REG - CT UK High Inc Tst CT UK High Inc-CHIB - Annual Financial Report
30/05/2025 07:00
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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
The total column of this statement represents the Company's Statement of
Comprehensive Income, prepared in accordance with UK-adopted International
Accounting Standards.
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.
No operations were acquired or discontinued in the year.
Statement of Comprehensive Income
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
The total column of this statement represents the Company's Statement of
Comprehensive Income, prepared in accordance with UK-adopted International
Accounting Standards.
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.
No operations were acquired or discontinued in the year.
Statement of Financial Position
as at 31 March
31 March 31 March
2025 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
Cash Flow Statement
for the year to 31 March
Year to Year to
31 March 2025 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 (52,967) (62,065)
Sales of investments 62,879 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
Statement of Changes in Equity
for the year to 31 March 2025
Capital Reserve - Investments sold Capital Reserve - Investments held
Capital Redemption Reserve Special Capital Reserve
Share Capital Share Premium Buy-back Reserve 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
Statement of Changes in Equity
for the year to 31 March 2024
Capital Reserve - Investments sold Capital Reserve - Investments held
Capital Redemption Reserve Special Capital Reserve
Share Capital Share Premium Buy-back Reserve 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
CT UK High Income Trust PLC
Principal Risks and Uncertainties and Viability Statement
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.
A summary of the Company's risk management and internal controls arrangements
is included within the Report of the Audit Committee in the Annual Report and
Financial Statements. By means of the procedures set out in that summary, the
Board has established an ongoing process for identifying, evaluating and
managing the significant risks faced by the Company. The Board also considers
emerging risks which might affect the Company and related updates from the
Manager on such risks are also considered. During the year significant and
emerging risks included the outlook for inflation, ongoing macroeconomic and
geopolitical concerns, and the impact on financial markets of US trade
tariffs. Any emerging risks that are identified and that are considered to be
of significance would be included on the Company's risk register with any
mitigations. These significant risks, emerging risks and other risks are
regularly reviewed by the Audit Committee and the Board. The Audit Committee
and the Board have also regularly reviewed the effectiveness of the Company's
risk management and internal control systems for the period.
The principal risks and uncertainties faced by the Company, and the Board's
mitigation approach, are described below.
Investment performance risk
Inappropriate strategy, asset allocation, stock selection, (in the context of
the market, economic or geopolitical backdrop) and the use of gearing could
all lead to poor returns for shareholders including impacting the capacity to
pay dividends.
Increase in overall risk given macroeconomic and geopolitical concerns and
market uncertainty.
Mitigation:
The Company's objective and investment policy and performance against peers
and the benchmark are considered by the Board at each meeting and strategic
issues are considered regularly.
The Board regularly considers the composition and diversification of the
Investment Portfolio (which comprises listed securities) and considers
individual stock performance together with purchases and sales of investments.
Investments and markets are discussed in detail with the Manager on a regular
basis.
The Manager' approach to Responsible Investment is explained in the Annual
Report and Financial Statements.
As a closed-end investment company, it is not constrained by asset sales to
meet redemptions so can remain invested through volatile market conditions and
is well suited to investors seeking longer term returns.
The Board regularly considers ongoing charges combined with underlying
dividend income from portfolio companies and the consequent dividend paying
capacity of the Company.
Legal and regulatory risk
Breach of regulatory rules could lead to the suspension of the Company's stock
exchange listing, financial penalties, or a qualified audit report. Breach of
section 1158 of the Corporation Tax Act 2010 could lead to the Company being
subject to tax on capital gains.
No change in overall risk.
Mitigation:
The Board liaises with advisors to ensure compliance with laws or regulations.
The Manager and its Operational Risk team provide regular reports to the Board
and Audit Committee on their monitoring and oversight of such rules and are
reviewed by the Board. This includes the conditions to maintain investment
trust status including the income distribution requirement.
The Board has access to the Manager's Head of Operational Risk and requires
any significant issues directly relevant to the Company to be reported
immediately.
Third party service delivery and Cyber risks
Failure of the Manager as the Company's main service provider or disruption to
its business, or that of an outsourced or third party service provider, could
lead to an inability to provide accurate reporting and monitoring or a
misappropriation of assets leading to a potential breach of the Company's
investment mandate or loss of shareholders' confidence.
The risk includes failure or disruption as a consequence of external events
such as the COVID-19 pandemic.
External cyber attacks could cause such failure or could lead to the loss or
sabotage of data.
No change in overall risk during the year.
