REG - Edinburgh Worldwide - Edinburgh Worldwide Investment Trst Annual Results
12/01/2026 13:45
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RNS Number : 5614O Edinburgh Worldwide Inv Trust PLC 12 January 2026
RNS Announcement
Edinburgh Worldwide Investment Trust plc
Legal Entity Identifier: 213800JUA8RKIDDLH380
Results for the year to 31 October 2025
The following is the results announcement for the year to 31 October 2025
which was approved by the Board on 12 January 2026.
¾ Strong returns for Shareholders through the first year of the Path for
Growth strategy announced in November 2024. Over the year to 31 October 2025,
the Company's net asset value ('NAV') per share increased by 29.7% and the
share price by 30.2%. The comparative index, the S&P Global Small Cap
Index total return, increased by 12.8% in sterling terms.
¾ Among the top contributors to performance over the year were: SpaceX; and
Alnylam Pharmaceuticals, a drug developer focused on harnessing gene silencing
technology.
¾ Over the course of the financial year, the Company bought back
approximately 24.4 million shares for treasury, representing approximately
6.6% of the Company's issued share capital at 31 October 2024.
¾ Invested equity gearing stood at 2.4% of shareholders' funds at the
financial year end (2024 - 10.9%).
¾ As at the year end, the Company held fourteen private companies
accounting for 22.0% of total assets (2024 - 25.3% of total assets in fourteen
companies). No new private company investments were made during the year.
¾ The Board announces that Mungo Wilson will not be standing for
re-election to the Board as a non-executive Director of the Company at the
annual general meeting to be held in 2026.
¾ The Board remains excited by the opportunity ahead for this unique global
mandate, its strategy focused on exceptional, disruptive and transformative
companies, positioned for long-term growth, and its continued drive to build
momentum from the Path for Growth strategy.
Jonathan Simpson-Dent, Chair of Edinburgh Worldwide Investment Trust
commented:
"Following the Board's extensive strategic review in 2024, shareholders
endorsed our Path for Growth strategy, and I am pleased to report that its
first year of implementation has delivered strong performance. Share price and
NAV returns were more than double our comparative index, reflecting a more
focused, resilient portfolio and the strength of Baillie Gifford's specialist
expertise and primary access to early-stage, high-potential, investment
opportunities in emerging companies operating at the frontiers of scientific,
technological and process innovation.
The Board is resolutely focused on delivering superior outcomes for
shareholders as performance momentum continues to build, and is excited by
this unique portfolio that is well positioned for long-term growth.
Against this backdrop, the unwelcome requisition by Saba Capital represents a
clear threat to the Company's independence, strategy and long-term value
proposition. I thank the hundreds of shareholders who joined an open Question
and Answer meeting last Friday and encourage all shareholders who wish to
protect their investment trust and its unique mandate to vote against all of
Saba's resolutions before the rapidly approaching voting deadlines."
* Source: LSEG and relevant underlying index providers. See disclaimer at the
end of this announcement
For a definition of terms see Glossary of Terms and Alternative Performance
Measures at the end of this announcement. Past performance is not a guide to
future performance.
Baillie Gifford & Co Limited
12 January 2026
The value of an investment and any income from it is not guaranteed and may go
down as well as up and investors may not get back the amount invested. This is
because the share price is determined by the changing conditions in the
relevant stock markets in which the Company invests and by the supply and
demand for the Company's shares. Investment in investment trusts should be
regarded as medium to long-term. You can find up to date performance
information about Edinburgh Worldwide on the Edinburgh Worldwide page of the
Managers' website at edinburghworldwide.co.uk
(https://www.bailliegifford.com/en/uk/individual-investors/funds/edinburgh-worldwide-investment-trust/)
(‡)
(‡)Neither the contents of the Managers' website nor the contents of any
website accessible from hyperlinks on the Managers' website (or any other
website) is incorporated into, or forms part of, this announcement.
For further information please contact:
Investors:
Deutsche Numis
Nathan Brown
Tel: +44 20 7547 0569
nathan.brown@dbnumis.com
Matt Goss
Tel: +44 20 7547 0541
matt.goss@dbnumis.com
Georgeson
EWIT@georgeson.com
Tel: +44 77 4849 1929
Media:
Greenbrook Advisory
Rob White / Peter Hewer
+44 207 952 2000
ewit@greenbrookadvisory.com
Company Secretary:
Baillie Gifford & Co Limited
crtallenquiries@bailliegifford.com
Tel 0131 275 2000
The following text is extracted from the Annual Report and Financial
Statements of the Company for the year ended 31 October 2025 which was
approved by the Board on 12 January 2026. All page numbers below refer to the
Annual Report and Financial Statements which will be made available on the
Company's website.
Chair's statement
Introduction
The financial year to 31 October 2025 represents a significant period for the
Company. The Board undertook a comprehensive review during 2024 to validate
the investment strategy, to assess Baillie Gifford's competitive advantage in
managing the Company, and to develop a plan to deliver improved returns for
Shareholders.
This review concluded with our Path for Growth strategy that was communicated
in November 2024, with Shareholders approving the refined investment policy in
December 2024.
In addition, Shareholder engagement and excitement in Edinburgh Worldwide's
unique mandate was scrutinised and tested in February 2025, when the Company's
largest Shareholder proposed a fundamentally different future approach under
an entirely new board. It was extremely encouraging that Shareholders
overwhelmingly voted to support the future of the Company against the
proposed alternative.
It is therefore particularly pleasing to report that the Company has delivered
strong returns for Shareholders through the first year of the Path for Growth
strategy. While market volatility and geopolitical uncertainty persist, the
Board is excited by the refocused portfolio of exceptional entrepreneurial
businesses and is resolutely focused on seeing performance momentum build into
the new financial year and beyond.
Review of the Year
The Board is pleased to report a strong recovery for Edinburgh Worldwide
during the Company's financial year. Our share price increased by 30.2% in the
12 months to 31 October 2025, while the net asset value ('NAV') per share grew
by 29.7% and the discount narrowed slightly from 7.6% to 7.2% over the period.
The comparative index, the S&P Global Small Cap Index(†), rose at a
markedly lower rate, 12.8% in sterling terms during this same period. The
strong performance over the year builds on the recovery that started in the
second half of the financial year to 31 October 2024.
Total return(*) performance
Six Six Year to
months to months to 31 October
30 April 31 October 2025
2025 2025
Share price -1.9% +32.8% +30.2%
NAV -2.9% +33.6% +29.7%
S&P Global Small Cap Index(†) -7.2% +21.6% +12.8%
Executing on the Path for Growth Strategy
The Path for Growth strategy included rebalancing the portfolio to improve
focus and resilience, as well as greater scrutiny on portfolio construction,
diversification and sell discipline. In addition, in December 2024,
Shareholders approved changes to the investment policy, including: (i) raising
the market capitalisation limit at the point of initial investment in an
investee company from $5bn, set a decade ago, to realign to the largest
constituent of the Company's comparative index, the S&P Global Small Cap
Index; and (ii) reducing the target range of companies in the portfolio to
60-100 companies.
Number of holdings
http://www.rns-pdf.londonstockexchange.com/rns/5614O_1-2026-1-12.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/5614O_1-2026-1-12.pdf)
Key Sector mix
31 October 31 October 31 October Change
2023 2024 2025 since
% % % 31 October
2023
Information technology 24.5 27.0 30.4 é
Industrials 24.7 27.8 28.7 é
Healthcare 36.2 29.9 26.0 ê
Financials 3.3 3.8 2.1 ê
Real estate - - 1.9 é
Consumer discretionary 4.3 4.6 1.9 ê
Materials 0.8 0.7 1.1 é
Consumer staples - - 1.1 é
Communication services 3.8 3.3 - ê
Net liquid assets 2.4 2.9 6.8 é
EWIT Portfolio by Financial Resiliency Cohort
31 October 31 October 31 October Change
2023 2024 2025 since
% % % 31 October
2023
Fledgling: not yet delivering positive gross profit 4.1 3.1 1.6 ê
Initial Commercialisation: delivering gross profit 25.2 16.0 14.6 ê
De-Risking: delivering free cash flow (FCF) margin between -20% and 0% 30.8 16.2 17.7 ê
Execution: delivering positive FCF 15.3 26.8 25.1 é
Proven Return: delivering positive FCF and earnings per share (EPS) 24.6 37.9 41.0 é
Unlisted Investments
Some of the most disruptive and transformative companies are not listed on
public markets and we believe that the Company's Manager continues to have a
genuine edge in identifying and sourcing opportunities that have yet to come
to the attention of a wider universe of investors, particularly those focused
on public companies.
As at the Company's year end, the portfolio weighting in private companies
stood at 22.0% of total assets, invested in fourteen private companies
including SpaceX and PsiQuantum (2024: 25.3% of total assets in fourteen
companies). The Company currently has Shareholder authority to make
investments into unlisted investments of up to 25% of total assets, measured
at the time of investment. When above this figure, the investments can
continue to be held, but new positions or additions cannot be made. For this
reason the Manager, under scrutiny from the Board, closely monitors the
private company mix and actively assesses any liquidity events where
Shareholders could benefit while creating headroom for potential new private
company investments.
Share Buybacks
During the period, the Company bought 24,442,616 shares to be held in treasury
at a total cost of £42.6 million. This represents 6.6% of the Company's
issued share capital as at 31 October 2024.
The Board will continue to operate its share buyback programme under its
available authorities. While being mindful of the interests of longer-term
ongoing Shareholders as well as market liquidity and sentiment, the Company
may make purchases under this programme at a discount to NAV for Shareholders
seeking enhanced liquidity. Whilst not determining or prohibiting factors, the
Board is also mindful of and continuously monitors the level of private
company exposure and invested gearing.
Borrowings
The Company has a five-year £100 million multicurrency revolving credit
facility with The Royal Bank of Scotland International that expires in June
2026. In addition, it also has a two-year £36 million multicurrency revolving
credit facility with The Bank of New York Mellon that expires in October 2026.
The Board intends to renew or replace the facilities on the expiry of the
current arrangements.
The extent and range of equity gearing is discussed by the Board and Managers
at each Board meeting. Both agree that the Company should typically be geared
to equities to maximise potential returns, with the current aspirational
parameters set at +5% to +15% of Shareholders' funds. The invested equity
gearing stood at +2.4% of Shareholders' funds at the financial year end (2024:
+10.9%).
Earnings and Dividend
The Company's objective is to achieve long term capital growth. This year the
net revenue return per share was negative 1.11p per share (2024 - negative
0.70p per share) and therefore no final dividend is being recommended by the
Board. Should the level of underlying income increase in future years, the
Board will seek to distribute to Shareholders the minimum permissible to
maintain investment trust status by way of a final dividend.
Sectoral and activist context
The investment trust sector has seen elevated levels of corporate activity
this year, reflecting the industry's ongoing response to a series of
structural and performance related challenges. These include global market
volatility, persistent discounts, rising demand for liquidity and, notably,
increased activism.
Against this backdrop, the Board has been proactive in tackling these issues,
maintaining a relentless focus on performance through the Path for Growth
strategy, the share buy-back programme, and ensuring Shareholders' views on
the future of the Company have been fully considered.
The Board acknowledges the differing perspectives and lack of clear objectives
expressed by its largest Shareholder and reiterates its commitment to engaging
constructively with all Shareholders. Its priority remains to deliver a truly
differentiated and relevant strategy, to continue its focus on performance and
to evaluate solutions to drive long-term Shareholder returns.
Significant post-period end events
SpaceX revaluation
On 16 December 2025, the Company announced that a trigger event led to a 98.6%
upward adjustment in the valuation of its holding in SpaceX, in line with the
Managers' policy for valuing private company investments. The trigger event
followed public confirmation by SpaceX of a tender offer transaction at an
increased valuation. Immediately following the valuation uplift, SpaceX
represented 15.9% of the Company's total assets, up from 8.5%. In the period
from first investment in SpaceX (2018) by Edinburgh Worldwide to 30 November
2025, SpaceX has delivered an absolute return of 947%. Following this event,
private companies represented 27.6% of the portfolio as at 19 December 2025
(22.0% as at the period end).
