REG - City of Lon Inv Grp - Final Results for the year to 30th June 2025
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RNS Number : 4132Z City of London Investment Group PLC 16 September 2025
16th September 2025
CITY OF LONDON INVESTMENT GROUP PLC (LSE: CLIG)
("City of London", "the Group" or "the Company")
FINAL RESULTS FOR THE YEAR TO 30TH JUNE 2025 AND DIVIDEND DECLARATION
The Company announces that it has today made available on its website,
https://www.clig.co.uk/, the following documents:
- Annual Report and Financial Statements for the year ended 30th June 2025
(the 2025 Annual Report); and
- Notice of 2025 Annual General Meeting (the Notice of AGM).
The above documents will be uploaded to the National Storage Mechanism for
inspection at https://data.fca.org.uk/#/nsm/nationalstoragemechanism in due
course, in accordance with Listing Rule 9.6.1 R.
The 2025 Annual Report and the Notice of AGM, which will be held on 27th
October 2025, will be posted to shareholders on 22nd September 2025.
The Appendix to this announcement contains additional information which has
been extracted from the 2025 Annual Report for the purposes of compliance with
DTR 6.3.5 only and should be read in conjunction with this announcement.
together, these constitute the material required by DTR 6.3.5 to be
communicated to the media in unedited full text through a Regulatory
Information Service. This announcement should be read in conjunction with, and
is not a substitute for reading, the full 2025 Annual Report.
SUMMARY
- Funds under Management (FuM) of $10.8 billion at 30th June 2025. This compares
with $10.2 billion at the beginning of this financial year on 1st July 2024
- Estimated FuM as of 11th September 2025 was $11.1 billion (2.8% higher than
30th June 2025)
- Net fee income was $69.8 million (2024: $66.2 million)
- Underlying profit before tax* was $30.8 million (2024: $27.2 million). Profit
before tax was $26.0 million (2024: $22.6 million)
- Underlying basic earnings per share* were 36.7p (2024: 33.5p). Basic earnings
per share were 30.9p (2024: 27.8p). after an effective tax charge of 24%
(2024: 24%) of profit before taxation
- Recommended final dividend of 22p per share (2024: 22p) payable on 6th
November 2025 to shareholders on the register on 26th September 2025, making a
total for the year of 33p (2024: 33p)
*This is an Alternative Performance Measure (APM). Please refer to the
Financial Review for more details on APMs.
For access to the full report, please follow the link below:
http://www.rns-pdf.londonstockexchange.com/rns/4132Z_1-2025-9-15.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/4132Z_1-2025-9-15.pdf)
Dividend
The Board is proposing to recommend a final dividend of 22p per share (2024:
22p), subject to approval by shareholders at the Company's Annual General
Meeting (AGM) to be held on 27th October 2025. This would bring the total
dividend payment for the year to 33p (2024: 33p). Rolling five-year dividend
cover based on underlying profits equates to 1.21 times (2024: 1.24 times).
The Board confirms the final dividend timetable for the year to 30th June
2025:
· Ex-dividend date: 25th September 2025
· Dividend record date: 26th September 2025
· DRIP election date: 10th October 2025
· Dividend payment date: 6th November 2025
Investor Presentation via Investor Meet Company
Rian Dartnell - Chairman, Deepranjan Agrawal - CFO, Carlos Yuste - Head of
Business Development, Michael Edmonds - CLIM CIO and Dan Lippincott - KIM
CIO will provide a live presentation relating to the FY 2025 year-end
results via Investor Meet Company on 17th September 2025 at 15:00 BST.
The presentation is open to all existing and potential
shareholders. Questions can be submitted pre-event via your Investor Meet
Company dashboard up until 16th September 2025 at 09:00 BST, or at any time
during the live presentation.
Investors can sign up to Investor Meet Company for free and add to meet City
of London Investment Group PLC via:
https://www.investormeetcompany.com/city-of-london-investment-group-plc/register-investor
(https://www.investormeetcompany.com/city-of-london-investment-group-plc/register-investor)
Investors who already follow City of London Investment Group PLC on the
Investor Meet Company platform will automatically be invited.
For further information, please visit www.citlon.co.uk or contact:
Rian Dartnell, Chairman
City of London Investment Group PLC
Tel: 001-610-380-0435
Martin Green/
James Hornigold
Zeus Capital Limited
Financial Adviser & Broker
Tel: +44 (0)20 3829 5000
CHAIR'S STATEMENT
+9.6% Underlying EPS* Underlying earnings per share for CLIG were higher by 9.6% at 36.7p (2024:
33.5p).
+5.6% FuM FuM as of 30th June 2025 rose by 5.6% to $10.8 billion (2024: $10.2
billion).
1.21 Dividend cover Rolling five-year dividend cover based on underlying* profits is 1.21 (2024:
1.24).
11.3% Total return CLIG's total return since 2006 is an annualised return of 11.3%.
520.1p† Total dividend Since listing, CLIG has distributed total dividends of 520.1p† per share.
* Refer to the financial review for more details.
† Includes proposed dividend of 22p.
You wait ages for a bus and then three turn up at the same time. In 2025, our
teams' preparation and positioning paid off as Closed-End Funds (CEF)
discounts narrowed, there was a renewed interest in international and emerging
markets, and many currencies strengthened against the dollar. The final
positive contributor was success in our corporate governance efforts as CEF
Boards worked with us and acted to reduce discounts.
It was a good year for CLIG, led by the success and talent of our investment
teams who generated substantial gains and outperformed their benchmarks for
our clients.
CLIG is an investment-led company with an integrated global investment team
focused on building diversified portfolios of high quality, but discounted and
often misunderstood securities, including CEFs. By concentrating on niche and
underfollowed securities, we aim to exploit persistent market inefficiencies
that often go unnoticed by others. Our investment approach is research-driven,
combining quantitative techniques with in-depth qualitative analysis. Our
global presence enables a continuous investment process that capitalises on
opportunities around the clock. Our day begins in Singapore, where our team
identifies dislocations in Asian markets while many competitors are asleep.
The portfolio is then handed over to our London team, which focuses on
opportunities in the UK and European markets. Finally, the US team takes over,
continuing the cycle across North American markets. This seamless global
collaboration enhances diversification and ensures we are positioned to act
swiftly to capitalise on dislocations and evolving market dynamics.
Well-resourced teams, a stable environment, consistent processes - and no
stars
Throughout my career, I've learned the value of a contrarian and supportive
mindset in managing investment teams. Many managers are procyclical, spending
more in good times and slashing budgets in downturns. To avoid this, CLIG
maintains a conservative balance sheet with substantial cash and no debt.
Discounts in CEFs are often widest in hard times. It is essential that we
support our teams and lend a hand, but particularly so when markets are down.
This calm and methodical orientation is key to our investment teams having the
composure to invest with conviction when opportunities present themselves.
CLIG remains focused on empowering and equipping our teams and providing a
stable environment to allow them to execute consistently for our clients.
Our desire to learn and grow leads us to innovate and expand our expertise as
we have for more than three decades. For CLIM, our roots are in Emerging
Markets, but today we manage large mandates in International, Listed Private
Equity and Opportunistic Value on behalf of predominantly US institutional
clients.
At KIM, we have an array of strong offerings including Growth and Conservative
Balanced, Taxable and Tax-sensitive Fixed Income, Cash Management and
Equities. Together CLIM provides compelling offerings for our clients to
compound their capital in equity markets and KIM provides chiefly lower risk
offerings ideally suited to its private client base. We carefully monitor our
capacity constrained investment products and know that our long-term
performance for clients is our central purpose. Rest assured we will maintain
stability of assets with a strict view on our ability to outperform.
Happy fifth anniversary! Our dream merger with Karpus Investment Management
Before delving into developments at your Company over the past year, I would
like to celebrate our five-year anniversary of merging with Karpus Investment
Management. By combining, CLIG gained an excellent business, a talented new
team with complementary skills, all contributing strong cash flows, greater
stability, diversification and new learnings.
George Karpus had a dream as an entrepreneur and in 1986 embarked on his
lifetime's passion. At the same time, Barry Olliff was planning and
establishing Olliff & Partners, the predecessor firm to City of London
Investment Group. George and Barry pursued and fulfilled their dreams over
nearly four decades - passionately leading their teams, growing their firms
and providing strong returns for clients. Five years into our relationship, I
can say with confidence that our CLIM and KIM merger made good sense and added
considerable expertise and value to CLIG. We draw confidence from this
successful integration. While Barry Olliff and George Karpus are officially
retired, we are fortunate that their teachings and philosophies are alive and
well at CLIG - and both Barry and George remain strong supporters of our
teams.
During the year, Mike Edmonds was appointed Chief Investment Officer of CLIM.
A highly accomplished investor and City of London veteran, Mike first began
his career with the Group in 1992. He brings deep investment expertise,
creativity, and an engaging intellectual curiosity - qualities that complement
his strong collaborative relationships across our Investment, Research, and
Macroeconomic groups. The team is energised with a renewed sense of purpose -
using new tools and greater outreach to improve investment processes and
challenging old practices to find better ones. Dan Lippincott, Chief
Investment Officer at KIM, continues to work very productively with his team
and morale is high, boosted by strong performance.
Environmental, Social and Governance
Your Board continues to be committed to the highest standards in
environmental, social and governance matters. The Group continues to implement
a carbon offset program to address our impact related to travel and other
activities. We continually balance the interests of our clients, employees and
shareholders and seek to improve and grow the Company.
Diversity, equity and inclusion continue to be emphasised across the Group.
All employees attend regular monthly training programs to prepare and remind
them of their role in protecting our technology, with an elevated focus on
cybersecurity.
The Group continues to be strongly committed to regular workforce engagement
events. These sessions ensure the Non-Executive Directors (NEDs) maintain a
good understanding of the many elements at play in the Group as well as the
teams and individuals working to grow and improve the business. Workforce
engagement with the Board has been more frequent over the past six months as
we increased focus on growth initiatives as well as streamlining for
efficiency gains.
Broadening leadership, stimulating engagement and empowering our teams
A fresh start is energising our teams. There's a renewed sense of purpose and
momentum is building. We are challenging old methods to find greater
efficiencies.
We are broadening our management structure with more members of our subsidiary
Boards at CLIM and KIM and underlining the importance of robust debate and
engagement in CLIM and KIM Operating Committees. Innovation and adaptability
to change are more important than ever and this happens best from the grass
roots.
Your management and the Board have embarked upon a review of our business
practices to identify more areas of efficiencies and to ensure we are
improving with the latest techniques available. We are giving our teams
greater say in designing workflows and pushing decision making to the
"coal-face" where more informed decisions can be made - more management by
objective and more trust. We are confident in our excellent teams and feel
greater autonomy will unleash creativity and enhance engagement. This will
allow teams to spend even more of their time and resources on our core
functions: investment management and client services.
Your Board
Your Board is operating well and is keenly focused on providing the necessary
elements to support CLIG for continued success.
I began my role as Chairman in October 2023. One of my first activities was to
work with our Nomination Committee to identify an excellent addition to our
Board. Sarah Ing joined us a few months later and became Chair of the
Remuneration Committee at the end of 2024. Peter Roth, who joined in 2019,
continues his excellent work as Senior Independent Director as well as Chair
of the Audit and Risk Committee. Peter is deeply committed to the Group's
success and he was particularly hard-working and effective this year. Finally,
we were pleased to identify Ben Stocks and welcome him to our Board in April
2025 and appoint him as Chair of our Nomination Committee in July. Ben hit the
ground running and is already making important contributions.
The Board is currently well-balanced with members possessing a good mix of
skills and perspectives. We will also begin a search for another NED to add
diversity and longevity to the Board. We expect to appoint this new NED after
our new CEO joins.
Having completed my second year as Chairman, I am standing for another year to
complete a three-year term. Our largest shareholders, including our Control
Shareholder Group, requested that I continue to serve as Chairman,
particularly in this period in which we are selecting a new CEO. In July, Tom
Griffith became a Senior Advisor and stepped down from his role as CEO. On
behalf of our employees and the Board, I would like to thank Tom for his
dedication to the Group. He remains a cherished friend of the firm and the
team looks forward to maintaining a close relationship with Tom in the years
to come.
Our activities to identify our new CEO are advancing well and we have
considerable interest from candidates for this exciting role. We are seeking a
leader who shares our investment philosophy and passion for supporting our
teams to deliver outstanding results for our clients. The ideal candidate will
bring an investor's mindset, a "can-do" and empowering management style, and
the drive and commercial acumen to propel our firm to the next level.
Dividend
CLIG went public in 2006 at a price of 184.6p per share and your Company paid
its first dividend of 8.6p per share in January 2007. It is gratifying to note
that we have raised the dividend eight times to its current 33p per share.
