Half-year Report
21/02/2025 07:00
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RNS Number : 9282X City of London Investment Trust PLC 21 February 2025
LEGAL ENTITY IDENTIFIER: 213800F3NOTF47H6AO55
THE CITY OF LONDON INVESTMENT TRUST PLC
Unaudited Results for the Half-Year Ended 31 December 2024
This announcement contains regulated information
INVESTMENT OBJECTIVE
The Company's objective is to provide long-term growth in income and capital,
principally by investment in equities listed on the London Stock Exchange. The
Board fully recognises the importance of dividend income to shareholders.
PERFORMANCE
As at As at
31 December 2024
30 June 2024
Net asset value ("NAV") per ordinary share 425.1p 424.3p
Premium/(discount) 1.4% (1.0)%
Net asset value per ordinary share (debt at fair value) 430.8p 429.6p
Premium/(discount) (debt at fair value) 0.0% (2.2)%
Ordinary share price 431.0p 420.0p
Gearing (debt at par value) 7.6% 7.1%
Six months to Six months to
31 December 2024
31 December 2023
Dividends per share 10.5p 10.1p
As at As at
31 December 2024
30 June 2024
Dividend yields
The City of London Investment Trust plc 4.9% 4.9%
FTSE All-Share Index (Benchmark) 3.8% 3.7%
AIC UK Equity Income sector 4.8% 4.2%
IA UK Equity Income OEIC sector 4.2% 4.3%
Sources: Morningstar Direct, LSEG Datastream
Total return performance to 31 December 2024 6 months % 1 year % 3 years 5 years 10 years
%
%
%
NAV(1) 2.8 11.5 24.8 29.2 83.8
Share price(2) 5.1 10.6 26.8 25.1 80.1
FTSE All-Share Index (Benchmark) 1.9 9.5 18.5 26.5 81.9
AIC UK Equity Income sector(3) 2.7 10.1 16.6 26.9 88.2
IA UK Equity Income OEIC sector(4) 1.4 8.7 13.8 20.0 66.2
Sources: Morningstar Direct, Janus Henderson, LSEG Datastream
1 Net asset value per ordinary share total return with debt at fair value
(including dividends reinvested)
2 Share price total return using mid-market closing price
3 AIC UK Equity Income sector size weighted average NAV total return
(shareholders' funds)
4 The Investment Association ("IA") peer group average is based on mid-day NAV
whereas the returns of the investment trust are calculated using close of
business NAV
INTERIM MANAGEMENT REPORT
CHAIRMAN'S STATEMENT
Introduction
City of London achieved a 2.8% net asset value total return during the six
months to 31 December 2024 against a backdrop of political change in the UK
and USA, uncertain economic prospects globally and cuts in interest rates.
The Markets
Following July's general election, the new Labour government introduced a
Budget in October which raised public spending, increased the employer's
national insurance tax rate and signalled the removal of the Inheritance Tax
exemption for personal pension funds. Growth in the UK economy slowed from the
pace of the first half of the year, whilst the Bank of England lowered the
base rate to 4.75% through two cuts of 25 basis points. The UK 10-year gilt
yield rose from 4.2% to 4.6% during the six months, reflecting concerns about
the stickiness of inflation and the prudent sustainability of government
finances. Growth in Europe was also weak, with the European Central Bank
reducing its deposit rate to 3.0%. Economic growth in the US, in contrast,
remained relatively robust, with the US Federal Reserve making three cuts in
interest rates to 4.5%.
The UK equity market returned 1.9%, as measured by the FTSE All-Share Index,
with medium-sized and small companies slightly outperforming larger peers. The
banking sector was a notable outperformer, with banks benefitting through
rolling over structural hedges of funds on better terms than had prevailed
during the period of ultra-low interest rates. The oil sector, however, was
weak with the Brent oil price falling by 7% to $75 per barrel during the six
months, reflecting reduced global demand.