Mitigation:
The Board meets regularly with the management of the Manager and its
Operational Risk team to review internal control and risk reports which
includes oversight of its own third party service providers. The Manager's
appointment is reviewed annually and the contract can be terminated with six
months' notice. The Manager has a business continuity plan in place to ensure
that it is able to respond quickly and effectively to an unplanned event that
could affect the continuity of its business.
The Manager has outsourced certain functions to State Street Bank and Trust
Company ('State Street') and supervision of such third party service
providers, including the administrator of the Manager's savings plans, has
been maintained by the Manager. This includes the review of IT security and
heightened cyber threats.
The Manager also closely monitors the performance of its technology platform
to ensure it is functioning within acceptable service levels.
The Board receives quarterly reports from the Depositary confirming safe
custody of the Company's assets and cash and holdings are reconciled to the
Custodian's records. The Custodian's internal controls reports are also
reviewed by the Manager and key points reported to the Audit Committee. The
Board also receives periodic updates from the custodian on its own
cyber-security controls.
The Depositary is specifically liable for loss of any of the Company's assets
that constitute financial instruments under the AIFMD.
Viability assessment and statement
In accordance with the UK Corporate Governance Code, the Board is required to
assess the future prospects for the Company and has considered that a number
of characteristics of its business model and strategy were relevant to this
assessment:
· The Board looks to long-term outperformance rather than
short-term opportunities.
· The Company's investment objective, strategy and policy, which
are subject to regular Board monitoring, mean that the Company is invested
predominantly in liquid listed equity securities and that the level of
borrowing is restricted.
· The Company is a listed closed-end investment trust, whose shares
are not subject to redemptions by shareholders
· Subject to shareholder continuation votes, 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 period, the Company's business
model and strategy is not time limited. The latest performance measurement
period for this purpose was the three years to 31 March 2025 and as the
Company's net asset value total return outperformed the total return of the
FTSE All-Share Index over this period, an ordinary resolution, that the
Company continues in existence, will not be required at the forthcoming 2025
Annual General Meeting. The next such performance measurement period will run
for the three years to 31 March 2028.
Also relevant were a number of aspects of the Company's
operational arrangements:
· The Company retains title to all assets held by the Custodian
under the terms of the formal agreement with the Custodian and Depositary.
· The borrowing facility, which remains available until September
2025, is also subject to a formal agreement, including financial covenants
with which the Company complied in full during the year.
· Revenue and expenditure forecasts are reviewed by the Directors
at each Board Meeting.
· Cash is held with banks approved and regularly reviewed by the
Manager
· The operational robustness of key service providers and the
effectiveness of alternative working arrangements.
· Alternative service providers could be engaged at relatively
short notice if necessary.
In considering the viability of the Company, the Directors carried out a
robust assessment of the principal risks and uncertainties which could
threaten the Company's objective and strategy, future performance and
solvency. This included the impact of market volatility and a significant fall
in equity markets on the Company's investment portfolio. These risks, their
mitigations and the processes for monitoring them are set out above within
Principal Risks and Uncertainties and in the Report of the Audit Committee and
in the notes of the financial statements within the Annual Report.
The Directors have also considered:
· The level of ongoing charges incurred by the Company which are
modest and predictable and total 1.04% of average net assets (at 31 March
2025).
· Future revenue and expenditure projections.
· The Company's ability to meet liquidity requirements given its
investment portfolio is invested predominantly in readily realisable listed
equity securities which can be realised if required.
· The ability to undertake share buy-backs if required.
· Whether the Company's objective and investment policy continue to
be relevant to investors.
· The effect of significant future falls in investment values and
the ability to maintain dividends and capital repayments, particularly given
the uncertainty in markets and macroeconomic and geopolitical concerns.
These matters were assessed over a three year period to May 2028, and the
Board will continue to assess viability over three year rolling periods.
As part of this assessment the Board considered stress tests and scenarios
which considered the impact of severe stock market volatility on shareholders'
funds and declines in income over a three year period. The results
demonstrated the impact on the Company's net assets and its expenses and its
ability to meet its liabilities over that period and adhere to its financial
covenants.
A rolling three year period represents the horizon over which the Directors
believe they can form a reasonable expectation of the Company's prospects,
balancing the Company's financial flexibility and scope with the current
outlook for longer-term economic conditions affecting the Company and its
shareholders.
Based on their assessment, and in the context of the Company's business model,
strategy and operational arrangements set out above, the Directors have a
reasonable expectation that the Company will be able to continue in operation
and meet its liabilities as they fall due over the three year period to May
2028.
