CT UK High Inc Tst CT UK High Inc-CHIB - Half-year Financial Report

CT UK High Income Trust

28/11/2025 07:00

RNS Number : 3498J

CT UK High Income Trust PLC

28 November 2025

 

To:          RNS

From:     CT UK High Income Trust PLC

Date:      28 November 2025

LEI:          213800B7D5D7RVZZPV45

 

 

Unaudited Half-Year Results

The Board of CT UK High Income Trust PLC (the 'Company') announces the unaudited half-year results of the Company for the six month period to 30 September 2025.

 

Financial Highlights for the six months

 

·    Net asset value total return(1) per share for the six months was +8.7%, compared to the total return of the Benchmark(2) of +11.6%.

 

·    Ordinary share price total return for the six months was +12.5% compared to the total return of the Benchmark of +11.6%.

 

·    B share price total return for the six months was +4.8% compared to the total return of the Benchmark of +11.6%.

 

·    Distribution yield(1) of 5.4% on Ordinary shares and 5.9% on B shares at 30 September 2025, compared to the yield on the FTSE All-Share Index of 3.3%.

 

Notes:

 

1.   Yield and total return - see Alternative Performance Measures.

2.   Benchmark - FTSE All-Share Index.

 

 

Chairman's Statement

 

Investment Performance and Portfolio Review

For the first six months of our financial year, equity markets globally have continued to be strong and in sterling terms over the 2025 calendar year to 30 September, the FTSE All-Share has even out-performed the US S&P 500. The Company, itself, performed well during this six month period with a positive net asset value (NAV) return of +8.7% although the benchmark index performed even better, returning +11.6%, thus demonstrating the strength of the UK market.

 

Many of the issues that I talked about in our Annual Report remain - war continues in Ukraine; the Middle East, despite the recent ceasefire, remains volatile and although we have seen interest rates cut further, inflation still remains stubbornly above target in the US & UK. The US, of course, started the calendar year with a new administration as President Trump began his second term in office and it is fair to say that his actions since have arguably been the biggest factor influencing investors and the direction of share prices. It was at the very start of our financial year that President Trump announced the self-titled 'Liberation Day' with the revealing of tariffs much higher than anyone had anticipated. As one of the countries imposed with the highest tariffs, it is perhaps not surprising that China didn't react well and announced retaliatory tariffs on US goods. This quickly led to tit-for-tat announcements until tariffs on China reached 125%, a level that precluded any trade between the two countries. As the FTSE All-Share fell almost 10% in the next four days, it seemed very unlikely that we would be writing now about a strong six months. Thankfully, the retaliatory tariffs were quickly suspended after US bond yields rose sharply and as economies, especially the US, continued to show reasonable levels of growth leading markets to stage a strong recovery. We may never know if the suspension of tariffs was due to the US bond market taking fright or the plan all along, but tariffs remain in place and while they seem mild compared to the dark days of April, aggregate US trade tariffs are at levels not seen since the 1930s.

 

In the context of the UK stock market and the economy, there have been two other big drivers; the ongoing explosion of AI spending and domestic politics and economic activity. When the Chinese AI company DeepSeek announced in January they could get similar results to OpenAI at a fraction of the cost it looked as though the ever-increasing investment in AI data centres might slow. In the event, the US hyperscalers (Amazon, Microsoft etc) have announced ever bigger investments with Meta (Facebook) announcing investment in a data centre the size of Manhattan. This has led to continued strong performance from all those industries deemed to benefit such as chip makers, equipment suppliers, utilities and energy companies. By contrast, attractive starting-point valuations and broader-based risk concentration makes the UK market a relatively more attractive place to invest, characterised, in part, by the high volume of share buybacks and bids for UK-listed companies witnessed in recent months. What we have also seen this year is a much greater focus on perceived 'AI losers' with many companies in advertising, publishing and software seeing precipitous share price falls. Many of these companies have large, bespoke datasets which had previously seen them labelled as beneficiaries of AI such as Pearson, RELX, Experian and London Stock Exchange. While the companies have all responded strongly against this narrative, the truth will only, unfortunately, be known in time and until that day comes these shares are likely to remain volatile.

 

"Volatile" can also be used to describe stocks exposed to the other big drivers - UK domestic politics and economics. Hopes that a new government with a clear majority and strong pre-election message to drive growth and not to raise taxes would be a positive force were already dashed by last year's budget but, if anything, sentiment continued to deteriorate in the last six months. The failure of the government to force much-needed welfare reform through its backbenchers and the lack of immediate support for the Chancellor from the Prime Minister caused a mini "Liz Truss" moment when bond yields rose sharply. UK public finances are a constant area of concern as borrowing continues to rise and, despite many announcements and optimism, we are less likely to meet Labour's target of building 1.5 million new homes than we were before the election, with a combination of high interest rates, increasingly onerous regulations and low levels of confidence stopping housebuilders from building and consumers from wanting to buy. With this backdrop, it is not surprising that many of our domestic-focused businesses such as the housebuilders have been some of the weakest contributors to performance in the last six months as they simply couldn't keep pace with the globally-led market.