Net Asset Value Total Return
City of London's net asset value total return was 2.8%, exceeding the FTSE
All-Share Index (1.9%), the AIC UK Equity Income sector average (2.7%) and the
IA UK Equity Income OEIC sector average (1.4%). Stock and sector selection
contributed to relative outperformance against the Index by 93 basis points.
The biggest sector contributor was tobacco, where corporate earnings and
dividends were resilient. Imperial Brands was the second biggest stock
contributor. The biggest stock contributor was our underweight position in
AstraZeneca. The third biggest contributor was NatWest, whose share price rose
by 29% during the six months. The biggest detracting sector was aerospace and
defence, where Rolls Royce, which we do not hold, continued to perform well
despite not paying a dividend, and was our biggest stock detractor. In
addition, our holding in BAE Systems gave back some gains, having been a very
strong performer over the previous three years.
Earnings and Dividends
Earnings per share declined from 8.8p to 8.4p, compared with the same
six-month period last year, mainly due to the change in timing of dividend
payments from some investee companies. Another factor was the absence of any
special dividends compared with £0.9 million received during the same period
last year. This reflected an increasing trend by UK listed companies to
substitute dividend distributions with share buy backs to fund shareholder
returns, particularly in relation to exceptional profits.
The Board continues to control expenses tightly. City of London's ongoing
charge, which represents the investment management fee and other
administrative non-interest expenses as a percentage of shareholder funds, is
expected to remain around 0.37% during this financial year. This is low
compared with almost all other investment trusts and (non-tracker) managed
equity investment products.
City of London has declared two interim dividends to date of 5.25p each in
respect of this financial year. The Company's diverse portfolio, strong cash
flow and revenue reserve give the Board confidence that in line with its
objective to provide long-term income and capital growth, it will be able to
increase the total annual dividend for the 59(th) consecutive year. The
quarterly dividend rate will be reviewed by the Board before the third interim
dividend is declared in April 2025.
Material Events and Transactions during the Period
The Board continued with its stated policy, subject to prevailing conditions,
of issuing and buying back shares within a narrow band relative to net asset
value. During the six-month period, the Company's shares traded close to net
asset value and ended the period with the share price equal to net asset value
(valuing debt at fair value) and at a 1.4% premium to net asset value (valuing
debt at par value). 28,278 shares were bought back, costing £119,000, at a
small discount and no shares were issued.
A new holding was bought in TP ICAP, a leading intermediary in global
financial markets. Notable additions were made to Shell, the oil and gas
company, and to the diversified Real Estate Investment Trusts, British Land
and Land Securities. DS Smith, the paper and packaging company in the process
of being taken over by the US company, International Paper, was sold. Pennon,
the water utility, was sold ahead of the final determination of the regulatory
review of UK water companies. In a tough backdrop for consumer spending,
Burberry and DFS Furniture omitted their dividends and were sold. A
significant profit was realised with the sale of half the holding in 3i
following a very strong share price performance. Some profits were also taken
in BAE Systems.
Outlook for the Six Months to 30 June 2025
The UK economy is struggling to grow, with business confidence adversely
affected by a combination of the rise in employer's national insurance, the
prospect of tighter labour regulations and the well-above inflation increase
in the National Minimum Wage from April 2025. Although it seems likely that
there will be further interest rate cuts from the current level of 4.5%, the
Bank of England's decision is made harder by the ripple effect of government
induced cost pressures on inflation. Cuts in interest rates could be well
received by investors, who will anticipate an improvement in corporate profits
and consumer spending. The outlook for growth in Europe is also weak, with
considerable political uncertainty in both France and Germany. The European
Central Bank is expected to make further cuts in interest rates which may
improve sentiment. Prospects for economic growth are stronger in the US, with
its technology sector continuing to generate impressive returns. The policies
of the Trump administration, such as in relation to tariffs, currently remain
uncertain and the judgement of the potential impact of such policies will
feature materially in the Federal Reserve's determination of future interest
rates.
