy and business model.
All investments are measured initially and subsequently at fair value through
profit or loss. Purchases of investments are recognised on a trade date basis.
Sales of investments are recognised at the trade date of the disposal.
The fair value of the financial investments is based on their quoted bid price
at the financial reporting date, without deduction for the estimated selling
costs. This policy applies to all current and non-current asset investments
held by the Group.
The fair value of the investment in the subsidiary is calculated based on the
net asset value of the underlying balances within the subsidiary.
Changes in the value of investments held at fair value through profit or loss
and gains and losses on disposal are recognised in the Consolidated Statement
of Comprehensive Income as ‘Net profit/(loss) on investments and options
held at fair value through profit or loss’. Also included within the heading
are transaction costs in relation to the purchase or sale of investments.
For all financial instruments not traded in an active market, the fair value
is determined by using various valuation techniques. Valuation techniques
include market approach (i.e., using recent arm’s length market transactions
adjusted as necessary and reference to the current market value of another
instrument that is substantially the same) and the income approach (i.e.,
discounted cash flow analysis and option pricing models making use of
available and supportable market data as possible). The level 3 investments
have been valued based on the sum of the straight debenture value and the
embedded equity conversion option value, and an adjusted enterprise value
based on milestone achievements and changes in the underlying public stock
price. See note 2(p) below.
(i) Options
Options are held at fair value through profit
or loss based on the bid/offer prices of the options written to which the
Group is exposed. The value of the option is subsequently marked-to-market to
reflect the fair value through profit or loss of the option based on traded
prices. Where the premium is taken to revenue, an appropriate amount is shown
as capital return such that the total return reflects the overall change in
the fair value of the option. When an option is exercised, the gain or loss is
accounted for as a capital gain or loss. Any cost on closing out an option is
transferred to revenue along with any remaining unamortised premium.
(j) Other receivables and other payables
Other receivables and other payables do not
carry any interest and are short-term in nature and are accordingly stated on
an amortised cost basis.
(k) Dividends payable
Under IAS, final dividends should not be
accrued in the financial statements unless they have been approved by
shareholders before the financial reporting date. Interim dividends should not
be recognised in the financial statements unless they have been paid.
Dividends payable to equity shareholders are recognised in the Consolidated
Statement of Changes in Equity.
(l) Foreign currency translation
Transactions involving foreign currencies are
converted at the rate ruling at the date of the transaction. Foreign currency
monetary assets and liabilities and non-monetary assets held at fair value are
translated into British Pound Sterling at the rate ruling on the financial
reporting date. Foreign exchange differences arising on translation are
recognised in the Consolidated Statement of Comprehensive Income as a revenue
or capital item depending on the income or expense to which they relate. For
investment transactions and investments held at the year end, denominated in a
foreign currency, the resulting gains or losses are included in the net
profit/(loss) on investments and options held at fair value through profit or
loss in the Consolidated Statement of Comprehensive Income.
(m) Cash and cash equivalents
In the Statements of Financial Position, cash
and cash equivalents are comprised of cash (i.e. cash on hand and on-demand
deposits) and cash equivalents. Cash equivalents are short-term (generally
with original maturity of three months or less), highly liquid investments
that are readily convertible to a known amount of cash and which are subject
to an insignificant risk of changes in value. Cash equivalents are held for
the purpose of meeting short-term cash commitments rather for investment or
other purposes.
For the purposes of the Cash Flow Statements, cash and cash equivalents
consist of cash and cash equivalents as defined above, net of outstanding bank
overdrafts which are repayable on demand and form an integral part of the
Group’s cash management. Such overdrafts are presented as short-term
borrowings in the Statements of Financial Position.
(n) Bank borrowings
Bank overdrafts are recorded as the proceeds
received. Finance charges are accounted for on an accruals basis in the
Consolidated Statement of Comprehensive Income using the effective interest
rate method and are added to the carrying amount of the instruments to the
extent that they are not settled in the period in which they arise.