Statement of Directors' Responsibilities in Relation to the Annual Report and
Financial Statements
In accordance with Chapter 4.1.12 of the Disclosure Guidance and Transparency
Rules, the Directors confirm, in respect of the Annual Report and Financial
Statements for the year ended 31 March 2025 of which this statement of results
is an extract, that to the best of their knowledge:
· the financial statements contained within the Annual Report
prepared in accordance with UK-adopted International Accounting Standards,
give a true and fair view of the assets, liabilities, financial position and
return of the Company;
· the Strategic Report and the Report of the Directors include a
fair review of the development and performance of the business and the
position of the Company together with a description of the principal risks and
uncertainties that they face; and
· taken as a whole, the Annual Report and Financial Statements are
fair, balanced and understandable and provide the information necessary for
shareholders to assess the performance, strategy and business model of the
Company.
On behalf of the Board
Andrew Watkins
Chairman
29 May
2025
Notes
1. The financial statements of the Company which are the
responsibility of, and were approved by, the Board on 29 May 2025, have been
prepared on a going concern basis and in accordance with the Companies Act
2006 and UK-adopted International Accounting Standards.
The Company's subsidiary undertaking Investors Securities Company Limited has
not been consolidated in the financial statements as it is exempt in
accordance with Section 405(2) of the Companies Act 2006 on grounds of
materiality. Investors Securities Company Limited has been classified at fair
value through profit or loss in the Statement of Financial Position.
Where presentational guidance set out in the Statement of Recommended Practice
(''SORP'') for investment trusts issued by the Association of Investment
Companies (''AIC'') is consistent with the requirements of UK-adopted
International Accounting Standards, the Directors have sought to prepare the
financial statements on a basis compliant with the recommendations of the
SORP.
2. The Company's earnings per share are based on the
profit for the year of £14,043,000 (year to 31 March 2024: profit of
£11,222,000) and on 83,585,667 Ordinary shares (2024: 84,025,522) and
30,571,079 B shares (2024: 30,708,750), being the weighted average number of
shares in issue of each share class during the year.
The Company's revenue earnings per share are based on the revenue profit for
the year of £5,484,000 (year to 31 March 2024: £4,601,000) and on the
weighted average number of shares in issue as above.
The Company's capital earnings per share are based on the capital profit for
the year of £8,559,000 (year to 31 March 2024: £6,621,000) and on the
weighted average number of shares in issue as above.
3. A fourth interim dividend in respect of the year
ended 31 March 2025 of 1.74p per Ordinary share was paid on 2 May 2025 to
Ordinary shareholders on the register on 4 April 2025. A fourth capital
repayment in respect of the year ended 31 March 2025 of 1.74p per B share was
paid on 2 May 2025 to B shareholders on the register on 4 April 2025.
4. The Company has an unsecured revolving credit
facility ("RCF") with The Royal Bank of Scotland International Limited for
£15 million which is available until 28 September 2025. At 31 March 2025,
£15 million was drawn down for a period of one month to 30 April 2025 (31
March 2024: £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.
5. During the year the Company bought back nil Ordinary
shares (2024: 1,750,000 Ordinary shares) to hold in treasury at a cost of
£nil (2024: £1,293,000). During the year the Company bought back 250,000 B
shares (2024: nil B shares).at a cost of £216,000 (2024: £nil)
During the year the Company sold 1,000,000 Ordinary Shares (2024: nil Ordinary
shares) from treasury realising net proceeds of £985,000 (2024: £nil).
At 31 March 2025 the Company held 17,744,491 Ordinary shares (2024: 18,744,491
Ordinary shares) and 1,617,953 B shares (2024: 1,367,953 B shares) in
treasury.
Since the year end, the Company has sold a further 1,150,000 Ordinary shares
from treasury realising net proceeds of £1,170,000.
6. The Company's basic net asset value per share of
101.12p (2024: 94.51p) is based on the equity shareholders' funds of
£116,066,000 (2024: £107,766,000) and on 114,781,403 equity shares,
consisting of 84,322,653 Ordinary shares and 30,458,750 B shares (2024:
114,031,403 equity shares, consisting of 83,322,653 Ordinary shares and
30,708,750 B shares), being the number of shares in issue at the year end.
The Company's treasury net asset value per share, incorporating the 17,744,491
Ordinary shares and 1,617,953 B shares held in treasury at the year end (2024:
18,744,491 Ordinary shares and 1,367,953 B shares), was 101.12p (2024:
94.51p). The Company's current policy is to only re‑sell shares held in
treasury at a price not less than the net asset value per share.
7. Financial Instruments
The Company's financial instruments comprise equity investments, cash
balances, receivables and payables that arise directly from its operations and
borrowings. As an investment trust the Company holds a portfolio of financial
assets in pursuit of its investment objective. The Company makes use of
borrowings to achieve enhanced returns. The downside risk of borrowings can be
mitigated by raising the level of cash balances held.