Many domestic UK stocks remain on relatively depressed valuations, both
absolutely and relatively when compared with their peers in overseas markets.
The diversified Real Estate Investment Trusts exemplify this valuation
discrepancy, trading on discounts to net asset value of 30% and dividend
yields of 6%. It is important to recognise, however, that City of London's
portfolio is biased towards companies with overseas sales. At 31 December
2024, some 63% of the underlying sales of investee companies were made
overseas. They are therefore well placed to benefit from global growth trends.
It is also worth noting the possible signs of a lessening of geo-political
tensions, such as the ceasefire in Gaza, and President Trump's proactive
engagement in efforts to end the war in Ukraine.
Given the relative attraction of UK equities to their equivalents in overseas
markets, especially with regard to dividend yield, it remains the case that
investors in UK equities "are paid to hold on". It is encouraging to see many
companies taking advantage of their low valuations to buy back their shares
"on the cheap". Imperial Brands, City of London's seventh largest holding, has
demonstrated the benefits of this approach with its share buy backs over the
last two years having been significantly accretive to earnings per share.
More takeovers can be expected from overseas companies and private equity
firms while this low relative value of UK equities persists. The dividend
yield of UK equities will also become increasingly attractive relative to bank
deposit rates as interest rates decline.
Sir Laurie Magnus CBE
Chairman
20 February 2025
FORTY LARGEST INVESTMENTS
Company Market value Company Market value
31 December 31 December
2024 2024
£'000 £'000
HSBC 105,230 Aviva 40,777
Shell 97,802 GSK 40,380
RELX 92,175 IG 39,620
Unilever 85,256 3i 35,640
British American Tobacco 76,293 British Land 30,797
BAE Systems 73,759 Munich Re 28,985
Imperial Brands 73,399 Severn Trent 28,842
Tesco 72,923 Reckitt Benckiser 26,576
NatWest 71,373 SSE 26,466
AstraZeneca 64,354 TotalEnergies 26,465
National Grid 53,701 Schroders 23,872
Barclays 52,021 Sage 21,760
Lloyds Banking 51,493 Swire Pacific 21,725
Rio Tinto 51,481 Glencore 21,204
M&G 51,389 Beazley 20,413
Diageo 49,725 Anglo American 20,094
BP 49,512 Deutsche Telekom 19,651
Phoenix 44,028 Britvic 19,620
Legal & General 43,662 St. James's Place 19,519
Land Securities 40,880 Novartis 18,752
These investments total £1,831,614,000 or 81.0% of the portfolio.
Convertibles and all classes of equity in any one company are treated as one
investment.
SECTOR EXPOSURE
As a percentage of the investment portfolio excluding cash
%
Financials 32.3
Consumer Staples 20.2
Industrials 9.8
Energy 8.1
Health Care 7.3
Consumer Discretionary 6.3
Utilities 5.3
Basic Materials 4.7
Telecommunications 2.6
Real Estate 2.4
Technology 1.0
Total 100.0
Source: Janus Henderson
SECTOR BREAKDOWN OF INVESTMENTS
Valuation Valuation
31 December 31 December
2024 2024
£'000 £'000
ENERGY Industrial Support Services
Oil, Gas and Coal PayPoint 15,600
BP 97,802 Hays 10,285
Shell 49,512 Inchcape 9,619
TotalEnergies(1) 26,465 35,504
ENI(1) 9,673 Total Industrials 222,419
183,452
Total Energy 183,452 CONSUMER STAPLES
Beverages
BASIC MATERIALS Diageo 49,725
Chemicals Britvic 19,620
Victrex 8,308 Coca-Cola(1) 10,940
Johnson Matthey 6,014 ( ) 80,285
14,322
Food Producers
Industrial Metals and Mining Nestlé(1) 17,803
