REG-BlackRock Income and Growth Investment Trust Plc: Half-year Report
19/06/2025 15:00
BLACKROCK INCOME AND GROWTH INVESTMENT TRUST PLC
LEI: 5493003YBY59H9EJLJ16
HALF YEARLY FINANCIAL REPORT FOR THE SIX MONTHS ENDED 30 APRIL 2025
Performance record
As at As at
30 April 31 October
2025 2024
Net assets (£’000) 1 43,022 43,760
Net asset value per ordinary share (pence) 222.51 222.22
Ordinary share price (mid-market) (pence) 198.00 193.50
Discount to net asset value 2 11.0% 12.9%
FTSE All-Share Index 10334.73 9785.37
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For the six For the
months ended year ended
30 April 2025 31 October 2024
Performance (with dividends reinvested)
Net asset value per share 2 2.2% 18.1%
Ordinary share price 2 4.7% 13.2%
FTSE All-Share Index 5.6% 16.3%
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Performance since 1 April 2012 3 (with dividends reinvested)
Net asset value per share 2 142.9% 137.6%
Ordinary share price 2 141.2% 130.3%
FTSE All-Share Index 145.4% 132.3%
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For the six For the six Change
months ended months ended %
30 April 2025 30 April 2024
Revenue
Net profit on ordinary activities after taxation (£’000) 734 806 -8.9
Revenue earnings per ordinary share (pence) 4 3.76 3.94 -4.6
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Dividends (pence)
Interim 2.70 2.70 –
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1 The change in net assets reflects portfolio movements, the purchase of the
Company’s own shares and dividends paid.
2 Alternative Performance Measures, see Glossary in the Half Yearly Financial
Report.
3 Since BlackRock’s appointment as Investment Manager on 1 April 2012.
4 Further details are given in the Glossary in the Half Yearly Financial
Report.
Chairman’s statement
Overview
The six-month period under review was marked by both macroeconomic upheavals
and geopolitical tensions, in particular the UK Government’s Autumn budget
in October 2024 and the US’s desire to reshape global trading relationships
in very short order. The implementation of tariffs on its key trade partners
resulted in significant equity market volatility, a sell-off in US treasuries
and associated concerns about the resilience of the US Dollar as a reserve
currency.
Equity market investors sought alternative assets such as gold and money
market funds, reducing exposure to US equities and bonds in favour of UK and
European securities. Global markets recovered towards the end of the period as
the negotiations between the US and China appeared to progress more
positively. We should not underestimate the significance of these events,
which raise the complexity of global trading relationships and supply chains,
leading to longer-term ramifications.
Another geopolitical theme during the period has been a renewed commitment by
European countries, NATO members in particular, to spend at least 2% of their
Gross Domestic Product (GDP) on defence. This action was driven by evolving
geopolitical shifts in foreign policy in general and the ongoing war in
Ukraine specifically. This renewed alliance and rearmament drive has been
bolstered by various EU financing initiatives to encourage and enable greater
defence spending by its members. As you will read in our Investment
Manager’s report which follows, they have been selectively adding exposure
to defence companies in the portfolio during the period, as well as domestic
and mid-cap names that they believe are positioned to perform strongly in the
current environment.
Performance
The Company’s net asset value (NAV) per share returned 2.2%, compared with
the Benchmark Index, the FTSE All-Share Index (total return), which returned
5.6%. The Company’s share price returned 4.7% as the discount narrowed from
12.9% at the start of the period to 11.0% at 30 April 2025 (all percentages in
Sterling terms with dividends reinvested).
Subsequent to the period end and as at 17 June 2025, the NAV of the Company
has increased by 4.2% from 222.51 pence per share to 231.85 pence per share
and the Company’s share price has risen by 1.0% from 198.00 pence per share
to 200.00 pence per share. By comparison, the Benchmark Index has increased by
5.0% over the same period.
Further information on the significant components of overall performance and
the changes to portfolio composition are set out in the Investment Manager’s
report below.
Revenue profit and dividends
Revenue earnings per share for the period was 3.76 pence (six months to 30
April 2024: 3.94 pence per share). The Board is declaring an interim dividend
of 2.70 pence per share which will be paid on 2 September 2025 to shareholders
on the Company’s register at the close of business on 25 July 2025 (the
ex-dividend date is 24 July 2025). I am pleased to report that our interim
dividend is fully covered by the revenue generated during the six-month period
to 30 April 2025.
Share capital
Mindful of the importance to investors that that the Company’s share price
should not trade at an excessive discount to NAV the Company has continued to
use its powers to buy back shares. We bought back 357,869 shares during the
period for a total consideration of £706,000, albeit the discount proved
stubborn, having traded at an average level of 12.2% throughout and ending the
period at 11.0%. Following the end of the period, since when buybacks have
continued, at the close of business on 18 June 2025 the discount was 12.9%.
Fees and charges
The Board is mindful of the need to ensure that shareholders receive good
value from the Company and regularly reviews its costs and charges. The
Company has previously agreed that the Investment Manager will rebate a
proportion of the investment management fee charged to the Company in the
event the Company’s ongoing charges exceed 1.15% per annum of average daily
net assets, effectively capping ongoing charges at this level. Further
information is set out in note 4 and note 12 below.
Gearing
The Company operates a flexible gearing policy which depends on prevailing
conditions and the outlook for the market. Gearing is subject to a maximum
level of 20% of net assets at the time of investment. As at 30 April 2025 the
Company had net gearing of 5.5%. Gearing levels and sources of funding are
reviewed regularly to ensure that the Company has access to the most
competitive borrowing rates available to it. The Company has a one-year
unsecured Sterling Revolving Credit Facility of £8,000,000 with The Bank of
New York Mellon (International) Limited, of which £6,000,000 is currently
drawn, an increase of £2,000,000 since the last report.
Board composition
At the date of this report the Board consists of three independent
Non-executive Directors, with two of the current Directors having been
appointed since 2019. The Board has a succession plan in place and will
continue to appraise regularly its composition to ensure that a suitable
balance of skills, knowledge, experience, independence and diversity is
achieved to enable the Board to discharge its duties effectively.
As I mentioned in last year’s annual financial report, following the
retirement of Mr Gold, a long-serving Non-executive Director and the Chairman
of the Audit Committee, the Board commenced a search to identify a suitable
replacement. The position of Chairman of the Company’s Audit Committee is an
important role, and one which Mr Gold carried out with great skill and
diligence during his tenure. Following a recruitment process designed to
identify a suitable successor, we have now identified and interviewed a number
of very high-calibre candidates. The Board expects to announce the appointment
shortly.
Shareholder communication
The Board appreciates how important access to regular information is to our
shareholders. To supplement our Company website, we now offer shareholders the
ability to sign up to the Trust Matters newsletter which includes information
on the Company as well as news, views and insights. Further information on how
to sign up is included on the inside cover of the Half Yearly Financial
Report.
Outlook
The UK has by no means been immune to the global geopolitical disruptions,
however, given that services make up around 80% of our economy the US trade
negotiations on goods were predominately focused elsewhere. The more recent
trade deals struck with both the US and India have supported sentiment towards
UK equities and improved the general economic outlook. In fact, one could make
a case that the UK is now in a relatively better economic position than its
European neighbours. As I mentioned in the annual report, the valuations of UK
equities remain very low versus both their own history and the other developed
economies while their dividend yield is higher. This, coupled with a more
benign economic backdrop, a recent upward revision for UK GDP, falling
interest rates and a stable labour market may mean the UK is now more
attractive to foreign investors seeking to reallocate capital.