 

The performance of the Company has been strong with its NAV total return rising 8.7% in the six-month period to 30 September 2025 but despite this, it could not keep up with the buoyant market. Our focus is always first on income generation to ensure we provide shareholders with a high and growing dividend that we believe is central to why shareholders invest in the Company, but this can mean, in short periods, we lag the broader market. As I have stated before, indices skewed by huge corporates and nascent growth sectors are difficult to beat on a consistent basis but dividends are an important part of total return and, as we have demonstrated over the longer term, we can deliver out-performance, as shown by the one, three, and five-year periods to the Company's last year end of 31 March 2025.

 

The Manager's trading activity was, as is the norm, focused on improving the quality of the investment portfolio and maximising income generation. Notable purchases include iconic brand Burberry where our Manager believes new management has made huge progress in re-positioning the brand where it can see growth return. Other purchases include travel retailer SSP, where the valuation completely failed to recognise the long-term growth and value in the separately listed Indian joint venture, and UK Wealth Manager, Rathbones; the Manager has had a favourable view on this industry in the UK since our ownership of Brewin Dolphin and has been monitoring Rathbones since its takeover of Investec Wealth, conscious that integration post-deal is rarely smooth. The latest set of results gave the Manager confidence that we are past the peak of uncertainty and with an attractive valuation and dividend yield, started a position. The purchase was funded by selling Tesco which had been bought when the fear of Asda being more aggressive on pricing had driven the share price lower and the dividend yield above market for the first time in a while. Over the next few months, the Asda impact proved to be negligible and as the shares rose over 30% and the yield fell back below market, the Manager sold our shares.

 

Share Price Performance

Over the six-month period, in part due to increased demand, the price of the Company's Ordinary shares moved from a discount to NAV of -2.1% to a small premium of +1.4% at 30 September 2025 and consequently, the Ordinary share price total return for the period was +12.5%. Conversely, the discount of the B shares to NAV widened slightly from -4.1% to -7.6% at the period end, thus generating a B share price total return of +4.8% for the period under review.

 

In response to the demand for Ordinary shares, during this period, 1,150,000 Ordinary shares were resold out of treasury, at a small premium to NAV to ensure no dilution to existing shareholders. During the period under review no Ordinary shares or B shares were bought back for treasury. Since the period end, a further 1,550,000 Ordinary shares have also been resold out of treasury.

 

Earnings, Dividends and Capital Repayments

In the period under review, your Company's revenue earnings per share was 2.49p per share in comparison to 2.65p per share for the six months to 30 September 2024. While this is lower than the equivalent period last year, this is often impacted by the timing of dividend payments and we believe the Company's revenue position at the half-year stage is well placed. As I have previously stated, it was a key objective of the Board and Manager to return to a covered dividend and rebuild the revenue reserve and this was achieved in the last financial year ended 31 March 2025.

 

In the absence of unforeseen circumstances, it is the Board's current intention that the aggregate dividend and capital repayment for the current financial year to 31 March 2026 will be at least 5.79p per Ordinary share and B share respectively. Three quarterly interim dividends and capital repayments have so far been declared, each of 1.37p per share.

 

At 30 September 2025, this aggregate distribution represented a yield of 5.4% and 5.9% on the Ordinary share price and B share price respectively, as compared with the yield on the FTSE All-Share Index of 3.3%.

 

Borrowing

Effective 26 September 2025, the Company refinanced its bank borrowings and entered into a new two-year unsecured revolving credit facility ('RCF') with The Royal Bank of Scotland International Limited ('RBSI') for £20 million. This replaced the Company's RCF with RBSI for £15 million, which matured. It is believed that the RCF will continue to provide flexibility for the Board and Manager and can be utilised when investment opportunities arise and the increased facility reflects the growth in size of the Company, a positive development. At 30 September 2025, the Company had drawn down £15 million of the RCF.