Rio Tinto 51,481 Hilton Food 9,050
Glencore 21,204 Tate & Lyle 8,638
Anglo American 20,094 35,491
92,779
Total Basic Materials 107,101 Personal Care, Drug and Grocery Stores
Unilever 85,256
INDUSTRIALS Tesco 72,923
Aerospace and Defence Reckitt Benckiser 26,576
BAE Systems 73,759 184,755
73,759
Automobiles and Parts
Construction and Materials Dowlais 6,740
Ibstock 14,432 6,740
Marshalls 7,338
21,770 Tobacco
British American Tobacco 76,293
Electronic and Electrical Equipment Imperial Brands 73,399
IMI 13,202 149,692
Morgan 11,288 Total Consumer Staples 456,963
Rotork 5,962
XP Power 2,974 HEALTH CARE
33,426 Medical Equipment and Services
Smith & Nephew 12,586
General Industrials 12,586
Swire Pacific(1) 21,725
Smiths 13,720 Pharmaceuticals and Biotechnology
Mondi 11,319 AstraZeneca 64,354
46,764 GSK 40,380
Novartis(1) 18,752
Industrial Engineering Merck(1) 16,285
Vesuvius 11,196 Johnson & Johnson(1) 12,010
11,196 151,781
Total Health Care 164,367
Valuation Valuation
31 December 2024 31 December 2024
£'000 £'000
CONSUMER DISCRETIONARY Investment Banking and Brokerage Services
Retailers M&G 51,389
Kingfisher 11,311 IG 39,620
Halfords 3,930 3i 35,640
15,241 Schroders 23,872
St. James's Place 19,519
Media Rathbones 14,940
RELX 92,175 TP ICAP 11
,6
10
92,175 196,590
Household Goods and Home Construction Life Insurance
Persimmon 17,103 Phoenix 44,028
Taylor Wimpey 15,690 Legal & General 43,662
32,793 Aviva 40,777
Prudential 7,642
Travel and Leisure 136,109
Young 2,475
2,475 Non-life Insurance
Total Consumer Discretionary 142,684 Munich Re(1) 28,985
Beazley 20,413
TELECOMMUNICATIONS Direct Line Insurance 12,118
Telecommunications Service Providers Hiscox 9,189
Deutsche Telekom(1) 19,651 Sabre Insurance 6,555
BT 14,045 77,260
Vodafone 12,973 Total Financials 698,559
Verizon Communications(1) 12,782
59,451 REAL ESTATE
Total Telecommunications 59,451 Real Estate Investment Trusts
Land Securities 40,880
UTILITIES British Land 30,797
Electricity Segro 12,614
SSE 26,466 84,291
26,466 Total Real Estate 84,291
( )
Gas, Water and Multi-utilities TECHNOLOGY
National Grid 53,701 Software and Computer Services
Severn Trent 28,842 Sage 21,760
United Utilities 10,515 21,760
93,058 Total Technology 21,760
Total Utilities 119,524
TOTAL INVESTMENTS 2,260,571
FINANCIALS
Banks
HSBC 105,230 UK investments 2,065,500
NatWest 71,373 Overseas investments 195,071
Barclays 52,021 TOTAL INVESTMENTS 2,260,571
Lloyds Banking 51,493
Nationwide Building Society 10.25% Var Perp CCDS 8,483
288,600
(1) Overseas listed
All classes of equity in any one company are treated as one investment.
PRINCIPAL RISKS AND UNCERTAINTIES
The principal risks and uncertainties associated with the Company's business
can be divided into the following main areas:
· Portfolio and market price
· Dividend income
· Investment activity, gearing and performance
· Tax and regulatory
· Operational
Information on these risks and how they are managed is given in the Annual
Report for the year ended 30 June 2024. In the view of the Board, these
principal risks and uncertainties at the year end remain and are as applicable
to the remaining six months of the financial year as they were to the six
months under review.
DIRECTORS' RESPONSIBILITY STATEMENT
The Directors confirm that, to the best of their knowledge:
• the condensed set of financial statements has been prepared in accordance with
FRS 104 "Interim Financial Reporting".