(o) Share repurchases and share reissues
Shares repurchased and subsequently cancelled
– share capital is reduced by the nominal value of the shares repurchased,
and the capital redemption reserve is correspondingly increased in accordance
with Section 733 of the Companies Act 2006. The full cost of the repurchase is
charged to the special reserve.
Shares repurchased and held in treasury – the full cost of the repurchase is
charged to the special reserve.
Where treasury shares are subsequently reissued:
– amounts received to the extent of the repurchase price are
credited to the special reserve and capital reserves based on a weighted
average basis of amounts utilised from these reserves on repurchases; and
– any surplus received in excess of the repurchase price is
taken to the share premium account.
Where new shares are issued, the par value is taken to called up share capital
and amounts received to the extent of any surplus received in excess of the
par value are taken to the share premium account.
Share issue costs are charged to the share premium account. Costs on share
reissues are charged to the special reserve and capital reserves.
(p) Critical accounting estimates and judgements
The Group makes estimates and assumptions
concerning the future. The resulting accounting estimates and assumptions
will, by definition, seldom equal the related actual results. Estimates and
judgements are regularly evaluated and are based on historical experience and
other factors, including expectations of future events that are believed to be
reasonable under the circumstances. There were no critical accounting
judgements that would have a significant effect on the amounts recognised in
the financial statements or key sources of estimation uncertainty at the
balance sheet date that would have a significant risk of causing a material
adjustment to the carrying amounts of assets and liabilities within the next
financial year.
3. Income
2025 2024
£’000 £’000
Investment income:
UK dividends 913 1,184
Fixed income 547 505
Overseas dividends 2,752 2,835
Overseas special dividends 229 299
UK stock dividends – 128
--------------- ---------------
Total investment income 4,441 4,951
========= =========
Net income from derivatives – –
Other income:
Bank interest 9 4
Interest on collateral received 33 32
Option premium income 1,116 1,164
--------------- ---------------
Total other income 1,158 1,200
========= =========
Total 5,599 6,151
========= =========
During the year, the Group received option premium income in cash totalling
£1,116,000 (2024: £1,164,000) for writing covered call and put options for
the purposes of revenue generation.
Option premium income is amortised evenly over the life of the option contract
and accordingly, during the year, option premiums of £1,116,000 (2024:
£1,164,000) were amortised to revenue.
At 30 November 2025, there were no open option positions (2024: one) with an
associated liability of £nil (2024: £51,000).
Dividends and interest received in cash during the period amounted to
£3,567,000 and £427,000 (2024: £4,080,000 and £436,000).
No special dividends have been recognised in capital during the year (2024:
£nil).
4. Investment management fee
2025 2024
Revenue Capital Total Revenue Capital Total
£’000 £’000 £’000 £’000 £’000 £’000
Investment management fee 333 1,000 1,333 356 1,069 1,425
Investment management fee rebate (12) (16) (28) – – –
--------------- --------------- --------------- --------------- --------------- ---------------
Total 321 984 1,305 356 1,069 1,425
========= ========= ========= ========= ========= =========
The investment management fee is levied at 0.80% of gross assets per annum.
Gross assets for the purposes of calculating the management fee equate to the
value of the portfolio’s gross assets held on the relevant date as valued on
the basis of applicable accounting policies, less the value of any investments
in in-house funds.
The fee is allocated 25% to the revenue account and 75% to the capital account
of the Consolidated Statement of Comprehensive Income. There is no additional
fee for company secretarial and administration services.
The Company is entitled to a rebate from the investment management fee charged
by the Manager in the event the Company’s ongoing charges exceed the cap. Up
to 30 November 2024, the cap was 1.25% per annum of average daily net assets.
From 1 December 2024, the cap was reduced to 1.15% per annum of average daily
net assets.
The amount of rebate accrued for the year ended 30 November 2025 amounted to
£28,000 (2024: £nil). The rebate, if any, is offset against management fees
and is allocated between revenue and capital in the ratio of total ongoing
charges (as defined within the Annual Report and Financial Statements)
allocated between revenue and capital during the period.