Since our listing, we have distributed back to shareholders a total of 520.1p
per share in dividends (including proposed dividend of 22p) or 2.8 times our
original 2006 share price.
We recommend a maintained final dividend of 22p per share, payable as of 6th
November 2025 for shareholders of record on 26th September 2025. Subject to
shareholder approval, our annual dividend, including the 11p per share of
interim dividend paid in April 2025 will therefore total 33p per share (2024:
33p), providing an attractive yield for our shareholders. We are maintaining
our dividend policy of targeting a 1.2 times dividend cover over a rolling
five-year period. The current dividend cover is 1.21 times over five years.
We continue to believe that the existing policy will serve the group well; it
has provided a useful structure and discipline for many years. Please refer to
Figure 1 for CLIG's dividend history and our website at
https://clig.com/dividend-cover/ for the dividend cover chart, which provides
a template for determining cover based on a number of variables.
CLIG remains debt-free and had cash balances of $35.5 million as of 30th June
2025 (2024: $33.7 million) with the final dividend of 22p per share (c.$14.8
million) to be paid in November 2025. After the dividend is paid, we will
continue to have over $20 million of cash on our balance sheet.
Figure 1. Dividend history
Pence per share Dividend cover* Pence per share
FY Interim Final Total 1yr Rolling 5yr Special dividend Total (inc. special dividend)
2005-06 8.6 - 8.6 1.48 n/a - 8.6
2006-07 3.0 7.0 10.0 1.99 n/a - 10.0
2007-08 6.0 13.5 19.5 1.51 n/a - 19.5
2008-09 5.0 10.0 15.0 1.05 n/a - 15.0
2009-10 7.0 15.0 22.0 1.28 1.46 - 22.0
2010-11 8.0 16.0 24.0 1.44 1.45 - 24.0
2011-12 8.0 16.0 24.0 1.40 1.34 - 24.0
2012-13 8.0 16.0 24.0 1.04 1.24 - 24.0
2013-14 8.0 16.0 24.0 0.87 1.24 - 24.0
2014-15 8.0 16.0 24.0 1.10 1.17 - 24.0
2015-16 8.0 16.0 24.0 0.96 1.07 - 24.0
2016-17 8.0 17.0 25.0 1.46 1.09 - 25.0
2017-18 9.0 18.0 27.0 1.47 1.17 - 27.0
2018-19 9.0 18.0 27.0 1.30 1.26 13.5 40.5
2019-20 10.0 20.0 30.0 1.28 1.29 - 30.0
2020-21 11.0 22.0 33.0 1.46 1.39 - 33.0
2021-22 11.0 22.0 33.0 1.35 1.37 13.5 46.5
2022-23 11.0 22.0 33.0 1.11 1.30 - 33.0
2023-24 11.0 22.0 33.0 1.01 1.24 - 33.0
2024-25 11.0 22.0** 33.0 1.12 1.21 - 33.0
Total dividend 520.1
*Excluding special dividends
** Proposed dividend
Shareholder engagement
We continue to pursue a transparent dialogue with our shareholders. We plan to
continue periodic programs with Investor Meet Company as we have found the
platform and format to be an efficient and productive way to engage with
shareholders and prospects.
I am pleased to report that relations with our Control Shareholder Group have
been very constructive and helpful to the Group. We welcome the engagement
with all shareholders and find we learn a great deal through these dialogues.
Share Price KPI
CLIG targets a total return (share price plus dividends) to compound annually
in a range of 7.5% to 12.5% over a five-year period. For the five years ended
30th June 2025, the total return was 36.9%, or 6.5% annualised (source,
Bloomberg). The environment for UK-listed asset managers has been negative for
the past few years for a number of reasons and resulted in a de-rating of our
shares while our dividends have been consistent, including periodic special
dividends. We are more optimistic that the continued shift of investor
interest outside of the United States will boost profitability and that
investors will take note of our growth in FuM, profits as well as our
increased focus on efficiency.
I also note that the 30th June 2025 share price of £3.46 per share (being the
end-date for the reference price) marked a weak moment for CLIG shares. From
30th June to 31st August 2025, the shares have risen 13%, putting CLIG's share
price return at over 9% p.a. for the five-plus years. CLIG's total return
since listing in April 2006 is an annualised return of 11.3%.
Figure 2. CLIG's total return since listing in April 2006 v/s UK Small Cap
indices (annualised)
Total return since 2006
CLIG LN 11.3%
SMX = FTSE Small Cap Index 7.1%
SMXX = FTSE Small Cap ex Inv Trusts 6.0%
ASX= FTSE ALL Share Index 6.1%
Source: Bloomberg
Outlook
Interest in markets outside the United States returned in force in 2025 and
seems set to continue as investors seek out relative value given large
segments of the US market appear stretched. This should serve the Group
extremely well as Emerging Markets ($3.7 billion) and International ($2.5
billion) remain our largest areas and make up over 57% of client assets. At
KIM, the focus on fixed income products and balanced portfolios provides a
useful balance to our more volatile equity strategies at CLIM.
Our teams truly have the "Right to Win" with highly talented and
well-resourced teams, strong track records and dedicated operating and
client-servicing teams. I am confident our investment teams are the best in
CLIG's history. It is heartening to observe client wins and new flows into our
strategies, but disappointing to see net outflows, particularly in the first
half of the financial year. We are focused on client retention and more
optimistic that our healthy pipeline will improve flows.
Annual General Meeting (AGM)
Our Annual General Meeting will take place on Monday, 27th October 2025 at 77
Gracechurch Street, London EC3V 0AS. This year, we will have a session
preceding the AGM in which our Chief Investment Officers from CLIM and KIM and
members of our Investment Team will present their views and outlook. It is
sure to be an interesting update and a good opportunity for you to meet
members of our investment team. You are warmly invited and we hope to meet you
there.
Conclusion
Over the past year, your team successfully capitalised on market opportunities
by staying true to its team-based approach and disciplined investment process.
These efforts resulted in a period of strong performance for our clients.
Success generates its own momentum and with the Board's commitment to
empowering and supporting employees, we are laying the groundwork to propel
CLIG to the next phase of success.
Teamwork, preparation and patience: our key focus is on performing for our
clients. When our clients win, we all win.
I want to thank our colleagues at CLIG for their focus and dedication. We
thank you, our shareholders, for your continued confidence in CLIG.
Sincerely yours,
Rian Dartnell
Chairman of the Board
15th September 2025
INVESTMENT AND BUSINESS REVIEW
Market overview
The past year represented another risk-on phase of market action. Equity
markets globally continued to post stellar returns as many markets set new
all-time highs. This represented a broadening out of performance as investors
began to diversify away from their seemingly sole focus on the "Magnificent
Seven" mega cap companies and the US information technology sector. Artificial
intelligence continued to be a major market theme but the focus widened to
include emerging markets beneficiaries as well as companies that will benefit
from the massive amounts of energy and other natural resources that will be
required to fully implement its use in the global economy.
The MSCI ACWI Index, a proxy for global markets, returned 16.7% on a total
return basis in US dollar terms. European markets outperformed, rising 19.1%,
led by the financial sector as interest rates fell while aerospace and defence
companies in particular benefited from Germany's decision to loosen its fiscal
constraints and commit to more military spending.
That is not to say that it was all smooth sailing. In the second half of 2024,
equities were boosted by three rate cuts by the US Federal Reserve and
euphoria over the election of Donald Trump for a second term as US President
in what was assumed to be a relatively strong mandate for a business-friendly
agenda. However, there were early signs of policy doubts by February which
became panic stricken in April following President Trump's announcement of
"Liberation Day" tariffs. Equities swooned before climbing the proverbial wall
of worry for the rest of the first half as deals were cut and the initial
headline tariff rates reduced to more palatable, albeit decades high, levels.
Fixed income markets were equally volatile with the US 10 Year Treasury yield
oscillating between a high of 4.8% and a low of 3.6% as concerns about
inflation levels, economic activity, Federal Reserve independence and US debt
levels caused bouts of panic and gloom in fairly equal measure. In the end,
the yield ended the period at 4.2%, only a shade lower than the level it
entered the year at 4.4%. The Bloomberg Global Aggregate Index rose 8.9% in US
dollar terms. Credit markets were also largely benign and supportive of equity
performance as spreads tightened, reflected in a 13.0% gain in the Bloomberg
Global High Yield Index.
The dollar weakened significantly over the year, in particular against the
Euro, which gained more than 10%. This represented a sea change in sentiment
which could underpin international diversification in the years ahead if the
trend reversal continues. Gold (+42%) and Bitcoin (+74%) also benefited from
dollar weakness indicating an investor preference for alternative, non-fiat
currency assets.
Looking ahead, investor focus will likely remain on the Trump administration's
policies and how these impact the global economy and the new world order.
Dramatic and impactful changes are occurring with trade, resource and
industrial policy at the forefront. Interest rate trends, trade negotiations,
and geopolitical pressure points will all likely capture headlines in the year
ahead. While risks will always persist, the broadening out of asset class
performance indicates strong underpinnings for the recent bull market and
should support further gains. However, the uncertain and ever-changing
environment underlines the importance of active management in navigating an
increasingly complex global landscape.
Investment Management Performance
It was broadly a favourable environment for CLIM's investment strategies from
a performance perspective and all strategies ended the year ahead of their
benchmarks as the table below demonstrates.
Figure 1: CLIM strategies Performance Benchmark Difference
Emerging Markets +20.3% +14.8% +550bps
International Equity +22.7% +17.7% +500bps
Opportunistic Value +17.5% +12.8% +470bps
Listed Private Equity +16.6% +8.0% +860bps
*The above returns are presented as net of fees performance figures. The CLIM
Global Emerging Markets Strategy is shown against the S&P Emerging
Frontier Super Composite BMI Net TR Index, the CLIM Global Developed CEF
International Equity Strategy is shown against the MSCI ACWI ex-US Net TR
Index, the CLIM Opportunistic Value Strategy is shown against the Blended
50/50 MSCI AWCI/Bloomberg Global Aggregate Bond Index, and the CLIM Listed
Private Equity Strategy is compared to an 8% annual hurdle rate. Data is as of
30th June 2025. Past performance is no guarantee of future results.
Firstly, our strategies have benefited from an improved environment for
corporate governance. The last few years since 2022 have been characterised by
a period of wide discounts among the universe of closed-end funds (CEFs) in
which CLIM primarily sources investments. This has been particularly
pronounced in the UK market where outflows from institutional and retail
investors alike had resulted in depressed ratings. Such ratings allowed CLIM
to accumulate positions at deeply valued price points and to work with Boards
to take measures to address discounts. Among other factors, these engagements
helped provide the catalyst for broad-based actions by Boards to narrow
discounts on funds held in portfolios. Such event-driven actions included
elevated levels of share buybacks, tender offers, mergers, restructurings and,
in extreme cases, outright liquidations. CLIM's strategies benefited
accordingly.
Secondly, heightened market volatility, particularly since the election of
President Trump in late 2024, has provided additional opportunities to benefit
from discount volatility, as well as market rotation, as countries, sectors,
size and style factors came in and out of favour.
Lastly, outperformance by non-US equities over the last twelve months, after
more than a decade of dominance by US stocks, brought new buyers to our
largest areas of underlying focus, namely International Equity and Emerging
Markets (EM).
The International Equity strategy benefited from increased demand, especially
for European and UK large cap exposure as well as international mid and small
cap exposure.
Conversely, in addition to the factors already highlighted, the EM strategy
was meaningfully aided by its allocation to South Korean holding companies
which outperformed following the Government's proposed Corporate Value Up
program designed to address the "Korea Discount" by promoting capital
efficiency, transparent governance and increased shareholder returns.
Likewise, KIM's main strategies performed well over the trailing twelve
months.
Figure 2: KIM strategies Performance Benchmark Difference
Growth Balanced +12.7% +12.2% +55bps
Conservative Balanced +9.2% +10.1% -87bps
Tax-Sensitive Fixed Income +3.2% +1.1% +207bps
Taxable Fixed Income +7.4% +5.9% +150bps
Cash Management +6.0% +5.7% +29bps
Equities +16.8% +16.3% +46bps
*The KIM Fixed Income Strategy is shown against the Bloomberg
Government/Credit Bond Index, the KIM Tax-Sensitive Fixed Income Strategy is
shown against the Bloomberg Municipal Bond Index, the KIM Growth Balanced
Strategy is shown against the Blended 40% Bloomberg Government/Credit Bond
Index/39% Russell 3000 Index/21% MSCI ACWI ex USA Net TR Index. The KIM
Conservative Balanced Strategy is shown against the Blended 60% Bloomberg
Government/Credit Bond Index/26% Russell 3000 Index/14% MSCI ACWI ex USA Net
TR Index. The KIM Equities Strategy is shown against the Blended 65% Russell
3000 Index/35% MSCI ACWI ex USA Net TR Index. The KIM Cash Management Strategy
is shown against the ICE BofA 1-3 Year US Treasury Index.