Requisitioned General Meeting
On 3 December 2025, Saba Capital Management L.P. ('Saba'), a US hedge fund,
launched its second aggressive campaign in less than a year, calling for the
entire independent Board of the Company to be replaced with US directors
chosen and nominated by Saba. If successful, this campaign would effectively
hand control of the Company over to Saba. It could be a step towards Saba both
being installed as investment manager and fundamentally changing the Company's
unique strategy for its own financial benefit. This was Saba's explicitly
stated goal in its first campaign a year ago, but Saba has failed to
communicate its own objectives in this second campaign.
The only way to stop this from happening is to vote against all of Saba's
requisitioned resolutions before the voting deadlines that, for some
platforms, are as early as 12 January 2026 and, in all cases, no later than 12
noon on 17 January 2026. This time your vote is more important than ever,
since Saba's stake is even higher than in February 2025, so every vote counts.
Our Shareholders must protect the Company's independence to preserve access to
some of the world's most exciting and transformative public and private
businesses.
The Requisitioned General Meeting will be held in person at Baillie Gifford's
offices in Edinburgh at 12 noon on 20 January 2026. The Board looks forward
to seeing as many of you as possible who are able to attend.
Further information, including the proposed resolutions and information on the
deadlines for submitting votes by proxy should you not be able to attend, can
be found in the Circular on the Company's website at trustewit.com
(http://www.trustewit.com) .
Shareholders who hold shares in their own name on the main register will have
been provided with Forms of Proxy. All Shareholders are encouraged to VOTE
AGAINST all of the resolutions to be proposed at the Requisitioned General
Meeting.
Investors who hold their shares through an investment platform provider or
nominee are encouraged to contact their investment platform provider or
nominee as soon as possible to arrange for their votes to be lodged on their
behalf. Guidance notes for the voting process can be found at
www.trustewit.com (http://www.trustewit.com) .
Merger opportunity
On 2 December 2025, the Company announced a proposed merger with Baillie
Gifford US Growth Trust plc. The proposal did not receive support from Saba
Capital, which holds a strategic interest of 30% of the Company's issued share
capital, and is therefore not being progressed at this time.
Annual General Meeting
It is anticipated that the Company will convene its Annual General Meeting to
be held in April 2026 at the office of Baillie Gifford in Edinburgh. A
separate circular, including the Notice of Annual General Meeting and voting
instructions, will be sent to Shareholders in due course.
Board Changes
I would like to extend my thanks to Mungo Wilson who has served as a
non-executive Director to the Company since 2016. Mungo will not be standing
for re-election to the Board in 2026 as he reaches the end of his nine year
tenure. Mungo's insight, judgement and long-term perspective have made a
meaningful difference to the Company. We are deeply grateful for his
commitment and wish him every success to his next chapter.
Outlook
I am extremely excited by the opportunity ahead for the Company and this
unique global mandate, focused on exceptional, disruptive and transformative
companies, positioned for long-term growth. The portfolio is starting to show
its real potential. I thank our investment managers for delivering a strong
first year of The Path for Growth strategy. I also thank the Board for its
unwavering commitment, challenge and partnership. And finally, I thank our
Shareholders for being engaged, vocal and ultimately supportive as the Company
has been deeply tested and scrutinised during the year.
Jonathan Simpson-Dent
Chair
12 January 2026
(*) Alternative Performance Measure - see Glossary of terms and
Alternative Performance Measures at the end of this document.
(†) Total return in sterling terms.
Source: LSEG/Baillie Gifford and relevant underlying index providers. See
disclaimer on page 113
For a definition of terms, see Glossary of terms and Alternative Performance
Measures see pages 117 to 119.
Past performance is not a guide to future performance.
Managers' review
A look back at the key developments and themes that have shaped markets over
the past year
At a high level, the backdrop to the Trust's year to the end of October 2025
had a similar pattern to the previous year: a further easing of inflation and
monetary policy angst, set against an escalation of geopolitical and trade
tensions. Donald Trump's re-election in November 2024 served as a catalyst for
a pronounced reshaping of US foreign policy and a recasting of alliances.
While the new regime was initially met with positive stock market sentiment
regarding pro-growth policies on taxes and deregulation, this quickly gave way
to concerns over the impacts on supply chains, imported inflation, and how
consumer demand would fare in a deglobalising world. The "liberation day"
tariff announcements were the culmination of this and initially caused shock
waves across stock markets and the broader business environment.
The stock market recovery from its April lows has been robust. We believe this
is reflective of the abundant liquidity within the broader financial system, a
theme-hungry investing environment, and a relatively benign real-world impact,
at least thus far, from the tit-for-tat national policy battles. Against this
hard-to-predict and still-evolving backdrop, the stock market has placed a
renewed emphasis on companies that can grow on their own merits, regardless of
the macroeconomic environment. Moreover, our efforts over recent years to
identify pioneering companies innovating in the areas of both business and
nation-state-level resilience and adaptability have been rewarded.
The geopolitical tussles discussed above have had to contend with another
theme that has captured investor attention over the past year, a theme that we
believe will ultimately have much longer-term consequences for both society
and investors. AI has captured the mindshare of investors and business
alike. The enthusiasm of a few years ago, as the initial LLMs emerged, has
made way for profound advancements in capabilities as the scaling laws of
GPU-based computing continue unabated.
While AI deserves credit for these achievements, we believe the bigger picture
is that of a multi‑decade reset in how computation is both performed and
where its use cases will reside. The how it's performed element relates to
both the scale of the compute facilities and data centres being built, but
also the transition from CPU's to GPU's (and we suspect in time towards
quantum computer chips). The use case expansion captures the evolving role of
compute, from simple processing to deep, context-aware understanding.
This has catalysed a huge investment cycle in both AI chips and the
facilities that host them, led by the US hyperscalers such as Google and
Amazon, but also by the LLM builders like OpenAI and Anthropic. The goal being
chased is that of AGI or artificial general intelligence, the ability of AI
models to surpass human problem-solving capabilities across virtually all
cognitive tasks. A prize so great that the drive to chase it is driven by an
uncomfortable mix of existential angst and must‑achieve-at-all-costs
mentality.
While we acknowledge there is an active debate how the business models and
profitability structures for those companies might evolve, the prodigious
cashflows they already have access to at their core give support to long-term
spend here. We think this creates fantastic opportunities for companies that
cater to the build out of the broader ecosystem. From enabling datacentres, to
access to power, their efficient operation, how their GPUs are connected to
maximise usage, through to how the chips are tested before being installed.
Several of these are already in the portfolio today.
Portfolio Update
In last year's annual report, we introduced a new framework for portfolio
construction. This followed a rigorous analysis of the overall portfolio
positioning during the challenging 2021-2023 period. We made significant
enhancements to the investment process, bolstering the investment
decision-making structure, addressing the strategy's key risk factor with a
new portfolio construction framework, and strengthening diversification
guidelines. The aim of these adjustments was to foster greater competition for
capital amongst our earlier-stage ideas and encourage greater diversification
and recycling of capital from companies that had progressed along the
financial maturity spectrum. As expected, this led to an increase in portfolio
turnover, resulting in the Trust exiting a higher number of holdings where we
felt the investment case no longer met the more stringent hurdles. It also
further reduced the number of holdings to around 70, a level which we think
gives us both the focus to strongly express our high conviction ideas, yet
also allows incubation of earlier-stage, less proven businesses.
The largest positive contributors to performance were SpaceX and Alnylam.
Following a lull in Starship launch activity, SpaceX launched its
10th Starship flight, demonstrating a successful payload release and return
to Earth for both its "ship" and booster components. SpaceX also announced a
material expansion of its mobile communication ambitions in acquiring the
rights to significant global mobile spectrum from EchoStar. To date, SpaceX's
ability to provide services directly to mobile devices, without specialist
antennae, has been limited. But when this spectrum is combined with the next
generation of Starlink 'V3' satellites that Starship can launch, this
limitation will fade away and unlock bandwidth for a host of new and
exciting applications.
We saw some highly encouraging early commercial traction for Alnylam's newly
launched drug for TTR Cardiomyopathy. Based on the compelling phase 3 clinical
data, we think they have a robust case to become the first-line therapy in
this life-limiting condition. With a growing consensus that this drug could be
a $10+bn annual peak sales opportunity, it will become a key commercial
underpinning to what we believe could be one of the most productive and
transformative R&D pipelines in the industry.
Our hypothesis that the reshoring of key technologies back to the US was
rapidly becoming a deep strategic imperative was validated when the US
Department of Defence ('DoD') signed a public-private partnership with MP
Materials to fund the expansion of its rare-earth-derived magnet fabrication
capabilities. In conjunction with an expansion of MP Material's
commercial-focused magnet plant in Texas, the new dedicated DoD magnet
facility will see a 10x expansion in MP Material's total magnet production. As
part of this agreement, the DoD took an equity position in MP Materials and
committed to take or pay contracts on high-performing rare earth magnets with
a floor price materially above the prevailing spot price. Shortly after, Apple
announced an agreement with MP Materials for the recycling of magnets from
end-of-life consumer electronics and the reincorporation of this material back
into fresh magnets for Apple devices. Alongside the longstanding partnership
with General Motors, this incremental demand from Apple results in around 50%
of MP Materials' non-DoD capacity being pre‑allocated.
Other notable contributors to performance included Astera Labs, IREN, Aehr
Test Systems and American Superconductor. While all these companies have
distinct growth drivers, they all have products and opportunities that align
with the huge surge in AI‑related data centre build-out.
The largest negative contributors to the Trust's performance included
Sweetgreen, Ocado and RxSight. These companies shared weak customer demand and
suboptimal execution. In the case of Sweetgreen we felt these challenges were
sufficiently impactful that we exited the position.
Portfolio Activity
Over the year, EWIT has invested in 17 new holdings, 9 of which were discussed
in the Interim report. These ideas spanned diverse areas of business activity,
including companies pioneering advances in automation, precision surgery,
smart tracking and advanced data centre capabilities - a timely reminder of
the breadth and global nature of innovation, both in its origins and where
long-term relevance resides.
Aspeed is a leading Taiwanese fabless semiconductor designer focused on
Baseboard Management Controllers (BMCs). These are independent chips that sit
within servers, allowing administrators to access, monitor, and repair them
remotely. Where once BMCs were a helpful option, today they are ubiquitous
across almost all servers. The build out of AI data centres continues at a
prolific pace, and their optimisation demands put increased requirement on to
BMC's, providing both volume and pricing opportunities for Aspeed.
IREN's strategy is to lock up scarce real-world infrastructure - particularly
power, land, and data centre capacity - to capitalize on exponential digital
demand as it materialises. Whilst they have been agnostic around where that
digital demand might originate, they have been naturally pulled to areas where
hosted process can generate the highest ROI. For the past few years, that has
been towards bitcoin mining, ultimately a relatively low-quality activity, but
one where their exceptionally low operating costs confer a robust advantage.
But digital demand is changing and the highest ROI areas for incremental
vacant compute have very much pivoted to AI and LLM's driven by foundational
model developers like OpenAI, Meta, xAI, and Anthropic. The quest for true
artificial super intelligence, and the desire to be the company that brings it
to the world, has put in motion an evolutionary arms race. Through amassing a
hugely relevant bank of land and associated power, alongside critical
knowledge on how to build cutting-edge data centres, we think IREN is uniquely
positioned to partner with digital leaders either as a builder/operator of
their cutting-edge AI infrastructure or as a deeper strategic partner.
The common perception of Horizon Robotics is as one of the leading providers
of hardware and software for driver-assistance and autonomous driving
solutions in China, but we believe the vision is much broader and encompasses
AI-based vision systems in a host of robotics and automation use cases. The
company has taken significant share from Western advanced driver-assistance
system providers, and their new products create a very cost-effective rival to
the leading imported Nvidia and Tesla-based solutions. Strong demand for
autonomous driving solutions from the rapidly growing Chinese car companies
dovetails with a favourable political and regulatory approach by the Chinese
government to this evolving technology, together creating a very strong
backdrop for Horizon's growing capabilities.
We took a position in Kratos as part of a broader assessment into the changing
shape of defence spending and the burgeoning need for low-cost autonomous
capabilities. Through building a unique collection of capabilities across
hypersonic missile test systems and low-cost attritable drones that mimic
hostile fighter jets, we believe Kratos has a unique position to transition
its capabilities into more strategic forms of weaponry. This is perhaps best
exemplified by their autonomous Valkyrie "loyal wingman" drones, which would
be expected to fly alongside manned fighter jets.