• the Interim Management Report includes a fair review of the information
required by Disclosure Guidance and Transparency Rule 4.2.7R (indication of
important events during the first six months and description of the principal
risks and uncertainties for the remaining six months of the year); and
• the Interim Management Report includes a fair review of the information
required by Disclosure Guidance and Transparency Rule 4.2.8R (disclosure of
related party transactions and changes therein).
On behalf of the Board
Sir Laurie Magnus CBE
Chairman
20 February 2025
INCOME STATEMENT
(Unaudited) (Unaudited) (Audited)
Half-year ended Half-year ended Year ended
31 December 2024 31 December 2023 30 June 2024
Revenue Capital Revenue Capital Revenue Capital
return return Total return return Total return return Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Gains on investments held at fair value through profit or loss - 18,690 18,690 - 92,532 92,532 - 200,864 200,864
Income from investments held at fair value through profit or loss 44,017 - 44,017 46,388 - 46,388 109,335 - 109,335
Other interest receivable and similar income 111 - 111 185 - 185 371 - 371
Gross revenue and capital gains 44,128 18,690 62,818 46,573 92,532 139,105 109,706 200,864 310,570
Management fee (969) (2,261) (3,230) (961) (2,242) (3,203) (1,927) (4,497) (6,424)
Other administrative expenses (591) - (591) (468) - (468) (1,009) - (1,009)
Net return before finance costs and taxation 42,568 16,429 58,997 45,144 90,290 135,434 106,770 196,367 303,137
Finance costs (925) (1,976) (2,901) (737) (1,535) (2,272) (1,666) (3,520) (5,186)
Net return before taxation 41,643 14,453 56,096 44,407 88,755 133,162 105,104 192,847 297,951
Taxation on net return (161) - (161) (201) - (201) (533) - (533)
Net return after taxation 41,482 14,453 55,935 44,206 88,755 132,961 104,571 192,847 297,418
Return per ordinary share (note 2) 8.39p 2.93p 11.32p 8.80p 17.67p 26.47p 20.87p 38.48p 59.35p
The total columns of this statement represent the Company's Income Statement,
prepared in accordance with FRS 104. The revenue and capital columns are
supplementary to this and are published under guidance from the Association of
Investment Companies.
The Company has no recognised gains or losses other than those disclosed in
the Income Statement and Statement of Changes in Equity. All items in the
above statement derive from continuing operations. No operations were acquired
or discontinued during the period.
The accompanying notes are an integral part of these financial statements.
STATEMENT OF CHANGES IN EQUITY
Called-up share capital Share premium account Capital redemption reserve Other
£'000 £'000 £'000 capital Revenue
Half-year ended 31 December 2024 (unaudited) reserves reserve Total
£'000 £'000 £'000
At 1 July 2024 125,666 1,072,624 2,707 849,910 46,621 2,097,528
Net return on ordinary activities after taxation - - - 14,453 41,482 55,935
Buyback of 28,278 ordinary shares for treasury - - - (119) - (119)
Dividends paid - - - - (51,905) (51,905)
At 31 December 2024 125,666 1,072,624 2,707 864,244 36,198 2,101,439
Called-up share capital Share premium account Capital redemption reserve Other
£'000 £'000 £'000 capital Revenue
Half-year ended 31 December 2023 (unaudited) reserves reserve Total
£'000 £'000 £'000
At 1 July 2023 124,339 1,053,061 2,707 691,463 44,322 1,915,892
Net return on ordinary activities after taxation - - - 88,755 44,206 132,961
Issue of 5,310,000 of new ordinary shares 1,328 19,563 - - - 20,891
Dividends paid - - - - (50,759) (50,759)
At 31 December 2023 125,667 1,072,624 2,707 780,218 37,769 2,018,985
Called-up share capital Share premium account Capital redemption reserve Other
£'000 £'000 £'000 capital Revenue
Year ended 30 June 2024 reserves reserve Total
(audited) £'000 £'000 £'000
At 1 July 2023 124,339 1,053,061 2,707 691,463 44,322 1,915,892
Net return after taxation - - - 192,847 104,571 297,418
Buyback of 8,301,867 ordinary shares for treasury - - - (34,400) - (34,400)
Issue of 5,310,000 new ordinary shares 1,327 19,563 - - - 20,890
Dividends paid - - - - (102,272) (102,272)
At 30 June 2024 125,666 1,072,624 2,707 849,910 46,621 2,097,528
( )
The accompanying notes are an integral part of these financial statements.
