CT UK High Inc Tst CT UK High Inc-CHIB - Annual Financial Report
30/05/2025 07:00
RNS Number : 6809K CT UK High Income Trust PLC 30 May 2025 To: RNS From: CT UK High Income Trust PLC Date: 30 May 2025 LEI: 213800B7D5D7RVZZPV45 Statement of Audited Results for the year ended 31 March 2025 Financial Highlights · Net asset value total return(1) per share for the financial year was +13.5%, compared to the total return of the Benchmark(2) of +10.5%. · Ordinary share price total return(1) per share for the financial year was +25.0%, compared to the total return of the Benchmark(2) of +10.5%. · B share price total return(1) per share for the financial year was +24.0% compared to the total return of the Benchmark(2) of +10.5%. · Net asset value total return per share for the three year performance measurement period ended 31 March 2025 was +26.6%, compared to the total return of the Benchmark(2) of +23.3%. · Distribution yield of 5.8% on Ordinary shares at 31 March 2025, compared to the yield on the FTSE All-Share Index of 3.5%. Total dividends increased by 3.0% to 5.79p per Ordinary share compared to the prior year. · Distribution yield of 6.0% on B shares at 31 March 2025, compared to the yield on the FTSE All-Share Index of 3.5%. Total capital repayments increased by 3.0% to 5.79p per B share compared to the prior year. (1) Yield and total return - See Alternative Performance Measures (2) Benchmark - FTSE All-Share Index. Chairman's Statement "+25.0% and +24.0% share price total return for the financial year for the Ordinary shares and B shares respectively and outstanding three year NAV total return performance." I am pleased to present the annual results of CT UK High Income Trust PLC for the financial year ended 31 March 2025. Whilst I am frustrated and saddened to note that the geopolitical situation has not improved, I am delighted to be able to report on another successful year for shareholders under the expert stewardship of Portfolio Manager David Moss who has generated index-beating returns, an increase in dividends and capital repayments and is rebuilding the revenue reserve. Under continued tension between Israel and Palestine and the senseless and seemingly endless war in Ukraine, it is remarkable that stock markets, in general, have performed as well as they have but, as I have inferred before, maintaining composure and staying alert to the two imposters of triumph and disaster - perhaps more commonly known as opportunities and risks in the investment world - calls for a high degree of competence and professionalism. David has managed, once again, to maintain his focus and concentrate on producing growth in capital and dividends for shareholders. Over the last few years, the Board has employed the Company's revenue reserve to maintain and grow distributions, but this year, a transfer to the revenue reserve of £635,000 has been possible. After payment of the fourth interim dividend on 2 May 2025, the reserve stands at a healthy £2.9 million, representing 60% of the current annual dividend payout. Your Board has made the rebuilding of the revenue reserve a high priority and is delighted that this objective is being achieved whilst also increasing dividend payments to shareholders, now for the twelfth year in a row. Performance In the financial year to 31 March 2025 your Company produced a Net Asset Value (NAV) total return of +13.5% against a total return of +10.5% from the FTSE All-Share Index, the benchmark index. This is a very welcome and highly commendable outperformance of +3.0 percentage points against an index which can be hard to beat and performance is considered further in the Manager's Review. Gearing was maintained throughout the year and this was the correct call for most of the time. David has full discretion over levels of gearing and, as he explains in the Manager's Report that follows, gearing was reduced in the period after Christmas when disquiet over the potential damage to world trade by the Trump Tariff Tantrum and concerns over "what Donald might do next" unsettled stock markets. This proved a prudent decision. Continuation Vote Shareholders may recall that, at the 2022 Annual General Meeting, approval was granted of the Board's proposal to reduce the performance-measurement period from five years to three years. Consequently, if the Company's NAV total return performance is below the benchmark index over any such three-year period, shareholders will be offered a vote as to whether or not the Company continues. As a result, the latest performance measurement period was from 1 April 2022 to 31 March 2025. I have already commended David for his management and performance over the last financial year but, even more impressively, he has produced an NAV total return over the