Guardant Health is a cancer diagnostics company that provides tests based on
blood samples. These tests can be used to help guide treatment selection where
cancer has already been detected, check for any residual signs of cancer
following treatment and in screening of asymptomatic patients to look for
early signs of cancer. Whilst the current screening test is focused on their
approved colorectal cancer offering, Guardant's strategy of bundling in other
cancer types (through simply incorporating more markers into the same sample
processing workflow) provides an interesting and differentiated way to extend
the franchise and drive returns.
Universal Technical Institute (UTI) is a private chain of trade schools across
the US focused on non-degree skills-based programs. The bulk of its courses
relate to job opportunities in transportation and the energy sector, but
recent years have seen them expand into healthcare services. UTI has been a
high-quality consolidator in this deep and fragmented opportunity. Through
focusing on areas where there is a huge gap between demand and supply, we
think the opportunities to grow are sizeable and the political policies of the
US administration could provide a further tailwind. By expanding the
footprint, the number of courses offered and the links to industry (which
typically funds much of the students' costs) we think the growth outlook is
robust and margins should benefit from scale and growing national presence.
Ehang is a leading global manufacturer of electric vertical take-off and
landing (eVTOL) aircraft. Their flagship product is a fully autonomous,
two-seat, battery-powered, multi-copter eVTOL capable of flying ~30 kilometres
at ~130 kilometres per hour. As of now, they are the only business in the
world to receive regulatory sign-off for manufacture and operation. In the
near term, we see an opportunity in time-sensitive short trips such as airport
transfers. But over time, their technology has the potential to revolutionise
transport networks, reducing congestion, improving access, enhancing emergency
response, and transforming urban infrastructure. While several peers are
addressing the same opportunity, we believe Ehang has some unique advantages.
As the leading Chinese player, they operate under a benign regulatory
framework and are surrounded by some of the most efficient manufacturing
facilities in the world. This has allowed them to bring their vehicle to
market faster than their rivals and sell it at a fraction of the price.
Impinj designs RFID chips and reader chips for use across various industries,
including supply chain management, authentication, and tracking. Its tiny and
flexible form factor has come down the cost curve over time, unlocking
applications in new sectors and items. With more items being tagged and RFID
reading becoming accessible through mobile devices, we anticipate new use
cases continuing to emerge across various industries and commerce. Ultimately,
as adoption expands, chip tagging could become ubiquitous, enabling the
tracking of trillions of items each year.
During the year, we also completed the sale of 29 holdings where we feel the
opportunity cost has become less compelling over time relative to the rest of
the portfolio (including Sprout Social, Quanterix, Blackline) and trimmed a
handful of holdings following a run of strong performance (including SpaceX,
Doximity) to fund buybacks, de-gearing, new purchases and such other potential
returns of capital.
(*) Sutro Biopharma, Ilika, LivePerson Inc, Codexis, Cosmo
Pharmaceuticals, EverQuote Inc, Cellectis, Avacta and Beam.
Baillie Gifford - valuing private companies
We hold our private company investments at 'fair value' i.e. the price that
would be paid in an open-market transaction. Valuations are adjusted both
during regular valuation cycles and on an ad hoc basis in response to 'trigger
events'. Our valuation process ensures that private companies are valued in
both a fair and timely manner.
The valuation process is overseen by a valuations group at Baillie Gifford,
which takes advice from an independent third party (S&P Global). The
valuations group is independent from the investment team with all voting
members being from different operational areas of the firm, and the investment
managers only receive final notifications once they have been applied.
We revalue the private holdings on a three‑month rolling cycle, with one
third of the holdings reassessed each month. During stable market conditions,
and assuming all else is equal, each investment would be valued four times
in a twelve‑month period. For investment trusts, the prices are also
reviewed twice per year by the respective investment trust boards and are
subject to the scrutiny of external auditors in the annual audit process.
Beyond the regular cycle, the valuations group also monitors the portfolio for
certain 'trigger events'. These may include: changes in fundamentals;
a takeover approach; an intention to carry out an Initial Public Offering
('IPO'); company news which is identified by the valuation team or by the
portfolio managers, or meaningful changes to the valuation of comparable
public companies. Any ad hoc change to the fair valuation of any holding is
implemented swiftly and reflected in the next published net asset value. There
is no delay.
The valuations group also monitors relevant market indices on a weekly basis
and updates valuations in a manner consistent with our external valuer's
(S&P Global) most recent valuation report where appropriate.
Periods of market volatility during the year have meant that valuations
continue to be reviewed more frequently, in some instances resulting in a
further valuation movement. The data below quantifies the revaluations carried
out during the year to 31 October 2025, but does not reflect the ongoing
monitoring of the private investment portfolio that has not resulted in a
change in valuation.
Edinburgh Worldwide Investment Trust(*) %
Percentage of portfolio valued up to 4 times 17
Percentage of portfolio valued 5+ times 83
(*) Data reflecting period 1 November 2024 to 31 October 2025 to align
with the Company's reporting period end.
The average movement in company valuations and share prices across the
portfolio in the year to 31 October 2025 are shown below.
Valuation movement £'000
Value of private company investments as at 31 October 2024 182,972
Sales - proceeds received (69,189)
Realised gains on sales 58,678
Change in categorisation - book cost(*) 6,673
Change in categorisation - revaluation loss(*) (6,673)
Investment revaluation gains 52,100
Investment revaluation losses (37,936)
Value of private company investments as at 31 October 2025 186,625
Valuation movement %
Average movement in investee company securities price 8.6
Average movement in investee company valuation 34.4
(*) New Horizon Health delisted on 27 October 2025.
Baillie Gifford stewardship principles
Baillie Gifford's overarching ethos is that we are 'Actual' investors. That
means we seek to invest for the long term. Our role as an engaged owner is
core to our mission to be effective stewards for our clients. As an active
manager, we invest in companies at different stages of their evolution across
many industries and geographies, and focus on their unique circumstances and
opportunities. Our approach favours a small number of simple principles
rather than overly prescriptive policies. This helps shape our interactions
with holdings and ensures our investment teams have the freedom and retain the
responsibility to act in clients' best interests.
Long-term value creation
We believe that companies that are run for the long term are more likely to be
better investments over our clients' time horizons. We encourage our holdings
to be ambitious, focusing on long-term value creation and capital deployment
for growth. We know events will not always run according to plan. In these
instances we expect management to act deliberately and to provide appropriate
transparency. We think helping management to resist short-term demands from
shareholders often protects returns. We regard it as our responsibility to
encourage holdings away from destructive financial engineering towards
activities that create genuine value over the long run. Our value will often
be in supporting management when others don't.
Governance fit for purpose
Corporate governance is a combination of structures and behaviours; a careful
balance between systems, processes and people. Good governance is the
essential foundation for long-term company success. We firmly believe that
there is no single governance model that delivers the best long-term outcomes.
We therefore strive to push back against one-dimensional global governance
principles in favour of a deep understanding of each company we invest in. We
look, very simply, for structures, people and processes which we think can
maximise the likelihood of long-term success. We expect to trust the boards
and management teams of the companies we select, but demand accountability
if that trust is broken.
Alignment in vision and practice
Alignment is at the heart of our stewardship approach. We seek the fair and
equitable treatment of all shareholders alongside the interests of management.
While assessing alignment with management often comes down to intangible
factors and an understanding built over time, we look for clear evidence of
alignment in everything from capital allocation decisions in moments of stress
to the details of executive remuneration plans and committed share ownership.
We expect companies to deepen alignment with us, rather than weaken it, where
the opportunity presents itself.
Sustainable business practices
A company's ability to grow and generate value for our clients relies on a
network of interdependencies between the company and the economy, society and
environment in which it operates. We expect holdings to consider how their
actions impact and rely on these relationships. We believe long-term success
depends on maintaining a social licence to operate and look for holdings to
work within the spirit and not just the letter of the laws and regulations
that govern them. Material factors should be addressed at the board level as
appropriate.
Income statement
For the year ended 31 October
Notes 2025 2025 2025 2024 2024 2024
Revenue Capital Total Revenue Capital Total
£'000 £'000 £'000 £'000 £'000 £'000
Gains on investments 8 - 185,912 185,912 - 77,573 77,573
Currency gains 12 - 1,444 1,444 - 3,975 3,975
Income 2 1,448 - 1,448 1,301 - 1,301
Investment management fee 3 (1,051) (3,152) (4,203) (829) (2,488) (3,317)
Other administrative expenses 4 (3,289) - (3,289) (1,520) - (1,520)
Net return before finance costs and taxation (2,892) 184,204 181,312 (1,048) 79,060 78,012
Finance costs of borrowings 5 (1,061) (3,184) (4,245) (1,571) (4,714) (6,285)
Return on ordinary activities before taxation (3,953) 181,020 177,067 (2,619) 74,346 71,727
Tax on ordinary activities 6 (64) - (64) (46) - (46)
Net return after taxation (4,017) 181,020 177,003 (2,665) 74,346 71,681
Net return per ordinary shares 7 (1.11p) 49.96p 48.85p (0.70p) 19.48p 18.78p
The total column of this Statement represents the profit and loss account of
the Company. The supplementary revenue and capital columns are prepared under
guidance issued by the Association of Investment Companies.
All revenue and capital items in this Statement derive from continuing
operations.
A Statement of Comprehensive Income is not required as the Company does not
have any other comprehensive income and the net return after taxation is both
the (loss)/profit and total comprehensive (expense)/income for the year.
Balance sheet
As at 31 October
Notes 2025 2025 2024 2024
£'000 £'000 £'000 £'000
Fixed assets
Investments held at fair value through profit or loss 8 789,855 705,032
Current assets
Debtors 9 1,218 1,172
Cash and cash equivalents 17 59,326 22,783
60,544 24,955
Creditors
Amounts falling due within one year 10 (81,442) (94,384)
Net current liabilities (20,898) (70,429)
Net assets 768,957 634,603
Capital and reserves
Share capital 11 4,058 4,058
Share premium account 12 - 499,723
Distributable capital reserve 12 499,723 -
Special reserve 12 35,220 35,220
Capital reserve 12 245,254 106,883
Revenue reserve 12 (15,298) (11,281)
Total shareholders' funds 768,957 634,603
Net asset value per ordinary share 13 220.97p 170.40p
The Financial Statements of Edinburgh Worldwide Investment Trust plc (Company
registration number SC184775) were approved and authorised for issue by the
Board and were signed on 12 January 2026.
Jonathan Simpson-Dent
Chair
Statement of changes in equity
For the year ended 31 October 2025
Notes Share Share Distributable Special Capital Revenue Shareholders'
capital premium capital reserve reserve reserve funds
£'000 account reserve £'000 £'000 £'000 £'000
£'000 £'000
Shareholders' funds at 1 November 2024 4,058 499,723 - 35,220 106,883 (11,281) 634,603
Ordinary shares bought back into treasury 11 - - - - (42,649) - (42,649)
Cancellation of share premium account 12 (499,723) 499,723 - - - -
Net return after taxation 12 - - - - 181,020 (4,017) 177,003
Shareholders' funds at 31 October 2025 4,058 - 499,723 35,220 245,254 (15,298) 768,957
For the year ended 31 October 2024
Notes Share Share Special Capital Revenue Shareholders'
capital premium reserve reserve reserve funds
£'000 account £'000 £'000 £'000 £'000
£'000
Shareholders' funds at 1 November 2023 4,058 499,723 35,220 54,352 (8,616) 584,737
Ordinary shares bought back into treasury 11 - - - (21,815) - (21,815)
Net return after taxation 12 - - - 74,346 (2,665) 71,681
Shareholders' funds at 31 October 2024 4,058 499,723 35,220 106,883 (11,281) 634,603
Cash flow statement
For the year ended 31 October
Notes 2025 2025 2024 2024
£'000 £'000 £'000 £'000
Cash flows from operating activities
Net return before taxation 177,067 71,727
Adjustments to reconcile company profit before tax to net cash flow from
operating activities
Net gains on investments (185,912) (77,573)
Currency gains (1,444) (3,975)
Finance costs of borrowings 4,245 6,285
Working capital movements
Changes in debtors (201) (661)
Changes in creditors 534 (264)
Taxation
Overseas withholding tax incurred (64) (46)
Cash from operations(*) (5,775) (4,507)
Interest paid (4,474) (6,539)
Net cash outflow from operating activities (10,249) (11,046)
Cash flows from investing activities
Acquisitions of investments (156,210) (126,456)
Disposals of investments 257,142 170,441
Net cash inflow from investing activities 100,912 43,985
Cash flows from financing activities
Ordinary shares bought back into treasury and stamp duty thereon (41,910) (21,772)
Bank loans drawn down 279,583 365,783
Bank loans repaid (293,583) (373,783)
Net cash outflow from financing activities (55,910) (29,772)
Increase in cash and cash equivalents 34,753 3,167
Exchange movements 1,790 470
Cash and cash equivalents at 1 November 22,783 19,146
Cash and cash equivalents at 31 October 59,326 22,783
(*) Cash from operations includes dividends received of £1,009,000
(2024 - £638,000) and interest received of £245,000 (2024 - £663,000).
