REG-BlackRock Smaller Companies Trust Plc: Half-year Report
24/10/2025 11:45
BLACKROCK SMALLER COMPANIES TRUST plc
(LEI: 549300MS535KC2WH4082)
Half yearly financial announcement of results in respect of the six months
ended 31 August 2025
Performance record
As at As at
31 August 28 February
2025 2025
Net asset value per ordinary share (debt at par value) (pence)(1) 1,410.32 1,403.45
Net asset value per ordinary share (debt at fair value) (pence)(1) 1,477.13 1,463.44
Ordinary share price (pence)(1) 1,304.00 1,270.00
Deutsche Numis Smaller Companies plus AIM (excluding Investment Companies) Index(2) 17,705.55 16,108.27
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Assets
Total assets less current liabilities (£’000) 657,178 684,322
Equity shareholders’ funds (£’000)(3) 587,621 614,779
Ongoing charges ratio(4,5) 0.8% 0.8%
Dividend yield(4) 3.4% 3.5%
Gearing(4) 5.5% 13.3%
========= =========
For the six For the year
months ended ended
31 August 28 February
2025 2025
Performance (with dividends reinvested)
Net asset value per ordinary share (debt at par value)(2,4) 2.5% -0.6%
Net asset value per ordinary share (debt at fair value)(2,4) 2.9% 0.0%
Ordinary share price(2,4) 4.9% -1.4%
Deutsche Numis Smaller Companies plus AIM (excluding Investment Companies) Index(2,4) 9.9% 6.2%
========= =========
For the six For the six Change
months ended months ended %
31 August 31 August
2025 2024
Revenue and dividends
Revenue return per ordinary share 25.77p 27.54p -6.4
Interim dividend per ordinary share 16.00p 15.50p 3.2
========= ========= =========
1 Without dividends reinvested.
2 Total return basis with dividends reinvested.
3 The change in equity shareholders’ funds represents the portfolio
movements, shares repurchased into treasury and dividends paid during the
period.
4 Alternative Performance Measures, see Glossary contained within the
Half Yearly Financial Report. Full details setting out how calculations with
dividends reinvested are performed are set out in the Glossary contained
within the Half Yearly Financial Report.
5 Ongoing charges ratio 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 in accordance with AIC guidelines.
Chairman’s Statement for the six months ended 31 August 2025
This is our report on your Company’s results for the six months ended 31
August 2025. It is a report that covers a period filled with frustrating
performance challenges, disappointing corporate developments and a cloudy UK
investment environment. The Board has worked closely with the Manager to
consider our investment approach, to improve the effectiveness of our discount
management efforts and to leverage investor understanding of the long-term
benefits of small and mid-cap investing in the UK, not withstanding recent
results. So far, these efforts must be acknowledged as a work in progress. My
remarks in this letter cover all these matters in some detail and should be
read in conjunction with the Investment Manager’s Report. Together they tell
a story that reveals the reasons for our longer term optimism for investment
in our small/mid cap sector and the growth orientation that we have
historically embraced. It is a view that demands conviction and confidence
which we sincerely hope you can continue to embrace with us.
Performance
Geopolitical tensions and the announcement by
the US of significant tariffs on its key trading partners drove equity market
volatility over the period under review, with many investors reducing exposure
to US equities and bonds in favour of UK and European securities.
Frustratingly, UK markets saw a reversal of this rebound in August on the back
of concerns over the UK November budget and the potential for Labour policy to
stall the housing market and economic growth. With memories of the last Labour
budget still painfully fresh, the willingness to invest remains low and many
investors are actively reducing market exposure. This is a continuation of the
difficult market conditions of the last few years, which have proved
especially challenging for UK smaller companies investment trusts, and in
particular for those managers with a growth bias. Notwithstanding these
difficult conditions, your Board has been disappointed with the Company’s
NAV performance, with the net asset value (NAV) per share increasing by just +
2.9%(1,2,3) over the period under review, underperforming the Company’s
benchmark, the Deutsche Numis Smaller Companies plus AIM (excluding Investment
Companies) Index, which returned +9.9%(1,3). The Company’s share price rose
by 4.9%(1,3). Looking at the broader market environment, the FTSE 100 Index
returned +6.8%(1) over the period, the FTSE 250 Index rose by +6.3%(1) and the
FTSE All Share Index returned +3.9%(1). The performance of both the NAV and
share price over the longer term are illustrated in the table below.
Your Board works closely with the Manager to understand and monitor the
drivers of underperformance, and as explained in more detail below, is
implementing changes to the investment guidelines to better reflect the
realities of the investable universe, and to enhance flexibility in these
volatile and challenging market conditions.
Performance to 31 August 2025 6 Months 1 Year 3 Years 5 Years 10 Years
change change change change change
% % % % %
Net asset value per share (with dividends reinvested)(1,2) 2.9 -9.7 2.0 17.3 87.6
Share price (with dividends reinvested)(1) 4.9 -11.6 6.5 21.3 78.7
Benchmark (with dividends reinvested)(1) 9.9 3.0 14.4 30.6 59.9
1 Percentages in Sterling terms with dividends reinvested.
2 Debt at fair value.
3 Alternative Performance Measure, see Glossary contained within the
Half Yearly Financial Report.
Returns and dividends
Dividend revenue from portfolio companies
decreased this period, with the Company’s revenue return per share for the
six months ended 31 August 2025 down by 6.4% to 25.77p per share (compared to
27.54p revenue return per share for the six months to 31 August 2024). After
adjusting for the impact of special dividends received, which amounted to
1.43p per share (31 August 2024: 1.45p per share), regular dividend income
from portfolio companies decreased by 6.7% compared to 2024 levels. There is a
trend in the UK equity market to prioritise share buybacks over dividends
which is having an impact on overall dividend growth.
The Board is mindful of the importance of our dividend to shareholders. The
Board is also cognisant of the benefits of the Company’s investment trust
structure which enables it to retain up to 15% of total revenue each year to
build up reserves which may be carried forward and used to pay dividends
during leaner times. The Company has substantial distributable reserves
(£521.2 million as at 31 August 2025, including revenue reserves of £17.3
million). To put this into context, the current level of annual dividend
distribution based on dividends declared in the last twelve months up to the
date of this report amounted to £18.8 million. Accordingly, the Board is
pleased to declare an interim dividend of 16.00p per share (2024: 15.50p per
share) representing an increase of 3.2% over the previous interim dividend.
The interim dividend will be paid on 10 December 2025 to shareholders on the
Company’s register on 7 November 2025. The Board continues to monitor the
Company’s income levels and projected future dividend income streams closely
as the year proceeds and will make an assessment in respect of the final
dividend in due course, noting that it has the ability to utilise revenue
reserves should it deem this appropriate.
Dividend Policy
The Board recognises the importance of income
to its shareholders and, following discussions with its advisers, has
concluded that an increased frequency of dividend payments would be welcomed
by shareholders. The Board also notes the importance of the Company’s
dividend approach being attractive to new investors, which will help to
support demand for its shares and to narrow the discount. Consequently, with
effect from 1 March 2026 the Company will move to making quarterly dividend
payments in place of the current bi-annual dividend payments.
The Company’s dividend policy will remain unchanged, and the Board will
continue to focus on ensuring the sustainability of dividends and their future
growth through investment in companies with strong balance sheets, solid
management and sustainable business growth models. The Board’s intention
is to make three dividend payments in September, December and March each year
equal to a quarter of the previous year’s total dividend. It will then
declare a final dividend for the full year (payable in June) reflecting the
final amount required to ensure an appropriate level of full year dividend.
The Company has increased its annual dividend every year since 2003. The
annualised increase in dividends paid across those 22 years equates to 10.6%
and your Company has received the AIC accolade of ‘Dividend Hero’ for its
consistent growth in dividends over that period.
Gearing
The Company had the following borrowing
facilities in place: long-term fixed rate funding in the form of a £25
million senior unsecured fixed rate private placement notes issued in May 2017
at a coupon of 2.74% with a 20 year maturity, £20 million senior unsecured
fixed rate private placement notes issued in December 2019 at a coupon of
2.41% with a 25 year maturity and £25 million senior unsecured fixed rate
private placement notes issued in September 2021 at a coupon of 2.47% with a
25 year maturity. Shorter-term variable rate funding consisted of an
uncommitted overdraft facility of £60 million with The Bank of New York
Mellon (International) Limited with interest charged at SONIA plus 100 basis
points.
It continues to be the Board’s intention that net gearing will not exceed
15% of the net assets of the Company at the time of the drawdown of the
relevant borrowings. Under normal operating conditions it is envisaged that
gearing will be within a range of 0%-15% of net assets. During the period, net
gearing ranged between 5.5% to 10.4%. The Company’s net gearing stands at
7.4% of net assets as at 22 October 2025, well within our target range.
