REG-BlackRock Throgmorton Trust Plc: Half-year Report
Yesterday 13:15
BlackRock Throgmorton Trust plc
(Legal Entity Identifier: 5493003B7ETS1JEDPF59)
Information disclosed in accordance with Article 5 Transparency Directive and
DTR 4.2
Half Yearly Financial Report for the six months ended 31 May 2025
Performance Record
As at As at
31 May 30 November
2025 2024
Net assets (£’000)(1) 505,940 595,908
Net asset value per ordinary share (pence) 652.56 682.82
Ordinary share price (mid-market) (pence) 578.00 593.00
Benchmark Index(2) 17,371.34 16,794.26
Discount to cum income net asset value(3) (11.4)% (13.2)%
========= =========
For the For the
six months year
ended ended
31 May 30 November
2025 2024
Performance (with dividends reinvested)
Net asset value per share(3) (2.2)% 16.3%
Ordinary share price(3) 0.0% 5.0%
Benchmark Index(2) 3.4% 14.1%
Average discount to cum income net asset value for the period/year(3) (11.2)% (9.3)%
========= =========
Performance for Performance for
the ten years the ten years
to 31 May to 30 November
2025 2024
Performance (with dividends reinvested)
Net asset value per share(3) 104.6% 150.9%
Ordinary share price(3) 112.9% 163.7%
Benchmark Index(2) 44.9% 62.1%
========= =========
For the six For the six
months ended months ended
31 May 31 May Change
2025 2024 %
Revenue
Net revenue profit on ordinary activities after taxation (£’000) 6,889 8,885 (22.5)
Revenue earnings per ordinary share (pence)(4) 8.44 9.44 (10.6)
--------------- --------------- ---------------
Dividends per ordinary share (pence)
Interim 3.80 3.75 1.3
========= ========= =========
1 The change in net assets reflects portfolio movements, shares
repurchased into treasury and dividends paid during the period.
2 The Company’s Benchmark Index is the Deutsche Numis Smaller
Companies plus AIM (excluding Investment Companies) Index.
3 Alternative Performance Measures, see Glossary contained within the
Half Yearly Financial Report.
4 Further details are given in the Glossary contained within the Half
Yearly Financial Report.
Chairman’s Statement
Dear Shareholder
I am honoured to take over as Chairman from Chris Samuel following the
Company’s AGM in March 2025. I would like to take this opportunity, on
behalf of all shareholders, to thank Chris for his considerable efforts in
leading the development of the Company over recent years.
The six month period under review was characterised by global market
volatility, caused by the US government’s announcement of wide-ranging
tariffs – the so-called “Liberation Day” measures - and concerns over
the potential impact on global trade supply lines. In the UK, the Budget
announcement in March 2025 created further headwinds, with business concerns
over the impact of tax and minimum wage increases creating a difficult
environment for UK smaller companies. Rising bond yields are also posing
further challenges for economic growth and overall small caps underperformed,
with the Deutsche Numis Smaller Companies plus AIM (excluding Investment
Companies) Index (the “Benchmark Index”) up 3.4% over the period compared
to an increase of 7.3% in the FTSE All Share Index.
While markets have recovered from the Liberation Day lows, uncertainty remains
about the longer-term impact on established global trading relationships. The
more recent trade deals struck by the UK with the US and India may have
improved general sentiment towards UK equities in the short-term and improved
the medium-term economic outlook.
Performance
Over the six months to 31 May 2025, the Company’s Net Asset Value (NAV)
total return was -2.2% compared to a return of +3.4% from the Company's
Benchmark Index, an underperformance of 5.6 percentage points. The Company's
share price remained flat, with a share price total return of 0.0%,
underperforming the Benchmark Index by 3.4%. Since the period end and up to
the close of business on 30 July 2025, the Company’s NAV has risen by 1.6%,
and the Benchmark Index has risen by 3.2% (all figures with dividends
reinvested).
As illustrated in the table below, over the three and five year periods ended
31 May 2025, the Company's NAV returned +3.9% and +30.1% respectively, and the
share price returned -2.0% and +15.3% respectively, compared to the Benchmark
Index returns of +1.1% and +38.9%. Over the 10 year period ended 31 May 2025,
the NAV increased by 104.6% and the share price by 112.9% compared to the
benchmark return of 44.9%.
As our manager explains in his Investment Management Report, a range of
factors contributed to the underperformance over the period, notably stylistic
headwinds with 8 of the 10 top benchmark contributors representing companies
that do not fit our investment process of investing in quality growth
businesses with growing cashflows. M&A activity was also a frustrating
detractor to performance, with many of the stocks that benefitted from bid
activity not being owned in the portfolio for similar reasons.
Although the Company has had to contend with headwinds which have affected its
performance, the portfolio manager’s quality growth style has delivered
excellent long term performance.
Further information on the Company's performance is set out in the table below
and in the Investment Manager’s Report below.
Performance record to 31 May 2025 (with dividends reinvested)
1 Year change % 3 Years change % 5 Years change % 10 Years change %
NAV per share -4.63 3.87 30.05 104.65
Share price -6.72 -2.04 15.32 112.93
Benchmark Index 1.10 1.10 38.94 44.88
Revenue return and dividends
The revenue return per share for the period amounted to 8.44 pence per share,
compared to 9.44 pence per share earned during the same six-month period last
year, a decrease of 10.6%. The decrease is as a result of lower dividends
received from portfolio companies and lower net income from derivative
positions compared to the prior year. The Board recognises that, although the
Company’s objective is capital growth, shareholders value consistency of
dividends paid by the Company. An interim dividend of 3.80p per share has
therefore been declared (2024: 3.75p per share), payable on 5 September 2025
to shareholders on the register on 15 August 2025 (the ex-dividend date is 14
August 2025). The interim dividend is fully covered by revenue generated by
the portfolio during the period.
Share buyback activity
The Board believes that the best way of addressing any long-term discount to
NAV over the longer term is both to generate good performance and to drive
demand for the Company’s shares by widening the awareness of the Company’s
attractions. The Board also has a policy of buying back shares in the Company
when the discount is excessive, something we consider in relation to market
conditions, performance and the ongoing attractiveness of the investment
proposition.
During the six months to 31 May 2025, the Company’s share rating traded at
an average discount of 11.1% to NAV and ended the period at a discount of
11.4% (30 November 2024: 13.2% ). This compares with the weighted average
discount of the UK smaller companies peer group which ended the period at an
average discount to NAV of 11.2%.
The Company bought back a total of 9,740,000 ordinary shares for a total
consideration of £55,914,000 during the period (31 May 2024: 4,265,234
ordinary shares for a total consideration of £25,477,000). Since 31 May 2025
and up to the latest practicable date of 30 July 2025, a further 1,025,000
shares have been bought back for a total consideration of £6,031,000. As at
30 July 2025, the Company’s shares were trading at a discount of 10.3%
compared with an average discount for our peer group to NAV of 11.5%. All
shares were bought back at a discount to the prevailing NAV and were therefore
accretive to existing shareholders.
The Board’s objectives are to seek to minimise share price volatility and
encourage the Company’s share price to trade within as tight a range as
possible, taking into account the various factors mentioned above. Despite our
targeted action in support of the share rating, it was disappointing to see
our discount narrow only marginally during the period.
Overall, we believe the share buyback activity undertaken has been beneficial
in reducing the volatility of our share rating and delivering NAV accretion.
Your Board will continue to monitor the Company's share rating and may deploy
its powers to support it by buying back the Company’s shares where it
believes that it is in shareholders’ long-term best interests to do so.
Outlook
The first half of the financial year has been challenging, and uncertainty
remains around the outlook for growth. There are a number of trends within the
UK small and mid-cap market that may have a profound impact on market dynamics
going forward, notably the continued de-equitisation of the UK market (from
M&A and share buy backs) and the absence of IPO activity. The UK small and
mid-cap market has seen sustained and consistent outflows since 2021, driving
some investors to focus on short-term returns. It is notable that the UK
market saw just 35 IPOs in 2024, fewer even than in the depths of the Global
Financial Crisis.
Notwithstanding these challenging dynamics, the outlook for UK equities is not
wholly negative. The strong performance of the FTSE 100 Index over the period
under review has been delivered despite outflows from UK-focused open-ended
funds, implying demand from international investors and global funds. The FTSE
100 Index performance potentially bodes well for the future absolute and
relative performance of UK smaller companies, whose performance quite often
lags rallies in their larger peers.
UK small and mid-cap stock valuations are trading at historically low levels.
Our asset class (as defined by the Benchmark Index) is trading at a forward
price-to-earnings ratio of just over 10x, well below its long-term average of
12.7x and significantly lower than international peers. Our Manager views
these valuations as making the type of high-quality businesses that your
Company invests in well positioned for reappraisal by the market and a
significant rally when the economic environment stabilises.
The Emerging Companies team at BlackRock seeks out quality companies with
strong market positioning and earnings growth, and the Board remains confident
in the Manager, the portfolio manager and his investment philosophy and
process and the rest of the BlackRock Emerging Companies investment team and
their ability to navigate on your behalf what have been challenging and
complex markets. We enter the second half of the financial year with continued
confidence in the long-term compelling opportunities that UK smaller companies
can offer investors.
James Will
Chairman
1 August 2025
Investment Manager’s Report for the six months ended 31 May 2025
Market review
A famed Socialist leader once commented that “there are decades where
nothing happens, and there are weeks where decades happen”. What better way
to describe some of the last few weeks and months, from Labour’s actions to
cover a fiscal black hole only to find themselves with an ever bigger fiscal
hole a few months later, to “Liberation Day” tariffs, to oil price spikes
and falls, and of course to the geopolitical tensions and military actions in
the Middle East. The last six months are arguably some of the most tumultuous
in recent decades.