 

Outlook

I talked earlier that the backdrop in the UK has, if anything, deteriorated, so it may seem somewhat surprising that the Manager still has a positive view on investing in UK equities. While sentiment remains weak, the Manager believes that the reality of the fundamentals is much better than perceived. While the job market is weakening, employment remains robust, real wages are still rising and while the pace may be slower than we would like, the Bank of England's monetary policy committee is cutting rates and the cost of borrowing for housing is, importantly, falling. While we are building even fewer homes, we are aware that there has been a lot going on behind the scenes in making planning easier and removing obstacles. This type of supply-side reform takes longer to enact and to make a difference but should also have a longer-lasting impact. At first glance, Wednesday's budget was received reasonably well by the stock and bond markets, mostly because there was no proposal to increase government debt and no major tax rises were announced that would negatively impact the all-important objective of achieving economic growth. Whilst anticipated, it is nevertheless disappointing that welfare spending has increased yet again but it is now to be hoped that this budget will prove to be a clearing event for UK equities and progress can be made from here. If this is the case, we believe investors will once again focus on fundamentals and particularly valuations which are a key reason for our continued positive view of the UK. One standout is the UK housebuilders where dividend yields are high and valuations very attractive with, for example, portfolio holding Taylor Wimpey trading below the value of its net assets despite a balance sheet with net cash. Of course, this is merely one stock but there are many similar examples that help to drive our positive view on UK equities and our confidence that we can continue to drive growth in dividends for our shareholders. As ever, your support of this Company is very much appreciated.

 

 

Andrew Watkins Chairman

27 November 2025

Condensed Unaudited Statement of Comprehensive Income

For the six month period to 30 September 2025

Six months to 30 September 2025
Notes
Revenue
Capital
Total
£'000
£'000
£'000
Gains on investments held at fair value
-
7,549
7,549
Exchange gains
1
7
8
Income 2
3,387
-
3,387
Investment management fee 3
(111)
(258)
(369)
Other expenses
(261)
-
(261)
Profit before finance costs and taxation
3,016
7,298
10,314
Net finance costs
Interest on bank loans
(124)
(290)
(414)
Total finance costs
(124)
(290)
(414)
Profit before tax
2,892
7,008
9,900
Tax on ordinary activities 4
(12)
-
(12)
Profit for the period
2,880
7,008
9,888
Total comprehensive income for the period
2,880
7,008
9,888
Earnings per share 5
2.49p
6.06p
8.55p

 

 

The total column of this statement represents the Company's Profit and Loss Account. The supplementary revenue return and capital return columns are both prepared under guidance published by the Association of Investment Companies.

 

All revenue and capital items in the above statement derive from continuing operations.

 

All of the profit and comprehensive income for the period is attributable to the owners of the Company.

Condensed Unaudited Statement of Comprehensive Income

 

Six months to 30 September 2024
Year to 31 March 2025*
Notes
Revenue
Capital
Total
Revenue
Capital
Total
£'000
£'000
£'000
£'000
£'000
£'000
Gains on investments held at fair value
-
4,831
4,831
-
9,678
9,678
Exchange (losses)/gains
-
(4)
(4)
(3)
2
(1)
Income 2
3,529
-
3,529
6,487
-
6,487
Investment management fee 3
(100)
(233)
(333)
(201)
(469)
(670)
Other expenses
(222)
-
(222)
(488)
-
(488)
Profit before finance costs and taxation
3,207
4,594
7,801
5,795
9,211
15,006
Net finance costs
Interest on bank loans
(144)
(336)
(480)
(279)
(652)
(931)
Total finance costs
(144)
(336)
(480)
(279)
(652)
(931)
Profit before tax
3,063
4,258
7,321
5,516
8,559
14,075
Tax on ordinary activities 4
(46)
-
(46)
(32)
-
(32)
Profit for the period
3,017
4,258
7,275
5,484
8,559
14,043
Total comprehensive income for the period
3,017
4,258
7,275
5,484
8,559
14,043
Earnings per share 5
2.65p
3.73p
6.38p
4.80p
7.50p
12.30p

 

The total column of this statement represents the Company's Profit and Loss Account. The supplementary revenue return and capital return columns are both prepared under guidance published by the Association of Investment Companies.

All revenue and capital items in the above statement derive from continuing operations.

All of the profit and comprehensive income for the period is attributable to the owners of the Company. 

 

*audited figures

 

Condensed Unaudited Statement of Financial Position

 

Notes
30 September
30 September
31 March
2025
2024
2025*
£'000
£'000
£'000
Non-current assets
Investments held at fair value through
profit or loss 9
134,501
125,626
122,140
134,501
125,626
122,140
Current assets
Receivables 10
3,811
513
1,287
Cash and cash equivalents
3,577
787
9,514
7,388
1,300
10,801
Total assets
141,889
126,926
132,941
Current liabilities
Payables 11
(3,350)
(534)
(1,875)
Bank loans 12
(15,000)
(15,000)
(15,000)
Total liabilities
(18,350)
(15,534)
(16,875)
Net assets
123,539
111,392
116,066
Capital and reserves
Share capital 13
134
134
134
Share premium
418
153
262
Capital redemption reserve
5
5
5
Buy back reserve
80,696
78,806
79,682
Special capital reserve
5,626
7,395
6,573
Capital reserves
32,011
20,702
25,003
Revenue reserve
4,649
4,197
4,407
Equity shareholders' funds
123,539
111,392
116,066
Net asset value per Ordinary share 14
106.56p
97.90p
101.12p
Net asset value per B share 14
106.56p
97.90p
101.12p