The UK Government’s commitments to reignite growth through investment and
spending, coupled with improving productivity through innovation and
technology, are indeed admirable. However, several headwinds remain; not least
any belated impact of the trade disruptions discussed above, rising inflation
and wage growth, and the impact of current fiscal constraints on the UK
Government’s plans to boost economic growth. Overall, however, greater
political stability and an improving macroeconomic backdrop may well give
investors cause to re-evaluate their opportunity set and view the UK as a more
attractive place to invest.
As you will read in their report which follows (below), against this backdrop
our portfolio managers are cautiously optimistic. They believe our investment
universe continues to offer very attractive value, both in absolute terms and
relative to other developed markets and have great conviction in both the
resilience and growth prospects of their portfolio. As they have done for many
years, they execute a consistent investment philosophy and process, focusing
on identifying high-quality, well-capitalised, cash generative companies that
can compound returns over time. The Board therefore believes the Company
continues to provide an attractive combination of capital protection,
long-term growth and income for its shareholders.
GRAEME PROUDFOOT
Chairman
19 June 2025
Investment Manager’s report
Performance
For the six months since 30 April 2025, the Company’s NAV returned 2.2%,
underperforming its benchmark, the FTSE All-Share Index (the Benchmark Index),
which returned 5.6% over the same period (all percentages are in Sterling
terms with dividends reinvested).
Investment approach
In assembling the Company’s portfolio, we adopt a concentrated investment
approach to ensure that our best ideas contribute significantly to returns. We
believe that it is the role of the portfolio overall to generate an attractive
and growing yield alongside capital growth rather than every individual
company within the portfolio. This gives the Company increased flexibility to
invest where returns are most attractive. Our approach results in a portfolio
which differs substantially from the index and in any individual year the
returns will vary, sometimes significantly from those of the index. Our
objective is to achieve returns greater than the index through time. The
foundation of the portfolio, approximately 70%, is in ‘income generators’
that we believe will sustain strong cash generation and pay an attractive and
growing dividend whilst aiming to deliver a double-digit total return.
Additionally, we look to identify and invest 20% of the portfolio in
‘growth’ companies that have significant barriers to entry and scalable
business models that enable them to grow consistently. We also look for
turnaround companies, accounting for up to 10% of portfolio value, which
represent those companies that are out of favour with the market, facing
temporary challenges yet offer significant recovery potential.
Market review
The UK Budget announcement at the end of October 2024 led to a subdued market
for UK equities through the rest of the year as investors digested its impact.
The Budget introduced a large fiscal loosening underwritten by tax rises, most
notably on employers. This contributed to a rise in gilt yields to levels last
seen after the Truss-Kwarteng mini-Budget. Consequently, the last two months
of 2024 produced muted headline index results although coloured by some
intra-month volatility arising from the US election and continued political
uncertainty in Europe.
The prospect of fewer-than-expected rate cuts lifted the Banks sector but
depressed rate-sensitive sectors like housebuilders and real estate companies,
whilst the rise in employers’ National Insurance contributions weighed
widely on domestically exposed companies. The higher weighting of domestic
earnings within the mid- and small-cap indices also led to their
underperformance compared to the FTSE 100 Index.
In 2025, the UK Chancellor’s Spring Statement reaffirmed a commitment to
maintaining fiscal headroom, which had been questioned earlier in the quarter
when gilt yields rose in January. The first quarter of 2025 has seen
significant shifts in market leadership by geography, sector, and style; US
equities retreated while UK and European markets advanced, the value factor
outperformed growth and quality as economic and political uncertainty spurred
a rally in defensive shares and broad-based de-grossing across global markets.
The ‘Liberation Day’ reciprocal tariff announcements in the US in April
led to significant volatility with drawdowns in equity markets, most notably
in the US. Notably, the 30-year Treasury yield posted its biggest daily spike
since March 2020, flagging broader concerns about the safety of US assets and
their capacity to act as a haven in times of market stress.
Over the six-month period, the FTSE All-Share Index rose by 5.6%,
outperforming global equity markets. Performance was driven by Financials due
to higher-for-longer interest rate expectations and Industrials as Aerospace
and Defence rallied when major European nations, including Germany, the UK,
France, and the Nordics, accelerated plans to take on greater responsibility
for the continent's defence, increasing defence budgets and fast-tracking
plans for military expansion.
Contributors to and detractors from performance
The underweight positioning in the Aerospace and Defence sector was a
significant detractor from relative performance following significant upgrades
at Rolls-Royce Holdings and a growing excitement in defence names given the
change in German, UK and wider European defence spend announced during the
early part of the year. We discuss this further in our transactions section
below.
Tate & Lyle was another detractor from relative performance; the company
issued a profit warning in mid-February, citing a weak consumer demand
backdrop. Although a relatively small cut to earnings, the lack of visibility
and its recent large acquisition is worrying investors, unsure of its
longer-term growth algorithm. We believe the move towards a higher growth
speciality business is the correct one, and will result in significant capital
appreciation over time, but recognise the journey is non-linear. WH Smith
shares fell following the announced sale of its high street business which is
dilutive to group earnings. Strategically this leaves the business focused on
its faster growing, and more cash generative, global travel business and
therefore, we believe this is a sensible decision for the long term.
Travis Perkins shares fell during the period on the back of
weaker-than-expected guidance for 2025, and the CEO stepping down due to ill
health. The shares have also been caught up in the broader market rotation
away from UK domestic shares following the UK Budget in Autumn 2024 and the
risk-off sentiment in 2025. Oxford Instruments shares were also caught up in
the broader risk-off market sentiment through the first quarter that saw UK
small and mid-caps fall as investors pivoted to more defensive areas of the
market.
3i Group was amongst the strongest contributors to performance during the
period as continued positive trading from its largest asset, Action, buoyed
investor expectations. The strong like-for-like growth and space rollout
continues to offer a highly attractive return despite the significant rise in
the shares over the past three years.
The portfolio benefited from its holding in Standard Chartered which continued
its strong performance into 2025. Stronger than expected results and cash
distributions continued to drive the earnings growth and total return
respectively. Similarly, within banks, Lloyds Banking Group (Lloyds) had a
strong first quarter with the shares rising circa 30% as the potential for
sizable cash returns became more visible. Also, the concerns on the size of
the potential fines from the motor finance investigation, which had previously
impacted the shares relative to other UK banks, reduced. The portfolio, which
had significantly increased its weighting in Lloyds towards the end of 2024
and early in 2025, benefited. Underweight positions, most notably in Diageo
and Glencore, which the portfolio has zero exposure to, also contributed to
performance.
Admiral Group (Admiral) was another top contributor for the period. The shares
had struggled in recent years given high inflation and the rising cost of
servicing claims making the broader market a tricky place to navigate. The
Government also announced a cap on insurance premiums in October 2024, which
further dampened share performance. However, Admiral had been increasing
prices ahead of the market for the past few years, which began rolling over to
higher-rate contracts in mid-2024. As inflation moderates, Admiral is becoming
more competitive and continues to produce sustained growth, which should also
see it expand its market share. The shares have performed strongly over the
period on the back of this. Recent earnings have also shown profit before tax
climb +90% and the group announced a higher dividend in March, which has
further driven the shares upwards.