three-year period ended 31 March 2025 of +26.6% against +23.3% from the benchmark index, an outperformance of +3.3 percentage points. The Board is delighted with this outperformance and, particularly so for the positive outcome it has generated for shareholders. As a result, there will be no requirement to offer a continuation vote at the 2025 AGM. The present performance measurement period is 1 April 2025 to 31 March 2028. Share Price Performance and Discount to NAV At the financial year end, the Company's Ordinary share and B share prices stood at discounts to the net asset value of just -2.1% and -4.1% respectively, a welcome tightening since this time last year reflecting consistently improving performance and increased demand for the Company's shares. In response to this demand, 1,000,000 Ordinary shares were resold out of treasury, at a small premium to NAV to ensure no dilution for existing shareholders, making this Company one of only a handful that issued shares during the year. During the year 250,000 B shares were bought back for treasury at a discount to NAV of approximately 12%, which was also helpful for the ratio of Ordinary shares to B shares. The average discount levels at which the Company's Ordinary shares and B shares traded relative to net asset value in the financial year were 5.5% and 9.6% respectively and it remains the Board's preference for the discounts to be in single figures whilst maintaining the balance of supply and demand in the market for both share classes on a daily basis. Consequently, the share price total return for the Ordinary shares and B shares was +25.0% and +24.0% respectively. Dividends and Capital Repayments As already mentioned, your Board recognises the importance of dividends to shareholders and has utilised the Company's revenue reserve to increase dividend payments to Ordinary shareholders in recent years although a significant transfer to reserves occurred this year. Total distributions to shareholders this year increased by 3.0% to 5.79p per share compared to the previous year. In the year to 31 March 2025, the revenue earnings per share increased by 19.7%. After payment of the fourth interim dividend on 2 May 2025, the revenue reserve is £2.9 million, representing 3.49p per Ordinary share. Your Company has now increased its distributions to shareholders in each financial year since 2013. The total dividend/capital repayment for the year to 31 March 2025 represented a yield on the Ordinary shares and B shares of 5.8% and 6.0% respectively based on the Ordinary share price and B share price of 99.0p and 97.0p respectively at 31 March 2025. B Shares Holders of B shares will be aware that they have a right to receive capital repayments at the same time as, and in an amount equal to, each dividend paid in respect of Ordinary shares. These capital repayments are paid out of the special capital reserve for as long as this reserve remains sufficient. If and when this reserve is exhausted, the Company's Articles of Association provide that all Ordinary shares and all B shares automatically convert into Ordinary shares with identical rights, including the receipt of dividends, taxable as income, in place of previous capital repayments. The current estimate of the remaining life of this capital reserve is approximately three years. Your Board is keeping this eventuality under review and will update all shareholders as appropriate. A fuller explanation of the Company's structure can be found in the Company's Annual Report and Financial Statements. Gearing As at the end of the year under review, the Company had a total borrowing facility of £15 million through an unsecured Revolving Credit Facility with The Royal Bank of Scotland International Limited. Your Board believes that an investment company should use gearing to enhance returns to shareholders whenever possible and encourages the Portfolio Manager to use his discretion accordingly. As at the year end, this facility had been fully drawn down, of which £9.5m was held in cash. Annual General Meeting (AGM) The AGM will be held at 11am on 28 July 2025 at Columbia Threadneedle Investments, Cannon Place, 78 Cannon Street, London EC4N 6AG. It is an opportunity for shareholders to engage with the Board and Manager and I hope you will be able to attend. Outlook I see from my comments last year that my optimism about inflation and interest rates was misplaced. Global tensions have continued and there's no doubt that more recent concerns over the tariff wars disrupting trade have contributed to the tricky economic situation in which the new Labour Government now finds itself. One must concede that the Government has a lot on its plate at the moment but some of the domestic issues it now faces are partly due to