 

 

Approved by the Board, and authorised for issue, on 27 November 2025 and signed on its behalf by:

 

Andrew Watkins, Chairman

 

 

*audited figures

 

 

Condensed Unaudited Statement of Changes in Equity

for the six months to 30 September 2025

Share Capital
Share Premium
Capital Redemption Reserve
Buy Back Reserve
Special Capital Reserve
Capital Reserves
Revenue Reserve
Total
£'000
£'000
£'000
£'000
£'000
£'000
£'000
£'000
Balance as at 1 April 2025
134
262
5
79,682
6,573
25,003
4,407
116,066
Profit for the period
-
-
-
-
-
7,008
2,880
9,888
Shares sold from treasury
-
156
-
1,014
-
-
-
1,170
Dividends paid on Ordinary shares
-
-
-
-
-
-
(2,638)
(2,638)
Capital returns paid on B shares
-
-
-
-
(947)
-
-
(947)
Balance as at 30 September 2025
134
418
5
80,696
5,626
32,011
4,649
123,539

 

for the six months to 30 September 2024

Share Capital
Share Premium
Capital Redemption Reserve
Buy Back Reserve
Special Capital Reserve
Capital Reserves
Revenue Reserve
Total
£'000
£'000
£'000
£'000
£'000
£'000
£'000
£'000
Balance as at 1 April 2024
134
153
5
79,022
8,320
16,444
3,688
107,766
Profit for the period
-
-
-
-
-
4,258
3,017
7,275
Shares bought back for treasury
-
-
-
(216)
-
-
-
(216)
Dividends paid on Ordinary shares
-
-
-
-
-
-
(2,508)
(2,508)
Capital returns paid on B shares
-
-
-
-
(925)
-
-
(925)
Balance as at 30 September 2024
134
153
5
78,806
7,395
20,702
4,197
111,392

 

for the year to 31 March 2025*

Share Capital
Share Premium
Capital Redemption Reserve
Buy Back Reserve
Special Capital Reserve
Capital Reserves
Revenue Reserve
Total
£'000
£'000
£'000
£'000
£'000
£'000
£'000
£'000
Balance as at 1 April 2024
134
153
5
79,022
8,320
16,444
3,688
107,766
Profit for the period
-
-
-
-
-
8,559
5,484
14,043
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
25,003
4,407
116,066

*audited figures

Condensed Unaudited Cash Flow Statement

Six months to
30 September 2025
Six months to
30 September 2024
Year to
31 March
2025*
£'000
£'000
£'000
Cash flows from operating activities
Profit before tax
9,900
7,321
14,075
Adjustments for:
Gains on investments held at fair value through profit or loss
(7,549)
(4,831)
(9,678)
Exchange (gains)/losses
(8)
4
1
Interest income
(148)
(34)
(146)
Interest received
148
34
146
Dividend income
(3,239)
(3,495)
(6,335)
Dividend income received
3,963
4,140
6,133
(Increase)/decrease in receivables
(25)
9
(4)
Increase/(decrease) in payables
4
(37)
(14)
Finance costs
414
480
931
Overseas tax suffered
(3)
(20)
69
Cash flows from operating activities
3,457
3,571
5,178
Cash flows from investing activities
Purchases of investments
(25,952)
(30,519)
(52,967)
Sales of investments
19,360
30,782
62,879
Cash flows from investing activities
(6,592)
263
9,912
Cash flows from financing activities
Dividends paid on Ordinary shares
(2,638)
(2,508)
(4,765)
Capital returns paid on B shares
(947)
(925)
(1,747)
Interest on bank loans
(395)
(480)
(918)
Shares purchased for treasury
-
(216)
(216)
Shares sold for treasury
1,170
-
985
Cash flows from financing activities
(2,810)
(4,129)
(6,661)
Net (decrease)/increase in cash and cash
Equivalents
(5,945)
(295)
8,429
Effect of movement in foreign exchange
8
(4)
(1)
Opening net cash and cash equivalents
9,514
1,086
1,086
Closing cash and cash equivalents
3,577
787
9,514
Represented by:
Cash at bank
97
47
154
Short term deposits
3,480
740
9,360
3,577
787
9,514

 

*audited figures

 Notes to the Condensed Financial Statements (unaudited)

 

1.    Accounting Policies

The condensed unaudited financial statements have been prepared on a going concern basis and in accordance with UK-adopted International Accounting Standard 34 "Interim Financial Reporting" and the accounting policies set out in the statutory financial statements of the Company for the year ended 31 March 2025. Where presentational guidance set out in the Statement of Recommended Practice ("SORP") for investment trusts issued by the Association of Investment Companies is consistent with the requirements of UK-adopted International Accounting Standards, the Directors have sought to prepare the condensed financial statements on a basis compliant with the recommendations of the SORP. The condensed financial statements do not include all of the information required for full annual financial statements and should be read in conjunction with the financial statements of the Company for the year ended 31 March 2025, which were prepared under UK-adopted International Accounting Standards.