Management of share rating
During the period, the Company’s shares
traded at an average discount to NAV (with debt at fair value) of 12.3%. The
discount ranged between 11.5% and 13.4% and ended the period at 11.7%. For
comparison, the AIC UK Smaller Companies sector average was 11.8%. The
Company’s shares were trading at a discount of 12.5% to NAV (with debt at
fair value) as at close of business on 22 October 2025. During the period, the
Company bought back a total of 2,139,000 ordinary shares (representing 4.9% of
issued share capital at the start of the period) for a total consideration of
£27,762,000 to be held in treasury (six months to 31 August 2024: 220,000
shares representing 0.5% of issued share capital for total consideration of
£2,968,000).
There are many factors which influence the level of premium/discount at which
a Company’s shares trade in the market, many of which are outside of the
Board’s direct scope of control or influence; not least the pervasive
selling we have witnessed since early 2022 which has depressed share prices in
our asset class and acted to widen discounts. It is important to view the
Company’s share rating and buy back activity in the wider market context,
noting that the Investment Trust sector average discount at 31 August 2025 had
widened to 14.1% compared to 13.2% at the end of July 2025, remaining
correlated with Gilt yields with the UK 10Y Gilt yield increasing from 4.57%
to 4.72%. Buy back activity remained elevated across the sector as a whole as
boards grappled with selling pressure, reaching a record high of £6.6 billion
for 2025 year to date (an increase of 40% from the equivalent period in 2024)
with a record 130 companies buying back shares in February 2025.
Overall, we believe that the share buy back activity undertaken has helped
reduce the volatility of our share rating and delivered NAV accretion. As we
navigate more volatile and uncertain markets, your Board will continue to
monitor the Company’s share rating and may deploy its powers to buyback the
Company’s shares where it believes that it is in shareholders’ long-term
best interests to do so. Shares are only bought back at a discount to NAV
which ensures that these transactions are accretive to the NAV per share and
enhance NAV returns for shareholders. As investor confidence in our sector
returns we expect this approach to help us to achieve a narrowing discount to
NAV.
Since the period end and as at the date of this report, the Company has bought
back 1,086,000 shares into treasury for a total consideration of £14,274,000.
The share buyback activity undertaken from 1 March 2025 has contributed 0.95%
to the NAV per share return over this period.
Evolution of the small-cap sector and changes to investment guidelines
The last few years have seen a number of
economic and market trends impacting the investable universe for the UK small
cap sector. Fewer new companies have listed on the market and the market
capitalisation profile of companies within the benchmark index has shifted
significantly. In 2019 the largest market capitalisation for a company in our
benchmark index was £1.275 billion, but, at 31 August 2025, this had
increased to £2.7 billion. The Board has previously indicated that any new
holdings in the portfolio that are not within the Benchmark Index will
typically have a market cap beneath £2 billion (although the Manager may from
time to time invest in larger market cap companies if these fit the investment
thesis with the prior permission of the Board). Given the changes in small cap
sector market characteristics described above, the Board has removed its
previous £2 billion limit on off-benchmark holdings on the basis that it no
longer has relevance to our investment strategy and acts as a theoretical
barrier between investment themes (small cap versus mid cap) that is no longer
valid. To the extent that the Manager invests in stocks outside of the
Benchmark Index, it is envisaged that this will not exceed more than 15% of
the portfolio by value although this will remain under close review.
In addition, the Board has agreed with the Manager to increase the holding
period for any stocks that are promoted into the FTSE 100 from 30 days to 180
days. The Manager will now be required to sell any stock that enters the FTSE
100 Index within 180 days. This is consistent with the quarterly rebalancing
schedule of the index and the fact that many newly promoted FTSE 100 stocks
fall back into the FTSE 250 the quarter after promotion, and become investable
again. This slightly longer time limit allows the Company flexibility to avoid
what may be unnecessary forced selling of stocks due to purely technical
variations.
No single portfolio holding (excluding holdings in cash fund investments held
for cash management purposes) will, on the date such holding is acquired by
the Company, exceed 5% of the Company’s net asset value. This limit is
unchanged, but the Board will remove from its investment objective the
statement that it has a ‘general aim’ (which could be waived with the
consent of the Board) that no investment would exceed 3% of the portfolio by
value at the time of purchase. This will allow for somewhat greater portfolio
concentration consistent with the available investment universe. The Board
will, however, set out a general aim of investing in a portfolio of between 60
and 90 stocks.
These amendments do not represent a material change to the way the portfolio
is being run or the investment objective; rather they seek to remove outdated
restrictions that obfuscate the realities of the investable universe, as well
as to introduce additional flexibility in volatile market conditions. The
portfolio will remain substantially invested in small-cap companies within the
benchmark index; any holdings that are off-benchmark will be in companies in
the UK Small and Mid-cap space that adhere to the Company’s investment
thesis and remain the most attractive opportunity that can be found amongst a
comparable peer group. The changes will take immediate effect.
Board composition
As mentioned in the Annual Report, Susan
Platts-Martin, after serving nine years on the Board, did not seek re-election
at the Company’s Annual General Meeting in June. The Board wishes to thank
Susan for her wise council and valuable contribution to the Company through
her tenure on the Board and as our Senior Independent Director. Helen Sinclair
took over as Senior Independent Director and James Barnes as the Chair of the
Nomination and Remuneration Committee following Susan’s retirement from the
Board on the 19 June 2025.
Outlook
Since the period end, and up until the close of
business on 22 October 2025, the Company’s NAV per share rose by 3.4%(1,2)
and the share price increased by 2.5%, whilst the benchmark rose by 2.9%(1).
While acknowledging that performance has been challenged, your Board continues
to work closely with the Manager to understand and address the causes of our
performance shortfall. Despite the difficult market backdrop, the smaller
company landscape in the UK remains truly diverse, with a wide range of
sectors represented and a large number of companies within our target
universe. The earnings outlook for our portfolio of companies also remains
broadly positive although all eyes are on the upcoming UK budget and the
associated tax changes that may emerge. There are still clearly a range of
uncertainties impacting the current business and market outlook, economic,
political and geopolitical. While these uncertainties make portfolio decisions
more challenging, they also give our managers opportunities to identify and
select portfolio companies they see as strong performers for the future.
Notwithstanding some periods of relative and absolute improvement, small &
mid-cap stocks in the UK have experienced an extended bear market over more
than four years. During that time the SMID sector has underperformed large
caps by roughly 50%, a painful experience for investors but one that may
finally be near an end. When this cycle turns and confidence begins to
recover, your Manager believes that this has the potential to translate into a
powerful recovery in the share prices of UK smaller companies and your
Company’s investment results.
Your Board remains supportive of our Manager’s skills and resources, their
focus on financially strong companies with innovative and disruptive business
models and market leading offerings. Over time, these holdings should continue
to offer exciting growth opportunities to long-term investors, and the changes
we have implemented in respect of the investment guidelines as described above
will provide additional flexibility for the Manager to navigate the
challenging markets that we are facing. We will continue to consider other
changes as circumstances develop in the future.
If shareholders would like to contact me, please write to BlackRock Smaller
Companies Trust plc, Dundas House, 20 Brandon Street, Edinburgh EH3 5PP marked
for the attention of the Chairman.
Ronald Gould
Chairman
24 October 2025
Investment Manager’s report for the six months ended 31 August 2025
Market review
The first half of this financial year has once
again been a challenge for both the asset class and the relative performance
of the Company. Companies and management teams are doing their best, and in
many cases are delivering solid earnings, but share prices and valuations
continue to struggle in the face of global and local market issues. Growth
investing remains out of favour, smaller company investing equally so, whilst
the performance of the market in general has been dominated by a narrow range
of stocks and themes. On a global basis, 2025 has been a year of artificial
intelligence (“AI”) winners or losers, at times it feels like there are no
other categories, with only gold or crypto interjecting into the conversation.