STATEMENT OF FINANCIAL POSITION
(Unaudited) (Unaudited) (Audited)
31 December 31 December 30 June
2024 2023 2024
£'000 £'000 £'000
Investments held at fair value through
profit or loss (note 3)
Listed at market value 2,260,571 2,126,376 2,246,245
Investment in subsidiary undertakings 347 347 347
2,260,918 2,126,723 2,246,592
Current assets
Debtors 8,892 9,541 12,911
Cash at bank - 1,753 -
8,892 11,294 12,911
Creditors: amounts falling due within one year (52,670) (3,387) (46,307)
Net current (liabilities)/assets (43,778) 7,907 (33,396)
Total assets less current liabilities 2,217,140 2,134,630 2,213,196
Creditors: amounts falling due after more than one year (115,701) (115,645) (115,668)
Net assets 2,101,439 2,018,985 2,097,528
Capital and reserves
Called-up share capital (note 4) 125,666 125,667 125,666
Share premium account 1,072,624 1,072,624 1,072,624
Capital redemption reserve 2,707 2,707 2,707
Other capital reserves (note 5) 864,244 780,218 849,910
Revenue reserve 36,198 37,769 46,621
Equity shareholders' funds 2,101,439 2,018,985 2,097,528
Net asset value per ordinary share (note 6) 425.10p 401.66p 424.29p
The accompanying notes are an integral part of these financial statements.
NOTES
1. Accounting Policy - Basis of Preparation
The condensed set of financial statements has been prepared in accordance with
FRS 104, Interim Financial Reporting, FRS 102, the Financial Reporting
Standard applicable in the UK and Republic of Ireland and the Statement of
Recommended Practice for "Financial Statements of Investment Trust Companies
and Venture Capital Trusts", issued in July 2022.
For the period under review, the Company's accounting policies have not varied
from those described in the Annual Report for the year ended 30 June 2024.
These financial statements have been neither audited nor reviewed by the
Company's auditors.
As an investment fund, the Company has the option, which it has taken, not to
present a cash flow statement. A cash flow statement is not required when an
investment fund meets all the following conditions: substantially all of the
entity's investments are highly liquid and are carried at market value; and
where a statement of changes in equity is provided.
2. Return per Ordinary Share
(Unaudited) (Unaudited) (Audited)
Half-year Half-year Year ended
ended ended 30 June
31 December 31 December 2024
2024 2023 £'000
£'000 £'000
The return per ordinary share is based on the following figures:
Revenue return 41,482 44,206 104,571
Capital return 14,453 88,755 192,847
Total 55,935 132,961 297,418
Weighted average number of ordinary shares in issue for each period 494,334,723 502,285,221 501,134,608
Revenue return per ordinary share 8.39p 8.80p 20.87p
Capital return per ordinary share 2.93p 17.67p 38.48p
Total return per ordinary share 11.32p 26.47p 59.35p
The Company does not have any dilutive securities, therefore, the basic and
diluted returns per share are the same.
3. Financial Instruments
The financial assets and financial liabilities are either carried in the
Statement of Financial Position at their fair value or the Statement of
Financial Position amount is a reasonable approximation of fair value (debtors
and creditors falling due within one year).
The table below sets out fair value measurements of the investments using the
FRS 102 fair value hierarchy.