the Chancellor's decisions in the autumn budget and the largesse she immediately bestowed upon the striking train drivers and doctors. Don't for one minute think this has settled the problem permanently as this is likely to have merely strengthened their resolve to come back for more this year, and for other unions to follow suit. Additionally, there is already evidence that increasing the National Insurance contribution paid by employers is likely to dampen hiring over the medium term, reduce profits and stunt economic growth. Similarly, I think the Bank of England has been extremely slow in recognising the cost difficulties faced in the "real world" by businesses and households, focusing almost solely on the 2% inflation target rather than easing the burden with lower interest rates. The Bank of England did reduce the key interest rate by 0.25% at its May meeting but, barring an annus horribilis, rates must come down further and faster this year, regardless of the predictable and almost inevitable variations in the monthly inflation numbers. So, I've painted a very merry and upbeat picture, haven't I? In fact, I am far more optimistic than this suggests but stating a few simple facts does highlight the constant hurdles that need to be addressed and overcome by investment managers when constructing portfolios with the specific intent of producing positive capital returns and growing dividends for shareholders. It is no easy task to remain consistently focused when so much is going on but your Board has great faith in Portfolio Manager David Moss and confidence that his good work will continue. The Company's portfolio is in good shape, given all the variables. Gearing has been deployed successfully and sensibly over several years and having at the Portfolio Manager's disposal a wholly flexible borrowing facility means that an optimum level can be maintained and quickly finessed as required. Your Board encourages David to use his discretion accordingly in this respect and firmly believes that such a benefit of the closed-end structure of an investment company offers significant advantages to shareholders. As ever, thank you for being a shareholder in CT UK High Income Trust PLC. Your support is very much appreciated and I look forward to the year ahead. Andrew Watkins Chairman 29 May 2025 Manager's Review In last year's review we discussed how equity markets had been driven by the consequences of the Covid response i.e. a spike in inflation and a corresponding sharp rise in interest rates. We had hoped that this year the main topic would be the subsequent reversal of these trends - a backdrop that would have been a positive one from an economic perspective. Unfortunately, while the Bank of England and other central banks have cut rates, stickier than hoped inflation together with other issues has meant that the cuts have been less than anticipated and certainly for the UK, longer term rates have stayed at high levels. When we refer to other issues, we primarily mean politics which has probably been the biggest driver of markets with elections in the last year in the UK but also France, the US and latterly in Germany. For most of 2024, the biggest influence on the performance of UK equities was July's UK election and the subsequent actions of the newly elected Labour government. After the continual volatility and uncertainty of the last Conservative government it is, perhaps in hindsight, not surprising that the British people gave the Labour party such a resounding majority. Hopes were high that a new government could be a force for growth. Unfortunately, the positivity didn't last long with the Labour party embarking on a summer campaign of continually reminding us of the challenges facing the country. While this did little to help investor or business confidence, the new government's first budget drew significant criticism. Having made clear commitments around not raising income or National Insurance contributions for individuals, the new Chancellor argued that public finances were in such a state that a rise in employer National Insurance contributions was required. This combined with reduced thresholds elsewhere proved unpopular. If the impact of the UK election wasn't enough, we had the US election in November 2024 with President Trump returning for a second term in the White House. We were somewhat surprised to see the strong positive market reaction to the result given that some of the pre-election rhetoric was decidedly market unfriendly in our view. We have seen tangible evidence of this with the new Administration's actions on tariffs since our year end in March. Much has been made of 'US exceptionalism' which appeared to be an attempt to justify lofty valuations in the US market. The