The primary contributor to outperformance over the past year has been a modest
narrowing of discounts across fixed income and equity CEFs. Performance was
further enhanced by substantial tender offers executed near net asset value
and notable distribution increases among several major holdings.
Special Purpose Acquisition Companies, during their pre-acquisition phase,
continue to serve as effective alternatives to T-bills and money market funds
within our Cash Management and Fixed Income strategies. While short-term
performance remains important, KIM's long-term track record is particularly
strong, especially in fixed income. Over the past five years, the Taxable
Fixed Income and Tax-Sensitive Fixed Income strategies have exceeded their
respective benchmarks by 6.6% and 3.7% per annum.
As outlined above CLIM and KIM's strategies continue to perform strongly and
demonstrate a "right to win" when competing for new business. Later in this
report, we provide the peer group rankings for our strategies which
demonstrate that all remain in either the first or second quartile for the
most recent five-year periods. We expect this will put us in a strong position
to grow as investor appetite for our areas of focus increase.
Figure 3. CLIG - FuM by line of business
CLIM 30 Jun 2022 30 Jun 2023 30 Jun 2024 30 Jun 2025
$m % of CLIM total % of CLIG total $m % of CLIM total % of CLIG total $m % of CLIM total % of CLIG total $m % of CLIM total % of CLIG total
Emerging Markets 3,703 64% 40% 3,580 61% 38% 3,394 53% 33% 3,674 54% 34%
International Equity 1,812 32% 20% 1,983 34% 21% 2,394 38% 23% 2,486 36% 23%
Opportunistic Value 193 3% 2% 244 4% 3% 251 4% 3% 309 5% 3%
Listed Private Equity* - 0% 0% - 0% 0% 174 3% 2% 218 3% 2%
Other** 83 1% 1% 97 1% 1% 104 2% 1% 150 2% 1%
CLIM total 5,791 100% 63% 5,904 100% 63% 6,317 100% 62% 6,837 100% 63%
KIM*** 30 Jun 2022 30 Jun 2023 30 Jun 2024 30 Jun 2025
$m % of KIM total % of CLIG total $m % of KIM total % of CLIG total $m % of KIM total % of CLIG total $m % of KIM total % of CLIG total
Growth Balanced 1,260 37% 14% 1,266 36% 13% 1,426 36% 14% 1,419 36% 13%
Conservative Balanced 1,080 32% 12% 1,085 31% 12% 1,103 28% 11% 1,143 29% 10%
Tax-Sensitive Fixed Income 389 11% 4% 405 11% 4% 693 18% 6% 528 13% 5%
Taxable Fixed Income 578 17% 6% 586 17% 6% 501 13% 5% 707 18% 7%
Cash Management 43 1% 0% 96 3% 1% 108 3% 1% 101 2% 1%
Equities 83 2% 1% 82 2% 1% 93 2% 1% 79 2% 1%
KIM total 3,433 100% 37% 3,520 100% 37% 3,924 100% 38% 3,977 100% 37%
CLIG total 9,224 100% 9,424 100% 10,241 100% 10,814 100%
*The Listed Private Equity strategy is to buy high quality private equity
funds at discounts in CEF structures traded in listed markets. It was
recategorised from Emerging Markets during the year, and the recategorisation
of existing client assets is not reflected in the Net Flows column for either
strategy.
**Includes Frontier and alternatives.
***KIM's FuM has been recategorised into underlying strategies.
FuM figures are rounded.
A breakdown of FuM by strategy is as follows:
Figure 4: Flows ($ million)
Jun-24 Inflows Outflows Net Flows Market & investment performance Jun-25
CLIM
Emerging Markets 3,394 91 (463) (372) 652 3,674
International Equity 2,394 122 (509) (387) 479 2,486
Opportunistic Value 251 26 - 26 32 309
Listed Private Equity* 174 60 (50) 10 34 218
Other** 104 40 - 40 6 150
CLIM total 6,317 339 (1,022) (683) 1,203 6,837
KIM***
Growth Balanced 1,426 36 (174) (138) 131 1,419
Conservative Balanced 1,103 45 (148) (103) 143 1,143
Tax-Sensitive Fixed Income 693 87 (108) (21) (144) 528
Taxable Fixed Income 501 58 (50) 8 198 707
Cash Management 108 10 (24) (14) 7 101
Equities 93 3 (26) (23) 9 79
KIM total 3,924 239 (530) (291) 344 3,977
CLIG total 10,241 578 (1,552) (974) 1,547 10,814
*The Listed Private Equity strategy is to buy high quality private equity
funds at discounts in CEF structures traded in listed markets. It was
recategorised from Emerging Markets during the year, and the recategorisation
of existing client assets is not reflected in the Net Flows column for either
strategy.
**Includes Frontier and alternatives.
***KIM's FuM has been recategorised into underlying strategies.
FuM figures are rounded.
Funds under Management (FuM) were $10.8 billion as at 30th June 2025, an
increase of 5.6% as compared to $10.2 billion as at 30th June 2024.
Net outflows were weighted more heavily to the first half of the financial
year when macroeconomic uncertainty rattled markets. The second half
withdrawals were characterised by some profit-taking after very strong
performance by our investment teams. This was particularly true in the
International Equity and EM strategies which saw net outflows of $387 million
and $372 million respectively. The Growth and Conservative Balanced strategies
(a combination of equity and fixed income) saw net outflows of $241 million
over this period, due primarily to client retirement cash needs. Net
investment outflows totalled $974 million across the Group during the
financial year.
New mandates included $60 million in the Listed Private Equity (LPE) strategy
and $70 million in the EM strategy, with another $46 million mandate confirmed
for August 2025 funding. Net inflows of circa $84 million combined across the
Opportunistic Value, LPE, alternatives and Taxable Fixed Income strategies
were also recorded.
Persistent discount volatility and strong outperformance of the Group's
strategies continue to be the focus of marketing efforts with allocators.
Figure 5: Net investment flows ($ million)
FY 2022 FY 2023 FY 2024 FY 2025
CLIM
Emerging Markets (316) (206) (424) (372)
International Equity 453 (51) 153 (387)
Opportunistic Value 1 35 (33) 26
Listed Private Equity* - - - 10
Other** 74 (6) (12) 40
CLIM total 212 (228) (316) (683)
KIM***
Growth Balanced (37) (129) (56) (138)
Conservative Balanced (49) (53) (50) (103)
Tax-Sensitive Fixed Income 105 36 89 (21)
Taxable Fixed Income (119) (3) 5 8
Cash Management (4) 31 8 (14)
Equities (6) (11) (0) (23)
KIM total (110) (129) (4) (291)
CLIG total 102 (357) (320) (974)
*The Listed Private Equity strategy is to buy high quality private equity
funds at discounts in CEF structures traded in listed markets. It was
recategorised from Emerging Markets during the year, and the recategorisation
of existing client assets is not reflected in the Net Flows column for either
strategy.
**Includes Frontier and alternatives.
***KIM's FuM has been recategorised into underlying strategies.
FuM figures are rounded.
FINANCIAL REVIEW
The Group income statement is presented in line with UK-adopted International
Accounting Standards on page 96 of the full report, but the financial
information is reviewed by the management and the Board as shown in the table
below. This makes it easier to understand the Group's operating results and
shows the profits which is used to calculate Group's profit-share.
Consolidated income for financial years ended 30th June
2025 2024 Change
$'000 $'000 %
Gross fee income 73,044 69,453 5.2%
Commissions (1,978) (1,811) 9.2%
Custody fees (1,296) (1,475) -12.1%
Net fee income 69,770 66,167 5.4%
Net interest income 1,095 1,079 1.5%
Total net income 70,865 67,246 5.4%
Salary, benefits and other related costs (18,328) (18,767) -2.3%
Other administrative expenses (8,659) (8,177) 5.9%
Depreciation and amortisation (961) (975) -1.4%
Overheads before profit-share, EIP, share option charge and gain on (27,948) (27,919) 0.1%
investments
Profit before profit-share, EIP, share options charge and gain on investments 42,917 39,327 9.1%
Profit-share (10,815) (10,617) 1.9%
EIP (1,297) (1,506) -13.9%
Share option charge 17 (35) -147.6%
Gain on investments 766 1,051 -27.2%
Profit before tax and amortisation on intangibles 31,588 28,220 11.9%
Amortisation of intangibles (5,599) (5,599) 0.0%
Profit before tax 25,989 22,621 14.9%
Tax (6,307) (5,506) 14.5%
Profit after tax 19,682 17,115 15.0%
Alternative Performance Measures
2025 2024 Change
$'000 $'000 %
Profit before tax 25,989 22,621 14.9%
Add back/(deduct):
Gain on investments (766) (1,051) -27.2%
Amortisation of intangibles 5,599 5,599 0.0%
Underlying profit before tax 30,822 27,169 13.4%
Tax (6,307) (5,506) 14.5%
Tax effect on adjustments (1,154) (1,083) 6.6%
Underlying profit after tax 23,361 20,580 13.5%
FuM
FuM as of 30th June 2025 increased by 5.6% ($0.6 billion) to $10.8 billion
from US$10.2 billion at the end of the last financial year. The increase was a
result of a combination of flows, market movements and performance. Refer to
Figure 3 on page 12 of the full report - FuM by line of business. Average FuM
for the year increased by 7.2% from $9.6 billion in FY 2024 to $10.3 billion
in FY 2025.
Alternative Performance Measures
The Directors use the following Alternative Performance Measures (APMs) to
evaluate the performance of the Group as a whole:
Earnings per share in pence - Earnings per share in US dollars as per the
income statement is converted to sterling using the average exchange rate for
the period. Refer to note 8 in the financial statements.
Underlying profit before tax - Profit before tax, adjusted for gain on
investments and amortisation of intangibles. This provides a measure of the
profitability of the Group for management's decision-making.
Underlying earnings per share in pence - CLIG shares are quoted on the London
Stock Exchange and the dividend is declared in sterling. Underlying profit
before tax, adjusted for tax as per income statement and tax effect of
adjustments, are divided by the weighted average number of shares in issue as
at the period end. Underlying earnings per share is converted to sterling
using the average exchange rate for the period. Refer to note 8 in the
financial statements.
Group income statement and statement of comprehensive income
Revenue
The Group's gross revenue comprises of management fees charged as a percentage
of FuM. The Group's gross revenue increased by 5.2% YoY to $73.0 million
(2024: $69.5 million). The increase in revenue is due to higher average FuM
for the year, offset by general fee erosion due to changes in fee rates,
product and investor mix.
Commissions payable of $2.0 million (2024: $1.8 million) relate to fees due to
US-registered investment advisers and have increased slightly over the year as
a result of an increase in gross revenue.
The Group's net fee income, after custody charges of $1.3 million (2024: $1.5
million), increased by 5.4% to $69.8 million (2024: $66.2 million). The
Group's average net fee margin for FY 2025 was c.67bps as compared to c.69bps
for FY 2024.
Net interest income is made up of interest earned on bank deposits, short-term
investments in money market instruments and cash management products offset by
interest paid on lease obligations and others. Net interest income increased
by 1.5% as compared to the previous year. Refer to page 106 of the full report
for our lease accounting policy.
Costs
Overheads before profit share, EIP, share option charge and gain on
investments for FY 2025 totalling $27.9 million (2024: $27.9 million) were in
line with last year. These costs would have been lower by c.1% had it not been
for US dollar weakening against sterling by an average of 3% as c.29% of the
Group's overheads are incurred in sterling.
The Group's cost/income ratio, which is arrived at by comparing overheads
before profit share, EIP, share option charge and gain on investments with net
fee income, reduced by 2.1% to 40.1% in FY 2025 as compared to 42.2% in FY
2024. This was a result of continued cost discipline and maintaining overhead
costs in line with FY 2024, along with an increase in net revenue for the
year.
The largest component of overheads continues to be employee-related costs.
Salary, benefits and other related costs reduced by 2.3% over the last year to
$18.3 million (2024: $18.8 million), which was due to both a reduction and a
change in the headcount mix, which was partly offset by inflationary salary
and associated cost increases with effect from 1st July 2024 and a subsequent
increase in employer national insurance contributions in the UK, effective
from 1st April 2025. The average number of employees for the year was 113 as
compared to 118 for the prior year. The number of employees as at 30th June
2025 was 110 (2024: 118).
The net savings in employee-related costs during the year were offset by an
increase in other administrative expenses. Other administrative expenses for
the current year were 5.9% higher at $8.7 million as compared to $8.2 million
for the last year. The increase primarily relates to higher legal and
professional fees (including costs related to CLIG's qualification to trade on
the OTCQX ® Best Market), additional marketing resources, an increase in
travel costs to meet clients and prospects, and the impact of US dollar
weakening over costs denominated in sterling.