Against this challenging backdrop, the share price performance for many
companies in our investment universe has become decoupled from fundamental
economic factors, with traditional value outperforming quality growth. By way
of illustration, the ten top performing stocks in the Company’s benchmark
index over the period under review in aggregate generated substantially all of
the benchmark’s performance, but very few fit with our investment criteria
and hence we only owned two and were overweight just in one of them. Our focus
remains on identifying companies with strong management teams, leading market
positions, pricing power and strong margins. We also look for companies with
strong balance sheets, high levels of cash conversion and strong earnings
growth. The top performing companies in the benchmark were an eclectic mix of
sectors, including mining, oil & gas, Middle Eastern real estate, indebted
telecommunications companies, low margin retailers and low margin food
producers, all of them falling outside our quality growth investment
philosophy. While the underperformance we have seen against the benchmark is
frustrating, we believe it is important to remain ‘true to label’, to
stick to our investment process, and retain our growth bias. We have
confidence that the share price performance of the type of quality companies
that we invest in will see improvement over the longer term.
In our 2024 annual report I commented that the positive momentum developing in
the UK was swiftly undermined by the Budget and the drumbeat of negativity
that proceeded it, casting a long dark shadow over the UK. A depressing
statistic is that 46 of the last 48 months have seen outflows in our asset
class. Indeed, those 46 months of outflows total approximately $21.5 billion,
which in our view has acted as a significant drag on the returns of the asset
class, overpowering fundamentals. Accordingly, the value of any listed UK
small and medium sized company has increasingly been dictated by the clearing
price of an outflow, which has contributed to the market dislocation noted
above.
One of the benefits of the Company’s closed-end fund structure, especially
in chaotic market conditions, is that (unlike open ended counterparts),
closed-end funds are not obliged to sell down portfolio holdings at low
valuations to meet liquidity requirements for redemptions. However, the
outflows noted above have not been limited to open ended funds; there have
been a record volume of share buybacks over the last year throughout the
closed-end fund sector as a whole. Driven by activist activity and increased
focus on narrowing discounts, a total of £7.5 billion of shares were bought
back through the course of 2024, and £2.7 billion in the first quarter of
2025. While buybacks are an important tool in the investment company sector to
help increase demand, the increased level of buy backs has put additional
pressure on share prices throughout the investment universe (and in particular
the less liquid small cap universe). The AIC UK Small Cap sector bought back
c. £201 million in the first quarter of 2025 (c. 4.5% by market cap value of
the AIC UK Small Cap sector), all feeding in to depress smaller company prices
further.
We also have concerns over the extent to which the UK small and mid-cap market
is de-equitising. Ongoing share buybacks, record levels of M&A activity
(reflecting the appetite of those with a longer duration view on valuation),
company exits and a dearth of new IPOs have driven a sizeable contraction in
the UK small and medium sized company opportunity set.
There were glimmers of optimism at the start of the year, with some positive
UK macro data points and a swathe of domestic companies reporting improving
trading conditions. Market observers might have been forgiven for thinking
that large savings balances that had been accumulated would start to be
deployed. Liberation Day, whilst causing significant volatility to UK small
and mid-cap share prices, did little to dent UK consumer appetite and (on
average) trading remained fairly robust through April and May. Alas, in the
last few weeks there have been several negative developments, some macro
(softer retail sales, labour market weakness, downward revisions to
productivity and growth), and some political (with the Government u-turning on
some key policies), causing some stock specific issues as trading has
deteriorated as a result.
Performance review
The Company’s NAV per share returned -2.2% net of fees during the six months
to 31 May 2025, underperforming our Benchmark Index which returned 3.4%. The
Company’s share price ended the period unchanged.
It’s disappointing to report a negative return, and there is no individual
factor that can be singled out when we decompose our returns to see exactly
what has detracted from performance. In summary, our underperformance can be
disaggregated by:
* Stock specific issues, as discussed in more detail below
* Stylistic headwinds, where traditional value has outperformed quality
growth. For context, the aggregate contribution from the top 10 performing
shares of our benchmark accounts for almost the entire return of the
benchmark, of which we only owned two, and were overweight in only one. The
rest of these top 10 benchmark performers were an eclectic mix of mining, Oil
& Gas, Middle Eastern real estate, indebted telecommunications companies, low
margin retailers and low margin food producers, and none of them fit our
quality growth investment thesis
* Persistent selling pressure on the investment universe meaning many of our
investments that continue to trade and execute well are not being rewarded in
share price terms
* M&A activity in shares we did not own, or indeed in several cases were short
From a stock specific perspective, the largest detractor was the owner of the
Transact Investment Platform, IntegraFin. Despite the business continuing to
take share and driving positive net inflows, a remarkable feat when one
considers the wider industry trends and results of peers, the shares fell in
the period. A question that has circled this company for some time now is
whether their impressive AUM growth and market share gains will translate into
strong profit growth, which has been held back in recent years by fee cuts and
higher service costs. Thankfully at the time of writing, shares in IntegraFin
have bounced strongly since period end on a very positive statement from the
company talking up future revenue growth, and importantly providing clearer
guidance on costs (which will be lower than envisaged) and on lower revenue
margin. This is a welcome step forward and hopefully will sharpen investor
minds to IntegraFin’s differentiated business model and long runway for
growth.
Shares in Workspace Group, the provider of flexible office space across London
and the Sout East, fell in response to reporting a fall in occupancy to around
85% during the period, driven by vacancies in some of their larger office
spaces. The company is adapting its strategy under new leadership to focus on
converting larger offices into compact units. We have sold all our Workspace
and regret not selling sooner as we should have been more ruthless on selling
after the first downgrade.
Shares in Trainline fell on the news that Department for Transport will begin
a consultation process on the Rail Reform Bill, designed to establish Great
British Railways (GBR) as the governing body for passenger rail. While
Trainline has a strong market position, built on its strong technology
platform, the shares are no longer in the benchmark and therefore we exited
the holding because of the increased uncertainty. Other detractors included
large benchmark performers we do not own, including Greatland Gold, an
unprofitable gold exploration miner, and DAR Global, a Middle Eastern property
company with only a circa 10% freefloat!
Turning to positive contributors, there was a strong contribution of stock
specifics across a range of industries and themes. The largest positive
contributor was Alpha Group, which delivered strong results in the period and
has seen its shares soar on the news that they are in active talks with U.S.
listed Corpay over a potential acquisition. Shares in Chemring continued to
deliver solid results (beating forecasts, record results, order book etc) also
benefitting from the continued outperformance of the Aerospace & Defence
sector. Great Portland delivered better than expected 2025 financial year
results with management upgrading their guidance on accelerating rental
growth. Indeed, the outlook is perhaps as bullish a message as I can recall
from this management team, who we hold in exceptionally high regard due to
their tenure and track record of development upside through several cycles.
Guidance for 2026 financial year rent growth has been upgraded to 4-7%,
“with the best spaces even higher at 6-10%”. Management is ahead of target
having deployed the capital they raised last year from the rights issue into
high quality developments as they take advantage of a supply constrained
market at a cyclical trough and committing at a 53% discount to replacement
cost. With 40% of the book under development, the company is on track to
deliver significant value in our opinion. The shares have recovered from the
incredible 50% discount to NAV they hit a few months back but at 35% discount
they remain significantly undervalued if you believe, like we do, that
earnings per share (EPS) is about to inflect and NAV can grow meaningfully.
Portfolio positioning and outlook
The UK small and mid-cap sector is undoubtedly cheap, with myriad undervalued
opportunities where we think the upside is significant on any medium-term view
(be it “recovered profits” or just higher earnings base). However, we are
concerned over the UK macroeconomic backdrop and in the near term the risk of
earnings downgrades have increased as recovery is delayed. Lower growth and
weak productivity leaves the UK with a fiscal Gordian knot that tightens by
the day.
While many commentators are saying that taxes will inevitably rise to meet
growing deficit, it is hard to see where the UK Government can raise another
+£20bn whilst committing to their three main electoral promises. The stealth
tax of freezing income seems almost unavoidable and may plug half the fiscal
shortfall but would still leave them roughly +£11bn short. We must brace
ourselves therefore for daily speculation about what else will be taxed, an
environment we think will only create further dents to sentiment already
reeling from last years ‘fiscal event’.
The prospect of rate cuts by the Bank of England is promising, yet recent
inflation data may give them more pause for thought. They will feel torn
between inflation and a weakening jobs market, though clearly some members of
the Monetary Policy Committee (MPC) seem more sensitive to growth and labour
market weakness. A recession in the UK can be avoided, but we may be faced
with a prolonged period of anaemic growth. The U-shaped recovery continues to
elongate and demand growth continues to be pushed out.
We’ve long argued that we think the UK is cheap with myriad mid-cap
opportunities (housebuilders, building materials, RMI, brick manufacturers,
selective real estate) where we think the upside on any medium-term earnings
recovery leads to at least a doubling if not tripling in equity values for so
many companies trading on depressed multiples on depressed earnings. However,
given the macro issues outlined above, there is more risk to both EPS and
multiples across the mid-cap sector. In a world increasingly dominated by
algos, quant funds and hedge fund platforms, these mechanical EPS downgrades
are highly likely to lead to further share price weakness, particularly in a
backdrop of persistent institutional and retail outflows. Fortunately, our
ability to short companies also allows us to benefit from this share price
weakness.
As a result of all this, we fear the current backdrop is not conducive to
encouraging consumers to spend, and we have reduced our UK mid cap domestic
exposure. We have exited or reduced several positions across travel & leisure,
retail, as well as other consumption related exposures (like housebuilders,
RMI and related supply chains). Contemporaneously, we have increased our
shorts in this area too. We have entered sectors and shares hitherto we have
avoided, where earnings momentum is positive and market structures have
evolved so historical competitive issues are perhaps far less prevalent today.