announcement by Chinese AI company DeepSeek that they could get similar results to ChatGPT at a fraction of the cost hurt companies associated with data centres and AI. Sharp share price falls were witnessed. It is arguable that President Trump's actions of late have further hurt the attractiveness of the US to investors - both in terms of tariff announcements but also by the shifting attitudes towards NATO partners and the big change in approach to negotiations around ending the war in Ukraine. This can only help the UK as an investment destination and investors in Europe were positively surprised by the speed of actions of German politicians when they acted to change their fiscal rules before the new government assumed control. The UK is, of course, not in the European Union but remains a key partner of Europe and with German spending likely to be several hundreds of billions of euros over several years we believe all European countries can benefit. Performance Despite all of the turmoil, UK equities delivered positive performance in the year to 31 March 2025, with the FTSE All-Share delivering a total return of +10.5%. We are pleased to say that the Company also had another positive year and strongly outperformed the benchmark with an NAV total return of +13.5%. While sector allocation was positive (principally by not owning anything in the beverages sector) the dominant contributor to the outperformance was strong stock selection. Pleasingly our stock choices were positive across several sectors for example emphasising Imperial Brands over BAT in tobacco, favouring Shell over BP in oil & gas and Rolls-Royce in aerospace & defence. Rolls-Royce also helped income generation after it returned to the dividend paying list for the first time in many years. Another notable positive was our biggest single contributor NatWest which produced consistently strong results during the year despite the lacklustre economic backdrop. Specialist buy to let lender OSB Group was also notable after it overcame issues that plagued it in the previous year together with Irish housebuilder Cairn Homes which had another strong year as it benefited from being the biggest player in a strong housing market, desperately short of new quality stock. The other positive worth mentioning was Hargreaves Lansdown which after a period of poor performance was taken over by private equity firm CVC. The acquisition was another example that highlighted how corporate investors recognised the low valuation of UK shares. Portfolio Activity While activity was substantially lower than the previous year, we still exited several positions and added new ones. While we - like Warren Buffet - believe that 'the best holding period is forever' we will trade when believing it is advantageous for our shareholders. This could be because we see limited further upside in a held name but will most often be because we find another opportunity that is more compelling. It may be that a new holding offers greater scope for upside, or it pays a higher dividend yield or even serves to enhance diversification of income streams within the portfolio. While we remain a holder in Cairn Homes for example, we have a smaller position than we did a year ago as a very strong share price enabled us to lock-in gains and re-invest elsewhere in opportunities offering a higher level of income. One of our biggest additions was to buy HSBC at a valuation we deemed attractive and with a dividend yield (at purchase) around double the market. The business has made significant progress on simplifying operations by selling the French and Canadian retail businesses, returning this capital to shareholders and re-investing in the long-term growth area of Asian Wealth Management. The addition was part funded by reducing positions in other banks where performance had been strong and the yields lower. In the UK we sold our position in housebuilder Vistry after they decided to move to returning the majority of cash to shareholders via share buyback rather than dividend. Correspondingly, we switched into fellow housebuilder Taylor Wimpey given the attraction of its dividends. While we do expect share buybacks to form an increasing part of shareholder returns, we do not anticipate the Vistry action to be widespread as this reflects their more unique US shareholder base. One other notable switch was selling Irish building materials company CRH and then the subsequent purchase of smaller UK listed peer Breedon Group. CRH had performed very strongly for us since purchase and Breedon was significantly cheaper and with a higher dividend yield. In many ways Breedon reminds us of CRH 30 years ago - they have a strong position in Ireland, a good position in the UK (albeit in a weak market) and have a