At times like these it is important to understand the drivers of performance,
and to ask ourselves whether our investment strategy is the right one. Why
have we struggled to deliver the performance objectives that we hold ourselves
to, and is our strategy still relevant? I will discuss the individual stock
specific drivers of performance later, right now I will discuss the broader
themes. Since the start of 2021 there has been a clear bifurcation in returns
between “growth” and “value” investment strategies. Looking at the
broad small-cap universe, the value orientated strategies have significantly
outperformed growth. The normalisation of interest rates from financial crisis
lows coupled with significant economic disruption have impacted the earnings
outlook for many companies whilst at the same time investors have proved
unwilling to place the same multiple on those earnings that they had in the
latter part of the last decade. The focus on value strategies is evidenced by
the poor performance of the active management sector in recent years. Indeed,
in the last twelve months, only six of the forty- three funds in the broader
sector have outperformed the benchmark. The explanation for this lies in the
relatively narrow base of returns for the UK SMID (small and mid-cap
companies) sector this year. A simple look at the stocks that have contributed
most to index returns highlights three main drivers; the resurgence of
commodities (Ithaca Energy, Greatland Resources, Pan African Resources,
Rockhoppper), the continued importance of mergers and acquisitions (“M&A”)
(Alpha Group, Alphawave, Just Group, Bakkavor), and the dominance of
“value” companies (TBC Bank, Serco, OSB, International Workplace Group,
MITIE). Whilst the last twelve months are an extreme example, the same
phenomenon has impacted returns since 2021.
Looking at each of these drivers in turn helps to understand some of the
headwinds the strategy has faced. The Company has prioritised investment in
profitable, well capitalised and growing companies in the continued belief
that over the long term these disciplines produce the best returns. These
priorities tend to make it difficult to find opportunities in the Resources
sector where often companies have pre-production development assets that are
difficult to analyse and require continued shareholder contributions for
ethereal returns. We will invest in production assets (Ithaca, Hothschild
Mining and Pan African Resources are all examples of portfolio companies) but
in periods where commodity prices rally strongly, production assets tend to
underperform development assets.
M&A is difficult to predict, by its very nature it is secretive. When
analysing the activity of the last few months, other than a couple of examples
(Alpha Group, Spectris and FD Technologies) the majority of activity has been
in value companies, as such the benefits of this activity have largely accrued
elsewhere. I have no doubt that the companies we invest in are attractive
strategic assets, and as valuations continue to contract they will undoubtedly
be appearing on the radar of potential acquirors.
Which leads neatly into valuation. It is my continued belief that the level of
outflows seen in the UK SMID market, coupled with a general apathy of
investors to the UK in general, is leading to significant valuation anomalies
and opportunities. It may appear odd for a growth manager to illustrate this
through the property sector, which is more commonly thought of as a value
opportunity, but it serves as a useful illustration. After all the valuation
investors are prepared to put on the future earnings of a growth company is in
many ways arbitrary, involving assumptions for both earnings growth and the
multiple. Whereas property companies have a stated asset value and over time
we can look at the premium or discount the market is prepared to ascribe.
Today British Land trades at a c35% discount to Net Asset Value, Land
Securities similarly. Whilst these large cap stocks are outside of our remit,
they have the benefit of being listed for a long time, allowing us to compare
valuations over an extended period. Further down the market cap, Great
Portland, Shaftesbury and Workspace all trade at roughly a 40% discount. These
valuations are significantly lower than where they traded through most of the
last decade. Irrelevant you may say, the interest rate and economic backdrop
were very different. Today’s valuations are also lower than the early part
of this century, when UK base rates averaged 4.5%. From 2003 through to the
financial crisis the same property stocks traded at premiums to asset value.
Perhaps the current discounts are a reflection of structural changes in the
property market, yet the vacancy rates remain stable and rents continue to
increase. The Bank of England may recently have signalled a shallower path to
interest rate cuts, yet there is nothing to suggest that the forward path is
anything but lower, which will be supportive of valuation yields. It is no
coincidence that much of the M&A seen in the UK this year has been in the
property sector; Empiric Student Property, Warehouse REIT, Assura, Urban
Logistics and Care REIT are all examples of where strategic investors have
seen the opportunity.
The housebuilding sector is similarly out of favour. From Crest Nicholson
trading at 60% of book value to Taylor Wimpey at 90%, the sector trades below
recent history. Again, we could argue interest rates or affordability are at
play here, but the facts do not back up that narrative. Despite rising
interest rates, the house price to earnings ratio sits roughly at the average
of the last decade, mortgage availability is high, rates are falling, the
required deposit for a first time buyer is a lower ratio to annual income than
it has been for years, and only 30% of households utilise mortgages to secure
their home, more own outright whilst the rest of the market rents. It is also
worth remembering that in the current environment, for those that can secure a
deposit, it is cheaper to purchase a house with a mortgage than it is to be a
tenant. The current sorry state of housebuilding volumes owes much to the well
publicised issues in planning, but these are fixable, and the overall volumes
are similar to the average of the last two decades whereas the shares are
valued as they were in the Global Financial Crisis.
I am conscious this analysis would sit more comfortably in the interim report
of a value strategy, but both the property and housebuilding sectors provide a
convenient lens through which to assess market sentiment. I could make similar
claims for most sectors of the UK, across the market sectors and by definition
individual shares are trading at discounts to the long- term averages. Despite
several years of underperformance, and the relative valuation argument, UK
SMID continues to struggle. The same question remains, why is SMID not
performing as an asset class? The simple answer is flows. The space continues
to see unrelenting outflows, with managers across the spectrum facing
redemptions. Whilst the current annual pace of 10% of assets under management
represents a reduction from peak levels, it is still a considerable amount for
a relatively illiquid asset class to absorb. So maybe we need to turn the
question on its head, we can be confident the flow environment is driving the
asset class, so what can change the flow picture, what do investors need to
see to tempt them back to the market? Whilst there is no simple answer to this
(the elusive catalyst I have referred to in previous reports), there are
several conditions that I would argue need to be in place: attractive
valuation, economic stability, political stability, exciting opportunities,
and a willing investor base.
Attractive valuation? What constitutes an “attractive” valuation is in the
eye of the beholder. UK small and midcap equities are trading at a discount to
their long-term averages, and the theoretical equity risk premium is lower
than it has been for many years. Valuations certainly appear attractive to the
strategic buyers of UK assets, with both private equity and corporate buyers
scooping up UK listed assets at a frantic pace. As of the end of August there
have been 58 firm offers for UK listed companies, with the US accounting for a
quarter of acquirers, and the UK over 60%. Yet equity investors are choosing
to exit the market Economic stability? The negative rhetoric towards the UK
has continued. Not a day goes by without inflation, unemployment, growth or
bond markets grabbing the headlines. But is the negativity deserved? It’s
fair to say the economy isn’t motoring.
Unemployment in the UK is rising at a faster rate than the average for the G20
(an intergovernmental forum comprising 19 sovereign countries, the European
Union and the African Union), suggesting Labour’s raid on National Insurance
is having an impact on hiring intentions, but unemployment remains at
relatively low levels. Well known issues with the Labour Force Survey suggest
things may not be as bad as they look, with historic data typically seeing
positive revisions. Real wage growth continues to come through, although the
Asda Income Survey suggests lower income quintiles are starting to feel a
squeeze. Gross domestic product (“GDP”) growth for the UK is not out of
kilter with the rest of the G7 (a forum consisting of Canada, France, Germany,
Italy, Japan, the UK and the US), indeed this year the UK has been a front
runner, although 1.2% isn’t much to get excited about. Inflation is proving
more stubborn than both the Bank of England and the UK population would like,
but once the impact of National Insurance has washed through it should start
to moderate. The Services purchasing managers’ index (“PMI”) is above
50, and had until this month modestly beaten expectations, whilst the
Manufacturing PMI remains weak, but in line with other economies suggesting
this is related to tariff uncertainty rather than a UK specific issue.
Consumer debt has been on a steady decline since the Global Financial Crisis,
from a peak of 160% of disposable income to the current 120%, supported by a
high savings ratio. The issue in the UK, as it is for much of the Western
World, is a high level of Government debt and deficit, although again here the
UK is in a better position than many. Put simply, things are not as bad as
they are made out to be.
Political stability? To say that Labour has struggled to find a compelling
narrative since they came to power is perhaps an understatement. The infamous
£22 billion black hole was followed by a budget that significantly increased
spending and taxes. The proposed changes to benefits have been quashed by back
bench MPs. The next budget is some time away, a time that will no doubt be
filled with leaks and rumours regarding potential tax plans, which will likely
stifle investment, employment, demand and the housing market. Speculation is
already rife: will the Chancellor plough on with a series of micro tax changes
that in and of themselves raise very little revenue but cause substantial and
profound changes to behaviour, or will she go against the Labour manifesto and
raise one of the big three? Borrowing more is not an option, the bond markets
that reacted so quickly to Chancellor Reeves’ apparent tears in Prime
Minister’s Questions will not tolerate more debt, a new and burgeoning black
hole needs to be filled. On the 23 September the Resolution Foundation
published their suggestions for the budget and the message was clear “In
order to raise larger sums, the reality is that personal taxes will have to
rise”. The question isn’t whether a rise in income tax is sensible, it’s
whether the Chancellor is prepared to go against an election pledge. A 2% rise
in income tax is predictable from a behavioral perspective and raises a
worthwhile amount, but at what political cost? If Labour are to break their
election pledge it makes sense for it to do so now, with three years to
demonstrate the benefits before the country returns to the ballot box. A bold
and decisive move on tax, coupled with an effective message on spending and
productivity would calm the bond markets, reduce interest payments, and
eliminate speculation regarding future tax rises. There is a fine balance
here, but what is clear is that a significant majority in the House of Commons
does not necessarily equate to political stability.