Transactions
During the period, we purchased BAE Systems, Melrose Industries and
Rolls-Royce Holdings. The redrafting of global alliances has prompted a
significant rethink by European countries of their plans for defence spending.
President Trump’s rhetoric has led to seismic shifts within NATO and
Europe’s fundamental shift in its fiscal approach, led by Germany’s
commitment, in echoes of the eurozone crisis, to spend ‘whatever it takes’
to underpin Europe’s independence. We believe this will result in a material
change in the medium, and indeed long-term growth potential of these
businesses. We also purchased a position in Intermediate Capital Group. The
private capital specialist continues to deliver strong inflows and performance
of its on-balance sheet holdings continues to impress.
We added to Lloyds Banking Group to reflect our view that the shares had been
overly punished on fears relating to the motor finance commission liability
and that the fundamentals of the bank remain attractive.
We have sold our position in Hammerson. This reduction reflects a portfolio
construction move to reduce some interest rate sensitivity while allowing us
to reinvest elsewhere, most notably in the central London office companies.
The Company sold its position in Fuller Smith & Turner, the pub company,
following the budget as we expect cost growth to surprise negatively given the
rise in National Insurance contributions. We have also sold our small position
in Premier Miton.
SGS shares fell on the announcement of potential M&A with its peer, Bureau
Veritas. This would be a very significant transaction, creating the largest
Testing and Inspection business globally. We subsequently sold the position
given the investment thesis for SGS was predicated on the self-help potential
on offer rather than a large deal and complex integration. Against our
purchases in the defence space, we trimmed our exposures to Rio Tinto, Shell
and Spirax-Sarco Engineering to retain a balanced exposure to economic
cyclicality.
Gearing
Historically, we have managed the Company with a modest and consistent level
of gearing, typically between 5-8% to enhance income generation and capital
growth. However, as market volatility has picked up, we have been more active
over the last 2 years, varying both the level of gearing and using a broader
range (0-10%) depending on the opportunities or risks presenting themselves at
the time. As at 30 April 2025, the Company had employed net gearing of 5.5%.
Outlook
Having passed peak interest rates with stable labour markets and broadly
stable macroeconomic conditions, equity markets performed strongly through
2024. 2025 has started with a change of market leadership, with European and
UK equity markets outperforming the US. The promise of greater fiscal spending
in China and parts of Europe have served to buoy equity markets at a time when
the US risk appetite appears to be retrenching with concerns on trade, tariffs
and fiscal consolidation. The persistency of this change in market leadership
will largely depend on whether ‘predictability’ returns to US policy, the
volatility of which is causing corporates to continually reassess their
strategies towards the world’s largest economy.
Following a period of extended economic weakness, exacerbated by tariff
uncertainty, the Chinese Government has begun a more concerted campaign aimed
at accelerating economic growth and arresting deflationary pressures. Recent
policy moves have sought to improve and encourage lending into the real
economy with a sizable fiscal easing programme announced. Whilst the scale of
the easing is large, western markets and commentators have remained sceptical
of its impact and effectiveness whilst awaiting evidence to the contrary. In
the UK, the recent budget promised and delivered a large-scale borrowing and
spending plan. Whilst sizable increases in minimum wage and public sector wage
agreements likely support a brighter picture for the UK consumer, business
confidence remains low impacting the growth outlook. UK labour markets remain
resilient for now with low levels of unemployment, while real wage growth is
supportive of consumer demand albeit presents a challenge to corporate profit
margins.
We expect that the market’s attention will continue to focus on the trade
policy of the Trump administration and the likely success of trade deals, most
notably with China and the EU. The global economy has benefited from the
significant growth and deflation ‘dividend’ it has received from
globalisation over the past decades. The impact of a more protectionist US
approach and the potential implementation of tariffs may challenge this
‘dividend’. Indeed, we anticipate more uncertainty given the announcements
of significant federal budget cuts and a stricter immigration policy. We would
anticipate asset markets to be wary of these policies until there is more
clarity as we move through 2025. Conversely, we believe political certainty,
now evident in the UK, will be helpful for the UK and address the UK’s
elevated risk premium that has persisted since the damaging Autumn budget of
2022. Whilst we do not position the portfolios for any election or
geopolitical outcome, we are mindful of the potential volatility and the
opportunities that may result.
The UK stock market continues to remain very depressed in valuation terms
relative to other developed markets offering double-digit discounts across a
range of valuation metrics. This valuation anomaly saw further reactions from
UK corporates who continue to use their excess cash flows to fund buybacks
contributing to a robust buyback yield of the UK market. Combining this with a
dividend yield of 3.8% (FTSE All-Share Index yield as at 31 March 2025;
source: Bloomberg), the cash return of the UK market is attractive in absolute
terms and higher than other developed markets. Although we anticipate further
volatility ahead, we believe that risk appetite will return and opportunities
are emerging. We have identified several potential opportunities with new
positions initiated throughout the year in both UK domestic and mid-cap
companies.
We continue to focus the portfolio on cash generative businesses that we
believe offer durable, competitive advantages as we believe these companies
are best placed to drive returns over the long term. Whilst we anticipate
economic and market volatility will persist throughout the year, we are
excited by the opportunities this will likely create; by seeking to identify
the companies that strengthen their long-term prospects as well as attractive
turnaround situations.
ADAM AVIGDORI AND DAVID GOLDMAN
BLACKROCK INVESTMENT MANAGEMENT (UK) LIMITED
19 June 2025
Ten largest investments
Together, the Company’s ten largest investments represented 43.3% of the
Company’s portfolio as at 30 April 2025 (31 October 2024: 44.0%)
1 ► AstraZeneca (2024: 1st)
Sector: Pharmaceuticals & Biotechnology
Market value: £3,222,000
Share of investments: 7.1% (2024: 6.5%)
AstraZeneca is a leading multinational pharmaceutical and biotechnology
company headquartered in Cambridge, UK. It specialises in innovative medicines
across oncology, cardiovascular, respiratory, neuroscience, and other
therapeutic areas. With a strong global footprint and significant research and
development investment, AstraZeneca remains a major player in the
pharmaceutical industry.
2 ► RELX (2024: 2nd)
Sector: Media
Market value: £2,848,000
Share of investments: 6.3% (2024: 5.9%)
RELX is a global provider of information-based analytics and decision tools
for professional and business customers across industries including science,
healthcare, risk, and legal sectors. It leverages data and technology to
deliver insights that help clients make better decisions, positioning itself
as a critical partner in knowledge-driven markets.
3 ▲ 3i Group (2024: 6th)
Sector: Financial Services
Market value: £2,115,000
Share of investments: 4.6% (2024: 4.1%)
3i Group is an international investment company focused on private equity and
infrastructure investments. It aims to generate attractive returns by backing
growth-oriented businesses and infrastructure projects, primarily in Europe
and North America, combining active ownership with long-term capital
deployment.
4 ▼ Shell (2024: 3rd)
Sector: Oil & Gas Producers
Market value: £2,017,000
Share of investments: 4.4% (2024: 5.7%)
Shell is one of the world’s largest integrated energy companies, operating
across the oil and gas value chain, including exploration, production,
refining, and marketing. It is actively transitioning towards cleaner energy
solutions while maintaining a strong presence in traditional hydrocarbons,
reflecting its strategic pivot in the evolving energy landscape.