nascent position in the US - a market we expect to grow strongly in the coming years. Hence Breedon is a great example of a smaller UK business where we can receive good levels of income now, due to the attractive entry price and believe we can look forward to many years of growth. We aim to offer shareholders the prospect of capital growth as well as a high level of income and lower yielding stocks that we have added to the portfolio include defence company BAE Systems and financial data business Experian. One positive impact of the new US President is to make Europe realise they need to spend more on their own defence, a fact also true of the UK. As a global leading provider of defence equipment BAE Systems is well placed, in our view, to benefit from what is likely to be a multi-decade increase in defence spending and Experian as a leading financial data platform in the Americas will see an accelerating growth profile, rising margins and free cashflow as proprietary data becomes ever more valuable. We sold out of equally low dividend stocks such as accountancy software companies Sage Group and French electrical equipment company Schneider Electric after very strong performance left valuations looking demanding. The changing nature of electricity generation is putting tremendous pressure on the grid and National Grid, the listed company which manages the UK's electricity grid, has to invest enormously in the coming years to be able to deal with these changes. Importantly as a highly regulated entity the return that National Grid earns on these investments is decided by the regulator and is therefore highly visible. When National Grid then raised equity to help it fund future investment we took advantage of a weaker share price to start a position. National Grid pays an attractive dividend now but importantly the visibility it has on its allowed returns means we can be confident in this dividend growing well into the future. Our view has consistently been that the ability to utilise leverage is a key positive of Investment Trusts and that we will look to be structurally leveraged, rather than utilising the borrowing facility to take tactical views on the market. That said as the famous quote goes "when the facts change, I change my mind" and after a strong 2024 and a good start to the year we did reduce our leverage in the first quarter of 2025. We were hesitant to believe the widely accepted view that President Trump's new administration would again be positive for markets, as many of the comments and potential policies seemed to us negative, with the US in a very different debt position this time, in an economy that was already slowing. At the very least we expected volatility to increase which of course has come to pass. This was a temporary reduction in leverage and we have used our borrowing facility to re-invest as markets have come down but our net borrowing remains below our maximum at this point, alive to the opportunities we expect to see in the weeks and months ahead. Outlook High interest rates together with persisting concerns on the UK economy and the government's borrowing requirements will likely be key determinants of UK equity performance in the year ahead. In the near term however, it is likely that the single biggest driver of all markets will be US tariffs and the impact of these on businesses across the globe. As always what is most important for us is the quality of companies we invest in and the price we pay rather than any economic outcome. That said, few of our investee companies operate in isolation and must be able to function efficiently in an uncertain environment. We do though, still expect inflation and interest rates to fall albeit at a slower pace and this should still be helpful for equities. We remain positive on domestically focused businesses with the UK consumer in better shape than many believe and many of these companies more resilient to tariffs. Helpfully, a slowing US economy, doubts as to whether the huge spending on AI will ever deliver a significant return, together with uncertainty provided by the Trump presidency, have caused more investors to question valuations in the US. We (and others) have written extensively about the low relative valuation of the UK market but thus far this view appears to have gone broadly unnoticed. While not an investment rationale in itself, there would only need to be a modest increase in UK equity allocations by global investors for positive impetus to be generated. In the meantime, we can invest in companies that have the levels of dividends we need to meet our shareholder requirements not because they are weak or low returning businesses, but because they are in an out of favour market - the UK - and typically in out of