 

2.    Income

30 September 2025
30 September 2024
31
March 2025
Income comprises:
£'000
£'000
£'000
UK dividend income
2,780
2,773
5,235
UK dividend income - special dividends
17
-
74
Overseas dividend income
247
552
653
Property income distributions
195
170
373
3,239
3,495
6,335
Other income
Interest on cash and cash equivalents
148
34
146
Other Income
-
-
6
3,387
3,529
6,487

 

 

3.    The Company's investment manager Columbia Threadneedle Investment Business Limited receives an investment management fee of 0.60 per cent per annum of the net asset value of the Company payable quarterly in arrears.

 

4.    The taxation charge for the period represents withholding tax suffered on overseas dividend income.

 

5.    The earnings per share are based on the net profit for the period and on 115,696,704 shares (period to 30 September 2024 - 114,005,447; year to 31 March 2025 - 114,156,746), being the weighted average number of shares in issue during the period.

 

6.    Earnings for the six months to 30 September 2025 should not be taken as a guide to the results of the full year.

 

7.    The Board has considered the requirements of IFRS 8 'Operating Segments'. The Board is of the view that the Company is engaged in a single segment of business, of investing in equity, and that therefore the Company has only a single operating segment. The Board of Directors, as a whole, has been identified as constituting the chief operating decision maker of the Company. The key measure of performance used by the Board to assess the Company's performance is the total return on the Company's net asset value as calculated under UK-adopted International Accounting Standards and therefore no reconciliation is required between the measure of profit or loss used by the Board and that contained in the condensed financial statements.

 

8.    Dividends and capital repayments

Dividends
Payment
Date
Six months to
30 Sept 2025
Six months to
30 Sept 2024
Year
to
31 March 2025
£'000
£'000
£'000
In respect of the previous period:
Fourth interim dividend at 1.74p (2024: 1.66p) per Ordinary share
2 May 2025
1,467
1,383
1,383
In respect of the period under review:
First interim dividend at 1.37p (2025: 1.35p) per Ordinary share
1 Aug 2025
1,171
1,125
1,125
Second interim dividend (2025: 1.35p) per Ordinary share
-
-
1,125
Third interim dividend (2025: 1.35p) per Ordinary share
-
-
1,132
2,638
2,508
4,765


 

A second interim dividend for the year to 31 March 2026, of 1.37p per Ordinary share, was paid on 7 November 2025 to Ordinary shareholders on the register on 3 October 2025.

 

Capital repayments
Payment
Date
Six months to
30 Sept 2025
Six months to
30 Sept 2024
Year
to
31 March 2025
£'000
£'000
£'000
In respect of the previous period:
Fourth capital repayment at 1.74p (2024: 1.66p) per B share
2 May 2025
530
510
510
In respect of the period under review:
First capital repayment at 1.37p (2025: 1.35p) per B share
1 Aug 2025
417
415
415
Second capital repayment (2025: 1.35p) per B share
-
-
411
Third capital repayment(2025: 1.35p) per B share
-
-
411
947
925
1,747

 

A second capital repayment for the year to 31 March 2026, of 1.37p per B share, was paid on 7 November 2025 to B shareholders on the register on 3 October 2025.

 

Although the above referenced payments on 7 November 2025 relate to the period ended 30 September 2025, under UK-adopted International Accounting Standards they will be accounted for in the six months to 31 March 2026, being the period during which they are paid.

 

 

 

9.     Investments held at fair value through profit or loss

Listed/
Quoted
(Level 1)
£'000
Subsidiary/
Unlisted
(Level 3)
£'000
Total
£'000
Cost brought forward
107,301
250
107,551
Gains brought forward
14,589
-
14,589
Fair value of investments at 31 March 2025
121,890
250
122,140
Movement in the period:
Purchases at cost
27,413
-
27,413
Sales proceeds
(22,601)
-
(22,601)
Gains on investments sold in the period
1,743
-
1,743
Losses on investments held at 30 September 2025
5,806
-
5,806
Fair value of investments at 30 September 2025
134,251
250
134,501
Cost at 30 September 2025
113,856
250
114,106
Gains at 30 September 2025
20,395
-
20,395
Fair value of investments at 30 September 2025
134,251
250
134,501

 

Accounting standards recognise a hierarchy of fair value measurements for financial instruments which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The classification of financial instruments depends on the lowest significant applicable input, as follows:

 

·    Level 1 - quoted (unadjusted) prices in active markets for identical assets or liabilities.