Examples of this are Georgian Banks (TDC Bank), food producers (Hilton Food
Group), and outsourcing partners (Mitie, Serco).
We have also reduced our UK mid cap Industrials, part reflecting FX headwinds,
but also because many are Industrials where channel checks and peer read
across would suggest some risk to H2 weighted outcomes, and because mid-caps
continues to exhibit more volatility than we’d like at times of global
stress.
We are fortunate to have the capacity to allocate up to 15% in non-UK listed
shares, and we have been adding several names in recent weeks and months
across European Defence (Renk, Hensoldt), Aerospace & Defence (VSE Group,
Crane), differentiated US consumer companies (Boot Barn), as well as software
companies we think will benefit from the increased adoption of AI we are
witnessing across a broader suite of tools (Gitlab). Shorting remains
challenging with 4 of our shorts being bid for this year amidst a buoyant M&A
market reflecting the low valuations.
We entered 2025 with caution and that is reflected in a gross exposure that is
now down to around 110%, and a net exposure that is around 105%. The net
exposure of over 100% reflects the increased allocation to international
names, so the net exposure to the UK (including the short book) is in the low
90s. On a more positive note, UK small and mid-cap stock valuations are
trading at historically low levels and are well positioned for reappraisal by
the market and a significant rally when the economic environment stabilizes.
It is said that it is darkest just before the dawn, and it is often the case
that challenging periods such as these present the best opportunities for
management teams to distinguish themselves and for fundamental analysis to add
value. We retain confidence in the quality, market positioning and earnings
growth of the companies in the portfolio and remain disciplined in our
investment philosophy and process that has proven successful over the long
term. We believe that in time investors’ patience will be rewarded, and in
the meantime, we thank shareholders for your patience and your continuing
support.
Dan Whitestone
BlackRock Investment Management (UK) Limited
1 August 2025
Portfolio of investments
1. ▲ Great Portland Estates (2024: 8th)
Real Estate Investment Trusts
Market value: £16,167,000(1)
Share of net assets: 3.2% (2024: 2.6%)
Owner of commercial real estate in central London
2. ▲ Grafton Group (2024: 5th)
Support Services
Market value: £14,983,000
Share of net assets: 3.0% (2024: 2.7%)
Builders merchants in the UK, Ireland and Netherlands
3. ▲ Rotork (2024: 4th)
Electronic & Electrical Equipment
Market value: £14,773,000
Share of net assets: 2.9% (2024: 2.8%)
Manufacturer of industrial flow equipment
4. ▼ Tatton Asset Management* (2024: 3rd)
Financial Services
Market value: £14,701,000
Share of net assets: 2.9% (2024: 2.8%)
Provision of discretionary fund management services to the IFA market
5. ▲ Bellway (2024: 19th)
Household Goods & Home Construction
Market value: £14,415,000
Share of net assets: 2.8% (2024: 1.8%)
UK housebuilder
6. ▼ Breedon (2024: 1st)
Construction & Materials
Market value: £14,336,000
Share of net assets: 2.8% (2024: 3.3%)
Supplier of construction materials
7. ▲ XPS Pensions Group (2024: n/a)
Financial Services
Market value: £14,330,000
Share of net assets: 2.8% (2024: n/a)
Pension consulting and administration business
8. ▼ IntegraFin (2024: 2nd)
Financial Services
Market value: £13,845,000(1)
Share of net assets: 2.7% (2024: 3.1%)
UK savings platform for financial advisors
9. ▲ Ibstock (2024: 11th)
Construction & Materials
Market value: £13,419,000
Share of net assets: 2.7% (2024: 2.4%)
Manufacturer of clay bricks and concrete products
10. ▲ Morgan Sindall (2024: 15th)
Construction & Materials
Market value: £13,017,000
Share of net assets: 2.6% (2024: 2.1%)
Supplier of office fit out, construction and urban regeneration services
1 Includes long derivative positions.
* Traded on the Alternative Investment Market (AIM) of the London Stock
Exchange.
Percentages shown are the share of net assets.
The market value shown is the gross exposure to the shares through equity
investments and long derivative positions. For equity investments, the market
value is the fair value of the shares. For long derivative positions, it is
the market value of the underlying shares to which the portfolio is exposed
via the contract.
Percentages in brackets represent the portfolio holding as at 30 November
2024. Arrows indicate the change in relative ranking of the position in the
portfolio compared to its ranking as at 30 November 2024.
# Company £’000^ % Description
11 Boku* 12,605 2.5 Digital payments platform
Support Services
12 Oxford Instruments 11,633 2.3 Designer and manufacturer of tools and systems for industry and research
Electronic & Electrical Equipment
13 Alpha Group International 11,537¹ 2.3 Foreign exchange risk management and banking solutions provider
Financial Services
14 Chemring Group 11,027 2.2 Provider of technology products and services to aerospace, defence and security markets
Aerospace & Defence
15 IG Group Holdings 9,864 1.9 Online provider of spread betting and CFD trading services
Financial Services
16 Hill & Smith Holdings 9,794 1.9 Supplier of infrastructure products and galvanizing services
Industrial Metals & Mining
17 Baltic Classifieds Group 9,540 1.9 Operator of online classified businesses in the Baltics
Software & Computer Services
18 Alfa Financial Software 9,126 1.8 Provider of software to the finance industry
Software & Computer Services
19 Jet2* 8,926 1.8 Low cost tour operator and airline
Travel & Leisure
20 Luceco 8,222 1.6 Supplier & manufacturer of high quality LED lighting products
Electronic & Electrical Equipment
21 SigmaRoc* 7,879 1.6 Buy-and-build group targeting construction materials assets in the UK and Northern Europe
Construction & Materials
22 FRP Advisory Group PLC* 7,631 1.5 Provider of forensics, corporate finance, debt and financial advisory services
Support Services
23 Porvair 7,346 1.5 Specialist filtration and environmental technology
Electronic & Electrical Equipment
24 Genuit 7,136 1.4 Manufacturer of plastic piping systems
Construction & Materials
25 Cranswick 6,755 1.3 Producer of premium, fresh and added-value food products
Food Producers
26 Serco Group 6,518 1.3 Provider of public services across health, transport, immigration, defence, justice and citizen services
Support Services
27 Elementis 6,128 1.2 Speciality chemicals company
Chemicals
28 Sirius Real Estate 5,963 1.2 Owner and operator of business parks, offices and industrial complexes in Germany
Real Estate Investment & Services
29 DiscoverIE 5,795 1.1 International designer, manufacturer and supplier of customised electronics
Electronic & Electrical Equipment
30 MJ Gleeson 5,658 1.1 UK housebuilder
Household Goods & Home Construction
31 Hilton Food Group 5,652¹ 1.1 Provider of specialist food packaging services
Food Producers
32 Plus500 Ltd 5,647 1.1 Online trading platform provider
Financial Services
33 GB Group* 5,467¹ 1.1 Developer and supplier of identity verification solutions
Software & Computer Services
34 GlobalData* 5,464¹ 1.1 Data analytics and consulting
Industrial Support Services
35 AJ Bell 5,422 1.1 UK savings platform for financial advisors & individual investors
Financial Services
36 TBC Bank Group 5,377 1.1 A bank and financial services provider in Georgia
Banks
37 Premier Foods 5,247 1.0 A British food manufacturer
Food Producers
38 Watches of Switzerland 4,944 1.0 Retailer of luxury watches
Personal Goods
39 Hochschild Mining 4,943 1.0 A precious metals mining company
Precious Metals & Mining
40 Crest Nicholson 4,920¹ 1.0 UK housebuilder
Household Goods & Home Construction
41 Just Group 4,878 1.0 A specialist financial services provider in the retirement benefit market
Life Insurance
42 Genus 4,833¹ 1.0 Animal genetics company
Pharmaceuticals & Biotechnology
43 Derwent London 4,814 1.0 British property investment company
Real Estate Investment Trusts
44 Kier Group 4,731 0.9 UK construction, services and property group
Construction & Materials
45 CVS Group* 4,720 0.9 Operator of veterinary surgeries
General Retailers
46 AB Dynamics* 4,597 0.9 Developer and supplier of specialist automotive testing systems
Industrial Engineering
47 Computacenter 4,561¹ 0.9 Computer services
Software & Computer Services
48 Craneware* 4,554 0.9 Provider of financial business software for US hospitals
Healthcare Equipment & Services
49 Forterra 4,524 0.9 Manufacturer of building products
Construction & Materials
50 Savills 4,360 0.9 Provision of specialist real estate services
Real Estate Investment & Services
51 Xero(&) 4,359¹ 0.9 Software company specialising in accounting for small businesses
Software & Computer Services
52 Greencore Group 4,356 0.9 An international convenience food manufacturer
Food Producers
53 Animalcare Group* 4,164 0.8 Veterinary pharmaceuticals business
Pharmaceuticals & Biotechnology
54 TP ICAP 4,057 0.8 Inter-dealer broker
Financial Services
55 WH Smith 3,959 0.8 Retailer of books, stationery, magazines, newspapers and confectionary
General Retailers
56 PayPoint 3,958¹ 0.8 Digital payments business
Industrial Support Services
57 Dunelm Group 3,939 0.8 Retailer of homeware products
General Retailers
58 Restore* 3,927 0.8 Records management business
Support Services
59 VSE Corporation(&) 3,740¹ 0.7 Provider of aftermarket distribution, and maintenance, repair and overhaul services to the aviation sector
Aerospace & Defence
60 Lancashire Holdings 3,719 0.7 Provider of global specialty insurance and reinsurance products
Non-life Insurance
61 Bloomsbury Publishing 3,654 0.7 Independent publishing house
Media
62 JTC plc 3,544¹ 0.7 Provider of fund administration, company secretarial and administration, and private wealth services
Support Services
63 Polar Capital Holdings* 3,509 0.7 Provider of investment management services
Financial Services
64 Wizz Air Holdings 3,483¹ 0.7 An airline operator
Travel & Leisure
65 Ithaca Energy 3,222 0.6 An independent oil and gas company focused on the UK North Sea
Oil Equipment and Services
66 Zotefoams 3,208¹ 0.6 Manufacturer of polyolefin foams used in sport, construction, marine, automation, medical equipment and aerospace