The Company may use derivatives for efficient portfolio management from time
to time. No derivative financial instruments were used during the current year
or prior year. The Company may also write call options over some investments
held in the investment portfolio. There were no call options written during
the current year or prior year.
The fair value of the financial assets and liabilities of the Company at 31
March 2025 is not materially different from their carrying value in the
financial statements.
The Company is exposed to various types of risk that are associated with
financial instruments. The most important types are credit risk, market price
risk, liquidity risk, interest rate risk and foreign currency risk.
The Board reviews and agrees policies for managing its risk exposure. These
policies are summarised below and have remained unchanged for the year under
review.
Credit risk
Credit risk is the risk that an issuer or counterparty will be unable or
unwilling to meet a commitment that it has entered into with the Company.
The Company's principal financial assets are bank balances and cash and other
receivables, whose carrying amounts in the Statement of Financial Position
represent the Company's maximum exposure to credit risk in relation to
financial assets. The Company did not have any exposure to any financial
assets which were past due or impaired at the current or prior year end.
The Company is exposed to potential failure by counterparties to deliver
securities for which the Company has paid, or to pay for securities which the
Company has delivered. A list of pre-approved counterparties used in such
transactions is maintained and regularly reviewed by the Manager, and
transactions must be settled on a basis of delivery against payment. Broker
counterparties are selected based on a combination of criteria, including
credit rating, balance sheet strength and membership of a relevant regulatory
body. Risk relating to unsettled transactions is considered to be small due to
the short settlement period involved and the acceptable quality of the brokers
used. The rate of default in the past has been insignificant.
All of the investments of the Company are held by JPMorgan Chase Bank, the
Company's custodian. Bankruptcy or insolvency of the custodian may cause the
Company's rights with respect to the securities held by the custodian to be
delayed or limited. The Board monitors the Company's risk by reviewing the
custodian's internal control reports.
The credit risk on liquid funds and derivative financial instruments is
limited because the counterparties are banks with high credit ratings,
normally rated A or higher, assigned by international credit rating agencies.
Bankruptcy or insolvency of such financial institutions may cause the
Company's ability to access cash placed on deposit to be delayed, limited or
lost.
The Company has no significant concentration of credit risk with exposure
spread over a number of counterparties and financial institutions.
Market price risk
The fair value of equity and other financial securities held in the Company's
portfolio fluctuates with changes in market prices. Prices are themselves
affected by movements in currencies and interest rates and by other financial
issues, including the market perception of future risks. Other external events
such as protectionism, inflation or deflation, economic recessions,
geopolitical backdrop and terrorism could also affect share prices in
particular markets. The Company's strategy for the management of market price
risk is driven by the Company's investment policy. The Board sets policies for
managing this risk and meets regularly to review full, timely and relevant
information on investment performance and financial results. The management of
market price risk is part of the fund management process and is typical of
equity investment. The portfolio is managed with an awareness of the effects
of adverse price movements through detailed and continuing analysis with an
objective of maximising overall returns to shareholders. Investment
performance is discussed in more detail in the Manager's Review in the Annual
Report and Financial Statements.
Liquidity risk
Liquidity risk is the risk that the Company will encounter difficulty in
realising assets or otherwise raising funds to meet financial commitments. The
risk of the Company not having sufficient liquidity at any time is not
considered by the Board to be significant, given the liquid nature of the
portfolio of investments and the level of cash and cash equivalents ordinarily
held. Cash balances are held with a spread of reputable banks with a credit
rating of normally A or higher, usually on overnight deposit. The Manager
reviews liquidity at the time of making each investment decision. The Board
reviews liquidity exposure at each meeting.
In certain circumstances, the terms of the Company's bank facility entitle the
lender to demand early repayment and, in such circumstances, the Company's
ability to maintain dividend levels and the net asset value attributable to
equity shareholders could be adversely affected. Such early repayment may be
required on the occurrence of certain events of default which are customary
for facilities of this type. These include events of non payment, breach of
other obligations, misrepresentations, insolvency and insolvency proceedings,
illegality and a material adverse change in the financial condition of the
Company.
Interest rate risk
Some of the Company's financial instruments are interest bearing. They can be
a mix of both fixed and variable rate instruments with differing maturities.
As a consequence, the Company is exposed to interest rate risk due to
fluctuations in the prevailing market rate. The Company's exposure to floating
interest rates gives cashflow interest rate risk and its exposure to fixed
interest rates gives fair value interest rate risk.