Financial assets at fair value through profit or loss at 31 December 2024
Level 1 Level 2 Level 3 Total
£'000 £'000 £'000 £'000
Equity investments 2,136,162 - 347 2,136,509
Total 2,136,162 - 347 2,136,509
Financial assets at fair value through profit or loss at 31 December 2023
Level 1 Level 2 Level 3 Total
£'000 £'000 £'000 £'000
Equity investments 2,126,376 - 347 2,126,723
Total 2,126,376 - 347 2,126,723
Financial assets at fair value through profit or loss at 30 June 2024
Level 1 Level 2 Level 3 Total
£'000 £'000 £'000 £'000
Equity investments 2,246,245 - 347 2,246,592
Total 2,246,245 - 347 2,246,592
Financial liabilities
The secured notes, preference stocks and preferred ordinary stock are carried
in the Statement of Financial Position at par.
At 31 December 2024, the aggregate fair value of the preferred and preference
stock was £2,635,000 (31 December 2023: £2,276,000; 30 June 2024:
£2,469,000).
At 31 December 2024, the fair value of the secured notes was estimated to be
£84,840,000 (31 December 2023: £91,658,000; 30 June 2024: £87,069,000).
The fair value of the secured notes is calculated using a discount rate which
reflects the yield on a UK gilt of similar maturity plus a suitable credit
spread.
The preference stocks and preferred ordinary stock are categorised as Level 1
in the fair value hierarchy. The secured notes are categorised as Level 3 in
the fair value hierarchy.
Fair value hierarchy categories
Categorisation within the hierarchy has been determined on the basis of the
lowest level input that is significant to the fair value measurement of the
relevant asset as follows:
Level 1: The unadjusted quoted prices in an active market for identical assets
or liabilities that the entity can access at the measurement date;
Level 2: Inputs other than quoted prices included within Level 1 that are
observable (i.e., developed using market data) for the asset or liability,
either directly or indirectly; and
Level 3: Inputs are unobservable (i.e., for which market data is unavailable)
for the asset or liability.
The valuation techniques used by the Company are explained in the accounting
policies in note 1 in the Company's Annual Report for the year ended 30 June
2024.
4. Share Capital
During the half-year ended 31 December 2024, 28,278 ordinary shares were
bought back into treasury for a net payment of £119,000 (half-year ended 31
December 2023: 5,310,000 new ordinary shares issued for total proceeds of
£20,890,000; year ended 30 June 2024: 5,310,000 new ordinary shares issued
for total proceeds of £20,890,000 and 8,301,867 ordinary shares bought back
into treasury for a net payment of £34,400,000).
The number of ordinary shares in issue (excluding shares held in treasury) at
31 December 2024 was 494,334,723 (31 December 2023: 502,664,868; 30 June 2024:
494,363,001). There were 8,330,145 shares in treasury at 31 December 2024 (31
December 2023: nil and 30 June 2024: 8,301,867).
Since 31 December 2024 to 19 February 2025, a further 10,191,050 shares have
been bought back for treasury.
5. Other Capital Reserves
At 31 December 2024, the other capital reserves are made up of the capital
reserve arising on investments sold which was £378,509,000 (31 December 2023:
£362,881,000; 30 June 2024: £346,288,000) and is distributable and the
capital reserve arising on revaluation of investments held which was
£485,735,000 (31 December 2023: £417,337,000; 30 June 2024: £503,622,000)
and which is not distributable.
6. Net Asset Value per Ordinary Share
The net asset value per ordinary share is based on the net assets attributable
to the ordinary shares of £2,101,439,000 (31 December 2023: £2,018,985,000;
30 June 2024: £2,097,528,000) and on 494,334,723 ordinary shares (excluding
shares held in treasury) (31 December 2023: 502,664,868; 30 June 2024:
494,363,001) being the number of ordinary shares at the period end.