5 ▲ Unilever (2024: 7th)
Sector: Personal Goods
Market value: £1,823,000
Share of investments: 4.0% (2024: 3.7%)
Unilever is a global consumer goods company with a diverse portfolio of
well-known brands in food, beverages, personal care, and home care. With a
significant presence in emerging markets, Unilever emphasises sustainability
and innovation to drive growth and meet changing consumer preferences
worldwide.
6 ▲ British American Tobacco (2024: 19th)
Sector: Tobacco
Market value: £1,741,000
Share of investments: 3.8% (2024: 1.9%)
British American Tobacco is a leading international tobacco company,
manufacturing and selling cigarettes, tobacco products, and next-generation
products like vaping devices. It operates globally with a focus on expanding
its reduced-risk product portfolio amid shifting regulatory and consumer
trends.
7 ▲ Lloyds Banking Group (2024: 43rd)
Sector: Banks
Market value: £1,543,000
Share of investments: 3.4% (2024: 0.8%)
Lloyds Banking Group is one of the UK’s largest retail and commercial banks,
providing a wide range of financial services including personal banking,
insurance, and wealth management. It has a strong domestic franchise and is
focused on digital transformation to enhance customer experience.
8 ▲ Admiral Group (2024: 18th)
Sector: Non-Life Insurance
Market value: £1,540,000
Share of investments: 3.4% (2024: 3.2%)
Admiral Group is a UK-based financial services company specialising in car
insurance and price comparison services. Known for its innovative approach and
multiple insurance brands, Admiral Group has a significant market share in
motor insurance and continues to expand its digital offerings.
9 ► Standard Chartered (2024: 9th)
Sector: Banks
Market value: £1,531,000
Share of investments: 3.4% (2024: 3.2%)
Standard Chartered is a British multinational bank with a strong focus on
Asia, Africa, and the Middle East. It provides corporate and investment
banking, wealth management, and treasury services. Despite its UK
headquarters, it generates most of its profits outside the UK, emphasising
emerging market growth.
10 ▼ HSBC (2024: 5th)
Sector: Banks
Market value: £1,308,000
Share of investments: 2.9% (2024: 4.1%)
HSBC is one of the world’s largest banking and financial services
organizations, operating globally across Europe, Asia, the Americas, the
Middle East, and Africa. It offers a broad range of services including retail
banking, commercial banking, wealth management, and global banking and
markets. HSBC continues to focus on growth in Asia while managing its
extensive international network.
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 31 October 2024.
Percentages in brackets represent the value of the holding as at 31 October
2024.
Distribution of investments as at 30 April 2025
Analysis of portfolio by sector
% of investments by market value Benchmark
Index
1 Banks 11.2 12.4
2 Financial Services 9.9 5.9
3 Media 9.0 1.2
4 Pharmaceuticals & Biotechnology 8.8 10.6
5 Real Estate Investment Trusts 7.0 2.4
6 General Retailers 6.9 3.4
7 Oil & Gas Producers 6.3 8.6
8 Non-Life Insurance 4.6 0.9
9 Mining 4.5 0.2
10 Support Services 4.3 3.1
11 Household Goods & Home Construction 4.1 1.0
12 Personal Goods 4.0 0.1
13 Tobacco 3.8 3.7
14 Aerospace & Defence 3.7 0.0
15 Travel & Leisure 2.4 1.9
16 Industrial Engineering 2.4 0.4
17 Food Producers 2.2 0.6
18 Life Insurance 1.8 2.3
19 Electronic & Electrical Equipment 1.2 0.9
20 General Industrials 1.1 0.8
21 Beverages 0.8 2.8
Sources: BlackRock and LSEG Datastream.
Investment size
Number of investments % of investments by market value
< £1m 27 34.1
£1m to £2m 15 43.5
£2m to £3m 3 15.3
£3m to £4m 1 7.1
Source: BlackRock.
List of investments as at 30 April 2025
Market % of
value investments
£’000
Banks
Lloyds Banking Group 1,543 3.4
Standard Chartered 1,531 3.4
HSBC 1,308 2.9
NatWest 683 1.5
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5,065 11.2
========= =========
Financial Services
3i Group 2,115 4.6
London Stock Exchange Group 1,213 2.7
Intermediate Capital Group 796 1.8
Ashmore Group 279 0.6
Rosebank 99 0.2
--------------- ---------------
4,502 9.9
========= =========
Media
RELX 2,848 6.3
Pearson 1,221 2.7
--------------- ---------------
4,069 9.0
========= =========
Pharmaceuticals & Biotechnology
AstraZeneca 3,222 7.1
GSK 754 1.7
--------------- ---------------
3,976 8.8
========= =========
Real Estate Investment Trusts
Segro 1,148 2.5
Great Portland Estates 884 1.9
Big Yellow Group 622 1.4
Derwent London 504 1.2
--------------- ---------------
3,158 7.0
========= =========
General Retailers
Next 936 2.1
Howden Joinery 828 1.8
WH Smith 710 1.6
Inchcape 651 1.4
--------------- ---------------
3,125 6.9
========= =========
Oil & Gas Producers
Shell 2,017 4.4
BP Group 851 1.9
--------------- ---------------
2,868 6.3
========= =========
Non-Life Insurance
Admiral Group 1,540 3.4
Hiscox 564 1.2
--------------- ---------------
2,104 4.6
========= =========
Mining
Rio Tinto 1,300 2.9
Anglo American 732 1.6
--------------- ---------------
2,032 4.5
========= =========
Support Services
Mastercard 1 1,063 2.3
Rentokil Initial 488 1.1
Hays 419 0.9
--------------- ---------------
1,970 4.3
========= =========
Household Goods & Home Construction
Reckitt 1,161 2.5
Taylor Wimpey 714 1.6
--------------- ---------------
1,875 4.1
========= =========
Personal Goods
Unilever 1,823 4.0
--------------- ---------------
1,823 4.0
========= =========
Tobacco
British American Tobacco 1,741 3.8
--------------- ---------------
1,741 3.8
========= =========
Aerospace & Defence
BAE Systems 870 1.9
Rolls-Royce Holdings 492 1.1
Melrose Industries 316 0.7
--------------- ---------------
1,678 3.7
========= =========
Travel & Leisure
Compass Group 1,112 2.4
--------------- ---------------
1,112 2.4
========= =========
Industrial Engineering
Weir Group 1,083 2.4
--------------- ---------------
1,083 2.4
========= =========
Food Producers
Tate & Lyle 1,018 2.2
--------------- ---------------
1,018 2.2
========= =========
Life Insurance
Phoenix Group 812 1.8
--------------- ---------------
812 1.8
========= =========
Electronic & Electrical Equipment
Oxford Instruments 550 1.2
--------------- ---------------
550 1.2
========= =========
General Industrials
Coats Group 495 1.1
--------------- ---------------
495 1.1
========= =========
Beverages
Fevertree Drinks 344 0.8
--------------- ---------------
344 0.8
--------------- ---------------
Total investments 45,400 100.0
========= =========
1 Non-UK listed investments.
All investments are in ordinary shares unless otherwise stated. The total
number of investments held at 30 April 2025 was 44 (31 October 2024: 46).
As at 30 April 2025, the Company did not hold any equity interests comprising
more than 3% of any company’s share capital.
Interim Management Report and Responsibility Statement
The Chairman’s Statement and the Investment Manager’s Report above give
details of the important events which have occurred during the period and
their impact on the financial statements.
Principal risks and uncertainties
The principal risks faced by the Company can be divided into various areas as
follows:
· Investment performance;
· Income/dividend;
· Gearing;
· Legal & regulatory compliance;
· Operational;
· Political;
· Market; and
· Financial.