Chemicals
67 Oxford Biomedica 3,124¹ 0.6 Gene cell therapy
Pharmaceuticals & Biotechnology
68 Costain Group 2,967 0.6 Construction and engineering company
Industrial Support Services
69 Young & Co’s Brewery* 2,932 0.6 Owner and operator of pubs mainly in the London area
Travel & Leisure
70 Ashmore Group 2,834¹ 0.6 Emerging market focused investment manager
Financial Services
71 Moneysupermarket.com 2,796 0.6 Provider of price comparison website specialising in financial services
Software & Computer Services
72 Central Asia Metals* 2,776¹ 0.5 Production of base metals with operations in Kazakhstan and North Macedonia
Industrial Metals & Mining
73 Cerillion* 2,737 0.5 Provider of billing, charging and customer management systems
Software & Computer Services
74 Trustpilot 2,716¹ 0.5 An online review platform for consumers to post reviews about businesses and products/services
Software & Computer Services
75 Robert Walters 2,678 0.5 Provider of specialist recruitment services
Support Services
76 Workspace Group 2,671 0.5 Supply of flexible workspace to businesses in London
Real Estate Investment Trusts
77 Paragon Banking Group 2,658¹ 0.5 A specialist banking group
Financial Services
78 Quilter Plc 2,557¹ 0.5 A wealth management company
Financial Services
79 Cohort Plc* 2,540¹ 0.5 Defence and security technology company
Aerospace & Defence
80 Safestore 2,538 0.5 Provider of self-storage units
Real Estate Investment Trusts
81 Judges Scientific* 2,452 0.5 Designer and producer of scientific instruments
Electronic & Electrical Equipment
82 SThree 2,406 0.5 Provider of specialist professional recruitment services
Support Services
83 4imprint Group 2,400 0.5 Supplier of promotional merchandise in the US
Media
84 Funding Circle Holdings 2,358¹ 0.5 Provider of funding services to small businesses
Financial Services
85 Advanced Medical Solutions* 2,316¹ 0.5 Developer and manufacturer of advanced wound care solutions
Healthcare Equipment & Services
86 Bruker Corporation(&) 2,269¹ 0.4 Manufacturer of scientific instruments and analytical and diagnostic solutions
Medical Equipment & Services
87 Team 17* 2,176 0.4 Video game developer and publisher
Leisure Goods
88 Gooch & Housego* 2,121 0.4 Designer and manufacturer of advanced photonic systems
Electronic & Electrical Equipment
89 MAG Silver Corp(&) 2,079¹ 0.4 A Canadian precious metals mining and exploration company
Precious Metals & Mining
90 Yellow Cake PLC* 1,973¹ 0.4 Uranium investment company
Industrial Metals & Mining
91 SIG 1,871 0.4 Supplier of building, roofing and insulation products
Industrial Support Services
92 Morgan Advanced Materials 1,841 0.4 Advanced materials manufacturer
Electronic & Electrical Equipment
93 Future 1,839 0.4 Multi-platform media business covering technology, entertainment, creative arts, home interest and education
Media
94 Medpace Holdings(&) 1,748¹ 0.3 Clinical research organization (CRO) conducting global clinical research for the development of drugs and medical devices
Pharmaceuticals & Biotechnology
95 OSB Group 1,747 0.3 Specialist lending business
Financial Services
96 Rosebank* 1,733¹ 0.3 Industrial company with a “Buy, improve, sell” strategy
Financial Services
97 Gamma Communications* 1,591 0.3 Provider of communication services to UK businesses
Mobile Telecommunications
98 Auction Technology Group 1,246 0.2 Operator of marketplaces for curated online auctions
Software & Computer Services
--------------- ---------------
Long investment positions (excluding BlackRock’s Institutional Cash Series plc – Sterling Liquid Environmentally Aware Fund) 548,212 108.3
========= =========
Short investment positions (14,135) (2.8)
========= =========
* Traded on the Alternative Investment Market (AIM) of the London
Stock Exchange.
1 Includes long derivative positions.
& Holdings listed on exchanges outside of the UK.
^ The market value shown is the gross exposure to the shares through
equity investments and long derivative positions. For equity investments, the
market value is the fair value of the shares. For long derivative positions,
it is the market value of the underlying shares to which the portfolio is
exposed via the contract.
Percentages shown are the share of net assets.
At 31 May 2025, the Company held equity interests in two companies comprising
more than 3% of a company’s share capital as follows: Tatton Asset
Management (4.0%) and Luceco (3.5%).
Fair value and gross market exposure of investments as at 31 May 2025
Gross market Gross market exposure as a %
Fair value(1) exposure(2,3) of net assets(2)
31 May 31 May 30 November
£’000 £’000 2025 2024 2024
Long equity investment positions (excluding BlackRock’s Institutional Cash Series plc - Sterling Liquid Environmentally Aware Fund) 475,909 475,909 94.0 95.0 93.6
Long derivative positions 375 72,303 14.3 20.2 18.4
--------------- --------------- --------------- --------------- ---------------
Subtotal of long investment positions 476,284 548,212 108.3 115.2 112.0
========= ========= ========= ========= =========
Short investment positions (435) (14,135) (2.8) (2.3) (3.4)
--------------- --------------- --------------- --------------- ---------------
Subtotal of long and short investment positions 475,849 534,077 105.5 112.9 108.6
========= ========= ========= ========= =========
Cash and cash equivalents 31,371 (26,857) (5.3) (10.9) (7.3)
Other net current liabilities (1,280) (1,280) (0.2) (2.0) (1.3)
--------------- --------------- --------------- --------------- ---------------
Net assets 505,940 505,940 100.0 100.0 100.0
========= ========= ========= ========= =========
The Company was geared through the use of long and short derivative positions.
Gross and net gearing as at 31 May 2025 was 111.1% and 105.5% respectively (31
May 2024: 117.4% and 112.9%; 30 November 2024: 115.3% and 108.6%
respectively). Gross and net gearing are Alternative Performance Measures, see
Glossary contained within the Half Yearly Financial Report.
1 Fair value is determined as follows:
– Long equity investment positions are valued at bid prices where
available, otherwise at latest market traded quoted prices.
– The exposure to securities held through long derivative positions
directly in the market would have amounted to £71,928,000 at the time of
purchase, and subsequent movement in market prices have resulted in unrealised
gains on the long derivative positions of £375,000 resulting in the value of
the total long derivative market exposure to the underlying securities
increasing to £72,303,000 as at 31 May 2025. If the long positions had been
closed on 31 May 2025, this would have resulted in a gain of £375,000 for the
Company.
– The notional exposure of selling the securities via the short
derivative positions would have been £(13,700,000) at the time of entering
into the contract, and subsequent movement in market prices have resulted in
unrealised losses on the short derivative positions of £(435,000) resulting
in the value of the total short derivative market exposure of these
investments decreasing to £(14,135,000) as at 31 May 2025. If the short
positions had been closed on 31 May 2025, this would have resulted in a loss
of £(435,000) for the Company.
2 Gross market exposure for equity investments is the same as fair
value; bid prices are used where available and, if unavailable, latest market
traded quoted prices are used. For both long and short derivative positions,
the gross market exposure is the market value of the underlying shares to
which the portfolio is exposed via the contract.
3 The gross market exposure column for cash and cash equivalents has
been adjusted to assume the Company traded direct holdings, rather than
exposure being gained through long and short derivative positions.
Distribution of investments as at 31 May 2025
Sector % of % of % of net
long portfolio short portfolio portfolio
Oil Equipment & Services 0.6 0.0 0.6
--------------- --------------- ---------------
Oil & Gas 0.6 0.0 0.6
========= ========= =========
Chemicals 1.7 0.0 1.7
Construction & Materials 12.2 0.0 12.2
Industrial Metals & Mining 2.7 0.0 2.7
Precious Metals & Mining 1.3 0.0 1.3
--------------- --------------- ---------------
Basic Materials 17.9 0.0 17.9
========= ========= =========
Aerospace & Defence 3.2 0.0 3.2
Electronic & Electrical Equipment 10.1 0.0 10.1
Industrial Engineering 0.9 0.0 0.9
Industrial Support Services 2.7 (0.3) 2.4
Support Services 10.2 0.0 10.2
--------------- --------------- ---------------
Industrials 27.1 (0.3) 26.8
========= ========= =========
Beverages 0.0 0.0 0.0
Food Producers 4.1 (0.3) 3.8
Leisure Goods 0.4 0.0 0.4
Personal Goods 0.9 0.0 0.9
--------------- --------------- ---------------
Consumer Staples 5.4 (0.3) 5.1
========= ========= =========
Healthcare Equipment & Services 1.3 0.0 1.3
Medical Equipment & Services 0.4 0.0 0.4
Pharmaceuticals & Biotechnology 2.6 0.0 2.6
--------------- --------------- ---------------
Health Care 4.3 0.0 4.3
========= ========= =========
Food & Drug Retailers 0.0 (0.4) (0.4)
General Retailers 2.4 (0.2) 2.2
Household Goods & Home Construction 4.7 0.0 4.7
Media 1.5 0.0 1.5
Specialty Retailers 0.0 (0.7) (0.7)
Travel & Leisure 2.9 0.0 2.9
--------------- --------------- ---------------
Consumer Discretionary 11.5 (1.3) 10.2
========= ========= =========
Banks 1.0 0.0 1.0
Financial Services 18.1 0.0 18.1
Life Insurance 0.9 0.0 0.9
Non-life Insurance 0.7 0.0 0.7
--------------- --------------- ---------------
Financials 20.7 0.0 20.7
========= ========= =========
Real Estate Investment & Services 1.9 0.0 1.9
Real Estate Investment Trusts 4.9 0.0 4.9
--------------- --------------- ---------------
Real Estate 6.8 0.0 6.8
========= ========= =========
Software & Computer Services 8.0 (0.6) 7.4
Technology Hardware & Equipment 0.0 (0.1) (0.1)
--------------- --------------- ---------------
Technology 8.0 (0.7) 7.3
========= ========= =========
Mobile Telecommunications 0.3 0.0 0.3
--------------- --------------- ---------------
Telecommunications 0.3 0.0 0.3
========= ========= =========
Total Investments 102.6 (2.6) 100.0
========= ========= =========
The above percentages are calculated on the net portfolio as at 31 May 2025.