Twenty largest holdings and twelve month performance
Year to 31 October 2025
Name Business Country Fair value % of Absolute (†) Relative (†)
2025 total performance performance
£'000 assets (*) % %
Space Exploration Technologies Series N Preferred+ Designs, manufactures and launches advanced rockets and spacecraft USA 71,152 8.4 85.5 64.5
Alnylam Pharmaceuticals Drug developer focussed on harnessing gene silencing technology USA 57,547 6.8 67.2 48.2
PsiQuantum(#)+ Developer of commercial quantum computing USA 55,234 6.5 53.8 36.3
Aerovironment Small unmanned aircraft and tactical missile systems USA 39,629 4.7 67.9 48.9
American Superconductor Designs and manufactures power systems and superconducting wire USA 27,373 3.2 136.8 110.0
Axon Enterprise Law enforcement equipment and software provider USA 27,354 3.2 69.6 50.4
Xometry On-demand digital manufacturing marketplace USA 22,440 2.6 35.8(‡) 27.5(‡)
Oxford Nanopore Technologies Novel DNA sequencing technology UK 21,076 2.5 1.9 (9.6)
Zillow(#) US online real estate portal USA 16,263 1.9 21.9 8.1
Astera labs Connectivity hardware for cloud and AI infrastructure USA 14,372 1.7 212.8(‡) 148.8(‡)
Exact Sciences Non-invasive molecular tests for early cancer detection USA 14,121 1.7 (8.2) (18.6)
Guardant Health Blood-based cancer diagnostics USA 13,931 1.6 92.2(‡) 74.2(‡)
SkyWater Technology US specialist semiconductor fabrication company USA 13,169 1.6 74.4 54.7
Twist Bioscience Biotechnology company USA 12,630 1.5 (20.4) (29.4)
AEHR Test Systems Semiconductor testing systems provider USA 12,409 1.5 80.7 60.2
JFrog Software development tools and management Israel 12,094 1.4 58.6 40.7
dLocal Latin American developer of cross border payments platform Uruguay 11,728 1.4 71.3 51.9
IREN Renewable energy and data-centre infrastructure provider Australia 11,052 1.3 248.7(‡) 227.5(‡)
QuantumScape Solid-state batteries for electric vehicles USA 10,143 1.2 249.5 209.9
TransMedics Group Medical device company USA 9,941 1.2 57.0 39.2
473,658 55.9
(*) Total assets comprises all assets held less all liabilities other
than liabilities in the form of borrowings.
(†) Absolute and relative performance has been calculated on a total
return basis over the period 1 November 2024 to 31 October 2025.
Absolute performance is in sterling terms; relative performance is against
S&P Global Small Cap Index (in sterling terms).
(#) More than one line of stock held. Holding information represents the
aggregate of both lines of stock.
(‡) Figures relate to part-period returns where security has been
purchased or added to during the period.
+ Denotes private company investment.
Source: Baillie Gifford/Revolution and relevant underlying index providers.
See disclaimer at the end of this document.
Past performance is not a guide to future performance.
List of investments
as at 31 October 2025
Name Business Country Fair value % of Fair value
2025 total 2024
£'000 assets £'000
Space Exploration Technologies Series N Preferred+ Designs, manufactures and launches advanced rockets and spacecraft USA 71,152 8.4 51,624
Alnylam Pharmaceuticals Drug developer focussed on harnessing gene silencing technology USA 57,547 6.8 41,779
PsiQuantum Series C Preferred+ Developer of commercial quantum computing USA 33,748 4.0 21,936
PsiQuantum Series D Preferred+ Developer of commercial quantum computing USA 21,486 2.5 13,987
55,234 6.5 35,923
Aerovironment Small unmanned aircraft and tactical missile systems USA 39,629 4.7 30,325
American Superconductor Designs and manufactures power systems and superconducting wire USA 27,373 3.2 15,886
Axon Enterprise Law enforcement equipment and software provider USA 27,354 3.2 20,801
Xometry On-demand digital manufacturing marketplace USA 22,440 2.6 -
Oxford Nanopore Technologies Novel DNA sequencing technology UK 21,076 2.5 21,445
Zillow Class C US online real estate portal USA 13,768 1.6 21,531
Zillow Class A US online real estate portal USA 2,495 0.3 2,070
16,263 1.9 23,601
Astera labs Connectivity hardware for cloud and AI infrastructure USA 14,372 1.7 -
Exact Sciences Non-invasive molecular tests for early cancer detection USA 14,121 1.7 17,407
Guardiant Health Blood-based cancer diagnostics USA 13,931 1.6 -
SkyWater Technology US specialist semiconductor fabrication company USA 13,169 1.6 7,545
Twist Bioscience Biotechnology company USA 12,630 1.5 8,562
AEHR Test Systems Semiconductor testing systems provider USA 12,409 1.5 8,211
JFrog Software development tools and management Israel 12,094 1.4 10,551
dLocal Latin American developer of cross border payments platform Uruguay 11,728 1.4 7,163
Iren Renewable energy and data-centre infrastructure provider Australia 11,052 1.3 -
Shine Technologies (Illuminated Holdings) Series C-5 Preferred+ Medical radioisotope production USA 7,226 0.9 6,955
Shine Technologies (Illuminated Holdings) Series Convertible Medical radioisotope production USA 3,044 0.4 3,111
Promissory Note+
Shine Technologies (Illuminated Holdings) Series Convertible Loan Note+ Medical radioisotope production USA 761 0.1 778
11,031 0.5 10,844
QuantumScape Solid-state batteries for electric vehicles USA 10,143 1.2 3,457
TransMedics Group Medical device company USA 9,941 1.2 6,800
ASPEED Technology Server management SoCs and remote management solutions Taiwan 9,869 1.2 -
MP Materials Rare Earth Materials Company USA 9,595 1.1 5,203
BillionToOne Series C Preferred+ Pre-natal diagnostics USA 8,359 1.0 4,810
BillionToOne Series C-1 Preferred+ Pre-natal diagnostics USA 1,139 0.1 655
9,498 1.1 5,465
Ocado Group Online grocery retailer and technology provider UK 9,117 1.1 14,472
LiveRamp Holdings Marketing technology company USA 8,878 1.0 8,300
Kingdee International Software Group Enterprise management software provider China 8,738 1.0 9,684
Amplitude Product analytics software USA 8,710 1.0 -
Genmab Antibody based drug development Denmark 8,569 1.0 6,852
IPG Photonics High-power fibre lasers USA 8,488 1.0 8,261
Silex Systems Australian pioneer of laser enrichment technology Australia 8,468 1.0 3,887
Horizon Robotics Edge AI chips and autonomous driving solutions China 8,440 1.0 -
Appian Enterprise software developer USA 8,366 1.0 11,972
Doximity Online healthcare resource and interactive platform developer USA 8,234 1.0 12,268
Astranis Space Technologies Series C Preferred+ Communication satellite manufacturing and operation USA 7,371 0.9 7,175
Astranis Space Technologies Series C Prime Preferred+ Communication satellite manufacturing and operation USA 614 0.1 598
7,985 1.0 7,773
Epic Games+ Video game platform and software developer USA 7,904 0.9 6,970
Park Systems Manufacturer of atomic force microscopy systems South Korea 7,591 0.9 -
Catapult Group International Analytics and data collection technology for sports teams and athletes Australia 7,443 0.9 2,402
Echodyne Corp. Series C Preferred+ Metamaterial radar sensors and software USA 7,426 0.9 3,719
E Ink Holdings Develops, manufactures and sells electronic paper technology-related materials Taiwan 7,132 0.8 -
and display products
Impinj RFID solutions conneacting physical items to the cloud USA 6,832 0.8 -
Lightning Labs+ Lightning software that enables users to send and receive money USA 6,820 0.8 5,915
Progyny Fertility benefits management company USA 6,800 0.8 5,592
Wireless Facilities Wireless network engineering and deployment services USA 6,762 0.8 -
PureTech Health IP commercialisation focused on healthcare UK 6,677 0.8 7,719
Confluent Data-streaming platform based on Apache Kafka USA 6,451 0.8 -
Harmonic Drive Systems Precision motion-control components Japan 6,415 0.8 -
Upwork Online freelancing and recruitment services platform USA 6,270 0.7 12,590
Schrödinger Drug discovery and simulation software USA 6,024 0.7 5,149
Raspberry Pi Technology company UK 5,755 0.7 3,480
MarketAxess Holdings Electronic bond trading platform USA 5,451 0.6 13,267
Universal Technical Institute Technical education for automotive and skilled trades USA 5,540 0.7 -
PeptiDream Peptide based drug discovery platform Japan 5,306 0.6 9,980
EHang Holdings Autonomous aerial vehicle developer China 5,239 0.6 -
InfoMart Online platform for restaurant supplies Japan 5,141 0.6 7,774
Ceres Power Holdings Developer of fuel cells UK 5,066 0.6 3,781
Tandem Diabetes Care Manufacturer of insulin pumps for diabetic patients USA 5,015 0.6 4,319
Veeco Instruments Semiconductor equipment company USA 4,832 0.6 4,945
Novocure Manufacturer of medical devices for cancer treatment USA 4,487 0.5 5,435
Snyk Ordinary Shares+ Security software UK 1,263 0.1 2,517
Snyk Series F Preferred+ Security software UK 3,011 0.4 4,219
4,274 0.5 6,736
Silergy Designs and manufactures a broad range of high performance analog integrated China 4,225 0.5 7,481
circuits
Kornit Digital Manufacturer of digital inkjet printers Israel 4,117 0.5 -
Cryoport Chain logistics solutions provider for the life sciences industry USA 4,103 0.5 3,017
Zai Lab - HK Line Chinese bio-pharmaceutical development and distribution company China 4,006 0.5 6,733
Procept BioRobotics Robotics for minimally invasive urological procedures USA 3,846 0.5 -
KSQ Therapeutics+ Biotechnology target identification company USA 2,922 0.3 4,965
RxSight Implantable adjustable lens provider after cataract surgery USA 2,035 0.2 6,259
Sensirion Holding Manufacturer of gas and flow sensors Switzerland 1,926 0.2 1,997
DNA Script Series C Synthetic DNA fabricator France 1,260 0.1 1,177
Preferred+
C4X Discovery Holdings+ Software to aid drug design UK 1,118 0.1 1,377
C4X Discovery - Warrants+ Software to aid drug design UK - - -
1,118 0.1 1,377
New Horizon Health(†) Cancer screening company China - - 1,106
Reaction Engines+ Advanced heat exchange company UK - - -
Relativity Space+ 3D printing and aerospace launch company USA - - -
Chinook Therapeutics - CVR Line Immunotherapy drug development USA - - -
China Lumena New Materials - Delisted Mines, processes and manufactures natural thenardite products China - - -
4D Pharma - Delisted Microbiome biology therapeutics UK - - -
Total equities 789,855 93.2
Net liquid assets 57,193 6.8
Total assets(*) 847,048 100.0 726,347
(*) Total assets comprises all assets held less all liabilities in the
form of borrowings.
+ Denotes private company investment.
(†) Delisted on 27 October 2025.