The Board reported on the principal risks and uncertainties faced by the
Company in the Annual Report and Financial Statements for the year ended 31
October 2024. A detailed explanation can be found in the Strategic Report on
pages 33 to 36 and in note 16 on pages 93 to 99 of the Annual Report and
Financial Statements which are available on the website maintained by
BlackRock at: www.blackrock.com/uk/brig.
Certain financial markets have been negatively impacted by the ongoing
geopolitical tensions arising from the hostilities in the Middle East and
Russia’s invasion of Ukraine and the impact of the subsequent range of
sanctions, regulations and other measures which impaired normal trading in
Russian securities. The Board and the Investment Manager continue to monitor
investment performance in line with the Company’s investment objectives, and
the operations of the Company and the publication of net asset values are
continuing.
In the view of the Board, other than those matters noted above, there have not
been any material changes to the fundamental nature of these risks since the
previous report and these principal risks and uncertainties, as summarised,
are as applicable to the remaining six months of the financial year as they
were to the six months under review.
Going concern
The Board remains mindful of the ongoing uncertainty surrounding the extent of
the hostilities in the Middle East and the potential duration of the war in
Ukraine and its longer-term effects on the global economy and the current
heightened geopolitical risk. Nevertheless, the Directors, having considered
the nature and liquidity of the portfolio, the Company’s investment
objective and the Company’s projected income and expenditure, are satisfied
that the Company has adequate resources to continue in operational existence
for the foreseeable future and is financially sound.
For this reason, they continue to adopt the going concern basis in preparing
the financial statements. The Company has a portfolio of investments which are
considered to be readily realisable and is able to meet all of its liabilities
from its assets and income generated from these assets. Ongoing charges
(calculated as a percentage of average daily net assets and based on 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)
for the year ended 31 October 2024 were approximately 1.15%. Effective 1
November 2023 the ongoing charges of the Company are capped at the rate of
1.15% per annum of average daily net assets.
Related party disclosure and transactions with the Manager
BlackRock Fund Managers Limited (BFM) was appointed as the Company’s
Alternative Investment Fund Manager (AIFM) with effect from 2 July 2014. BFM
has, with the Company’s consent, delegated certain portfolio and risk
management services, and other ancillary services, to BlackRock Investment
Management (UK) Limited (BIM (UK)). Both BFM and BIM (UK) are regarded as
related parties under the Listing Rules. Effective from 1 November 2023, 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 of
1.15% per annum of average daily net assets. Details of the management fee
payable are set out in note 4 and note 13 below. The related party
transactions with the Directors are set out in note 12 below.
Directors’ responsibility statement
The Disclosure Guidance and Transparency Rules of the UK Listing Authority
require the Directors to confirm their responsibilities in relation to the
preparation and publication of the Interim Management Report and Financial
Statements.
The Directors confirm to the best of their knowledge that:
· the condensed set of financial statements contained within the Half Yearly
Financial Report has been prepared in accordance with the applicable UK
Accounting Standard FRS 104 ‘Interim Financial Reporting’; and
· the Interim Management Report, together with the Chairman’s Statement
and Investment Manager’s Report, include a fair review of the information
required by 4.2.7R and 4.2.8R of the FCA’s Disclosure Guidance and
Transparency Rules.
The Half Yearly Financial Report has not been audited or reviewed by the
Company’s Auditors.
The Half Yearly Financial Report was approved by the Board on 19 June 2025 and
the above responsibility statement was signed on its behalf by the Chairman.
GRAEME PROUDFOOT
FOR AND ON BEHALF OF THE BOARD
19 June 2025
Income statement for the six months ended 30 April 2025
Six months ended Six months ended Year ended
30 April 2025 30 April 2024 31 October 2024
(unaudited) (unaudited) (audited)
Notes Revenue Capital Total Revenue Capital Total Revenue Capital Total
£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
Gains on investments held at fair value through profit or loss – 368 368 – 4,892 4,892 – 5,684 5,684
Gains/(losses) on foreign exchange – 4 4 – (3) (3) – (4) (4)
Income from investments held at fair value through profit or loss 3 884 – 884 971 – 971 1,749 49 1,798
Other income 3 62 – 62 39 – 39 98 – 98
--------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- ---------------
Total income 946 372 1,318 1,010 4,889 5,899 1,847 5,729 7,576
========= ========= ========= ========= ========= ========= ========= ========= =========
Expenses
Investment management fee 4 (17) (85) (102) (8) (74) (82) (24) (155) (179)
Other operating expenses 5 (163) (4) (167) (160) (3) (163) (301) (6) (307)
--------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- ---------------
Total operating expenses (180) (89) (269) (168) (77) (245) (325) (161) (486)
========= ========= ========= ========= ========= ========= ========= ========= =========
Net profit on ordinary activities before finance costs and taxation 766 283 1,049 842 4,812 5,654 1,522 5,568 7,090
Finance costs (32) (95) (127) (31) (94) (125) (63) (187) (250)
--------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- ---------------
Net profit on ordinary activities before taxation 734 188 922 811 4,718 5,529 1,459 5,381 6,840
Taxation charge – – – (5) – (5) (5) – (5)
--------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- ---------------
Net profit on ordinary activities after taxation 7 734 188 922 806 4,718 5,524 1,454 5,381 6,835
========= ========= ========= ========= ========= ========= ========= ========= =========
Earnings per ordinary share (pence) 7 3.76 0.96 4.72 3.94 23.09 27.03 7.20 26.65 33.85
========= ========= ========= ========= ========= ========= ========= ========= =========
The total columns of this statement represent the Company’s profit and loss
account. 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 period. All income is attributable to
the equity holders of the Company.
The net profit on ordinary activities for the period disclosed above
represents the Company’s total comprehensive income.
Statement of changes in equity for the six months ended 30 April 2025
Note Called Share Capital Special Capital Revenue Total
up share premium redemption reserve reserve reserve £’000
capital account reserve £’000 £’000 £’000
£’000 £’000 £’000
For the six months ended 30 April 2025 (unaudited)
At 31 October 2024 298 14,819 251 10,682 15,647 2,063 43,760
Total comprehensive income:
Net profit for the period – – – – 188 734 922
Transactions with owners, recorded directly to equity:
Ordinary shares purchased for cancellation (4) – 4 (703) – – (703)
Share purchase costs – – – (3) – – (3)
Dividends paid 1 6 – – – – – (954) (954)
--------------- --------------- --------------- --------------- --------------- --------------- ---------------
At 30 April 2025 294 14,819 255 9,976 15,835 1,843 43,022
========= ========= ========= ========= ========= ========= =========
For the six months ended 30 April 2024 (unaudited)
At 31 October 2023 307 14,819 242 12,391 10,266 2,131 40,156
Total comprehensive income:
Net profit for the period – – – – 4,718 806 5,524
Transactions with owners, recorded directly to equity:
Ordinary shares purchased for cancellation (5) – 5 (881) – – (881)
Share purchase costs – – – (6) – – (6)
Dividends paid 2 – – – – – (984) (984)
--------------- --------------- --------------- --------------- --------------- --------------- ---------------
At 30 April 2024 302 14,819 247 11,504 14,984 1,953 43,809
========= ========= ========= ========= ========= ========= =========
For the year ended 31 October 2024 (audited)
At 31 October 2023 307 14,819 242 12,391 10,266 2,131 40,156
Total comprehensive income:
Net profit for the year – – – – 5,381 1,454 6,835
Transactions with owners, recorded directly to equity:
Ordinary shares purchased for cancellation (9) – 9 (1,700) – – (1,700)
Share purchase costs – – – (9) – – (9)
Dividends paid 3 – – – – – (1,522) (1,522)
--------------- --------------- --------------- --------------- --------------- --------------- ---------------
At 31 October 2024 298 14,819 251 10,682 15,647 2,063 43,760
========= ========= ========= ========= ========= ========= =========
1 Final dividend paid in respect of the year ended 31 October 2024 of 4.90p
per share, declared on 7 January 2025 and paid on 14 March 2025.