Exciting Opportunities? The continued de-equatisation of the UK market is an
issue. I have already referred to the level of M&A, but this is not the only
phenomenon at play here. The UK has continued to lose companies as management
teams seek the perceived benefits of a US listing, and this is the case not
just for large FTSE 100 Index stalwarts, but also for smaller cap companies,
with both Indivior and MaxCyte having re-listed this year. The level of equity
buybacks in the UK is also at record levels, and whilst there is no suggestion
that management are prioritising buybacks over M&A, the relatively low equity
valuations that make buybacks so attractive by definition also make raising
equity for transformational M&A less attractive. The IPO market relies on
stability, it takes months to produce documentation, warm up investors,
complete analyst education and launch a roadshow, but with another uncertain
period ahead of the November budget it takes a brave management team to push
ahead, suggesting little new issuance for the remainder of this year. With
this backdrop it is a good thing the UK market remains home to a host of
exciting businesses across a range of sectors, now at bargain valuations. I
remain convinced the IPO market will return. London remains an unparalleled
listing venue for smaller companies, with a deep pool of expertise, and there
are many private equity funds looking to exit positions as well as
entrepreneurial management teams looking for the next stage in their company
lifecycle. A healthy functioning IPO market will help catalyse investor
re-engagement with the UK equity market.
A willing investor base? Once the other conditions have been met, the final
piece of the puzzle is having investors with assets that are willing to commit
to the UK. For the last several years investors have focused on the US market,
and why not, it is after all home to some of the world’s leading and most
exciting companies. History reminds us of the need for portfolio
diversification, and there is a significant asset base in the UK that could be
redirected towards the domestic market if conditions are right. The UK still
enjoys the rule of law, regulatory protections, and an open economy, it has a
functioning and broad market that should be attractive to long term investors.
In summary, the UK SMID market is suffering from what appears to be a crisis
of confidence, with negative sentiment impacting on investment decisions that
perpetuate the outflows and heap further pressure on valuations. The poor
budgetary management of the Labour party is further adding to the uncertainty
leading to both consumers and corporates delaying investment decisions. But
underneath this the current UK economic picture isn’t as bad as it is often
presented, it’s not boom time, but neither is it a recession.
Performance review
The previous section discussed why the asset
class continues to struggle compared to large cap equities. Now it is time to
turn to the performance of the Company. In the period under review the Company
returned 2.9% versus the benchmark return of 9.9%. This is a disappointing
performance, one that is more reflective of sector positioning than stock
specific issues. Through the period under review, our stock specific
disappointments have been relatively limited, but the portfolio’s exposure
to property, construction, leisure and food companies has been far more
damaging. These sectors have all been impacted by fears over the potential
impact of the forthcoming budget on consumer confidence, employment and costs.
To quantify this, the Consumer Goods sector detracted by 1.4% from relative
performance. This was in part due to valuations for some holdings drifting
despite results being in-line with forecasts. In addition, a bid for
Bakkavor (by the portfolio holding Greencore Group) also hurt performance (as
the stock is a constituent of the Benchmark Index, but was not held in the
portfolio). The Consumer Services sector cost 1.6% on a relative basis,
largely through the continued under-performance of the Media sector where we
have maintained a modest overweight, (albeit a large proportion of this is
through our position in Bloomsbury which is exposed to different drivers to
the broader media sector). The Financials sector has been a headwind in the
period, detracting from relative performance by 1.1%. One specific driver has
been the recovery in some of the stocks which were impacted by the FCA’s
investigation into the motor finance industry, coupled with a rally in some of
the asset managers that have previously seen more extreme outflows.
Frustratingly the biggest detractor in the Financials sector has been XPS
Pensions, where the valuation has fallen despite an absence of any negative
newsflow and strong earnings. XPS Pensions remains a significant position in
the Company.
Turning to the stock specific drivers of performance, the largest single
detractor in the period was ingredients company Treatt which has been impacted
by a combination of and a weakening of US consumer confidence around the time
of tariffs, leading to deferred orders, and high citrus prices forcing
customers to look at product reformulation. Bid activity also detracted from
performance. At the end of July, Brookfield announced an all-cash offer for
Just Group. Frustratingly we had sold our position in Just Group in the face
of a weakening market environment prior to the bid. Bloomsbury shares fell on
the back of slightly reduced guidance for the coming year. The company
highlighted weakness in the US academic publishing markets (a trend that has
subsequently been referenced by others in the sector) as the driver for the
lower earnings forecast. Academic publishing accounts for roughly a quarter of
Bloomsbury’s revenue, so this development is not insignificant; however we
believe the announcement of the next Sarah J Mass novel will be of far more
importance to the group. The deterioration of sentiment towards domestic UK
stocks has continued in the period. In some cases the underperformance
accurately reflects disappointing earnings. Breedon’s interim results
highlighted poor conditions in the UK, major project delays in Ireland and
adverse weather conditions in the US, whilst MJ Gleeson compounded the impact
of a weak UK housing market with its own operational issues. In other cases
such as Luceco, the share price weakness has been driven by investor sentiment
rather than any specific operational issues, with the company continuing to
report numbers that are in-line with expectations.
Looking to the positive performers, Boku is an example of what can happen when
the selling pressure passes. A victim of fund outflows in the preceding
period, the shares have regained the lost ground simply by delivering on
expectations. We continue to believe Boku’s enviable market position and
relationships with major technology companies provide an attractive avenue
into the growing local payments market. Oxford Biomedica’s share price has
continued to react positively to the strategic pivot to becoming a Contract
Development and Manufacturing Organisation (CDMO). The company has recently
raised £60 million in fresh equity to help accelerate the process. Chemring
Group, like most defence stocks, has responded to the deep rooted geopolitical
problems. Its order book rose by 25% at the half year as European customers
not only reassessed their own requirements, but also the security of their
supply chains, resulting in more demand for domestic European suppliers.
Whilst there has been a significant amount of M&A in the UK market, the
Company has largely missed out, so we were delighted to see Corpay make a
£42.50 all cash offer for Alpha Group, a 55% premium to the screen price.
Activity
Portfolio activity has been relatively elevated
as we have reflected some of the structural changes we see in the market into
the portfolio. The largest new addition in the period came from the equity
placing in Rosebank Industries as management tapped the equity market for over
£1 billion to fund the acquisition of Electrical Components International. We
remain excited at the prospect of Rosebank management replicating the early
successes they saw at their time at Melrose. Valuations across the property
sector continue to reach levels we see as attractive for long term investment.
Both Shaftesbury and Safestore have been trading at significantly under their
net asset value. Whilst comparisons are hard to find, it is of interest to
note that Shaftesbury have announced a strategic interest in their Covent
Garden assets that underwrite the net asset value, whilst Safestore trades
under the valuation that peer Lok N Store was acquired for.
We have exited positions where we see a risk of sustained earnings pressure.
Gamma Communications has historically been a large holding for the Company,
however we have become concerned by both concerns over the health of their SME
customer base coupled with the strategic rationale of the recent expansion
into Germany. The health of SME’s is a recurring theme, which has also led
to the disposal of Workspace, where high levels of vacancy may lead to price
pressure. Coats have acquired the footwear business OrthoLite Holdings, and
whilst we understand the strategy to diversify into the attractive footwear
sector, with tariffs impacting on customer decision making and planning, it
feels like the wrong moment to leverage the balance sheet.
Outlook
It is very easy to be negative. The
geo-political situation is volatile, the economic outlook is unstable, there
are significant structural and technological trends upending industries and
western governments are weighed down by debt at the same time the requirements
for defence, welfare and health continue to rise. From a UK perspective the
budget has increased pressure on businesses and injected further inflationary
pressures into the economy, in turn making it harder for the Bank of England
to reduce rates. This uncertainty has resulted in significant outflows across
UK equities, which have been particularly damaging to SMID companies. Whilst
history does not necessarily repeat, it can provide a guide. Smaller companies
have seen much of this before, the Global Financial Crisis, Brexit, Covid, and
many of them came through these difficult times better positioned. The level
of M&A in the UK tells us others perceive value in the asset class, all we
need now is to encourage equity investors to sense the same opportunity. I
remain convinced market sentiment will shift towards these stocks. The UK
market trades at a discount to international peers, and UK smaller companies
trade at a discount to their larger cap cousins and relative to their own
past. “History doesn’t repeat itself, but it often rhymes”, and at some
point I believe we will hear something that sounds distinctly like 2003 or
2009, both years where for no apparent reason the renaissance of the small-cap
markets began.