Listed Unlisted Net liquid Total
equities securities (#) assets assets
% % % %
31 October 2025 71.2 22.0 6.8 100.0
31 October 2024 71.8 25.3 2.9 100.0
Figures represent percentage of total assets.
(#) Includes holdings in preference shares, ordinary shares, suspended
shares and convertible promissory notes.
Distribution of total assets
At 31 October
Geographical 2025
Geographical 2025 2024
% %
1 North America 70.6 73.5
USA 70.6 73.5
2 Europe 9.5 15.1
United Kingdom 6.3 10.5
Eurozone 1.3 0.7
Developed Europe (non euro) 1.9 3.9
3 Asia 8.5 5.9
China 3.6 3.4
Taiwan 2.0 -
Japan 2.0 2.5
South Korea 0.9 -
4 Australasia 3.2 1.6
Australia 3.2 0.9
New Zealand - 0.7
5 South America 1.4 1.0
Uruguay 1.4 1.0
6 Net liquid assets 6.8 2.9
Sectoral 2025
Sectoral 2025 2024
% %
1 Information technology 30.4 27.0
2 Industrials 28.7 27.8
3 Healthcare 26.0 29.9
4 Financials 2.1 3.8
5 Real estate 1.9 -
6 Consumer discretionary 1.9 4.6
7 Materials 1.1 0.7
8 Consumer staples 1.1 -
9 Communication services - 3.3
10 Net liquid assets 6.8 2.9
(*) Total assets comprises all assets held less all liabilities other
than liabilities in the form of borrowings.
Principal and emerging risks
As explained on pages 70 and 71 there is an ongoing process for identifying,
evaluating and managing the risks faced by the Company on a regular basis. The
Directors have carried out a robust assessment of the principal and emerging
risks facing the Company, including those that would threaten its business
model, future performance, regulatory compliance, solvency or liquidity. There
have been some changes to the principal risks during the year reflecting the
volatility of markets, economic conditions and ongoing geopolitical tensions
which have increased risk levels in some key areas. A description of these
risks, an assessment of the risk level and how they are being managed or
mitigated together with the change in assessment of any increase or decrease
in risk during the year is set out on pages 46 to 50.
Investment and strategic risks
Investment strategy risk
What is the risk? How is it managed? Rating and change Current assessment of risk
Pursuing an investment strategy to fulfil the Company's objective which the To mitigate this risk, the Board regularly reviews and monitors the Company's ↑ Risk level: High
market perceives to be unattractive or inappropriate, or the ineffective objective and investment policy and strategy, the investment portfolio and its
implementation of an attractive or appropriate strategy, may lead to reduced absolute and relative performance, the level of discount/ premium to net asset This risk is considered to have increased during the year.
returns for shareholders and, as a result, a decreased demand for the value at which the shares trade and movements in the share register and raises
Company's shares. This may lead to the Company's shares trading at a widening any matters of concern with the Managers. In 2024, the Board initiated a While there are signs that the market's appetite for growth stocks, typically
discount to their net asset value. detailed review of the Company's strategy, execution and performance resulting held by the Company, is recovering and the Company has outperformed
in a comprehensive action plan to improve shareholder returns. Shareholders
approved amendments to the investment policy at the General Meeting held on 18 its benchmark over the year to
December 2024. The Board monitors performance and compliance with the
investment policy in light of these changes. 31 October 2025; and
1. A requisition notice from a significant minority shareholder Saba Capital
holding a strategic interest in the shares of the Company, proposing the
replacement of the existing Directors with alternate directors of its own
choosing.
2. A proposed merger with Baillie Gifford US Growth Trust plc has not
received support from Saba Capital and is therefore not being progressed at
this time, therefore increasing uncertainty regarding
the strategic outlook for the Company.
Financial risk
What is the risk? How is it managed? Rating and change Current assessment of risk
The Company's assets are listed and unlisted securities and its principal and The Board has considered the impact of market volatility driven by ─ Risk level: High
emerging financial risks therefore macroeconomic factors such as higher interest rates and geopolitical concerns.
To manage this risk, the Board regularly reviews metrics on portfolio This risk is considered to be unchanged and remains high due to the heightened
include market risk (comprising currency risk, interest rate risk and other composition and diversification alongside investment transactions. Discussions macroeconomic and geopolitical concerns and the threat to trade from increased
price risk), liquidity risk and credit risk. An explanation of those risks and with the portfolio manager cover individual investments and market insights. protectionism which continue to create a challenging environment for
how they are managed is contained in note 17 to the Financial Statements on An annual strategy meeting is conducted. Following a detailed review in 2024 businesses..
pages 101 to 109. of the Company's strategy and performance involving independent advisors, the
Board continues to actively monitor the execution of the 'Path for Growth'
action plan for improved execution and performance.
Smaller company risk
What is the risk? How is it managed? Rating and change Current assessment of risk
The Company has investments in smaller, immature companies which are generally To mitigate this risk, the Board reviews the investment portfolio at each ─ Risk level: High
considered higher risk as changes in their share prices may be greater and the meeting and discusses the merits and characteristics of individual investments
shares may be harder to sell. Smaller, immature companies may do less well in with the Managers. A spread of risk is achieved by holding stocks classified This risk is considered to be stable but remains elevated as market volatility
periods of unfavourable economic conditions. across at least fifteen industries and six countries. from ongoing geopolitical instability has a greater impact on the share prices
of smaller companies which are typically more sensitive to market sentiment
and macroeconomic shocks.
Private company (unlisted) investments risk
What is the risk? How is it managed? Rating and change Current assessment of risk
The Company's risk is increased by its investment in private company To mitigate this risk, the Board considers the private company securities in ─ Risk level: Moderate
securities. These investments may be more difficult to buy or sell, assessment the context of the overall investment strategy and provides guidance to the
of their value is more subjective than for investments listed on a recognised Managers on the maximum exposure to unlisted investments. Valuations of This risk is considered to be stable but remains elevated as private company
stock exchange and their valuations may be perceived to be more volatile or private companies are carried out on a frequent basis by the manager and valuations continue to be sensitive to volatile market conditions and a
out of date. updated regularly for identified changes in operational developments or recent challenging fundraising and IPO environment, although these have been
transactions in shares. The Board reviews the valuations in detail which are improving recently. The reduced availability of external capital
carried out by a third party valuation specialist, subject to the Managers'
private company valuation specialist input and is also subject to external and limited transaction activity
audit scrutiny annually.
increases uncertainty around valuation inputs and exit assumptions. These
factors contribute to higher overall investment risk for private companies
within the portfolio.
Discount risk
What is the risk? How is it managed? Rating and change Current assessment of risk
The discount/premium at which the Company's shares trade relative to its net The Board monitors the level of discount/ premium at which the shares trade ─ Risk level: High
asset value can change. The risk of a and the Company has authority to buy back its existing shares or issue shares
(including authority to sell shares held in treasury), when deemed by the This risk remains elevated as, despite discount narrowing and enhanced
widening discount is that it may undermine investor confidence in the Company. Board to be in the best interests of the Company and its shareholders. During buybacks, sentiment influenced by market conditions and activist activity
the year the Board significantly increased the level of buybacks could lead to continuing discount volatility.
and announced its intention to return up to £130m to shareholders. The Board
also evaluated a proposed merger with the Baillie Gifford US Growth Trust plc
(see page 68) which included a 40% return of capital at a narrow discount to
net asset value.
Political and associated economic financial risk
What is the risk? How is it managed? Rating and change Current assessment of risk
The Board is of the view that political change in areas in which the Company Political developments are closely monitored and considered by the Board. It ↑ Risk level: High
invests or may invest may have practical consequences for the Company. monitors portfolio diversification by investee companies' primary location and
considers the potential for negative impacts arising from military action, This risk is considered to be increasing as deteriorating geopolitical
trade barriers or other political factors. stability increases the prospect of further trade conflict and sanctions.
Cyber security risk
What is the risk? How is it managed? Rating and change Current assessment of risk
A cyber-attack on Baillie Gifford's network or that of a third party service To mitigate this risk, the Audit and Management Engagement Committee review ↑ Risk level: Moderate
provider could impact the confidentiality, integrity or availability of data Reports on Internal Controls published by Baillie Gifford and other third
and systems. Emerging technologies, including AI and quantum computing party service providers. Baillie Gifford's Business Risk Department report to Cyber attacks are increasing globally and could proliferate further. Emerging
capabilities, may introduce new, and increase existing information security the Audit and Management Engagement Committee on the effectiveness of technologies, including AI, could potentially increase information security
risks that impact operations. information security controls in place at Baillie Gifford and its business risks.
continuity framework. Cyber security due diligence is performed by Baillie
Gifford on third party service providers which includes a review of crisis
management and business continuity frameworks.
Climate and governance risk
What is the risk? How is it managed? Rating and change Current assessment of risk
Perceived problems on environmental, social and governance ('ESG') matters in This is mitigated by the Managers' strong ESG stewardship and engagement ─ Risk level: Moderate
an investee company could lead to that company's shares being less attractive policies which are integrated into the investment process which includes the
to investors, adversely affecting its share price, in addition to potential risk inherent in climate change (see page 53), and discussed regularly by the This risk is considered to be unchanged. The Managers continue to employ
valuation issues arising from any direct impact of the failure to address the Board with the Managers. Further details of the Managers' approach are set out strong ESG stewardship and engagement policies
ESG weakness on the operations or management of the investee company (for on page 34 and also on the Managers' website bailliegifford.com/esg. The
example in the Directors have considered the impact of climate change on the Financial
Statements of the Company and this is included in note 1a to the Financial
event of an industrial accident or spillage). Repeated failure by the Managers Statements on page 90.
to identify ESG weaknesses in investee companies could lead to the Company's
own shares being less attractive to investors, adversely affecting its own
share price. In addition, the valuation of investments could be impacted by
climate change.
Regulatory risk
What is the risk? How is it managed? Rating and change Current assessment of risk
Failure to comply with applicable legal and regulatory requirements such as To mitigate this risk, Baillie Gifford's Business Risk, Internal Audit and ─ Risk level: Low
the tax rules for investment trust companies, the FCA Listing Rules and the Compliance Departments provide regular reports to the Audit and Management
Companies Act could lead to suspension of the Company's Stock Exchange Engagement Committee on Baillie Gifford's monitoring programmes. Should major This risk is considered to be unchanged. All control procedures are working
listing, financial penalties, a qualified audit report or the Company being regulatory change seem likely to impose disproportionate compliance burdens on effectively. There have been no material regulatory changes that have impacted
subject to tax on capital gains. Changes to the regulatory environment could the Company, representations are made to the relevant authorities to ensure the Company during the year.
negatively impact the Company. that the special circumstances of investment trusts are recognised.
Shareholder documents and announcements, including the Company's published
Interim and Annual Report and Financial Statements, are subject to stringent
review processes, and procedures are in place to ensure adherence to the
Transparency Directive with reference to inside information.
Custody and Depositary risk
What is the risk? How is it managed? Rating and change Current assessment of risk
Safe custody of the Company's assets may be compromised through control To mitigate this risk, the Audit and Management Engagement Committee receives ─ Risk level: Low
failures by the Depositary, including cyber security incidents. six monthly reports from the Depositary confirming safe custody of the
Company's assets held by the Custodian. Cash and portfolio holdings are This risk is considered to be unchanged. All control procedures are working
independently reconciled to the Custodian's records by the Managers who also effectively.
agree uncertificated unlisted portfolio holdings to confirmations from
investee companies. In addition, the existence of assets is subject to annual
external audit and the Custodian's internal controls assurance reports are
reviewed by Baillie Gifford's business risk department and a summary of the
key points is reported to the Audit and Management Engagement Committee and
any concerns investigated.
Operational risk
What is the risk? How is it managed? Rating and change Current assessment of risk
Failure of Baillie Gifford's systems or those of other third party service To mitigate this risk, Baillie Gifford has a comprehensive business ─ Risk level: Low
providers could lead to an inability to provide accurate reporting and continuity plan which facilitates continued operation of the business in the
monitoring or a misappropriation of assets. event of a service disruption or major disaster. The Audit and Management This risk is considered to be unchanged. All control procedures are working
Engagement Committee reviews Baillie Gifford's Report on Internal Controls and effectively.
the reports by other key third party providers are reviewed by
Baillie Gifford on behalf of the Board and a summary of the key points is
reported to the Audit and Management Engagement Committee and any concerns
investigated. The other key third party service providers have not experienced
significant operational difficulties affecting their respective services to
the Company.