2 Final dividend paid in respect of the year ended 31 October 2023 of 4.80p
per share, declared on 21 December 2023 and paid on 15 March 2024.
3 Interim dividend paid in respect of the six months ended 30 April 2024 of
2.70p per share was declared on 20 June 2024 and paid on 3 September 2024.
Final dividend paid in respect of the year ended 31 October 2023 of 4.80p per
share was declared on 21 December 2023 and paid on 15 March 2024.
For information on the Company’s distributable reserves, please refer to
note 10 below.
Balance sheet as at 30 April 2025
Notes 30 April 30 April 31 October
2025 2024 2024
(unaudited) (unaudited) (audited)
£’000 £’000 £’000
Non current assets
Investments held at fair value through profit or loss 11 45,400 46,226 45,096
--------------- --------------- ---------------
Current assets
Current tax asset 19 35 22
Debtors 612 391 972
Cash and cash equivalents – cash at bank 3,339 1,708 2,515
--------------- --------------- ---------------
Total current assets 3,970 2,134 3,509
========= ========= =========
Current liabilities
Other creditors (348) (551) (845)
Bank loan 8 (6,000) (4,000) (4,000)
--------------- --------------- ---------------
Total current liabilities (6,348) (4,551) (4,845)
========= ========= =========
Net current liabilities (2,378) (2,417) (1,336)
========= ========= =========
Net assets 43,022 43,809 43,760
========= ========= =========
Capital and reserves
Called up share capital 9 294 302 298
Share premium account 10 14,819 14,819 14,819
Capital redemption reserve 10 255 247 251
Special reserve 9,976 11,504 10,682
Capital reserve 15,835 14,984 15,647
Revenue reserve 1,843 1,953 2,063
--------------- --------------- ---------------
Total shareholders’ funds 7 43,022 43,809 43,760
========= ========= =========
Net asset value per ordinary share (pence) 7 222.51 217.79 222.22
========= ========= =========
Statement of cash flows for the six months ended 30 April 2025
Six months Six months Year
ended ended ended
30 April 30 April 31 October
2025 2024 2024
(unaudited) (unaudited) (audited)
£’000 £’000 £’000
Operating activities
Net profit on ordinary activities before taxation 1 922 5,529 6,840
Add back finance costs 127 125 250
Gains on investments held at fair value through profit or loss (368) (4,892) (5,684)
(Gains)/losses on foreign exchange (4) 3 4
Special dividends allocated to capital – – (49)
Sale of investments held at fair value through profit or loss 10,189 8,260 18,292
Purchase of investments held at fair value through profit or loss (9,782) (6,317) (14,839)
(Increase)/decrease in other debtors (278) (239) 30
(Decrease)/increase in other creditors (202) 104 26
Taxation on investment income 3 (13) –
--------------- --------------- ---------------
Net cash generated from operating activities 607 2,560 4,870
========= ========= =========
Financing activities
Ordinary shares purchased for cancellation (703) (844) (1,680)
Share purchase costs paid (3) (6) (9)
Drawdown of bank loan 2,000 – –
Interest paid (127) (125) (250)
Dividends paid (954) (984) (1,522)
--------------- --------------- ---------------
Net cash generated from/(used in) financing activities 213 (1,959) (3,461)
========= ========= =========
Increase in cash and cash equivalents 820 601 1,409
Cash and cash equivalents at the beginning of the period/year 2,515 1,110 1,110
Effect of foreign exchange rate changes 4 (3) (4)
--------------- --------------- ---------------
Cash and cash equivalents at the end of the period/year 3,339 1,708 2,515
========= ========= =========
Comprised of:
Cash at bank 114 72 260
Cash Fund 2 3,225 1,636 2,255
--------------- --------------- ---------------
3,339 1,708 2,515
========= ========= =========
1 Dividends and interest received in cash during the year amounted to
£619,000 and £59,000 respectively (six months ended 30 April 2024: £777,000
and £37,000; year ended 31 October 2024: £1,772,000 and £76,000).
2 Cash Fund represents funds held on deposit with the BlackRock Institutional
Cash Series plc – Sterling Liquid Environmentally Aware Fund.
Notes to the financial statements for the six months ended 30 April 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.
2. Basis of preparation
The financial statements of the Company are prepared on a going concern basis
in accordance with Financial Reporting Standard 104 Interim Financial
Reporting (FRS 104) applicable in the United Kingdom and Republic of Ireland
and the revised Statement of Recommended Practice – ‘Financial Statements
of Investment Trust Companies and Venture Capital Trusts’ (SORP), issued by
the Association of Investment Companies (AIC) in October 2019 and updated in
July 2022, and the provisions of the Companies Act 2006.
The accounting policies and estimation techniques applied for the condensed
set of financial statements are as set out in the Company’s Annual Report
and Financial Statements for the year ended 31 October 2024.
3. Income
Six months Six months Year
ended ended ended
30 April 30 April 31 October
2025 2024 2024
(unaudited) (unaudited) (audited)
£’000 £’000 £’000
Investment income:
UK dividends 806 870 1,547
UK special dividends – – 42
UK property income distributions 56 40 62
Dividends from UK REITs 1 7 – 17
Overseas dividends 15 61 81
--------------- --------------- ---------------
Total investment income 884 971 1,749
========= ========= =========
Other income:
Interest from Cash Fund 60 38 85
Deposit interest 2 1 3
Underwriting commission – – 10
--------------- --------------- ---------------
Total other income 62 39 98
========= ========= =========
Total 946 1,010 1,847
========= ========= =========
1 REITs - real estate investment trusts.
Dividends and interest received in cash during the year amounted to £619,000
and £59,000 respectively (six months ended 30 April 2024: £777,000 and
£37,000; year ended 31 October 2024: £1,772,000 and £76,000).
No special dividends have been recognised in capital (six months ended 30
April 2024: £nil; year ended 31 October 2024: £49,000).
4. Investment management fee
Six months ended Six months ended Year ended
30 April 2025 30 April 2024 31 October 2024
(unaudited) (unaudited) (audited)
Revenue Capital Total Revenue Capital Total Revenue Capital Total
£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
Investment management fee 59 86 145 28 83 111 58 173 231
Investment management fee rebate (42) (1) (43) (20) (9) (29) (34) (18) (52)
--------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- ---------------
Total 17 85 102 8 74 82 24 155 179
========= ========= ========= ========= ========= ========= ========= ========= =========
Under the terms of the investment management agreement, BFM is entitled to a
fee of 0.6% per annum of the Company’s quarter end market capitalisation.
The investment management fee is allocated 25% to the revenue account and 75%
to the capital account. There is no additional fee for company secretarial and
administration services.