Roland Arnold
Blackrock Investment Management (UK) Limited
24 October 2025
Twenty largest investments as at 31 August 2025
Company Business activity Market % of
value total
£’000 portfolio
Boku Digital payments company 17,875 2.9
XPS Pensions Leading independent pensions consultancy and administration firm 17,286 2.8
Tatton Asset Management Provider of discretionary fund management services to financial advisors 16,949 2.7
IntegraFin Investment platform for financial advisers 16,390 2.6
Great Portland Estates British property development and investment company 15,631 2.5
Greencore Group A leading manufacturer of convenience food in the UK. It supplies major supermarkets and other retailers with products like sandwiches, salads, sushi, chilled ready meals and sauces 14,877 2.4
Morgan Sindall Office fit-out, construction and urban regeneration services 14,323 2.3
Ithaca Energy A UK-based oil and gas company operating in the North Sea 14,273 2.3
Serco Group Public services across health, transport, immigration, defence, justice and citizen services 13,601 2.2
Rosebank Industries Investment business that buys, improves and sells industrial and manufacturing businesses 13,368 2.2
Premier Foods UK food manufacturer 12,633 2.0
Alfa Financial Software Provider of software for customers working in the asset finance industry 12,020 1.9
Sigmaroc Specialist limestone and quarried materials business 11,868 1.9
Chemring Group Advanced technology products and services for the aerospace, defence and security markets 10,878 1.8
Young & Co’s Brewery – A Shares UK-based pub and hotel operator 10,856 1.8
PayPoint Digital payments business 10,824 1.8
Pollen Street Group Alternatives asset manager with strategies across private equity and private credit 10,640 1.7
AJ Bell UK investment platform 10,132 1.6
Sirius Real Estate Owner and operator of business parks, offices and industrial complexes in Germany 9,993 1.6
Elementis Speciality chemicals company 9,837 1.6
--------------- ---------------
Twenty largest investments 264,254 42.6
--------------- ---------------
Remaining investments 355,789 57.4
========= =========
Total 620,043 100.0
========= =========
Details of the full portfolio are available on the Company’s website at
www.blackrock.com/uk/brsc
.
Portfolio holdings in excess of 3% of issued share capital
At 31 August 2025, the Company did not hold any
equity investments comprising more than 3% of any company’s share capital
other than as disclosed in the table below:
Security % of share capital held
Tatton Asset Management 3.9
Luceco 3.5
Diaceutics 3.1
=========
Investment exposure as at 31 August 2025
Investment size
Number of investments Market value of investments as % of portfolio
£0m-£1m 3 0.3
£2m-£3m 6 2.5
£3m-£4m 9 5.2
£4m-£5m 6 4.5
£5m-£6m 7 6.3
£6m-£7m 8 8.3
£7m-£8m 7 8.6
£8m-£9m 8 11.0
£9m-£10m 9 13.9
£10m-£11m 5 8.6
£11m-£12m 1 1.9
£12m-£13m 2 4.0
£13m-£14m 2 4.3
£14m-£15m 3 7.0
£15m-£16m 1 2.5
£16m-£17m 2 5.4
£17m-£18m 2 5.7
Source: BlackRock.
Analysis of portfolio value by sector (%)
Company Benchmark (Deutsche Numis Smaller Companies plus AIM (ex Investment Companies) Index)
Energy 2.7 5.2
Basic Materials 4.3 8.4
Industrials 33.4 25.1
Consumer Discretionary 10.0 15.0
Health Care 4.2 4.8
Consumer Staples 9.3 5.9
Telecommunications 0.9 2.1
Financials 23.6 16.2
Real Estate 6.6 7.1
Technology 3.9 7.4
Utilities 1.1 2.0
Other 0.0 0.8
Sources: BlackRock and LSEG Datastream.
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
*
Market
*
Income/dividend
*
Legal and compliance
*
Operational
*
Financial
*
Marketing
The Board reported on the principal risks and uncertainties faced by the
Company in the Annual Report and Financial Statements for the year ended 28
February 2025. A detailed explanation can be found in the Strategic Report on
pages 35 to 39 and note 17 on pages 101 to 108 of the Annual Report and
Financial Statements which is available on the website maintained by BlackRock
at
www.blackrock.com/uk/brsc
.
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, there have not been any changes to the fundamental
nature of the principal risks and uncertainties since the previous report and
these are equally applicable to the remaining six months of the financial year
as they were to the six months under review.
Going concern
The Board is mindful of the risk that
unforeseen or unprecedented events including (but not limited to) heightened
geopolitical tensions such as the wars in Ukraine and Middle East, their
longer-term effects on the global economy, high inflation and the current cost
of living crisis could have a significant impact on global markets.
Notwithstanding these uncertainties, the Directors, having considered the
nature and liquidity of the portfolio, the Company’s investment objective,
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. Therefore, for the reasons set
out above, the Directors continue to adopt the going concern basis in
preparing the financial statements.
Related party disclosure and transactions with the AIFM and Investment 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. Details of the
management and marketing fees payable are set out in notes 4 and 5
respectively below. The related party transactions with the Directors are set
out in note 15 below.
Directors’ Responsibility Statement
The Disclosure Guidance and Transparency Rules
(DTR) 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 and belief 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 Financial Conduct
Authority’s (FCA) Disclosure Guidance and Transparency Rules.
The Half Yearly Financial Report has not been audited or reviewed by the
Company’s Auditor.
The Half Yearly Financial Report was approved by the Board on 24 October 2025
and the above Responsibility Statement was signed on its behalf by the
Chairman.
Ronald Gould
for and on behalf of the Board
24 October 2025
Income Statement for the six months ended 31 August 2025
Six months ended Six months ended Year ended
31 August 2025 31 August 2024 28 February 2025
(unaudited) (unaudited) (audited)
Notes Revenue Capital Total Revenue Capital Total Revenue Capital Total
£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
Gains/(losses) on investments held at fair value through profit or loss – 4,083 4,083 – 88,199 88,199 – (19,794) (19,794)
Gains/(losses) on foreign exchange – 17 17 – (7) (7) – (3) (3)
Income from investments held at fair value through profit or loss 3 11,660 – 11,660 14,494 798 15,292 22,684 875 23,559
Other income 3 570 – 570 – – – 1 – 1
--------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- ---------------
Total income/(loss) 12,230 4,100 16,330 14,494 88,990 103,484 22,685 (18,922) 3,763
========= ========= ========= ========= ========= ========= ========= ========= =========
Expenses
Investment management fee 4 (498) (1,495) (1,993) (615) (1,845) (2,460) (1,153) (3,458) (4,611)
Other operating expenses 5 (459) (14) (473) (510) (14) (524) (940) (25) (965)
--------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- ---------------
Total operating expenses (957) (1,509) (2,466) (1,125) (1,859) (2,984) (2,093) (3,483) (5,576)
========= ========= ========= ========= ========= ========= ========= ========= =========
Net profit/(loss) on ordinary activities before finance costs and taxation 11,273 2,591 13,864 13,369 87,131 100,500 20,592 (22,405) (1,813)
Finance costs 6 (238) (714) (952) (332) (900) (1,232) (627) (1,781) (2,408)
Net profit/(loss) on ordinary activities before taxation 11,035 1,877 12,912 13,037 86,231 99,268 19,965 (24,186) (4,221)
Taxation (23) – (23) (55) – (55) (47) – (47)
--------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- ---------------
Net profit/(loss) on ordinary activities after taxation 11,012 1,877 12,889 12,982 86,231 99,213 19,918 (24,186) (4,268)
========= ========= ========= ========= ========= ========= ========= ========= =========
Earnings/(loss) per ordinary share (pence) – basic and diluted 8 25.77 4.39 30.16 27.54 182.93 210.47 42.53 (51.64) (9.11)
========= ========= ========= ========= ========= ========= ========= ========= =========
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/(loss) for the period disclosed above represents the
Company’s total comprehensive income/(loss).