·    Level 2 - other techniques for which all inputs that have a significant effect on the recorded fair value are observable, either directly or indirectly. The Company held no such instruments during the period under review.

·    Level 3 - techniques that use inputs that have a significant effect on the recorded fair value that are not based on observable market data. The Company's investment in its subsidiary undertaking, Investors Securities Company Limited, is included in Level 3 and is valued at its net asset value.

 

There were no transfers between levels of the fair value hierarchy during the six months ended 30 September 2025.

 

 

10.   Receivables

30 Sept
30 Sept
31 March
2025
2024
2025
£'000
£'000
£'000
Income receivable from shares and securities
445
322
1,169
Amount due from brokers in settlement of sale of Investments
3,241
-
-
Withholding tax recoverable
69
153
78
Sundry debtors and prepayments
56
38
40
3,811
513
1,287

 

11.       Payables

30 Sept
30 Sept
31 March
2025
2024
2025
£'000
£'000
£'000
Loan from subsidiary undertaking repayable on
demand
250
250
250
Investment management fee payable to the
investment manager
187
168
172
Amounts due to brokers in settlement of purchase of investments
2,777
-
1,316
Loan Interest
11
-
2
Accrued expenses
125
116
135
3,350
534
1,875

 

12.       Bank Loans

With effect from 26 September 2025, the Company renewed its borrowing facility with The Royal Bank of Scotland International Limited ('RBSI') and now has an unsecured revolving credit facility ('RCF') for £20 million which is available until 26 September 2027. Prior to this, the Company had a RCF for £15 million with RBSI. At 30 September 2025, £15 million was drawn down (30 September 2024: £15 million; 31 March 2025: £15 million).

 

The loan agreement contains certain financial covenants with which the Company must comply.  These include a financial covenant with respect to the ratio of the Adjusted Portfolio Value (as defined in the loan agreement) to the level of debt and also that the Adjusted Portfolio Value does not fall below £50 million. The Company complied with the required financial covenants throughout the period since drawdown.

 

13.       Share Capital

                 Allotted, issued and fully paid

 

Listed
Held in Treasury
In Issue
Number
£
Number
£
Number
£
Ordinary Shares of 0.1p each
Balance at 1 April 2025
102,067,144
102,067
(17,744,491)
(17,744)
84,322,653
84,323
Sold from Treasury
-
-
1,150,000
1,150
1,150,000
1,150
Balance at 30 September 2025
102,067,144
102,067
(16,594,491)
(16,594)
85,472,653
85,473
B Shares of 0.1p each
Balance at 1 April 2025
32,076,703
32,077
(1,617,953)
(1,618)
30,458,750
30,459
Balance at 30 September 2025
32,076,703
32,077
(1,617,953)
(1,618)
30,458,750
30,459
Total at 30 September 2025
134,143,847
134,144
(18,212,444)
(18,212)
115,931,403
115,932

 

During the period the Company sold 1,150,000 Ordinary shares (period to 30 September 2024: nil Ordinary shares; year to 31 March 2025: 1,000,000 Ordinary shares) from treasury realising net proceeds of £1,170,000 (period to 30 September 2024: nil; year to 31 March 2025: £985,000).

 

During the period the Company bought back nil Ordinary shares and bought back nil B shares to hold in treasury (period to 30 September 2024: nil Ordinary shares and 250,000 B shares at a cost of £216,000; year to 31 March 2025: nil Ordinary shares and 250,000 B shares at a cost of £216,000).

 

At 30 September 2025 the Company held 16,594,491 Ordinary shares and 1,617,953 B shares in treasury (30 September 2024 - 18,744,491 Ordinary shares and 1,617,953 B shares; 31 March 2025 - 17,744,491 Ordinary shares and 1,617,953 B shares).

 

14.       The net asset value per share is based on shareholders' funds at the period-end and on 85,472,653 Ordinary shares and 30,458,750 B shares, being the number of shares in issue at the period end (30 September 2024 - 83,322,653 Ordinary shares and 30,458,750 B shares; 31 March 2025 - 84,322,653 Ordinary shares and 30,458,750 B shares).

 

15.       The fair values of the Company's financial assets and liabilities are not materially different from their carrying values in the financial statements.

 

The Company's financial risk management objectives and policies are consistent with those disclosed in the Company's financial statements for the year ended 31 March 2025.