In addition, effective from 1 November 2023, 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 of 1.15% per annum of average
daily net assets. The amount of rebate accrued for the six months ended 30
April 2025 amounted to £59,000 (six months ended 30 April 2024: £29,000;
year ended 31 October 2024: £52,000). 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 on page 117 of the Annual Report and
Financial Statements for the year ended 31 October 2024) allocated between
revenue and capital during the period.
5. Other operating expenses
Six months Six months Year
ended ended ended
30 April 30 April 31 October
2025 2024 2024
(unaudited) (unaudited) (audited)
£’000 £’000 £’000
Allocated to revenue:
Custody fees – – 1
Depositary fees 3 2 5
Audit fees 1 30 18 60
Registrars’ fee 18 13 27
Directors’ emoluments 50 50 92
Marketing fees 7 7 18
Printing and postage fees 18 33 47
Legal and professional fees 14 21 24
London Stock Exchange fee 7 6 13
FCA fee 4 4 8
Prior year expenses written back 2 (9) (10) (25)
Other administration costs 21 16 31
--------------- --------------- ---------------
Total revenue expenses 163 160 301
========= ========= =========
Allocated to capital:
Custody transaction costs 3 4 3 6
--------------- --------------- ---------------
Total 167 163 307
========= ========= =========
1 No non-audit services were provided by the Company’s auditors in the six
months ended 30 April 2025 (six months ended 30 April 2024: none; year ended
31 October 2024: none).
2 Relates to legal and professional fees and other administration costs
written back in the six months ended 30 April 2025 (six months ended 30 April
2024: printing and postage fees and other administration costs; year ended 31
October 2024: legal and professional fees, printing and postage fees and other
administration costs).
3 For the six months ended 30 April 2025, expenses of £4,000 (six months
ended 30 April 2024: £3,000; year ended 31 October 2024: £6,000) were
charged to the capital account of the Income Statement. These relate to
transaction costs charged by the custodian on sale and purchase trades.
The transaction costs incurred on the acquisition of investments amounted to
£48,000 for the six months ended 30 April 2025 (six months ended 30 April
2024: £30,000; year ended 31 October 2024: £76,000). Costs relating to the
disposal of investments amounted to £4,000 for the six months ended 30 April
2025 (six months ended 30 April 2024: £4,000; year ended 31 October 2024:
£8,000). All transaction costs have been included within capital reserves.
6. Dividend
The Directors have declared an interim dividend of 2.70p per share for the
period ended 30 April 2025 payable on 2 September 2025 to shareholders on the
register on 25 July 2025. The total cost of the dividend based on 19,246,610
ordinary shares in issue at 17 June 2025 was £520,000 (30 April 2024:
£543,000).
In accordance with Section 32 of FRS 102, Events After the End of the
Reporting Period, the interim dividend payable on the ordinary shares has not
been included as a liability in the financial statements, as interim dividends
are only recognised when they have been paid.
7. Earnings and net asset value per ordinary share
Revenue, capital earnings and net asset value per ordinary share are shown
below and have been calculated using the following:
Six months Six months Year
ended ended ended
30 April 30 April 31 October
2025 2024 2024
(unaudited) (unaudited) (audited)
Net revenue profit attributable to ordinary shareholders (£’000) 734 806 1,454
Net capital profit attributable to ordinary shareholders (£’000) 188 4,718 5,381
--------------- --------------- ---------------
Total profit attributable to ordinary shareholders (£’000) 922 5,524 6,835
========= ========= =========
Total shareholders’ funds (£’000) 43,022 43,809 43,760
========= ========= =========
Earnings per share
The weighted average number of ordinary shares in issue during the period on which the earnings per ordinary share was calculated was: 19,512,901 20,433,281 20,193,264
The actual number of ordinary shares in issue at the period end on which the net asset value per ordinary share was calculated was: 19,334,743 20,115,258 19,692,612
--------------- --------------- ---------------
Calculated on weighted average number of ordinary shares:
Revenue earnings per share (pence) – basic and diluted 3.76 3.94 7.20
Capital earnings per share (pence) – basic and diluted 0.96 23.09 26.65
--------------- --------------- ---------------
Total earnings per share (pence) – basic and diluted 4.72 27.03 33.85
========= ========= =========
As at As at As at
30 April 30 April 31 October
2025 2024 2024
(unaudited) (unaudited) (audited)
Net asset value per ordinary share (pence) 222.51 217.79 222.22
Ordinary share price (mid-market) (pence) 198.00 186.50 193.50
========= ========= =========
There were no dilutive securities at 30 April 2025 (30 April 2024: none; 31
October 2024: none).
8. Reconciliation of liabilities arising from financing activities
Six months Six months Year ended
ended 30 April ended 30 April 31 October
2025 2024 2024
(unaudited) (unaudited) (audited)
Debt arising from financing activities at beginning of the period/year
Bank loan 4,000 4,000 4,000
========= ========= =========
Movement during the period/year:
Drawdown of bank loan 2,000 – –
========= ========= =========
Debt arising from financing activities at end of the period/year
Bank loan 6,000 4,000 4,000
========= ========= =========
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 31 October 2023 (audited) 20,603,486 10,081,532 30,685,018 307
Shares purchased for cancellation (488,228) – (488,228) (5)
--------------- --------------- --------------- ---------------
At 30 April 2024 (unaudited) 20,115,258 10,081,532 30,196,790 302
Shares purchased for cancellation (422,646) – (422,646) (4)
--------------- --------------- --------------- ---------------
At 31 October 2024 (audited) 19,692,612 10,081,532 29,774,144 298
Shares purchased for cancellation (357,869) – (357,869) (4)
--------------- --------------- --------------- ---------------
At 30 April 2025 (unaudited) 19,334,743 10,081,532 29,416,275 294
========= ========= ========= =========
In the six months ended 30 April 2025, 357,869 ordinary shares (six months
ended 30 April 2024: 488,228; year ended 31 October 2024: 910,874) were
purchased and subsequently cancelled for a total consideration including
expenses of £706,000 (six months ended 30 April 2024: £887,000; year ended
31 October 2024: £1,709,000).
Since the period end and up to 17 June 2025, a further 88,133 ordinary shares
have been bought back and cancelled for a total cost including expenses of
£180,000.
10. Reserves
The Company’s share premium account was cancelled pursuant to
shareholders’ approval of a special resolution at the Company’s Annual
General Meeting in 2002 and Court approval on 24 January 2002. The share
premium account which totalled £61,852,000 was transferred to a special
reserve. This action was taken, in part, to ensure that the Company had
sufficient distributable reserves.
The share premium account and capital redemption reserve of £14,819,000 and
£255,000 (30 April 2024: £14,819,000 and £247,000; 31 October 2024:
£14,819,000 and £251,000) are not distributable reserves 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 reserve may be used as distributable reserves for all
purposes and, in particular, the repurchase by the Company of its ordinary
shares and for payments such as dividends. In accordance with the Company’s
Articles of Association, the special reserve, capital reserve and revenue
reserve may be distributed by way of dividend. The gain on the capital reserve
arising on the revaluation of investments of £6,895,000 (six months ended 30
April 2024: £7,035,000; year ended 31 October 2024: £6,545,000) 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 the capital reserve (arising on investments sold) and
the revenue reserve may not be entirely distributable if a loss occurred
during the realisation of these investments.