Statement of Changes in Equity for the six months ended 31 August 2025
Notes Called Share Capital Capital Revenue Total
up share premium redemption reserves reserve £’000
capital account reserve £’000 £’000
£’000 £’000 £’000
For the six months ended 31 August 2025 (unaudited)
At 28 February 2025 12,498 51,980 1,982 529,771 18,548 614,779
Total comprehensive income:
Net profit for the period – – – 1,877 11,012 12,889
Transactions with owners, recorded directly to equity:
Ordinary shares repurchased into treasury – – – (27,577) – (27,577)
Share repurchase costs – – – (185) – (185)
Dividends paid(1) 7 – – – – (12,285) (12,285)
--------------- --------------- --------------- --------------- --------------- ---------------
At 31 August 2025 12,498 51,980 1,982 503,886 17,275 587,621
========= ========= ========= ========= ========= =========
For the six months ended 31 August 2024 (unaudited)
At 29 February 2024 12,498 51,980 1,982 601,098 18,648 686,206
Total comprehensive income:
Net profit for the period – – – 86,231 12,982 99,213
Transactions with owners, recorded directly to equity:
Ordinary shares repurchased into treasury – – – (2,940) – (2,940)
Share repurchase costs – – – (28) – (28)
Dividends paid(2) 7 – – – – (12,717) (12,717)
--------------- --------------- --------------- --------------- --------------- ---------------
At 31 August 2024 12,498 51,980 1,982 684,361 18,913 769,734
========= ========= ========= ========= ========= =========
For the year ended 28 February 2025 (audited)
At 29 February 2024 12,498 51,980 1,982 601,098 18,648 686,206
Total comprehensive (loss)/income:
Net (loss)/profit for the year – – – (24,186) 19,918 (4,268)
Transactions with owners, recorded directly to equity:
Ordinary shares repurchased into treasury – – – (46,838) – (46,838)
Share repurchase costs – – – (303) – (303)
Dividends paid(3) 7 – – – – (20,018) (20,018)
--------------- --------------- --------------- --------------- --------------- ---------------
At 28 February 2025 12,498 51,980 1,982 529,771 18,548 614,779
========= ========= ========= ========= ========= =========
1 Final dividend paid in respect of the year ended 28 February 2025 of
28.50p per share was declared on 7 May 2025 and paid on 26 June 2025.
2 Final dividend paid in respect of the year ended 29 February 2024 of
27.00p per share was declared on 14 May 2024 and paid on 27 June 2024.
3 Interim dividend paid in respect of the year ended 28 February 2025 of
15.50p was declared on 24 October 2024 and paid on 4 December 2024. Final
dividend paid in respect of the year ended 29 February 2024 of 27.00p was
declared on 14 May 2024 and paid on 27 June 2024.
For information on the Company’s distributable reserves, please refer to
note 12.
Balance Sheet as at 31 August 2025
Notes 31 August 31 August 28 February
2025 2024 2025
(unaudited) (unaudited) (audited)
£’000 £’000 £’000
Non current assets
Investments held at fair value through profit or loss 13 620,043 851,197 696,573
Current assets
Current tax assets 105 132 84
Debtors 3,842 4,958 9,738
Cash and cash equivalents – cash at bank 40,458 – –
--------------- --------------- ---------------
Total current assets 44,405 5,090 9,822
========= ========= =========
Current liabilities
Cash and cash equivalents – bank overdraft (168) (10,102) (9,230)
Creditors – amounts falling due within one year (7,102) (6,922) (12,843)
--------------- --------------- ---------------
Net current liabilities 37,135 (11,934) (12,251)
========= ========= =========
Total assets less current liabilities 657,178 839,263 684,322
========= ========= =========
Creditors – amounts falling due after more than one year 9, 10 (69,557) (69,529) (69,543)
--------------- --------------- ---------------
Net assets 587,621 769,734 614,779
========= ========= =========
Total equity
Called up share capital 11 12,498 12,498 12,498
Share premium account 51,980 51,980 51,980
Capital redemption reserve 1,982 1,982 1,982
Capital reserves 503,886 684,361 529,771
Revenue reserve 17,275 18,913 18,548
--------------- --------------- ---------------
Total shareholders’ funds 8 587,621 769,734 614,779
--------------- --------------- ---------------
Net asset value per ordinary share (debt at par value) (pence) 8 1,410.32 1,634.26 1,403.45
========= ========= =========
Net asset value per ordinary share (debt at fair value) (pence) 8 1,477.13 1,684.43 1,463.44
========= ========= =========
Statement of Cash Flows for the six months ended 31 August 2025
Six months Six months Year
ended ended ended
31 August 31 August 28 February
2025 2024 2025
(unaudited) (unaudited) (audited)
£’000 £’000 £’000
Operating activities
Net profit/(loss) on ordinary activities before taxation(1) 12,912 99,268 (4,221)
Add back finance costs 952 1,232 2,408
(Gains)/losses on investments held at fair value through profit or loss (4,083) (88,199) 19,794
Net movement in foreign exchange (17) 7 3
Sales of investments held at fair value through profit or loss 332,624 211,755 541,426
Purchase of investments held at fair value through profit or loss (246,249) (207,606) (493,890)
Net amount for capital special dividends received – (798) (875)
(Increase)/decrease in debtors (820) (1,273) 348
(Decrease)/increase in other creditors (3,485) 409 1,065
Taxation on investment income (23) (55) (47)
--------------- --------------- ---------------
Net cash generated from operating activities 91,811 14,740 66,011
========= ========= =========
Financing activities
Ordinary shares repurchased into treasury (28,903) (3,006) (44,663)
Share repurchase costs (185) (28) (303)
Interest paid (935) (1,213) (2,383)
Dividends paid (12,285) (12,717) (20,018)
--------------- --------------- ---------------
Net cash used in financing activities (42,308) (16,964) (67,367)
========= ========= =========
Increase/(decrease) in cash and cash equivalents 49,503 (2,224) (1,356)
Effect of foreign exchange rate changes 17 (7) (3)
Cash and cash equivalents at the beginning of the period/year (9,230) (7,871) (7,871)
--------------- --------------- ---------------
Cash and cash equivalents at the end period/year 40,290 (10,102) (9,230)
========= ========= =========
Comprised of:
Cash at bank 17 – –
Cash Fund(2) 40,441 – –
Bank overdraft (168) (10,102) (9,230)
--------------- --------------- ---------------
40,290 (10,102) (9,230)
========= ========= =========
1 Dividends and interest received in cash during the six months ended 31
August 2025 amounted to £10,908,000 and £463,000 (six months ended 31 August
2024: £13,289,000 and £nil; year ended 28 February 2025: £22,774,000 and
£1,000).
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 31 August 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 28 February 2025.
3. Income
Six months Six months Year
ended ended ended
31 August 31 August 28 February
2025 2024 2025
(unaudited) (unaudited) (audited)
£’000 £’000 £’000
Investment income(1):
UK dividends 9,427 11,921 18,567
UK special dividends 441 605 801
UK property income distributions 430 841 1,007
Dividends from UK REITs(2) 367 – 493
Overseas dividends 560 1,049 1,514
Overseas special dividends 168 78 –
Dividends from overseas REITs(2) 267 – 302
--------------- --------------- ---------------
Total investment income 11,660 14,494 22,684
========= ========= =========
Other income:
Bank Interest 15 – 1
Interest from Cash Fund 555 – –
--------------- --------------- ---------------
Total other income 570 – 1
--------------- --------------- ---------------
Total 12,230 14,494 22,685
========= ========= =========
1 UK and overseas dividends are disclosed based on the country of
domicile of the underlying portfolio company.
2 REITs – real estate investment trusts.
Special dividends of £nil have been recognised in capital during the six
months ended 31 August 2025 (six months ended 31 August 2024: £798,000; year
ended 28 February 2025: £875,000).
Dividends and interest received in cash during the period amounted to
£10,908,000 and £463,000 (six months ended 31 August 2024: £13,289,000 and
£nil; year ended 28 February 2025: £22,774,000 and £1,000).
4. Investment management fee
Six months ended Six months ended Year ended
31 August 2025 31 August 2024 28 February 2025
(unaudited) (unaudited) (audited)
Revenue Capital Total Revenue Capital Total Revenue Capital Total
£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
Investment management fee 498 1,495 1,993 615 1,845 2,460 1,153 3,458 4,611
--------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- ---------------
Total 498 1,495 1,993 615 1,845 2,460 1,153 3,458 4,611
========= ========= ========= ========= ========= ========= ========= ========= =========
The investment management fee is based on a rate of 0.6% of the first £750
million of total assets (excluding current year income) less the current
liabilities of the Company (the “Fee Asset Amount”), reducing to 0.5%
above this level. The fee is calculated at the rate of one quarter of 0.6% of
the Fee Asset Amount up to the initial threshold of £750 million, and one
quarter of 0.5% of the Fee Asset Amount in excess thereof, at the end of each
quarter. The investment management fee is allocated 25% to the revenue account
and 75% to the capital account of the Income Statement.