5. Other operating expenses
2025 2024
£’000 £’000
Allocated to revenue:
Custody fee 6 7
Auditor’s remuneration – audit services(1) 49 51
Registrars’ fees 39 32
Directors’ emoluments(2) 143 143
Broker fees 25 25
Depositary fees 15 16
Marketing fees 50 80
Printing and postage fees 49 40
Legal and professional fees 24 24
Bank charges 18 14
Stock exchange listing fees 11 11
Other administration costs 53 68
--------------- ---------------
Total revenue expenses 482 511
========= =========
Allocated to capital:
Custody transaction charges(3) 9 9
--------------- ---------------
Total 491 520
========= =========
2025 2024
Ongoing charges(4) 1.15% 1.20%
========= =========
(
1
) No non-audit services
are provided by the Company’s auditors (2024: none).
(
2
) Further information on
Directors’ emoluments can be found in the Directors’ Remuneration Report
contained within the Annual Report and Financial Statements. The Company has
no employees.
(
3
) For the year ended 30
November 2025, expenses of £9,000 (2024: £9,000) were charged to the capital
account of the Statement of Comprehensive Income. These relate to transaction
costs charged by the custodian on sale and purchase trades.
(
4
) The Company’s
ongoing charges are calculated as a percentage of average daily net assets and
using the management fee and all other operating expenses, excluding finance
costs, direct transaction costs, custody transaction charges, VAT recovered,
taxation, prior year expenses written back and certain non-recurring items.
Alternative Performance Measure, see Glossary contained within the Annual
Report and Financial Statements.
The Company’s ongoing charges, as defined within the Annual Report and
Financial Statements (including the investment management fee), are capped at
1.15% per annum of average daily net assets. Up to 30 November 2024, the cap
was 1.25% per annum of average daily net assets. The Company is entitled to a
rebate from the investment management fee charged by the Manager in the event
the Company’s ongoing charges exceed the cap.
The overall cap on ongoing charges and any applicable rebate is calculated and
accrued on a daily basis and will be adjusted in the investment management
fees charged up to 30 November every year. See note 4 above.
6. Finance costs
2025 2024
Revenue Capital Total Revenue Capital Total
£’000 £’000 £’000 £’000 £’000 £’000
Interest paid – bank overdraft 156 469 625 230 690 920
--------------- --------------- --------------- --------------- --------------- ---------------
Total 156 469 625 230 690 920
========= ========= ========= ========= ========= =========
Finance costs for the Company are charged 25% to the revenue account and 75%
to the capital account of the Consolidated Statement of Comprehensive Income.
Subsidiary finance costs are charged 100% to the revenue account of the
Consolidated Statement of Comprehensive Income.
7. Dividends
Dividends paid on equity shares Record date Payment date 2025 2024
£’000 £’000
4th interim dividend of 1.125p per share for the year ended 30 November 2024 (2024: 1.125p) 05 December 2024 07 January 2025 1,365 1,468
1st interim dividend of 1.125p per share for the year ended 30 November 2025 (2024: 1.125p) 27 March 2025 25 April 2025 1,329 1,422
2nd interim dividend of 1.125p per share for the year ended 30 November 2025 (2024: 1.125p) 12 June 2025 14 July 2025 1,307 1,396
3rd interim dividend of 1.250p per share for the year ended 30 November 2025 (2024: 1.125p) 25 September 2025 27 October 2025 1,403 1,373
--------------- ---------------
Accounted for in the financial statements 5,404 5,659
========= =========
The total dividends payable in respect of the year ended 30 November 2025
which form the basis of Section 1158 of the Corporation Tax Act 2010 and
Section 833 of the Companies Act 2006, and the amounts declared, meet the
relevant requirements as set out in this legislation.