 

16.       Changes in liabilities arising from financing activities

 

Six months to
30 September
2025
Six months to 30 September
2024
Year to
31 March
2025
£'000
£'000
£'000
Opening net debt at beginning of
period/year
15,000
15,000
15,000
Cash flows:
Drawdown of revolving credit facility
-
-
-
Closing net debt at end of period/year
15,000
15,000
15,000

 

17.       Going concern

In assessing the going concern basis of accounting, the Directors have had regard to the guidance issued by the Financial Reporting Council and have undertaken a rigorous review of the Company's ability to continue as a going concern.

 

The Company's investment objective and investment policy, which is subject to regular Board monitoring processes, is designed to ensure that the Company is invested predominantly in liquid, listed securities. The value of these investments exceeds the Company's liabilities by a significant margin. The Company retains title to all assets held by its custodian, and has an agreement relating to its borrowing facility with which it has complied. Cash is held only with banks approved and regularly reviewed by the Investment Manager.

 

As part of the going concern review, the Directors noted that a borrowing facility of a £20 million revolving credit facility is committed to the Company until 26 September 2027 and loan covenants are reviewed by the Board on a regular basis.

 

The Directors believe, having assessed the principal risks and other matters, in light of the controls and review processes noted and bearing in mind the nature of the Company's business and assets and revenue and expenditure projections, that the Company has adequate resources to continue in operational existence for a period of at least twelve months from the date of approval of the financial statements. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.

 

The Company does not have a fixed life. However, in the event that the net asset value total return performance of the Company is less than that of the FTSE All-Share Index over the relevant three year period, in accordance with the Company's articles of association, shareholders will be given the opportunity to vote on whether the Company should continue in existence, by ordinary resolution at the Company's Annual General Meeting. The current three year period for this purpose will run from 1 April 2025 to 31 March 2028.

 

18.       Related party transactions

The Directors of the Company are considered a related party. Under the FCA UK Listing Rules, the Manager is also defined as a related party. However, the existence of an independent Board of Directors demonstrates that the Company is free to pursue its own financial and operating policies and therefore under the AIC SORP, the Manager is not considered a related party for accounting purposes.

 

The Directors receive aggregated remuneration for services as Directors and for which there were no outstanding balances at the period end. There have been no transactions with related parties during the first six months of the current financial year that have materially affected the financial position or performance of the Company during the period and there have been no changes in the related party transactions described in the last Annual Report and Financial Statements that could do so.

 

19.       The Company's auditor, Deloitte LLP, has not audited or reviewed the Half-Year Report and the results for the six months to 30 September 2025 and 30 September 2024 pursuant to the Auditing Practices Board guidance on 'Review of Interim Financial Information'. These are not full statutory financial statements in terms of Section 434 of the Companies Act 2006 and are unaudited. Statutory financial statements for the year ended 31 March 2025, which received an unqualified audit report and which did not contain a statement under Section 498 of the Companies Act 2006, have been lodged with the Registrar of Companies. The condensed financial statements shown for the year ended 31 March 2025 are an extract from those financial statements. No full statutory financial statements in respect of any period after 31 March 2025 have been reported on by the Company's auditor or delivered to the Registrar of Companies.

 

The Half-Year Report to 30 September 2025 is available on the website maintained on behalf of the Company at ctukhighincome.co.uk and will shortly be submitted to the National Storage Mechanism and will be available for inspection at: https://data.fca.org.uk/#/nsm/nationalstoragemechanism

    

 

Statement of Principal Risks and Uncertainties

 

As an investment company, investing primarily in listed securities, most of the Company's principal risks and uncertainties that could threaten the achievement of its objective, strategy, future performance, liquidity and solvency are market related.

 

These risks, and the way in which they are managed, are described under the heading 'Principal Risks and Uncertainties and Viability Statement' within the Strategic Report in the Company's Annual Report and Financial Statements for the year ended 31 March 2025.

 

The principal risks identified in the Annual Report were:

 

•           Investment performance risk;

 

•           Legal and regulatory risk; and

 

•           Third party service delivery and cyber risks.

 

The Board continues to review the key risk summary for the Company which identifies the risks that the Company is exposed to, the controls in place and the actions being taken to mitigate them. The Board has also considered the outlook for inflation, ongoing macroeconomic and geopolitical concerns, and the impact on financial markets of US trade tariffs.

 

The Board considers that the Company's principal risks and uncertainties have not changed materially since 29 May 2025, the date that the Company's Annual Report and Financial Statements was approved, and are not expected to change materially for the remainder of the Company's financial year. The Board has also considered these principal risks in relation to going concern, as set out in note 17.