5. Other operating expenses
Six months Six months Year
ended ended ended
31 August 31 August 28 February
2025 2024 2025
(unaudited) (unaudited) (audited)
£’000 £’000 £’000
Allocated to revenue:
Custody fees 4 5 9
Depositary fees 34 42 83
Auditors’ remuneration 30 29 52
Registrar’s fee 23 23 46
Directors’ emoluments 105 112 240
Marketing fees 59 136 195
AIC fees 12 11 22
Bank charges 12 12 24
Broker fees 26 18 23
Stock exchange listings 23 21 41
Printing and postage fees 27 24 39
Legal fees 10 9 43
Prior year expenses written back(1) – – (11)
Other administrative costs 94 68 134
--------------- --------------- ---------------
Total revenue expenses 459 510 940
========= ========= =========
Allocated to capital:
Custody transaction charges(2) 14 14 25
--------------- --------------- ---------------
Total capital expenses 14 14 25
--------------- --------------- ---------------
Total 473 524 965
========= ========= =========
1 No expenses have been written back during the six months ended 31
August 2025 (six months ended 31 August 2024: none; year ended 28 February
2025: bank charges, printing and postage fees and other administrative costs).
2 For the six month period ended 31 August 2025, expenses of £14,000
(six months ended 31 August 2024: £14,000; year ended 28 February 2025:
£25,000) 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 direct transaction costs incurred on the acquisition of investments
amounted to £1,153,000 for the six months ended 31 August 2025 (six months
ended 31 August 2024: £887,000; year ended 28 February 2025: £2,136,000).
Costs relating to the disposal of investments amounted to £274,000 for the
six months ended 31 August 2025 (six months ended 31 August 2024: £159,000;
year ended 28 February 2025: £406,000). All direct transaction costs have
been included within capital reserves.
6. Finance costs
Six months ended Six months ended Year ended
31 August 2025 31 August 2024 28 February 2025
(unaudited) (unaudited) (audited)
Revenue Capital Total Revenue Capital Total Revenue Capital Total
£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
Interest on 2.74% loan note 2037 87 260 347 87 260 347 173 518 691
Interest on 2.41% loan note 2044 60 182 242 60 182 242 121 362 483
Interest on 2.47% loan note 2046 76 228 304 76 228 304 152 456 608
Interest on bank overdraft 11 34 45 105 220 325 173 425 598
2.74% Amortised loan note issue expenses 2 5 7 2 5 7 4 10 14
2.41% Amortised loan note issue expenses 1 2 3 1 2 3 2 5 7
2.47% Amortised loan note issue expenses 1 3 4 1 3 4 2 5 7
--------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- ---------------
Total 238 714 952 332 900 1,232 627 1,781 2,408
========= ========= ========= ========= ========= ========= ========= ========= =========
Finance costs have been allocated 25% to the revenue account and 75% to the
capital account of the Income Statement.
7. Dividends
In accordance with FRS 102, Section 32 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.
The Board has declared an interim dividend of 16.00p per share (31 August
2024: 15.50p per share), payable on 10 December 2025 to shareholders on the
Company’s register as at 7 November 2025; the ex-dividend date is 6 November
2025. The total cost of this dividend, based on 40,579,792 shares in issue at
22 October 2025, is £6,493,000 (31 August 2024: £7,300,000).
8. Returns and net asset value per share
Revenue earnings, capital earnings/(loss) and
net asset value per share are shown below and have been calculated using the
following:
Six months Six months Year
ended ended ended
31 August 31 August 28 February
2025 2024 2025
(unaudited) (unaudited) (audited)
Revenue return attributable to ordinary shareholders (£’000) 11,012 12,982 19,918
Capital profit/(loss) attributable to ordinary shareholders (£’000) 1,877 86,231 (24,186)
--------------- --------------- ---------------
Total profit/(loss) attributable to ordinary shareholders (£’000) 12,889 99,213 (4,268)
--------------- --------------- ---------------
Total shareholders’ funds (£’000) 587,621 769,734 614,779
========= ========= =========
The weighted average number of ordinary shares in issue during the period on which the earnings per ordinary share was calculated was: 42,739,199 47,138,725 46,833,380
The actual number of ordinary shares in issue at the end of each period on which the undiluted net asset value was calculated was: 41,665,792 47,099,792 43,804,792
Earnings per share
Revenue earnings per share (pence) – basic and diluted 25.77 27.54 42.53
Capital earnings/(loss) per share (pence) – basic and diluted 4.39 182.93 (51.64)
--------------- --------------- ---------------
Total earnings/(loss) per share (pence) – basic and diluted 30.16 210.47 (9.11)
========= ========= =========
As at As at As at
31 August 31 August 28 February
2025 2024 2025
(unaudited) (unaudited) (audited)
Net asset value per ordinary share (debt at par value) (pence) 1,410.32 1,634.26 1,403.45
Net asset value per ordinary share (debt at fair value) (pence) 1,477.13 1,684.43 1,463.44
Ordinary share price (pence) 1,304.00 1,524.00 1,270.00
========= ========= =========
9. Creditors – amounts falling due after more than one year
As at As at As at
31 August 31 August 28 February
2025 2024 2025
(unaudited) (unaudited) (audited)
£’000 £’000 £’000
Amounts falling due after more than one year
2.74% loan note 2037 25,000 25,000 25,000
Unamortised loan note issue expenses (161) (166) (168)
--------------- --------------- ---------------
24,839 24,834 24,832
========= ========= =========
2.41% loan note 2044 20,000 20,000 20,000
Unamortised loan note issue expenses (124) (130) (127)
--------------- --------------- ---------------
19,876 19,870 19,873
========= ========= =========
2.47% loan note 2046 25,000 25,000 25,000
Unamortised loan note issue expenses (158) (175) (162)
--------------- --------------- ---------------
24,842 24,825 24,838
========= ========= =========
Total 69,557 69,529 69,543
========= ========= =========
The fair value of the 2.74% loan note has been determined based on a
comparative yield for UK Gilts for similar duration maturity and spreads, and
as at 31 August 2025 equated to a valuation of 72.48p per note (31 August
2024: 76.63p; 28 February 2025: 73.47p), a total of £18,120,000 (31 August
2024: £19,158,000; 28 February 2025: £18,368,000). The fair value of the
2.41% loan note has been determined based on a comparative yield for UK Gilts
for similar duration maturity and spreads, and as at 31 August 2025 equated to
a valuation of 54.72p per note (31 August 2024: 61.74p; 28 February 2025:
57.61p), a total of £10,944,000 (31 August 2024: £12,348,000; 28 February
2025: £11,522,000). The fair value of the 2.47% loan note has been determined
based on a comparative yield for UK Gilts for similar duration maturity and
spreads, and as at 31 August 2025 equated to a valuation of 50.63p per note
(31 August 2024: 57.58p; 28 February 2025: 53.50p), a total of £12,658,000
(31 August 2024: £14,395,000; 28 February 2025: £13,375,000).
The first £25 million loan note was issued on 24 May 2017. Interest on the
note is payable in equal half yearly instalments on 24 May and 24 November in
each year. The loan note is unsecured and is redeemable at par on 24 May 2037.
The £20 million loan note was issued on 3 December 2019. Interest on the note
is payable in equal half yearly instalments on 3 December and 3 June in each
year. The loan note is unsecured and is redeemable at par on 3 December 2044.
The second £25 million loan note was issued on 16 September 2021. Interest on
the note is payable in equal half yearly instalments on 16 March and 16
September each year. The loan note is unsecured and is redeemable at par on 16
September 2046.
The Company also has available an uncommitted overdraft facility of £60
million with The Bank of New York Mellon (International) Limited, of which
£168,000 had been utilised at 31 August 2025 (31 August 2024: £10,102,000;
28 February 2025: £9,230,000).
The Company has complied with all covenants during the period related to the
loan and borrowings.