Dividends paid, proposed or declared on equity shares 2025 2024
£’000 £’000
1st interim dividend of 1.125p per share for the year ended 30 November 2025 (2024: 1.125p) 1,329 1,422
2nd interim dividend of 1.125p per share for the year ended 30 November 2025 (2024: 1.125p) 1,307 1,396
3rd interim dividend of 1.250p per share for the year ended 30 November 2025 (2024: 1.125p) 1,403 1,373
4th interim dividend of 1.250p per share for the year ended 30 November 2025 (2024: 1.125p) 1,390 1,365
--------------- ---------------
Total for the year 5,429 5,556
========= =========
8. Earnings and net asset value per ordinary share
Total revenue, capital earnings/(loss) and net
asset value per ordinary share are shown below and have been calculated using
the following:
2025 2024
Net revenue profit attributable to ordinary shareholders (£’000) 4,076 4,541
Net capital profit attributable to ordinary shareholders (£’000) 29,295 17,371
--------------- ---------------
Total profit attributable to ordinary shareholders (£’000) 33,371 21,912
========= =========
Total shareholders’ funds (£’000) 182,814 167,327
========= =========
The weighted average number of ordinary shares in issue during the year on which the earnings per ordinary share was calculated was: 116,342,818 125,204,148
The actual number of ordinary shares in issue at the end of the year on which the net asset value per ordinary share was calculated was: 111,269,497 121,552,497
Calculated on weighted average number of ordinary shares
Revenue earnings per share (pence) – basic and diluted 3.50 3.63
Capital earnings per share (pence) – basic and diluted 25.18 13.87
--------------- ---------------
Total earnings per share (pence) – basic and diluted 28.68 17.50
========= =========
As at As at
30 November 30 November
2025 2024
Net asset value per share (pence) 164.30 137.66
Ordinary share price (pence) 150.00 121.00
========= =========
There were no securities in issue at the year end that have any dilutive
effect on earnings per share.
9. Called up share capital
Ordinary Treasury Total Nominal
shares shares shares value
number number number £’000
Allotted, called up and fully paid share capital comprised:
Ordinary shares of 1 pence each:
At 30 November 2023 131,386,194 4,200,000 135,586,194 1,356
Ordinary shares repurchased into treasury (9,833,697) 9,833,697 – –
At 30 November 2024 121,552,497 14,033,697 135,586,194 1,356
Ordinary shares repurchased into treasury (10,283,000) 10,283,000 – –
--------------- --------------- --------------- ---------------
At 30 November 2025 111,269,497 24,316,697 135,586,194 1,356
========= ========= ========= =========
During the year ended 30 November 2025, 10,283,000 shares were repurchased
into treasury (2024: 9,833,697) for a net consideration after costs of
£12,480,000 (2024: £11,288,000).
During the year ended 30 November 2025, the Company issued no shares (2024:
nil) for a net consideration after costs of £nil (2024: £nil).
Since the year end, and as at 2 February 2026 a further 9,071,500 ordinary
shares have been repurchased into treasury for a total consideration of
£15,939,000.
10. Reserves
Distributable Reserves
Group Share Special Capital Capital Revenue
premium reserve reserve reserve reserve
account £’000 arising on arising on £’000
£’000 investments revaluation
sold of
£’000 investments
held
£’000
At 30 November 2023 69,980 66,100 3,210 15,450 6,266
Movement during the year:
Total comprehensive income:
Net profit for the year – – 6,727 10,644 4,541
Transactions with owners recorded directly to equity: –
Ordinary shares repurchased into treasury – (11,208) – – –
Share repurchase costs – (80) – – –
Dividends paid – – – – (5,659)
--------------- --------------- --------------- --------------- ---------------
At 30 November 2024 69,980 54,812 9,937 26,094 5,148
========= ========= ========= ========= =========
Net profit for the year – – 10,809 18,486 4,076
Ordinary shares repurchased into treasury – (12,395) – – –
Share repurchase costs – (85) – – –
Dividends paid – – – – (5,404)
--------------- --------------- --------------- --------------- ---------------
At 30 November 2025 69,980 42,332 20,746 44,580 3,820
========= ========= ========= ========= =========
Distributable reserves
Company Share Special Capital Capital Revenue
premium reserve reserve reserve reserve
account £’000 arising on arising on £’000
£’000 investments revaluation
sold of
£’000 investments
held
£’000
At 30 November 2023 69,980 66,100 2,392 17,902 4,632
Movement during the year:
Total comprehensive income:
Net profit for the year – – 7,548 9,144 5,220
Transactions with owners recorded directly to equity:
Ordinary shares repurchased into treasury – (11,208) – – –
Share repurchase costs – (80) – – –
Dividends paid – – – – (5,659)
--------------- --------------- --------------- --------------- ---------------
At 30 November 2024 69,980 54,812 9,940 27,046 4,193
========= ========= ========= ========= =========
Net profit for the year – – 10,809 17,531 5,031
Ordinary shares repurchased into treasury – (12,395) – – –
Share repurchase costs – (85) – – –
Dividends paid – – – – (5,404)
--------------- --------------- --------------- --------------- ---------------
At 30 November 2025 69,980 42,332 20,749 44,577 3,820
========= ========= ========= ========= =========
Exchange gains of £821,000 arising in the subsidiary company in the year
ended 30 November 2016 were incorrectly treated in the parent company
accounts. This has been corrected in the net revenue and net capital profit of
the parent company in the prior year. The revenue reserves of the parent
company had been overstated by £821,000 and the capital reserves of the
parent company understated by the same amount. The adjustment has no impact on
the net assets, net revenue and capital profit and revenue, capital and
distributable reserves of the Group.
The share premium account of £69,980,000 (2024: £69,980,000) is not a
distributable reserve under the Companies Act 2006. In accordance with ICAEW
Technical Release 02/17BL on Guidance on Realised and Distributable Profits
under the Companies Act 2006, the special reserve and capital reserves of the
Parent Company may be used as distributable reserves for all purposes and, in
particular, the repurchase by the Parent Company of its ordinary shares and
for payments such as dividends. In accordance with the Company’s Articles of
Association, the special reserve, capital reserves and the revenue reserve may
be distributed by way of dividend. The Parent Company’s capital gains of
£65,326,000 (2024: £36,986,000) comprise a gain on capital reserve arising
on investments sold of £20,749,000 (2024: £9,940,000), a gain on capital
reserve arising on revaluation of listed investments of £44,577,000 (2024:
£26,091,000 ) and a revaluation gain on the investment in the subsidiary of
£nil (2024: £955,000). The capital reserve arising on the revaluation of
listed investments of £44,577,000 (2024: £26,091,000) is subject to fair
value movements and may not be readily realisable at short notice, as such it
may not be entirely distributable. The investments are subject to financial
risks, as such capital reserves (arising on investments sold) and the revenue
reserve may not be entirely distributable if a loss occurred during the
realisation of these investments. The reserves of the subsidiary company are
not distributable until distributed as a dividend to the Parent Company.
As at 30 November 2025, the Parent Company’s distributable reserves
excluding capital reserves on the revaluation of investments amounted to
£66,901,000 (2024: £68,945,000).
11. Valuation of financial instruments
Financial assets and financial liabilities are
either carried in the Consolidated and Parent Company Statements of Financial
Position at their fair value (investments and derivatives) or at an amount
which is a reasonable approximation of fair value (due from brokers, dividends
and interest receivable, due to brokers, accruals, cash at bank and bank
overdrafts). IFRS 13 requires the Group to classify fair value measurements
using a fair value hierarchy that reflects the significance of inputs used in
making the measurements. The valuation techniques used by the Group are
explained in the accounting policies note 2(h) to the Financial Statements
above.
Categorisation within the hierarchy has been determined on the basis of the
lowest level input that is significant to the fair value measurement of the
relevant asset.
The fair value hierarchy has the following levels:
Level 1 – Quoted market price for identical instruments in active markets
A financial instrument is regarded as quoted in
an active market if quoted prices are readily available from an exchange,
dealer, broker, industry group, pricing service or regulatory agency and those
prices represent actual and regularly occurring market transactions on an
arm’s length basis. The Group does not adjust the quoted price for these
instruments.
Level 2 – Valuation techniques using observable inputs
This category includes instruments valued using
quoted prices for similar instruments in markets that are considered less than
active, or other valuation techniques where all significant inputs are
directly or indirectly observable from market data.