 

Statement of Directors' Responsibilities in Respect of the Half-Year Report

 

We confirm that to the best of our knowledge:

 

·    the condensed set of financial statements has been prepared in accordance with UK-adopted International Accounting Standard 34 "Interim Financial Reporting" and give a true and fair view of the assets, liabilities, financial position and return of the Company;

·    the Chairman's Statement and the Statement of Principal Risks and Uncertainties (together constituting the Interim Management Report) include a fair review of the information required by the Disclosure Guidance and Transparency Rule ('DTR') 4.2.7R, being an indication of important events that have occurred during the first six months of the financial year and their impact on the condensed set of financial statements;

·    the Statement of Principal Risks and Uncertainties is a fair review of the principal risks and uncertainties for the remainder of the financial year; and

·    the Half-Year Report includes a fair review of the information required by DTR 4.2.8R, being related party transactions that have taken place in the first six months of the current financial year and that have materially affected the financial position or performance of the Company during that period, and any changes in the related party transactions described in the last Annual Report that could do so.

 

On behalf of the Board

 

Andrew Watkins

Chairman

27 November 2025

Alternative Performance Measures ('APMs')

The Company uses the following APMs:

 

Discount/premium - the share price of an investment company is derived from buyers and sellers trading their shares on the stock market. This price is not identical to the net asset value (NAV) per share of the underlying assets less liabilities of the Company. If the share price is lower than the NAV per share, the shares are trading at a discount. This usually indicates that there are more sellers of shares than buyers. Shares trading at a price above NAV per share are deemed to be at a premium usually indicating there are more buyers of shares than sellers.

 

30 September 2025
31 March 2025
Ordinary Shares
B Shares
Ordinary Shares
B Shares
Net asset value per share
(a)
106.56p
106.56p
101.12p
101.12p
Share price
(b)
108.00p
98.50p
99.00p
97.00p
+Premium/-Discount (c=(b-a)/(a))
(c)
+1.4%
-7.6%
-2.1%
-4.1%


 

 

Gearing - represents the excess amount above shareholders' funds of total investments, expressed as a percentage of the shareholders' funds.  If the amount calculated is negative, this is a 'net cash' position and no gearing.

 

30 September 2025
£'000
31 March 2025
£'000
Investments held at fair value through profit or loss
(a)
134,501
122,140
Net assets
(b)
123,539
116,066
(Net cash)/gearing (c=(a/b)-1)%
(c)
8.9%
5.2%

 

 

Total Return - the theoretical return to shareholders calculated on a per share basis by adding dividends/capital repayments paid in the period to the increase or decrease in the share price or NAV in the period.  The dividends/capital repayments are assumed to have been re-invested in the form of shares or net assets, respectively, on the date on which the shares were quoted ex-dividend.

 

The effect of reinvesting these dividends/capital repayments on the respective ex-dividend dates and the NAV total returns and Share price total returns are shown below.

 

30 September 2025
31 March 2025
Ordinary shares/B shares
Ordinary shares/B shares
NAV per share at start of period/year
101.12p
94.51p
NAV per share at end of period/year
106.56p
101.12p
Change in the period/year
+5.4%
+7.0%
Impact of dividend/capital repayment reinvestment†
+3.3%
+6.5%
NAV total return
+8.7%
+13.5%


 

† During the six months to 30 September 2025 dividends/capital repayments totalling 3.11p (Ordinary shares/B shares) went ex-dividend. During the year to 31 March 2025 the equivalent figures were 5.71p (Ordinary shares/B shares).

 

 

 

 

 

 

 

 

 

30 September 2025
31 March 2025
Ordinary Shares
B Shares
Ordinary Shares
B Shares
Share price per share at start of period/year
99.0p
97.0p
84.50p
83.5p
Share price per share at end of period/year
108.0p
98.50p
99.0p
97.00p
Change in the period/year
+9.1%
+1.5%
+17.2%
+16.2%
Impact of dividend/capital repayment reinvestment†
+3.4%
+3.3%
+7.8%
+7.8%
Share price total return for the period/year
+12.5%
+4.8%
+25.0%
+24.0%


 

† During the six months to 30 September 2025 dividends/capital repayments totalling 3.11p (Ordinary shares/B shares) went ex-dividend. During the year to 31 March 2025 the equivalent figures were 5.71p (Ordinary shares/B shares).

 

 

Yield - The total annual dividend/capital repayment expressed as a percentage of the period end share price.

30 September 2025*
31 March 2025
Ordinary Shares
B Shares
Ordinary Shares
B Shares
Annual dividend/capital repayment
(a)
5.79p
5.79p
5.79p
5.79p
Share price
(b)
108.00p
98.50p
99.00p
97.00p
Yield (c=a/b)
(c)
5.4%
5.9%
5.8%
6.0%


 

*Based on expected minimum annual dividend/capital repayment of 5.79 pence per share in respect of the year ending 31 March 2026.

 

 

 

 

 

For further information, please contact:

 

David Moss, Columbia Threadneedle Investment Business Limited              0131 573 8300

Ian Ridge, Columbia Threadneedle Investment Business Limited                 0131 573 8300

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