10. Reconciliation of liabilities arising from financing activities
Six months Six months Year ended
ended ended 28 February
31 August 31 August 2025
2025 2024 (audited)
(unaudited) (unaudited) £’000
£’000 £’000
Debt arising from financing activities at beginning of period/year:
Cash at bank – bank overdraft 9,230 7,899 7,899
Loan notes 69,543 69,515 69,515
--------------- --------------- ---------------
Total 78,773 77,414 77,414
========= ========= =========
Cash flows:
Movement in bank overdraft (9,062) 2,203 1,331
Non-cash flows:
Amortisation of loan note issue expenses 14 14 28
Debt arising from financing activities at end of period/year
Cash at bank – bank overdraft 168 10,102 9,230
Loan notes 69,557 69,529 69,543
--------------- --------------- ---------------
Total 69,725 79,631 78,773
========= ========= =========
11. Called up share capital
Ordinary shares Treasury Total Nominal
in issue shares shares value
(number) (number) (number) £’000
Allotted, called up and fully paid share capital comprised:
Ordinary shares of 25p each
At 29 February 2024 (audited) 47,319,792 2,673,731 49,993,523 12,498
Ordinary shares repurchased into treasury (220,000) 220,000 – –
--------------- --------------- --------------- ---------------
At 31 August 2024 (unaudited) 47,099,792 2,893,731 49,993,523 12,498
Ordinary shares repurchased into treasury (3,295,000) 3,295,000 – –
--------------- --------------- --------------- ---------------
At 28 February 2025 (audited) 43,804,792 6,188,731 49,993,523 12,498
Ordinary shares repurchased into treasury (2,139,000) 2,139,000 – –
--------------- --------------- --------------- ---------------
At 31 August 2025 (unaudited) 41,665,792 8,327,731 49,993,523 12,498
========= ========= ========= =========
During the six months ended 31 August 2025, the Company has repurchased
2,139,000 shares (six months ended 31 August 2024: 220,000; year ended 28
February 2025: 3,515,000) into treasury for a total consideration of
£27,762,000 (six months ended 31 August 2024: £2,968,000; year ended 28
February 2025: £47,141,000).
Since 31 August 2025 and up to the latest practicable date of 22 October 2025.
A further 1,086,000 ordinary shares have been repurchased into treasury for a
total consideration of £14,274,000.
The ordinary shares (excluding any shares held in treasury) carry the right to
receive any dividends and have one voting right per ordinary share. There are
no restrictions on the voting rights of the ordinary shares or on the transfer
of ordinary shares.
12. Reserves
The share premium account of £51,980,000 (31
August 2024: £51,980,000; 28 February 2025: £51,980,000) and capital
redemption reserve of £1,982,000 (31 August 2024: £1,982,000; 28 February
2025: £1,982,000) 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 capital
reserves of £503,886,000 (31 August 2024: £684,361,000; 28 February 2025:
£529,771,000) 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 capital reserve and the revenue reserve may be distributed by
way of dividend. The gain on the capital reserve arising on the revaluation of
investments of £67,560,000 (31 August 2024: £109,443,000; 28 February 2025:
£19,255,000) 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.
As at 31 August 2025, the Company’s distributable reserves (excluding
capital reserves on the revaluation of investments) amounted to £453,601,000
(31 August 2024: £593,831,000; 28 February 2025: £529,064,000).
13. 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.
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 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 and bank overdrafts). 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 91 of the Annual Report and Financial Statements for the year ended 28
February 2025.
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 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 an analysis of the
Company’s financial instruments measured at fair value at the balance sheet
date.
Level 1 Level 2 Level 3 Total
£’000 £’000 £’000 £’000
Financial assets at fair value through profit or loss
Equity investments at 31 August 2025 (unaudited) 620,043 – – 620,043
Equity investments at 31 August 2024 (unaudited) 851,197 – – 851,197
Equity investments at 28 February 2025 (audited) 694,356 – 2,217 696,573
The Company did not hold any Level 3 securities as at 31 August 2025 (31
August 2024: none; 28 February 2025: one).
A reconciliation of fair value measurement of Level 3 is set out below.
Six months Six months Year ended
ended ended 28 February
31 August 31 August 2025
2025 2024 (audited)
(unaudited) (unaudited) £’000
£’000 £’000
Level 3 financial assets at fair value through profit or loss
Opening fair value 2,217 – –
Additions at cost – – 770
Gain on investments included in gains on investments in the Income Statement – – 1,447
Assets transferred to Level 1 during the period (2,217) – –
--------------- --------------- ---------------
Closing balance – – 2,217
========= ========= =========
As at 28 February 2025, the investment in Rosebank Industries was a Level 3
investment due to there being a temporary suspension of the listing price.
This was transferred to Level 1 during the period as the temporary suspension
of the listing price was removed. The suspension was lifted effective 11 June
2025.
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
risks, including climate change risk, in accordance with the fair value
related requirements of the Company’s financial reporting framework.
14. 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 on page 51 of the
Directors’ Report in the Company’s Annual Report and Financial Statements
for the year ended 28 February 2025.
The investment management fee payable for the six months ended 31 August 2025
amounted to £1,993,000 (six months ended 31 August 2024: £2,460,000; year
ended 28 February 2025: £4,611,000). At the period end, £977,000 was
outstanding in respect of the management fee (31 August 2024: £3,569,000; 28
February 2025: £4,488,000).
In addition to the above services, BIM (UK) has provided the Company with
marketing services. The total fees paid or payable for these services for the
six months ended 31 August 2025 amounted to £59,000 including VAT (six months
ended 31 August 2024: £136,000; year ended 28 February 2025: £195,000). At
the period end, £195,000 was outstanding in respect of the marketing fees (31
August 2024: £273,000; 28 February 2025: £137,000).
During the period, the Manager pays the amounts due to the Directors. These
fees are then reimbursed by the Company for the amounts paid on its behalf. As
of 31 August 2025, an amount of £140,000 (31 August 2024: £232,000; 28
February 2025: £129,000) was payable to the Manager in respect of
Directors’ fees.
The Company had an investment in the BlackRock Institutional Cash Series plc
– Sterling Liquid Environmentally Aware Fund of £40,441,000 as at 31 August
2025 (31 August 2024: £nil; 28 February 2025: £nil).
The ultimate holding company of the Manager and the Investment Manager is
BlackRock, Inc., a company incorporated in Delaware, USA.
15. Related party disclosure
Directors’ emoluments
As at 31 August 2025, the Board consisted of
five 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. The Chairman receives an annual fee of £52,000, the Audit
Committee Chairman receives an annual fee of £41,000, the Senior Independent
Director receives a fee of £37,000, the Chair of the Nomination and
Remuneration Committee receives an annual fee of £36,000 and each of the
other Directors receives an annual fee of £35,000.
As at 31 August 2025, an amount of £17,000 (31 August 2024: £19,000; 28
February 2025: £19,000) was outstanding in respect of Directors’ fees.
At the period end members of the Board held ordinary shares in the Company as
set out below:
As at As at As at
31 August 31 August 28 February
2025 2024 2025
Ordinary Ordinary Ordinary
shares shares shares
Ronald Gould (Chairman) 3,544 3,544 3,544
Mark Little 542 491 531
James Barnes 2,500 2,500 2,500
Helen Sinclair 988 988 988
Dunke Afe – – –
Susan Platts-Martin(1) n/a 2,800 2,800
1 Ms Platts-Martin retired as a Director on 19 June 2025.
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 Investors
Related BlackRock Funds Significant Investors who are not who are not affiliates of BlackRock
affiliates of BlackRock Group or Group or BlackRock, Inc.
BlackRock, Inc.
As at 31 August 2025 5.9 n/a n/a
As at 31 August 2024 5.9 n/a n/a
As at 28 February 2025 6.1 n/a n/a
16. Contingent liabilities
There were no contingent liabilities at 31
August 2025, 28 February 2025 or 31 August 2024.
17. 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 31 August 2025 and 31 August 2024 has not been audited, or
reviewed, by the Company’s auditors.
The information for the year ended 28 February 2025 has been extracted from
the latest published audited financial statements, which have been filed with
the Registrar of Companies. The report of the auditor in those financial
statements contained no qualification or statement under Sections 498(2) or
(3) of the Companies Act 2006.
18. Annual results
The Board expects to announce the annual
results for the year ending 28 February 2026 in early May 2026.
Copies of the results announcement can be obtained from the Secretary on 020
7743 3000 or at
cosec@blackrock.com
.
The Annual Report should be available by the beginning of May 2026 with the
Annual General Meeting being held in June 2026.
The Annual Report and Financial Statements will also be available on the
BlackRock Investment Management website at http://www.blackrock.com/uk/brsc.
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:
Sarah Beynsberger, Director, Closed End Funds, BlackRock Investment Management
(UK) Limited
Tel: 020 7743 3000
Press Enquiries:
Ed Hooper, Lansons Communications
Tel: 020 7294 3620
E-mail:
BlackRockInvestmentTrusts@lansons.com or EdH@lansons.com
24 October 2025
Release (https://mb.cision.com/Main/22402/4255570/3743963.pdf)
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