Valuation techniques used for non-standardised financial instruments such as
options, currency swaps and other over-the-counter derivatives include the use
of comparable recent arm’s length transactions, reference to other
instruments that are substantially the same, discounted cash flow analysis,
option pricing models and other valuation techniques commonly used by market
participants making the maximum use of market inputs and relying as little as
possible on entity specific inputs.
Over-the-counter derivative option contracts have been classified as Level 2
investments as their valuation has been based on market observable inputs
represented by the underlying quoted securities to which these contracts
expose the Group.
Level 3 – Valuation techniques using significant unobservable inputs
This category includes all instruments where
the valuation technique includes inputs not based on market data and these
inputs could have a significant impact on the instrument’s valuation.
This category includes instruments that are valued based on quoted prices for
similar instruments where significant entity determined adjustments or
assumptions are required to reflect differences between the instruments and
instruments for which there is no active market. The Investment Manager
considers observable data to be that market data that is readily available,
regularly distributed or updated, reliable and verifiable, not proprietary,
and provided by independent sources that are actively involved in the relevant
market.
The level in the fair value hierarchy within which the fair value measurement
is categorised in its entirety is determined on the basis of the lowest level
input that is significant to the fair value measurement. If a fair value
measurement uses observable inputs that require significant adjustment based
on unobservable inputs, that measurement is a Level 3 measurement.
Assessing the significance of a particular input to the fair value measurement
in its entirety requires judgement, considering factors specific to the asset
or liability including an assessment of the relevant risks including but not
limited to credit risk, market risk, liquidity risk, business risk and
sustainability risk. The determination of what constitutes ‘observable’
inputs requires significant judgement by the Investment Manager and these
risks are adequately captured in the assumptions and inputs used in
measurement of Level 3 assets or liabilities.
The investment in the subsidiary is classified within Level 3 since the
subsidiary is not a listed entity. The fair value of the investment in the
subsidiary is calculated based on the net asset value of the underlying
balances within the subsidiary. Therefore, no sensitivity analysis has been
presented.
Fair values of financial assets and financial liabilities
The table below sets out fair value
measurements using the IFRS 13 fair value hierarchy.
Financial assets at fair value through profit or loss at Level 1 Level 2 Level 3 Total
30 November 2025 – Group £’000 £’000 £’000 £’000
Assets:
Equity investments 175,863 – 5 175,868
Fixed income investments – 4,495 9,754 14,249
--------------- --------------- --------------- ---------------
Total 175,863 4,495 9,759 190,117
========= ========= ========= =========
Financial assets at fair value through profit or loss at Level 1 Level 2 Level 3 Level 4
30 November 2025 – Company £’000 £’000 £’000 £’000
Assets:
Equity investments 175,863 – 5 175,868
Fixed income investments – 4,495 9,754 14,249
--------------- --------------- --------------- ---------------
Total 175,863 4,495 9,759 190,117
========= ========= ========= =========
Financial assets at fair value through profit or loss at Level 1 Level 2 Level 3 Total
30 November 2024 – Group £’000 £’000 £’000 £’000
Assets:
Equity investments 184,586 – – 184,586
Fixed income investments – 5,166 – 5,166
Liabilities:
Derivative financial instruments – written options (51) – – (51)
--------------- --------------- --------------- ---------------
Total 184,535 5,166 – 189,701
========= ========= ========= =========
Financial assets at fair value through profit or loss at Level 1 Level 2 Level 3 Total
30 November 2024 – Company £’000 £’000 £’000 £’000
Assets:
Equity investments 184,586 – 955 185,541
Fixed income investments – 5,166 – 5,166
Liabilities:
Derivative financial instruments – written options (51) – – (51)
--------------- --------------- --------------- ---------------
Total 184,535 5,166 955 190,656
========= ========= ========= =========
The investment in Vale debentures has been classified as Level 2 in the tables
above for all periods as these are priced using secondary market pricing
information provided by the Brazilian Financial and Capital Markets
Association (ANBIMA).