Leverage risk
What is the risk? How is it managed? Rating and change Current assessment of risk
The Company may borrow money for investment purposes (sometimes known as To mitigate this risk, all borrowings require the prior approval of the Board ↓ Risk level: Low
'gearing' or 'leverage'). If the investments fall in value, any borrowings and leverage levels are discussed by the Board and Managers at every meeting.
will magnify the impact of this loss. If borrowing facilities are not renewed, Covenant levels are monitored regularly. Details of the Company's current This risk is considered to be lower as gearing has been reduced over the year.
the Company may have to sell investments to repay borrowings. borrowing facilities and drawings can be found in note 10 on page 99. The The Company has two revolving credit facilities in place which expire in 2026
majority of the Company's investments are in quoted securities that are
readily realisable. Further information on leverage can be found on page 112
and in the Glossary of terms and Alternative Performance Measures on pages 117
to 119.
Emerging risks
As explained on page 70 the Board has regular discussions on principal risks
and uncertainties, including any risks which are not an immediate threat but
could arise in the longer term.
↑ Increasing Risk ↓ Decreasing Risk ─ Stable Risk
Promoting the success of the Company (section 172 statement)
Under section 172 of the Companies Act 2006, the directors of a company must
act in the way they consider, in good faith, would be most likely to promote
the success of the company for the benefit of its members as a whole, and in
doing so have regard (amongst other matters and to the extent applicable) to:
a) the likely consequences of any decision in the long term, b) the interests
of the company's employees, c) the need to foster the company's business
relationships with suppliers, customers and others, d) the impact of the
company's operations on the community and the environment, e) the desirability
of the company maintaining a reputation for high standards of business
conduct, and f) the need to act fairly as between members of the company.
In this context, having regard to the Company being an externally‑managed
investment company with no employees, the Board considers the Company's key
stakeholders to be: its existing and potential new shareholders; its
externally‑appointed Managers and Secretaries (Baillie Gifford); other
professional service providers (corporate broker, registrar, auditor and
Depositary); lenders; wider society and the environment.
The Board considers that the interests of the Company's key stakeholders
should be aligned, in terms of wishing to see the Company deliver sustainable
long‑term growth, in line with the
Company's stated objective and strategy, and meet the highest standards of
legal, regulatory, and commercial conduct, with the differences between
stakeholders being merely a matter of emphasis on those elements.
The Board recognises the importance of maintaining the interests of the
Company and its stakeholders in aggregate, firmly front of mind in its key
decision making and Baillie Gifford & Co Limited, the Company Secretaries
are at all times available to the Board to ensure that suitable consideration
is given to the range of factors to which the Directors should have regard. In
addition to ensuring that the Company's stated investment objective was being
pursued, key decisions and actions during the year which required the
Directors to have regard to applicable section 172 factors included:
Key decision Action
Requisitioned General Meeting ('RGM') In December 2024, the Company received a requisition from Saba Capital,
significant minority shareholder with a strategic interest, seeking to remove
the entire Board and appoint its own nominees. The Board undertook a detailed
assessment and concluded unanimously that the proposals were not in the best
interests of shareholders as a whole. To support informed voting, the Board
appointed specialist advisers and issued a comprehensive
circular explaining its analysis and recommendation to reject the resolutions.
The Board also engaged extensively with shareholders throughout the process.
Shareholder participation was significantly higher than in previous years and
the resolutions were decisively rejected, providing a clear mandate for the
Board to continue its stewardship of the Company.
Capital Return The Board remained mindful of the commitment made in November 2024 to return
up to
£130 million of capital to shareholders. During the year, the Board
implemented the necessary steps to support this commitment, including the
reduction of the share premium account to increase the level of distributable
reserves.
A tender offer was developed to provide a meaningful capital return to all
shareholders. However it became apparent through consultation with Saba
Capital that the proposal would not secure the required level of support. In
order to avoid unnecessary costs the Board therefore paused the tender process
while maintaining its focus on disciplined and shareholder‑aligned capital
allocation.
Share Buybacks Share buybacks continued to play a central role in capital management and
discount control. Over the year:
• The Company purchased 24,442,616 shares in treasury at a total cost of
£42.6 million.
This represents 6.6% of the Company's issued share capital as at 31 October
2024.
• Between 1 November 2025 and 8 January 2026, a further 1,340,000 shares
were repurchased at a discount, again on value‑accretive terms.
These shares may, when conditions allow, be reissued at a premium to NAV,
supporting effective liquidity and discount management.
Key decision Action
Merger Proposal As part of its broader strategic engagement during the year, the Board
explored the potential for a merger with Baillie Gifford US Growth Trust plc,
as set out in the Company's announcement of 2 December 2025.
Following engagement with Saba Capital, it became clear that Saba was not
willing to support the merger proposal. Given Saba's dominant shareholding,
its position alone meant the proposal could not achieve the support required
to proceed. Accordingly, the Board determined that the merger should be put on
hold.
The Board continues to work with Saba to seek a holistic and sustainable way
forward that balances the interests of all shareholders. This approach is
consistent with the Board's
long-standing commitment to constructive engagement, as reaffirmed in its
public response
to Saba's open letter dated 3 December 2025.
Review of Investment Performance During the year, the Board concluded the follow‑up work arising from the
comprehensive Review of Investment Performance initiated in 2024, which led to
the adoption of a
clear 'Path for Growth' strategy. After careful evaluation of performance,
team structure, investment process and the Company's distinctive mandate, the
Board resolved that retaining Baillie Gifford as Manager remained in the best
long‑term interests of shareholders. The strategy focused on rebalancing the
portfolio to improve focus and resilience, reducing
the number of holdings to allow for greater scrutiny, and, following
shareholder approval in December 2024, updating the investment policy to widen
the opportunity set by increasing the market capitalisation limit at the point
of initial investment and narrowing the target portfolio size to 60-100
companies.
Board Composition As part of its ongoing succession‑planning process, and following an
external search conducted by Cornforth Consulting Limited, the Board appointed
Mr Greg Eckersley as a Non‑Executive Director with effect from 15 February
2025.
Mr Eckersley brings significant international investment and leadership
experience, including senior roles at AllianceBernstein and as global head of
internal equities at the Abu Dhabi Investment Authority. His appointment
strengthens the Board's breadth of investment expertise and enhances its
ability to scrutinise the implementation of the Company's long‑term
investment strategy. The Board believes his skills and experience will add
considerable value to its deliberations.
Shareholder Engagement The year saw a marked increase in shareholder engagement as a result of the
requisitioned general meeting ('RGM'), ongoing discussions around capital
allocation, and broader interest in the Company's strategic direction. The
Board met with a wide range of shareholders, including Saba Capital, to
understand their priorities and concerns, while the Company's website and
electronic communications were used to keep shareholders informed on
performance, portfolio activity, and corporate announcements. The feedback
received helped inform several of the major decisions outlined in this
statement.
Shareholder meetings - including both the RGM and AGM - provided important
opportunities for constructive dialogue. The Board also continued to expand
its communication channels, including enhancing its digital engagement and
launching a refreshed Company website in November 2025, designed to improve
accessibility, transparency and understanding of the Company's long‑term
mandate.
The Board remains committed to maintaining open, regular and constructive
engagement with shareholders and considers this central to its stewardship
responsibilities.
The Board's methods for assessing the Company's progress in the context of its
stakeholders' interests are set out below.
Stakeholder Why we engage How we engage and what we do
Shareholders Shareholders are, collectively, the Company's owners: providing them with a The Board places great importance on communication with shareholders. The
return for their investment in accordance with the Company's investment policy Annual General Meeting provides the key forum for the Board and Managers to
and objective is the reason for its existence. present to shareholders on the Company's performance, future plans and
prospects. It also allows shareholders the opportunity to meet with the Board
and Managers and raise questions and concerns. The Chair is available to meet
with shareholders as appropriate. The Managers meet regularly with
shareholders and their representatives, reporting their views back to the
Board. During the year, the Board also sought to engage with Saba Capital to
listen to their concerns and explore whether a meaningful dialogue could lead
to a constructive solution. Directors also attend certain shareholder
presentations, in order to gauge shareholder sentiment first hand.
Shareholders may also communicate with members of the Board at any time by
writing to them at the Company's registered office or to the Company's broker.
These communication opportunities help inform the Board when considering how
best to promote the success of the Company for the benefit of all shareholders
over the long term.
Stakeholder Why we engage How we engage and what we do
Baillie Gifford - Managers and Secretaries The Company's Board has delegated the management of the Company's portfolio, The Board seeks to engage with its Managers and Secretaries, and other service
and the administration of the Company's operations including fulfilment of providers, in a collaborative and collegiate manner, encouraging open and
regulatory and taxation reporting requirements, to Baillie Gifford. Baillie constructive discussion and debate, while also ensuring that appropriate and
Gifford is therefore responsible for the substantial activities of the Company regular challenge is brought and evaluation conducted. This approach aims to
and has the most immediate influence on its conduct towards the other enhance service levels and strengthen relationships with the Company's
stakeholders, subject to the oversight and strategic direction provided by the providers, with a view to ensuring the interests of the Company's shareholders
Board. are best served by keeping cost levels proportionate and competitive, and by
maintaining the highest standards of business conduct.
Portfolio companies As all of the Company's operations are conducted by third party professional The Board is cognisant of the need to consider the impact of the Company's
providers, it is the companies held in its investment portfolio which have the investment strategy and policy on wider society and the environment. The Board
primary real‑world impact in terms of social and environmental change, both considers that its oversight
positively
of environmental, social and governance ('ESG') matters is an important part
and negatively, as well as generating, through their commercial success, the of its responsibility to all stakeholders. The Board's review of the Managers
investment growth sought by the Company's shareholders. The investee companies includes an assessment of their ESG approach and its application in making
have an interest in understanding their shareholders' investment rationale in investment
order to assure themselves that long‑term business strategies will be
supported. decisions. The Board regularly reviews Governance Engagement reports, which
document the Managers' interactions with investee companies on ESG matters
(see pages 35 to 38).
Brokers The Company's brokers provide an interface between the Company's Board and its The Company's brokers regularly attend Board meetings, and provide reports to
institutional shareholders. those meetings, in order to keep the Board apprised of shareholder and wider
market sentiment regarding the Company. They also arrange forums for
shareholders to meet the Chair, or other Directors, outwith the normal general
meeting cycle.
Registrars The Company's registrars provide an interface with those shareholders who hold The Company Secretaries liaise with the registrars to ensure the frequency and
the Company's shares directly. accuracy of communications to shareholders is appropriate, and monitor
shareholder correspondence to ensure that the level of service provided by the
registrars is acceptable. The Managers' risk function reviews the registrars'
internal controls report and reports on the outcome of this review to the
Audit and Management Engagement Committee.
Auditor The Company's Auditor has a responsibility to provide an opinion on whether The Company's Auditor meets with the Audit and Management Engagement
the Company's financial statements as a whole are free from material Committee, in the absence of the Managers where deemed necessary, and the
misstatement, as set out in more detail in the Auditor's Report to the Members Managers and the Directors undertake to provide all information requested by
on pages 79 to 85. the Auditor in connection with the Company's annual audit promptly and to
ensure that it is complete and accurate in all respects.
Depositary and Custodian The Depositary and Custodian are responsible for the safekeeping of the The Depositary, the Board and Managers seek to engage with the Depositary and
Company's financial instruments, as set out in more detail on page 60. Custodian in a collaborative and collegiate manner, encouraging open and
constructive discussion and debate, while also ensuring that appropriate and
regular challenge is brought and evaluation conducted. This approach aims to
enhance service levels and strengthen relationships with the Company's
providers, with a view to ensuring the interests of the Company's shareholders
are best served by keeping cost levels proportionate and competitive, and by
maintaining the highest standards of business conduct.
Lenders Banks providing revolving credit facilities provide the Company's gearing and The Company's legal advisers review all legal agreements in connection with
have an interest in the Company's ongoing financial health and viability. the Company's debt arrangements and advise the Board on the appropriateness of
the terms and covenants therein. The Managers and Secretaries ensure that the
frequency and accuracy of reporting on, for example, covenant certification,
is appropriate and that correspondence from the lenders receives a prompt
response.