Profit before profit-share, EIP, share options charge and gain on investments
increased 9.1% YoY to $42.9 million as compared to $39.3 million for FY 2024.
Despite this increase, total variable profit-share for FY 2025 only increased
marginally to $10.8 million as compared with $10.6 million in FY 2024.
The Group's Employee Incentive Plan (EIP) charge for FY 2025 also fell by $0.2
million to $1.3 million as compared to the FY 2024 charge of $1.5 million.
Overall, despite sterling strengthening against the US dollar by an average of
3%, generic inflationary increases on the cost base, higher legal and
professional fees, marketing and travel costs, the Group's total
administrative expenses were marginally lower at $45.6 million for the year.
Gain on investments
Investment gains of $0.8 million (2024: gain of $1.1 million) relate to the
realised and unrealised gains/(losses) on the Group's seed investments and
other investments in Special Purpose Acquisition Companies (SPACs).
Amortisation of intangibles
Intangible assets relating to direct customer relationships, distribution
channels and KIM's trade name recognised on the merger with KIM are being
amortised over seven to fifteen years (refer to note 1.7 of the financial
statements) and have resulted in an amortisation charge of $5.6 million for
the year (2024: $5.6 million). Deferred tax liability on these intangibles as
of 30th June 2025 amounted to $6.5 million (2024: $7.9 million) based on the
relevant tax rate, which will unwind over the useful economic life of the
associated assets. Goodwill amounting to $90.1 million was also initially
recognised on the completion of the merger. Refer to note 9 for more details.
Taxation
Profit before tax of $26.0 million (2024: $22.6 million), after a corporation
tax charge of $6.3 million (2024: $5.5 million), with an effective rate of 24%
(2024: 24%), resulted in a 15% increase in profit after tax of $19.7 million
(2024 $17.1 million), which is all attributable to the equity shareholders of
the Company.
Underlying profits
Underlying profit before tax for the year at $30.8 million was 13.4% higher
than the $27.2 million achieved in FY 2024. Underlying profit after tax for
the year was 13.5% higher at $23.4 million as compared to $20.6 million for FY
2024, which was mainly due to the higher net fee income whilst maintaining our
operating costs in line with FY 2024.
Group statement of financial position
The Group's financial position continues to be strong and liquid, with cash
resources of $35.5 million as at 30th June 2025, compared with $33.7 million
as at 30th June 2024.
The Group had invested $2.5 million in seeding the Global Equity CEF in
December 2021 and $2.5 million in SPACs in March 2022. As at the end of June
2025, these investments were valued at $6.5 million (2024: $5.7 million).
Total realised gains recognised on its investments and its SPACs products were
$0.2 million (2024: gain of $0.9 million including the redemption of its REIT
investments) and unrealised gains of $0.6 million (2024: gain of $0.2 million)
were taken to the income statement.
The Global Equity CEF fund is assessed to be under the Group's control and is
thus consolidated using accounts drawn up as of 30th June 2025. There were no
third-party investors, collectively known as the non-controlling interest
(NCI) in these funds as of 30th June 2025 (2024: nil).
The Group's right-of-use assets (net of depreciation) amounted to $4.4 million
as of 30th June 2025 as compared with $5.1 million as of 30th June 2024.
The Employee Benefit Trust (EBT) purchased 453,500 shares (2024: 318,000
shares) at a cost of $2.1 million (2024: $1.3 million) in preparation for the
annual EIP awards due at the end of October 2025.
The EIP has had a consistently high level of participation each year since
inception (>60% of Group employees), with the first tranche of awards
vesting in October 2018. During the year 36.8% (2024: 35.8%) of the shares
vesting were sold to help cover the employees' resulting tax liabilities,
leading to a healthy 63.2% (2024: 64.2%) share retention within the Group.
In addition, Directors and employees exercised 59,500 (2024: 47,400) options
over shares held by the EBT, raising $0.3 million (2024: $0.1 million) which
was used to pay down part of the loan to the EBT.
Dividend
Dividend policy
This policy was introduced in 2014 and is assessed for appropriateness on an
annual basis. No changes have been proposed during the current financial year.
It was designed to incorporate the required flexibility to deal with the
potential volatility of CLIG's income. This is going to be applied with
flexibility, with approximately one-third payable as an interim dividend and
two-thirds as final dividend.
Details are as follows:
• Dividend cover ratio of c.1.2 times (1.2x) of the underlying earnings on a
rolling five-year basis.
• It will be assessed for appropriateness annually.
• This Policy specifically takes into account the implicit volatility in
CLIG's earnings as a result of its significant present exposure to emerging
markets.
• While the cover is targeted as 1.2x of the underlying earnings, this will
continue to be applied flexibly and the annual dividend will approximate to
this cover on a rolling five-year average.
• The Board will take into account both the CLIG budget for the next year
and market outlook when determining the current year's dividend.
Dividends paid during the year totalled $20.9 million (2024: $19.9 million).
The total dividend of 33p per share comprised of the 22p per share final
dividend for FY 2024 and the 11p per share interim dividend for the current
year (2024: 22p per share final for FY 2023 and 11p per share interim
dividend).
We have provided an illustrative framework on our website at https://clig.com/
dividend-cover/ to enable interested parties to calculate our post-tax profits
based upon some key assumptions. The dividend cover chart shows the quarterly
estimated cost of a maintained dividend against actual post-tax profits for
last year, the current year and the assumed post-tax profit for next financial
year based upon assumptions included in the chart.
The Group is well capitalised, and its regulated entities complied at all
times with their local regulatory capital requirements. In the UK, the Group's
principal operating subsidiary, CLIM, is regulated by the FCA. As required
under the Capital Requirements Directive, the underlying risk management
controls and capital position are disclosed on CLIM's website www.citlon.com
(http://www.citlon.com) .
Currency exposure
While Group's revenue and the bulk of its expenses are now aligned in US
dollars, c.29% of Group's overheads are incurred in sterling and to a lesser
degree Singapore dollars, that are subject to currency rate fluctuations
against US dollars.
The Group's currency exposure also relates to its subsidiaries' non-US dollar
assets and liabilities, which are mostly in sterling. The exchange rate
differences arising on their translation into US dollars for reporting
purposes each month is recognised in the income statement.
Viability statement
In accordance with the provisions of the UK Corporate Governance Code, the
Directors have assessed the viability of the Group over a three-year period,
considering the Group's current position and prospects, Internal Capital
Adequacy and Risk Assessment (ICARA) and the potential impact of principal
risks and how they are managed as detailed in the risk management report on
pages 41 to 42 of the full report.
Period of assessment
While the Directors have no reason to believe that the Group will not be
viable over a longer period, given the uncertainties still associated with the
global economic and political factors and their potential impact on financial
markets, any longer time horizon assessments are subject to more uncertainty
due to external factors.
Considering the recommendations of the Financial Reporting Council in their
2021 thematic review publication, the Board has therefore determined that a
three-year period to 30th June 2028 constitutes an appropriate and prudent
timeframe for its viability assessment. This three-year view is also more
aligned to the Group's detailed stress testing.
Assessment of viability
As part of its viability statement, the Board has conducted a robust
assessment of the principal risks facing the Group, including those that would
threaten its business model, future performance, solvency, or liquidity. This
assessment includes continuous monitoring of both internal and external
environments to identify new and emerging risks, which in turn are analysed to
determine how they can best be mitigated and managed.
The primary risk is the potential for loss of FuM as a result of poor
investment performance, reputational damage, client redemptions, breach of
mandate guidelines or market volatility. The Directors review the principal
risks regularly and consider the options available to the Group to mitigate
these risks so as to ensure the ongoing viability of the Group is sustained.
The ICARA is reviewed by the Board and incorporates stress testing based on
loss of revenue on the Group's financial position over a three-year period.
The Group has performed additional stress tests using several different
scenario levels, over a three-year period which are significantly more severe
than our acceptable risk appetite, which include:
•a significant fall in FuM;
•a significant fall in net fee margin; and
•combined stress (significant falls both in FuM and net fee margin).
Having reviewed the results of the stress tests, the Directors have concluded
that the Group would have sufficient resources in the stressed scenarios and
that the Group's ongoing viability would be sustained. The stress scenario
assumptions would be reassessed, if necessary, over the longer term. An
example of a mitigating action in such scenarios would be a reduction in costs
along with a reduction in dividend.
Based on the results of this analysis, the Board confirms it has a reasonable
expectation that the Company and the Group will be able to continue in
operation and meet their liabilities as they fall due over the next three
years.
On that basis, the Directors also considered it appropriate to prepare the
financial statements on the going concern basis as set out on page 81 of the
full report.
FINANCIAL STATEMENTS
CONSOLIDATED INCOME STATEMENT
FOR THE YEAR ENDED 30TH JUNE 2025
Year to Year to
30th June 2025 30th June 2024
Note $'000 $'000
Revenue
Gross fee income 2 73,044 69,453
Commissions payable (1,978) (1,811)
Custody fees payable (1,296) (1,475)
Net fee income 69,770 66,167
Administrative expenses
Employee costs 30,423 30,925
Other administrative expenses 8,659 8,177
Depreciation and amortisation 6,560 6,574
(45,642) (45,676)
Operating profit 3 24,128 20,491
Finance income 4 1,490 1,460
Finance expense 5 (395) (381)
Gain on investments 6 766 1,051
Profit before taxation 25,989 22,621
Income tax expense 7 (6,307) (5,506)
Profit for the period 19,682 17,115
Profit attributable to:
Equity shareholders of the parent 19,682 17,115
Basic earnings per share (cents) 8 40.1 35.1
Diluted earnings per share (cents) 8 39.4 34.4
CONSOLIDATED AND COMPANY STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30TH JUNE 2025
Year to Year to
30th June 2025 30th June 2024
$'000 $'000
Profit for the period 19,682 17,115
Other comprehensive income: Items that may be subsequently reclassified to
profit or loss if specific conditions are met
Foreign currency translation differences - (1)
Total comprehensive income for the period 19,682 17,114
Attributable to:
Equity shareholders of the parent 19,682 17,114
CONSOLIDATED AND COMPANY STATEMENT OF FINANCIAL POSITION
30TH JUNE 2025
Group Company
30th June 2025 30th June 2024 30th June 2025 30th June 2024
Note $'000 $'000 $'000 $'000
Non-current assets
Property and equipment 917 1,128 157 227
Right-of-use assets 4,418 5,076 699 925
Intangible assets 9 117,296 122,853 62 20
Other financial assets 6,506 5,750 134,203 134,283
Deferred tax asset 1,737 1,879 287 313
130,874 136,686 135,408 135,768
Current assets
Trade and other receivables 8,855 8,380 6,574 3,654
Current tax receivable 662 167 3,360 2,426
Cash and cash equivalents 35,492 33,738 16,550 20,381
45,009 42,285 26,484 26,461
Current liabilities
Trade and other payables (10,308) (10,432) (4,461) (5,519)
Lease liabilities (585) (526) (318) (284)
Creditors, amounts falling due within one year (10,893) (10,958) (4,779) (5,803)
Net current assets 34,116 31,327 21,705 20,658
Total assets less current liabilities 164,990 168,013 157,113 156,426
Non-current liabilities
Lease liabilities (4,705) (5,207) (725) (964)
Deferred tax liability (7,821) (9,162) (216) (256)
Net assets 152,464 153,644 156,172 155,206
Capital and reserves
Share capital 10 644 644 644 644
Share premium account 2,866 2,866 2,866 2,866
Merger relief reserve 10 128,984 128,984 128,984 128,984
Investment in own shares (8,795) (9,227) (8,795) (9,227)
Share option reserve 128 187 128 187
EIP share reserve 1,683 2,046 1,683 2,046
Foreign currency translation reserve (1,011) (1,011) 466 466
Capital redemption reserve 33 33 33 33
Retained earnings 27,932 29,122 30,163 29,207
Attributable to:
Equity shareholders of the parent 152,464 153,644 156,172 155,206
Total equity 152,464 153,644 156,172 155,206
As permitted by section 408 of the Companies Act 2006, the income statement of
the Parent Company is not presented as part of these financial statements. The
Parent Company's profit for the financial period amounted to $21,858k (2024:
$20,445k).