The investment in Allied Gold bonds have been classified as Level 2 in the
tables above for all periods as these are corporate bonds valued using
observable market inputs.
In addition to the investment in the subsidiary, the Company held three other
Level 3 securities as at 30 November 2025 (2024: one).
A reconciliation of fair value measurement in Level 3 is set out below.
Level 3 financial assets at fair value through profit or loss – Group Year ended Year ended
30 November 30 November
2025 2024
£’000 £’000
Opening fair value – –
Additions at cost 2,213 –
Total profit or loss included in net profit/(loss) on investments in the Consolidated Statement of Comprehensive Income – assets held at the end of the year 7,546 –
--------------- ---------------
Closing balance 9,759 –
========= =========
Level 3 financial assets at fair value through profit or loss – Company Year ended Year ended
30 November 30 November
2025 2024
£’000 £’000
Opening fair value 955 2,455
Additions at cost 2,213 –
Total profit or loss included in net profit/(loss) on investments in the Consolidated Statement of Comprehensive Income – assets held at the end of the year 6,591 (1,500)
--------------- ---------------
Closing balance 9,759 955
========= =========
The Level 3 valuation process and techniques used are explained in the
accounting policies in note 2(h) above.
The Level 3 investments as at 30 November 2025 in the table that follows
relate to Abaxx Technologies, LunR Royalties and Gazprom. In accordance with
IFRS 13, this investment is categorised as Level 3.
Quantitative information of significant unobservable inputs – Level 3 –
Group and Company
The significant unobservable inputs used in the
fair value measurement categorised within Level 3 of the fair value hierarchy,
together with an estimated quantitative sensitivity analysis, as at 30
November 2025 is as shown below.
As at Valuation Unobservable Range of Reasonable Impact on
30 November technique input weighted possible fair value
2025 average shift1 +/– £
£’000 inputs
Abaxx Technologies convertible debentures 9,754 Hybrid of yield Yield rate on bond equity stock volatility 16.08% – 17.08% 0.50% 11,000
to maturity
and embedded
conversion option
value
LunR Royalties 5 Market approach Market adjustment factor 45% - 55% 5.00% 6,000
Gazprom equity shares – Listing n/a n/a n/a n/a
suspended –
valued at nominal
RUB 0.01
---------------
Total 9,759
=========
A reconciliation of fair value measurement in Level 3 is set out below.
As at Valuation Unobservable Range of Reasonable Impact on
30 November technique input weighted possible fair value
2024 average shift(1) +/–
£’000 inputs
Gazprom equity shares – Listing n/a n/a n/a n/a
suspended –
valued at nominal
RUB 0.01
--------------- --------------- --------------- --------------- --------------- ---------------
Total –
========= ========= ========= ========= ========= =========
1 The sensitivity
analysis refers to a percentage amount added or deducted from the input and
the effect this has on the fair value. The sensitivity impact on fair value is
calculated based on the sensitivity estimates based on range of weighted
average inputs. Significant increases/(decreases) in unobservable inputs in
isolation would result in a significantly higher/(lower) fair value
measurement. Generally, a change in the assumption made for the estimated
value is accompanied by a directionally similar change in the unobservable
inputs.
As at 30 November 2025, the investment in Gazprom has been valued at a nominal
value of RUB0.01 (2024: RUB 0.01) due to lack of access to the Moscow Stock
Exchange as a result of sanctions against Russia following the invasion of
Ukraine. Following the suspension of the secondary listings of depositary
receipts of Russian companies, the investment in Gazprom ADRs was transferred
from Level 1 to Level 3. As at the year-end, this investment is considered a
Level 3 financial asset.
For exchange listed equity investments, the quoted price is the bid price.
Substantially, all investments are valued based on unadjusted quoted market
prices. Where such quoted prices are readily available in an active market,
such prices are not required to be assessed or adjusted any price related
risks, including climate risk, in accordance with the fair value related
requirements of the Company’s financial reporting framework.