The net portfolio is calculated as long equity and derivative positions, less
short derivative positions as at 31 May 2025.
Analysis of the portfolio
Market capitalisation as at 31 May 2025
Long positions(1)% of net portfolio Short positions% of net portfolio
£10bn – £20bn 0.8% 0.0%
£5bn – £10bn 0.3% 0.0%
£2.5bn – £5bn 12.5% -1.0%
£2bn – £2.5bn 4.8% -0.4%
£1.5bn – £2bn 15.8% -0.3%
£1bn – £1.5bn 27.1% -0.6%
£500m – £1bn 21.4% -0.3%
£0m – £500m 19.9% 0.0%
1 The above investments may comprise exposures to long equity and long
derivative positions.
Source: BlackRock
Position size as at 31 May 2025
Market value Long positions(1) Short positions
£15m – £20m 1 0
£10m – £15m 13 0
£5m – £10m 23 0
£2.5m – £5m 43 0
£0m – £2.5m 18 -9
1 The above investments may comprise exposures to long equity and long
derivative positions.
Source: BlackRock.
Portfolio holdings within Key Indices as at 31 May 2025
Gross Basis(1) Net Basis(2)
FTSE 250 61.6% 61.0%
FTSE AIM 20.6% 20.9%
FTSE Small Cap 13.0% 13.6%
Other 4.8% 4.5%
Portfolio holdings within Benchmark Index (the Deutsche Numis Smaller
Companies plus AIM (excluding Investment companies) Index) as at 31 May 2025
2024Gross Basis(1) 2025Gross Basis(1) 2024Net Basis(2) 2025Net Basis(2)
Within Benchmark 82.5% 86.9% 78.3% 84.3%
Off-Benchmark 17.5% 13.1% 21.7% 15.7%
1 Long exposure plus short exposure as a percentage of the portfolio in
aggregate excluding investment in BlackRock’s Institutional Cash Series plc
– Sterling Liquid Environmentally Aware Fund.
2 Long exposure less short exposure as a percentage of the portfolio excluding
investment in BlackRock’s Institutional Cash Series plc – Sterling Liquid
Environmentally Aware Fund.
Source: BlackRock.
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:
* Performance
* Market
* Income/dividend
* Financial
* Operational
* Regulatory
The Board reported on the principal risks and uncertainties faced by the
Company in the Annual Report and Financial Statements for the year ended 30
November 2024. A detailed explanation can be found in the Strategic Report on
pages 35 to 39 and in note 16 on pages 111 to 122 of the Annual Report and
Financial Statements which are available on the website maintained by
BlackRock at www.blackrock.com/uk/thrg.
The Directors have also assessed the impact of global events such as trade
tariffs and the ongoing conflicts in Russia/Ukraine and the Middle East on the
Company’s ability to meet its investment objective. Based on the latest
available information, the Company continues to be managed in line with its
investment objective, with no disruption to its operations.
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.
Related party disclosure and transactions with the 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 fees payable are set
out in note 4 and note 11 of the financial statements.
The related party transactions with the Directors are set out in note 12 of
the financial statements.
Going concern
The Board remains mindful of current heightened geopolitical risk and the
potential duration of the conflicts in Russia/Ukraine and the Middle East. It
is also cognisant of the longer-term impact of the recent global trade
negotiations on the markets in which we invest. 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.
The Company has a portfolio of investments which are predominantly readily
realisable and is able to meet all its liabilities from these assets.
Accounting revenue and expense forecasts are maintained and reported to the
Board regularly and it is expected that the Company will be able to meet all
its obligations. Ongoing charges for the year ended 30 November 2024 were
0.56% of average daily net assets and it is expected that this is unlikely to
change significantly going forward.
Based on the above, the Board is satisfied that it is appropriate to continue
to adopt the going concern basis in preparing the financial statements.
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 that:
* the condensed set of financial statements contained within the Half Yearly
Financial Report has been prepared in accordance with International Accounting
Standard 34, 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 Auditor.
The Half Yearly Financial Report was approved by the Board on 1 August 2025
and the above responsibility statement was signed on its behalf by the
Chairman.
James Will
For and on behalf of the Board
1 August 2025
Statement of Comprehensive Income for the six months ended 31 May 2025
Six months ended Six months ended Year ended
31 May 2025 31 May 2024 30 November 2024
(unaudited) (unaudited) (audited)
Notes Revenue Capital Total Revenue Capital Total Revenue Capital Total
£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
Income from investments held at fair value through profit or loss 3 6,508 – 6,508 8,240 518 8,758 16,070 518 16,588
Net income from derivatives 3 341 – 341 768 – 768 1,024 – 1,024
Other income 3 789 – 789 625 – 625 1,569 – 1,569
--------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- ---------------
Total income 7,638 – 7,638 9,633 518 10,151 18,663 518 19,181
========= ========= ========= ========= ========= ========= ========= ========= =========
Net (loss)/profit on investments held at fair value through profit or loss – (15,911) (15,911) – 83,772 83,772 – 59,598 59,598
Net loss on foreign exchange – (38) (38) – (43) (43) – (61) (61)
Net (loss)/profit from derivatives – (13,275) (13,275) – 15,517 15,517 – 12,839 12,839
--------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- ---------------
Total 7,638 (29,224) (21,586) 9,633 99,764 109,397 18,663 72,894 91,557
========= ========= ========= ========= ========= ========= ========= ========= =========
Expenses
Investment management and performance fees 4 (270) (185) (455) (321) (3,713) (4,034) (644) (3,524) (4,168)
Other operating expenses 5 (453) (11) (464) (406) (11) (417) (922) (21) (943)
--------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- ---------------
Total operating expenses (723) (196) (919) (727) (3,724) (4,451) (1,566) (3,545) (5,111)
========= ========= ========= ========= ========= ========= ========= ========= =========
Net profit/(loss) on ordinary activities before finance costs and taxation 6,915 (29,420) (22,505) 8,906 96,040 104,946 17,097 69,349 86,446
Finance costs (3) (9) (12) (11) (34) (45) (24) (73) (97)
--------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- ---------------
Net profit/(loss) on ordinary activities before taxation 6,912 (29,429) (22,517) 8,895 96,006 104,901 17,073 69,276 86,349
Taxation charge (23) – (23) (10) – (10) (27) – (27)
--------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- ---------------
Profit/(loss) for the period/year 6,889 (29,429) (22,540) 8,885 96,006 104,891 17,046 69,276 86,322
========= ========= ========= ========= ========= ========= ========= ========= =========
Earnings/(loss) per ordinary share (pence) 7 8.44 (36.06) (27.62) 9.44 101.97 111.41 18.54 75.37 93.91
========= ========= ========= ========= ========= ========= ========= ========= =========
The total columns of this statement represent the Company’s Statement of
Comprehensive Income, prepared in accordance with UK-adopted International
Accounting Standards (IAS). 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 Company does not have any other comprehensive income/(loss). 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 May 2025
Called Share Capital
up share Premium Redemption Special Capital Revenue
capital account reserve reserve reserves reserve Total
Note £’000 £’000 £’000 £’000 £’000 £’000 £’000
For the six months ended 31 May 2025 (unaudited)
At 30 November 2024 5,160 242,122 11,905 – 316,033 20,688 595,908
Total comprehensive (loss)/income:
Net (loss)/profit for the period – – – – (29,429) 6,889 (22,540)
Transactions with owners, recorded directly to equity:
Ordinary shares repurchased into treasury – – – – (55,596) – (55,596)
Share repurchase costs – – – – (318) – (318)
Cancellation of share premium(1) – (242,122) – 242,122 – – –
Dividends paid(2) 6 – – – – – (11,514) (11,514)
--------------- --------------- --------------- --------------- --------------- --------------- ---------------
At 31 May 2025 5,160 – 11,905 242,122 230,690 16,063 505,940
========= ========= ========= ========= ========= ========= =========
For the six months ended 31 May 2024 (unaudited)
At 30 November 2023 5,160 242,122 11,905 3,231 295,624 17,883 575,925
Total comprehensive income:
Net profit for the period – – – – 96,006 8,885 104,891
Transactions with owners, recorded directly to equity:
Ordinary shares repurchased into treasury – – – (7,821) (17,529) – (25,350)
Share repurchase costs – – – (47) (80) – (127)
Transfer of special reserve – – – 4,637 (4,637) – –
Dividends paid(3) – – – – – (10,841) (10,841)
--------------- --------------- --------------- --------------- --------------- --------------- ---------------
At 31 May 2024 5,160 242,122 11,905 – 369,384 15,927 644,498
========= ========= ========= ========= ========= ========= =========
For the year ended 30 November 2024 (audited)
At 30 November 2023 5,160 242,122 11,905 3,231 295,624 17,883 575,925
Total comprehensive income:
Net profit for the year – – – – 69,276 17,046 86,322
Transactions with owners, recorded directly to equity:
Ordinary shares repurchased into treasury – – – (3,213) (48,620) – (51,833)
Share repurchase costs – – – (18) (247) – (265)
Dividends paid(4) – – – – – (14,241) (14,241)
--------------- --------------- --------------- --------------- --------------- --------------- ---------------
At 30 November 2024 5,160 242,122 11,905 – 316,033 20,688 595,908
========= ========= ========= ========= ========= ========= =========
1 The Company’s share premium account was cancelled pursuant to
shareholders’ approval of a special resolution at the Company’s Annual
General Meeting on 25 March 2025 and Court approval on 29 April 2025. The
share premium account which totalled £242,122,000 at the time of cancellation
was transferred to a special reserve. This action was taken, in part, to
increase the Company’s distributable reserves, thereby providing a greater
ability to pay dividends and buy back shares.