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
30TH JUNE 2025
Foreign currency translation reserve Capital redemption reserve Total attributable to share-
Share premium account Investment in own shares Share option reserve EIP $'000 $'000 holders
Share capital $'000 Merger relief reserve $'000 $'000 Share Retained earnings $'000
$'000 $'000 reserve $'000
$'000
As at 1st July 2023 644 2,866 128,984 (10,301) 170 2,200 (1,010) 33 31,882 155,468
Profit for the period
- - - - - - - - 17,115 17,115
Other comprehensive income - - - - - - (1) - - (1)
Total comprehensive income - - - - - - (1) - 17,115 17,114
Transactions with owners
Share option exercise - - - 154 (9) - - - 9 154
Purchase of own shares - - - (1,315) - - - - - (1,315)
Share-based payment - - - - 35 1,039 - - - 1,074
EIP vesting/forfeiture - - - 2,235 - (1,193) - - - 1,042
Deferred tax on share options - - - - (9) - - - (22) (31)
Current tax on share options - - - - - - - - 27 27
Dividends paid - - - - - - - - (19,889) (19,889)
Total transactions with owners - - - 1,074 17 (154) - - (19,875) (18,938)
As at 30th June 2024 644 2,866 128,984 (9,227) 187 2,046 (1,011) 33 29,122 153,644
Profit for the period - - - - - - - - 19,682 19,682
Other comprehensive income - - - - - - - - - -
Total comprehensive income - - - - - - - - 19,682 19,682
Transactions with owners
Share option exercise - - - 278 (42) - - - 42 278
Purchase of own shares - - - (2,110) - - - - - (2,110)
Share-based payment - - - - (17) 888 - - - 871
EIP vesting/forfeiture - - - 2,264 - (1,251) - - - 1,013
Deferred tax on share options - - - - - - - - (4) (4)
Current tax on share options - - - - - - - - 8 8
Dividends paid - - - - - - - - (20,918) (20,918)
Total transactions with owners - - - 432 (59) (363) - - (20,872) (20,862)
As at 30th June 2025 644 2,866 128,984 (8,795) 128 1,683 (1,011) 33 27,932 152,464
COMPANY STATEMENT OF CHANGES IN EQUITY
30TH JUNE 2025
Foreign currency translation reserve
Share premium account Share option reserve EIP $'000 Capital redemption reserve Total attributable to shareholders
$'000 Merger reserve Investment in own shares $'000 share $'000 Retained earnings $'000
Share capital $'000 $'000 reserve $'000
$'000 $'000
As at 1 July 2023 644 2,866 128,984 (10,301) 161 2,200 468 33 28,658 153,713
Profit for the period - - - - - - - - 20,445 20,445
Other comprehensive income - - - - - - - - - -
Total comprehensive income - - - - - - - - 20,445 20,445
Transactions with owners
Share option exercise - - - 154 (9) - - - (1) 144
Purchase of own shares - - - (1,315) - - - - - (1,315)
Share-based payment - - - - 35 1,039 - - - 1,074
EIP vesting/forfeiture - - - 2,235 - (1,193) - - - 1,042
Deferred tax on share options - - - - - - - - (6) (6)
Foreign exchange translation - - - - - - (2) - - (2)
Dividends paid - - - - - - - - (19,889) (19,889)
Total transactions with owners - - - 1,074 26 (154) (2) - (19,896) (18,952)
As at 30th June 2024 644 2,866 128,984 (9,227) 187 2,046 466 33 29,207 155,206
Profit for the period - - - - - - - - 21,858 21,858
Other comprehensive income - - - - - - - - - -
Total comprehensive income - - - - - - - - 21,858 21,858
Transactions with owners
Share option exercise - - - 278 (42) - - - 16 252
Purchase of own shares - - - (2,110) - - - - - (2,110)
Share-based payment - - - - (17) 888 - - - 871
EIP vesting/forfeiture - - - 2,264 - (1,251) - - - 1,013
Dividends paid - - - - - - - - (20,918) (20,918)
Total transactions with owners - - - 432 (59) (363) - - (20,902) (20,892)
As at 30th June 2025 644 2,866 128,984 (8,795) 128 1,683 466 33 30,163 156,172
CONSOLIDATED AND COMPANY CASH FLOW STATEMENT
FOR THE YEAR ENDED 30TH JUNE 2025
Group Company
30th June 2025 30th June 2024 30th June 2025 30th June 2024
Note $'000 $'000 $'000 $'000
Cash flow from operating activities
Profit before taxation 25,989 22,621 1,405 1,675
Adjustments for:
Depreciation of property and equipment 285 293 89 97
Depreciation of right-of-use assets 658 672 226 227
Amortisation of intangible assets 5,617 5,609 18 10
Share-based payment charge (17) 35 (4) 4
EIP-related charge 1,298 1,438 432 581
Gain on investments 6 (766) (1,051) (12) (323)
Interest receivable 4 (1,490) (1,460) (750) (898)
Interest payable 5 8 24 8 24
Interest payable on leased assets 5 387 357 50 17
Translation adjustments 73 29 (164) 149
Cash generated from operations before changes
in working capital 32,042 28,567 1,298 1,563
(Increase)/decrease in trade and other receivables (1,010) (302) (779) 880
Increase/(decrease) in trade and other payables 807 365 910 3,038
Cash generated from operations 31,839 28,630 1,429 5,481
Interest received 4 1,490 1,460 750 898
Interest payable 5 (8) (24) (8) (24)
Interest paid on leased assets 5 (387) (357) (50) (17)
Taxation paid (7,781) (8,122) (3,555) (3,857)
Net cash generated from/(used in) operating activities 25,153 21,587 (1,434) 2,481
Cash flow from investing activities
Dividends received from subsidiaries - - 20,800 19,150
Purchase of property and equipment and intangibles (134) (500) (79) (44)
Purchase of non-current financial assets (2,789) (4,594) - -
Proceeds from sale of current financial assets 2,791 9,997 - 5,203
Net cash generated from/(used in) investing activities (132) 4,903 20,721 24,309
Cash flow from financing activities
Ordinary dividends paid 11 (20,918) (19,889) (20,918) (19,889)
Purchase of own shares by employee share option trust (2,110) (1,315) (2,110) (1,315)
Proceeds from sale of own shares by employee
benefit trust 295 154 295 154
Payment of lease liabilities (539) (231) (295) (48)
Net cash used in financing activities (23,272) (21,281) (23,028) (21,098)
Net increase/(decrease) in cash and cash equivalents 1,749 5,209 (3,741) 5,692
Cash and cash equivalents at start of period 33,738 28,569 20,381 14,779
Effect of exchange rate changes 5 (40) (90) (90)
Cash and cash equivalents at end of period 35,492 33,738 16,550 20,381
NOTES TO THE FINANCIAL STATEMENTS
The contents of this preliminary announcement have been extracted from the
Company's Annual Report, which is currently in print and will be distributed
within the week. The information shown for the years ended 30th June 2025 and
30th June 2024 do not constitute statutory accounts and has been extracted
from the full accounts for the years ended 30th June 2025 and 30th June 2024.
The reports of the auditors on those accounts were unqualified and did not
contain adverse statements under sections 498(2) or (3) of the Companies Act
2006. The accounts for the year ended 30th June 2024 have been filed with the
Registrar of Companies. The accounts for the year ended 30th June 2025 will be
delivered to the Registrar of Companies in due course.
1. SIGNIFICANT ACCOUNTING POLICIES
City of London Investment Group PLC (the Company) is a public limited company
which listed on the London Stock Exchange on 29th October 2010 and is
domiciled and incorporated in the United Kingdom under the Companies Act 2006.
1.1 Basis of preparation
The financial statements have been prepared in accordance with UK-adopted
International Accounting Standards.
The Group financial statements have been prepared under the historical cost
convention, except for certain financial assets held by the Group that are
reported at fair value. The Group and Company financial statements have been
prepared on a going concern basis.
The principal accounting policies adopted are set out below and have, unless
otherwise stated, been applied consistently to all periods presented in these
financial statements.
1.2 New or amended accounting standards and interpretations
The Group has adopted all the new or amended accounting standards and
interpretations issued by the International Accounting Standards Board (IASB)
that are mandatory for the current reporting period. Any new or amended
accounting standards that are not mandatory have not been early adopted.
There are no new or amended standards and interpretations that are issued, but
not yet effective, up to the date of issuance of the Group's consolidated
financial statements that would be expected to have a material impact on the
Group's consolidated financial statements when they become effective.
1.3 Accounting estimates and assumptions
The preparation of these financial statements in conformity with UK-adopted
International Accounting Standards requires management to make estimates and
judgments that affect the application of policies and reported amounts of
assets and liabilities, income and expenses. Whilst estimates are based on
management's best knowledge and judgement using information and financial data
available to them, the actual outcome may differ from those estimates.
The most significant areas of the financial statements that are subject to the
use of estimates and judgments are noted below:
Impairment of Goodwill
The recognition of goodwill in a business combination and subsequent
impairment assessments are based on significant accounting estimates. Note 9
details our estimates and assumptions in relation to the impairment assessment
of goodwill.
1.4 Investment in subsidiaries
Investments in subsidiaries in the Company only accounts are stated at cost
less, where appropriate, provision for impairment.
1.5 Basis of consolidation
The consolidated financial statements are based on the financial statements of
the Company and all of its subsidiary undertakings. The Group's subsidiaries
are those entities which it directly or indirectly controls. Control over an
entity is evidenced by the Group's ability to exercise its power in order to
affect any variable returns that the Group is exposed to through its
involvement with the entity. The consolidated financial statements also
incorporate the results of the business combination using the acquisition
method. The acquiree's identifiable net assets are initially recognised at
their fair values at the acquisition date. The results of the acquired
business are included in the consolidated statement of comprehensive income
from the date on which control is obtained.
When assessing whether to consolidate an entity, the Group evaluates a range
of control factors as defined under IFRS 10 Consolidated financial statements,
namely:
•the purpose and design of the entity;
•the relevant activities and how these are determined;
•whether the Group's rights result in the ability to direct the relevant
activities;
•whether the Group has exposure or rights to variable returns; and
•whether the Group has the ability to use its power to affect the amount of
its returns.
Subsidiaries are consolidated from the date on which control is transferred to
the Group and are deconsolidated from the date that control ceases.
The Group's subsidiary undertakings as at 30th June 2025 are detailed below:
City of London Investment Group PLC holds a controlling interest in the
following:
Controlling Country of
Subsidiary undertakings Activity interest incorporation
City of London Investment Management Company Limited Management of funds 100% UK
City of London US Investments Limited Holding company 100% UK
Karpus Management Inc. (aka Karpus Investment Management) Management of funds 100% USA
Global Equity CEF Fund Delaware Statutory Trust Fund 100% USA
City of London Investment Management Company Limited holds 100% of the
ordinary shares in the following:
City of London Investment Management (Singapore) PTE Ltd Management of funds Singapore
City of London Latin America Limited Dormant company UK
City of London US Investments Limited holds 100% of the ordinary shares in the
following:
City of London US Services Limited Service company UK
The registered addresses of the subsidiary companies are as follows:
City of London Investment Management Company Limited 77 Gracechurch Street, London EC3V 0AS, UK
City of London US Investments Limited
City of London US Services Limited
City of London Latin America Limited
City of London Investment Management Company (Singapore) PTE Ltd 20 Collyer Quay, #10-04, Singapore 049319
Karpus Management Inc. 183 Sully's Trail, Pittsford, New York 14534, USA
Global Equity CEF Fund 4005 Kennett Pike, Suite 250, Greenville, DE 19807, USA
1.6 Property and equipment
For all property and equipment depreciation is calculated to write off their
cost to their estimated residual values by equal annual instalments over the
period of their estimated useful lives, which are considered to be:
Short leasehold property improvements-over the remaining life of the lease
Furniture and equipment - four to ten years
Computer and telephone equipment - four to ten years
1.7 Intangible assets
Intangible assets acquired separately are initially recognised at cost.
Intangible assets acquired through a business combination other than goodwill,
are initially measured at fair value at the date of the acquisition.
(i) Goodwill
Goodwill arises through a business combination. Goodwill represents the excess
of the purchase consideration paid over the fair value of the identifiable
assets, liabilities and contingent liabilities of the business at the date of
the acquisition. Goodwill is measured at cost less accumulated impairment
losses. Goodwill on acquisition is allocated to a cash generating unit (CGU)
that is expected to benefit from the acquisition, for the purpose of
impairment testing. The CGU to which goodwill is allocated represents the
lowest level at which goodwill is monitored for internal management purposes.
A CGU is identified as a group of assets generating cash inflows which are
independent from cash inflows from other Group cash generating assets and are
not larger than the Group's operating segments.
(ii) Direct customer relationships and distribution channels
The fair values of direct customer relationships and distribution channels
acquired in the business combination have been measured using a multi-period
excess earnings method. These are amortised on a straight line basis over the
period of their expected benefit, being a finite life of ten years for direct
customer relationships and a finite life of seven years for distribution
channels.