The Company may invest no more than 10% of its net asset value in investments
held through Stock Connect as set out within the Annual Report and Financial
Statements.
12. Related party disclosure
Directors’ emoluments
At the date of this report, the Board consists
of four non-executive Directors, all of whom are considered to be independent
of the Manager by the Board.
Disclosures of the Directors’ interests in the ordinary shares of the
Company and fees and expenses payable to the Directors are set out in the
Directors’ Remuneration Report contained within the Annual Report and
Financial Statements. At 30 November 2025, £12,000 (2024: £12,000) was
outstanding in respect of Directors’ fees.
Significant holdings
The following investors are:
a. funds managed by the BlackRock Group or are affiliates of
BlackRock Inc. (“Related BlackRock Funds”); or
b. investors (other than those listed in (a) above) who held more
than 20% of the voting shares in issue in the Company and are as a result,
considered to be related parties to the Company (“Significant Investors”).
Total % of shares held by Total % of shares held by Number of Significant
Related BlackRock Funds Significant Investors who are Investors who are not affiliates
not affiliates of BlackRock of BlackRock Group or
Group or BlackRock, Inc. BlackRock, Inc.
As at 30 November 2025 0.9 n/a n/a
As at 30 November 2024 0.7 n/a n/a
========= ========= =========
13. Transactions with the Investment Manager and AIFM
BlackRock Fund Managers Limited (BFM) provides
management and administrative services to the Group under a contract which is
terminable on six months’ notice. BFM has (with the Group’s consent)
delegated certain portfolio and risk management services, and other ancillary
services to BlackRock Investment Management (UK) Limited (BIM (UK)). Further
details of the investment management contract are disclosed in the
Directors’ Report contained within the Annual Report and Financial
Statements.
The investment management fee due for the year ended 30 November 2025 amounted
to £1,305,000 (2024: £1,425,000). At the year end, £682,000 was outstanding
in respect of the management fee (2024: £1,072,000).
The Company is entitled to a rebate from the investment management fee charged
by the Manager in the event the Company’s ongoing charges exceeds the cap of
1.15% per annum of average daily net assets. Up to 30 November 2024, the cap
was 1.25% per annum of average daily net assets. The amount of rebate accrued
to 30 November 2025 amounted to £28,000 (2024: £nil).
Further details in respect of the management fee and rebate are given in note
4 above.
In addition to the above services, BIM (UK) has provided the Group with
marketing services. The total fees paid or payable for these services for the
year ended 30 November 2025 amounted to £50,000 excluding VAT (2024:
£80,000). Marketing fees of £59,000 excluding VAT (2024: £28,000) were
outstanding as at the year end.
The ultimate holding company of the Manager and the Investment Manager is
BlackRock, Inc., a company incorporated in Delaware USA.
14. Contingent liabilities
There were no contingent liabilities at 30
November 2025 (2024: nil).
15. Publication of Non-Statutory Accounts
The financial information contained in this announcement does not constitute
statutory accounts as defined in the Companies Act 2006. The 2025 Annual
Report and Financial Statements will be filed with the Registrar of Companies
shortly.
The report of the auditor for the year ended 30 November 2025 contains no
qualification or statement under Section 498(2) or (3) of the Companies Act
2006.
This announcement was approved by the Board of Directors on 5 February 2026.
16. Annual Report
Copies of the Annual Report will be sent to members shortly and will be
available from the registered office c/o The Company Secretary, BlackRock
Energy and Resources Income Trust plc, 12 Throgmorton Avenue, London EC2N 2DL.
17. Annual General Meeting
The Annual General Meeting of the Company will be held at 12 Throgmorton
Avenue, London EC2N 2DL on Wednesday, 25 March 2026 at 12.00 pm.
For further information, please contact:
Sarah Beynsberger, Director, Investment Companies, BlackRock Investment
Management (UK) Limited
Tel: 020 7743 3000
Press enquiries:
Lansons Communications
Email: BlackRockInvestmentTrusts@lansons.com
Tel: 020 7490 8828
5 February 2026
12 Throgmorton Avenue
London EC2N 2DL
END
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