2 Final dividend of 14.25p per share for the year ended 30 November
2024, declared on 20 February 2025 and paid on 11 April 2025.
3 Final dividend of 11.45p per share for the year ended 30 November
2023, declared on 2 February 2024 and paid on 28 March 2024.
4 Final dividend of 11.45p per share for the year ended 30 November
2023, declared on 2 February 2024 and paid on 28 March 2024 and interim
dividend of 3.75p per share for the year ended 30 November 2024, declared on
24 July 2024 and paid on 27 August 2024.
For information on the Company’s distributable reserves, please refer to
note 9 below.
Statement of Financial Position as at 31 May 2025
31 May 31 May 30 November
2025 2024 2024
(unaudited) (unaudited) (audited)
Notes £’000 £’000 £’000
Non current assets
Investments held at fair value through profit or loss 10 475,909 612,126 557,602
Current assets --------------- --------------- ---------------
Other receivables 3,855 3,503 1,536
Derivative financial assets held at fair value through profit or loss 10 855 3,022 2,173
Current tax asset 269 451 400
Cash collateral pledged with brokers 1,480 380 700
Cash and cash equivalents – cash at bank 31,371 43,520 43,889
--------------- --------------- ---------------
Total current assets 37,830 50,876 48,698
========= ========= =========
Total assets 513,739 663,002 606,300
Current liabilities
Other payables (6,194) (14,677) (8,262)
Derivative financial liabilities held at fair value through profit or loss 10 (915) (1,146) (360)
Cash and cash equivalents – bank overdraft – (3) –
Liability for cash collateral received (690) (2,678) (1,770)
--------------- --------------- ---------------
Total current liabilities (7,799) (18,504) (10,392)
========= ========= =========
Net assets 505,940 644,498 595,908
========= ========= =========
Equity
Called up share capital 8 5,160 5,160 5,160
Share premium account – 242,122 242,122
Capital redemption reserve 11,905 11,905 11,905
Special reserve 242,122 – –
Capital reserves 230,690 369,384 316,033
Revenue reserve 16,063 15,927 20,688
--------------- --------------- ---------------
Total shareholders’ funds 505,940 644,498 595,908
========= ========= =========
Net asset value per ordinary share (pence) 7 652.56 703.55 682.82
========= ========= =========
Cash Flow Statement for the six months ended 31 May 2025
Six months Six months Year
ended ended ended
31 May 31 May 30 November
2025 2024 2024
(unaudited) (unaudited) (audited)
£’000 £’000 £’000
Operating activities
Net (loss)/profit on ordinary activities before taxation(1) (22,517) 104,901 86,349
Add back finance costs 12 45 97
Net loss/(profit) on investments held at fair value through profit or loss (including transaction costs) 15,911 (83,772) (59,598)
Net loss/(profit) from derivatives (including transaction costs) 13,275 (15,517) (12,839)
Financing costs on derivatives (1,229) (1,604) (3,230)
Net loss on foreign exchange 38 43 61
Sales of investments held at fair value through profit or loss 184,897 149,070 310,643
Purchases of investments held at fair value through profit or loss (119,117) (119,830) (251,053)
Net (payments)/receipts on closure of derivatives (10,171) 14,494 13,505
(Increase)/decrease in other receivables (508) (1,082) 63
(Decrease)/increase in other payables (813) 2,861 1,499
(Increase)/decrease in amounts due from brokers (1,811) (141) 681
(Decrease)/increase in amounts due to brokers (1,255) 4,001 (734)
Net movement in cash collateral held with brokers (1,860) 2,453 1,225
--------------- --------------- ---------------
Net cash inflow from operating activities before taxation 54,852 55,922 86,669
========= ========= =========
Taxation received/(paid) 108 (96) (62)
--------------- --------------- ---------------
Net cash inflow from operating activities 54,960 55,826 86,607
========= ========= =========
Financing activities
Interest paid (12) (45) (97)
Cash paid for ordinary shares repurchased into treasury (55,914) (25,402) (52,341)
Dividends paid (11,514) (10,841) (14,241)
--------------- --------------- ---------------
Net cash outflow from financing activities (67,440) (36,288) (66,679)
========= ========= =========
(Decrease)/increase in cash and cash equivalents (12,480) 19,538 19,928
Effect of foreign exchange rate changes (38) (43) (61)
--------------- --------------- ---------------
Change in cash and cash equivalents (12,518) 19,495 19,867
========= ========= =========
Cash and cash equivalents at start of period/year 43,889 24,022 24,022
--------------- --------------- ---------------
Cash and cash equivalents at end of the period/year 31,371 43,517 43,889
========= ========= =========
Comprised of:
Cash at bank 504 872 412
Bank overdraft – (3) –
Cash Fund(2) 30,867 42,648 43,477
--------------- --------------- ---------------
31,371 43,517 43,889
========= ========= =========
1 Dividends and interest received in cash during the period amounted to
£5,860,000 and £829,000 respectively (six months ended 31 May 2024:
£7,463,000 and £521,000; year ended 30 November 2024: £15,643,000 and
£1,459,000).
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 May 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 half yearly financial statements for the six month period ended 31 May
2025 have been prepared in accordance with the Disclosure Guidance and
Transparency Rules sourcebook of the Financial Conduct Authority and with the
UK-adopted International Accounting Standard 34 (IAS 34), Interim Financial
Reporting. The half yearly financial statements should be read in conjunction
with the Company’s Annual Report and Financial Statements for the year ended
30 November 2024, which have been prepared in accordance with UK-adopted
International Accounting Standards (IAS) with future changes being subject to
endorsement by the UK Endorsement Board and with the requirements of the
Companies Act 2006 as applicable to companies reporting under those standards.
Insofar as the Statement of Recommended Practice (SORP) for investment trust
companies and venture capital trusts, issued by the Association of Investment
Companies (AIC) in October 2019 and updated in July 2022, is compatible with
UK-adopted IAS, the financial statements have been prepared in accordance with
guidance set out in the SORP.
Adoption of new and amended International Accounting Standards and
interpretations:
IAS 1 – Classification of liabilities as current or non current (effective 1
January 2024). The IASB has amended IAS 1 Presentation of Financial Statements
to clarify its requirement for the presentation of liabilities depending on
the rights that exist at the end of the reporting period. The amendment
requires liabilities to be classified as non current if the entity has a
substantive right to defer settlement for at least 12 months at the end of the
reporting period. The amendment no longer refers to unconditional rights.
IAS 1 – Non current liabilities with covenants (effective 1 January 2024).
The IASB has amended IAS 1 Presentation of Financial Statements to introduce
additional disclosures for liabilities with covenants within 12 months of the
reporting period. The additional disclosures include the nature of covenants,
when the entity is required to comply with covenants, the carrying amount of
related liabilities and circumstances that may indicate that the entity will
have difficulty complying with the covenants.
The amendment of these standards did not have any significant impact on the
Company.
Relevant International Accounting Standards that have yet to be adopted:
IAS 21 – Lack of exchangeability (effective 1 January 2025). The IASB issued
amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates to
specify how an entity should assess whether a currency is exchangeable and how
it should determine a spot exchange rate when exchangeability is lacking. The
amendments also require disclosure of information that enables users of its
financial statements to understand how the currency not being exchangeable
into the other currency affects, or is expected to affect, the entity’s
financial performance, financial position and cash flows.
IFRS 18 – Presentation and disclosure in financial statements (effective 1
January 2027). The IASB issued IFRS 18, which replaces IAS 1 Presentation of
Financial Statements. IFRS 18 introduces new requirements for presentation
within the statement of profit or loss, including specified totals and
subtotals. Furthermore, entities are required to classify all income and
expenses within the statement of profit or loss into one of five categories:
operating, investing, financing, income taxes and discontinued operations,
whereof the first three are new. It also requires disclosure of newly defined
management defined performance measures, subtotals of income and expenses, and
includes new requirements for aggregation and disaggregation of financial
information based on the identified ‘roles’ of the primary financial
statements and the notes.
None of the standards that have been issued, but are not yet effective, are
expected to have a material impact on the Company.
3. Income
Six months Six months Year
ended ended ended
31 May 31 May 30 November
2025 2024 2024
(unaudited) (unaudited) (audited)
£’000 £’000 £’000
Investment income:
UK dividends 4,635 6,466 12,887
UK special dividends 243 404 575
UK property income distributions 170 – 803
Dividends from UK REITs(1) 424 335 169
Overseas dividends 670 890 1,346
Overseas special dividends 219 – –
Overseas property income distributions 57 – 118
Dividends from overseas REITs(1) 90 145 172
--------------- --------------- ---------------
Total investment income(2) 6,508 8,240 16,070
========= ========= =========
Net income from derivatives 341 768 1,024
--------------- --------------- ---------------
Other income:
Deposit interest 4 8 14
Interest from Cash Fund 720 603 1,530
Collateral interest 65 14 25
--------------- --------------- ---------------
Total other income 789 625 1,569
========= ========= =========
Total 7,638 9,633 18,663
========= ========= =========
1 REITs – real estate investment trusts.
2 UK and overseas dividends are presented based on the country of
domicile of the respective underlying portfolio company.