7. Transaction Costs
Purchase transaction costs for the half-year ended 31 December 2024 were
£508,000 (half-year ended 31 December 2023: £390,000; year ended 30 June
2024: £1,141,000). These comprise mainly stamp duty and commissions. Sale
transaction costs for the half-year ended 31 December 2024 were £42,000
(half-year ended 31 December 2023: £23,000; year ended 30 June 2024:
£71,000).
8. Dividends
A first interim dividend of 5.25p per ordinary share was paid on 29 November
2024. The second interim dividend of 5.25p per ordinary share (declared on 5
December 2024) will be paid on 28 February 2025 to shareholders on the
register on 24 January 2025. The Company's shares went ex-dividend on
23 January 2025.
9. Related Party Transactions
Other than the relationship between the Company and its Directors, the
provision of services by Janus Henderson is the only related party arrangement
currently in place. Other than fees payable by the Company in the ordinary
course of business and the provision of marketing services, there have been no
material transactions with this related party affecting the financial position
of the Company during the period under review.
10. Going Concern
The assets of the Company consist of securities that are readily realisable.
The Directors have also considered the current geo-political and macroeconomic
uncertainties and the potential for sudden catastrophic events such as
pandemics, conflict and climate events, including cash flow forecasting, a
review of covenant compliance, including the headroom above the most
restrictive covenants, and an assessment of the liquidity of the portfolio.
They have concluded that the Company has adequate resources to meet its
financial obligations, including the repayment of the bank overdraft, as they
fall due for a period of at least twelve months from the date of approval of
the financial statements. Having assessed these factors and the principal
risks, the Board has determined that it is appropriate for the financial
statements to be prepared on a going concern basis.
11. Comparative Information
The financial information contained in this half-year report does not
constitute statutory accounts as defined in Section 434 of the Companies Act
2006. The figures and financial information for the year ended 30 June 2024
are extracted from the latest published accounts and do not constitute the
statutory accounts for that year. Those accounts have been delivered to the
Registrar of Companies and included the Report of the Independent Auditors,
which was unqualified and did not include a statement under either Section
498(2) or 498(3) of the Companies Act 2006.
12. Half-Year Report
An abbreviated version of the half-year report, the 'Update', will be posted
to shareholders in early March 2025. The Update will also be available on the
Company's website www.cityinvestmenttrust.com
(http://www.cityinvestmenttrust.com) or in hard copy from the Company's
registered office.
13. General Information
Company Status
The City of London Investment Trust plc is a UK domiciled investment trust
company.
ISIN number / SEDOL: ordinary shares: GB0001990497 / 0199049
London Stock Exchange (TIDM) Code: CTY
Global Intermediary Identification Number (GIIN): S55HF7.99999.SL.826
Legal Entity Identifier (LEI): 213800F3NOTF47H6AO55
Company Registration Number
34871
Registered Office
201 Bishopsgate, London EC2M 3AE
Directors and Secretary
The Directors of the Company are Sir Laurie Magnus CBE (Chairman), Sally Lake
(Chair of the Audit and Risk Committee), Clare Wardle (Senior Independent
Director), Robert Edward (Ted) Holmes and Ominder Dhillon.
The Corporate Secretary is Janus Henderson Secretarial Services UK Limited,
represented by Sally Porter, ACG.
Website
Details of the Company's share price and net asset value, together with
general information about the Company, monthly factsheets and data, copies of
announcements, reports and details of general meetings can be found at
www.cityinvestmenttrust.com (http://www.cityinvestmenttrust.com) .
For further information please contact:
Job Curtis
Fund Manager
The City of London Investment Trust plc
Telephone: 020 7818 4367
Dan Howe
Head of Investment Trusts
Janus Henderson Investors
Telephone: 020 7818 1818
Harriet Hall
PR Director, Investment Trusts
Janus Henderson Investors
Telephone: 020 7818 2919
Neither the contents of the Company's website nor the contents of any website
accessible from hyperlinks on the Company's website (or any other website) is
incorporated into, or forms part of, this announcement.
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