Stakeholder Why we engage How we engage and what we do
AIC/industry peers The Association of Investment Companies ('AIC') and the Company's investment The Company is a member of the AIC, and the Directors and/ or the Managers and
trust industry peers have an interest in the Company's conduct and Secretaries (as appropriate) participate in technical reviews, requests for
performance, as adverse market sentiment towards one investment trust can feedback on proposed legislation or regulatory developments, corporate
affect attitudes towards governance discussions and/or training.
the wider industry.
Investment platforms Investment platforms provide an interface with shareholders who invest in the The Managers liaise with the various investment platforms on strategies for
Company indirectly. improving communications with the Company's shareholders who hold their shares
via these platforms. An annual timetable of key dates is published on the
Company's website, for the ease of reference of such shareholders.
Wider society and the environment No entity, corporate or otherwise, can exist without having an influence on The Board and Managers' interactions with the various stakeholders as noted
the society in which it operates or utilising the planet's resources. Through above form the principal forms of direct engagement with wider society and in
its third‑party relationships, as noted above, the Company seeks to be a respect of the environment (commercial, financial, and in terms of planetary
positive influence and, in circumstances where that is not possible, to health and resources).
mitigate its negative
impacts insofar as is possible.
Responsibility statement of the Directors in respect of the Annual Financial Report
We confirm that, to the best of our knowledge:
· the Financial Statements, which have been prepared in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) including FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', give a true and fair view of the assets, liabilities, financial position and net return of the Company;
• the Annual Report and Financial Statements taken as a whole is fair, balanced and understandable and provide the information necessary for shareholders to assess the Company's performance, business model and strategy; and
• the Strategic report and Directors' report 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 it faces.
Signed on behalf of the Board
Jonathan Simpson-Dent
12 January 2026
Notes to the Financial Statements
1. Basis of accounting
The Financial Statements for the year to 31 October 2025 have been prepared in
accordance with FRS 102 'The Financial Reporting Standard applicable in the UK
and Republic of Ireland' and on the basis of the accounting policies set out
below which are unchanged from the prior year and have been applied
consistently.
The Financial Statements have been prepared in accordance with the Companies
Act 2006 and with the AIC's Statement of Recommended Practice 'Financial
Statements of Investment Trust Companies and Venture Capital Trusts' issued in
November 2014 and updated in July 2022 with consequential amendments, except
for certain financial information required by paragraph 82 regarding unquoted
holdings with a value greater than 5% of the portfolio or included in the top
10, where information is not publicly available (see note 8 below).
2. Income
2025 2024
£'000 £'000
Income from investments
UK dividends 84 358
Overseas dividends 829 280
Overseas interest 289 342
1,202 980
Other income
Deposit interest 246 321
Total income 1,448 1,301
Total income comprises:
Dividends from financial assets held at fair value through profit or loss 913 638
Interest from financial assets designated at fair value through profit or loss 289 342
Interest from financial assets not at fair value through profit or loss 246 321
1,448 1,301
3. Investment Manager
Baillie Gifford & Co Limited, a wholly owned subsidiary of Baillie Gifford
& Co, has been appointed as the Company's Alternative Investment Fund
Manager ('AIFM') and Company Secretaries. Baillie Gifford & Co Limited has
delegated portfolio management services to Baillie Gifford & Co. Dealing
activity and transaction reporting have been further sub-delegated to Baillie
Gifford Overseas Limited and Baillie Gifford Asia (Hong Kong) Limited. The
Management Agreement can be terminated on three moths' notice.
The annual management fee is 0.75% on the first £50 million of net assets,
0.65% on the next £200 million of net assets and 0.55% on the remaining net
assets. Management fees are calculated and payable quarterly.
4. Net return per ordinary share
2025 2025 2025 2024 2024 2024
Revenue Capital Total Revenue Capital Total
Net return after taxation (1.11p) 49.96p 48.85p (0.70p) 19.48p 18.78p
Revenue return per ordinary share is based on the net revenue loss after
taxation of £4,017,000 (2024 - net revenue loss of £2,665,000) and on
362,327,898 (2024 - 381,569,206) ordinary shares, being the weighted average
number of ordinary shares in issue (excluding treasury shares) during the
year.
Capital return per ordinary share is based on the net capital gain for the
financial year of £181,020,000 (2024 - net capital gain of £74,346,000) and
on 362,327,898 (2024 - 381,569,206) ordinary shares, being the weighted
average number of ordinary shares in issue (excluding treasury shares) during
the year.
There are no dilutive or potentially dilutive shares in issue.
5. Dividends
This year the net revenue return was a deficit of £4,017,000. There is no
requirement under section 1158 of the Corporation Tax Act 2010 to pay a
dividend as the net revenue return is below the level which would trigger the
requirement to pay a dividend hence the Board is recommending that no final
dividend be paid. Should the level of underlying income increase in future
years, the Board will seek to distribute the minimum permissible to maintain
investment trust status by way of a final dividend.
6. Fixed assets - investments
As at 31 October 2025 Level 1 Level 2 Level 3 Total
£'000 £'000 £'000 £'000
Listed equities 603,230 - - 603,230
Unlisted ordinary shares - - 10,285 10,285
Unlisted preference shares(*) - - 172,534 172,534
Unlisted convertible promissory note/convertible loan note - - 3,806 3,806
Total financial asset investments 603,230 - 186,625 789,855
As at 31 October 2024 Level 1 Level 2 Level 3 Total
£'000 £'000 £'000 £'000
Listed equities 520,954 - - 520,954
Unlisted ordinary shares - - 15,220 15,220
Suspended ordinary shares(†) - - 1,106 1,106
Unlisted preference shares(*) - - 163,863 163,863
Unlisted convertible promissory note/convertible loan note - - 3,889 3,889
Total financial asset investments 520,954 - 184,078 705,032
(*) The investments in preference shares are not classified as equity
holdings as they include liquidation preference rights that determine the
repayment (or multiple thereof) of the original investment in the event of a
liquidation event such as a take-over.
(†) New Horizon Health was delisted during the current financial year
and is now classified as an unlisted company.
Fair value hierarchy
The fair value hierarchy used to analyse the fair values of financial assets
is described below. The levels are determined by the lowest (that is the least
reliable or least independently observable) level of input that is significant
to the fair value measurement for the individual investment in its entirety as
follows:
Level 1 - using unadjusted quoted prices for identical instruments in an
active market;
Level 2 - using inputs, other than quoted prices included within Level 1, that
are directly or indirectly observable (based on market data); and
Level 3 - using inputs that are unobservable (for which market data is
unavailable).
The valuation techniques used by the Company are explained in the accounting
policies on page 92. A sensitivity analysis by valuation technique of the
unlisted securities is given on pages 105 to 108.
7. Borrowings
Borrowing facilities at 31 October 2025:
A five year £100 million multi-currency revolving credit facility with The
Royal Bank of Scotland International Limited with an expiry date of 9 June
2026.
A five year £36 million multi-currency revolving credit facility with The
Bank of New York Mellon with an expiry date of 30 October 2026.
At 31 October 2025 drawings were as follows:
• £100 million multi-currency facility with The Royal Bank
of Scotland International Limited: €5,969,393 at an interest rate of 3.47%
per annum; US$43,261,318 at an interest rate of 5.67% per annum; and
£39,919,370 at an interest rate of 5.42% per annum. The next
rollover/maturity date is 12 February 2026.
At 31 October 2024 drawings were as follows:
• £100 million multi-currency facility with The Royal Bank
of Scotland International Limited: €9,864,299 at an interest rate of 5.02%
per annum; US$71,166,114 at an interest rate of 6.35% per annum; and
£28,060,150 at an interest rate of 6.40% per annum.
During the year the Company repaid £14m of the £100 million multi-currency
revolving credit facility.
The main covenants relating to both loan facilities with The Royal Bank of
Scotland International Limited and The Bank of New York Mellon Limited are:
total borrowings shall not exceed 35% of the Company's adjusted gross assets
and the minimum adjusted gross assets shall be £260 million. There were no
breaches in the loan covenants during the year to 31 October 2025 (31 October
2024 - none).
8. Share capital
2025 2025 2024 2024
Number £'000 Number £'000
Allotted, called up and fully paid ordinary shares of 1p each 347,984,292 3,725 372,426,908 3,725
Treasury shares of 1p each 57,769,403 333 33,326,787 333
405,753,695 4,058 405,753,695 4,058
In the year to 31 October 2025 no shares were issued from treasury
(in the year to 31 October 2024 - no shares were issued from treasury) and
no shares were issued over the period from 31 October 2025 to 8 January 2026.
The Company also has authority to buy back shares. In the year to 31 October
2025, 24,442,616 shares with a nominal value of £244,000 were bought back at
a total cost of £42,649,000 and held in treasury (2024 - 14,667,733 shares
with a nominal value of £147,000 were bought back at a total cost of
£21,815,000 and held in treasury). At 31 October 2025 the Company had
authority to buy back a further 33,178,738 ordinary shares.
Over the period from 31 October 2025 to 8 January 2026 the Company has bought
back a further 1,340,000 shares at a total cost of £2,721,000.
9. Analysis of change in net debt
The net asset value per ordinary share and the net asset value attributable to
the ordinary shareholders at the year end calculated in accordance with the
Articles of Association were as follows:
At 1 October Cash flows Exchange At 31 October
2024 £'000 movement 2025
£'000 £'000 £'00
Cash and cash equivalents 22,783 34,753 1,790 59,326
Loans due within one year (91,744) 13,999 (346) (78,091)
(68,961) 48,752 1,444 (18,765)
10. Financial information
The financial information set out above does not constitute the Company's
statutory accounts for the year ended 31 October 2025 or the year ended 31
October 2024 but is derived from those accounts. Statutory accounts for the
period to 31 October 2024 have been delivered to the Registrar of Companies,
and those for the year to 31 October 2025 will be delivered in due course. The
auditor has reported on those accounts; the reports were (i) unqualified, (ii)
included a reference to a matter to which the auditor drew attention by way of
emphasis without qualifying their report and (iii) did not contain a statement
under section 498 (2) or (3) of the Companies Act 2006.
The Annual Report and Financial Statements is published on the Company website
edinburghworldwide.co.uk.(‡) The audited Annual Report and Financial
Statements will be posted to shareholders and delivered to the Registrar of
Companies in due course. A copy of the annual financial report will
be submitted shortly to the National Storage Mechanism ('NSM') and will be
available for inspection at the NSM, which is situated
at https://data.fca.org.uk/#/nsm/nationalstoragemechanism
(https://data.fca.org.uk/#/nsm/nationalstoragemechanism) .
(‡) Neither the contents of the Company website nor the contents of any
website accessible from hyperlinks on the Company website (or any other
website) is incorporated into, or forms part of, this announcement.
Glossary of terms and Alternative Performance Measures ('APM')
An alternative performance measure is a financial measure of historical or
future financial performance, financial position, or cash flows, other than a
financial measure defined or specified in the applicable financial reporting
framework.
Total assets
This is the Company's definition of Adjusted Total Assets, being the total
value of all assets held less all liabilities (other than liabilities in the
form of borrowings).
Net Asset Value ('NAV')
Also described as shareholders' funds, net asset value is the value of total
assets less liabilities (including borrowings). Net asset value can be
calculated on the basis of borrowings stated at book value and fair value. An
explanation of each basis is provided below. The net asset value per share is
calculated by dividing this amount by the number of ordinary shares in issue
excluding any shares held in treasury.
Net Asset Value (borrowings at book value)
Borrowings are valued at their nominal book value. The value of the borrowings
at book and fair value are set out on page 108 of the Annual Report and
Financial Statements.
Net Asset Value (borrowings at fair value) (APM)
Borrowings are valued at an estimate of their market worth. The value of the
borrowings at book and fair value are set out on page 108 of the Annual Report
and Financial Statements.