favour sectors. The result is that these companies can pay high dividends now but also appear well placed to grow income payments in the future. Dividends grew 4% last year in the UK, and we would expect more growth this coming 12 months. It is likely though that share buybacks will again grow more than dividends as companies recognise that buying their own shares at low valuations represents a very attractive way to generate shareholder returns. Lastly, as we have increasingly seen, if investors don't recognise the low valuations of UK companies, acquirors will, whether corporate or private equity. David Moss Portfolio Manager Columbia Threadneedle Investment Business Limited 29 May 2025 Statement of Comprehensive Income
| Year to 31 March 2025 | ||||
| Note | Revenue | Capital | Total | |
| £'000 | £'000 | £'000 | ||
| Capital gains on investments | ||||
| Gains on investments held at fair value through profit or loss | - | 9,678 | 9,678 | |
| Exchange (losses)/gains | (3) | 2 | (1) | |
| Revenue | ||||
| Income | 6,487 | - | 6,487 | |
| Total income | 6,484 | 9,680 | 16,164 | |
| Expenditure | ||||
| Investment management fee | (201) | (469) | (670) | |
| Other expenses | (488) | - | (488) | |
| Total expenditure | (689) | (469) | (1,158) | |
| Profit before finance costs and tax | 5,795 | 9,211 | 15,006 | |
| Finance costs | ||||
| Interest on bank loans | (279) | (652) | (931) | |
| Total finance costs | (279) | (652) | (931) | |
| Profit before tax | 5,516 | 8,559 | 14,075 | |
| Taxation | (32) | - | (32) | |
| Profit and total comprehensive income for the year | 5,484 | 8,559 | 14,043 | |
| Earnings per share | 2 | 4.80p | 7.50p | 12.30p |
| Year to 31 March 2024 | ||||
| Note | Revenue | Capital | Total | |
| £'000 | £'000 | £'000 | ||
| Capital gains on investments | ||||
| Gains on investments held at fair value through profit or loss | - | 7,674 | 7,674 | |
| Exchange gains | 1 | 9 | 10 | |
| Revenue | ||||
| Income | 5,603 | - | 5,603 | |
| Total income | 5,604 | 7,683 | 13,287 | |
| Expenditure | ||||
| Investment management fee | (186) | (435) | (621) | |
| Other expenses | (518) | - | (518) | |
| Total expenditure | (704) | (435) | (1,139) | |
| Profit before finance costs and tax | 4,900 | 7,248 | 12,148 | |
| Finance costs | ||||
| Interest on bank loans | (269) | (627) | (896) | |
| Total finance costs | (269) | (627) | (896) | |
| Profit before tax | 4,631 | 6,621 | 11,252 | |
| Taxation | (30) | - | (30) | |
| Profit and total comprehensive income for the year | 4,601 | 6,621 | 11,222 | |
| Earnings per share | 2 | 4.01p | 5.77p | 9.78p |
| 31 March 2025 | 31 March 2024 | |||||
| Note | £'000 | £'000 | ||||
| Non-current assets | ||||||
| Investments held at fair value through profit or loss | 122,140 | 121,267 | ||||
| Current assets | ||||||
| Receivables | 1,287 | 1,203 | ||||
| Cash and cash equivalents | 9,514 | 1,086 | ||||
| 10,801 | 2,289 | |||||
| Total assets | 132,941 | 123,556 | ||||
| Current liabilities | ||||||
| Payables | (1,875) | (790) | ||||
| Bank loan | (15,000) | (15,000) | ||||
| (16,875) | (15,790) | |||||
| Total liabilities | (16,875) | (15,790) | ||||
| Net assets | 116,066 | 107,766 | ||||
| Equity attributable to equity shareholders | ||||||
| Share capital | 134 | 134 | ||||
| Share premium | 262 | 153 | ||||
| Capital redemption reserve | 5 | 5 | ||||
| Buy-back reserve | 79,682 | 79,022 | ||||
| Special capital reserve | 6,573 | 8,320 | ||||
| Capital reserves | 25,003 | 16,444 | ||||
| Revenue reserve | 4,407 | 3,688 | ||||
| Equity shareholders' funds | 116,066 | 107,766 | ||||
| Net asset value per Ordinary share | 6 | 101.12p | 94.51p | |||
| Net asset value per B share | 6 | 101.12p | 94.51p | |||
| Year to 31 March 2025 | Year to 31 March 2024 | |
| £'000 | £'000 | |
| Cash flows from operating activities | ||
| Profit before taxation | 14,075 | 11,252 |
| Adjustments for: | ||
| Gains on investments held at fair value through profit or loss | (9,678) | (7,674) |
| Exchange losses/(gains) | 1 | (10) |
| Interest income | (146) | (84) |
| Interest received | 146 | 84 |
| Dividend income | (6,335) | (5,519) |
| Dividend income received | 6,133 | 5,727 |
| (Increase)/Decrease in receivables | (4) | 1 |
| (Decrease)/Increase in payables | (14) | 45 |
| Finance costs | 931 | 896 |
| Overseas tax recovered/(suffered) | 69 | (69) |
| Cash flows from operating activities | 5,178 | 4,649 |
| Cash flows from investing activities Purchases of investments Sales of investments | (52,967) 62,879 | (62,065) 61,699 |
| Cash flows from investing activities | 9,912 | (366) |
| Cash flows before financing activities | 15,090 | 4,283 |
| Cash flows from financing activities | ||
| Dividends paid on Ordinary shares | (4,765) | (4,642) |