(iii) Trade name
The fair value of the trade name acquired in the business combination has been
measured using a relief from royalty method. This is amortised on a straight
line basis over the period of its expected benefit, being a finite life of
fifteen years.
(iv) Software licences
Software licences are capitalised at cost and amortised on a straight line
basis over the useful life of the asset. Costs are capitalised on the basis of
the costs incurred to acquire and bring into use the specific software. Costs
also include directly attributable overheads. The estimated useful life over
which the software is depreciated is between four to ten years. Software
integral to a related item of hardware equipment is accounted for as property
and equipment. Costs associated with maintaining computer software programs
are expensed to the income statement as incurred.
1.8 Impairment of goodwill and other assets
Goodwill arising on acquisition is not subject to annual amortisation and is
tested annually for impairment, or more frequently if changes in circumstances
indicate a possible impairment. The Group annually reviews the carrying value
of its CGU to ensure that those assets have not suffered from any impairment
loss. The review compares the recoverable amount of the CGU to which goodwill
is allocated against its carrying amount. Where the recoverable amount is
higher than the carrying amount, no impairment is required. The recoverable
amount is defined as the higher of (a) fair value less costs of disposal or
(b) value in use, which is based on the present value of future cash flows
expected to derive from the CGU.
For the purposes of assessing impairment, assets are grouped at the lowest
levels for which there are separately identifiable cash inflows which are
largely independent of the cash inflows from other assets or groups of assets
(cash-generating units).
Other assets are tested for impairment whenever management identifies any
indicators of impairment.
Any impairment loss is recognised immediately through the income statement.
1.9 Business Combinations
The Group accounts for business combinations using the acquisition method. A
business combination is determined where in a transaction, the asset acquired
and the liabilities assumed constitute a business.
The consideration transferred on the date of the transaction is measured at
fair value as are the identifiable assets acquired and liabilities assumed.
Intangible assets are recognised separately from goodwill at the acquisition
date only when they are identifiable.
1.10 Financial instruments
Financial instruments are only recognised in the financial statements and
measured at fair value when the Group becomes party to the contractual
provisions of the instrument.
Under IFRS 9 Financial Instruments, financial assets are classified as either:
•amortised at cost;
•at fair value through the profit or loss; or
•at fair value through other comprehensive income.
Financial liabilities must be classified at fair value through profit or loss
or at amortised cost.
The Group's investments in securities are classified as financial assets or
liabilities at fair value through profit or loss. Such investments are
initially recognised at fair value, and are subsequently re-measured at fair
value, with any movement recognised in the income statement. The fair value of
the Group's investments is determined as follows:
•Shares traded in active markets - priced using the quoted closing price
•Unlisted seed capital investments in funds - priced using net asset value
at the reporting date
The consolidated Group assesses and would recognise a loss allowance for
expected credit losses on financial assets which are measured at amortised
cost. The measurement of the loss allowance depends upon the consolidated
entity's assessment at the end of each reporting period as to whether the
financial instrument's credit risk has increased significantly since initial
recognition, based on reasonable and supportable information that is
available, without undue cost or effort to obtain.
Where there has not been a significant increase in exposure to credit risk
since initial recognition, a twelve-month expected credit loss allowance is
estimated. This represents a portion of the asset's lifetime expected credit
losses that is attributable to a default event that is possible within the
next twelve months. Where a financial asset has become credit impaired or
where it is determined that credit risk has increased significantly, the loss
allowance is based on the asset's lifetime expected credit losses. The amount
of expected credit loss recognised is measured on the basis of the probability
weighted present value of anticipated cash shortfalls over the life of the
instrument discounted at the original effective interest rate.
Under the expected credit loss model, impairment losses are recorded if there
is an expectation of credit losses, even in the absence of a default event.
This model is applicable to assets amortised at cost or at fair value through
other comprehensive income. The assets on the Group's balance sheet to which
the expected loss applies to are fees receivable. At the end of each reporting
period, the Group assesses whether the credit risk of these trade receivables
has increased significantly since initial recognition, based on reasonable and
supportable information that is available, without undue cost or effort to
obtain.
1.11 Cash and cash equivalents
Cash and cash equivalents comprise cash in hand and on-demand deposits with an
original maturity of three months or less from inception, and other short-term
highly liquid investments that are readily convertible to a known amount of
cash and are subject to an insignificant risk of changes in value.
1.12 Trade payables
Trade payables are measured at initial recognition at fair value and
subsequently measured at amortised cost.
1.13 Current and deferred taxation
The Group provides for current tax according to the tax regulations in each
jurisdiction in which it operates, using tax rates that have been enacted or
substantively enacted by the reporting date.
Deferred tax is provided using the balance sheet liability method, providing
for temporary differences between the carrying amounts of assets and
liabilities for financial reporting purposes and the amounts used for tax
purposes. However, deferred tax is not accounted for if it arises from
goodwill or the initial recognition (other than in a business combination) of
other assets or liabilities in a transaction that affects neither the
accounting nor the taxable profit or loss.
Deferred tax liabilities are generally recognised for all taxable temporary
differences and deferred tax assets are recognised to the extent that it is
probable that taxable profits will be available against which deductible
temporary differences can be utilised.
The carrying amount of deferred tax assets is reviewed at the end of each
reporting period and reduced to the extent that it is no longer probable that
sufficient taxable profits will be available to allow all or part of the asset
to be recovered.
Deferred tax is calculated at the tax rates that are expected to apply in the
period when the liability is settled or the asset realised. The tax rates used
are those that have been enacted, or substantively enacted, by the end of the
reporting period. Deferred tax is charged or credited to the income statement,
except when it relates to items charged or credited directly as part of other
comprehensive income, in which case the deferred tax is also dealt with as
part of other comprehensive income. For share-based payments, where the
estimated future tax deduction exceeds the amount of the related cumulative
remuneration expense, the excess deferred tax is recognised directly in
equity.
1.14 Share-based payments
The Company operates an Employee Incentive Plan (EIP) which is open to all
employees in the Group. Awards are made to participating employees over shares
under the EIP where they have duly waived an element of their annual
profit-share before the required waiver date, in general before the start of
the relevant financial year.
The awards are made up of two elements: Deferred Shares and Bonus Shares. The
Deferred Shares represent the waived profit-share and the Bonus Shares
represent the additional award made by the Company as a reward for
participating in the EIP. Awards will vest (i.e. no longer be forfeitable)
over a three-year period with one-third vesting each year for all employees,
other than Executive Directors of CLIG. Awards granted from October 2021
onwards for the Executive Directors of CLIG will vest (i.e. no longer be
forfeitable) over a five-year period with one-fifth vesting each year, and
from October 2024 onwards over a five-year period with one-third vesting each
year for the third, fourth and fifth anniversaries following grant. Should an
employee leave within the vesting period, the unvested portion of the waived
profit-share element is settled in cash as per the EIP rules.
The full cost of the Deferred Shares is recognised in the year to which the
profit-share relates. The value of the Bonus Shares is expensed on a straight
line basis over the period from the date the employees elect to participate to
the date that the awards vest. This cost is estimated during the financial
year and at the point when the actual award is made, the share-based payment
charge is re-calculated and any difference is taken to the profit or loss.
The Company operates an Employee Share Option Plan. The fair value of the
employee services received in exchange for share options is recognised as an
expense. The fair value has been calculated using the Black-Scholes pricing
model, and is being expensed on a straight line basis over the vesting period,
based on the Company's estimate of the number of shares that will actually
vest. At the end of the three-year period when the actual number of shares
vesting is known, the share-based payment charge is re-calculated and any
difference is taken to the profit or loss.
1.15 Revenue recognition
Revenue is recognised within the financial statements based on the services
that are provided in accordance with current investment management agreements
(IMAs). The fees are charged as a percentage of Funds under Management. The
performance obligations encompassed within these agreements are based on
daily/monthly asset management of funds. Payment terms are monthly/quarterly
in advance or in arrears. The Group has an enforceable right to the payment of
these fees for services provided, in accordance with the underlying IMAs.
For each contract, the Group: identifies the contract with a customer;
identifies the performance obligations in the contract; determines the
transaction price which takes into account estimates of variable consideration
and the time value of money; allocates the transaction price to the separate
performance obligations on the basis of the relative stand-alone selling price
of each distinct service to be delivered; and recognises revenue when or as
each performance obligation is satisfied in a manner that depicts the transfer
to the customer of services promised.
1.16 Commissions payable
A portion of the Group's revenue is subject to commissions payable under third
party marketing agreements. Commissions payable are recognised in the same
period as the revenue to which they relate.
1.17 Foreign currency translation
The functional and presentational currency of the company and all its
subsidiaries is US dollars.
Transactions in currencies other than the relevant Group entity's functional
currency are recorded at the rates of exchange prevailing on the dates of the
transactions. At each balance sheet date, monetary assets and liabilities that
are denominated in foreign currencies are retranslated at the rates prevailing
on the balance sheet date. Gains and losses arising on retranslation are
included in the profit or loss for the year.
1.18 Leases
The total outstanding lease cost, discounted at the Group's weighted average
incremental borrowing rate to its present value, is shown as a lease liability
in the statement of financial position. The payment of the lease charge is
allocated between the lease liability and an interest charge in the income
statement.
On recognition of the lease liability, the associated asset is shown as a
right-of-use asset. This is further adjusted for any lease payments made prior
to adoption and any future restoration costs as implicit within the lease
contract. The resulting total value of the right-of-use asset is depreciated
on a straight line basis over the term of the lease period.
The Group re-measures the lease liability whenever:
•there is a change in the lease term;
•there is a change in the lease payments; and
•a lease contract is modified and the lease modification is not accounted
for as a separate lease.
Where there is a change in the lease term or lease payments, the lease
liability is re-measured by discounting the revised lease payments at the
current or revised discount rate depending on the nature of the event. Where
the lease liability is re-measured, a corresponding adjustment is made to the
right-of-use assets.
Where extension/termination options exists within a lease, the Group would
assess at the lease commencement date as to whether it is reasonably certain
that it will exercise these options. The Group would reassess these options if
there was a significant event or significant change in circumstances within
its control, which would warrant the Group with reasonable certainty to
exercise these options.
Payments in relation to short-term leases, those that are less than twelve
months in duration continue to be expensed to the income statement on a
straight line basis. At the end of the year, all of the Group's leases were
recognised as right-of-use assets.
1.19 Pensions
The Group operates defined contribution pension schemes covering the majority
of its employees. The costs of the pension schemes are charged to the income
statement as they are incurred. Any amounts unpaid at the end of the period
are reflected in other creditors.
2 SEGMENTAL ANALYSIS
The Directors consider that the Group has only one reportable segment, namely
asset management, and hence only analysis by geographical location is given.
USA Canada UK Europe (ex UK) Other Total
$'000 $'000 $'000 $'000 $'000 $'000
Year to 30th June 2025
Gross fee income 70,567 1,529 - 818 130 73,044
Non-current assets:
Property and equipment 759 - 147 - 11 917
Right-of-use assets 3,656 - 699 - 63 4,418
Intangible assets 117,234 - 62 - - 117,296
Year to 30th June 2024
Gross fee income 66,885 1,465 - 1,001 102 69,453
Non-current assets:
Property and equipment 901 - 205 - 22 1,128
Right-of-use assets 4,030 - 925 - 121 5,076
Intangible assets 122,833 - 20 - - 122,853
3. OPERATING PROFIT
Year to Year to
The operating profit is arrived at after charging: 30th June 2025 30th June 2024
$'000 $'000
Depreciation of property and equipment 285 293
Depreciation of right-of-use assets 658 672
Amortisation of intangible assets 5,617 5,609
Auditor's remuneration:
- Statutory audit of the parent and consolidated financial statements 158 149
- Statutory audit of subsidiaries of the Company 147 134
- Audit related assurance services 50 62
Short-term lease expense 20 21
Legal and Professional fees 2,563 1,766
Consultancy and software fees 1,959 1,780
Market information services 1,312 1,511
4. FINANCE INCOME
Year to Year to
30th June 2025 30th June 2024
$'000 $'000
Interest on cash and cash equivalents 1,490 1,460
5. FINANCE EXPENSE
Year to Year to
30th June 2025 30th June 2024
$'000 $'000
Interest payable on lease liabilities 387 357
Interest payable other 8 24
395 381
6. GAIN ON INVESTMENTS
Year to Year to
30th June 2025 30th June 2024
$'000 $'000
Unrealised gain on investments 614 180
Realised gain on investments 152 871
766 1,051
7. TAX CHARGE ON PROFIT ON ORDINARY ACTIVITIES
Year to Year to
(a) Analysis of tax charge on ordinary activities: 30th June 2025 30th June 2024
$'000 $'000
Current tax:
UK corporation tax at 25% (2024: 25%) based on the profit for the period 3,992 5,417
Double taxation relief (585) (887)
Adjustments in respect of prior years 162 (7)
UK tax total 3,569 4,523
Foreign tax 4,145 2,453
Adjustments in respect of prior years (207) (123)
Foreign tax total 3,938 2,330
Total current tax charge 7,507 6,853
Deferred tax:
UK - origination and reversal of temporary differences 129 68
Foreign - origination and reversal of temporary differences (1,329) (1,415)
Total deferred tax credit (1,200) (1,347)
Total tax charge in income statement 6,307 5,506
(b) Factors affecting tax charge for the current period:
The tax charge on profit for the year is different to that resulting from
applying the standard rate of corporation tax in the UK - 25% (prior year -
25%). The differences are explained below:
Year to Year to
30th June 2025 30th June 2024
$'000 $'000
Profit on ordinary activities before tax 25,989 22,621
Tax on profit from ordinary activities at the standard rate (6,497) (5,655)
Effects of:
Unrelieved foreign tax at rates different to those of the UK (20) (166)
Income ineligible for tax (62) 75
Capital allowances less than depreciation 207 98
Prior period adjustments 47 129
Other 18 13
Total tax charge in income statement (6,307) (5,506)
8. EARNINGS PER SHARE
The calculation of earnings per share is based on the profit for the period
attributable to the equity shareholders of the parent divided by the weighted
average number of ordinary shares in issue for the period ended 30th June
2025.