Net Asset Value (reconciliation of NAV at book value to NAV at fair value)
2025 2024
£'000 £'000
Net asset value per ordinary share (borrowings at book value) 220.97p 170.40p
Shareholders' funds (borrowings at book value) £768,957 £634,603
Add: book value of borrowings £78,091 £91,744
Less: fair value of borrowings (£78,091) (£91,744)
Shareholders' funds (borrowings at fair value) £768,957 £634,603
Number of shares in issue 347,984,292 372,426,908
Net asset value per ordinary share (borrowings at fair value) 220.97p 170.40p
At 31 October 2025 and 31 October 2024 all borrowings are in the form of short
term floating rate borrowings and their fair value is considered equal to
their book value, hence there is no difference in the net asset value at book
value and fair value.
Net liquid assets
Net liquid assets comprise current assets less current liabilities, excluding
borrowings.
Discount/premium (APM)
As stock markets and share prices vary, an investment trust's share price is
rarely the same as its net asset value. When the share price is lower than the
net asset value per share it is said to be trading at a discount. The size of
the discount is calculated by subtracting the share price from the net asset
value per share and is usually expressed as a percentage of the net asset
value per share. If the share price is higher than the net asset value per
share, this situation is called a premium.
2025 2024
Net asset value per ordinary share (a) 220.97p 170.40p
Share price (b) 205.00p 157.40p
Discount ((b) - (a)) ÷ (a) (7.2%) (7.6%)
Total return (APM)
The total return is the return to shareholders after reinvesting the net
dividend on the date that the share price goes ex-dividend.
Compound annual return (APM)
The compound annual return converts the return over a period of longer than
one year to a constant annual rate of return applied to the compound value at
the start of each year.
Leverage (APM)
For the purposes of the Alternative Investment Fund Managers ('AIFM')
Regulations, leverage is any method which increases the Company's exposure,
including the borrowing of cash and the use of derivatives. It is expressed as
a ratio between the Company's exposure and its net asset value and can be
calculated on a gross and a commitment method. Under the gross method,
exposure represents the sum of the Company's positions after the deduction of
sterling cash balances, without taking into account any hedging and netting
arrangements. Under the commitment method, exposure is calculated without the
deduction of sterling cash balances and after certain hedging and netting
positions are offset against each other. The leverage figures at 31 October
2025 are detailed on page 112 of the Annual Report and Financial Statements.
Active share (APM)
Active share, a measure of how actively a portfolio is managed, is the
percentage of the portfolio that differs from its comparative index. It is
calculated by deducting from 100 the percentage of the portfolio
that overlaps with the comparative index. An active share of 100 indicates no
overlap with the index and an active share of zero indicates a portfolio that
tracks the index.
Gearing (APM)
At its simplest, gearing is borrowing. Just like any other public company, an
investment trust can borrow money to invest in additional investments for its
portfolio. The effect of the borrowing on the shareholders' assets is called
'gearing'. If the Company's assets grow, the shareholders' assets grow
proportionately more because the debt remains the same. But if the value of
the Company's assets falls, the situation is reversed. Gearing can therefore
enhance performance in rising markets but can adversely impact performance in
falling markets.
Net gearing is the Company's borrowings less cash and cash equivalents
expressed as a percentage of shareholders' funds.
Gross Gearing is the Company's borrowings at book value less cash and cash
equivalents (including any outstanding trade settlements) expressed as a
percentage of shareholders' funds.
2025 2024
Net Gross Net Gross
gearing (*) gearing (†) gearing (*) gearing (†)
£'000 £'000 £'000 £'000
Borrowings (a) 78,091 78,091 91,744 91,744
Cash and cash equivalents (b) 59,326 - 22,783 -
Shareholders' funds (c) 768,957 768,957 634,603 634,603
Gearing 2.4% 10.2% 10.9% 14.5%
(*) Net gearing: ((a) - (b)) divided by (c), expressed as a percentage.
(†) Gross gearing: (a) divided by (c), expressed as a percentage.
Ongoing charges (APM)
The total expenses (excluding dealing and borrowing costs) incurred by the
Company as a percentage of the daily average net asset value (with borrowings
at market value), as detailed below.
2025 2024
£'000 £'000
Investment management fee £4,203 £3,317
Other administrative expenses £3,289 £1,520
Less: Non-recurring expenses(*) (£1,673) -
Total expenses (a) £5,819 £4,837
Average daily cum-income net asset value (with debt at fair value) (b) £687,833 £638,804
Ongoing charges (a) as a percentage of (b) 0.85% 0.76%
(*) Comprises the total costs incurred in connection with the
Requisitioned General Meeting held on 14 February 2025, together with legal
costs incurred in connection with the cancellation of the share premium
account.
Share split
A share split (or stock split) is the process by which a company divides its
existing shares into multiple shares. Although the number of shares
outstanding increases, the total value of the shares remains the same with
respect to the pre-split value.
Unlisted (private) company
An unlisted company means a company whose shares are not available to the
general public for trading and not listed on a stock exchange.
Third party data provider disclaimer
No third party data provider ('Provider') makes any warranty, express or
implied, as to the accuracy, completeness or timeliness of the data contained
herewith nor as to the results to be obtained by recipients of the data. No
Provider shall in any way be liable to any recipient of the data for any
inaccuracies, errors or omissions in the index data included in this document,
regardless of cause, or for any damages (whether direct or indirect) resulting
therefrom.
No Provider has any obligation to update, modify or amend the data or to
otherwise notify a recipient thereof in the event that any matter stated
herein changes or subsequently becomes inaccurate.
Without limiting the foregoing, no Provider shall have any liability
whatsoever to you, whether in contract (including under an indemnity), in tort
(including negligence), under a warranty, under statute or otherwise, in
respect of any loss or damage suffered by you as a result of or in connection
with any opinions, recommendations, forecasts, judgements, or any other
conclusions, or any course of action determined, by you or any third party,
whether or not based on the content, information or materials contained
herein.
S&P Index data
The S&P Global Small Cap Index ('Index') is a product of S&P Dow Jones
Indices LLC, a division of S&P Global, or its affiliates ('SPDJI').
Standard & Poor's® and S&P® are registered trademarks of Standard
& Poor's Financial Services LLC, a division of S&P Global ('S&P');
Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC
('Dow Jones'). Neither S&P Dow Jones Indices LLC, Dow Jones Trademark
Holdings LLC, their affiliates nor their third party licensors make any
representation or warranty, express or implied, as to the ability of any index
to accurately represent the asset class or market sector that it purports to
represent and neither S&P Dow Jones Indices LLC, Dow Jones Trademark
Holdings LLC, their affiliates nor their third party licensors shall have any
liability for any errors, omissions, or interruptions of any index or the data
included therein.
MSCI Index data
Source: MSCI. The MSCI information may only be used for your internal use, may
not be reproduced or redisseminated in any form and may not be used as a basis
for or a component of any financial instruments or products or indices. None
of the MSCI information is intended to constitute investment advice or a
recommendation to make (or refrain from making) any kind of investment
decision and may not be relied on as such. Historical data and analysis should
not be taken as an indication or guarantee of any future performance analysis,
forecast or prediction. The MSCI information is provided on an 'as is' basis
and the user of this information assumes the entire risk of any use made of
this information. MSCI, each of its affiliates and each other person involved
in or related to compiling, computing or creating any MSCI information
(collectively, the 'MSCI Parties') expressly disclaims all warranties
(including, without limitation, any warranties of originality, accuracy,
completeness, timeliness, non-infringement, merchantability and fitness for a
particular purpose) with respect to this information. Without limiting any of
the foregoing, in no event shall any MSCI Party have any liability for any
direct, indirect, special, incidental, punitive, consequential (including,
without limitation, lost profits) or any other damages (msci.com).
FTSE Index data
London Stock Exchange Group plc and its group undertakings (collectively, the
'LSE Group'). © LSE Group 2025. FTSE Russell is a trading name of certain
of the LSE Group companies. 'FTSE®' 'Russell®', 'FTSE Russell®', is/are a
trade mark(s) of the relevant LSE Group companies and is/are used by any other
LSE Group company under license. All rights in the FTSE Russell indexes or
data vest in the relevant LSE Group company which owns the index or the data.
Neither LSE Group nor its licensors accept any liability for any errors or
omissions in the indexes or data and no party may rely on any indexes or data
contained in this communication. No further distribution of data from the LSE
Group is permitted without the relevant LSE Group company's express written
consent. The LSE Group does not promote, sponsor or endorse the content of
this communication.
Sustainable Finance Disclosure Regulation ('SFDR')
The EU Sustainable Finance Disclosure Regulation ('SFDR') does not have a
direct impact in the UK due to Brexit, however, it applies to third-country
products marketed in the EU. As Edinburgh Worldwide is marketed in the EU by
the AIFM, Baillie Gifford & Co Limited, via the National Private
Placement Regime ('NPPR') the following disclosures have been provided to
comply with the high-level requirements of SFDR.
The AIFM has adopted Baillie Gifford & Co's ESG Principles and Guidelines
as its policy on integration of sustainability risks in investment decisions.
Baillie Gifford & Co believes that a company cannot be financially
sustainable in the long run if its approach to business is fundamentally out
of line with changing societal expectations. It defines 'sustainability' as a
deliberately broad concept which encapsulates a company's purpose, values,
business model, culture, and operating practices.
Baillie Gifford & Co's approach to investment is based on identifying and
holding high quality growth businesses that enjoy sustainable competitive
advantages in their marketplace. To do this it looks beyond current financial
performance, undertaking proprietary research to build up an in-depth
knowledge of an individual company and a view on its long-term prospects. This
includes the consideration of sustainability factors (environmental, social
and/or governance matters) which it believes will positively or negatively
influence the financial returns of an investment. The likely impact on the
return of the portfolio from a potential or actual material decline in the
value of investment due to the occurrence of an environmental, social or
governance event or condition will vary and will depend on several factors
including but not limited to the type, extent, complexity and duration of an
event or condition, prevailing market conditions and existence of any
mitigating factors.
Whilst consideration is given to sustainability matters, there are no
restrictions on the investment universe of the Company, unless otherwise
stated within in its Investment Objective & Policy. Baillie Gifford &
Co can invest in any companies it believes could create beneficial long-term
returns for investors. However, this might result in investments being made in
companies that ultimately cause a negative outcome for the environment or
society.
More detail on the Investment Manager's approach to sustainability can be
found in the ESG Principles and Guidelines document, available publicly on the
Baillie Gifford website bailliegifford.com
(https://www.bailliegifford.com/en/uk/individual-investors/) and by scanning
the QR code below.
The underlying investments do not take into account the EU criteria for
environmentally sustainable economic activities established under the EU
Taxonomy Regulation.
Baillie Gifford & Co believes that a company cannot be financially
sustainable in the long run if its approach to business is fundamentally out
of line with changing societal expectations. It defines 'sustainability' as a
deliberately broad concept which encapsulates a company's purpose, values,
business model, culture, and operating practices.
Baillie Gifford & Co's approach to investment is based on identifying and
holding high quality growth businesses that enjoy sustainable competitive
advantages in their marketplace. To do this it looks beyond current financial
performance, undertaking proprietary research to build up an in-depth
knowledge of an individual company and a view on its long-term prospects. This
includes the consideration of sustainability factors (environmental, social
and/or governance matters) which it believes will positively or negatively
influence the financial returns of an investment. The likely impact on the
return of the portfolio from a potential or actual material decline in the
value of investment due to the occurrence of an environmental, social or
governance event or condition will vary and will depend on several factors
including but not limited to the type, extent, complexity and duration of an
event or condition, prevailing market conditions and existence of any
mitigating factors.
Whilst consideration is given to sustainability matters, there are no
restrictions on the investment universe of the Company, unless otherwise
stated within in its Investment Objective & Policy. Baillie Gifford &
Co can invest in any companies it believes could create beneficial long-term
returns for investors. However, this might result in investments being made in
companies that ultimately cause a negative outcome for the environment or
society.
More detail on the Investment Manager's approach to sustainability can be
found in the ESG Principles and Guidelines document, available publicly on the
Baillie Gifford website bailliegifford.com
(https://www.bailliegifford.com/en/uk/individual-investors/funds/edinburgh-worldwide-investment-trust/)
and by scanning the QR code below.
The underlying investments do not take into account the EU criteria for
environmentally sustainable economic activities established under the EU
Taxonomy Regulation.
Regulated Information Classification: Additional regulated information
required to be disclosed under applicable law. - ends -
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