Dividends and interest received in cash in the six months ended 31 May 2025
amounted to £5,860,000 and £829,000 (six months ended 31 May 2024:
£7,463,000 and £521,000; year ended 30 November 2024: £15,643,000 and
£1,459,000).
No special dividends have been recognised in capital in the six months ended
31 May 2025 (six months ended 31 May 2024: £518,000; year ended 30 November
2024: £518,000).
4. Investment management and performance fees
Six months ended Six months ended Year ended
31 May 2025 31 May 2024 30 November 2024
(unaudited) (unaudited) (unaudited)
Revenue Capital Total Revenue Capital Total Revenue Capital Total
£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
Investment management fee 270 810 1,080 321 964 1,285 644 1,931 2,575
Performance fee (write back)/expense – (625) (625) – 2,749 2,749 – 1,593 1,593
--------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- ---------------
Total 270 185 455 321 3,713 4,034 644 3,524 4,168
========= ========= ========= ========= ========= ========= ========= ========= =========
Investment management fee
The investment management fee is calculated at the rate of 0.35% per annum on
month end Gross Assets. For the purposes of this note, Gross Assets are
defined as the value of the portfolio of the Company, including uninvested
cash, with the portfolio valuation based on value at risk (with value at risk
being the gross asset value of the long-only portfolio plus the gross value of
the underlying equities, long and short, to which the Company is exposed
through derivatives including CFDs and index futures). The investment
management fee is charged 25% to the revenue account and 75% to the capital
account of the Statement of Comprehensive Income. There is no additional fee
for company secretarial and administration services.
Performance fees
The performance fee is calculated at the rate of 15% of the outperformance of
the Company. For the purpose of this note, outperformance is defined as the
amount by which the annualised percentage Net Asset Value total return of the
Company arithmetically exceeds the annualised percentage return of the
Benchmark Index, measured over a rolling two-year performance period. This
rate is applied to the average Gross Assets, in that rolling two-year
performance period. Outperformance is the amount by which the Net Asset Value
total return arithmetically exceeds the Benchmark Index total return.
There is a cap on the annual total management and performance fees of 1.25%
per financial year of the average Gross Assets over the rolling two-year
performance period (the “Cap” or “Capped Amount”) which has the effect
of capping the annual performance fees at circa 0.9% of average Gross Assets
and which means that the performance fee from any performance period will not
exceed 0.9% of average Gross Assets for the relevant performance period.
The performance fee is calculated daily for the rolling two-year performance
period ending 30 November 2025 and the rolling two-year performance period
ending 30 November 2026, and accruals are made in the NAV subject to the Cap.
The performance fee is payable on 30 November each year in relation to the
rolling two-year performance period ending on that date. The accrual is
calculated applying the following assumptions:
* The Benchmark Index remains unchanged;
* The Net Asset Value total return performs in line with the Benchmark Index
total return for the remainder of the respective rolling two-year performance
periods ending 30 November 2025 and 30 November 2026; and
* The future value of Gross Assets for performance fee purposes is the same at
the balance sheet date.
The amount of outperformance on which a performance fee has not been paid in a
financial year due to the application of the Cap, will be carried forward to
offset against future shortfall returns. As at 1 December 2024, the carried
forward unpaid net outperformance, net of prior period shortfall returns,
available to offset against future shortfall returns was 7.5% (1 December
2023: 4.8%).
On the first day of the financial year, due to the application of the Cap in
the prior financial year, any performance fee for the ongoing rolling two-year
performance period not yet recognised is accrued in the daily NAV released to
the London Stock Exchange on that day.
Performance fees have been wholly allocated to the capital account of the
Statement of Comprehensive Income as the performance has been predominantly
generated through capital returns from the investment portfolio. The
performance fee accrual at 30 November 2024 of £3,607,000 for the rolling two
year periods included an amount of £2,982,000 crystallised for the period
ended 30 November 2024 and £625,000 accrued for the period ending 30 November
2025. As at 31 May 2025, the accrual of £625,000 has been written back due to
reduction in outperformance for the periods (31 May 2024: accrual of
£4,763,000; 30 November 2024: accrual of £3,607,000) and is calculated as
follows:
* For the annualised rolling two-year performance period to 30 November 2025,
the Company has underperformed the benchmark by 3.2% as at 31 May 2025. As a
result, an amount of £625,000 has been written back from the amount of
performance fee accrued in the prior period.
* For the annualised rolling two-year performance period to 30 November 2026,
the Company has underperformed the benchmark by 3.4% as at 31 May 2025. No
performance fee relating to this performance period has been accrued at the
date of this report.
5. Other operating expenses
Six months Six months Year
ended ended ended
31 May 31 May 30 November
2025 2024 2024
(unaudited) (unaudited) (audited)
£’000 £’000 £’000
Allocated to revenue:
Custody fee 4 3 7
Auditor’s remuneration(1) 29 35 70
Registrar’s fee 31 21 44
Directors’ emoluments 113 111 211
Broker fees 30 18 48
Depositary fees 30 35 70
Marketing fees 67 68 175
FCA fees 15 13 29
Printing and postage fees 49 21 55
Directors’ search fees – – 51
Directors’ evaluation fees – – 30
AIC fees 11 11 22
Stock exchange listing fees 18 18 36
Write back of prior year expenses(2) (25) (13) (27)
Other administrative costs 81 65 101
--------------- --------------- ---------------
Total revenue expenses 453 406 922
========= ========= =========
Allocated to capital:
Custody transaction charges(3) 11 11 21
--------------- --------------- ---------------
Total 464 417 943
========= ========= =========
1 In the six months ended 31 May 2025, no non-audit services were
provided by the auditors (six months ended 31 May 2024: none; year ended 30
November 2024: none).
2 Relates to printing and postage fees and other administrative costs
written back during the period (six months ended 31 May 2024: other
administrative costs; year ended 30 November 2024: Auditor’s remuneration,
printing and postage fees and other administrative costs).
3 For the six month period ended 31 May 2025, expenses of £11,000 (six
months ended 31 May 2024: £11,000; year ended 30 November 2024: £21,000)
were charged to the capital account of the Statement of Comprehensive Income.
This relates to transaction costs charged by the custodian on sale and
purchase trades.
The transaction costs incurred on the acquisition of investments amounted to
£603,000 for the six months ended 31 May 2025 (six months ended 31 May 2024:
£555,000; year ended 30 November 2024: £1,166,000). Costs relating to the
disposal of investments amounted to £131,000 for the six months ended 31 May
2025 (six months ended 31 May 2024: £107,000; year ended 30 November 2024:
£215,000). All transaction costs have been included within capital reserves.
6. Dividends
The Board has declared an interim dividend of 3.80p per share payable on 5
September 2025 to shareholders on the register at 15 August 2025 (six months
ended 31 May 2024: interim dividend of 3.75p per share paid on 27 August 2024
to shareholders on the register at 2 August 2024). This dividend has not been
accrued in the financial statements for the six months ended 31 May 2025 as,
under IAS, interim dividends are not recognised until paid. Dividends are
debited directly to reserves.
7. Earnings and net asset value per ordinary share
Revenue, capital (loss)/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
31 May 31 May 30 November
2025 2024 2024
(unaudited) (unaudited) (audited)
Net revenue profit attributable to ordinary shareholders (£’000) 6,889 8,885 17,046
Net capital (loss)/profit attributable to ordinary shareholders (£’000) (29,429) 96,006 69,276
--------------- --------------- ---------------
Total (loss)/profit attributable to ordinary shareholders (£’000) (22,540) 104,891 86,322
========= ========= =========
Equity shareholders’ funds (£’000) 505,940 644,498 595,908
========= ========= =========
The weighted average number of ordinary shares in issue during the period on which the earnings per ordinary share was calculated was: 81,621,206 94,149,841 91,924,583
The actual number of ordinary shares in issue at the period end on which the net asset value per ordinary share was calculated was: 77,531,864 91,606,927 87,271,864
--------------- --------------- ---------------
(Loss)/earnings per ordinary share
Revenue earnings per share (pence) - basic and diluted 8.44 9.44 18.54
Capital (loss)/earnings per share (pence) - basic and diluted (36.06) 101.97 75.37
--------------- --------------- ---------------
Total (loss)/earnings per share (pence) - basic and diluted (27.62) 111.41 93.91
========= ========= =========
As at As at As at
31 May 31 May 30 November
2025 2024 2024
(unaudited) (unaudited) (audited)
Net asset value per ordinary share (pence) 652.56 703.55 682.82
Ordinary share price (pence) 578.00 639.00 593.00
========= ========= =========
There were no dilutive securities at the period end (six months ended 31 May
2024: none; year ended 30 November 2024: none).
8. 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 5 pence each:
At 30 November 2023 (audited) 95,872,161 7,337,703 103,209,864 5,160
Ordinary shares repurchased into treasury (4,265,234) 4,265,234 – –
========= ========= ========= =========
At 31 May 2024 (unaudited) 91,606,927 11,602,937 103,209,864 5,160
Ordinary shares repurchased into treasury (4,335,063) 4,335,063 – –
========= ========= ========= =========
At 30 November 2024 (audited) 87,271,864 15,938,000 103,209,864 5,160
Ordinary shares repurchased into treasury (9,740,000) 9,740,000 – –
--------------- --------------- --------------- ---------------
At 31 May 2025 (unaudited) 77,531,864 25,678,000 103,209,864 5,160
========= ========= ========= =========
During the six months ended 31 May 2025, the Company repurchased 9,740,000
shares into treasury (six months ended 31 May 2024: 4,265,234; year ended 30
November 2024: 8,600,297) for a total consideration of £55,914,000 (six
months ended 31 May 2024: £25,477,000; year ended 30 November 2024:
£52,098,000) including costs.