As set out in the Directors' report on page 82 of the full report, the
Employee Benefit Trust held 1,750,055 (2024: 1,829,637) ordinary shares in the
Company as at 30th June 2025. The Trustees of the Trust have waived all rights
to dividends associated with these shares. In accordance with IAS 33 Earnings
per share, the ordinary shares held by the Employee Benefit Trust have been
excluded from the calculation of the weighted average number of ordinary
shares in issue.
The calculation of diluted earnings per share is based on the profit for the
period attributable to the equity shareholders of the parent divided by the
diluted weighted average number of ordinary shares in issue for the period
ended 30th June 2025.
Reported earnings per share
Year to Year to
30th June 2025 30th June 2024
$'000 $'000
Profit attributable to the equity shareholders of the parent for basic 19,682 17,115
earnings
Number of shares Number of shares
Issued ordinary shares as at 1st July 50,679,095 50,679,095
Effect of own shares held by EBT (1,539,816) (1,875,340)
Weighted average shares in issue 49,139,279 48,803,755
Effect of movements in share options and EIP awards 759,201 978,997
Diluted weighted average shares in issue 49,898,480 49,782,752
Basic earnings per share (cents) 40.1 35.1
Diluted earnings per share (cents) 39.4 34.4
Basic earnings per share (pence) 30.9 27.8
Diluted earnings per share (pence) 30.4 27.3
Underlying earnings per share*
Underlying earnings per share is based on the underlying profit after tax*,
where profit after tax is adjusted for gain/loss on investments, amortisation
of acquired intangibles and their relating tax impact.
Underlying profit for calculating underlying earnings per share
Year to Year to
30th June 2025 30th June 2024
$'000 $'000
Profit before tax 25,989 22,621
Add back/(deduct):
- (Gain)/loss on investments (766) (1,051)
- Amortisation on acquired intangibles 5,599 5,599
Underlying profit before tax 30,822 27,169
Tax expense as per the consolidated income statement (6,307) (5,506)
Tax effect of fair value adjustments 190 261
Unwinding of deferred tax liability (1,344) (1,344)
Underlying profit after tax for the calculation of underlying earnings per 23,361 20,580
share
Underlying earnings per share (cents) 47.5 42.2
Underlying diluted earnings per share (cents) 46.8 41.3
Underlying earnings per share (pence) 36.7 33.5
Underlying diluted earnings per share (pence) 36.1 32.8
* This is an Alternative Performance Measure (APM). Please refer to the
Financial Review for more details on APM
9. INTANGIBLE ASSETS
Group Direct customer relationships Distribution channels Trade name Long term software Total 30th June 2024
Goodwill
$'000 $'000 $'000 $'000 $'000 $'000 $'000
Cost
At start of period 90,072 46,052 6,301 1,405 914 144,744 144,744
Additions - - - - 60 60 -
At close of period 90,072 46,052 6,301 1,405 974 144,804 144,744
Amortisation charge
At start of period - 17,270 3,376 351 894 21,891 16,282
Charge for the period - 4,605 900 94 18 5,617 5,609
At close of period - 21,875 4,276 445 912 27,508 21,891
Net book value:
At close of period 90,072 24,177 2,025 960 62 117,296 122,853
Company
Cost
At start of period 112 112 112
Additions 60 60 -
At close of period 172 172 112
Amortisation charge
At start of period 92 92 82
Charge for the period 18 18 10
At close of period 110 110 92
Net book value 62 62 20
Goodwill, direct customer relationships, distribution channels and trade name
acquired through business combination relate to the merger with KIM on 1st
October 2020.
Impairment
Goodwill acquired through the business combination is in relation to the
merger with KIM and relates to the acquired workforce and future expected
growth of the cash generating unit (CGU).
The Group has carried out an annual review of the carrying value of the CGU to
which the goodwill is allocated to see if it has suffered any impairment.
Management also considered whether there were any indicators of impairment of
other intangible assets. The services of an independent valuation consultant,
Kroll Advisory Limited (Kroll) was retained during the year to perform an
assessment of impairment as of 30th April 2025. The Group assessed the
recoverable amount of the CGU by both its value in use (VIU) and its fair
value (Fair Value) less cost of disposal (FVLCOD). Both methodologies gave a
value which exceeded the carrying value of the CGU. Although, the recoverable
amount calculated using VIU was higher than FVLCOD, to be consistent with the
prior period, the Group adopted FVLCOD as its measurement against the carrying
value of its CGU. The Fair Value is based on the Market Comparable Method (or
"Comparable Company Analysis") that indicates the value of KIM by comparing it
to publicly traded companies in a similar line of business. An analysis of the
trading multiples of comparable companies yields insight into investor
perceptions and, therefore, the value of the subject company i.e., the value
of KIM.
FuM and EBITDA multiples were selected and applied to the historical and
forecasted metrics of KIM. The multiples were evaluated and selected based on
the relative growth potential, operating margins and risk profile of KIM
vis-a-vis the publicly traded comparable companies and also to reflect the
degree of control and lack of marketability of the interest held in KIM. As
such, FuM multiple of 3.5% and EBITDA multiples of 10.0x and 9.0x (calendar
year 2024 and 2025 respectively) were selected based on the Comparable Company
Analysis prior to concluding the Fair Value of KIM on a weighted average
basis. This Fair Value is classified within Level 3 of IFRS 13 fair value
hierarchy.
The Group's forecasts are based on its most recent and current trading
activity and on current financial budgets for twelve months that are approved
by the Board. The key assumptions underlying the budgets are based on the most
recent trading activity with built in organic growth, revenue and cost
margins. The annual growth rate used for extrapolating revenue forecasts was
5.6% and for direct costs was 3.0% based on the Group's expectation of future
growth of the business.
The goodwill impairment assessment date of 30th April 2025 was different to
the current reporting date. The performance of the CGU is reviewed for the
period between the assessment date and the reporting date to determine whether
any changes in circumstances or impairment indicators have occurred since the
assessment date. Following our review, it was determined that there were no
changes in circumstances or impairment indicators that would require the CGU
to be impaired at the reporting date.
The recoverable amount of the CGU exceeded the carrying amount of the CGU at
30th April 2025 by $24,667k (2024: $9,496k).
Sensitivity analysis was applied to the selected multiples to measure the
impact on the headroom in existence under the current impairment review. The
following table shows the extent to which each of the selected multiples will
be required to change in isolation for the recoverable amount of this CGU to
be equal to its carrying amount. This highlights that further adverse
movements in the selected multiples would be required before an impairment
would be recognised. The below sensitivities make no allowance for mitigating
actions that management would take if such market conditions persisted.
2025
From To
EV / December LYM FuM - (USD Mn) 3.5% 0.9%
EV / CY 2025 FuM - (USD Mn) 3.5% 1.0%
EV / CY 2024 EBITDA Post Bonus 10.0x 3.5x
EV / CY 2025 EBITDA Post Bonus 9.0x 2.7x
The Directors and management have considered and assessed possible changes to
other key assumptions and have not identified any instances that could cause
the carrying amount of the CGU to exceed its recoverable amount.
Based on the recoverable amount, using the fair value model, no impairment was
required at 30th June 2025.
10. SHARE CAPITAL AND MERGER RELIEF RESERVE
Share capital Merger relief reserve
Group and Company $'000 $'000
At start and end of period 50,679,095 ordinary shares of 1p each 644 128,984
11. DIVIDEND
30th June 2025 30th June 2024
$'000 $'000
Dividends paid:
Interim dividend of 11p per share (2024: 11p) 7,052 6,840
30th June 2024 of 22p per share (2023: 22p) 13,866 13,049
20,918 19,889
A final dividend of 22p per share (gross amount payable $15,310k; net amount
payable $14,782k*) has been proposed, payable on 6th November 2025, subject to
shareholder approval, to shareholders who are on the register of members on
26th September 2025.
*Difference between gross and net amounts is due to shares held at EBT that do
not receive a dividend.
12. FINANCIAL INSTRUMENTS
The Group's financial assets include cash and cash equivalents, investments
and other receivables. Its financial liabilities include accruals, lease
liabilities and other payables. The fair value of the Group's financial assets
and liabilities is materially the same as the book value.
(i) Financial instruments by category
The tables below show the Group and Company's financial assets and liabilities
as classified under IFRS 9 Financial Instruments:
Group
Assets at fair value through
Financial assets
30th June 2025 at amortised cost profit or loss Total
Assets as per statement of financial position $'000 $'000 $'000
Other non-current financial assets - 6,506 6,506
Trade and other receivables 7,139 - 7,139
Cash and cash equivalents 35,492 _ 35,492
Total 42,631 6,506 49,137
Liabilities at
fair value
Financial liabilities through
at amortised cost profit or loss Total
Liabilities as per statement of financial position $'000 $'000 $'000
Trade and other payables 10,107 - 10,107
Current lease liabilities 585 - 585
Non-current lease liabilities 4,705 - 4,705
Total 15,397 - 15,397
Assets at fair
Financial assets at amortised cost value through
30th June 2024 profit or loss Total
Assets as per statement of financial position $'000 $'000 $'000
Other non-current financial assets - 5,750 5,750
Trade and other receivables 6,687 - 6,687
Cash and cash equivalents 33,738 _ 33,738
Total 40,425 5,750 46,175
Liabilities at
fair value
Financial liabilities through
Liabilities as per statement of financial position at amortised cost profit or loss Total
$'000 $'000 $'000
Trade and other payables 10,236 - 10,236
Current lease liabilities 526 - 526
Non-current lease liabilities 5,207 - 5,207
Total 15,969 - 15,969
Company
Assets at fair value through
Investment in Financial assets
30th June 2025 subsidiaries at amortised cost profit or loss Total
Assets as per statement of financial position $'000 $'000 $'000 $'000
Other non-current financial assets 131,643 2,500 60 134,203
Trade and other receivables - 6,171 - 6,171
Cash and cash equivalents - 16,550 - 16,550
Total 131,643 25,221 60 156,924
Liabilities at
fair value
Financial liabilities through
at amortised cost profit or loss Total
Liabilities as per statement of financial position $'000 $'000 $'000
Trade and other payables 4,281 - 4,281
Current lease liabilities 318 - 318
Non-current lease liabilities 725 - 725
Total 5,324 - 5,324
Assets at fair value through
Investment in Financial assets
30th June 2024 subsidiaries at amortised cost profit or loss Total
Assets as per statement of financial position $'000 $'000 $'000 $'000
Other non-current financial assets 131,733 2,500 50 134,283
Trade and other receivables - 3,250 - 3,250
Cash and cash equivalents - 20,381 - 20,381
Total 131,733 26,131 50 157,914
Liabilities at
fair value
Financial liabilities through
at amortised cost profit or loss Total
Liabilities as per statement of financial position $'000 $'000 $'000
Trade and other payables 5,339 - 5,339
Current lease liabilities 284 - 284
Non-current lease liabilities 964 - 964
Total 6,587 - 6,587
(ii) Fair value measurements recognised in the statement of financial position
The following table provides an analysis of financial instruments that are
measured subsequent to initial recognition at fair value, grouped into levels
1 to 3 based on the degree to which the fair value is observable.
• Level 1: fair value derived from quoted prices (unadjusted) in active
markets for identical assets and liabilities.
• Level 2: fair value derived from inputs other than quoted prices
included within level 1 that are observable for the assets or liability,
either directly (i.e. as prices) or indirectly (i.e. derived from prices).