Floating rate
When the Company retains cash balances the majority of the cash is held in
deposit accounts. The benchmark rate which determines the interest payments
received on cash balances is the bank base rate, which was 4.50 per cent at 31
March 2025 (2024: 5.25 per cent).
When the Company draws down amounts under its revolving credit facility,
interest is payable based on SONIA (which can vary on a daily basis) plus a
margin.
Fixed rate
At 31 March 2025 and 31 March 2024, the Company's investment portfolio did not
contain any fixed interest or floating rate interest assets. At 31 March 2025
the Company had no fixed interest liabilities.
Foreign currency risk
It is not the Company's policy to hedge any overseas currency exposure on
equity investments.
8. 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 during the year.
Cash is only held with banks approved and regularly reviewed by the Manager.
In assessing the going concern basis of accounting the Directors have had
regard to the guidance issued by the Financial Reporting Council. After making
enquiries, and bearing in mind the nature of the Company's business and
assets, the Directors consider 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. For this reason, they
continue to adopt the going concern basis in preparing the financial
statements.
9. 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.
There are no transactions with the Board other than aggregated remuneration
for services as Directors as disclosed in the Directors' Remuneration Report
within the Annual Report and Financial Statements. There are no outstanding
balances with the Board at year end.
Angus Pottinger, a non-executive director of the Company, is also a director
and shareholder of Boardforms Limited. As disclosed in the Corporate
Governance Statement in the Annual Report and Financial Statements, the
Company engaged Boardforms Limited to carry out a board evaluation for the
year under review at a cost of £4,200 (including VAT). Angus Pottinger
recused himself from all discussions regarding the engagement of Boardforms.
The beneficial interests of the Directors in the Ordinary shares and B shares
of the Company are disclosed in the Annual Report and Financial Statements.
Transactions between the Company and Columbia Threadneedle Investment Business
Limited are detailed in the notes to the financial statements.
10. This statement was approved by the Board on 29 May
2025. It is not the Company's full statutory financial statements in terms of
Section 434 of the Companies Act 2006. The statutory Annual Report and
Financial Statements for the year ended 31 March 2025 has been approved and
audited and received an unqualified audit report and did not include a
reference to any matters to which the auditor drew attention by way of
emphasis without qualifying the report. This will be sent to shareholders
during June 2025 and will be available for inspection at 6(th) Floor,
Quartermile 4, 7a Nightingale Way, Edinburgh, EH3 9EG the registered office of
the Company.
The statutory Annual Report and Financial Statements for the year ended 31
March 2024 also received an unqualified audit report and did not include a
reference to any matters to which the auditor drew attention by way of
emphasis without qualifying the report.
The full Annual Report and Financial Statements are available on the website
maintained on behalf of the Company at www.ctukhighincome.co.uk
(http://www.ctukhighincome.co.uk)
The Annual General Meeting of CT UK High Income Trust PLC will be held at 11
am on 28 July 2025 at Columbia Threadneedle Investments, Cannon Place, 78
Cannon Street, London EC4N 6AG.
The audited financial statements for the year to 31 March 2024 have been
lodged with the Registrar of Companies and the audited financial statements
for the year to 31 March 2025 will be lodged with the Registrar of Companies
following the Annual General Meeting.
Alternative Performance Measures ("APMs")
The Company uses the following APMs:
Discount/Premium - the share price of an Investment Trust 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.
At 31 March 2025
Ordinary B shares
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%
Ongoing Charges - all operating costs expected to be incurred in future and
that are payable by the Company, expressed as a proportion of the average net
assets of the Company over the reporting year. The costs of buying and selling
investments and derivatives are excluded, as are interest costs, taxation,
non‑recurring costs and the costs of buying back or issuing shares.
Ongoing charges calculation
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%
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.
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%
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 share price total returns and NAV total returns
are shown below.
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%
( )
(†)During the year to 31 March 2025 dividends/capital repayments totalling
5.71p (Ordinary shares/B shares) went ex-dividend.
31 March 2025
Ordinary B shares
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%
( )
(†)During the year to 31 March 2025 dividends/capital repayments totalling
5.71p (Ordinary shares/B shares) went ex-dividend.
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%
( )
(†)During the 3 years to 31 March 2025 dividends/capital repayments
totalling 16.73p (Ordinary shares/B shares) went ex-dividend.
Yield - The total annual dividend/capital repayment expressed as a percentage
of the year end share price.
31 March 2025
Ordinary B shares
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%
For further information, please contact:
David
Moss
Portfolio Manager to CT UK High Income Trust
PLC Tel: 0131 573 8300
Ian Ridge
For Columbia Threadneedle Investment Business Limited
Company Secretary to CT UK High Income Trust
PLC Tel: 0131 573 8300
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