Since 31 May 2025 and up to 30 July 2025, 1,025,000 shares have been
repurchased into treasury for a total consideration of £6,031,000.
The ordinary shares give shareholders voting rights, the entitlement to all of
the capital growth in the Company’s assets and to all income from the
Company that is resolved to be distributed.
9. Reserves
The Company’s share premium account was cancelled pursuant to
shareholders’ approval of a special resolution at the Company’s Annual
General Meeting on 25 March 2025 and Court approval on 29 April 2025. The
share premium account which totalled £242,122,000 at the time of cancellation
was transferred to a special reserve. This action was taken, in part, to
increase the Company’s distributable reserves, thereby providing a greater
ability to pay dividends and buy back shares.
The share premium account and capital redemption reserve of £nil and
£11,905,000 (31 May 2024: £242,122,000 and £11,905,000; 30 November 2024:
£242,122,000 and £11,905,000) 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 reserves 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 £39,297,000 (six months ended 31 May 2024:
£54,473,000; year ended 30 November 2024: £41,276,000) 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 May 2025, distributable reserves (excluding capital reserves on the
revaluation of investments) amounted to £449,578,000 (31 May 2024:
£330,838,000; 30 November 2024: £295,445,000).
10. 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.
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 Statement
of Financial Position at their fair value (investments and derivatives) or at
an amount which is a reasonable approximation of fair value (due from brokers,
dividends and interest receivable, due to brokers, accruals, cash at bank and
bank overdrafts). IFRS 13 requires the 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 2(g) as set out on page
100 in the Company’s Annual Report and Financial Statements for the year
ended 30 November 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.
Valuation techniques used for non-standardised financial instruments such as
options, currency swaps and other over-the-counter derivatives include the use
of comparable recent arm’s length transactions, reference to other
instruments that are substantially the same, discounted cash flow analysis,
option pricing models and other valuation techniques commonly used by market
participants making the maximum use of market inputs and relying as little as
possible on entity specific inputs.
As at the period end the long and short derivative positions were valued using
the underlying equity bid price (offer price in respect of short positions)
and the contract price at the inception of the trade or at the trade reset
date. There have been no changes to the valuation technique since the previous
year or as at the date of this report.
Contracts for difference have been classified as Level 2 investments as their
valuation has been based on market observable inputs represented by the market
prices of the underlying quoted securities to which these contracts expose the
Company.
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
measurement of Level 3 assets or liabilities.
Fair values of financial assets and financial liabilities
The table below sets out fair value measurements using the IFRS 13 fair value
hierarchy
Financial assets/(liabilities) at fair value through profit or loss at 31 May 2025 (unaudited) Level 1 Level 2 Level 3 Total
£’000 £’000 £’000 £’000
Assets:
Equity investments 475,909 – – 475,909
Contracts for difference (fair value) – 855 – 855
--------------- --------------- --------------- ---------------
Liabilities:
Contracts for difference (fair value) – (915) – (915)
--------------- --------------- --------------- ---------------
Total 475,909 (60) – 475,849
========= ========= ========= =========
Financial assets/(liabilities) at fair value through profit or loss at 31 May 2024 (unaudited) Level 1 Level 2 Level 3 Total
£’000 £’000 £’000 £’000
Assets:
Equity investments 612,126 – – 612,126
Contracts for difference (fair value) – 2,527 – 2,527
Index future 495 – – 495
--------------- --------------- --------------- ---------------
Liabilities:
Contracts for difference (fair value) – (1,146) – (1,146)
--------------- --------------- --------------- ---------------
Total 612,621 1,381 – 614,002
========= ========= ========= =========
Financial assets/(liabilities) at fair value through profit or loss at 30 November 2024 (audited) Level 1 Level 2 Level 3 Total
£’000 £’000 £’000 £’000
Assets:
Equity investments 557,602 – – 557,602
Contract for difference (fair value) – 2,173 – 2,173
--------------- --------------- --------------- ---------------
Liabilities:
Contract for difference (fair value) – (72) – (72)
Index future (288) – – (288)
--------------- --------------- --------------- ---------------
Total 557,314 2,101 – 559,415
========= ========= ========= =========
There were no transfers between levels for financial assets and financial
liabilities recorded at fair value during the six months ended 31 May 2025,
six months ended 31 May 2024 or year ended 30 November 2024. The Company did
not hold any Level 3 securities during the period ended 31 May 2025 (six
months ended 31 May 2024: none; year ended 30 November 2024: none).
For exchange listed equity investments the quoted price is the bid price.
Contracts for difference are valued based on the bid price of the underlying
quoted securities that the contracts relate to. 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.
11. 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 pages 63 and 64 of the
Directors’ Report in the Company’s Annual Report and Financial Statements
for the year ended 30 November 2024.
The investment management fee due for the six months ended 31 May 2025
amounted to £1,080,000 (six months ended 31 May 2024: £1,285,000; year ended
30 November 2024: £2,575,000). At the period end, £1,702,000 was outstanding
in respect of management fees (31 May 2024: £1,869,000; 30 November 2024:
£1,906,000).
The performance fee accrual at 30 November 2024 of £3,607,000 for the rolling
two year periods included an amount of £2,982,000 crystallised for the period
ended 30 November 2024 and £625,000 accrued for the period ending 30 November
2025. As at 31 May 2025, the accrual of £625,000 has been written back due to
reduction in outperformance for the periods (31 May 2024: accrual of
£4,763,000; 30 November 2024: accrual of £3,607,000) and is calculated as
follows:
* For the annualised rolling two-year performance period to 30 November 2025,
the Company has underperformed the benchmark by 3.2% as at 31 May 2025. As a
result, an amount of £625,000 has been written back from the amount of
performance fee accrued in prior period.
* For the annualised rolling two-year performance period to 30 November 2026,
the Company has underperformed the benchmark by 3.4% as at 31 May 2025. No
performance fee relating to this performance period has been accrued at the
date of this report.
In addition to the above services, BIM (UK) has provided the Company with
marketing services. The total fees paid or payable for these services to 31
May 2025 amounted to £67,000 excluding VAT (six months ended 31 May 2024:
£68,000; year ended 30 November 2024: £175,000). Marketing fees of £192,000
excluding VAT (31 May 2024: £192,000; 30 November 2024: £124,000) were
payable and accrued as at 31 May 2025.
As at 31 May 2025, an amount of £175,000 (31 May 2024: £193,000; 30 November
2024: £177,000) was payable to the Manager in respect of the recharge of
Directors’ fees.
The Company has an investment in the BlackRock Institutional Cash Series plc
– Sterling Liquid Environmentally Aware Fund of £30,867,000 (31 May 2024:
£42,648,000; 30 November 2024: £43,477,000) which for the period ended 31
May 2025, 31 May 2024 and year ended 30 November 2024 has been presented in
the financial statements as a cash equivalent.
The ultimate holding company of the Manager and the Investment Manager is
BlackRock, Inc., a company incorporated in Delaware, USA.
12. Related party disclosure
Directors’ emoluments
The Board consists 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. With effect from 1 December 2024, the
Chairman receives an annual fee of £50,250, the Chairman of the Audit
Committee receives an annual fee of £40,000, the Senior Independent Director
receives an annual fee of £36,100 and each of the other Directors receives an
annual fee of £34,100.
As at 31 May 2025, an amount of £16,000 (31 May 2024: £21,000; 30 November
2024: £16,000) was payable in respect of Directors’ fees.
At the period end, members of the Board, including any connected persons, held
ordinary shares in the Company as set out below:
Ordinary Ordinary Ordinary
shares shares shares
1 August 31 May 30 November
2025 2025 2024
James Will(1) 10,000 10,000 n/a
Louise Nash 5,500 5,500 5,500
Angela Lane 11,833 11,833 11,749
Merryn Somerset Webb 3,932 3,932 3,823
Nigel Burton 17,470 17,470 16,986
Christopher Samuel(2) n/a n/a 67,263
========= ========= =========
1 James Will was appointed as a Director on 1 January 2025 and was
appointed as Chairman on 25 March 2025.
2 Christopher Samuel retired as Chairman and as a Director on 25 March
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
Related BlackRock Funds Significant Investors who are Investors who are not
not affiliates of BlackRock affiliates of BlackRock
Group or BlackRock, Inc. Group or BlackRock, Inc.
As at 31 May 2025 1.3 n/a n/a
As at 30 November 2024 1.2 n/a n/a
As at 31 May 2024 1.4 n/a n/a
========= ========= =========
13. Contingent liabilities
There were no contingent liabilities as at 31 May 2025 (31 May 2024: none; 30
November 2024: none).
14. 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 May 2025 and
31 May 2024 has not been audited.
The information for the year ended 30 November 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 financial
statements contained no qualification or statement under Sections 498(2) or
498(3) of the Companies Act 2006.
15. Annual results
The Board expects to announce the annual results for the year ending 30
November 2025 in February 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 by the beginning of February 2026, with the Annual General Meeting
expected to be held in March 2026.
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: 0207 294 3620
E-mail: edh@lansons.com; BlackRockInvestmentTrusts@lansons.com
1 August 2025
12 Throgmorton Avenue
London EC2N 2DL
END
The Half Yearly Financial Report will also be available on the BlackRock
website at http://www.blackrock.com/uk/thrg. 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.
Should you wish to receive investment trust related news and insights you can
subscribe to BlackRock’s Investment Trust Matters newsletter at:
https://go.blackrock.com/LP=2142.
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