• Level 3: fair value derived from valuation techniques that include
inputs for the asset or liability that are not based on observable market
data.
The fair values of the financial instruments are determined as follows:
- Investments for hedging purposes are valued using the quoted bid price and
shown under level 1.
- Investments in own funds are determined with reference to the net asset value
(NAV) of the fund. Where the NAV is a quoted price the fair value is shown
under level 1, where the NAV is not a quoted price the fair value is shown
under level 2.
- Forward currency trades are valued using the forward exchange bid rates and
are shown under level 2.
- Unlisted equity securities are valued using the net assets of the underlying
companies and are shown under level 3.
The level within which the financial asset or liability is classified is
determined based on the lowest level of significant input to the fair value
measurement.
Group
Level 1 Level 2 Level 3 Total
30th June 2025 $'000 $'000 $'000 $'000
Financial assets at fair value through profit or loss
Investment in other non-current financial assets 6,318 188 - 6,506
Total 6,318 188 - 6,506
Level 1 Level 2 Level 3 Total
30th June 2024 $'000 $'000 $'000 $'000
Financial assets at fair value through profit or loss
Investment in other non-current financial assets 5,700 50 - 5,750
Total 5,700 50 - 5,750
Company
Level 1 Level 2 Level 3 Total
30th June 2025 $'000 $'000 $'000 $'000
Investment in other non-current financial assets - 60 - 60
Total - 60 - 60
Level 1 Level 2 Level 3 Total
30th June 2024 $'000 $'000 $'000 $'000
Investment in other non-current financial assets - 50 - 50
Total - 50 - 50
There were no financial liabilities at fair value at any of the reported
periods.
Level 3
Level 3 assets as at 30th June 2025 are nil (2024: nil).
Where there is an impairment in the investment in own funds, the loss is
reported in the income statement. No impairment was recognised during the
period or the preceding year.
(iii) Foreign currency risk
Almost all of the Group's revenues, and a significant part of its expenses,
are denominated in US dollars. However, expenses related to UK and Singapore
offices are denominated in currencies other than US dollars. As a result,
expenses and balances arise which give rise to currency exposure.
As at 30th June 2025, significant net asset balances included within the
Group's net asset balances were £3,183k (2024: net liabilities of £413k)
denominated in sterling, C$543k (2024: C$520k) in Canadian dollars and
SGD1,680k (2024: SGD1,676k) in Singapore dollars.
Had the US dollar strengthened or weakened against these currencies as at 30th
June 2025 by 10%, with all other variables held constant, the Group's net
assets and profit before tax would have increased or decreased (respectively)
by $609k (2024: $109k). 10% represents management's assessment of the
reasonably possible change in foreign exchange rate.
(iv) Market risk
Changes in market prices, such as foreign exchange rates and equity prices
will affect the Group's income and the value of its investments.
Where the Group holds investments in its own funds categorised as unlisted
investments, the market price risk is managed through diversification of the
portfolio. A 10% increase or decrease in the price level of the funds'
relevant benchmarks, with all other variables held constant, would result in
an increase or decrease of approximately nil (2024: nil) in the value of the
investments and profit before tax.
The Group's Global Equity CEF funds has been consolidated as controlled
entities, and therefore the securities held by the fund are reported in the
consolidated statement of financial position under investments. At 30th June
2025, all those securities were listed on a recognised exchange. A 10%
increase or decrease in the price level of the securities would result in a
gain or loss respectively of approximately $0.3 million (2024: $0.3 million)
to the Group.
The Group is also exposed to market risk indirectly via its Funds under
Management, from which its fee income is derived. To hedge against potential
losses in fee income, the Group may look to invest in securities or
derivatives that should increase in value in the event of a fall in the
markets. The purchase and sale of these securities are subject to limits
established by the Board and are monitored on a regular basis. The investment
management and settlement functions are totally segregated.
The profit from hedging recognised in the Group income statement for the
period is nil (2024: £nil).
(v) Credit risk
The majority of debtors relate to management fees due from funds and
segregated account holders. As such, the Group is able to assess the credit
risk of these debtors as minimal. For other debtors a credit evaluation is
undertaken on a case by case basis.
The Group has zero experience of bad or overdue debts.
The majority of cash and cash equivalents held by the Group are with leading
UK and US banks. The credit risk is managed by carrying out regular reviews of
each institution's credit rating and of their published financial position.
Given their high credit ratings, management does not expect any counterparty
to fail to meet its obligations.
(vi) Liquidity risk
The Group's trade and other sundry payables are immaterial and thus the
liquidity risk is minimal. In addition, the Group's investments in funds that
it manages can be liquidated immediately if required.
(vii) Interest rate risk
The Group has no borrowings, and therefore has no exposure to interest rate
risk other than that which attaches to its interest earning cash and cash
equivalents balances. The Group's strategy is to maximise the amount of cash
which is maintained in interest bearing accounts and short-term
treasuries/money market funds, and to ensure that those accounts attract a
competitive interest rate. At 30th June 2025, the Group held $35,492k (2024:
$33,738k) in cash balances, of which $34,940k (2024: $33,245k) was held in
bank accounts, short-term deposits and short-term treasuries/money market
funds, which attract variable interest rates. The effect of a 100 basis points
increase/decrease in interest rates on the Group's net assets would not be
material.
(viii) Capital risk management
The Group manages its capital to ensure that all entities within the Group are
able to operate as going concerns and exceed any minimum externally imposed
capital requirements. The capital of the Group and Company consists of equity
attributable to the equity holders of the Parent Company, comprising issued
share capital, share premium, retained earnings and other reserves as
disclosed in the statement of changes in equity.
The Group's operating subsidiary company in the UK, City of London Investment
Management Company Ltd is subject to the minimum capital requirements of the
Financial Conduct Authority (FCA) in the UK. This subsidiary held surplus
capital over its requirements throughout the period.
The Group is required to undertake an Internal Capital and Risk Assessment,
which is approved by the Board. The objective of this is to ensure that the
Group has adequate capital to enable it to manage risks which are not
adequately covered under the Pillar 1 requirements. This process includes
stress testing for the effects of major risks, such as a significant market
downturn, and includes an assessment of the Group's ability to mitigate the
risks.
APPENDIX
1. Principal risks
The Board has conducted a robust assessment of the principal risks facing the
Group, including those that would threaten its business model, future
performance, solvency or liquidity. This assessment includes continuous
monitoring of both internal and external environments to identify new and
emerging risks, which in turn are analysed to determine how they can best be
mitigated and managed. The primary risk is the potential for loss of FuM as a
result of poor investment performance, client redemptions, reputational
damage, a breach of mandate guidelines or market volatility. The Group seeks
to attract and retain clients through consistent outperformance supplemented
by first class client servicing.
In addition to the above key business risk, the Group has outlined what it
considers to be its other principal risks, including the controls in place and
any mitigating factors.
Principal risk Controls / mitigation
Key person risk Risk that key employees across the business leave/significant reliance on a Team approach, internal procedures and knowledge sharing. Remuneration
small number of key employees. packages reviewed as needed to ensure talent/key employees are retained. In
addition, the Nomination Committee regularly reviews talent and succession
plans for both Board and key senior management positions
Technology, IT / cybersecurity and business continuity risks Risk that technology systems and support are inadequate or fail to adapt to IT monitors and controls risks related to cyber threats, and for the strength
changing requirements; systems are vulnerable to third party penetration or and security of the Group's network and infrastructure. The IT department has
that the business cannot continue in a disaster. controls in place to mitigate risk, which include, but are not limited to
access management, patch management, application updates, physical environment
protection, and data back-up and recovery. The Group has policies in place for
Disaster Recovery/Business Continuity and Incident Response Planning.
Material error / mandate breach Risk of a material error or investment mandate breach occurring. Mandate guidelines are coded (where possible) into the order management system
by the Investment Management/Compliance teams of each operating subsidiary.
Regulatory and legal risk Risk of legal or regulatory action resulting in fines, penalties, censure or Compliance teams of each subsidiary monitor relevant regulatory developments -
legal action arising from failure to identify or meet regulatory and both new regulations as well as changes to existing regulations that impact
legislative requirements in the jurisdictions in which the Group and its their respective subsidiary. Implementation is done as practicably as possible
operating subsidiaries operate, including those as a result of being a listed taking into account the size and nature of the business.
entity on the London Stock Exchange. Risk that new regulation or changes to
the interpretation of existing regulation affects the Group's operations and The finance team with the support of CLIG's Company Secretary keeps abreast of
cost base. any changes to Listing Rules, accounting and other standards that may have an
impact on the Group.
Finance and both the compliance teams receive regular updates from a variety
of external sources including regulators, law firms, consultancies etc.
2. Related party transactions
In the ordinary course of business, the Company and its subsidiary
undertakings carry out transactions with related parties as defined under IAS
24 Related Party Disclosures. Material transactions are set out below.
(i) Transactions with key management personnel
Key management personnel are defined as Directors (both Executive and
Non-Executive) of City of London Investment Group PLC.
(a) Details of compensation paid to the Directors as well as their
shareholdings in the Group and dividends paid are provided in the Remuneration
report on pages 64, 72 and 73 and in note 4 of the full report.
(b) One of the Group's subsidiaries manages funds for some of its key
management personnel, for which it receives a fee. All transactions between
key management and their close family members and the Group's subsidiary are
on terms that are available to all employees of that Company. The amount
received in fees during the year was $12k (2024: $7k). There were no fees
outstanding as at the year-end.
(c) close member of a key management's personnel family provided professional
services to the Group. The amount paid during the period for these services
were $0.4k (2024: $43k). The amount outstanding at the year-end was nil (2024:
$11k).
(ii) Person with significant influence
One of the Group's subsidiaries manages funds for a person with significant
influence based on his shareholding in the Group. The amount of fees received
by the Group during the period was $92k (2024: $81k).
(iii) Summary of transactions and balances
During the period, the Company received from its subsidiaries $12,245k (2024:
$13,308k) in respect of management service charges and dividends of $20,800k
(2024: $19,150k).
Amounts outstanding between the Company and its subsidiaries as at 30th June
2025 are given in notes 16 and 18 of the full report.
3. Statement of Directors' responsibilities
The Directors are responsible for preparing the Strategic report, the
Directors' report, the Directors' remuneration report and the Financial
statements in accordance with applicable law and regulations.
Company law requires the Directors to prepare Group and Company financial
statements for each financial year. The Directors have elected under Company
law and are required under the Listing Rules of the Financial Conduct
Authority to prepare Group financial statements in accordance with UK- adopted
International Accounting Standards. The Directors have elected under Company
law to prepare the Company financial statements in accordance with UK-adopted
International Accounting Standards.
The Group and Company financial statements are required by law and UK-adopted
International Accounting Standards to present fairly the financial position of
the Group and the Company and the financial performance of the Group; the
Companies Act 2006 provides in relation to such financial statements that
references in the relevant part of that Act to financial statements giving a
true and fair view are references to their achieving a fair presentation.
Under Company law, the Directors must not approve the financial statements
unless they are satisfied that they give a true and fair view of the state of
affairs of the Group and the Company and of the profit or loss of the Group
for that period.
In preparing each of the Group and Company financial statements, the Directors
are required to:
•select suitable accounting policies and then apply them consistently;
•make judgements and accounting estimates that are reasonable and prudent;
•state whether they have been prepared in accordance with UK-adopted
International Accounting Standards; and
•prepare the financial statements on the going concern basis unless it is
inappropriate to presume that the Group and the Company will continue in
business.
The Directors are responsible for keeping adequate accounting records that are
sufficient to show and explain the Group's and the Company's transactions and
disclose with reasonable accuracy at any time the financial position of the
Group and the Company and enable them to ensure that the financial statements
and the Directors' remuneration report comply with the Companies Act 2006.
They are also responsible for safeguarding the assets of the Group and the
Company and hence for taking reasonable steps for the prevention and detection
of fraud and other irregularities.
Directors' statement pursuant to the Disclosure and Transparency Rules
Each of the Directors, whose names and functions are listed on page 46 of the
full report confirm that, to the best of each person's knowledge:
•the financial statements, prepared in accordance with the applicable set of
accounting standards, give a true and fair view of the assets, liabilities,
financial position and profit of the Company and the undertakings included in
the consolidation taken as a whole; and
•the Strategic Report and Directors' report contained in the Annual Report
includes a fair review of the development and performance of the business and
the position of the Company and the undertakings included in the consolidation
taken as a whole, together with a description of the principal risks and
uncertainties that they face.
The Directors are responsible for the maintenance and integrity of the
corporate and financial information included on the City of London Investment
Group's website.
Legislation in the United Kingdom governing the preparation and dissemination
of financial statements may differ from legislation in other jurisdictions.
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