11. Financial risks and valuation of financial instruments
The Company’s investment activities expose it to the various types of risk
which are associated with the financial instruments and markets in which it
invests. The risks are substantially consistent with those disclosed in the
previous annual financial statements, with the exception of those outlined
below. The following information is not intended to be a comprehensive summary
of all risks and shareholders should refer to the Alternative Investment Fund
Managers’ Directive FUND 3.2.2R Disclosures which can be found at
www.blackrock.com/uk/brig for a more detailed discussion of the risks inherent
in investing in the Company.
Market risk arising from price risk
Price risk is the risk that the fair value or future cash flows of a financial
instrument will fluctuate because of changes in market prices (other than
those arising from interest rate risk or currency risk), whether those changes
are caused by factors specific to the individual financial instrument or its
issuer, or factors affecting similar financial instruments traded in the
market. Local, regional or global events such as war, acts of terrorism, the
spread of infectious illness or other public health issues, recessions,
climate change or other events could have a significant impact on the Company
and the market price of its investments and could result in increased premiums
or discounts to the Company’s net asset value.
Valuation of financial instruments
Financial assets and financial liabilities are either carried in the Balance
Sheet at their fair value (investments) or at an amount which is a reasonable
approximation of fair value (due from brokers, dividends and interest
receivable, due to brokers, accruals, cash and cash equivalents, bank
overdrafts and bank loans). Section 34 of FRS 102 requires the Company 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 Company are explained in the accounting policies note
on page 84 of the Annual Report and Financial Statements for the year ended 31
October 2024.
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
Company 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.
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 also 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 the
measurement of Level 3 assets or liabilities.
Fair values of financial assets and financial liabilities
The table below is the analysis of the Company’s financial instruments
measured at fair value at the balance sheet date.
Financial assets at fair value through profit or loss Level 1 Level 2 Level 3 Total
£’000 £’000 £’000 £’000
Equity investments at 30 April 2025 (unaudited) 45,400 – – 45,400
Equity investments at 30 April 2024 (unaudited) 46,226 – – 46,226
Equity investments at 31 October 2024 (audited) 45,096 – – 45,096
========= ========= ========= =========
The Company held one Level 3 security during the six months ended 30 April
2025 (six months ended 30 April 2024: one; year ended 31 October 2024: one).
The investment in Patisserie Holdings has been valued at £nil as the company
is under liquidation.
There were no transfers between levels of financial assets and financial
liabilities recorded at fair value during the six months ended 30 April 2025,
six months ended 30 April 2024 and the year ended 31 October 2024.
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 for any business risk,
including climate change risk, in accordance with the fair value related
requirements of the Company’s financial reporting framework.
12. Related party disclosure
Directors’ emoluments
The Board consists of three non-executive Directors, all of whom are
considered to be independent of the Manager by the Board. None of the
Directors has a service contract with the Company. With effect from 1 November
2024, the Chairman receives an annual fee of £33,750, the Audit Committee
Chairman receives an annual fee of £27,900 and each of the other Directors
receives an annual fee of £24,250.
At the period end and as at 17 June 2025 members of the Board held ordinary
shares in the Company as set out below:
Ordinary shares Ordinary shares Ordinary shares
17 June 2025 30 April 2025 31 October 2024
Graeme Proudfoot (Chairman) 80,000 80,000 80,000
Nicholas Gold 1 – – 43,175
Charles Worsley 2 987,539 987,539 987,539
Chrysoula Zervoudakis 3 5,500 5,500 –
========= ========= =========
1 Nicholas Gold retired as a Director of the Company on 6 March 2025.
2 Including a non-beneficial interest of 655,500 ordinary shares.
3 Chrysoula Zervoudakis was appointed as a Director of the Company on 19
December 2024.
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 Total % of shares Number of
held by Related held by Significant Investors Significant Investors
BlackRock Funds who are not affiliates of who are not affiliates of
BlackRock Group or BlackRock Group or
BlackRock, Inc. BlackRock, Inc.
As at 30 April 2025 nil n/a n/a
As at 31 October 2024 nil n/a n/a
As at 30 April 2024 nil n/a n/a
========= ========= =========
13. Transactions with the Investment Manager and AIFM
BlackRock Fund Managers Limited (BFM) provides management and administration
services to the Company under a contract which is terminable on six months’
notice. BFM has (with the Company’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 on
page 46 in the Annual Report and Financial Statements for the year ended 31
October 2024.
The investment management fee due for the six months ended 30 April 2025
amounted to £102,000 (six months ended 30 April 2024: £82,000; year ended 31
October 2024: £179,000). At the period end, £56,000 was outstanding in
respect of the investment management fee (30 April 2024: £227,000; 31
October 2024: £122,000).
The Company is entitled to a rebate from the investment management fee charged
by the Manager in the event the Company’s ongoing charges exceed the cap of
1.15% per annum of average daily net assets. The amount of rebate for the
period ended 30 April 2025 amounted to £43,000 (30 April 2024: £29,000; 31
October 2024: £52,000). Any final rebate for the full year ending 31 October
2025 will not crystallise and fall due until the calculation date of 31
October 2025.
In addition to the above services, BIM (UK) provided the Company with
marketing services. The total fees paid or payable for these services for the
six months ended 30 April 2025 amounted to £7,000 including VAT (six months
ended 30 April 2024: £7,000; year ended 31 October 2024: £18,000). At the
period end, £18,000 was outstanding in respect of marketing fees (30 April
2024: £18,000; 31 October 2024: £29,000).
The Company holds an investment in the BlackRock Institutional Cash Series plc
- Sterling Liquid Environmentally Aware Fund of £3,225,000 (30 April 2024:
£1,636,000; 31 October 2024: £2,255,000) which has been presented in the
financial statements as a cash equivalent. This is a fund managed by a company
within the BlackRock Group. The Company’s investment in the Cash Fund is
held in a share class on which no management fees are paid to BlackRock to
avoid double dipping.
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 April 2025 (30 April 2024: none; 31
October 2024: none).
15. Publication of non statutory accounts
The financial information contained in this Half Yearly Financial Report does
not constitute statutory accounts as defined in Section 435 of the Companies
Act 2006. The financial information for the six months ended 30 April 2025 and
30 April 2024 has not been audited.
The information for the year ended 31 October 2024 has been extracted from the
latest published audited financial statements, which have been filed with the
Registrar of Companies. The report of the auditor on those accounts contained
no qualification or statement under Sections 498 (2) or (3) of the Companies
Act 2006.
16. Annual results
The Board expects to announce the annual results for the year ended 31 October
2025 in January 2026. Copies of the results announcement can be obtained from
the Secretary on 020 7743 3000 or by email at cosec@blackrock.com. The Annual
Report and Financial Statements should be available in January 2026, with the
Annual General Meeting being held in March 2026.
BlackRock Investment Management (UK) Limited
12 Throgmorton Avenue
London
EC2N 2DL
19 June 2025
ENDS
The Half Yearly Financial Report will also be available on the BlackRock
website at http://www.blackrock.com/uk/brig. Neither the contents of the
Manager’s website nor the contents of any website accessible from hyperlinks
on the Manager’s website (or any other website) is incorporated into, or
forms part of, this announcement.
For further information please contact:
Charles Kilner, Director Closed End Funds – Tel: 020 7743 3000
Press enquires:
Ed Hooper, Lansons Communications
Tel: 020 7294 3620
E-mail: BlackRockInvestmentTrusts@lansons.com or EdH@lansons.com
Release (https://mb.cision.com/Main/22401/4166807/3515525.pdf)
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