| Capital returns paid on B shares | (1,747) | (1,692) |
| Shares purchased for treasury | (216) | (1,293) |
| Shares sold from treasury | 985 | - |
| Interest on bank loans | (918) | (868) |
| Drawdown of bank loans | - | 3,000 |
| Cash flows from financing activities | (6,661) | (5,495) |
| Net increase/(decrease) in cash and cash equivalents | 8,429 | (1,212) |
| Cash and cash equivalents at the beginning of the year | 1,086 | 2,288 |
| Effect of movement in foreign exchange | (1) | 10 |
| Cash and cash equivalents at the end of the year | 9,514 | 1,086 |
| Represented by: | ||
| Cash at bank | 154 | 176 |
| Short term deposits | 9,360 | 910 |
| 9,514 | 1,086 |
| Share Capital | Share Premium | Capital Redemption Reserve | Buy-back Reserve | Special Capital Reserve | Capital Reserve - Investments sold | Capital Reserve - Investments held | Revenue Reserve | Total | |
| £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | |
| Balance as at 31 March 2024 | 134 | 153 | 5 | 79,022 | 8,320 | 1,249 | 15,195 | 3,688 | 107,766 |
| Movement during the year ended 31 March 2025 | |||||||||
| Profit/(loss) for the year | - | - | - | - | - | 9,165 | (606) | 5,484 | 14,043 |
| Total comprehensive income/ (expense) for the year | - | - | - | - | - | 9,165 | (606) | 5,484 | 14,043 |
| Transactions with owners of the Company recognised directly in equity | |||||||||
| Shares bought back for treasury | - | - | - | (216) | - | - | - | - | (216) |
| Shares sold from treasury | 109 | 876 | 985 | ||||||
| Dividends paid on Ordinary shares | - | - | - | - | - | - | - | (4,765) | (4,765) |
| Capital returns paid on B shares | - | - | - | - | (1,747) | - | - | - | (1,747) |
| Balance as at 31 March 2025 | 134 | 262 | 5 | 79,682 | 6,573 | 10,414 | 14,589 | 4,407 | 116,066 |
| Share Capital | Share Premium | Capital Redemption Reserve | Buy-back Reserve | Special Capital Reserve | Capital Reserve - Investments sold | Capital Reserve - Investments held | Revenue Reserve | Total | |
| £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | |
| Balance as at 31 March 2023 | 134 | 153 | 5 | 80,315 | 10,012 | 7,965 | 1,858 | 3,729 | 104,171 |
| Movement during the year ended 31 March 2024 | |||||||||
| (Loss)/profit for the year | - | - | - | - | - | (6,716) | 13,337 | 4,601 | 11,222 |
| Total comprehensive income/ (expense) for the year | - | - | - | - | - | (6,716) | 13,337 | 4,601 | 11,222 |
| Transactions with owners of the Company recognised directly in equity | |||||||||
| Shares bought back for treasury | - | - | - | (1,293) | - | - | - | - | (1,293) |
| Dividends paid on Ordinary shares | - | - | - | - | - | - | - | (4,642) | (4,642) |
| Capital returns paid on B shares | - | - | - | - | (1,692) | - | - | - | (1,692) |
| Balance as at 31 March 2024 | 134 | 153 | 5 | 79,022 | 8,320 | 1,249 | 15,195 | 3,688 | 107,766 |
| At 31 March 2025 | |||
| Ordinary shares | B shares | ||
| Net asset value per share | (a) | 101.12p | 101.12p |
| Share price | (b) | 99.00p | 97.00p |
| Discount (c=(b-a)/(a)) | (c) | -2.1% | -4.1% |
| 31 March 2025 £'000 | ||
| Total expenditure | 1,158 | |
| Less revolving credit facility commitment fee | - | |
| Less non-recurring expenses | (2) | |
| Total | (a) | 1,156 |
| Average daily net assets | (b) | 111,347 |
| Ongoing charges (c = a/b) | (c) | 1.04% |
| 31 March 2025 £'000 | ||
| Investments held at fair value through profit or loss | (a) | 122,140 |
| Net assets | (b) | 116,066 |
| Gearing (c = (a/b)-1)% | (c) | 5.2% |
| 31 March 2025 | |
| Ordinary shares/ B shares | |
| NAV per share at start of financial year | 94.51p |
| NAV per share at end of financial year | 101.12p |
| Change in the year | +7.0% |
| Impact of dividend/capital repayment reinvestment† | +6.5% |
| NAV total return for the year | +13.5% |
| 31 March 2025 | ||
| Ordinary shares | B shares | |
| Share price per share at start of financial year | 84.5p | 83.5p |
| Share price per share at end of financial year | 99.0p | 97.0p |
| Change in the year | +17.2% | +16.2% |
| Impact of dividend/capital repayment reinvestment† | +7.8% | +7.8% |
| Share price total return for the year | +25.0% | +24.0% |
| 31 March 2025 | |
| Ordinary shares/ B shares | |
| NAV per share at 31 March 2022 | 95.97p |
| NAV per share at 31 March 2025 | 101.12p |
| Change in the period | +5.4% |
| Impact of dividend/capital repayment reinvestment† | +21.2% |
| NAV total return for the 3 years to 31 March 2025 | +26.6% |
| 31 March 2025 | |||
| Ordinary shares | B shares | ||
| Annual dividend/capital repayment | (a) | 5.79p | 5.79p |
| Share price | (b) | 99.00p | 97.00p |
| Yield = (c=a/b) | (c) | 5.8% | 6.0% |
Recent news on CT UK High Income Trust
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Brief: CT UK High Income Trust Plc Appoints Stephen Mitchell As Chairman